Current D365 F&O system calculates depreciation on the net book value at the end of the year using the reducing balance method, whether the calculation is done on a monthly, daily, we are expecting the depreciation calculation monthly on the net book value at the end of each month, this means the depreciation has to be change every month based on each month end NBV value.

In the vehicle rental business, it is standard industry practice to use the reducing balance method for depreciation on a monthly basis. This method better matches the depreciation expense with the actual usage and revenue generation of the vehicles.