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Fixed assets with negative net book value in SAP Business ByDesign

Hi Team,

I hope you are well.

I am writing regards to some old fixed assets which have the Acquisition value as Zero. The issue is that they have negative amount of NBV. The reason why they are with negative amount of NBV is that fixed assets were acquired one year before their disposal (for example they were acquired in Oct'18 but were written off in Feb'19 and they have accumulated depreciation for 2 months (Oct'18 and Dec'18) which is not cleared). As far as I know we could change all assets with No automatic depreciation and than we could run Depreciation for the year which we have posted depreciation and that accumulated depreciation with be written off.

My questions are:

Is that a proper way to clear that old accumulated depreciation?

Could we run depreciation for 2017, 2018 and 2019 without causing any issues?

If there is any other way to clear that negative NBV, please assist me?

Thank you in advance.

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1 Answer

  • Posted on Jun 26 at 04:57 AM

    Hello Durga,

    In ByD, system will not allow you to post a transaction if the transaction leads to Negative NBV.

    So in any case, you will not have Negative Netbook value in system.

    Now since the Acquisition value was 0, system will not consider them in depreciation as posting depreciation leads to negative book value. Hence I don't understand when you say you have posted depreciation for the asset and also written off asset in Feb 19.

    If there is no value on asset system will not let you write off as well.

    Can you provide some further information or screenshot.

    Regards,

    Harshal

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    • Hi Harshal,

      Thanks for your response.

      Fixed Assets were acquired in previous years like Oct-18 or Oct-19 and was written off in Feb-2020.

      Actually I have checked the Fixed Assets and found a GRIR clearing run which has posted the reversal amount of that asset after few months. In that meantime, the asset was depreciated for few months and the acquisition cost became zero as soon as the reversal amount was posted to Fixed Asset. Now the accumulated depreciation is in negative value which shows the NBV with negative value.

      I have found the solution to reverse the accumulated depreciation for the current year by changing the depreciation method to "No Automatic Depreciation" and run depreciation for the current Month/Year.

      We can also reverse the previous years depreciation by running the depreciation for 012/2019 but it will definitely affect the financials of previous years.

      Is there any other way to clear that negative NBV?

      Thanks

      Durga Prasad

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