How : Difference Between Original Cost,Salvage Cost,Net Book Value and Recoverable Cost.

1- The original cost is the amount of money the asset originally costs. This amount may suffer modifications (adjustments) when, for example, you buy an asset for a certain cost but you have to pay other expenses to put it working.

2- The recoverable cost is the portion of the current cost that can be depreciated. It is the current cost less the salvage value less the Investment Tax Credit basis reduction amount. If you specify a depreciation cost ceiling, and if the recoverable cost is greater than that ceiling, Oracle Assets uses the cost ceiling instead.

3- The net book value is defined as: Net Book Value = Current Cost – Total Reserve (Accumulated Depreciation + Bonus Reserve)

4- You can specify a salvage value as a percentage of an asset’s acquisition cost or as an amount. The percentage salvage value will be defaulted from the category default rules if you have default the salvage value percentage at the category level in the Asset Categories window. The salvage value is calculated by multiplying the acquisition cost by the default salvage value percentage. Then you can define a default percentage salvage value at the category level in the Asset Categories window. Oracle Assets calculates the salvage value by multiplying the acquisition cost by the default salvage value percentage for the category, book, and date placed in service. If you specify the salvage value as an amount, you simply enter the amount.