What is individual spread in SAP FS-AM - Account Management?

SAP Term: individual spread

• Component: FS-AM

• Component Name: Account Management

• Description: The value that the system adds or subtracts from the exchange rate, depending on the credit standing of a debtor. The individual spread can depend on the following: The customer group to which a business partner belongs. The ordering location where the transaction is executed. The communication method used for submitting the transaction. The individual spread enables the bank to use individual exchange rates in business transactions that require a currency exchange. The individual spread can be assigned externally or internally.

Smart SAP Assistant

• Key Concepts: 
  Individual spread is a feature of the FS-AM Account Management component of SAP. It allows users to spread the cost of an asset over multiple accounting periods. This helps to reduce the impact of large investments on a company’s financial statements. 
  
  How to use it: 
  To use individual spread, users must first set up the asset in the system. This includes entering the asset’s purchase price, depreciation rate, and expected useful life. Once this is done, users can then select the individual spread option when creating a new asset in the system. This will allow them to spread the cost of the asset over multiple accounting periods. 
  
  Tips & Tricks: 
  When using individual spread, it is important to remember that the total cost of the asset must be spread evenly over all accounting periods. This means that if an asset has a purchase price of $100,000 and is spread over five years, each year’s cost must be $20,000. 
  
  Related Information: 
  For more information on individual spread and other features of FS-AM Account Management, please refer to SAP’s official documentation. Additionally, there are many online resources available that provide detailed tutorials and best practices for using this component of SAP.