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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.
Country-Specific Field: Russia
Allow Revenue Posting in A/R Documents

Select the checkbox to change the posting procedure for asset retirements through sales.

If the asset is retired through an A/R invoice, the profit or loss arising from the retirement is posted directly to the revenue account, in the journal entry that is created based on the A/R invoice. Therefore, there are no revenue-relevant postings in the journal entry created based on the corresponding retirement document.
Country-Specific Field: Brazil
Fixed Asset Tax Credit Control

Select the checkbox to enable the fixed asset tax credit control function for a depreciation area.

Note Note

This field is available only if you have selected Additional Area in theType dropdown list.

In addition, the following fields are available only if you have selected this checkbox:

  • Tax Type for Purchase Document

  • Business Partner for Tax Correction Invoice

  • Item for Tax Correction Invoice

  • Usage for Tax Correction Invoice

End of the note.
Tax Type for Purchase Document

Select a tax type contained in the tax codes that are used in the asset acquisition A/P invoices of all assets in the depreciation area.

Note Note

The APCs of the assets in a depreciation area are passed to the depreciation run calculation through the tax type you select here. Therefore, make sure the tax type you select is included in the asset acquisition A/P invoices of all assets in the depreciation area.

End of the note.

Example Example

Asset in Depreciation Area XX

Tax Code Used in Asset Acquisition A/P Invoice

Tax Type Contained

FA01

C01

A, B, and C

FA02

C02

C, D, and E

FA03

C03

B, C, and F

Results:

  • Select tax type C for purchase document:

    The correction invoice created for depreciation XX includes the tax amount of all assets - FA01, FA02, and FA03.

  • Select tax type B for purchase document:

    The correction invoice created for depreciation XX only includes the tax amount of FA01 and FA03.

End of the example.
Business Partner for Tax Correction Invoice

Select a business partner to use in the tax correction invoice.

Recommendation Recommendation

You should create a business partner for this usage only, in order to avoid confusions or mistakes in any reports.

End of the recommendation.
Item for Tax Correction Invoice

Select an item to use in the tax correction invoice.

Recommendation Recommendation

You should create an item for this usage only, in order to avoid confusions or mistakes in any reports.

End of the recommendation.
Usage for Tax Correction Invoice

Select a usage to use in the tax correction invoice.

More Information

Depreciation Areas