What is impairment event in SAP FS-BA-PM - Processes and Methods?

SAP Term: impairment event

• Component: FS-BA-PM

• Component Name: Processes and Methods

• Description: An application event that is derived from operational events, and that triggers the determination of the impairment attributes for a contract. Examples of triggering operational events include the creation of a new contract, a default in payment or a change in a business partner’s rating. When impairment attributes are imported using enterprise services, impairment events are also generated from analytical events. These are used to trigger the redetermination of the impairment attributes in the event of a correction or reversal.

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• Key Concepts: 
  An impairment event is a situation in which the value of an asset or liability has decreased significantly. This decrease in value is known as an impairment loss. In SAP, an impairment event is recorded in the Financial Statement (FS) Business Area (BA) Project Management (PM) processes and methods. 
  
  How to use it: 
  When an impairment event occurs, the asset or liability must be revalued to reflect the new value. This revaluation is done by entering a new value into the FS-BA-PM process and method. The new value will then be used to calculate the impairment loss. 
  
  Tips & Tricks: 
  When recording an impairment event, it is important to ensure that the new value accurately reflects the current market value of the asset or liability. This will ensure that the impairment loss is calculated correctly. 
  
  Related Information: 
  The FS-BA-PM process and method can also be used to record other financial events such as write-downs, write-offs, and reversals. Additionally, this process and method can be used to record changes in foreign exchange rates and other financial transactions.