What is base depreciation area in SAP FI-AA - Asset Accounting?

SAP Term: base depreciation area

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The depreciation area that the system takes the values from when revaluating an asset for inflation. &EXAMPLE& Assume you have an asset whose net book value you record in depreciation area 01. You want to revaluate this asset on the basis of its net book value: This means that area 01 would be the base depreciation area.

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• Key Concepts: 
  Base depreciation area is a feature of SAP Asset Accounting (FI-AA) that allows users to define different depreciation areas for each asset. Each depreciation area can have its own set of rules and parameters, such as depreciation methods, start and end dates, and more. This allows users to customize the depreciation calculation for each asset. 
  
  How to use it: 
  To use the base depreciation area feature, users must first create a new depreciation area in the system. This can be done by going to the Asset Accounting menu and selecting “Create Depreciation Area”. Once the area is created, users can assign it to an asset by going to the asset master record and selecting the “Depreciation Area” tab. 
  
  Tips & Tricks: 
  When creating a new depreciation area, it is important to consider how it will be used. For example, if the area will be used for tax purposes, it may need to have different rules than an area used for financial reporting. It is also important to consider how often the area will need to be updated, as this will affect how often the asset master record needs to be changed. 
  
  Related Information: 
  For more information on base depreciation areas in SAP Asset Accounting, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ERP_Financials/6.0_SPS00/en-US/f8d7f9a3e2b14c8a9f3d7c2b5f9e4d1a.html