What is planning horizon in SAP FI-AA - Asset Accounting?

SAP Term: planning horizon

• Component: FI-AA

• Component Name: Asset Accounting

• Description: available in reporting.

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• Key Concepts: 
  Planning horizon is a term used in SAP FI-AA Asset Accounting to refer to the period of time for which an asset is planned. This period of time is usually determined by the company's fiscal year and can be set up in the system. The planning horizon is used to determine when an asset should be depreciated, and how much depreciation should be applied. 
  
  How to use it: 
  The planning horizon can be set up in the system by going to the Asset Accounting menu and selecting the “Planning Horizon” option. Here, you can enter the start and end dates for the planning horizon. Once this is done, the system will automatically calculate depreciation for assets within this period of time. 
  
  Tips & Tricks: 
  It is important to ensure that the planning horizon is set up correctly, as this will affect how depreciation is calculated. If the planning horizon is too short, it may result in assets being depreciated too quickly, while if it is too long, it may result in assets being depreciated too slowly. 
  
  Related Information: 
  The planning horizon can also be used to determine when assets should be revalued or disposed of. Additionally, it can be used to generate reports on asset depreciation and other related information.