What is cutoff value in SAP SRD-FIN-FA - FIN-Fixed Assets?

SAP Term: cutoff value

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: Value at which the system stops the depreciation calculation.

Smart SAP Assistant

• Key Concepts: 
  Cutoff value is a feature in SAP Fixed Assets (SRD-FIN-FA) that allows users to set a limit on the amount of depreciation that can be posted in a given period. This limit is set to ensure that the depreciation expense does not exceed the amount of the asset’s book value. 
  
  How to use it: 
  To use the cutoff value feature, users must first enter the asset’s book value in the system. Then, they can set a cutoff value for each period in which depreciation is to be posted. The system will then automatically calculate the amount of depreciation that can be posted in each period, based on the cutoff value and the asset’s book value. 
  
  Tips & Tricks: 
  It is important to remember that the cutoff value should be set before any depreciation is posted for a given period. If the cutoff value is set after depreciation has already been posted, it will not take effect until the next period. 
  
  Related Information: 
  For more information about using cutoff values in SAP Fixed Assets, please refer to SAP Help documentation or contact your local SAP support team.