What is fixed asset under construction in SAP SRD-FIN-FA - FIN-Fixed Assets?

SAP Term: fixed asset under construction

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: A fixed asset that is in the process of being completed or that has not yet been placed into service at the time the balance sheet is being produced. Generally, the asset is being self-constructed.

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• Key Concepts: 
  Fixed asset under construction is an asset that is not yet ready for use, but is in the process of being built or acquired. It is a type of fixed asset that is not yet in service and has not yet been put into production. It is recorded in the company's books as an asset, but it does not have any value until it is completed and put into service. 
  
  How to use it: 
  Fixed assets under construction are typically recorded in the company's books as an asset, but they do not have any value until they are completed and put into service. The company must track the progress of the asset and record any costs associated with its construction or acquisition. The company must also record any changes in the estimated cost of the asset over time. 
  
  Tips & Tricks: 
  When recording fixed assets under construction, it is important to track all costs associated with the asset, including labor, materials, and other expenses. It is also important to keep track of any changes in the estimated cost of the asset over time. This will help ensure that the company has an accurate record of the asset's value when it is completed and put into service. 
  
  Related Information: 
  The SAP component SRD-FIN-FA FIN-Fixed Assets provides a comprehensive solution for managing fixed assets under construction. This component includes features such as tracking costs associated with the asset, recording changes in estimated cost over time, and providing reports on fixed assets under construction.