Asset master with scrap value but depreciated till zero value
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?
Markus Bredel replied
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.