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1. Overview of the residual value of assets
How to calculate the residual value of assets? Mainly from the following two ways:
- Method 1: Residual value rate of depreciation code * original value
- Method 2: Fixed residual value of depreciation code
If the two methods appear in the asset at the same time, how to determine the residual value of the asset.
Next, we will analyze related issues through practical operations.
2. Method 1: Depreciation code residual value rate * original value
Calculate the residual value of the asset through the residual value rate set by the depreciation code.
Salvage value = original value * salvage value rate of depreciation code
Monthly depreciation amount = (original value-salvage value) / total month
Example
Asset: 130000000002
Depreciation code: Z002 (straight-line depreciation method, residual value 5%, depreciation starting next month)
Depreciation period: 10 years
Original value: 12000
month depreciation = 12000 * ( 1-0.05 ) / 120 = 95
3. Method 2: Fixed residual value of depreciation code
Directly set the fixed residual value corresponding to the asset depreciation code.
3.1 Priority of mode 1 and mode 2 (very important)
If both method 1 and method 2 appear in the same asset, how to determine the residual value of the asset involves the priority of the two.
The priority is as follows:
Method 2> Method 1
ie fixed residual value of depreciation code> residual value calculated by the residual value rate of depreciation code
[ Project Practice ] Regarding the priority of the two methods, in the process of asset migration (such as ECC upgrade S4), you need to pay special attention. If you do not notice the existence of fixed residual value of depreciation code, it will lead to asset residual value and monthly A series of problems such as the difference in depreciation amount appeared.
3.2 Scenario 1: Original value * residual value rate <fixed residual value
Asset: 130000000000
Depreciation code: Z002 (straight-line depreciation method, residual value 5%, depreciation starting next month)
Depreciation period: 10 years
Original value: 12000
depreciation code residual value = 1000 (greater than the residual value calculated by the depreciation rate of 600)
Method 1 : Monthly depreciation = 12000 * (1-0.05) / 120 = 95
Method 2: Monthly depreciation = (12000-1000) / 120 = 91.67
3.3 Scenario 2: Original value * residual value rate> fixed residual value
Asset: 130000000001
Depreciation code: Z002 (straight-line depreciation method, residual value 5%, depreciation starting next month)
Depreciation period: 10 years
Original value: 12000
depreciation code residual value = 200 (less than the residual value calculated by the depreciation rate of 600)
Method 1 : Monthly depreciation = 12000 * (1-0.05) / 120 = 95
Method 2: Monthly depreciation = (12000-200) / 120 = 98.33
