What is asset under construction in SAP FI-AA - Asset Accounting?

SAP Term: asset under construction

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A fixed asset that is in the process of being completed at the time the balance sheet is being produced. Typically, assets under construction are shown as a separate balance sheet item for the enterprise. Assets under construction can be managed for bookkeeping purposes in the component using asset master records in special asset classes. To also benefit from management accounting functions that go beyond the asset accounting level, you can use capital investment measures in the Investment Management component. Investment measures can be managed in the form of internal orders or projects.

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• Key Concepts: 
  Asset under construction is a term used in SAP FI-AA Asset Accounting to refer to an asset that is still in the process of being built or constructed. This asset is not yet ready for use and is not yet assigned to a particular cost center. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, an asset under construction can be created by entering the relevant data into the system. This includes the asset number, description, and cost center. Once the asset is completed, it can be assigned to a cost center and put into use. 
  
  Tips & Tricks: 
  When creating an asset under construction in SAP FI-AA Asset Accounting, it is important to ensure that all relevant data is entered correctly. This includes the asset number, description, and cost center. Additionally, it is important to ensure that the asset is assigned to the correct cost center once it is completed. 
  
  Related Information: 
  For more information on creating assets under construction in SAP FI-AA Asset Accounting, please refer to the official SAP documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to create assets under construction in SAP FI-AA Asset Accounting.