What is plant and equipment in SAP FI-AA - Asset Accounting?

SAP Term: plant and equipment

• Component: FI-AA

• Component Name: Asset Accounting

• Description: An asset type in fixed assets. Plant and equipment are used in productive operational output and are consequently subjected to wear and tear. This wear and tear is reflected in bookkeeping by the calculation of depreciation.

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• Key Concepts: 
  Plant and equipment are tangible assets that are used in the production or supply of goods and services. They are typically long-term assets that are expected to last more than one year. Examples of plant and equipment include machinery, vehicles, furniture, and office equipment. In SAP FI-AA Asset Accounting, plant and equipment are recorded as fixed assets. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, plant and equipment can be recorded as fixed assets. This is done by creating an asset master record for each asset. The asset master record contains information such as the asset’s description, acquisition date, useful life, and depreciation method. The asset master record also contains information about the asset’s location, cost center, and depreciation area. 
  
  Tips & Tricks: 
  When recording plant and equipment in SAP FI-AA Asset Accounting, it is important to ensure that all relevant information is included in the asset master record. This includes the asset’s description, acquisition date, useful life, depreciation method, location, cost center, and depreciation area. This will ensure that the asset is properly accounted for in the system. 
  
  Related Information: 
  For more information on recording plant and equipment in SAP FI-AA Asset Accounting, please refer to the SAP Help documentation or contact your local SAP support team.