Salvage Value Field, FA Journal Line Table
Represents the estimated residual value of a fixed asset when it can no longer be used.
Enter a salvage value in this field only if you have selected the Acquisition option in the FA Posting Type field.
Note
Entering a salvage value at the same time as the acquisition cost is especially important if you also select the check box in the Depr. Acquisition Cost field. In this case, the depreciation base is: Acquisition Cost - Salvage Value
Additional Information
In accounting, salvage value is used to determine depreciation amounts.
For example, a fixed asset costs LCY 4800 today. After a usage of 4 years, its salvage value is defined as LCY 800. When using the straight-line depreciation method for calculating depreciation, this asset is depreciated at LCY 1000 each year. When there is no salvage value defined after 4 years, the same asset is depreciated at LCY 1200 each year. The following table shows the depreciation profile with and without the specified salvage value.
| Depreciation profile | With the specified salvage value | Without a salvage value |
|---|---|---|
Purchase Today |
4800 |
4800 |
Depreciation Year 1 |
-1000 |
-1200 |
Depreciation Year 2 |
-1000 |
-1200 |
Depreciation year 3 |
-1000 |
-1200 |
Depreciation Year 4 |
-1000 |
-1200 |
Salvage Value Year 4 |
-800 |
0 |
The example shows specifying the salvage value of LCY 800 reduces the depreciation amount of LCY 200 per year.
Tip
For more information on how to work with fields and columns, see Work with Data. For assistance in finding specific pages, see Search.
Parent Tables
| Table | Location |
|---|---|
| FA Journal Line Table | Fixed Assets |
| FA Journal Line Table | Fixed Assets |
See Also
Reference
Fixed Asset Journal
FA Posting Type
Depr. Acquisition Cost