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Former Member

Depreciation of negative asset


could you please advise how to stop the depreciation in zero? I donť want to depreciate the asset in positive values. See below attachment.


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2 Answers

  • Posted on May 23, 2013 at 01:25 PM

    Hi You can control define depreciation area level.

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    • Former Member Sanyasappadu Balaga

      Hi, this is ok. The depreciation is already running positive. But the problem is that the depreciation don't stop at zero,but is still running to positive values. E.g. I have an asset with the value -10000 eur, the depreciation is 1000 eur per month. So it should stop in the month 10, when the values is zero, but it continues to value +1000 eur.

  • author's profile photo Former Member
    Former Member
    Posted on May 26, 2013 at 03:42 PM

    Hello Jakub

    You can achieve it by a change in base method that is currently used in the depreciation key. Base method contains a parameter " Depreciation below zero" . Proceed to change this parameter as below:

    Depreciation below Zero = No

    The above parameter force the system to stop automatic depreciation when net book value reaches zero.

    The above change may be implemented as below:

    a) Create a new base method as similar to existing base method with one exception. Set parameter Depreciation below Zero = No

    b) Create new depreciation key as a copy from existing depreciation key. Assign new based method to new depreciation key

    c) Assign new depreciation key to effected assets

    d) Ensure previous year for fixed assets had already closed

    e) Execute AFAR for effected assets

    Hope above procedure will help you surely to stop depreciation when an asset's netbook value reaches zero.



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