You can automatically post asset balance sheet values (APC/ proportional value adjustments) and depreciation from each depreciation area to the corresponding general ledger accounts. You can choose whether values are automatically posted immediately online in Financial Accounting (at present, only possible for one area per chart of depreciation; with two exceptions: investment support areas managed on the liabilities side, and areas solely for revaluation), or are posted automatically at periodic intervals to Financial Accounting.

In addition, you can specify that only depreciation (no APC values) should be posted automatically. This type of posting might be useful for depreciation areas for cost accounting depreciation.

In the definition of a depreciation area, you can specify if the area should manage acquisition and production costs (APC). Areas that do not manage APC are, for example, depreciation areas only for value adjustments shown on the liabilities side (for example, investment support).

In addition, you specify in each depreciation area whether the net book value of assets in the area is allowed to be positive and/or negative. The system rejects any posting that leads to a net book value that contradicts the rule you entered.

Allow negative net book value in all areas

• That have depreciation below zero
• That are intended for value adjustments shown on the liabilities side
• That are derived depreciation areas, and can have negative values because of their calculation formula.

You can allow for depreciation areas to adopt APC, as well as depreciation terms, from another depreciation area. You can also specify that the takeover is mandatory, and that no changes are allowed. In this way, you ensure that two areas are always supplied with the same values when posting, or that two areas are uniformly depreciated.

You cannot specify takeover rules for derived depreciation areas or for the master area.

The type of value that a depreciation area manages is the most important factor in determining its significance. Therefore, you can decide for each depreciation area (under Depreciation or Special Valuation) whether it should manage the following value types:

• Ordinary depreciation
• Special tax depreciation
• Unplanned depreciation
• Transfer of reserves
• Investment Support
• Interest

Please be aware that these specifications only allow the management of certain value types. Whether or not the system actually calculates these value types depends on additional parameters (such as, depreciation keys) or postings.

You have to make the following specifications in depreciation areas that manage replacement values or revaluation:

• Revaluation of APC (replacement values)
• Revaluation of accumulated depreciation (backlog invoice)

The master depreciation area (area 01) has a special significance. This area is generally the area for balance sheet values. This master area is subject to the following restrictions:

• The values of this area are always automatically posted to Financial Accounting.
• During the legacy data transfer, you must always enter values in this area first.
• It is not possible for the master area to adopt values or depreciation terms from other depreciation areas.
• The currency of this area must always match the currency of the its company code.
• You cannot delete the master area.

You can make the following specifications per depreciation area:

You can mark certain depreciation areas for valuation related to group consolidation (Preparations for Consolidation). This has the following results:

• The system represents retirements to and acquisitions from an affiliated company as transfers in the respective group concern asset history sheet.
• These transfers are posted gross (that is, with historical acquisition and depreciation values).