In this blog, I will write about shift depreciation calculation and setup in D365 F&O. Shift depreciation is calculated majorly in manufacturing units where machineries/ equipment’s used in production based on number of shifts. So, we need to calculate depreciation for extra shifts as well so that we can calculate correct machine cost for the final production cost.

Normal standard for calculating shift depreciation is:

Single Shift: Normal 100 % depreciation, how we usually calculate

Double Shift: 150 %

Triple Shift: 200 %

So, let us start with configuration:

Step-1: Define Depreciation Profile and Shift Depreciation Percentage

Navigate to, Fixed asset > Setup > Depreciation Profile

Here most important thing is to enable the shift depreciation

Step-2: Create Book and define Calendar

Navigate to, Fixed asset > Setup > Books

Define book and map the depreciation profile and other setup.

Here most important thing is , we should use “Day Based” calendar”

Step-3: Define Number of days

Navigate to, Fixed asset > Setup > parameters

Here we need to define number of working days based on seasonal and non-seasonal industry. This is important one because based on this only depreciation is calculated.

Here is how system will calculate:

Step-4: Map book with Asset group and define service life

Step-5: Acquire a fixed asset using journal or any other means

Step-6: Define Shift for the asset and view Depreciation Calculation

Navigate to, Fixed asset master > Select Asset > Click on Books > Click on Shift Depreciation and Define the shift

Click on Profile, View Calculation

That is it for this blog, hope this will be help full for you to define the shift depreciation for your customers.Thanks You !!! Keep reading and sharing with your network.