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

SAP Term: derived depreciation area

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A depreciation area in which depreciation is calculated based on two or more real depreciation areas using a calculation formula. You can use derived depreciation areas, for example, to calculate special reserves as the difference between tax and book depreciation. The rule for negative or positive book value in the derived depreciation area is checked each time a posting is made or depreciation is changed in the corresponding real area.

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• Key Concepts: 
  Derived depreciation area is a feature of SAP Asset Accounting (FI-AA) that allows users to create a separate depreciation area for each asset class. This allows users to define different depreciation methods and rates for each asset class, as well as to track the depreciation of each asset class separately. 
  
  How to use it: 
  To use derived depreciation area, users must first create a separate depreciation area for each asset class. This can be done in the Asset Accounting (FI-AA) module by navigating to the “Depreciation Areas” tab and selecting “Create”. Once the depreciation areas have been created, users can assign different depreciation methods and rates to each asset class. 
  
  Tips & Tricks: 
  When creating derived depreciation areas, it is important to ensure that the correct depreciation methods and rates are assigned to each asset class. This will ensure that the correct amount of depreciation is calculated for each asset class. Additionally, it is important to keep track of the different depreciation areas and their associated assets, as this will help users quickly identify which assets are associated with which depreciation area. 
  
  Related Information: 
  For more information on derived depreciation areas in SAP Asset Accounting (FI-AA), please refer to the SAP Help Portal or contact your local SAP support team.