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

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Message no. AC481
Diagnosis
You tried to assign chart of depreciation BHEL to company code BHEL. According to its Customizing definition, this company code manages parallel currencies.
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in other words
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I have already setup area 15 for taxes only with no update to G/L.
If you have disabled your depr area to post it to GL how can you expect to see it in AFAB run. This looks like a notional area for Tax depreciation. Why dont you run Tax depreciation report and get your depreciation values from there... Check your business scenario if Area 15 is suppose to post to GL or not and configure accordingly.

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WHAT IS THE DEPRECIATION AREA

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