What is 'insurable value' in SAP FI-AA - Asset Accounting?

insurable value - Overview

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The value provided to the insurer.

insurable value - Details

• 
  Key Concepts: 
  Insurable value is a term used in SAP FI-AA Asset Accounting. It is the value of an asset that is insured against damage or loss. This value is determined by the insurance company and is usually based on the current market value of the asset. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, the insurable value of an asset can be found in the asset master record. This value can be used to calculate the insurance premium for the asset. The insurable value can also be used to determine the amount of compensation that will be paid out in case of damage or loss. 
  
  Tips & Tricks: 
  It is important to keep the insurable value of an asset up to date in order to ensure that the insurance premium and compensation amount are accurate. The insurable value should be reviewed periodically and updated as needed. 
  
  Related Information: 
  The insurable value of an asset is related to its depreciation rate, as this affects the amount of compensation that will be paid out in case of damage or loss. It is also related to the insurance policy, as this determines the amount of coverage for the asset.