1. What is the Asset Accounting sub-module?
The Asset Accounting sub-module manages a company’s fixed assets. Within the Financial Accounting system, FI-AA serves as a sub-ledger to the General Ledger, providing detailed information on asset-related transactions.
2. Define the chart of depreciation.
The chart of depreciation contains the defined depreciation areas. It also contains the rules for the evaluation of assets that are valid in a given country or economic area. The chart of depreciation is a catalog of country-specific depreciation areas structured to meet the various business needs.
Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation.
3. What is the difference between the chart of accounts and chart of depreciation?
The chart of accounts can be global, country specific and industry specifics based on the needs of the business. The chart of depreciation is only country specific. The charts are independent of each other.
4. How is Asset Accounting integrated with Cost Accounting (CO)?
Postings to depreciation can be made through a cost object such as a cost center or internal order. Also, an asset can be assigned to a cost center, internal order, activity type, or a maintenance order.
5. What is an asset class?
This is the main criterion for classifying assets by business and legal requirements. The asset class, created at the client level, consists of a master data and depreciation area section. Each asset master record must be allocated to one asset class.
6. Define depreciation area.
A depreciation area shows the valuation of assets for a particular purpose (for example, for individual financial statements, balance sheets for tax purposes, and cost accounting values).