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Reply from VidhyaDhar on Aug 3 at 7:19 AM Hi
Peter is absolutely right and the percentage of scrap value can be set as
16.67% as correctly mentioned by him. However, this percentage would work
for assets with 5 years as useful life. However, there may be other assets
with different useful lives and the scrap percentage needs to be determined
for them too.
The algorithm of dividing the Asset Value (APC) by (Estimated life + 1 in
years ) would give you the scrap value. This scrap value expressed as a
percentage of the APC could give the scrap percentage which can be worked
out using MS Excel and the result captured in the asset master record
during creation.
Example:
APC : 120 USD
Life : 5 Years Scrap 16.6667 %
Life 8 Years Scrap 09.0909 %
Life 10 Years Scrap 11.1111 % and so on.
Regards
VidhyaDhar
| | | ---------------Original Message---------------
From: Peter Zelinko
Sent: Friday, August 03, 2012 4:56 AM
Subject: Depreciation Key and Useful Live
Hi Christiane,
You can enter Scrap Value as percentage in Asset Master Record in Depreciation Area Details (ANLB-SCHRW_PROZ).
However, this way the scrap value is not taken into account when calculating Annual Depreciation. It just stops depreciating at this value.
Your case: APC 120, scrap value 16.66666%, UL 5 years would lead to annual depreciation 120/5=24 and it will stop depreciating after 4 years and 2 months.
To get annual depreciation 20 you would need UL 6 years.
Other way is to define Scrap Value (Cutoff Value Key) in Depreciation Key. This way you can achieve APC 120, UL 5 year, annual depreciation 20 and it will stop after 5 years with NBV 20.
Cheers,
Peter |
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