Trademarked names, logos, and images may appear in this book. In this field, the system enters the period, for which depreciation was last posted. Using selection from asset accounting configuration in sap erp. Sap asset accounting interview questions and answers. Whenever you post any changes in depreciation area 01, the system automatically updates areas 32 and 33. Asset class is the main criterion for classifying fixed asset according to requirements of management and leagal requirements of particular country.
The information in depreciation area 01 is duplicated in depreciation areas 32 and 33, with the difference that these areas are kept in your hard currency and group currency respectively. Define depreciation area 1 book depreciation area and 30 depreciation area for indian gaap. Sap fico depreciation area learn sap fico in simple and easy steps from basic to advanced concepts with clear examples including introduction, sub components, company, company code, assign company code to company, business area, consolidated business area, assign business area to consolidated business area, functional area, financial management area, assign company code to financial. To check the job that has been run by using transaction afab you need to select system. Copy reference chart of depreciation depreciation areas sap. These include transactions like acquisition of fixed assets, sale of fixed assets, inhouse development of assets, settlement of wip, and accounting for depreciation on fixed assets and so on. You enter the depreciation terms in the asset class or directly in the asset master record of the particular assetsee asset master record. May 09, 2014 we define depreciation area to calculated depreciation for different purpose. The asset accounting module in sap is one where the accounting pertaining to fixed assets is done. Steps to determine depreciation area in the asset class, path financial accounting. A newly activated depreciation area can take over values from another depreciation area.
Apr 16, 2014 define depreciation area 1 book depreciation area and 30 depreciation area for indian gaap. If your legal requirement is different from other requirements then. Sap fi asset configuration leading it services and. We can create charts of depreciation by copying from reference charts of depreciation. If you want to allow negative book values only for a particular asset, you can use transaction code as02. Question asset accounting ordinary depreciation greater than. You may sequence the depreciation areas in any order. Gbp is set as local company code currency, eur as group currency ob22, currency type 30. Oct 06, 2015 parallel ledgers in asset accounting new gl code.
This is a master depreciation area with special significance. Go to the depreciation tab, doubleclick on depreciation area 15, and then check the negative values allowed check box. Determine depreciation area in the asset class sap sap training. Can we create assets in sap with different book and tax. There are various depreciation areas such as book depreciation, tax depreciation, and depreciation for costaccounting purposes, etc. For depreciation area 1, system posts value in real time whereas for depreciation area 30, system posts only depreciation value. Procedure in all of these cases, the entry is not allowed and must be removed.
While defining you must define one depreciation area as valuation for trade bal. Remember that sap can calculate all us depreciation book and tax. Quizlet flashcards, activities and games help you improve your grades. S4 hana new asset accounting considering key aspects sap.
You specify the assetspecific depreciation terms for every depreciation area belonging to the. There may be a variety of business reasons for this like asset valuation not finalized etc. We define depreciation area to calculated depreciation for different purpose. But asset is sold for 2300 hence gain on sale of asset is 100.
Sap manages these different valuations by means of depreciation areas. In our example, the main area is gaap that is, local generally accepted accounting principles. Area 15 available in sap for income tax depreciation in india. A depreciation area decides how and for what purpose an asset is evaluated. The depreciation is usually calculated taking into account the economic life of the asset, expected value of the asset at the end of its economic life. Dec 06, 2018 postcapitalization in asset accounting. Enter chart of depreciation key and press enter to continue. It often happens that business has omitted to book apc values of fixed assets in past fiscal years. How to define depreciation area for sap asset accounting. What is the difference between book depreciation and tax. How to copy reference chart of depreciation depreciation areas, specify. Number enter the number to identify the depreciation are. For example, the depreciation area for book depreciation in the u.
Just select 0, area do not post for depreciation area 2 3. Derived depreciation areas sap documentation sap help portal. International companies must follow different accounting principles in their sap system. Book depreciation, special tax depreciation and derived depreciation are already defined in the system.
For example, the depreciation area for book depreciation. Sap fi book 3 study guide by hjstrad includes 88 questions covering vocabulary, terms and more. Sap has provided chart of depreciation for various countries. In this book, noted expert andrew okungbowa explains sap asset accounting fiaa in saperp, including its associated business benefits, and guides you through the considerable complexities of saperp configuration. The depreciation area can be real or a derived one.
Spro img financial accounting new asset accounting depreciation valuation methods depreciation key maintain depreciation key. Each company code uses one chart of accounts and one charts of depreciation. Depreciation areas are grouped together, according to the requirements of a specific country or economic area, into a chart of depreciation refer to chart of depreciation. We have a unique situation where we have different thresholds for each depreciation areas. Defining new depreciation areas sap library financial. However,this depreciation area is one of the following. Sap ag asset accounting fi aa icons icon meaning caution example note recommendation syntax april 2001 3. You want to transfer values from one company code to another.
Depreciation area total posting periods depr amount per period 01 for us gaap 2 x 12 24 2,40,00024 10,000 30 indian gaap 4 x 12 48 2,40,00048 5,000 now, do the asset. Derived depreciation area vs real depreciation area. Maintain depreciation key in sap sap training tutorials. We can post asset values online in realtime from fiaa to figl, only from one area and generally this is the book area. How to configure depreciation key in sap your finance book. Depreciation areas sap library asset accounting fiaa. The system then does not subject the area to value checks such as the check for positivenegative net book value. Differentiate asset capitalization values per depreciation area sap.
On the background print parameters screen select enter. You can set it for the asset class as active or inactive. The receiving company code is expected to show the exact same value in both depreciation areas, book and groupparallel area, since both use the same currency. In the next screen of start time select immediate start and save. This depreciation is based on the matching principle of accounting. In this step you assign different values in combination of asset class, cod and depreciation areas. Book depreciation 01 this area is the master depreciation area, in which all business transactions are generally posted. Select asset class and double click depreciation areas folder.
Dec 03, 2011 the field is not available for input if legacy data not transferred within the fiscal year, or if depreciation is not posted in this depreciation area. However, you notice that this is not the case and instead a difference in value is shown in the document and the asset explorer transaction aw01n for lc1 and lc2. Mar 29, 2014 to process depreciation run in background select program execute in background being on the initial screen of transaction afab. For book area we would like a higher threshold and. If special tax depreciation is to be managed as special reserves, you are allowed to use the book depreciation area only for depreciation allowed by commercial law that is, without special depreciation. Copying reference chart of depreciationdepreciation areas. Also there are some other depreciation areas available in sap as per the country. You have successfully determine depreciation area in the asset class. The depreciation area is a financial dimension showing the valuation of the asset for a given purpose, for example. The depreciation area must allow negative net book value for which a changeover key may be used. Book depreciation is the amount recorded in the companys general ledger accounts and reported on the companys financial statements.
Chart of depreciation is nothing but a chart containing difference areas of deprecations like book depreciation, tax depreciation, consolidated depreciation, etc. Tagged asset class, book depreciation, chart of depreciation, consolidated depreciation, depreciation area in sap, sap aa, sap asset accounting, t096, tax depreciation 1 comment follow blog via email enter your email address to follow this blog and receive notifications of new posts by email. Determine depreciation area in the asset class sap sap. Depreciation below the net book value zero can be set if you want depreciation to be continued after the book value is zero. Go to the depreciation areas tab in the asset master, double click on each depreciation area and check the negative values allowed checkbox under. Hi experts, i need your advice on depreciation areas configuration.
Depreciation area book depreciation transaction codes. You need to define one depreciation area as the main area. Actually this is the area for balance sheet values. You specify the assetspecific depreciation terms for every depreciation area belonging to the chart of depreciation. Select the asset class, click on the depreciation area, and check the negative book value check box.
Unfortunately for india it has not provided any chart of depreciation. Sap new asset accounting interview questions zarantech. The sap r3 system posts the depreciation and interest based on the chart of. Deselect deactivation check for area 01 book depreciation, select 2000. Apr 28, 2009 depreciation is the reduction in the book value of an asset due to its use over time decline in economic usefulness or due to legal framework for taxation reporting. In sap, chart of depreciation is a country specific that provides various predefined charts of depreciation with predefined depreciation areas. The depreciation areas are identified by twodigit numeric keys. A negative value is not allowed to be posted to the asset in question the asset is an auc asset under construction.