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In AX 2012 R3

• For the computation of Depreciation in AX 2012, R3 provides two books. Both have their importance and clients use this book as needed.

1. Valuation model
2. Depreciation book

• Value Model Depreciation should always be initiated through the Fixed Assets Journal. (Fixed assets | Journals | Fixed assets).
• Depreciation Book (Tax Book) Depreciation should always be initiated through the Depreciation Book Journal. (Fixed Assets | Journals | Depreciation book journal).

In AX D365 Finance and Operation

• However, in AX D 365 Finance and Operation the value model functionality and depreciation book functionality has been merged into a single concept that is known as a “book”.

• Here we assume that the client has already configured the “book” For the asset and already has an asset in AX, so we directly focus on the depreciation part.
• As previously mentioned we concentrate on “book” so, we directly go to the fixed assets journal.
• Go to Journal entries > fixed assets journal.

• Create a fixed asset journal with a new button with the following journal type.

• The journal type should be “Post Fixed assets”.

• Then go to the lines of that journal click on proposals and select depreciation proposals.

• Afterward, select parameters to run depreciation like Book or fixed assets number.
• The date given on the parameter is very relevant for running depreciation as the system calculates Depreciation till that date from the acquisition date or start of the financial year.

• Below is the screenshot of my depreciation proposal result as per the parameter I have selected in the above screenshot. Then, if you are satisfied with the result you can post the journal.