Difference between Salvage value and depreciation limit
Hello everyone,
I am trying to understand what is the difference between Salvage Value and Depreciation Limit.
Our business has not been using salvage value for any of the assets. But now the users want to enter the salvage for all the assets and the the asset needs to stop depreciating once the NBV equals the salvage value.
Currently we are using Flat rate depreciation methods. See below:
I tested it out for a couple of assets by entering a new salvage value for the asset. But the assets seem to be depreciating beyond the salvage value. How can we fulfill the above requirement?