How To Fix AC527 - Depreciation area &1 in ch.of dep. &2 is a derived area

SAP Error Message - Details

• Message type: E = Error

• Message class: AC - Error messages from Asset Customizing

• Message number: 527

• Message text: Depreciation area &1 in ch.of dep. &2 is a derived area

What causes this issue?

You specified area &V1& as the reference depreciation area for
transferring values or depreciation terms to another depreciation area.
Area &V1& is defined as a derived depreciation area. It does not manage
its own values or depreciation terms. Therefore, it cannot be used to
supply values or depreciation terms to another depreciation area.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Check your specifications and Customizing settings.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message AC527 - Depreciation area &1 in ch.of dep. &2 is a derived area ?

  The SAP error message AC527 indicates that there is an issue with the configuration of depreciation areas in the Asset Accounting module. Specifically, it states that the depreciation area you are trying to process is a derived area, which means it is dependent on another area for its values and cannot be processed independently.
  Cause:
  
  Derived Depreciation Area: The depreciation area you are trying to use is set up as a derived area. Derived areas are typically used to automatically calculate values based on another primary depreciation area (e.g., book depreciation area).
  Incorrect Configuration: There may be a configuration issue where the derived area is not properly linked to its source area, or the source area is not set up correctly.
  Posting Attempt: You may be attempting to post transactions directly to a derived area, which is not allowed.
  
  Solution:
  
  
  Check Configuration: 
  
  Go to the configuration settings in SAP for Asset Accounting (Transaction code: SPRO).
  Navigate to Financial Accounting (New) > Asset Accounting > Integration > Define Depreciation Areas.
  Verify the settings for the depreciation area in question and ensure that it is correctly defined as a derived area and linked to the appropriate source area.
  
  
  
  Posting to Source Area: 
  
  Instead of posting directly to the derived area, ensure that you are posting to the primary (source) depreciation area. The values for the derived area will be automatically calculated based on the source area.
  
  
  
  Review Depreciation Area Settings: 
  
  Check if the derived area is set up correctly in terms of its calculation method and the source area it derives from. Make sure that the source area is active and has valid settings.
  
  
  
  Consult Documentation: 
  
  Refer to SAP documentation or help resources for more detailed information on how derived depreciation areas work and how to configure them properly.
  
  
  
  Related Information:
  
  Depreciation Areas: In SAP, depreciation areas are used to manage different types of asset depreciation (e.g., book depreciation, tax depreciation). Derived areas are used to automatically calculate values based on other areas.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as AS01 (Create Asset), AS02 (Change Asset), and AS03 (Display Asset) to manage asset postings.
  SAP Notes: Check SAP Notes for any known issues or updates related to depreciation areas and error AC527.
  
  If the issue persists after checking the configuration and ensuring proper posting practices, it may be beneficial to consult with your SAP support team or a consultant who specializes in Asset Accounting.