What is the asset accounting in SAP FICO?

Asset Accounting in the SAP system is used for managing and monitoring fixed assets. In Financial Accounting, it serves as a subsidiary ledger to the general ledger, providing detailed information on transactions involving fixed assets.

How do I configure asset accounting in SAP FICO?

Configuration on Asset Management Part 1

Specify Description of Chart of Depreciation.
Copy/Delete Depreciation Areas.
Assign Input Tax Indicator for Non-Taxable Acquisitions.
Assign Chart of Depreciation to company code.
Specify Account Determination.
Create Screen Layout Rules.
Define Number Range Interval.

What is SAP accounting approach?

Accounts Approach. The following applies for the accounts approach: You represent different valuations on different accounts within the same general ledger. This means that you have to create the same set of accounts again for each parallel valuation.

What is an asset SAP?

In SAP Simple Finance, you can create a new asset under Asset Accounting. An asset in accounting is known as any tangible/intangible resource that can add a value and can be included in the financial statement.

How does SAP FICO work?

SAP FICO allows an organization to store a complete version of their financial transaction data. Specifically, the purpose of SAP FICO is to help companies generate and manage financial statements for analysis and reporting, as well as to aid in effective business planning and decision-making.

What is parallel ledger in SAP FICO?

Parallel Accounting: The ‘Parallel Accounting’ in SAP is achieved by storing and posting data in various ‘accounting principal’ in separate ledgers, with the data for one accounting principle stored in the G/L (leading ledger) as the ‘leading’ valuation view.

What is depreciation in SAP FICO?

Depreciation is the gradual loss of an asset’s value over time. SAP contains a specialized tool for calculating depreciation once for every month of analysis. The exact method you use in SAP, however, depends on the data needed for the depreciation run, which in turn depends on the type and nature of the asset.