Use of "Leave Net Book Value at" field in FA

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Hello,

Please can any one explain what's use of "Leave net book value at" field option in FA with example. Because in my case even I have given net book value system calculates depreciation on total asset value.

Eg: My Acquisition cost is USD 15000

Net book value is USD 4000

I think depreciation should be calculates on USD 11000 but not on USD 15000 but in my case when I run dep proposal, dep calculates against USD 15000.

If my understand is wrong please correct me.

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Prashant Singh 8,802 on at

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Dear Mallesh,

I think this is not the purpose of this field

This field to keep the net book value with a balance and you do not want to fully depreciate the asset and to have a zero balance of net book value

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Daxer Persson 3,007 on at

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If you want to depreciate based on 11 (15-4) on a FA rather than 15 (as acq.value) then to then FA there is a field "Expected scrap value" where you want to put the 4.

(and Prashant is correct about the "Leave net book .." functionality.)

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Community Member on at

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Could you please explain more elaborately with an example

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Daxer Persson 3,007 on at

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The acq. value of the asset is 15 (by posting this value on the FA e.g. in a FA journal).

On the record related to the Value model of the FA there is a field "Expected scrap value". In this field you enter 4.

Then in a FA journal you do the normal period depreciation journals. The amounts calculated here will now be based on a value of 11 to be depreciated.

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