In Asset Accounting, you depict parallel valuation methods using the depreciation (valuation) area. This means that you have to define a depreciation area for each of your accounting principles.

To depict a parallel valuation method in Asset Accounting, you can use all three procedures: additional accounts, an additional ledger or an additional company code.

In Asset Accounting, accounting principles differ from one another mainly in the following points:

• Calculation of depreciations
• Activation of assets created in-house

For each depreciation are – i.e. for each accounting principle – you define specific depreciation rules, useful life and so on. The depreciations are then calculated and posted in parallel for each depreciation area using the depreciation rules that you have defined. Depending on the procedure you have chosen, the postings are made to either additional accounts, to an additional ledger or to an additional company code.

To activate assets produced in-house, you can use Investment Management (IM). Here, when settling investment measures by depreciation area, you can define the percentage to be activated and the part to be shown in the non-operating expenses.

You can use the preliminary settlement to settle cost items that are not to be activated, for example cost centers. You cannot settle these preliminary values to the asset/asset under construction. They are displayed for each depreciation area in the costs.