Derived depreciation area

Hello Gurus,
I am trying to create derived depreciation area with t-code OADB.
This t-code is disabled and not allowing me to define the derived areas. Is this the right t-code to define Derived areas? or Is there any other way?
Please help me. Your time will be greately appreciated..
Thank you..
Regards
Geeta

Hello
Postings to derived area is simultaneous.
check this
The "Derived Depreciation Areas" component makes it possible to determine new asset values based on asset values that have already been determined. The derived depreciation area uses mathematical formulas to determine values based on values in real areas, such as the difference between depreciation in two depreciation areas. The system then manages these new values in the derived depreciation area.
You define the formula for the derived depreciation area in FI-AA Customizing (Define depreciation areas). In the formula for a derived area, you can use up to four real areas. The arithmetic operations allowed are addition and subtraction. It is possible to mix the calculation rules. This includes using proportional values from real areas in the calculation.
When defining the formula, it is up to you to make sure it is reasonable. Make sure that the key of the derived area is larger than the keys of the real areas it is based on. A derived area "03" can be derived from the real areas "01" and "02" but not from areas "04" and "05."
You can also specify that the derived depreciation area is only for reporting. The system then does not subject the area to value checks (such as the check for positive/negative net book value).
When defining a derived depreciation area, keep in mind that the rules for remaining book value rule in the derived depreciation area can affect the depreciation in the real areas from which it is derived (see Characteristics of a Depreciation Area). Enter a modification area in order to specify which of the real areas this should be.
Be careful when using derived depreciation areas for group assets. In the formula for derived depreciation areas that are for group assets, you can only use depreciation areas that are also intended for group assets (see Group Assets).
Reg
*assign points if useful

Similar Messages

How to correct the derived depreciation area balances (Group Assets)

Hi SAP Gurus....
Due to some wrong configurations for one derived depreciation area (Group Assets) values have not updated in that derived depreciation area and related group assets. Now how to update the same APC values in derived depreciation area and Group Assets from already posted APC values in real depreciation areas.
Thanks in advance.

Hi All
Any Comments.................

LSMW derived depreciation area

Is there a setting to populate automatically the values for the derived depreciation area and not including the values in the load.
I know identical dependant values need not be loaded. Just trying to know if the same is possible for derived depreciation areas by customizing.
Is anyone aware of the customizing for getting the fabove functionality.

The system is already setup and there are assets existing. I am planning to do a load for a few assets using LSMW and the standard prog limits to 8 depreciaotion areas and we have 12 depreciation areas to be loaded.
I can eliminate the identical ones and I am looking at options to eliminate the derived ones.

Can a derived depreciation area be a real area for depreciation postings?

Example :
Book area 1 (real)        : $100,000
Area 2 (not real)          : $120,000
Derived area                : Area 2 minus Area 1 = $20,000 (depreciation calculation based on this)
Is above possible?

Hi,
the F1 Help of the field "real depreciation area" says:
Set this indicator if you want the system to store the values of this depreciation area in the database (meaning that the area is not a derived depreciation area). The values in this area are then updated each time a posting is made, and can be immediately evaluated.
regards
Edited by: Bernhard Kirchner on Oct 25, 2010 10:02 AM

Unplanned depreciation negative in Derived depr area ECC 6.0

We are trying to post unplanned depreciation in Book1 using ttype 641 and the system is not allowing us to post, as we have a derived depreciation area for
Book vs Macrs..
The message is AA639
Unplanned depreciation is negative in area 25.....Where area 25 is the derived depreciation area.
Any suggestions to overcome this as we only want to post to book1.
Thank you

Dear members of this forum,
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Saying it to an adult is insulting, so why do it in the forums? If someone keeps asking questions without awarding points, simply stop answering them or use the abuse button to report it
Best regards
Horst

Derived and Real Depreciation Area Concept (Enduser Documents)

Hi, We have a requirement in which we need to maintain following Depreciation
Areas:
1.Real Depreciation Area
2.Cost Accounting Depreciation Area
3.IFRS Depreciation Area
Can anybody please explain how many derived depreciation areas we need to maintain. And also please provide some examples of adjustment postings for real and derived depreciatin areas.
Thanks

Hello, Sandeep:
The message tells us that:
it doesn't make sense to allow negative value of acquisition for a REAL depreciation area, only meaningful for a derived area, as it might be the result of one real area minus another real area.
And if you set it as allow all value (as it is only a warning), the system cannot forbid the negative acquisition technically (negative acquisition doesn't make sense as we can see).
Hope it will help.
Best Regards, Lawrence

Issue in setting up dervived depreciation area

Hi,
We have created the following depreciation areas in our development system ,
Depreciation Area                           Type      GL                                            Ledger Group
01 : Book depreciation                     Real      Area posts in real time             0L - Leading ledger
02 : Federal                                      Real      Area doesnt post                     -
We want to create a derived depreciation area : 03 ( 01 - 02) but when we are creating that system is not allowing because it is asking for a ledger group to be assigned. ( we have tried with Wizard and without wizard also to setup parallel valuation)
If anyone of you come across this scenarion , please let us know how this was met.
Thanks in advance.
Regards
Vara Prasad

Hi,
do you have more ledger groups then 0L? If not, you can clear the ledger group information in area 01, that doesn´t harm. Then it should be possible to create the derived area without this problem.
Regards,
Markus

IT Depreciation area '15' values are not coming

Hi,
We have configured the AA component and the transactions are working fine includes Acquisitions, Depreciation etc. we have created the group assets to take the IT Gross block and enabled the '15' Depreciation area for them and created the derived depreciation area '16', difference between Book (01) -IT (15). But the thing is, for individual assets (other than Group assets) system is not showing the IT Depreciation where the IT Depreciation is displaying for the group assets only, so the derived depreciation area '16' is displaying wrong amounts. For ex-
Main Asset - 1000
Book(01)    - 200
IT(15)         - 0 (is not displaying in the AW01N)
Derived Dep (01-15=16) - 200
Group Asset - 1000
Book(01) - 0 (is not displaying in the AW01N)
IT(15) - 400
Derived Dep (01-15=16) - 400
How should I get the correct values for derived depreciation area at individual asset level?
Please give some inputs to resolve the above
Thanks & Regards
Ramki

Hi Srinu,
Thanks for your valuable reply.
1) You should have all of your group assets under one asset class only and that asset class would have ticked in OAAX. - YES
2) Group asset number should have assigned to the concerned assets in depreciation area details section. - In AS01, for every individual assets, we have assigned the Group Asset number since the Group asset is required for area '15'
Regards,
Ramki

Creating depreciation area for non leading ledger

Hi,
I want to configurate a depreciation area for a non-leading ledger. This is my scenario:
01-Accounting area leading ledger. Group legder: 0L (on line)
02- Accounintg area non leading ledger. Group ledger N1 (Area posts APC only directly)
03-Depreciation non leading ledger. Grouo ledger N1 (Area posts depreciation only)
Is it correct to created this 2 areas for non leading ledger?
Thanks,
Cecilia

Hi Cecilia,
additionally to my colleagues:
For each additional set of accounting principles, you create one real and one derived depreciation area.
Real Depreciation Area:
1. In Customizing for Financial Accounting (New), choose Asset Accounting - Valuation - Depreciation Areas -Define Depreciation Areas.
2. Assign both depreciation areas to the same ledger group.
The ledger group you assign them to is not allowed to contain the leading ledger.
3. In the Posting in G/L field, choose Area Posts Depreciation Only.
Derived Depreciation Area:
It is easiest to create the derived depreciation area using the Wizard.
4. In Customizing for Financial Accounting (New), choose Asset Accounting - Valuation - Depreciation Areas - Set Up Areas for Parallel Valuation.
5. In the Posting in G/L field, choose Area Posts APC Only. Specify that this derived depreciation area represents the difference between the real depreciation area for parallel accounting and the
master depreciation area.
You do not have to set up a separate account set for these new depreciation areas. Instead you use the account set of the master depreciation area. In this scenario, you do not have to create any new accounts in the chart of accounts or in the company code. You also do not have to create a new financial statement version.
So a typical dep.area setting for a parallel ledger at you is like:
T093
AFABER ABVOR1 AFABE1 ABVOR2 AFABE2 BUHBKT LDGRP_GL
01...............................00...........................00............1.............0L
02...............................00...........................00............3.............N1
03..................+...........01............ - ............02............6.............N1
Regards Bernhard

Depreciation Area posts APC twice

Dear Experts
We want to adjust APC & Dep in Non leading ledgers as per Local GAAP
I've kept the following settings for my depreciation areas in OADB
01 - Leading Ledger - Ledger 0L - Posting Ind 1
11 - Non Leading Ledger DE - Posting Indicator 2 or 4
Now when I do an asset acquisition, system posts the depreciation in Ledger 0L & DE correctly. But another entry is generated in DE ledger just because we have keeping it 2 or 4.
System doesnt identify that a posting has already gone to DE and still tries to create another entry and I feel its a bug / technical issue.
So it must to keep posting indicator 3 for Dep 11 and to have another Dep area say 20 (11-01) with posting indicator either 5 or 6. to avoid this duplicate posting?
Please suggest.
Regards
Kapil

Hello Kapil,
You need to use derive depreciation Area
Area                                GL indicator        Ledger
01        Leading Ledger   1                          0L
11        Non Leading         3                         DE
90        Difference             6                        DE
90 must be set up as (Area 11 - 1)
When you post Acquisition let say 100, Both ledger will be posted
Document no: 1 (in the accounting document Ledger group is Blank: meaning all ledgers are posted)
0L    100
DE   100
When you post depreciation 20. (2 documents will be posted, 1 for 0L and 1 for DE)
Document 1D:
0L 20
Document 1E:
DE 20
In case there is a difference between APC and Dep of Area 01 and 11
Leading APC: 100 Non Leading APC: 200
Document 1 APC:
0L 100 (Area 01)
DE 100 (Area 01)
Document 2 APC:
DE 100 (area 90 Area 11 -1 )
That gives you 100 to 0L and 200 to DE
Thanks!
Jhero

Error when selecting depreciation area as real dep. area

When trying to create a new derived depreciation area and select it as real dep. area in order to be able to post values in FI-GL, I get an error and the system does not allow me to post. I´m working with version 4.6 and need to post values in GL from a derived area. Can anyone help me?

And is it possible to post in the derived area even though it is not real?
I´ve set the depreciation area as to post only depreciation but when try to assign accounts it does´nt let me
the error says:
There is a separate maint. transaction for
assgnmt in area 11
and then I click and I get the following answer:
Please maintain area 11 in FI-AA Customizing:
Under Investment Support if depreciation area 11 is an investment support area.
Under Reserves for Special Depreciation if area 11 manages special depreciation
But the derived area is not an Investment support nor a Reserves for Special Depreciation area.

Error: Parallel depreciation area 31 is not posted

Hi experts,
Hi have customized 5 depreciation areas:
01 book depreciation in local currency
30 deferred balance sheet in local currency (for different useful life)
31 deferred balance sheet in group currency
32 book depreciation in group currency
60 derived depreciation area
I specified that 30 will get values from 01; 31 will get from 30; 32 will get from 01; plus one derived for 01 and 30 difference.
Then when I entered asset values in F-02 using transaction type 100, I get this error. Please help. Thank you.
Parallel depreciation area 31 is not posted
Message no. AA565
Diagnosis
The asset to be posted does not manage parallel depreciation area 31, or transaction type that you are using is limited to certain depreciation areas, and does not contain depreciation area 31. This is incorrect.
System Response
Posting is rejected.
Procedure
Check the asset and the transaction type.

Hi John.
In "Specify use of Parallel Currency" setup your currencies type/Valuation view.
In Currency Type/Valuation View, against area 31 maintain it for 31 (Group Currency Group Valuation) and against area 40 maintain 40 (Hard Currency). Transfer of Deprecation terms setup from Deprecation
area “01”. Setup like below.
Now go to below
Maintain your currency as per requirement and see if changes are updated as per above configuration (I mean valuation id is "01" for your depreciation area, try to execute your transaction and let me know if it’s working.
After that go to define depreciation area and see if your depreciation area setting for 01, 31 and 40 is same. Please try to check in Sandbox first.
Please mark it as correct if your problem resolves, so it would be useful for other as well.
Thanks and Regards,
Sudhir Harale

How to post depreciation to different depreciation areas

Hi,
Can any body explain how to post depreciation to different dep areas other than 01 book dep,
and how to take the reports according GAAP and IAS.
Regards,
prasad

Hi,
When you create depreciation areas like Book, Tax, Costing etc., the system posts values like APC and Depreciation simultaneously in all the areas. You don't need to do any thing.
Just posting values through F-90, F-92, etc and for Depreciation AFABN.
This above holds good as long as you are posting to a single ledger.
The above answer is slightly different in case you are having parallel ledgers. Let me explain by taking an example.
Lets assume you are implementing for an Indian client whose parent compnay is in Dutch.
As per Indian GAAP you need to submit the local reporting on April to March basis and for Ducth Jan - Dec.
Assets in Indian GAAP are capitalised with values including frieght, Installation and trial run till Commencement date lets say @ 20%
Assets in Ducth GAAP are capitalised with only Cost, Frieght & Insurance (This is only an example) and the depreciation rate is 15%.
In this scenario you will be creating two ledgers(IN SAP sense and not the accounting GLs) with different fiscal year variants and will be defining Leding ledger and Non leading ledgers and Ledger Groups.
IN this case lets assueme Indian GAAP is Leading ledger and Dutch GAAP is Non Leading ledger and a ledger Group lets say "LG"
When you post using the transation code FB01L you will be using ledgers or ledger groups that are effecting with this transaction.
If you use the regular T codes without using the Ledger Groups, System posts the transaction to all ledgers simultaneously.
When You want to post the transaction as I said in the above example, you will be using FB01L like capitalising total cost in "LeadingLedger" and upto CIF value to "Non leading ledger"
NOw from the configuration front you will be creating seperate set of Depreciation keys for each GAAP and will be creating a depereciation area for Dutch GAAP.
You will also need to create a derived depreciation area which is the difference of Book Dep Area (as per Leading Ledger) and teh Duthc GAAP depreciation area (Non leading ledger). You can use the Wizard here which will guide you.
For Book depreciation are its always realtime posting and for other areas its periodic posting. i.e. as a monthend process you need to do,
For this you need to run TCODE ASKBN (Periodical posting ) anad AFABN.
ASKBN checks for the difference in APCs, Depreciations, Loss or gain on account of retirements differently for diffrent depreciation areas and posts the values.
When it comes to reporting all Standard reports will give you the flexibility of taking the reports based on Depreciation areas.
You have a TCODE "OARP" where in you will get all the asset related transaction reports.
The above scenerio is explained with an assumption of you using SAP Version above 4.7EE.
Reward if you find this explanation useful.
Sarma

Logic of different Depreciation Areas

Hi,
Kindly tell me the logic of different Depreciation eys?
Regards

depreciation areas are used to calculate different values in parallel for each fixed asset for different purposes. For example, you may require different types of values for the balance sheet than for cost accounting or tax purposes. You manage the depreciation terms and values necessary for this valuation in the depreciation areas of each asset.
SAP allows you to define up to 99 depreciation areas, you can manage many different types of valuation (Customizing: Valuation). Depreciation areas are grouped together, according to the requirements of a specific country or economic area, into a chart of depreciation
You can post both the asset balance sheet values and the depreciation values from the individual depreciation areas to separate balance sheet accounts or income statement accounts in the general ledger. You specify the accounts individually in the account determination key for each depreciation area. Define the account determination key in FI-AA Customizing and specify the key in the particular asset class
Usually you need to post more than one depreciation area in parallel to the general ledger if you are creating different financial statement versions. You can define any number of balance sheet versions per chart of accounts in FI (General Ledger) for this purpose. For each balance sheet account and income statement account, you specify in the financial statement version the balance sheet position or income statement position in which the account values should appear
The depreciation areas in a chart of depreciation have no automatically defined features. You determine the features of each area individually, based on the basic structure, which is the same for all depreciation areas. You can make specifications for the following levels for each depreciation area:
At the chart of depreciation level
At the company code level
For legacy data transfer
Features at Chart of Depreciation Level
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 each depreciation 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
That have depreciation below zero
That are intended for value adjustments shown on the liabilities side
That are derived depreciation areas, and can have negative values because of their calculation formula.

Derived dep area flow to CO module

Hi Experts,
I have a special scenario where I am going to assign the Leading Ledger to the derived depreciationa area which will make postings to GL on periodic basis. To move forward, I want to understand whether the derived depreciation values are flow to CO module or not. I guess, since it is making the real time postings to GL, it should go to CO module as the depreciation accounts always will be cost elements.
Can somebody please clarify my question about assigning the derived depreciation area to leading ledger and appreciate if anybody provides their valuable experience regarding whether it is SAP best practice or not and other consequences as well.
Thanks in advance
Ramki

Dear Ramki
Derived depreciation is a differnce between 2 depreciation areas and its statistical. It will not updated in CO and the depreciation expenses is not a overhead cost of production, its a diminishing value of asset only.
Regrds
Sridhara Rao D
Edited by: Sridhara Rao.D on Oct 4, 2011 11:26 AM

Derived depreciation area

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