ABMA to asset with negative NBV results in zero NBV

Question

The depreciation area was configured to allow all values for APC, Net book value and Ordinary Depreciation.  As a result, legacy assets with depreciation key MANU and negative NBV (Accumulated depreciation and Ordinaryposted  depreciation are greater than APC) were transferred without error to the target system.  However, when posting manual depreciation to these assets, the system would automatically post a value on the 'Ordinary depreciation on Transaction' field equivalent to the negative NBV after the manual depreciation. 
Example:
1) Values transferred using AS91:
APC                                 10,000
Accumulated Depr           14,000-
Ordinary depr posted        1,000-
NBV                                   5,000-
2) ABMA posted                1,000-
Note:  System posted value of 6,000 on the 'Ord depr on Trans' field
in effect, NBV = zero.
Please share your experience on this area.  Thanks!

Answer 1

Hi
This will create the Proble like this,
Your Original Cost of the Asset will be - Ve,
Where as you will be running Monthly AFAB which will calculate depreciation for the -ve values.
Hence ,  your P&L Account will show the Less Value of Depreciation,
This will mislead the Profit of the Organisation which is ultimately and pricipaly against Accounting Standard and Law.
Hence don't do this ,
Assign point if useful
regards
N.Kumar