What Is 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.

Each company code is assigned to on chart of depreciation.
 

Configuring Chart of Depreciation 

1) Copy Reference Chart of Depreciation/Depreciation Areas

The SAP system provides country-specific charts of depreciation with predefined depreciation areas. These charts of depreciation are only references for customer charts of depreciation and therefore cannot be used directly. When you create your own chart of depreciation, you must copy a reference chart of depreciation.

When you create a chart of depreciation, the system copies all the depreciation areas from the standard chart of depreciation that you use as a reference. You must delete any depreciation areas you do not need from your chart of depreciation.

The chart of depreciation BP01 has been created as a copy of the chart of depreciation 0DE.

Steps:

1. To carry out the activity, use the following option:

IMG Menu Path - Financial Accounting -> Asset Accounting -> Organizational Structures -> Copy Reference Chart of Depreciation/Depreciation Areas

2. On the Choose Activity screen, select Copy Reference Chart of Depreciation.

3. On the Organizational object Chart of depreciation screen, choose the Organizational object -> Copy org. object

4. On the Copy dialog box, enter the following:

From Chart of dep.          0US

To Chart of dep.               BP01

5. Choose Continue, and then Back.

6. On the Choose Activity screen, select Specify Description of Chart of Depreciation.

7. On the Change View “Chart of depreciation: Specify name”: Overview screen, select the line with field ChDep value BP01.

8. Enter a description for the BP01 chart:

ChDep  Description

BP01      Base Line Chart of depreciation

9. Choose Save.

10. On the Prompt for Customizing request dialog box, enter desired request information, then choose Save.

11. On the Choose Activity screen, select Copy/Delete Depreciation Areas.

12. On the change View “Define Depreciation Areas”: Overview screen, review the depreciation areas, and delete or add depreciation areas, as required.

13. Choose Save.

14. The chart of depreciation has been created. 

2) Assign Chart of Depreciation to Company Code

When you assign a chart of depreciation, you define a company code for Asset Accounting. The chart of accounts 0010 has been assigned to the company code BP01.

The company code must be defined in Financial Accounting.

Steps:

1. To carry out the activity, use one of the following options:

IMG Menu Path: 
Financial Accounting -> Asset Accounting -> Organizational Structures -> Assign Chart of Depreciation to Company Code (Transaction OAOB)

2. On the Change View “Maintain company code in Asset Accounting”: Overview screen, make the following entries:

CoCd     Company name                      Chrt dep           Description

BP01      SAP Best Practices                  BP01               Baseline Chart of depreciation

3. Choose Save.

SAP FI/CO Tips

See Also
Stop Depreciation For Some Fixed Asset

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