Depreciation Area

[former_member687094]

Hi,

What is Depreciation Area & What is the logic of having more than one Dep Area?

Regards,

Vikas

[MarkusBredel · Accepted solution]

Hi Vikas,

I would recommend to read through the official SAP application specific documentation in the [SAP Help Portal|http://help.sap.com/erp2005_ehp_03/helpdata/EN/4f/71fd71448011d189f00000e81ddfac/frameset.htm]. You find the answer to your questions there.

Regards,

Markus

[srinivasa_maruvada]

Hi

Companies need number of depreciation calculations to meet the local legal requirements. To achieve the above objective we are creating different depreciation areas. EX; For companaies act we use depreciation area 01 and for Tax calculations we use depreciation area say 50 and for cost depreciation we use depreciation area 20.

Cheers

Srinivas

[Former Member]

Hi,

In a depreciation are you hvae a sepperat area with different rules where you followup the values from your assets. Have a look to the country example in your SAP system.

Example is:

Rules by your own company perhaps depreciation 10 years

Tax rules perhaps depreciation 5 years

Inflation (values incl inflation, replacement values)

IAS rules

Paralel currency

....

You have first know if the bussines want to have more depreciation areas