current assets

[Former Member]

Hi

What is a Current Asset ? Can we create a sub-asset under the current asset ?

thanks in advance to all gurus

regards

ravi

[Former Member · Accepted solution]

HIii..

In accounting, a current asset is an asset on the balance sheet which is expected to be sold or otherwise used up in the near future, usually within one year, or one business cycle - whichever is longer. Typical current assets include cash, cash equivalents, accounts receivable, inventory, the portion of prepaid accounts which will be used within a year, and short-term investments.

The fixed asset is identified by the main asset number. Each individual part of the asset, or subsequent acquisitions, can be represented by a sub-number. You have to enter separate master data for each sub-number.

You cannot create current asset as sub asset.

Regards,

Aakash

[Former Member]

Current asset is an asset which is easily convertable in to cas and which is going to useful in day to day business transactions.

Examples: Cash,debtors& stock

Cheers,

Sravya

[Former Member]

Hi,

Current Assets are those items which can be converted into cash/cash equivalents in the shortrun.

Inventories, Account Receivables are some of the examples for Current Assets.

We cannot create a sub-asset for the current assets. Sub-Assets are created for the Fixed Assets in the Asset Accounting module of SAP.

Hope this clarifies you.

Regards,

Satish Pasumarthi

[Former Member]

Hello

Current asset are those assets which are not fixed. Example, stocks, amounts recievable from debtors, advances made, cash & banl balances etc.

A sub asset is not applicable for a current asset. It applies to a fixed asset, where a major component which is part of the main asset can be created as a sub asset.

Regards

suresh