What is valuation method in SAP FI-AA - Asset Accounting?

SAP Term: valuation method

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The method that determines how an asset is valued during its useful life. The most important parameter of a valuation method is the depreciation key for the automatic calculation of planned depreciation. Other parameters include the useful life or period control.

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• Key Concepts: 
  Valuation method is a feature of SAP FI-AA Asset Accounting that allows users to determine the value of an asset. It is used to calculate the value of an asset at a given point in time, such as the end of a fiscal year. The valuation method can be based on either historical cost or current market value. 
  
  How to use it: 
  In order to use the valuation method, users must first define the valuation class for the asset. This is done by entering the relevant data in the asset master record. Once this is done, users can then select the appropriate valuation method for the asset. This can be done in the asset master record or in the asset class. 
  
  Tips & Tricks: 
  It is important to remember that different assets may require different valuation methods. For example, some assets may need to be valued using historical cost while others may need to be valued using current market value. Additionally, it is important to ensure that all assets are properly classified and that the correct valuation method is selected for each asset. 
  
  Related Information: 
  For more information on SAP FI-AA Asset Accounting and its valuation methods, please refer to SAP's official documentation or contact your local SAP representative.