The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets.
Asset Accounting and its interaction with the General Ledger module. The article aims to cover intricacies involved with respect to Asset Accounting to minimize the challenges faced during the set-up.
The usage of Asset Accounting is not just restricted in S/4 HANA. It can be used with ECC system also (from EHP 7 onwards), provided New GL is activated. However, the difference is while it is mandatory to activate new Asset Accounting in S/4, it is an optional feature in ECC. Additionally, AA in S/4 provides additional features that are not available in ECC.
Before configuring Asset Accounting, it is important to list out all the accounting principles that the organization desires to follow while preparing its financials and to determine whether each of these accounting principles would translate into separate parallel ledgers.