Finance & Controlling
What is Depreciation Area?
A valuation of an asset for a specific purpose, such as book, tax, or group reporting, within a chart of depreciation.
Each area has its own depreciation terms and can post to a specific ledger. Area 01 is commonly the book depreciation area. Testing compares planned values per area with expected results.
Related terms
Asset Accounting
The FI sub-ledger for managing fixed assets through acquisition, depreciation, transfer, and retirement.
Parallel Accounting
Maintaining books according to several accounting principles, such as IFRS and local GAAP, in the same system.
Depreciation Key
A key that defines the calculation method for depreciation, such as straight-line or declining balance.
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