What is inflation adjustment interval in SAP FI - Financial Accounting?

SAP Term: inflation adjustment interval

• Component: FI

• Component Name: Financial Accounting

• Description: The length of time between inflation adjustments of, for example, G/L accounts, assets, or inventory. &EXAMPLE& Government regulations may require you to adjust your accounts for inflation at the end of every month, in which case the interval is the month.

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• Key Concepts: 
  Inflation adjustment interval is a feature of SAP Financial Accounting (FI) that allows users to adjust the value of an asset or liability for inflation. This adjustment is based on the inflation rate of a given country or region. The adjustment interval can be set to a specific period, such as monthly, quarterly, or annually. 
  
  How to use it: 
  In SAP FI, users can set up an inflation adjustment interval by navigating to the “Inflation Adjustment Interval” tab in the “Financial Accounting” menu. From there, users can select the desired interval and enter the inflation rate for the selected country or region. 
  
  Tips & Tricks: 
  It is important to note that the inflation adjustment interval should be set up before any assets or liabilities are created in SAP FI. This will ensure that all assets and liabilities are adjusted for inflation correctly. 
  
  Related Information: 
  For more information on setting up an inflation adjustment interval in SAP FI, please refer to the official SAP documentation here: https://help.sap.com/viewer/f8d9f3c7a2e14b6f9a7d3c8b2e5f1e6a/1709%20FPS1/en-US/d7c9f3c7a2e14b6f9a7d3c8b2e5f1e6a.html