Hello,
Can anyone tell me:
where do I fill in my residual value of my fixed assets.
Thank you!
Greetings Marco
please find the link to create fixed asset
https://www.manager.io/guides/9106
to add opening balances for fixed asset
https://www.manager.io/guides/15718
I think this has not answered my question yet.
In the Netherlands, we must enter a value that the assets are still worth at the end of the depreciation period if they are sold.
This must be determined in advance in the accounting.
So when I create a new asset, I enter the purchase price there, but I also have to enter a residual value there, but I can’t find that option anywhere.
Greetings Marco
This is not a value that can be known in advance. Even if you think a machine will will worth XX in 10 years, at the end of that time you might discover you can sell it for more or that it has become completely obsolete and cannot be sold at all. I do not know whether Dutch requirements include specifying expected residual value in advance. But that would have no place in accounting, which records transactions that have already occurred.
Book value, in contrast, is the remaining depreciable value of an asset. Book value is not entered directly in Manager. It is calculated automatically as the difference between purchase cost and accumulated depreciation to date. Accumulated depreciation on a particular asset can be entered under Starting Balances.
Having said that, some jurisdictions regulate what can be considered in entering your original purchase cost. For example, you might buy a fixed asset including land and a building. Your tax authority might consider that land cannot be depreciated because it does not decline in value over time. So your purchase cost would reflect only the portion of the total purchase related to the building. It is possible that some authorities would only allow a purchase cost to be used for calculating depreciation that reduced your purchase price by an expected residual value. If that is the case, consideration of residual value would not be explicit in Manager, but would reduce purchase price.
You don’t have to enter the scrap value. You just have to use it in the calculation of your depreciation.
Depreciation amount = (cost of Asset-scrap Value) / number of estimated useful life
Hi @marco2 I don’t know if you’ve already solved the problem. If not, you can create a new asset account called ‘Residual value’, then create the asset and create the purchase invoice in which you debit the ‘Residual value’ account for the residual value’s amount.
