Which two items must be entered first when creating an asset master record?

When creating an asset master record in the SAP system, it is crucial to define certain key attributes that will govern how the asset is treated throughout its lifecycle. The asset class is fundamentally important because it categorizes the asset, determining the type of accounting, asset management procedures, and depreciation rules that apply to it. This categorization is essential for financial reporting and helps ensure consistency in asset handling.

The company code is equally important as it defines the legal entity within which the asset will be managed. It affects everything related to accounting and financial reporting since all financial transactions pertaining to the asset will occur within this company code. Moreover, the company code sets the stage for the accounting principles that will govern the asset's transaction processing, such as the fiscal year variant and postings.

By entering both the asset class and the company code at the outset, users ensure that the asset is correctly configured to adhere to the organizational structure and financial management practices within your SAP system. This foundational step is critical for maintaining accurate financial records and achieving effective asset management in SAP.