O'Reilly logo

Asset Accounting Configuration in SAP ERP: A Step-by-Step Guide by Andrew Okungbowa

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 4

image

Depreciation

This chapter explains the steps involved in configuring and defining depreciation in asset accounting. In this chapter, you will learn how to:

  • Define ordinary depreciation
  • Define special depreciation
  • Understand planned and unplanned depreciation
  • Define valuation methods
  • Define a depreciation key
  • Define the cutoff value key
  • Specify asset-specific base value percentages

Defining Depreciation

Depreciation is simply a technical reduction in the book value of an asset due to wear and tear arising from its use over a period of time (often referred to as the useful economic life [UEL] of the asset). The UEL of an asset is the ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required