What is retirement in SAP (FI-AA - Asset Accounting)?

SAP Term: retirement

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The removal of an asset from the asset portfolio.

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• Key Concepts: 
  Retirement in SAP FI-AA Asset Accounting is the process of removing an asset from the company’s balance sheet. This is done when an asset is no longer used or has reached the end of its useful life. The retirement process involves recording the asset’s value at the time of retirement, and then transferring it to a retirement account. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, retirement is done by entering a retirement transaction in the system. This transaction will record the asset’s value at the time of retirement, and then transfer it to a retirement account. The retirement transaction can also be used to record any additional costs associated with the retirement, such as disposal costs. 
  
  Tips & Tricks: 
  When entering a retirement transaction in SAP FI-AA Asset Accounting, it is important to ensure that all relevant information is included. This includes the asset’s value at the time of retirement, any additional costs associated with the retirement, and any other relevant information. 
  
  Related Information: 
  Retirement in SAP FI-AA Asset Accounting is closely related to depreciation. Depreciation is the process of recording an asset’s value over time, while retirement is the process of removing an asset from the company’s balance sheet. It is important to understand both processes in order to properly manage assets in SAP FI-AA Asset Accounting.