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

SAP Term: salvage value

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: The value below which an asset cannot be depreciated.

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• Key Concepts: 
  Salvage value is a term used in SAP Fixed Assets (SRD-FIN-FA) to refer to the estimated residual value of an asset at the end of its useful life. It is the amount that an asset is expected to be worth after it has been fully depreciated. 
  
  How to use it: 
  In SAP Fixed Assets, salvage value is used to calculate the depreciation of an asset over its useful life. The salvage value is entered into the system when an asset is created and can be changed at any time. The depreciation of the asset is then calculated based on the difference between the cost of the asset and its salvage value. 
  
  Tips & Tricks: 
  When entering a salvage value for an asset, it is important to consider the expected market value of the asset at the end of its useful life. This will help ensure that the depreciation calculation is accurate and that the asset will not be over or undervalued. 
  
  Related Information: 
  The concept of salvage value is closely related to depreciation, which is a method used to spread out the cost of an asset over its useful life. For more information on depreciation, please refer to SAP's documentation on Fixed Assets (SRD-FIN-FA).