What is useful life in SAP (SRD-FIN-FA - FIN-Fixed Assets)?

SAP Term: useful life

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: The length of time a fixed asset is expected to be used.

Smart SAP Assistant

• Key Concepts: 
  The useful life of an asset is the period of time over which it is expected to be used by the company. It is used to calculate the depreciation of the asset and is determined by the company’s accounting policies. In SAP, the useful life of an asset is defined in the Asset Master Record. 
  
  How to use it: 
  In SAP, the useful life of an asset is defined in the Asset Master Record. To set up a useful life for an asset, go to the Asset Master Record and select “Useful Life” from the drop-down menu. Enter the number of years that you expect the asset to be used and click “Save”. 
  
  Tips & Tricks: 
  It is important to remember that the useful life of an asset can be changed at any time. If you need to adjust the useful life of an asset, simply go back to the Asset Master Record and update the number of years. 
  
  Related Information: 
  For more information on setting up a useful life for an asset in SAP, please refer to SAP Help documentation on Fixed Assets (SRD-FIN-FA).