How to Configure and Retrofit Depreciation Areas When You Add a New Depreciation Area in a Live Site

  • by Hemachandra K. Srinivasa, Principal Consultant, Infosys Limited
  • September 23, 2013
Learn how to add or retrofit depreciation areas with a specific depreciation key. See how you can use a substitution rule and worklists when a new company code with a specific legal requirement on depreciation calculation and reporting is rolled out in the same country with an already existing company code. You need to have SAP ERP Central Component (SAP ECC) with the SAP General Ledger and the Asset Accounting (FI-AA) module implemented to complete this process.
Key Concept

In SAP ERP Central Component (SAP ECC) 6.0 Asset Accounting (FI-AA) can be adopted by default with no restriction on the kind of industry. It has the flexibility to adopt country-specific legal valuation requirements via customizing.

Consider this scenario: Company XY is already using SAP ERP Central Component (ECC). It has the Asset Accounting (FI-AA) module implemented with depreciation areas 01 (Book dep. in local currency) and 02 (Group dep. in Group currency).

In this scenario I assume that you have completed the basic configuration on FI-AA along with a chart of depreciation configured at the country level. A legal entity is live in an SAP system with assets purchased against assets under construction (AUC) and also posted with final capitalized assets.

Further, a depreciation is run for a couple of months or years with current settings. During the year, a new entity in the same country is acquired and inducted in the SAP system, but with a specific requirement for legal specific depreciation calculations for local reporting because of the nature of the legal entity. For better understanding, the company code already existing in the SAP system is named as OLD (existing entity) and the company code of the newly added entity is named NEW.

To view an asset with OLD as the company code, use transaction code AS03. Follow menu path Accounting > Financial Accounting > Fixed Assets > Asset > Display. The screen that appears (Figure 1) shows an asset in the company code OLD with the depreciation areas 01 (Book depreciation in local currency) and 02 (Group depreciation in group currency). 


Hemachandra K. Srinivasa

Hemachandra K. Srinivasa is a principal consultant at Infosys Limited with more than 12 years of SAP FI/CO experience. He has experience in manufacturing and process industry working along with worldwide implementation and rollouts. He holds a bachelor’s degree in industrial production engineering and a master’s in financial accounting.

 

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