(IND) Calculation of shift depreciation [AX 2012]
Updated: December 6, 2012
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
You can calculate shift depreciation for a value model with a Current status selected in the Posting layer field and a straight line percentage method or reducing balance depreciation method selected in the Depreciation profile field in the Value models form, per the Companies Act, 1956.
Example
The calculation of the number of days that an asset is used for is described below.
An asset is used from December 21, 2012 to March 31, 2013. The days for each period in the fixed asset calendar are as follows:

December 21, 2011 to December 31, 2011 = 11 days

January 1, 2012 to January 31, 2012 = 31 days

February 1, 2012 to February 29, 2012 = 29 days

March 1, 2012 to March 31, 2012 = 31 days
The total number of days that the asset is used for is 102 days, which is 11 + 31 + 29 + 31.
Note 

Depreciation for nonworking days will be calculated as single shift.

Refer to the following table for different formulas that are used to calculate the shift depreciation.
Type of depreciation method  Type of industry  Number of working days for the industry  Formula 

Straightline percentage method  Seasonal  More than the number of days that are defined in the Min. working days for seasonal industries field. Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Cost of acquisition – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Total number of working days in a year 
Straightline percentage method  Seasonal  Less than the number of days that are defined in the Min. working days for seasonal industries field Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Cost of acquisition – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Minimum number of working days for seasonal industries (180 days) 
Straightline percentage method  Nonseasonal  More than the number of days that are defined in the Min. working days for nonseasonal industries field Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Cost of acquisition – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Total number of working days in a year 
Straightline percentage method  Nonseasonal  Less than the number of days that are defined in the Min. working days for nonseasonal industries field Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Cost of acquisition – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Minimum number of working days for nonseasonal industries (240 days) 
Reducingbalance method  Seasonal  More than the number of days that are defined in the Min. working days for seasonal industries field Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Writtendown value – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Total number of working days in a year 
Reducingbalance method  Seasonal  Less than the number of days that are defined in the Min. working days for seasonal industries field Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Writtendown value – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Minimum number of working days for seasonal industries (180 days) 
Reducingbalance method  Nonseasonal  More than the number of days that are defined in the Min. working days for nonseasonal industries field Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Writtendown value – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Total number of working days in a year 
Reducingbalance method  Nonseasonal  Less than the number of days that are defined in the Min. working days for nonseasonal industries Click Fixed assets > Common > Fixed assets > Fixed assets.  [(Writtendown value – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Minimum number of working days for nonseasonal industries (240 days) 
Straightline percentage or Reducingbalance method  Seasonal or Nonseasonal  Click Fixed assets > Setup > Value models. Select the Override fixed asset calendar days? check box and specify the number of days in the Asset working days field.  [(Cost of acquisition or Writtendown value – Scrap value) * Percentage that is defined for the type of shift] * Number of days that the asset is used for during the period ÷ Asset working days 
Full depreciation is calculated if the value of an asset is less than or equal to the value that is specified in the Max. acquisition value to avail full depreciation Click Fixed assets > Common > Fixed assets > Fixed assets. In this case, the days that are specified in the Min. working days for seasonal industries field or the Min. working days for nonseasonal industries field are not considered for calculation of depreciation.
Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).