What is calculation method in SAP FI-AA - Asset Accounting?

SAP Term: calculation method

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A part of the depreciation key. The calculation methods are used to set the parameters of the depreciation calculation program. There are the following calculation methods at present: Base methods Declining-balance methods Maximum amount methods Multi-level methods Period control methods All calculation methods are chart of depreciation dependent, except for base methods.

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• Key Concepts: 
  Calculation method is a feature in SAP FI-AA Asset Accounting that allows users to define how depreciation is calculated for an asset. It is used to determine the amount of depreciation that should be charged for an asset over its useful life. The calculation method can be based on either straight-line or declining balance methods. 
  
  How to use it: 
  To use the calculation method, users must first define the depreciation key in the asset master record. This key contains the information about the calculation method, such as the depreciation base, the rate of depreciation, and any other relevant information. Once this is done, users can then enter the asset into the system and assign it a depreciation key. The system will then use this key to calculate the depreciation for the asset. 
  
  Tips & Tricks: 
  It is important to remember that different assets may require different calculation methods. For example, some assets may require a straight-line method while others may require a declining balance method. It is also important to remember that the calculation method can be changed at any time if needed. 
  
  Related Information: 
  For more information on how to use the calculation method in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.