What is comparison account in SAP CRM-LAM - CRM Leasing?

SAP Term: comparison account

• Component: CRM-LAM

• Component Name: CRM Leasing

• Description: A hypothetical account that is used to determine the effective interest rate for invested or borrowed capital. Independent of any contractual agreements, a comparison account contains the actual payments cash flows that are calculated as repayment and interest effective at the time when they were made. An iterative procedure is used to determine the interest rate at which the present value of the invested capital is zero effective interest rate.

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• Key Concepts: 
  A comparison account is a type of account used in SAP CRM Leasing and Asset Management (CRM-LAM). It is used to compare the current value of an asset with its original value. This allows for the calculation of depreciation and other financial metrics. 
  
  How to use it: 
  In order to use a comparison account, you must first create it in the system. This can be done by navigating to the “Accounts” tab in the CRM-LAM module and selecting “Create Comparison Account”. Once created, you can enter the original value of the asset and then enter the current value as it changes over time. 
  
  Tips & Tricks: 
  It is important to keep track of the original value of an asset when using a comparison account. This will ensure that accurate calculations are made when calculating depreciation and other financial metrics. Additionally, it is important to update the current value regularly in order to ensure that accurate calculations are made. 
  
  Related Information: 
  For more information on comparison accounts, please refer to SAP’s documentation on CRM-LAM. Additionally, there are many online resources available that provide detailed tutorials on how to use comparison accounts in SAP CRM-LAM.