What is capitalization rule in SAP FI-AA - Asset Accounting?

SAP Term: capitalization rule

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The rule that determines the items of property that belong to fixed assets, and those that do not.

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• Key Concepts: 
  The capitalization rule in SAP FI-AA Asset Accounting is a set of criteria that determines when an asset should be capitalized. This rule is used to ensure that assets are recorded in the correct accounting period and that the correct amount of depreciation is calculated. 
  
  How to use it: 
  The capitalization rule in SAP FI-AA Asset Accounting is used to determine when an asset should be capitalized. This rule is based on the cost of the asset, the expected useful life of the asset, and any other criteria that may be applicable. When an asset meets the criteria for capitalization, it is recorded in the accounting period in which it was acquired and depreciation is calculated accordingly. 
  
  Tips & Tricks: 
  It is important to ensure that the capitalization rule is applied correctly in order to ensure accurate accounting records. It is also important to review the capitalization rule periodically to ensure that it is up-to-date and reflects any changes in accounting standards or regulations. 
  
  Related Information: 
  For more information on the capitalization rule in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.