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Salvage value in depreciation calculation

  • 29 August 2022
  • 3 replies
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New to Acumatica. My question is why is my Depreciation calculation not reducing the asset cost for salvage value before calculating depreciation.  The report reads asset cost = depreciable value on an asset with a declared salvage value.

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Best answer by Laura02 30 August 2022, 00:39

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Userlevel 7
Badge +16

Hi @swhitley 

Just to be sure, are you calculating the Depreciation?

 

Here is also help on the topic:

https://help-2022r1.acumatica.com/Help?ScreenId=ShowWiki&pageid=86483f61-6a0e-4d4e-86b5-0a06a1b6b230

 

If you could, please show what report you are looking at and steps you are taking.

Badge +18

Hello,

It may help us to know what depreciation method you are using and to see a screen shot including all details of your asset with resulting depreciation figures.

Meanwhile, I did a quick test using SL - Straight Line.

Before I made changes, the asset had been depreciated only for the first month when it was placed in service. It had salvage amount of $0. I calculated so we can see the amount expected for each month in the future.

Next I added a Salvage value and recalculated.

Now the predicted depreciation is MUCH smaller due to the high salvage Amount I gave my test item.

 

Is your experience different?  If so please provide details and screen shots and we will help you.  Thank you.

 In further examination I did confirm that the salvage value was being included in the depreciation computation. The Depreciation report lists the Original Cost and the Depr. Basis as the same amount regardless of the salvage value on the asset item. For the newbee, that's a bit deceiving.

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