How To Fix AC537 - Depreciation area &1 in ch.of dep. &3 is not a real depreciation area

SAP Error Message - Details

• Message type: E = Error

• Message class: AC - Error messages from Asset Customizing

• Message number: 537

• Message text: Depreciation area &1 in ch.of dep. &3 is not a real depreciation area

What causes this issue?

Depreciation area &V1& was specified in the formula for derived
depreciation area &V2&. Depreciation area &V1& is itself a derived
area. This is an invalid specification.

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?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message AC537 - Depreciation area &1 in ch.of dep. &3 is not a real depreciation area ?

  The SAP error message AC537 indicates that there is an issue with the configuration of depreciation areas in Asset Accounting. Specifically, it means that the depreciation area specified in the error message is not set up as a "real" depreciation area in the system. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Configuration Issue: The depreciation area in question is not configured as a real depreciation area in the Asset Accounting settings. Real depreciation areas are used for actual financial reporting, while other types (like statistical areas) are used for reporting purposes only.
  Incorrect Assignment: The asset may be assigned to a depreciation area that is not intended for real depreciation.
  Master Data Issues: The asset master data may have incorrect settings or configurations that lead to this error.
  
  Solution:
  
  
  Check Depreciation Area Configuration:
  
  Go to the configuration settings in SAP (Transaction code: OAYZ).
  Verify the settings for the depreciation area in question. Ensure that it is marked as a "real" depreciation area.
  If it is not configured correctly, you may need to adjust the settings to make it a real depreciation area.
  
  
  
  Review Asset Master Data:
  
  Use transaction code AS03 to display the asset master data.
  Check the assigned depreciation areas and ensure that they are correctly set up.
  If necessary, modify the asset master data to assign the correct depreciation area.
  
  
  
  Consult with Financial Team:
  
  If you are unsure about the configuration or the implications of changing depreciation areas, consult with your finance or accounting team to ensure compliance with financial reporting standards.
  
  
  
  Testing:
  
  After making changes, perform a test run to ensure that the error no longer occurs and that the asset is depreciating correctly.
  
  
  
  Related Information:
  
  Depreciation Areas: In SAP, depreciation areas are used to manage different types of depreciation for financial reporting. Real depreciation areas affect the financial statements, while statistical areas do not.
  Transaction Codes:
  
  OAYZ: Configuration for depreciation areas.
  AS03: Display asset master data.
  AS02: Change asset master data (if modifications are needed).
  
  
  Documentation: Refer to SAP Help documentation for detailed information on Asset Accounting and depreciation area configuration.
  
  By following these steps, you should be able to resolve the AC537 error and ensure that your asset accounting is set up correctly.