It may sometimes be necessary to depreciate assets not to net book value zero, but only up to a scrap value or cutoff value.
There are two ways of specifying the scrap value:
o By assigning a scrap value key to the depreciation key used in the depreciation area
o By entering an absolute scrap value in the asset master data for the depreciation area
Path: Financial Accounting (New) ® Asset Accounting ® Depreciation ® Valuation Methods ® Further Settings ® Define Cutoff Value Key
You can assign a scrap value key to each depreciation key in its definition.
Start date: capitalization date
Percentage: 5%
Validity period: 5 years
A cutoff percentage rate of 5% is valid for assets that are no older than 5 years old according to their capitalization date.
For more info . . . on Scrap Value
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