What is depreciation below zero in SAP FI-AA - Asset Accounting?

SAP Term: depreciation below zero

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The calculation of depreciation amounts below book value zero. Depreciation from a negative book value is useful for calculating imputed costs when exceeding the planned useful life of the asset. Using the depreciation key, you can specify for each asset or asset class how the asset is to be further depreciated after the end of the planned useful life or once the book value zero has been reached. For example, you can continue depreciation using an percentage rate that is reduced automatically.

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• Key Concepts: 
  Depreciation below zero is a feature in SAP FI-AA Asset Accounting that allows for the depreciation of an asset to be calculated below zero. This means that the asset can be depreciated beyond its original purchase price. This feature is useful when an asset has been sold or disposed of, and the remaining value of the asset needs to be accounted for. 
  
  How to use it: 
  In order to use this feature, you must first set up a depreciation area in the Asset Accounting module. Once this is done, you can enter the asset's purchase price and the depreciation rate. The system will then calculate the depreciation below zero based on the rate and purchase price entered. 
  
  Tips & Tricks: 
  When setting up a depreciation area, make sure to select the “Allow Depreciation Below Zero” option in order to enable this feature. Additionally, it is important to note that this feature should only be used when an asset has been sold or disposed of, as it will not accurately reflect the value of an asset that is still in use. 
  
  Related Information: 
  For more information on setting up a depreciation area and using depreciation below zero, please refer to SAP Help documentation or contact your local SAP support team.