Change the depreciation method during the asset life for one asset

This article explains how to change the depreciation method during the asset life for one asset in Japan with Microsoft Dynamics 365 Finance.

In Japan, the depreciation method is permitted to change during the service life of a fixed asset.

The following procedures walk you through how to change the depreciation profile for a fixed asset. The procedures were created using the demo data company JPMF.

Before you complete the following procedures, you must select the Fixed Asset configuration key and configure Undepreciated balance schedule or Years passed schedule.

Change the depreciation profile for a fixed asset

To change the depreciation profile for a fixed asset, follow these steps.

1. In Dynamics 365 Finance, go to Fixed assets > Fixed assets > Fixed assets.
2. Use the Quick Filter to find records. For example, filter on the Fixed asset number field with a value of "STRUM-000001".
3. Select Books.
4. Select Functions.
5. Select Change depreciation profile.
6. Select New.
7. In the Start date field, enter the start date of a fiscal year, in the current fiscal calendar.
8. In the Depreciation profile field, enter a value.
9. Select Update service life. Confirm that Service life and Depreciation periods remaining are updated.

View the undepreciated balance schedule for fixed assets

To view the undepreciated balance schedule for fixed assets, go to Fixed assets > Setup > Depreciation rate schedules > Undepreciated balance schedules.

• The corresponding data must exist for the depreciation profile update.
• The From method, To method, Service life, and Years passed values determine which record to apply to the asset change.