Depreciation of Assets with Zero and Negative Costs
The SuiteApp can depreciate assets with zero and negative costs, provided the combination of the affected asset costs is any of the following:
|
Original Cost |
Current Cost |
Residual Value |
|---|---|---|
|
Negative |
Negative |
Negative |
|
Negative |
Negative |
Zero |
|
Negative |
Zero |
Zero |
The minimum Residual Value you can enter is zero. By default, the system uses the absolute value of all negative asset costs. Therefore, depreciation for assets with negative values is calculated using the absolute values of the original and current costs up to zero or absolute Residual Value.
You can enter negative values in asset records if Allow Negative Asset Cost is enabled. For more information, see Setting Up the Fixed Assets Management System.
For accounting methods, the system won't depreciate assets with negative costs if Allow Negative Asset Cost is turned off. No depreciation history records or journal entries are created. Even if Allow Negative Asset Cost is turned off, you may still import negative costs depending on your settings for CSV import. For more information, see General Guidelines for Importing Fixed Asset Records.