Question

You are asked to explain the assets under construction functionality in SAP S/4HANA. What should you highlight?

There are 2 correct answers to this question.

1) It is possible to post special tax depreciation and investment support for assets under construction.
2) It is impossible to use assets under construction with Investment Management.
3) It is possible to post credit memos, even after assets under construction are fully capitalized.
4) It is possible to calculate and post depreciation in the balance sheet depreciation area for assets under construction.

Answer 1

In SAP S/4HANA, you can post special tax depreciation for assets under construction, but it is not possible to calculate and post depreciation for them until they are fully capitalized. Integration with Investment Management is possible, contrary to one of the provided statements.

Step-by-step explanation:

To explain the assets under construction functionality in SAP S/4HANA, two correct answers are highlighted:

1. It is possible to post special tax depreciation and investment support for assets under construction. This allows companies to benefit from various fiscal incentives during the construction phase of an asset.
2. It is not possible to calculate and post depreciation in the balance sheet depreciation area for assets under construction. Depreciation typically starts only once the asset is fully capitalized and put into use.

The two incorrect statements are:

1. It is not true that assets under construction can not be used with Investment Management. SAP S/4HANA allows integration with Investment Management for more effective tracking and control of capital expenditure projects.
2. While it is possible to post credit memos for assets, after an asset under construction is fully capitalized, the treatment of subsequent credit memos may vary based on accounting practices and configuration within SAP.