Skip to Content
avatar image
Former Member

Asset master with scrap value but depreciated till zero value

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?

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

4 Answers

  • Best Answer
    avatar image
    Former Member
    Sep 03, 2008 at 08:13 AM

    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?

    Add comment
    10|10000 characters needed characters exceeded

    • 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

  • Sep 03, 2008 at 10:46 AM

    Hi

    Check at TCode OAYI and OAAW and check memo values.

    Cheers

    Srinivas

    Add comment
    10|10000 characters needed characters exceeded

  • Sep 03, 2008 at 07:05 AM

    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

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Sep 04, 2008 at 01:14 AM

    Hi guys, thanks !!!

    Problem solved 😊

    Add comment
    10|10000 characters needed characters exceeded