What is 'imputed interest' in SAP SRD-FIN-FA - FIN-Fixed Assets?

imputed interest - Overview

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: The interest that would have been earned if the money had been invested in capital markets intead of being tied up in fixed assets.

imputed interest - Details

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  Key Concepts: 
  Imputed interest is a concept used in SAP Fixed Assets (SRD-FIN-FA) to calculate the cost of an asset. It is the interest that is assumed to have been paid on the capital invested in the asset. This interest is calculated based on the purchase price of the asset and the expected useful life of the asset. 
  
  How to use it: 
  In SAP Fixed Assets, imputed interest is used to calculate the cost of an asset. The purchase price of the asset and its expected useful life are used to calculate the imputed interest. This interest is then added to the purchase price of the asset to determine its total cost. 
  
  Tips & Tricks: 
  When calculating imputed interest, it is important to consider both the purchase price of the asset and its expected useful life. This will ensure that you are accurately calculating the cost of the asset. 
  
  Related Information: 
  For more information on imputed interest, please refer to SAP's documentation on Fixed Assets (SRD-FIN-FA). Additionally, you can consult with your SAP consultant for more information on how to use imputed interest in your organization.