What is write-down in SAP SRD-FIN-FA - FIN-Fixed Assets?

SAP Term: write-down

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: An extra depreciation charge against a fixed asset that was not originally planned. For example, a write down may occur because a fixed asset has been used more than was originally envisaged, or the fixed asset has suffered damage or impairment.

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• Key Concepts: 
  Write-down is an accounting term used to describe the reduction of the book value of an asset. In SAP, write-down is used to reduce the value of a fixed asset in the SAP system. This is done when the asset has become obsolete or has been damaged beyond repair. 
  
  How to use it: 
  In SAP, write-down is done by entering a negative value in the write-down field in the Fixed Assets (SRD-FIN-FA) module. This will reduce the book value of the asset and will be reflected in the financial statements. 
  
  Tips & Tricks: 
  When writing down an asset, it is important to ensure that all relevant information is included in the write-down entry. This includes the date of write-down, reason for write-down, and amount of write-down. 
  
  Related Information: 
  Write-down can also be used to reduce the value of inventory items in SAP. This is done by entering a negative value in the write-down field in the Inventory Management (SRD-MM) module.