Leasehold Improvements Fixed Asset Depreciation

Hi experts,

I have a client who has setup Lease Improvements as a fixed asset. She initially had a Depr. Starting Date of 01/11/10 and ending date of 31/10/11 which was only 1 year.(lease agreement). They have now renewed the lease for another year and she has added other acquisition costs to the same asset and all these costs have a date after the Depr. Ending Date and this has increased the asset’s book value.

The issue now is she wants to calculate depreciation for these added invoices for another year. How can she do that? Must she go and change the Depreciation Ending Date or there is another way to do this?

N.B. Client is on Dynamics Nav 5.0

Hope someone will be able to assist.

Hi Lilian,

just tried it out of curiosity… you can simply increase the “No. of depreciation years” field in the FA card. With that new depreciations will be calculated. There are some catches, however. It may be possible that there is a “depreciation gap” due to posting acqisition costs after the end of depreciation. To avoid this, use a fixed number of depreciation days during depreciation calculation, or post the depreciation manually. Other issues may arise if you have a salvage value set. The best to do in this case is to cancel the acquisition cost posting (only for FA), extend the depreciation years and post the acquisition costs again, with depreciation until FA date.

with best regrads


Thanks Jens. My client was reluctant to cancel acquisition costs so she just increased the “No. of Depreciation” and it worked for her as she always uses 30 as her number of depreciation days.