SAP Financial Accounting (SAP FI) Practice Exam

At what level are asset classes created, given that they can be shared by several company codes?

1. Company code level

2. Client level

3. Plant level

4. Regional level

The correct answer is: Client level

Asset classes are created at the client level in SAP Financial Accounting. This means that an asset class can be defined once and utilized across multiple company codes within that client. The client level represents the highest organizational unit in the SAP hierarchy, allowing for more efficient management and consistency of data across different entities. Creating asset classes at the client level ensures standardization, as all company codes that fall under the same client can utilize the same asset classification system without the need for duplicates. This structure supports better reporting and analysis, as well as facilitating compliance with accounting standards across various branches of the organization. In contrast, levels such as company code, plant, or regional, are more specific to individual entities or geographical distinctions, which would not allow for the shared use of asset classes across multiple company codes effectively. Therefore, the client level is the most logical and efficient point for defining asset classes in the SAP system.