What is fixed asset balance sheet account in SAP FI-AA - Asset Accounting?

SAP Term: fixed asset balance sheet account

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A general ledger account in Financial Accounting on which asset transactions are recorded. It is the account to which acquisition and production costs are posted, as apposed to the accumulated depreciation account. However, both of these accounts are asset accounts.

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• Key Concepts: 
  A fixed asset balance sheet account is an account in the SAP system that is used to track the value of a company’s fixed assets. Fixed assets are tangible items that are used in the production of goods or services and have a useful life of more than one year. Examples of fixed assets include buildings, machinery, and equipment. 
  
  How to use it: 
  In SAP, the fixed asset balance sheet account is used to track the value of a company’s fixed assets over time. This account is updated whenever a new asset is purchased or an existing asset is sold or disposed of. The account also tracks depreciation expenses associated with the asset over its useful life. 
  
  Tips & Tricks: 
  When setting up a fixed asset balance sheet account in SAP, it is important to ensure that all relevant information about the asset is included in the account. This includes the purchase price, depreciation rate, and expected useful life of the asset. Additionally, it is important to ensure that all transactions related to the asset are recorded accurately in the account. 
  
  Related Information: 
  The fixed asset balance sheet account is part of SAP’s FI-AA Asset Accounting component. This component also includes other accounts such as depreciation accounts and capital accounts which are used to track different aspects of a company’s fixed assets. Additionally, this component includes reports which can be used to analyze and track changes in a company’s fixed assets over time.