What is capitalize in SAP FI-AA - Asset Accounting?

SAP Term: capitalize

• Component: FI-AA

• Component Name: Asset Accounting

• Description: To include an asset in the balance sheet as an asset item.

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• Key Concepts: 
  Capitalize in SAP FI-AA Asset Accounting is the process of recording the cost of an asset in the asset master record. This cost is then used to calculate the depreciation of the asset over its useful life. Capitalizing an asset also allows for the tracking of the asset’s value over time. 
  
  How to use it: 
  In order to capitalize an asset in SAP FI-AA Asset Accounting, you must first create an asset master record. This record will contain information such as the asset’s description, purchase date, and cost. Once this information is entered, you can then capitalize the asset by entering the cost into the “Capitalization” field in the asset master record. 
  
  Tips & Tricks: 
  When capitalizing an asset, it is important to ensure that all relevant information is entered into the asset master record. This includes not only the cost of the asset, but also any additional costs associated with its purchase or installation. Additionally, it is important to ensure that all capitalized assets are properly depreciated over their useful life. 
  
  Related Information: 
  For more information on capitalizing assets in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.