What is net book value in SAP SBO - SAP Business One?

SAP Term: net book value

• Component: SBO

• Component Name: SAP Business One

• Description: The value of an asset in the accounting book which is calculated using the historical cost of the asset less any accumulated depreciation. If the asset has been revalued upwards or downwards, the accumulated write-up or write-off is also taken into account in the calculation of the net book value.

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• Key Concepts: 
  Net book value is a term used in SAP Business One (SBO) to refer to the value of an asset after depreciation has been taken into account. It is calculated by subtracting the accumulated depreciation from the original cost of the asset. 
  
  How to use it: 
  Net book value is used to determine the current market value of an asset. It is important to note that net book value does not take into account any changes in market conditions or inflation, so it may not accurately reflect the true market value of an asset. 
  
  Tips & Tricks: 
  When calculating net book value, it is important to ensure that all depreciation expenses are taken into account. Additionally, it is important to keep track of any changes in market conditions or inflation that may affect the true market value of an asset. 
  
  Related Information: 
  Net book value is closely related to other accounting terms such as fair market value and salvage value. Fair market value is the estimated price that an asset would fetch in an open and competitive market, while salvage value is the estimated amount that an asset can be sold for after it has been fully depreciated.