SAP Financial Accounting (SAP FI) Certified Application Associate Practice Exam

What happens when you set up a new asset class?

1. It requires validation of prior year activities

2. It prompts for specification of account determination

3. It automatically links to a fiscal year variant

4. It enables multiple depreciation methods

The correct answer is: It prompts for specification of account determination

When setting up a new asset class in SAP FI, it is essential to specify account determination. This process involves defining which general ledger accounts will be used for various transactions associated with assets within that class. The account determination process ensures that asset acquisition, depreciation, and disposal transactions are correctly recorded in the appropriate financial accounts, which is crucial for accurate financial reporting and compliance. Specifying account determination is a critical step because it establishes how the system will post transactions related to the new asset class. Without this specification, the posting cannot occur correctly, which would lead to inaccuracies in the financial data and potentially disrupt reporting and analysis. Other options such as validating prior year activities, linking to a fiscal year variant, or enabling multiple depreciation methods do not directly occur upon setting up a new asset class. Validation related to prior years typically happens during reporting or closing processes, while links to fiscal year variants are part of configuration settings not directly tied to asset class creation. Multiple depreciation methods might be configured for an asset class, but this is not an automatic action taken upon the setup of the class itself. Rather, it requires additional configuration steps after the initial setup has been completed.