What is useful life in SAP SBO - SAP Business One?

SAP Term: useful life

• Component: SBO

• Component Name: SAP Business One

• Description: A period during which an asset is expected to be usable for the purpose for which it was acquired. Useful life may, or may not, correspond with the asset's actual physical life, or economic life. Before the end of an asset’s useful life, the asset should be written off completely.

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• Key Concepts: 
  SAP Business One (SBO) is an enterprise resource planning (ERP) software solution designed to help small and medium-sized businesses manage their operations. In SBO, the useful life of an asset is the estimated period of time that the asset will be used for business purposes. This period is used to calculate the depreciation of the asset over its useful life. 
  
  How to use it: 
  The useful life of an asset can be set in SBO when creating a new asset record. The useful life is used to calculate the depreciation of the asset over its useful life. The depreciation amount is then posted to the general ledger as an expense. 
  
  Tips & Tricks: 
  It is important to set a realistic useful life for an asset in SBO, as this will affect the amount of depreciation that is posted to the general ledger. It is also important to review and update the useful life of assets regularly, as this will ensure that the depreciation amounts are accurate. 
  
  Related Information: 
  For more information on setting up and managing assets in SBO, please refer to the SAP Business One Help Center.