Asset accounting is one of the most important concepts in SAP learning. Any professional looking forward towards attaining a SAP FI/CO Certification needs to understand the concept of asset accounting with firm understanding. Let’s get introduced to asset accounting in this post.
SAP – Systems, Applications, and Products in Data Processing was founded in the year 1972 and since then it has acclaimed huge recognition over the years. SAP Financial Accounting and SAP Management Accounting helps finance and account professionals to move ahead in the field with better processes. There are various important facts that one needs to realize while preparing for SAP exam. Let’s have a look at some of them.
Asset accounting is used to manage and supervise fixed assets using the SAP system. It is widely used internationally across industries. There are different components of asset accounting; some of these are stated as below.
- Traditional Asset Accounting
- Processing Leased Assets
- Consolidation Preparation
- Information System
Traditional Asset Accounting: This component of asset accounting enraptures the entire life cycle of the asset. Right from buying the asset till its retirement, everything is considered in traditional asset accounting.
Processing Leased Assets: There are independent functions assigned to leased assets and assets those are under construction.
Consolidation Preparation: Preparation for consolidation includes various sub-applications in consolidation such as consolidation of companies, consolidation of business units within a company, consolidation of business areas, and consolidation of profit centers and so on.
Information System: The logistic information system is made up of various information systems such as sales information system, purchasing information system, inventory controlling, plant maintenance information system, retail information system and so on.