2507525 - Negative Depreciation Posting for Fixed Assets

SAP Knowledge Base Article - Public

2507525 - Negative Depreciation Posting for Fixed Assets

Symptom

You have created a custom valuation view for fixed assets and set the Value Range for Acquisition Cost and Net Book Value (NBV) as Complete Value Range Permitted from the drop-down options.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Go to Business Configuration work center.
  2. Go to Implementation Projects view.
  3. Open the Valuation Views activity.
  4. Create a custom valuation view
  5. Set the Value Range for Acquisition Cost and the Value Range for Net Book Value as Complete Value Range Permitted.

After proper set up of this valuation view to be used in the fixed assets, the asset has been e.g. depreciated and after adjustments the NBV is negative. You execute an automatic depreciation run and either nothing is posted or the asset is written-off, however you expect the system to keep posting a negative depreciation so that the NBV would go on into negative values.

Cause

The Complete Value Range Permitted option does not mean that the automatic depreciation runs would go on endlessly into the negative values. This setup means that the checks during manual postings or automatic postings (e.g. credit memos) would not enforce any condition on the NBV or acquisition cost to be positive or negative.

For example:

If you acquire an asset as $5000 you may post a manual depreciation of $6000 so that the NBV goes into negative (no error message is raised since complete value range is allowed). You could also post further manual negative depreciation postings in this case. Whereas the Depreciation Run is expect to stop when NBV is Zero and/or a reversal is required. It only reverses the automatic depreciation postings. In this example, if you execute a depreciation run, no postings would occur.

Resolution

The NBV can go into negative amounts via manual depreciation only.

Keywords

KBA , SRD-FIN-FA , Fixed Assets , How To

Product

SAP Business ByDesign all versions