What is chart of depreciation in SAP FI-AA - Asset Accounting?

SAP Term: chart of depreciation

• Component: FI-AA

• Component Name: Asset Accounting

• Description: An object that contains the defined depreciation areas. It also contains the rules for the evaluation of assets that are valid in a specific country or economic area. Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation. The chart of depreciation and the chart of accounts are completely independent of one another.

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• Key Concepts: 
  A chart of depreciation is a list of depreciation methods and rates used to calculate the depreciation of an asset over its useful life. It is used in SAP's FI-AA Asset Accounting component to determine the amount of depreciation to be charged for each asset. The chart of depreciation is also used to determine the useful life of an asset and the residual value at the end of its useful life. 
  
  How to use it: 
  The chart of depreciation is used in SAP's FI-AA Asset Accounting component to determine the amount of depreciation to be charged for each asset. The chart of depreciation can be set up in the system by entering the depreciation methods and rates for each asset class. The system then uses these values to calculate the amount of depreciation for each asset. 
  
  Tips & Tricks: 
  It is important to ensure that the chart of depreciation is set up correctly in order to ensure accurate calculations. It is also important to review and update the chart of depreciation periodically as assets may change over time. 
  
  Related Information: 
  The chart of depreciation is closely related to other components in SAP's FI-AA Asset Accounting, such as asset classes, asset master data, and asset accounting postings. It is important to understand how these components interact with each other in order to ensure accurate calculations.