Scrap value of the fixed assets
There is a common business requirement for fixed asset where keeping a specific amount as an asset net book value. This amount represents the estimated salvage value at the end of asset service life, it also known as fixed asset residual value.
In order to consider this business requirements in Microsoft Dynamics AX, this should be identified on Fixed Asset – Value model.
Assume that there is a Fixed asset with a depreciation profile “Reducing balance” with a service life for 1 Year, and 12 Month as depreciation periods
The asset acquisition date is 1/1/2015 and acquisition price is 12,000.00
Here under Depreciation tab identify the salvage “residual ” value which represent the estimated scrap value of the fixed assets, in this example it is 1 USD.
In order to check the monthly depreciation, go to Inquiry| Profile
The depreciation is calculated with the following equation;
Monthly depreciation = (Fixed asset acquisition price – Salvage value) / Fixed asset useful life
Monthly depreciation = (12,000.00 – 1.00)/12
Monthly depreciation = 11,999/12
Monthly depreciation = 999.92
And at the end there is a residual amount = 1.00 USD which will be remain in the asset netbook value.
