Straight Line Service Life VS Straight Line Life Remaining

Dynamics 365 Finance

Two different depreciation profiles are demonstrated in the article: Straight line service life and straight line life remaining.
The process of setting up depreciation profiles can be found under Fixed Assets > Setup > Depreciation Profiles.
The article instructs to create two fixed assets using the mentioned depreciation profiles under Fixed Assets > Fixed Assets > Fixed Assets.
After creating the fixed assets, the next steps include acquiring both assets, running a depreciation proposal for August 2024, and checking the depreciation calculation.
An upwards acquisition adjustment of 200 is posted for each asset on 05th September 2024, followed by running depreciation for September 2024 and verifying the results.
The calculations for depreciation under both profiles are detailed in the article, showcasing the differences in depreciation amounts.
An observation is made regarding the net book value of assets at the end of their useful life under each depreciation method.
The article concludes by highlighting the impact of adjustments on the net book value of assets and the automatic calculation of depreciation based on remaining useful life.

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