What is dunning level?
Dunning levels are defined at the time of creating of our dunning procedure.
Dunning level in sap means how often we will be notifying our business partner about their overdue outstanding balance. Dunning can be done up to a maximum 9 level (including one legal dunning level).
Dunning levels can be differentiated with there text. It defines the urgency of the notice to our business partner.
How a sub ledger is linked to a general ledger?
Sub ledgers like accounts payable, accounts receivable and asset accounting are created to obtain detail transaction of vendor, customer and asset transactions respectively.
Sub ledgers are linked to general ledgers by an assignment of reconciliation Accounts to its respective master i.e. for accounts payable we need to create a reconciliation account and assign it to the vendor master, for accounts receivable we create reconciliation account and assign it to the customer master and similarly we do it for asset master.
Through this assignment, data from sub ledger accounts will be transferred to the reconciliation ledger by which we can view balance entries in reconciliation account and line item entry in sub ledger accounts.
What is an asset class?
Asset class in sap is defined as the main type of asset that a company will be requiring for its business. It controls various parameter of creating asset master and the default values needed for an asset master.
Asset masters are created under one asset class. We can not create asset master without an asset class.
Examples of asset classes are;
Under each asset class we create asset master. Like under building asset class we create building 1, building 2 asset master.
What is an asset master?
Asset master record all information about a particular asset. Asset masters are created under one asset class. If you have 5 buildings then you create building as an asset class and under that create 5 different asset masters for each building. We post transactions to asset master not to an asset class.
What is depreciation area and how many depreciation areas can a company code have?
Under depreciation area you need to calculate depreciation for the company code. Different depreciation areas are created for different types of depreciation calculations. Generally we create depreciation area for book depreciation, cost depreciation, tax depreciation and so on.
We can create up to 99 depreciation area under one company code.