AA804 - Net book value in area & will go below 0

SAP Error Message - Details

• Message type: E = Error

• Message class: AA - Messages for Asset Accounting

• Message number: 804

• Message text: Net book value in area & will go below 0

What causes this issue?

Depreciation area &V1& does not allow negative net book values.
However, the net book value of the asset you are entering is below
zero.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Either correct your entry, or change the definition of the depreciation
area in Customizing.

Error message extract from SAP system. Copyright SAP SE.

AnswerBot

• What is the cause and solution for SAP error message AA804 - Net book value in area & will go below 0 ?

  The SAP error message AA804 indicates that the net book value of an asset in a specific depreciation area is projected to go below zero. This typically occurs during the asset's depreciation calculation, particularly when there are planned transactions that would lead to a negative net book value.
  Cause:
  
  Excessive Depreciation: The asset may have been depreciated too aggressively, either through manual adjustments or automated processes.
  Incorrect Asset Values: The acquisition value or previous depreciation amounts may have been incorrectly entered or calculated.
  Asset Retirement: If an asset is being retired or disposed of, and the planned retirement value is higher than the net book value, this can trigger the error.
  Manual Adjustments: Manual adjustments to the asset's value or depreciation settings that do not align with the asset's current value can lead to this issue.
  
  Solution:
  
  Review Depreciation Settings: Check the depreciation settings for the asset in question. Ensure that the depreciation method and rates are appropriate and that they do not lead to excessive depreciation.
  Check Asset Values: Verify the acquisition value and any previous depreciation amounts. Make sure they are correctly recorded in the system.
  Adjust Depreciation: If necessary, adjust the depreciation amounts for the current period to ensure that the net book value does not fall below zero.
  Asset Retirement: If the asset is being retired, ensure that the retirement value is set correctly and that it does not exceed the net book value.
  Consult with Finance Team: If you are unsure about the adjustments, consult with your finance or accounting team to ensure compliance with accounting standards and practices.
  
  Related Information:
  
  Depreciation Areas: In SAP, assets can have multiple depreciation areas, each with its own rules and settings. Ensure that you are looking at the correct area when troubleshooting.
  Transaction Codes: You may use transaction codes like AS03 (Display Asset), AS02 (Change Asset), or AS01 (Create Asset) to review and modify asset details.
  SAP Notes: Check for any relevant SAP Notes or documentation that may provide additional insights or solutions for this specific error message.
  Testing in a Sandbox: If you are making significant changes, consider testing in a sandbox environment before applying changes to the production system.
  
  By following these steps, you should be able to identify the cause of the AA804 error and implement a solution to prevent the net book value from going below zero.