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Deprecation areas in Asset accounting/management

Hello Gurus,

Can somebody pls explain me the correct definition of depreciation areas and the various types of depreciation areas in Asset accounting? I will award points for satisfying answwers...

thank u all

Naveen

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 01, 2007 at 07:01 PM
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  • author's profile photo Former Member
    Former Member
    Posted on Mar 01, 2007 at 07:41 PM

    Depreciation Area is an area showing the valuation of a fixed asset for a particular purpose.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2007 at 09:50 AM

    > Hello Gurus,

    >

    > Can somebody pls explain me the correct definition of

    > depreciation areas and the various types of

    > depreciation areas in Asset accounting? I will award

    > points for satisfying answwers...

    >

    > thank u all

    > Naveen.

    According to me depreciation area means that the configuration done for complying to our laws or top management. For examples our indian companies should maintain atleast two depreciation calculations to meet their laws viz..Companies Act and Tax Laws.

    In SAP Book depreciation is for complying to companies act and tax depreciation for Tax Laws.

    Please let me know if you not convinced.

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    • Former Member

      Hi,

      Simple,

      Using depreciation area, u can valuvate an asset from different point of view.

      For example.

      You have two different dep % to be charged on an asset( actual posting & statistical posting)

      so you can define 2 dep are.

      01- Book depre

      15 - tax depreciatin

      both dep area can be found in the asset master.

      for 01 - dep in asset master you assign one % and for 15 you assign another % throught dep key.

      01 - dep area will have real posting i.e the % asssigned to the asset will be calculated and posted effecting books od accounts(P&L , BALANCE SHEET)

      .

      15 - dep area % will be calculate but will not post(will not effect P&L, B/S), it is only for reporting purpose.

      By dep area you maintain 2 sets of books for assets accounting( in india , stat books & tax books)

      Like this you can defien dep area for your reporting purposes but one dep area(01) should have reale posting - that will effect you book of accounts.

      Please revert if you are not satisified else assign points.

      Thanks,

      Sujai C

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