What is straight-line depreciation from APC in SAP FI-AA - Asset Accounting?

SAP Term: straight-line depreciation from APC

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A uniform distribution of the acquisition and production costs of a fixed asset over its entire useful life. The periodic depreciation amounts are equal to the acquisition and production costs divided by the entire useful life. If there are subsequent acquisitions to the asset, the depreciation amounts increase by the amount of the subsequent acquisition divided by the original useful life. The actual depreciation period the period up to the point when the book value reaches zero must be increased if there are subsequent acquisitions.

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• Key Concepts: 
  Straight-line depreciation from APC is a method of calculating the depreciation of an asset over its useful life. This method is used in SAP's FI-AA Asset Accounting component and is based on the assumption that the asset will be depreciated evenly over its useful life. The amount of depreciation is calculated by dividing the cost of the asset by its estimated useful life. 
  
  How to use it: 
  In order to use straight-line depreciation from APC, you must first enter the cost of the asset into SAP's FI-AA Asset Accounting component. Once this is done, you can then enter the estimated useful life of the asset and SAP will automatically calculate the amount of depreciation for each period. 
  
  Tips & Tricks: 
  When using straight-line depreciation from APC, it is important to remember that the estimated useful life should be based on realistic assumptions about how long the asset will be used. If the estimated useful life is too short, then the amount of depreciation may be too low and vice versa. 
  
  Related Information: 
  Straight-line depreciation from APC is just one of many methods used to calculate depreciation in SAP's FI-AA Asset Accounting component. Other methods include accelerated depreciation, declining balance, and sum-of-the-years digits.