What is aggregated balance in SAP FS-AM-IM-BC - Balances?

SAP Term: aggregated balance

• Component: FS-AM-IM-BC

• Component Name: Balances

• Description: A balance for which a special account balance is updated as carryforward balance in addition to the transaction figures of the turnover class or account. This means that all prior turnovers in this turnover class can be included in the balance formation when the balance is being calculated.

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• Key Concepts: 
  Aggregated balance is a term used in the Financial Accounting (FI) component of SAP. It is a type of balance sheet account that is used to summarize the balances of multiple accounts into one single account. This allows for easier and more efficient reporting and analysis. 
  
  How to use it: 
  In the Financial Accounting (FI) component of SAP, aggregated balance accounts are used to summarize the balances of multiple accounts into one single account. This can be done by creating an aggregated balance account in the Chart of Accounts and then assigning the individual accounts to it. Once this is done, the balances of all the individual accounts will be automatically summarized into the aggregated balance account. 
  
  Tips & Tricks: 
  When creating an aggregated balance account, it is important to ensure that all the individual accounts assigned to it have similar characteristics. This will ensure that the summarized balance accurately reflects the total of all the individual accounts. 
  
  Related Information: 
  The FS-AM-IM-BC Balances component of SAP also includes other types of balance sheet accounts such as open item management and clearing accounts. These can be used in conjunction with aggregated balance accounts to provide a more comprehensive view of a company’s financial position.