What is amortization in SAP SRD-FIN-FA - FIN-Fixed Assets?

SAP Term: amortization

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: A decrease in the value of intangible assets caused by use, obsolescence, and time. In accounting it is an annual amount charged as an expense over the life of the asset.

Smart SAP Assistant

• Key Concepts: 
  Amortization is a process used in accounting to spread out the cost of an asset over its useful life. In SAP, amortization is used to calculate the depreciation of fixed assets over time. This process is used to reduce the value of an asset on the balance sheet and to recognize the expense associated with the asset. 
  
  How to use it: 
  In SAP, amortization is used to calculate the depreciation of fixed assets over time. This process is done by entering the asset’s acquisition cost, estimated useful life, and estimated salvage value into the system. The system will then calculate the depreciation amount for each period and post it to the general ledger. 
  
  Tips & Tricks: 
  When entering an asset into SAP, it is important to enter accurate information about its acquisition cost, estimated useful life, and estimated salvage value. This will ensure that the system calculates accurate depreciation amounts for each period. 
  
  Related Information: 
  For more information about amortization in SAP, please refer to the SAP Help Portal or contact your local SAP support team.