What is net book value in SAP FI - Financial Accounting?

SAP Term: net book value

• Component: FI

• Component Name: Financial Accounting

• Description: The remaining monetary value that is reported for an asset in Asset Accounting. The system determines the net book value from the difference between the acquisition and production costs and the depreciation on the asset at a given point in time or at the end of the useful life of the asset.

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• Key Concepts: 
  Net book value is a term used in SAP Financial Accounting (FI) to refer to the value of an asset after depreciation has been taken into account. It is calculated by subtracting the accumulated depreciation from the original cost of the asset. 
  
  How to use it: 
  Net book value is used to determine the current market value of an asset. This information can be used to make decisions about whether or not to purchase or sell an asset, as well as for tax and accounting purposes. 
  
  Tips & Tricks: 
  It is important to keep track of the net book value of assets over time, as this can help you make informed decisions about when to buy or sell assets. Additionally, it is important to ensure that the net book value is updated regularly in order to accurately reflect the current market value of the asset. 
  
  Related Information: 
  Net book value is closely related to other accounting terms such as depreciation, amortization, and impairment. It is also important to understand how these terms interact with each other in order to accurately calculate the net book value of an asset.