SAP Knowledge Base Article - Public

2875448 - Salvage Value not Considered in Fixed Asset Depreciation Calculation

Symptom

  • You maintain a specific Salvage Value for Fixed Asset XYZ-X. (XYZ-X represents aFixed Asset ID). 
  • However, the Depreciation is calculated based on the full Acquisition amount, not considering the Salvage Value.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. In the Fixed Assets work center go to the Fixed Assets view.
  2. Find Fixed Asset XYZ-X and open it via Edit - Master Data.
  3. Navigate to the Asset Valuation sub-tab.
  4. In the Salvage Value  field, enter a value.
  5. To check the Depreciation calculation go over to the Values tab and then navigate to the Depreciation Overview subtab. 

You notice that the total Acquisition Value of the Assets is considered. The Salvage value is not considered.

Cause

The Fixed Asset is assigned to a Standard pre-delivered Depreciation method, such as L010 - Str.-line from acq.value to 0. This depreciation method does not consider Salvage Values.

Resolution

You can create a customized Depreciation Method and specify the Salvage Value requirements:

Go to the Business Configuration work center and find the Fine tune Activity Depreciation Methods, either via an Implementation Project or via the Business Configuration overview.

First create the Depreciation method by copying a Depreciation Method template:

  1. Under Depreciation Calculation choose the Copy template and create custom depreciation method. 
  2. In the next screen, select the template in the Depreciation Method Template field, for example GCTSLNRL - Straight line depreciation based on net book value and remaining useful life.
  3. Enter a Depreciation Method key starting with Z, for example ZABC (ZABC represents a customized Depreciation Method ID). 
  4. Then enter a Depreciation Method Description. 
  5. Press Copy Depreciation Method Template. 

Now specify the Depreciation Parameters:

  1. In the Depreciation Calculations choose the Edit depreciation methods link. 
  2. Search for your just maintained Depreciation Method key.
  3. Navigate to the Depreciation Parameters tab.
  4. Here, in the Salvage Value field select 1 - Base value is reduced by salvage value amount. 
  5. Press Save and Close. 

Now assign Depreciation Method ZABC to Fixed Asset XYZ-X.

This time the Salvage value is considered in the Depreciation Overview.

N.B.: Please note that a salvage value under 1,00 LC (Local Currency) does not influence the Depreciation Calculation as it is considered as rounding difference. 

Keywords

Fixed Asset Salvage Value, Salvage value 0,5, Depreciation Parameters , KBA , SRD-FIN-FA , Fixed Assets , Problem

Product

SAP Business ByDesign 1911