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Object documentationDepreciation Areas - Setup Window Locate this document in the navigation structure

 

Use this window to create, update, and view depreciation areas.

To open the window, from the SAP Business One Main Menu, choose   Administration   Setup   Financials   Fixed Assets   Depreciation Areas  .

Depreciation Areas - Setup Window Fields
Code

Enter a unique code for the depreciation area.

Description

If required, enter a description of the depreciation area.

Type

Select one of the following types for the depreciation area:

  • Posting to G/L – In this area, the asset depreciation is posted to the general ledger accounts.

  • Additional Area – In this area, the asset depreciation is not posted to the general ledger accounts. The depreciation carried out in this area is for information purposes only.

  • Derived Area – The derived area of the main depreciation area. Generally, you use this area when carrying out special depreciations.

    In special depreciation, you can specify the same depreciation type for both the normal and alternative depreciation. This way, the main depreciation area carries out the normal depreciation and the special depreciation, while the derived area carries out the normal depreciation only. You can then compare the asset depreciation with and without the special depreciation. For more information, see Special Depreciation Method.

    The derived area is used only for information purposes, and there is no posting in the general ledger.

    Note Note

    SAP Business One lets you create only one depreciation area with the Derived Area type.

    End of the note.
Main Depreciation Area

Select the checkbox to indicate that the depreciation area is the main depreciation area.

Note Note

SAP Business One lets you create one main depreciation area only.

End of the note.
Derived Depreciation Area

Note Note

The field is available only if the following conditions are met:

  • The depreciation area has the Posting to G/L type.

  • The depreciation area is the main depreciation area.

End of the note.

From the dropdown list, select the derived depreciation area of the main depreciation area.

Posting of Depreciation

Note Note

The field is available only for the depreciation areas with the Posting to G/L type.

End of the note.

Select one of the following depreciation posting methods:

  • Direct Posting – The system posts the asset depreciation directly in the asset balance sheet account.

  • Indirect Posting – The system posts the asset depreciation in the accumulated depreciation accounts and transfers the depreciation to the asset balance sheet account only when the asset is retired.

Posting of Retirement

Note Note

The field is available only for the depreciation areas with the Posting to G/L type.

End of the note.

Select one of the following retirement posting methods:

  • Gross – The system does not post the profits or losses during asset retirement to any general ledger accounts.

  • Net – The system posts the profits and losses during asset retirement to corresponding general ledger accounts.

More Information

Depreciation Areas