Hi, Readers.
Dynamics 365 Business Central 2026 wave 1 (BC28.1) is generally available. More details: Cumulative Update Summary for Microsoft Dynamics 365 Business Central (May, 2026)
I will continue to test and share some new features that I hope will be helpful. In this post, I would like to talk about Enable Investment Boost for fixed assets.
Enable Investment Boost for fixed assets:
Business value:
https://learn.microsoft.com/en-us/dynamics365/release-plan/2026wave1/smb/dynamics365-business-central/enable-investment-boost-fixed-assets?wt.mc_id=DX-MVP-5004336
Many jurisdictions are introducing front‑loaded incentives to stimulate capital investment. With Investment Boost enabled on eligible assets, companies can deduct 20 percent of the asset cost in the year of purchase and then depreciate the remaining 80 percent using existing tax methods. This improves first‑year cash flow, reduces manual calculations, and provides a consistent, auditable framework that partners can adapt to local tax regimes, starting with New Zealand and applicable to similar schemes elsewhere.
Business Central adds a configurable framework to support Investment Boost‑style incentives for fixed assets. Administrators can mark assets as Investment Boost Eligible and let Business Central apply a one‑time specific percent for deduction in the acquisition year, while standard depreciation continues on the remaining percent of the original cost.
Let’s see more details.
Select Search (Alt+Q) in the upper-right corner, enter Fixed Asset Setup, and then choose the related link.
Click Show more.
You will see two new settings: Bonus Depreciation Percentage and Bonus Depreciation Effective Date.
Bonus Depreciation Percentage
Specifies the percentage of bonus depreciation allowed for fixed assets.
Bonus Depreciation Effective Date
Specifies the date when bonus depreciation becomes effective for fixed assets.
For example,
As a test, I created a new Fixed Asset.
Then, I posted the acquisition cost with a unit price of 10,000. Depreciation has not been run yet.
Click Show more.
You can find the Use Bonus Depreciation setting to determine whether or not to enable it.
Use Bonus Depreciation
Specifies if the Bonus Depreciation is to be used for this depreciation book.
Let’s look at a simple test.
When Use Bonus Depreciation is not enabled:
1 fixed asset G/L journal lines were created.
The system will only generate a single depreciation entry, which is no different from before.
When Use Bonus Depreciation is enabled: Bonus Depreciation % is 60
2 fixed asset G/L journal lines were created.
You can see that the generated details are completely different from the previous ones.
PS: Please note that the posting date will affect the calculation of the depreciation amount.
The calculation logic is as follows
- In the fiscal year when the asset is first available for use, the calculation is based on this example:
- Compute Investment Boost Deduction = 20% × Original Cost.
- Compute Adjusted Depreciation Base = 80% × Original Cost.
- Post the boost deduction via a dedicated entry/type to maintain a clear audit trail.
- Subsequent depreciation is calculated on the adjusted base using the asset’s selected tax depreciation method and conventions.
- If an asset isn’t marked as eligible, standard depreciation applies with no boost.
- Validation ensures the Date Available for Use meets the effective‑date rule and prevents double‑application.
Let’s take a look at the results after posting. Choose Post -> Yes.
The journal lines were successfully posted.
Returning to the Fixed Asset Card, you can see that both the Book Value and the newly added Bonus Depreciation Applied Amount have been updated.
Clicking on the amount allows you to drill down into the FA Ledger Entries.
Book Value:
Bonus Depreciation Applied Amount:
Another example:
Finally, Microsoft has added many new fields to the FA Depreciation Books, including Use Bonus Depreciation and Bonus Depreciation %.
Great, give it a try!!!😁
END
Hope this will help.
Thanks for reading.
ZHU
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