What is useful life in SAP FI-AA - Asset Accounting?

SAP Term: useful life

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The reasonable length of time expected for using the asset, depending on the individual depreciation area. Within this time period, the asset should be written off completely. The actual technical life of the asset can exceed this time period. The useful life expectancy for the various asset types is defined in depreciation tables.

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• Key Concepts: 
  The useful life of an asset in SAP FI-AA Asset Accounting is the period of time during which the asset is expected to be used and generate economic benefits for the company. It is used to calculate the depreciation of the asset over its lifetime. 
  
  How to use it: 
  The useful life of an asset is set when the asset is acquired and can be changed at any time. The useful life of an asset can be set in the master data of the asset or in the depreciation area. The useful life of an asset affects the depreciation calculation, so it is important to set it correctly. 
  
  Tips & Tricks: 
  When setting the useful life of an asset, it is important to consider factors such as expected usage, expected wear and tear, and expected technological obsolescence. It is also important to consider any legal requirements or industry standards that may affect the useful life of an asset. 
  
  Related Information: 
  For more information on setting the useful life of an asset in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.