SBO 2005 PL1 : Fixed Assets

Question

We are deploying SBO in Lebanon - For the Fixed Assets, they have one legal requirement which oblige them to force the Residual Value to one when it's totaly amortize until the equipment or material is not scrap out. How could we force the vaue to one ?
Edited by: Marc Riar on Feb 21, 2008 2:06 PM

Answer 1

Hi
Start from 2005 SP1 PL75, there are some bahavior change for Salvage value feature.
1.  Where are the new fields regarding salvage value?
    o  Field name:  Salvage Value %
       Location:    Depreciation Types form => General Tab
       Description: salvage value = APC * Salvage value %
    o  Field name:  Include Salvage Value in Depreciation
       Location:    Depreciation Types form => General Tab
       Description: Control whether to include Salvage Value in
depreciation calculation. Select this checkbox to exclude Salvage value in deprecication calculation.
    o  Field name:  Salvage Value
       Location:    Fixed Asset Master Data form => General Tab
       Description: salvage value of specific asset
2.  How to configure salvage value for an asset?
  salvage value = APC * Salvage Value Percentage of Depreciation Type
    o  Salvage value is always updated automatically according to above formula if transtions trigger the change of APC.
    o  Salvage value always takes effect for the whole fiscal year.
    o  You can also modify salvage value manually in Fixed Asset Master Data form => General Tab. Change of salvage value will trigger the recalculation of depreciation.
3.  How to calculate planned depreciation value based on salvage value?
    o  Example I:
       APC: 10,000     Useful Life: 10 years     Salvage Value: 2,000
       Depreciation type: Straight-line depreciation
       Calclation Method: Acquisition Value / Total Useful Life
       Include Salvage Value in Depreciation: Not checked
       Yearly Depreciation Amount =
       (APC - Salvage Value) / Useful Life = (10000 - 2000) / 10 = 800
    o  Example II:
       APC: 10,000     Useful Life: 10 years     Salvage Value: 2,000
       Depreciation type: Straight-line depreciation
       Calclation Method: Acquisition Value / Total Useful Life
       Include Salvage Value in Depreciation: Checked
       Yearly Depreciation Amount = APC / Useful Life
       = 10000 / 10 = 1000
4.  Relevant rules with regard to salvage value:
    a) All depreciation areas of an asset use the same salvage value.
    b) Salvage Value field in Fixed Asset Master Data form => General Tab is editable if and only if Salvage Value Percentage of depreciation type of main depreciation area is not zero.
    c) In Depreciation Types form => General Tab, the setting of
       Depreciation Value Limit only takes effect when the Salvage Value % is zero.
    d) When you import a fixed asset master data, salvage value is retrieved automatically according to the depreciation type from the main depreciation area. Make sure that salvage value is not greater than NBV, otherwise an error message will come up in log file.
5.  Depreciation Value Limit Vs. Salvage Value:
    a) Both are the amount at which the asset depreciation stops.
    b) Depreciation Value Limit only takes effect when Salvage Value % is zero.
    c) Depreciation Value Limit is not considered in planned       depreciation calclulation.
    d) Salvage value is considered in planned depreciation calclulation if Include Salvage Value in Depreciation of depreciation type is not checked.
You can also refer to SAP Notehttps://service.sap.com/sap/support/notes/1100660.
Hope it is helpful!
Regards,
Ivy Zhang
SAP Business One Forums Team