What is cost-accounting value in SAP FI-AA - Asset Accounting?

SAP Term: cost-accounting value

• Component: FI-AA

• Component Name: Asset Accounting

• Description: An asset value that is not calculated for external financial reports, but is used primarily for internal information. Management accounting values may not have to correspond with the values determined for book and tax depreciation. For example, it may be useful for cost accounting reasons to use depreciation methods that are not allowed in book and tax depreciation. SAP recommends that you set up a separate depreciation area to calculate cost-accounting values.

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• Key Concepts: 
  Cost-accounting value is a term used in SAP's FI-AA Asset Accounting component. It is the value of an asset that is used for accounting purposes, such as depreciation calculations. This value is determined by taking into account the cost of the asset, any additional costs associated with its acquisition, and any other costs related to its use.
  
  How to use it: 
  The cost-accounting value of an asset can be found in the Asset Master Data screen in SAP. This value is used to calculate the depreciation of an asset over time. It is also used to determine the book value of an asset at any given point in time.
  
  Tips & Tricks: 
  When entering the cost-accounting value for an asset, it is important to ensure that all associated costs are taken into account. This will ensure that the depreciation calculations are accurate and that the book value of the asset is correct.
  
  Related Information: 
  The cost-accounting value of an asset is closely related to its fair market value. The fair market value of an asset is determined by taking into account factors such as supply and demand, economic conditions, and other external factors.