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Asset master with scrap value but depreciated till zero value

Former Member
0 Kudos

Hi,

I have an asset which has a depreciation key for straight line depreciation for 5 years, and a scrap value of $30k entered as fixed amount in the asset master.

In my understanding, if an asset has scrap value, the asset should depreciate up to the cost minus scrap value amount. However, this asset is ended up depreciated up to zero value. The scrap value entered is totally ignored by the system.

Can anyone please enlighten me why this could happen? What should I do to rectify it?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Markus,

Thanks !!!

I just checked depreciation key config according to your method - it is configured as "Cutoff value is ignored". Is this cutoff value list come with SAP? or is it user definable?

I would like to change it to stop depreciating when scrap value is reached. May I know which option should I select?

(1) Consideration is controlled by cutoff value key

(2) Base value is reduced by the scrap value amount

(3) Base value is not reduced

(4) Default value from company code and depreciation area

As for the current assets (some has been fully depreciated to zero in prior year, while some are still depreciating), is there any remedy i could make so that the depreciation value can be reflected correctly?

MarkusBredel
Employee
Employee
0 Kudos

Hi Yuki,

this is almost self-explaining. If you want to consider the scrap value, then you can choose "...is considered by cutoff value...".

All assets below the scrap value with depreciation in the current year will be caught up to the scrap value. If an asset is already depreciated to zero in a prior year, then it is depending on your depreciation area setting, if you allow positive depreciation or not. I any case I would then recommend to post a write-up to lift the asset (which was depreciated in prior years) net value to the scrap value.

Regards,

Markus

Answers (3)

Answers (3)

Former Member
0 Kudos

Hi guys, thanks !!!

Problem solved

srinivasa_maruvada
Active Contributor
0 Kudos

Hi

Check at TCode OAYI and OAAW and check memo values.

Cheers

Srinivas

MarkusBredel
Employee
Employee
0 Kudos

Hi Yuki,

I assume you do not consider cut-off value (respectively scrap value) in your depreciation key. Go to the depreciation key maintenance (AFAMA), and check for the ordinary depreciation phase(s) the setting for "Scrap Value". If you have stored there currently "Cutoff value is ignored", then your scrap value will not be considered.

Change the settings according to your needs then.

Regards,

Markus