What is pro rata temporis in SAP FI-AA - Asset Accounting?

SAP Term: pro rata temporis

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A period control provided in the SAP System. Using this method, asset values during the course of the fiscal year are calculated proportionally using the first day of the period as the starting date. For acquisitions, the SAP System sets the start date for depreciation asset value date to the beginning of the period of the acquisition month. For retirements in the first half of a period, the full depreciation is calculated for the retirement month. For retirements in the second half of the period, no depreciation is calculated.

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• Key Concepts: 
  Pro rata temporis is a Latin phrase meaning “in proportion to the time”. In SAP FI-AA Asset Accounting, it is used to calculate the depreciation of an asset over a period of time. It is based on the assumption that the asset will be used for the same amount of time during each period of its useful life. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, pro rata temporis is used to calculate the depreciation of an asset over a period of time. The calculation takes into account the number of days in each period and the total number of days in the asset’s useful life. The depreciation amount for each period is then calculated by dividing the total depreciation amount by the total number of days in the asset’s useful life and multiplying it by the number of days in that period. 
  
  Tips & Tricks: 
  When calculating depreciation using pro rata temporis, it is important to ensure that all periods are accounted for and that all calculations are accurate. It is also important to consider any changes in the asset’s useful life or value that may occur over time. 
  
  Related Information: 
  For more information on pro rata temporis and other methods of calculating depreciation in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.