BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Scrap value
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Depreciation start
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Asset description
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Useful life
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Detailed explanation-1: -What is Depreciation Area in SAP? A depreciation area in SAP contains the parameters required to evaluate an asset. It is defined by a two-digit numeric key. You may use more than one depreciation area to represent different asset valuations for cost accounting or legal reporting.
Detailed explanation-2: -SAP IMG path to define depreciation area is as follows: SPRO → SAP Reference IMG → Financial Accounting (New) → Asset Accounting → Valuation → Depreciation Areas → Define Depreciation Areas.
Detailed explanation-3: -You use depreciation areas to calculate different values in parallel for each fixed asset for different purposes. For example, you may require different types of values for the balance sheet than for cost accounting or tax purposes.
Detailed explanation-4: -The update depends on the option you choose for how the depreciation area posts to the general ledger: You can post the depreciation areas in G/L accounting either in realtime (parallel depreciation in the ledger approach) or immediately (parallel depreciation in the account approach).