If you are using a 4-4-5 or any other non-Georgian calendar and trying to record, track and house fixed assets in D365. You may have run into a few problems, one being that D365 does not automatically link the fiscal calendar to the depreciation schedule. That is done in the setup stage while creating the fixed asset books (CORP, FED, and STATE).
Navigate to Fixed Assets > Setup > Depreciation profiles
Create a new depreciation profile. This will allow for the customization of the depreciation year and period frequency.
It is important to select "Straight line life remaining" as the method. This will make sure acquisition and depreciation adjustments recalculate the depreciation schedule. If "Straight line service life" is used, the system will extend the life of the asset, as opposed to adjusting.
Next, go to Fixed Assets > Setup > Books
Associate your fiscal calendars and newly created depreciation profile with each book.
Now for the configuration under each fixed asset group. Fixed Assets > Setup > Fixed asset groups > Books
Here is where you can further assign different depreciation styles and rules to each group. Select a group, and click "Books" in the action pane.
Add the depreciation profile that was created in the steps above to the group.
Select "Full Month" as the depreciation convention. This is due to the system's inability to calculate depreciation by the number of days in a period. For instance, when utilizing a 4-4-5 calendar, every 3rd period should carry more depreciation than the previous two. However, that is not the case, the best way to capture the full period is to use "Full Month".
Setup may vary by fixed asset, fixed asset group, book type (GAAP v TAX), and fiscal year.
Please feel free to test and validate this solution. More posts regarding fixed assets in D365 will be coming soon, please create an account to never miss a helpful post!
Let me know if you have any questions!
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