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

SAP Term: depreciation base

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The base value for calculating periodic depreciation. The following base values are possible, for example: Acquisition and production costs Net book value Replacement value

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• Key Concepts: 
  Depreciation base is a term used in SAP FI-AA Asset Accounting. It is the amount of an asset that is subject to depreciation. This amount is calculated by subtracting the residual value of an asset from its acquisition cost. The depreciation base is used to calculate the depreciation amount for an asset over its useful life. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, the depreciation base can be found in the asset master record. The depreciation base can be changed at any time, and the new value will be used to calculate the depreciation amount for the asset. The depreciation base can also be used to calculate the tax value of an asset. 
  
  Tips & Tricks: 
  When calculating the depreciation base, it is important to consider any additional costs associated with the asset, such as installation costs or transportation costs. These costs should be added to the acquisition cost of the asset before subtracting the residual value. 
  
  Related Information: 
  The depreciation base is closely related to other terms in SAP FI-AA Asset Accounting, such as acquisition cost, residual value, and useful life. It is important to understand these terms in order to accurately calculate the depreciation base for an asset.