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Handling Fixed Asset Depreciation in SAP Asset Accounting

SAP Asset accounting module helps companies manage fixed assets throughout the life cycle of an asset from Acquisition to retirement. The module integrates with other modules such as FI, CO, and PS.

Chart of Depreciation

Chart of depreciation in SAP Fixed Asset is an umbrella under which all fixed asset settings and configurations are maintained.

Chart of depreciation contains a list of depreciation area. Depreciation area is unit in which all the rules are maintained to calculate values. Each depreciation area is used to meet different asset reporting requirements such as legal, tax, or cost accounting. Each company code is assigned to one chart of depreciation. SAP delivers standard chart of depreciation, which can be used as reference, for most of the countries. You can copy the chart of depreciation and delete or add depreciation according to specific requirements.

Generally one chart of depreciation for each country should be enough.

Real vs Derived depreciation area

Real depreciation area is commonly used depreciation area that actually stores values in database. Derived depreciation areas do not store values in database. The values are calculated using mathematical formula based on 2 or more real depreciation area.

For example, you can use derived depreciation area to calculate difference between Local GAAP and IFRS. Derived depreciation areas should be allowed to have all values (e.g. Acquisition, NBV etc).

Use of Cross-System Depreciation Area

Cross System Depreciation Area can be used to assign depreciation areas from different Chart of Depreciation to a single key (Called Cross-System Depreciation Area). This setting will give these areas same meaning across the system. Cross System Depreciation area has no control parameters. It relies on the parameters of Local assigned Depreciation area. Use of Cross System Areas also enables to assign different Transfer methods to the areas. This can be useful if you want to transfer depreciation areas differently (Net, Gross etc).


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