WHAT IS ASSET DEPRECIATION RUN? TELL ME IN DETAILED.
Answers were Sorted based on User's Feedback
Answer / rajesh
When an asset is purchased and used in our organisation,
due to wear and tear the life the asset is decrease. This
is called depreciation.
When depreciation is configured in SAP we will run for
every month to calculate the depreciation and the
depreciation value is deducted from asset
For Ex: Asset Dep = Cost of asset - Scrap value / Life of
asset
If an asset is purchased for 10000 and the life is 10 yrs
after end of life the scrap value is 0 the the depreciation
per annum = 10000-0/10 = 1000
If it is worng send response immediately
Is This Answer Correct ? | 25 Yes | 3 No |
Answer / m
A continuation to the explaination provided above
The assets are on the balance sheet and so when they fall in
value, that's an expense for the company - the 1,000/yr in
the example above.
The asset depreciation run will generate an accounting
transaction to lower the value of assets as maintained in
the asset account and charge that to an asset depreciation
account - en expense. Even though no cash flow is involved,
this transaction lowers the profit (incr loss) of the business.
Is This Answer Correct ? | 13 Yes | 0 No |
Answer / anant maheshwari
A continuation to the explaination provided above
There are two parameters to depericiate the assets on the
basis of Straight Line Method / Written Down Method
Generally Used in Company.
You have to define Key in SAP, so system pick the
parameters accordingly and when we run depericiation with
AFAB It will cal. the figure accordingly.
Is This Answer Correct ? | 10 Yes | 1 No |
If a company has 4 company codes, 12 plants and 3 sales offices. In this situation how many profit centers and cost centers does this company contains?
what is meaning of residual payments
How do you processs about the Bills of Exchange in SAP? What r the various Transaction Codes u use for BOE in SAP
Is it possible to create multiple assets in a single transaction? : fi- asset accounting
1. For a client creation of many group under one General Ledger
Could any one explain Process Flow and Integration of HR with FI.
What is GR/IR documet? why to use it? when to use it? what is the Menu- Path for GR/IR document? Please some body explain it...
What is the purpose of Activity Type?
can we post input taxes during the making of down payment to vendors ex: down payment to vendor is 100000 on this the input tax is 10000 so we have to pay only 90000 for calculating like this what procdure we have to do kindly explain any one
what is cycle count in SAP
FBN! - Number ranges :- Hi All When i am going for posting the number ranges in FBN1. After I enter the company code I enter. Then when I go to intervals I am seeing many number ranges already present. Even X2,X3…Should I delete all those present & enter new ones from my company code or how to go about.
What is the reason behind reclassifying payables & receivables as FI month end activity?