The depreciation of a fixed asset is usually finished when a net book value of zero or the end of the planned useful life has been reached. Sometimes, the book value has not yet reached zero when the useful life is expired, due to the depreciation method used. By adjusting the way the system handles the end of depreciation (in the base method), you can continue to depreciate beyond the end of the useful life.

You specify how the end of depreciation is handled in the base method, which is independent of the chart of depreciation. However, you can enter default value for depreciation areas and company codes in Customizing for Asset Accounting (Depreciation ® Valuation Methods ® Depreciation Key ® Default Values). Using such default values, you can maintain your base methods so that you have different ways of handling the end of depreciation in different depreciation areas and company codes.

The system continues to calculate depreciation after the planned useful life of the fixed asset has ended.

With depreciation beyond the planned useful life, the depreciation percentage rate can be derived, not only from the planned useful life, but also from the actual useful life. This method produces a declining-balance effect instead of a straight-line effect (curb).

It is also possible to depreciate below zero as long as the depreciation area allows a negative net book value. You have to set an indicator in the base method to allow this kind of depreciation. Depreciation below zero can, for example, be useful for cost-accounting purposes.

Depreciation usually ends within the fiscal year due to the fact that the depreciation start date for the asset is also within the fiscal year. Using a setting in the base method, you can automatically reduce the useful life so that the close of depreciation always falls at the end of the fiscal year.