What is 'transfer of reserves' in SAP FI-AA - Asset Accounting?

transfer of reserves - Overview

• Component: FI-AA

• Component Name: Asset Accounting

• Description: Transfer of hidden reserves, that were detected due to the sale of assets, to replacement assets. The profits from the sale are treated as a passive value adjustment of the acquisition cost of the newly acquired replacement assets. If such reserves are not transferred in the year in which they are detected, because there are no appropriate new acquisitions, then a reserve can be created for the affected year. This way, the gain from the sale of the asset does not count as profit. These reserves have to be transferred in the next few years to assets acquired during this time period.

transfer of reserves - Details

• 
  Key Concepts: 
  Transfer of reserves is a process in SAP FI-AA Asset Accounting that allows for the transfer of funds from one asset to another. This process is used when an asset is sold or disposed of, and the proceeds from the sale are used to purchase a new asset. The transfer of reserves is also used when an asset is revalued, and the difference between the old and new value is transferred to another asset. 
  
  How to use it: 
  In order to transfer reserves in SAP FI-AA Asset Accounting, you must first create a transfer document. This document will contain the details of the transfer, such as the source and target assets, as well as the amount to be transferred. Once the document is created, you can then execute the transfer by entering the document number into the system. 
  
  Tips & Tricks: 
  When creating a transfer document, it is important to ensure that all of the details are correct. This includes ensuring that the source and target assets are correct, as well as ensuring that the amount to be transferred is accurate. Additionally, it is important to ensure that all of the necessary documents are attached to the transfer document before executing it. 
  
  Related Information: 
  For more information on transferring reserves in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact