What Is Chart Of Depreciation ?
Answers
The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The chart of depreciation enables you to manage all rules for the valuation of assets in a particular country.
You must assign a chart of depreciation to each company code that is defined in Asset Accounting. SAP provides country-specific charts of depreciation with predefined depreciation areas. These charts of depreciation serve only as a reference for creating your own charts of depreciation, and are therefore not directly accessible in the SAP system. When creating a chart of depreciation, you have to copy the reference chart of depreciation.
When you create a chart of depreciation, the system copies all of the depreciation areas in the reference chart of depreciation. You have to delete any depreciation areas that you do not need in your chart of depreciation. Depreciation areas that are not used can still be activated at a later point in time (after the production startup). A newly activated depreciation area can take over values from another depreciation area.
SAP has provided chart of depreciation for various countries. Unfortunately for India it has not provided any chart of depreciation. Therefore we use German chart of depreciation.
Chart of Depreciation defines the various depreciation areas and valuation methods for assets. In SAP, they are defined for each country at client level and can be modified to suit the requirements.
The various features of chart of depreciation are as under:
1. The chart of depreciation is a directory of depreciation areas organized according to business management requirements.
2. The characteristics and significance of the individual depreciation area is defined in each chart of depreciation. A depreciation area is always assigned to only one chart of depreciation.
3. Depreciation keys for automatic calculation of depreciation are also defined in chart of depreciation. They are based on elements for calculation (calculation methods, period controls, and so on) that are available client-wide.
4. There are specific objects in the chart of depreciation for special calculations of asset values
Answer:
The chart of depreciation enables you to manage all rules for the valuation of assets in a particular country. You must assign a chart of depreciation to each company code that is defined in Asset Accounting. SAP provides country-specific charts of depreciation with predefined depreciation areas.
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