SAP ERP Financials and FICO Handbook

248 CHAPTER 6 FICO QUICK TOUR
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on business requirements, you can define the cost center at
either the assets master level or the depreciation cost element
level.
If you want to distribute depreciation expenses to various cost
centers, you can achieve this with a distribution cost center and
distribution cycle.
During the depreciation run, depreciation expenses and CO
interest are always posted to default cost center.
The asset class represents the classification criteria of assets. The
utmost care has to be taken while deciding asset classification.
The asset class controls the number range of assets, account
determination, screen layout of the asset master, and
maintenance level.
Generally, you classify assets on the basis of the presentation of
your financial statement.
The AA module does not differentiate between tangible assets
and intangible assets.
In the AA module, you have the option to maintain complex
assets individually by their components. For example, a desktop
consists of a PC, a monitor, a mouse, and a keyboard. Now here
you have two options: (1) simple assets—treat the entire desktop
package as one asset or (2) complex assets—treat each individual
component as an asset within an asset. In the latter case, you
will maintain individual components of your desktop through
subassets. Subassets have the following advantages: You can
depreciate different components at different rates and you can
track your individual subassets through a subassest’s number.
Assets under construction (AUC) is a special class of tangible
assets. Because of its special nature, it appears separately in
financial statements. You can manage AUC through individual
management and collective management. After completion of
the project, you will settle to assets either through line item
settlement or through distribution.