Basic Configuration settings for implementing Asset Accounting in SAP 6.

0 INTRODUCTION: Thich necessitate a separate Asset accounting module, are given below : Fixed assets have a life span exceeding one year. But they are subjec t to wear and tear, and to provide for this we need to depreciate them. The Asse t Accounting Module enables such calculation of depreciation (we can create depr eciation keys where we give the rate of depreciation). Such feature is not there in the normal GL Accounting. Fixed assets must be shown as a separate head in the balance sheet of companies, and that too under broad categories. Example : Land, Plant and Machi nery etc. In the Asset Accounting Module, we can categorize individual fixed ass ets into asset classes, and thus we can meet this requirement. In other words, c lassification of fixed assets for balance sheet disclosure purposes becomes easy . A separate Asset Accounting Module is required for these transactions because th ere are some distinguishing characteristics of fixed assets as compared to norma l General Ledger accounts. Some of these characteristics of fixed assets which n ecessitate a separate Asset accounting module, are given below : Fixed assets have a life span exceeding one year. But they are subjec t to wear and tear, and to provide for this we need to depreciate them. The Asse t Accounting Module enables such calculation of depreciation (we can create depr eciation keys where we give the rate of depreciation). Such feature is not there in the normal GL Accounting. Fixed assets must be shown as a separate head in the balance sheet of companies, and that too under broad categories. Example : o under broad categories. nder broad categories0045 on. A separate Asset Accounting Module is required for these transactions because th ere are some distinguishing characteristics of fixed assets as compared to norma l General Ledger accounts. Some of these characteristics of fixed assets which n ecessitate a separate Asset accounting module, are given below : Fixed assets have a life span exceeding one year. But they are subjec t to wear and tear, and to provide for this we need to depreciate them. The on. A separate Asset Accounting Module is required for these transactions because th ere are some distinguishing characteristics of fixed assets as compared to norma l General Ledger accounts. Some of these characteristics of fixed assets which n ecessitate a separate Asset accounting module, are given below : Fixed assets have a life span exceeding one year. But they are subjec t to wear and tear, and to provide for this we need to depreciate them. The