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

SAP Term: depreciation area type

• Component: FI-AA

• Component Name: Asset Accounting

• Description: An additional attribute used in the Annex 16 legal report to classify depreciation areas for fixed assets. Annex 16 uses the depreciation area type to determine how each depreciation area is used.

Smart SAP Assistant

• Key Concepts: 
  Depreciation area type is a feature of SAP Asset Accounting (FI-AA) that allows users to define different depreciation areas for different assets. Each depreciation area type has its own set of rules and parameters that determine how the asset is depreciated. The depreciation area type also determines which depreciation areas are available for the asset. 
  
  How to use it: 
  To use the depreciation area type feature, users must first define the different types of depreciation areas they want to use. This can be done in the Customizing menu under Asset Accounting. Once the types are defined, users can assign them to specific assets in the Asset Master Data screen. 
  
  Tips & Tricks: 
  When defining the different types of depreciation areas, it is important to consider how each type will affect the asset’s depreciation calculation. For example, some types may allow for accelerated depreciation while others may not. 
  
  Related Information: 
  For more information on SAP Asset Accounting and how to use the depreciation area type feature, please refer to the SAP Help Portal or contact your local SAP consultant.