From the course: SAP S/4 HANA Financial Accounting Overview

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The Chart of Depreciation

The Chart of Depreciation - SAP ERP Tutorial

From the course: SAP S/4 HANA Financial Accounting Overview

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The Chart of Depreciation

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- [Instructor] So one key element that is specific to Asset Accounting in terms of the organization is this element called a Chart of Depreciation. The concept to remember here is that Asset Accounting allows alternative valuation methods for different country and local requirements, which is very common for assets. So you create a Chart of Depreciation and each chart contains multiple Depreciation Areas allowing you to record parallel valuations according to different accounting principles. Because in different countries, with requirements, acquisition costs, depreciation methods, useful life, could be different in each country, so this is really to meet local and country requirements. And this is all fully integrated into the S/4 Universal Journal. So as an example, you could have one Chart of Depreciation for the US, because it is country specific, and the US it could be supported two ledgers. One which is the Leading Ledger with the US GAAP valuation and a separate Parallel Ledger…

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