Use

You can specify the following features for a depreciation area at the chart of depreciation level (Customizing:  Valuation Depreciation Areas ).

Features

Posting Values from Depreciation Area to General Ledger

You can automatically post asset balance sheet values (APC/ proportional value adjustments) and depreciation from eachdepreciation 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.

Managing Certain Values

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

Derived Depreciation Areas

You enter a formula that defines the derived depreciation area (see Derived Depreciation Areas ).

Takeover Between Depreciation Areas

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.

Graphic: Takeover Rules

Different Types of Depreciation/Special Values

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:

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.

Replacement Values/Revaluation

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

For more information, see Special Valuation .

Master Depreciation Area

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:

You can make the following specifications per depreciation area:

Corporate Group Depreciation Areas

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

For more information, see Requirements for Consolidation