Asset class Land separate & building separate ( for 1 asset)

Question

Warm Greetings to All Group Members
Require Best practice solution
Current Scenario Our company Purchased the building in 2009 and In SAP system Building was created, posted to asset class Building with the depreciation for 40 Years
Our Audit department is requesting our Finance department to show two assets separate as
1) land with useful life 40 Years with value
2) Building with useful life Zero with value
Note
current The posted asset in sap Has value ( Building + land)
2.Our company is state transport company
Please suggest me/as what is the best practice
Should i create a new asset class separate as land and move the value of building to land
Your Early Reply will be appreciated
regards
shamul heq

Answer 1

Hi Shamul heq
If you want to manage land and building separately, you need to create new asset class for land beside asset class for building. Then create new land asset master data under land asset class and transfer value of the land from original building asset to newly created land asset.
Alternatively, case of no necessary to manage land seperately, you can simply transfer the value of land to sub-number asset of the building asset. In this way, you can manage the building and the land as one asset in SAP system.
Regards
George