We have a database that stores date and time as separate values in
different
fields. I am wondering when it could be useful? I used to store datetime in
one field as a result of 'now()' function.

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In addition to the group by date thing that was already mentioned, consider
the following,

where date = '20020228'
is a lot more user freindly than
where datetime between '02-28-2002 00:00'  and '02-28-2002 23:59'
or
where date(datetime) =  '20020228'

where date between '20020201' and '20020205'
is a lot more user freindly than
where datetime between '02-01-2002 00:00'  and '02-05-2002 23:59'

etc.

Also, depending on what data you are collecting, it may be possible that
you know the date but not the time.  With separate fields, you can leave
one as null.

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