What is guaranteed residual value in SAP FI-AF-SAI - Simplified Accounting Integration?

SAP Term: guaranteed residual value

• Component: FI-AF-SAI

• Component Name: Simplified Accounting Integration

• Description: The residual value agreed upon between lessor and lessee. This will also be the purchase option price on the contract end date.

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• Key Concepts: 
  Guaranteed residual value is a feature of the SAP FI-AF-SAI Simplified Accounting Integration component. It is a way to ensure that the value of an asset remains at a certain level over time. This is done by setting a minimum value for the asset, which is known as the guaranteed residual value. 
  
  How to use it: 
  The guaranteed residual value can be set up in the SAP system by entering the desired value in the relevant field. This value will then be used to calculate the depreciation of the asset over time. The depreciation will be calculated based on the difference between the current market value of the asset and the guaranteed residual value. 
  
  Tips & Tricks: 
  When setting up a guaranteed residual value, it is important to consider the current market conditions and any potential changes that may occur in the future. This will help ensure that the asset retains its value over time. 
  
  Related Information: 
  The guaranteed residual value feature is part of SAP's FI-AF-SAI Simplified Accounting Integration component. It is designed to help businesses manage their assets more effectively and ensure that they retain their value over time. Other features of this component include depreciation calculation, asset tracking, and asset management.