What is nonmonetary item in SAP FI - Financial Accounting?

SAP Term: nonmonetary item

• Component: FI

• Component Name: Financial Accounting

• Description: An asset or liability whose value fluctuates according to market conditions and is therefore affected by inflation. &EXAMPLE& Land, fixed assets, and stock investments are all considered to be nonmonetary items because although their value can be expressed at any given time in any currency, their true value fluctuates according to market conditions.

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• Key Concepts: 
  A nonmonetary item is an item in SAP Financial Accounting (FI) that does not have a monetary value. This type of item is used to track non-financial information, such as the number of items in inventory or the number of employees in a company. Nonmonetary items are also used to track the status of a transaction, such as whether it has been approved or not. 
  
  How to use it: 
  Nonmonetary items can be used in SAP FI to track non-financial information. For example, they can be used to track the number of items in inventory or the number of employees in a company. They can also be used to track the status of a transaction, such as whether it has been approved or not. 
  
  Tips & Tricks: 
  When using nonmonetary items in SAP FI, it is important to ensure that the data entered is accurate and up-to-date. This will help ensure that the information tracked is accurate and up-to-date. Additionally, it is important to ensure that all nonmonetary items are properly categorized so that they can be easily identified and tracked. 
  
  Related Information: 
  Nonmonetary items are closely related to other SAP FI terms, such as financial items and cost elements. Financial items are items that have a monetary value, while cost elements are used to track costs associated with a transaction. Additionally, nonmonetary items can be linked to other SAP modules, such as Materials Management (MM) and Sales & Distribution (SD).