Before processing depreciation in Business Central, review your depreciation book configuration and confirm integration is enabled for:

• Acquisitions
• Depreciation
• Write-downs
• Appreciation
• Disposals

With these integrations enabled, transactions will post to both fixed assets and the general ledger (GL) through a single journal entry.

Calculate Depreciation

To process monthly depreciation:

1. Open Calculate Depreciation.
2. Select the appropriate depreciation book.
3. Enter the depreciation and posting dates.
4. Add a document number and description.
5. Enable Insert Balance Account.
6. Run the depreciation process.

The system creates depreciation journal lines that can be reviewed before posting.

Post the Depreciation Journal

After reviewing the journal, post the transaction. Posting automatically creates:

• A fixed asset journal entry
• A general ledger journal entry

This updates depreciation expense and accumulated depreciation while keeping both modules synchronized.

Reconcile Fixed Assets to the General Ledger

After posting depreciation, run the Fixed Asset Book Value 1 report. Use:

• The appropriate depreciation book
• The correct reporting period
• Subclass Code grouping

Compare acquisition costs, accumulated depreciation, and ending balances from the report to the corresponding accounts in the Chart of Accounts.

Investigate variances

If balances do not match:

• Review transactions posted directly to the GL.
• Verify all asset acquisitions were entered correctly.
• Check for missing asset entries.
• Run detailed reports to identify discrepancies.

Regular reconciliation helps maintain accurate financial reporting and ensures the Fixed Asset module remains aligned with the general ledger.

Key takeaways

• Verify depreciation book integrations before running depreciation.
• Use the Calculate Depreciation process to generate monthly depreciation entries.
• Posting creates entries in both fixed assets and the general ledger.
• Use the Fixed Asset Book Value 1 report as your primary reconciliation tool.
• Reconcile fixed asset balances to the GL each month to identify and resolve discrepancies early.