https://learn.microsoft.com/en-us/dynamics365/finance/fixed-assets/bonus-depreciation

A company benefits from tax special depreciation.

Beginning 2023, the rate was 100% provided by the Tax authorities and was configured the same in D365. Some fixed assets have been acquired and have 100% bonus depreciation setup.

Later in the year 2023, this rate changed to 80%. In Dec 2023, the company updated to the new rate (80%) in D365 with priority 1.

We observed that only fixed assets acquired in December (after the ‘new’ setup of 80%) got the special depreciation of 80%, while fixed assets acquired before December still being applied with 100% special depreciation.

Discussion with MS engineer:

• The change of Special Depreciation percentage that the Company had to implement caused an impact on approximately 100 Fixed Assets that were already set up with a different percentage and had their Acquisition posted before the new percentage was implemented.
• This was resolved by users manually correcting the Special Depreciation proposal for these Fixed Assets.
• For new Fixed Assets, a new Special Depreciation Allowance has been created and is being assigned to them, resulting in the expected amounts on Special Depreciation proposals.
• As an alternative, we have considered the idea of adding the new Special Depreciation Allowance to the old Fixed Assets, however this would still require manual work from end-users since it would result in 2 Special Depreciation proposals for each FA with this setup and users would have to remove the additional proposal.
• MS confirm that this is the current application behavior and there is no current action item in place to have it changed.

We believe that a change in the current application design would be useful. that the special depreciation allowance (bonus depreciation) setting (percentage or amount) should be updated automatically on the related fixed asset.