What is 'abandonment' in SAP FS-AM-CM-AC - Account?

abandonment - Overview

Component: FS-AM-CM-AC
Component Name: Account
Description: The explicit or implicit relinquishing of a claim on inactive or dormant accounts or on other forms of non-material investments and the resultant economic benefit. &EXAMPLE& Unclaimed credit balance of a dormant account Unclaimed dividend and interest payments Bank transfers Cash payments Due insurance policies

Term: Abandonment
Component: FS-AM-CM-AC Account
Definition: In SAP FS-AM (Funds Management - Commitment Management - Account), abandonment refers to the process of formally writing off or discontinuing a commitment or an asset that is no longer usable or relevant. It means that the asset or commitment is removed from active accounting and reporting because it is considered lost, obsolete, or no longer productive.
How It’s Used: Abandonment is used in scenarios where an asset or a commitment cannot be recovered or utilized anymore, such as damaged equipment, obsolete technology, or canceled projects. In SAP FS-AM, abandonment ensures that these items are properly accounted for by removing their value from the books, preventing further depreciation or commitment tracking. This process helps maintain accurate financial statements and commitment control by reflecting the true status of assets and commitments.
Important Configuration:
Define abandonment reasons and processes in the FS-AM customizing settings under Commitment Management.
Use transaction codes like FSE2 (Change Commitment Item) or specific abandonment-related transactions depending on the asset or commitment type.
Ensure proper integration with Asset Accounting (FI-AA) for asset abandonment postings.
Set up relevant posting keys and document types to handle abandonment entries correctly.
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