What is residual value in SAP FS-TXS - Funding Management?

SAP Term: residual value

• Component: FS-TXS

• Component Name: Funding Management

• Description: Denotes the residual value of the assets on a defined date. The residual value is the sume of all future payments under type "residual value". All funded cashflows within a funded transaction are included in the calculation; for all open, fixed or accepted funding transactions one uses the planned numbers. The start date is usually the actual current date. In the case of a funding transaction type "ABS structured by originator" ABS-O, one uses the actual date of the planned ABS entries. No actual payments are taken into consideration, the calculation only reflects the funded planned numbers.

Smart SAP Assistant

• Key Concepts: 
  Residual value is a term used in the SAP FS-TXS Funding Management component to refer to the estimated value of an asset at the end of its useful life. This value is calculated by subtracting the expected depreciation from the original purchase price of the asset. 
  
  How to use it: 
  In SAP FS-TXS Funding Management, residual value is used to calculate the total cost of ownership for an asset. This calculation takes into account not only the initial purchase price, but also any expected depreciation over the life of the asset. The total cost of ownership can then be used to compare different assets and determine which one is most cost-effective. 
  
  Tips & Tricks: 
  When calculating residual value, it is important to consider not only the expected depreciation over the life of the asset, but also any additional costs associated with its use. This includes maintenance costs, insurance costs, and any other costs that may be incurred during its lifetime. 
  
  Related Information: 
  For more information on residual value and how it is used in SAP FS-TXS Funding Management, please refer to SAP's official documentation on the topic. Additionally, there are many online resources available that provide further information and guidance on calculating residual value.