I'm seeing negative depreciation reported for some assets. What's going on?
It's just the revision balances being absorbed.
If you're seeing negative depreciation reported for any given depreciation period, it's probably due to the combined effect of having a revisions balance as of the beginning of that period and a "Revision Treatment" of "Immediate."
The application allows you to control how revisions balances will be handled. You may choose one of three revision treatments to apply to the revisions balance for any time interval of each book for each asset:
Immediate—Absorbs the accumulated revisions balance immediately. Using this method, the calculated depreciation amounts in subsequent periods will agree with the reported deprecation amounts.
Prorate—Absorbs the accumulated revisions ratably over the remainder of the asset's life. Using this method, the calculated depreciation amounts in subsequent periods will continue to differ (to a lesser and lesser amount) as the revisions balance is absorbed into the reported depreciation amounts. At the end of the asset's life, the revisions balance will be zero and the total calculated and reported accumulated depreciation amounts will agree.
Never—Ignores the accumulated revisions balance and uses the calculated depreciation amounts as the reported depreciation amounts without further revision to correct the difference. The Reported Accumulated Depreciation will never equal the Calculated Accumulated Depreciation—the difference is equal to the Accumulated Revisions Balance. At the end of the asset's life, the Accumulated Revisions Balance (on the Balance/Accumulated Depreciation and Depreciation Expense tabs of the Asset Viewer) will equal the amount of the original Net Revisions amount (on the Balance/Accumulated Depreciation tab).
Using the Never method, the application will allow an asset to be under-depreciated at the end of its life. However, the application will not allow an asset to be over-depreciated at the end of its life. If the changes made result in excess depreciation at the end of an asset's life, at the point in time when the asset is fully depreciated the application absorbs any excess depreciation as a revision over the asset's remaining life to prevent over-depreciation.