In AX 2012 R3

• For the computation of Depreciation in AX 2012, R3 provides two books. Both have their importance and client use this book as per need.

1. Valuation model
2. Depreciation book

• Value Model Depreciation should always be initiated through the Fixed Assets Journal. (Fixed assets | Journals | Fixed assets).
• Depreciation Book (Tax Book) Depreciation should always be initiated through the Depreciation Book Journal. (Fixed Assets | Journals | Depreciation book journal).

In AX D365 Finance and operation

• However, in AX D 365 Finance and operation the value model functionality and depreciation book functionality have been merged into a single concept that is known as a “book”.

• Here we assume that client has already configured “book” For asset and already has an asset in AX, so we directly focus on the depreciation part.
• As previously mentioned we concentrate on “book” so, we directly go to fixed assets journal.
• Go to Journal entries > fixed assets journal.

• Create a fixed asset journal by a new button with following journal type.

• Journal type should be “Post Fixed assets”.

• Then go to lines of that journal and click on proposals and select depreciation proposals.

• Afterward, select parameters to run depreciation like Book or fixed assets number.
• The date given on parameter is very relevant for running depreciation as the system calculates Depreciation till that date from the acquisition date or start of the financial year.

• Below is the screenshot of my depreciation proposal result as per the parameter I have selected in the above screenshot. Then, if you are satisfied with result you can post the journal.

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Pranav Patil

I am a Functional Consultant (Chartered Accountant) at Dev Information Technology Ltd. I have 2 years of experience in Microsoft Dynamics AX/Dynamics 365 (ERP) and have worked on projects in private sector.

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