What is units-of-production depreciation in SAP SRD-FIN-FA - FIN-Fixed Assets?

SAP Term: units-of-production depreciation

• Component: SRD-FIN-FA

• Component Name: FIN-Fixed Assets

• Description: The reduction in the value of an asset based on output produced rather than over time.

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• Key Concepts: 
  Units-of-production depreciation is a method of calculating depreciation in SAP Fixed Assets (SRD-FIN-FA) that is based on the number of units produced by an asset. This method is used when the useful life of an asset is determined by the number of units it produces, rather than a fixed period of time. 
  
  How to use it: 
  In SAP Fixed Assets, units-of-production depreciation can be set up by entering the total number of units expected to be produced by the asset over its useful life. The depreciation amount is then calculated based on the number of units produced in each period. 
  
  Tips & Tricks: 
  When setting up units-of-production depreciation in SAP Fixed Assets, it is important to ensure that the total number of units expected to be produced over the asset’s useful life is accurate. This will ensure that the depreciation amount calculated is accurate. 
  
  Related Information: 
  For more information on setting up and using units-of-production depreciation in SAP Fixed Assets, please refer to the SAP Help documentation.