Change Depreciation rates and adjust prior years depreciations

I need to change the depreciation rate in years and post all the changes to date including previous years depreciations. As prior years accounts was closed, i would like to reverse and post the adjustment in current year. Is there anyway to run it in Navision and post adjustments without any impact on prior year’s account?

Please tell me why you want to change the Depreciation %. Also tell me what Depreciation method are you Using?

You should rather ask for help to your implementing Partner than trying to do this yourself, because the task includes:

  1. cancelling current FY entries, if such exist - ALL of them, not only Depreciation
  2. creating a FA GL Journal with all FAs, having Posting date = begining of your FY, and the most difficult - the correction sum for depreciation. The latter can not be calculated by Navision standart means, so this will be the toughest task, maybe even manual.
  3. when that Journal is posted AND new % are set up in FA Cards, calculate current FY depreciation month by month or how frequently it is done in your company. As you proceed with depreciation period by period remember to put back all non-depreciation entries which might be deleted in first step.

And one more problem - HOW your CFO will explain the changes in FA Book values after all this to auditors? It is normal to revaluate FAs as their business value change, but such “global” rate change for many years backwards, which all hit the current FY Profit/Loss is suspicious… Why you just don’t change the rates for current year and keep on going with the new ones from now on?

Indian localization includes this feature named “Retrospective Effect of Depreciation” where you can calculate and post the change in depreciation value due to change in method of depreciation. You can take inspiration from there to customize your solution.