What is asset type in SAP FI-AA - Asset Accounting?

SAP Term: asset type

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A classification for fixed assets in the balance sheet. Special asset types used include: Movable assets Operating facilities Land and buildings Assets under construction Low-value assets Intangible assets The asset type is not a separate object in the component. You represent an asset type by defining the features of an asset class.

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• Key Concepts: 
  Asset type is a classification of assets in SAP Asset Accounting (FI-AA). It is used to group assets with similar characteristics, such as depreciation methods, useful lives, and account determination. Asset types are used to define the asset master record and to control the asset accounting process. 
  
  How to use it: 
  Asset types are created in the SAP system and assigned to an asset master record. This allows the system to determine the depreciation method, useful life, and account determination for each asset. The asset type also determines which fields are available in the asset master record. 
  
  Tips & Tricks: 
  When creating an asset type, it is important to consider how it will be used in the future. For example, if you plan to use the same depreciation method for all assets of a certain type, it is best to create a separate asset type for each depreciation method. This will make it easier to manage assets in the future. 
  
  Related Information: 
  For more information on asset types in SAP Asset Accounting (FI-AA), please refer to the SAP Help documentation or contact your local SAP support team.