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

SAP Term: depreciation area

• Component: FI-AA

• Component Name: Asset Accounting

• Description: An area showing the valuation of a fixed asset for a particular purpose for example, individual financial statements, balance sheets for tax purposes, or management accounting values. Along with "real" depreciation areas, you can define derived depreciation areas. The values for these derived areas are calculated from those of two or more real areas.

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• Key Concepts: 
  Depreciation area is a sub-component of the FI-AA Asset Accounting component in SAP. It is used to manage the depreciation of fixed assets. It is a logical grouping of assets that are depreciated in the same way. Each depreciation area has its own set of rules and parameters for calculating depreciation. 
  
  How to use it: 
  In order to use the depreciation area, you must first create a depreciation area in the system. This can be done by entering the necessary information such as the depreciation key, start date, and end date. Once the depreciation area is created, you can assign assets to it and begin calculating depreciation for those assets. 
  
  Tips & Tricks: 
  It is important to remember that each depreciation area has its own set of rules and parameters for calculating depreciation. Therefore, it is important to ensure that the correct parameters are used for each depreciation area in order to ensure accurate calculations. 
  
  Related Information: 
  For more information on how to use the depreciation area in SAP, please refer to the SAP Help documentation or contact your local SAP support team.