You use the reference chart of depreciation for Colombia to manage the various local legal requirements for the depreciation and valuation of assets. Additional depreciation areas have been created for managing revaluation and parallel currencies.

You use depreciation area 01 for historical acquisition and production costs.

You use depreciation area 02 for the inflation adjustment values and depreciation area 03 for the book depreciation after inflation adjustment.

You use depreciation areas 04–06 for manual adjustments of the tax depreciation values.

Both hard currency and group currency are customized in Financial Accounting. Values in Asset Accounting for the hard currency and group currency are calculated using the values in depreciation areas 01–05. The values in depreciation areas 01–05 are then used to calculate depreciation areas 11–15 for hard currency and depreciation areas 21–25 for group currency.

You use depreciation area 07 to adhere to the guidelines of US GAAP. The values are in the local currency.