You might have capitalization rules that are different from those in the book depreciation area for different calculation purposes (such as group consolidation). This may be useful, for example, for the capitalization of freight costs. You can use the transaction for posting asset acquisitions to enter different APC amounts in each depreciation area (function: Areas). The only requirement is that the depreciation area cannot have mandatory takeover of APC from another depreciation area (In Customizing for Asset Accounting, choose Specify Transfer of APC Values).

There are two possibilities at the time an asset is capitalized:

• A larger amount is capitalized in the book depreciation area, than in another depreciation area that is also to be posted to the general ledger.

• A smaller amount is capitalized in the book depreciation area, than in another depreciation area that is also to be posted to the general ledger.

The system reflects each of these situations by its different treatment of the difference in capitalization amounts.

The following graphic shows all possible capitalization scenarios using the depreciation areas required for group consolidation. The local book depreciation area is posted automatically online. The "corporate valuation" area (group area in local currency) is automatically posted periodically, with different capitalization percentage rates. The graphic shows the amounts posted to the respective accounts (balanced) at the asset acquisition. The percentage rates in the first column are the capitalization percentage rates in the respective depreciation areas.

The two depreciation areas, local book depreciation and corporate valuation, have to have different APC control accounts in their account allocation. The payables account for the local book depreciation area corresponds in its function to the APC clearing account in the account allocation of the corporate valuation area. The expense account in the local book depreciation area, for example, is the freight cost account. The corresponding account in the account allocation of the corporate valuation area is the "nonoperating expense" account.

The system posts the difference between book depreciation APC and other APC to the "nonoperating expense" account. You have to enter this account in the account allocation of the depreciation area that is different from book depreciation (for example, the group depreciation area in local currency). When you post the acquisition, the system creates only one corresponding asset line item for the assets subsidiary ledger. The actual posting to the general ledger takes place when the values from this area are posted periodically.