Define Depreciation Areas
In this step, you define your depreciation areas. You can change the
definition of the depreciation areas taken over from the standard chart
of depreciation. You can also add additional depreciation areas.
You can define depreciation areas for the parallel valuation of fixed assets for a particular purpose. This is done using
"real" depreciation areas and
derived depreciation areas. The
values in the derived depreciation area are calculated from the values
of two or more real areas, using a formula you define. The system does
not permanently store the values from the derived depreciation area. They are determined dynamically at the time of the request.
Otherwise, derived depreciation areas have the same system functions
as real areas. Most important, they can be evaluated in the same way,
and posted to the general ledger (for example, for showing special reserves).
You must have created at least one
chart of depreciation
of your own.
The country-specific charts of depreciation (for example, 0US for the
USA) contain fully defined standard depreciation areas, for example, for
- cost-accounting depreciation
These standard depreciation areas provide a reference. From the point
of view of SAP, this reference meets all requirements for accounting
and legal considerations. You always have to copy one of the standard
depreciation areas in order to create a new depreciation area. Therefore, you should delete standard depreciation areas only after
careful consideration. It is usually better to avoid deleting them, and instead set them to inactive in the asset class.
1. Check the definition of the depreciation areas that were created by
reference to a standard chart of depreciation (in the detail screen).
2. If necessary, define new depreciation areas, by copying an already existing depreciation area.
3. Specify the characteristics of your depreciation area in the detail screen:
a) Specify the type of value management that is allowed.
You must allow APC and positive remaining book value in all areas in
which you want to depreciate capitalized asset balances (the usual
procedure). Allow negative net book values in depreciation areas that
depreciate below zero, and in areas for managing value adjustments
posted on the liabilities side (special reserves). The second of these also are not allowed to manage APC or net book values.
Specify if the asset values/depreciation of the area should be posted
automatically to the general ledger or to cost elements (asset balance sheet values: online/periodic).
The system can only post asset balance sheet values from one depreciation area in online. Generally, this area is the book
depreciation area. Other areas (for special reserves or cost accounting depreciation) can be posted automatically to the general
ledger using background processing (application menu: Periodic processing),
when the automatic posting indicator is set. Depreciation can be posted only periodically.
You specify the reconciliation accounts and offsetting accounts for
automatic posting in other steps in the implementation process.
- If you need depreciation areas that derive their values from other
depreciation areas, you can define derived depreciation areas. For
this purpose, enter the depreciation areas that are to form the basis
for its values. Enter whether the values from these areas should be
included as positive or negative values in the formula. Make sure that the indicator "real area" is not set.
The derived depreciation area can be for reporting only (that is, its
values are not posted to reconciliation accounts). In this case, you
can specify that the system does not perform a value check for this derived area (indicator: "for reporting purposes only").
4. Check the standard type of the depreciation area.
The depreciation areas in the standard chart of depreciation all have a
type. When you create a chart of depreciation, the system takes over
these types from the referenced standard chart of depreciation. For
example, the type of depreciation area 01 is "book depreciation."
If you are also using the IM (Investment Management) component, the
depreciation area with type 07 (cost accounting valuation) has special
importance. At the present time, you cannot transfer capitalization
differences as nonoperating expense to this depreciation area. This
limitation is required in order to make sure that all non-capitalized debits on a capital investment measure are accounted for in
It is also possible to delete a depreciation area. The depreciation area to be deleted must meet the following requirements:
- It cannot be the master depreciation area (01).
- The depreciation area cannot be a reference for another area (for acquisition values, depreciation terms).
- The depreciation area cannot be part of the calculation rule for a
derived depreciation area. In this case, you have to change the calculation rule for the derived depreciation area in question.
- The depreciation area cannot be defined for automatic posting of its values to the general ledger.
The system then deletes the selected depreciation area in the chart of
depreciation and in the valuation specifications for all affected assets and asset classes.