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Hi,
I am trying to use Split functionality to transfer part of asset to new asset. Old asset was purchased on 1-jul-2022 and have reducing balance depreciation profile 40%. Fiscal year is 1st Jul to 30Jun. I have created a new asset and assign the same reducing depreciation profile 40% on the same book of new asset. Depreciation already run till date 31-Aug-23. Now i have split 20% of the asset on 15-Sep-23. I have posted the split journal. When I am checking the future depreciation amount it is strongly creating a negative amount on the last day of fiscal year.
Regards,
Ankit
Hi,
Did you define a scrap value?
Hi Hana Xue ,
Issue is related to split functionality. We don't use 'Allow negative net book value' and 'Allow net book value higher than acquisition cost'.
Regards,
Ankit
Hi,
There is parameter on Books setup for negative depreciation, can you check that?
Hi Ankit,
Maybe you can distinguish between "Depr. below Zero" and "Negative Depreciation".
"Depr. below Zero" is starting as normal depreciation and allows you to depreciate down to zero and then further below zero (this is often used for internal cost calculations)
"Negative Depreciation" is like the normal depreciation, just with different decimal signs / debit instead of credit.
And Depreciation formula: Divide the cost of the asset (minus its salvage value) by the estimated number of years of its useful life. The “salvage value” is the estimated amount of money the item will be worth at the end of its useful life. Here’s what the formula looks like: (Cost of asset – Salvage value of asset) / Useful life of asset = Depreciation expense
You can pay attention to the part mentioned in the screenshot, and for more related information, you can check the link below.
Can Depreciation Be Negative? - Envoice
Best Regards,
Hana
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