Can anyone point me to some guidelines or whitepapers that reveal the exact formulas used by NAV for each type of Depreciation Method that is offered. We are off by several cents to several dollars on each asset, yet our other FA systems agree with each other to the penny. Thanks for your help.

Formulas used comply with accounting rules / theory…

Question is - which FY length is used for depreciation calculation in Navision and the “other compared systems”?

Depending on setup, Navision can use both 12m * 30days = 360 days per year and Calendar year. Check if you are comparing equal methods.

Thank-you, I understand the FY choices and that is not the problem. I am looking for the precise generic formula used by NAV for each of the defined Depreciation methods. Something comparable to: (Purchase Price minus Salvage Value) divided by … etc.

I need to know all of the small considerations and the precise fields that NAV has included in the calculation. Thanks for any assistance anyone can offer

I am afraid, but there is no simple formula for this in the NAV.

Depreciation base is being calculated based on FA Ledger Entries, filtered on fields “Part of Depreciable Basis” and “Part of Book Value”

You can set up whether “Part of Depreciable Basis” in the set up - Administration → Application → Financial Management → Depreciation Books → field “Part of Depreciable Basis” . Check mark in this field indicate whether Fa Ledger Entry of this type is being considered as a part of depreciable basis.

Different depreciation methods are being calculated based on different algorithms.

Examples - Straight line depreciation:

a) based on depreciation period

Depreciation Amount = ((Book value - Salvage Value) * Number of Depreciation Days) / Remaining Depreciation Days

b) based on fixed yearly percentage

Depreciation Amount = (Straight-Line % * Depreciable Basis * Number of Depr. Days) / (100 * 360)

c) based on fixed yearly amount

Depreciation Amount =(Fixed Depreciation Amount * Number of Depreciation Days) / 360

As I said, there is no generic formula for this calculation.

This is a much better answer for me and I realize that the formulae are not simple but can be quite complex. That is the level I am seeking because of our small differences that we cannot reconcile using conventional approaches. We would like to know all of the elements included in these caluculations so that we can resolve our differences. This answer is a big step towards what we are seeking. As I suggested early on, this may best be answered by a technical document or whitepaper from Microsoft. ANy insights along existing published documentation?