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.

Similar Messages

Different Transaction Types for Different Depreciation Areas

Dear Friends,
When I am viewing the asset explorer for the asset, it is oberved that for book derpreciation 01, the asset transaction type "acquisition value" is updated and am able to view the same.
However when I am going through the tax depreciation area, the transaction type intercompany transfer" got updated and the acquisition values are not updated.
I would like know the reason of how the system is going to update different transaction types in different depreciation areas since the postings only takes effect in book depreciation and same should be diplayed for tax depreciation.
Thanks in advance!

hi
go to OAYA
select "Limit Transaction Types to Depreciation Areas"
select the trnsaction type you using .
select depreciation area specification
and maintain entries for every dep area you want to maintain for transaction type.
regards

Posting for different APC values to different Depreciation Areas

Hi All,
I am trying to manage in ECC 6.0, different APC values for different depreciation areas, i.e. APC values differ from one dep area to another. I need to post the APC to GL only (i.e. for the 01 i.e. Book Depreciation area). For the remaining depreciation areas for the purposes of reporting I need to maintain different APC values.
One way to achieve this is by maintaining Parallel ledger. Is there any other way this can be achieved.
Thanks in advance
Krishna

Hi,
Use the trnasaction ABSO and clik in the button Dep. Area.
Now you can fill in the value by depreciation area. (when this is set up) use the Trans act type 100
Paul

Different Asset value dates for different depreciation areas

Hi All
I have a requirement for different capitalization dates in different depreciation areas for some LATAM countries .How can this be achieved?

Hi
Hope you can achive this requirement by entering Depreciation calculation start date in depreciation area tab of asset master against each depreciation area
Depreciation calculation start date
'As a general rule, the system determines the depreciation start date from the asset value date of the first acquisition posting. However, you can also manually enter a calendar date in the asset master record for the start of depreciation. In that case, the system ignores the asset value date of the acquisition posting.'
Please check different scenarios in development system and then do it
Regards
Praveen PC

Automatic Posting in different depreciation area (4.7 and 6.0)

Dear all,
I want to understand how it is possible the procedure of automatic posting in different depreciation areas.
Exemple: I post a specific movement via ABAON, and automatically the system creates another document (with sequencial number, because uses THE SAME DOCUMENT TYPE), to another depreciation area (using ASKB). And that procedure happens in 4.7 version.
Now, in different version, like ECC 6.0, the system react the same as in 4.7, but uses another method when creates the document, as I say in the next path:
Financial Accounting >Asset Accounting>Integration with the General Ledger>Post APC Values Periodically to the General Ledger>Specify Document Type for Periodic Posting of Asset Values
This is the customization part to associate the new document (another depreciation area, as I've explained before).
This step is possible to choose only one document type. But in version 4.7 (at least it is what is happening in my client) the document type is choosen according to the first document, the one, I post in ABAON (or another transaction with similar characterics).
Please anyone can help me?
Thanks in advance,
CCT

Addendum:
The options in ECC 6.0 are:
0 Area Does Not Post
1 Area Posts in Realtime
2 Area Posts APC and Depreciation on Periodic Basis
3 Area Posts Depreciation Only
4 Area Posts APC Directly and Depreciation     -> V2 update
5 Area Posts APC Only
6 Area Posts Only APC Directly                         -> V2 update
If in the area is set the posting indicator 4 or 6 (V2) than it means it's a virtual posting (like 'post direct'). The postings in those area area technically processed via "V2-update". With this update a log table is written where all successul updates of this area are stored.
When you start RAPBER2000 this log table is compared against all postings (since the last run) and if there is any posting missing RAPERB2000 collects this missing posting.
This means, if in background for some reason, that we cannot tell in retrospect, there was an update error, or an error occurs due to missing customizing (please check you ASKBN posting in transaction ARAL which should tell what happened during your posting) ASKBN will pick up the outstanding posting and created/posts the FI document.
In your case the difference might be that This documents is posted either directly per V2 posting (=realtime) or later with RAPERB2000 and this causes different document types.
regards Bernhard
Edited by: Bernhard Kirchner on Oct 15, 2010 5:34 PM

Asset Accountig.. summing up different Depreciation areas

Does anyone know why it´s not possible to total different deprec areas using the cube 0FIAA_C02. As the matter of facts one can total areas but it does not lead to correct result in the queries
Thanks
Walter

Hi
Hope you can achive this requirement by entering Depreciation calculation start date in depreciation area tab of asset master against each depreciation area
Depreciation calculation start date
'As a general rule, the system determines the depreciation start date from the asset value date of the first acquisition posting. However, you can also manually enter a calendar date in the asset master record for the start of depreciation. In that case, the system ignores the asset value date of the acquisition posting.'
Please check different scenarios in development system and then do it
Regards
Praveen PC

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

Accounts for different depreciation areas

Hello all!
I have the following question:
In our company there are 3 depreciation areas for assets. And my problem is that when I try to look through the accounts in depr.areas, I see the same accounts in all areas as in main one. But the account should be different in accordance to AO90 and dep. areas. When I run ASKBN to provide postings in GL, my accounts in AW01N for areas are not changed - Debit and Credit are the same for all.
I expected t see different account for different areas, Could I get it and how???
Thanks in advance!

Hi,
Is your all 3 dep areas will post to GL?
Thanks,
Srinu

Different Year of closing in different Depreciation Areas

Hello Asset Gurus, we are on ECC 5.0 and we did in 2009 activate a new depreciation area 32 in two of our chart of accounts to make them same as the other two chart of deprections for easy inter-company asset transfers. We did use AFBN to activate this new depreciation area and completed year-end.
However we were implementing SRM project usings a parallel quality system and in the process, somehow got the fiscal year closed for depreciation area to be 2007 instead of 2009. The OAAQ show that the fiscal year close for all company codes is 2009 but OAAR show that the fiscal year closed to be 2007 for depreciation are 32.
We need to resolve this before we get this year-end and want to know if you guys have any idea in during this directly in the production system using OAAR or some other transaction and what are the draw backs, if any.
Thanks for your feedback.
Joseph Teli

ji,
You can change the last closed FY for a single dep area direclty in OAAR.
Hope your FY is APR to March
Then first close the FY 2009 by AJAB.
And open Fy 2010 by AJRW
Now change the last closed FY to 2007 in OAAR for 32 area.
No other implications in this regard till the next year end closing of FY 2010. Means to open FY 2011 in AJRW in next year, you must close Fi-AA till FY 2009 atleast. Coz you can open only 2 years at a time in FI-AA.
Thanks,
Srinu

Cross-System Depreciation Area Transfer

Hi,
I need to execute inter-co asset transfer between COD that have different depreciation areas.
For eg,
COD 1 - book depreciation area 01, tax depreciation 02
COD 2 - book depreciation areas 01, US tax depreciation 10, 11,12,13
Can anyone advise how do I configure the above? The transfer to book area should be using gross method and to tax area should be net method.
Thank you.

HI,
Following are the steps required for the configuration as per your requirement
1. define cross syteme depreciation area for both book of depreciation and tax of depreciation in each company company code and as per the requirement mentioned check tax depreciation area in COD 1 whethere any functionality (properties)of the tax depreciation area mentioned in COD2 ma tches if it matches then we can mapp the cross system depreciation area to that particular depreciation area.
2. check comapny id : whether it is legal entitiy( company code assigned to same company)
whether it is independent legal entity ( company code assigned to different company)
3. create transfer variant enter the cross system depreciation area and mentioned transfer method( 1- gross method 2- nett method) and mention the transaction type one for retirement and acqusition resp and mention the transaction type fro prior acq and current year acqsition.

Which Depreciation Area is used to post values to G/L

Hi,
I do understand that multiple depreciation area can be created and used in asset master at the same time to meet multiple requirements of the company. Lets say that we have two separate requirements of handling Depreciation of Vehicles. Book depreciation and Tax Depreciation.lets say that the companies policy is to depreciate vehicles @ 10% but tax authority required it to be depreciated @ 15%. Now i can create two different depreciation areas for this and assign two different rates in asset master against each depreciation area. my question is when i execute the depreciation run through AFAB which amount of depreciation will be posted to G/L account? Book depreciation of tax depreciation? if only book depreciation is to be posted to G/L where would i get asset position based in tax depreciation rate and what will be the purpose of creating a separate depreciation area if no posting is going to be made to G/L with its reference. Please help me out here i am completely lost.
Regards,

Hi Faizan,
We do maintain all the depreciation area in t-code OADB. Under each depreciation area, we define if depreciation post in Real time or not. If you are using classic GL, you will select this option for Book Dep area only. For Tax dep area, no real posting will be done, however you can view the dep details in asset reports.
If you are using new GL, then refer to below link. This could be useful.
http://scn.sap.com/docs/DOC-54335
Regards,
Gaurav

Cross system depreciation area

We are facing a production issue while transferring assets between two company codes . Each company code is assigned to diffreent chart of depreciation with different depreciation areas.
Now we have to define cross system depreciation area to resolve this issue.
Could you let me know what are the config stps involve in changing to corss system depreciation area.
Alos if anyone has document on this please forward it.
Thanks

HI,
Following are the steps required for the configuration as per your requirement
1. define cross syteme depreciation area for both book of depreciation and tax of depreciation in each company company code and as per the requirement mentioned check tax depreciation area in COD 1 whethere any functionality (properties)of the tax depreciation area mentioned in COD2 ma tches if it matches then we can mapp the cross system depreciation area to that particular depreciation area.
2. check comapny id : whether it is legal entitiy( company code assigned to same company)
whether it is independent legal entity ( company code assigned to different company)
3. create transfer variant enter the cross system depreciation area and mentioned transfer method( 1- gross method 2- nett method) and mention the transaction type one for retirement and acqusition resp and mention the transaction type fro prior acq and current year acqsition.

Parallel depreciation area not posted when trying to settle an order.

Hi,
We have requirement of using parallel currencies in one of the cocode.So I havee set up parallel currencies in AA as well.
We have three currencies EUR as Local currency, USD as Group Currency and CHF as Index-based Curremcy.
I have set up Depreciation areas
01 Book depreciation areau2014posts in real timeu2014leading ledger 0L
02 Book depreciation area for CHFu2014posts Dep only u2013Z1 european ledger
10u2014Statutory Depreciation areau2014Do not post
19u2014Derived Dep area (01-10)
29u2014Dervied dep area (02-01) Posts APC onlyu2014Z1 european leading ledger
30-Consolidated Balancesheet in local currencyu2014do not post
31u2014consolidated balance sheet in group currencyu2014do not post
32u2014Book dep in Group currency u2013do not post--assigned USD in OABT
42-Book dep in Group currency-do not post --assigned CHF in OABT
I have selected Indentical and TTr check box for dep areas 02,31,32, & 42.
I have done the consistency check and it shows no errors in depreciation area set up.
When Trying to settle an internal order in KO88 to a fixed asset I am getting the below error message.
*Data inconsistency: Parallel depr. area is not posted Message no. AAPO104*
Diagnosis
For chart of depreciation ZCH, you defined this area (or these areas) as parallel depreciation areas for depreciation area 01. In the current transaction, however, not all of these areas are posted. This is not allowed.
Procedure
Check if the transaction type is limited to certain depreciation areas. If there is such a limitation, add the missing depreciation areas for the transaction type.
Check if the asset that is being posted manages all these depreciation areas.
I have checked the transaction types and they are not limited to any depreciation areas. I have activated depreciatio areas in the asset class and maintained the account determination nad assigned g/l accounts.
Please help me if I have missed any settings.
Thanks & Regards
Nirmala

Hi,
AAPO104 is generally a customizing error: the check points to consider are generally the following regarding parallel currencies: I think you have checked most of them already...
* The parall. dep. area must have the same settings as the original area (e.g. allowing APC).
* The parall. dep. area must set for identical values take over.
* The parall. dep. area must set for identical parameter take over.
* The parall. dep. area must be assigned to the currency type which is defined as parallel in FI in trx. OB22 (e.g. 30).
* The parall. dep. area must be activated in the asset class (transaction OAYZ)
Furthermore, a problem can also be that in OABT you have a parallel area customized, taking value from another area, which is customized and seen in T093. If for example this parall.area is missing on your Asset Under Construction but is there on the final asset this obviously will create the error AAPO104, too.
In any case check your settings are correct in regards to parallel depreciation areas. They must manage same values as original areas. If they don't it cannot be a parallel area.
Maybe you also need to consider the information in SAP note 317806.
Also, looking at your different depreciation areas above, it looks that you have set up a ledger scenario (areas 01 , 02 and 29). I wonder, do you have a correct set up for the parallel currency for your ledger scenario? If I am not mistaken, I don't see a derived parallel currency area. Could this be the problem?
Regards,
Brigitte

WHAT IS THE DEPRECIATION AREA

WHAT IS THE DEPRECIATION AREA

Hi
Depreciation areas are used to valuate fixed assets according to different purposes / requirements. In broad terms we can identify two different depreciation areas are Book Depreciation, Income tax depreciation and consolidated depreciation.
In Book depreciation, depreciation is calculated as per the statutory requirements of the corporate laws (for example Indian Companies Act). As per Income Tax act, depreciation is calculated as per the Income tax laws. Usually we assign declining balance method of depreciation key for this area.
In SAP, we can calculate depreciation for both the depreciation areas, but GL is updated as per Book depreciation. Income Tax depreciation is only for reporting purpose.
assign points if useful

Use of Different Fiscal Year Variant-Statistical Depreciation Area Postings

An existing Company Code in SAP is going to have Fixed Assets implemented. This Company Code is setup just like the others in our SAP instance: Same Chart of Accounts, Same Fiscal Year Variant, Fixed Asset procedures, etc. For purposes of this question our company's Fiscal Year is from August 1st to July 31st. In addition, this Company Code will post Fixed Assets just like the other SAP enabled Company Codes into Book Depreciation Area 01. The company I work with is on ECC 6 but we use the Classic Ledger for Financials, and the Special Ledger is posted to but not really utilized.
For the Country Specific/Tax Reporting purposes within Fixed Asset Accounting we have created a Statistical Depreciation Area 03 (I will call it Tax) with its own Life and Depreciation Key assignments with a setting of 0 in OADB-No Posting in GL for this Fixed Asset go-live, so I think we are set there. The tricky part comes in the reporting. The country in question requires information to be generated on a Calendar Year basis, which is obviously different than the Fiscal Year outlined above. To my knowledge we would have to assign Tax Depreciation Area 03 to the Calendar Fiscal Year Variant: Financial Accounting>>Asset Accounting>>Valuation>>Fiscal Year>>Fiscal Year Variants>>Specify Other Versions on Depreciation Area Level.
The other piece of this is to get the Fixed Asset Reporting for Tax Depreciation Area 03 to work on a Calendar Year basis for the Company Code in question. When I did some research I stumbled upon the link below. In summary it says that you have to manipulate the standard Fixed Assets reports in Excel for Asset Acquisitions and Depreciation, and setup a new Retirement routine/transaction for posting into the Special Depreciation Area.
http://help.sap.com/saphelp_46c/helpdata/en/05/bc0bf3d8f811d1953e0000e82debf7/content.htm
My questions are:
1) Besides assigning a different Fiscal Year Variant for Tax Depreciation Area 03, is there anything else I need to worry about on the setup end?
2) Is the article I posted accurate when it comes to how the reporting works and the need for setting up a Calendar Year specific Asset Retirement Routine? If so, what are the configuration steps for setting up a Calendar Year specific Asset Retirement Routine?
3) Is there anything else that I need to consider for enabling Fixed Assets at an existing Company Code with different Reporting requirements for Book/Tax purposes?
Thanks in advance for all responses. I am willing to answer any other questions on this subject if needed.
Roman

Hello Rio. In our scenario, we still had to load assets in the legal entity with this issue. When we loaded the fixed asset data into SAP we did with data accurate as of December 31, 2011; which for book purposes is 5 months into our company's fiscal year, and for tax purposes is the end of the 2011 calendar year. The calendarized reporting for the tax depreciation will need to be pieced together manually using the SAP recommended methodology of combining report values, which I have pasted below.
Since this is the only SAP-enabled entity that has this scenario right now we are in wait and see mode to see if this sufficient. In the end the SAP path for Dual Calendar was too much of a risk.
I hope this helps.
Roman
Asset Acquisitions
Run the acquisitions list. Report date: 7/31/2012. Posting Date: 1/1/2012 to 7/31/2012. Export the report to MS Excel.
Run the acquisitions list. Report date: 7/31/2013. Posting Date: 8/1/2012 to 12/31/2012. Export the report to MS Excel.
Add the values of both reports together, using MS Excel.
Asset Retirements
Run the retirements list. Report date: 7/31/2012. Posting Date: 1/1/2012 to 7/31/2012. Export the report to MS Excel.
Run the retirements list. Report date: 7/31/2013. Posting Date: 8/1/2012 to 12/31/2012. Export the report to MS Excel.
Add the values of both reports together, using MS Excel.
Depreciation
Run the depreciation list. Report date: 7/31/2012. Export the report to MS Excel.
Run the depreciation list. Report date: 12/31/2011. Export the report to MS Excel.
Run the depreciation list. Report date: 12/31/2012. Export the report to MS Excel.
Using MS Excel functions, subtract the second report from the first, and then add the third report (I - II + III).

Logic of different Depreciation Areas

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