Assets net book value is negative and depreication is charged in Positive,

[Former Member]

Hi,

For some assets in Assets explorere (AWO1N), net book value is showing as MINUS ( Negative Value ) and after that some time same assets started the depreciaion in Postive Amount with the same amount which the assets has the negative value.

I know the reason for the negative book value that our Book depreciation has settings in T.code-OBAN as the Negative value allowed and below zero is allowed.

I want to know, why the system starts the depreciation in Positive amount. What are settings for this. In Some of the assets that negative book value has adujsted in single period depreciation amount and in some assets it has been charged in multiple periods with equal amount.

Please could you tell me the reason of positive depreciation.,

[Former Member]

If your asset record has a check in "negative values allowed" checkbox than you will be able to have negative cost resulting in negative NBV. Based on negative cost your depreciation will automatically calculate in positive amount. Check your depreciation key settings and make sure the base methods used in those keys does not have settings for "below zero" as depreciation keys play a major role of calculating depreciation so you have to make sure that you are using the correct settings in the keys depending on what you want to achieve. If you are calculating based on straight-line percentage (w/ multi-level method) your depreciation will go in positive but if your key is calculating based on useful life and NBV zero settings than most likely it will not start calculating depreciation in positive.

I hope you are getting my point here.