True or False: An asset master record is always assigned to an asset class.

The statement is true because in SAP S/4HANA, every asset master record is indeed assigned to an asset class. Asset classes serve as a categorization mechanism for assets, which helps in managing and reporting on them effectively. Each asset class defines the attributes and settings relevant to a particular group of assets, including depreciation methods, useful life, and other parameters relevant to asset accounting. This structure ensures consistency and facilitates the application of specific rules associated with different types of assets.

The assignment to an asset class is fundamental for the asset’s lifecycle management, ensuring that transactions and reporting are standardized according to the predefined parameters of that class. This relationship between asset master records and asset classes is critical for accurate financial reporting, compliance, and control within the asset accounting process.