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

SAP Term: net book value

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: The amount of the historical acquisition cost of a fixed asset less the accumulated depreciation.

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• Key Concepts: 
  Net book value is a term used in SAP Fixed Assets (SRD-FIN-FA) 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: 
  In SAP Fixed Assets, net book value is used to determine the current value of an asset. This value can be used to calculate the amount of depreciation that should be charged for a given period. It can also be used to determine the amount of capital expenditure that should be allocated for a given asset. 
  
  Tips & Tricks: 
  When calculating net book value, it is important to take into account any changes in the asset’s value due to inflation or other factors. This will ensure that the net book value is accurate and up-to-date. 
  
  Related Information: 
  Net book value is closely related to other accounting terms such as carrying value, salvage value, and residual value. Carrying value is the amount of money that an asset is worth after taking into account any depreciation or amortization. Salvage value is the estimated amount of money that an asset can be sold for at the end of its useful life. Residual value is the estimated amount of money that an asset can be sold for at the end of its lease period.