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

SAP Term: variable depreciation

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The calculation of depreciation amounts that are proportional to the multiple-shift usage of the asset. The SAP System allows for both depreciation that is independent of the usage of the asset and depreciation that is variable based on usage. You can split the depreciation of an asset into a fixed portion and a variable portion. The SAP System then multiplies the variable portion by a multiple-shift factor.

Smart SAP Assistant

• Key Concepts: 
  Variable depreciation is a method of depreciation in SAP Asset Accounting (FI-AA) that allows for the depreciation amount to be adjusted based on the actual usage of the asset. This method is useful for assets that are used at different rates throughout their useful life, such as vehicles or machinery. 
  
  How to use it: 
  In order to use variable depreciation, you must first set up a depreciation key in the Asset Accounting module. This key will define the parameters of the depreciation, such as the rate and period of depreciation. Once this is done, you can assign this key to an asset and begin depreciating it using variable depreciation. 
  
  Tips & Tricks: 
  When setting up a variable depreciation key, it is important to consider the expected usage of the asset. This will help you determine the appropriate rate and period of depreciation. Additionally, it is important to keep track of any changes in usage that may affect the depreciation amount. 
  
  Related Information: 
  For more information on setting up and using variable depreciation in SAP Asset Accounting, please refer to SAP Help documentation. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.