FI-AA, a SAP asset accounting sub module is useful for the management and monitoring of tangible fixed assets within the system. Specialists can transfer their accounting data with other components within the SAP environment. For instance, it is easy to assign good receipts and invoice receipt in the Material Management to the FI Asset Accounting component. One can also transfer the depreciation and the interest values of the asset directly to Financial Accounting and Cost Accounting.
Companies usually manage their assets based on their physical location as well as their value. Companies value complex fixed assets in accordance to IFRS where cost depreciation runs the parallel valuation within asset accounting.
Asset accounting encompasses the entire history of the assets in question. This means that the department concerned must account for all the assets, right from their acquisition stage their retirement. Companies have to evaluate the value for asset insurance, asset depreciation and any other business purpose within a specified time.
SAP asset accounting covers the general life cycle of an asset, right from the time of initial purchase order or asset capitalization to the retirements of the asset. The retirement stage is the end of the useful life of the asset in question. During the life cycle of an asset, the SAP EPR asset accounting solution helps the entities involved to calculate the depreciation value and the interest amount of the asset.
A business should be in a position to be clear about the aspects of functionality it would love to implement before embarking on SAP asset accounting system configuration. This is because this SAP EPR CRM is used internationally with statutory requirements differing from one country to another. Any changes made in the system must be flexible enough to match your country or industry requirements.
The other thing you need to look into before configuration is to make sure that there is no hard coding for any country specific settings. In fact, the SAP system development team usually provides predefined country specific settings to make the configuration and implementation of the system easy.
As mentioned earlier, it is relatively easy to integrate SAP EPR Asset Accounting sub module with other components in the SAP environment. This could mean there is an integration of the sub module to the GL when posting to the asset. This means that the value for your assets will reflect correctly on your accounting balance.
SAP EPR Asset Accounting sub module has an organizational element, the chart of description, which business can use to manage all the legal requirements for the valuation and description of their assets. Well, the charts of description are country specific but even then, it is not necessary to align them with any of your organizational unit.
The SAP EPR Asset Accounting system acts as the basis for the assignment of your assets to various organizational units. This not only helps a company to so a detailed analysis for their assets but also gives them an opportunity to account for each details related to the assets in question. The merit with the chart of description is that your company can use it for all the codes in your respective country.