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FA depreciation with residual value


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Hi there,

In Fixed Assets I have set up an object with  Depreciation Method Streight Line and with a Residual Value:

 

 

after  running the Depreciation Proposal it appears that the calculation is done without taken into account this residual value.

In figures:

Aq. value : 13000

Res value :1000

Est life :  5 years

Depr amount per month : 216.67  ( = 13000 / 60 months)

Expected depr per month : 200.00 ( = 12000 / 60 months)

 

The test was done with 2 different ‘method types’ :  ‘streight line’ and ‘RemValue/RemMonths’ but that had no effect on the amount per month ( remains 216.67 )

Does anyone know how this must be solved?

Your help will be very much appreciated

Regards,

Martin Broekman

Best answer by Ieva Rituma

In order for the Fixed Asset Salvage Value to be taken into account, we need to use the Modified Acquisition Value for the Base Value Type against the depreciation method:

 

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Ieva Rituma
Superhero (Employee)
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  • Superhero (Employee)
  • March 2, 2022

In order for the Fixed Asset Salvage Value to be taken into account, we need to use the Modified Acquisition Value for the Base Value Type against the depreciation method:

 


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  • Do Gooder (Partner)
  • March 2, 2022

Thx IRituma for your quick reply and even better: the correct answer! :-)  Case is solved now. Thanks a lot!


Ieva Rituma
Superhero (Employee)
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  • Superhero (Employee)
  • March 2, 2022

Happy I could help!


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