What is transfer of reserves in SAP SRD-FIN-FA - FIN-Fixed Assets?

SAP Term: transfer of reserves

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: The gain from an asset sale which reduces the acquisition costs of newly acquired fixed assets. In some countries tax laws permit the buildup of reserves for particular business transactions, such as the sale of undervalued fixed assets. In subsequent years, these reserves can be deducted from the acquisition and production costs of the fixed assets that are newly acquired or created by the company.

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• Key Concepts: 
  Transfer of reserves is a process in SAP Fixed Assets (SRD-FIN-FA) that allows users to transfer the value of an asset from one asset to another. This process is used when an asset is sold, exchanged, or otherwise disposed of, and the value of the asset needs to be transferred to another asset. 
  
  How to use it: 
  To transfer the value of an asset from one asset to another, the user must first enter the details of the transaction in the Asset Accounting (FI-AA) module. Once the details have been entered, the user can then use the Transfer of Reserves function in SRD-FIN-FA to transfer the value from one asset to another. The user must enter the details of both assets, as well as any other relevant information such as depreciation rates and dates. 
  
  Tips & Tricks: 
  When transferring reserves from one asset to another, it is important to ensure that all relevant information is entered correctly. This includes entering the correct depreciation rates and dates for both assets. Additionally, it is important to ensure that all transactions are properly documented and recorded in order to maintain accurate records. 
  
  Related Information: 
  For more information on Transfer of Reserves in SAP Fixed Assets (SRD-FIN-FA), please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.