Depreciation calculation in Navision 4.0 SP1

hant

Dear all,

Can you help to explain how the system calculate the FA depreciation? I am using Navision 4.0 SP1. I created one Fixed Asset and input the beginning balance for this:

Purchased date: 01/01/2006
Date start depreciation: 01/01/2006
No. of Depreciation Year: 05 (years)
Acquisition Cost: 1,000,000
Accumulated Depreciation cost @08/31/2006: 140,000 (this was input into the Navision as beginning balance and calculatd manually)

I run calculate depreciation batch job for september @09/30/2006 and the system calculated the depreciation value of 16,538. I don't know how this amount was calculated because as the FA be depreciated in 5 years (60months) then the amount of each month will be 16,667.

Does anyone have any idea about this?

Thanks,

hant

ssingla

Dear Hant,

If you FA have a date of Purchase/depr start date as 010106 then as on 31/08/06 the total depr should be 16666.67 * 8 = 133333. Because the accumulated depr has been feeded as 140000, the net value as on 01/09/2006 is 860000. The depr for the remaining 52 months will be 860000/52 i.e. 16538.46.

Miklos_Hollender

Be aware that Navision calculates with 360 days per year as a default. There is a bloody hidden field in Depreciation Book Card called no. of days in fiscal year and also a not hidden checkmark allow more than 360 days. It msut be set to 365 if yoy want that. If it's not set, it defaults to 360. BUT even in this case depreciation years are calculated with 360 days, look at codeunit 5611:

    DeprYears :=
       DepreciationCalc.DeprDays("Depreciation Starting Date","Depreciation Ending Date") / 360;

Francis_KONHAWA

Hello,
With a starting basis of 1,000,000 and an accumulated depreciation of 140,000 on 08/31/2006 you assume that your FA will be depreciated during 60-8 = 52 months considering a basis of 1,000,000 - 140,000 = 860,000. So the periodic depreciation will be 860,000/52 = 16,538.46.

There another way to get the system calculate the depreciation the way you want (with a monthly depreciation of 16,666.67. You can create the FA with no accumulated depreciation, disable the general ledger integration and run the depreciation batch with the 08/31/2006 date. You'll get the depreciations calculated well.

ssingla

but if the accumulated depr is 140000, that means the entries have been posted in the legacy system, which either needs to be reversed in the current system else go by the Nav calculation.

hant

Thank you all, I've got it.

mismis

Miklos Hollender wrote:

Be aware that Navision calculates with 360 days per year as a default. There is a bloody hidden field in Depreciation Book Card called no. of days in fiscal year and also a not hidden checkmark allow more than 360 days. It msut be set to 365 if yoy want that. If it's not set, it defaults to 360. BUT even in this case depreciation years are calculated with 360 days, look at codeunit 5611:

    DeprYears :=
       DepreciationCalc.DeprDays("Depreciation Starting Date","Depreciation Ending Date") / 360;

Hi Miklós,
SP2 is declared to manage the 365 day depr. year, the number of days field is already there on the Form. Did the code change accordingly or everything remained the same?
As you know clients in Hungary prefer the 365 day depr. but I am unable to present a good calculation.
Thanks.