What is investment amortization in SAP EC-CS - Consolidation?

SAP Term: investment amortization

• Component: EC-CS

• Component Name: Consolidation

• Description: The process of decreasing the investment of at least one immediate upper unit without affecting its investment share or the equity of the investee unit. A simultaneous reduction of the investment share is referred to as a divestiture, and a simultaneous reduction in equity is referred to as a reduction in capitalization.

Smart SAP Assistant

• Key Concepts: 
  Investment amortization is a process used in the EC-CS Consolidation component of SAP to spread the cost of an investment over its useful life. This process is used to calculate the amount of depreciation that should be charged against an asset each year. It is also used to calculate the amount of interest that should be charged against a loan or other financial instrument. 
  
  How to use it: 
  In order to use investment amortization in SAP, you must first enter the details of the asset or loan into the system. This includes the purchase price, useful life, and any other relevant information. Once this information is entered, you can then use the amortization feature to calculate the amount of depreciation or interest that should be charged each year. 
  
  Tips & Tricks: 
  When using investment amortization in SAP, it is important to remember that the useful life of an asset or loan can vary depending on its type and purpose. Therefore, it is important to ensure that you enter the correct useful life when setting up the amortization feature. Additionally, it is important to remember that any changes made to the asset or loan after it has been entered into SAP will need to be reflected in the amortization calculations. 
  
  Related Information: 
  For more information on investment amortization in SAP, please refer to the official SAP documentation on EC-CS Consolidation. Additionally, there are many online resources available which provide detailed tutorials and examples on how to use this feature in SAP.