Setting Up and Assigning the Chart of Depreciation in SAP FICO

The Chart of Depreciation in SAP FICO is a critical component of asset accounting. It defines the rules for calculating depreciation for fixed assets according to accounting and legal requirements. This guide provides step-by-step instructions for setting up and assigning the Chart of Depreciation in SAP FICO, along with examples.

1. Setting Up the Chart of Depreciation

To define the rules for asset depreciation, you must configure the Chart of Depreciation in SAP.

Step 1: Access the Chart of Depreciation Configuration

Use transaction code SPRO to access the configuration menu. Navigate to the following path:

Financial Accounting (New) > Asset Accounting > Valuation > Define Chart of Depreciation

Step 2: Create a New Chart of Depreciation

Click on "New Entries" and provide the following details:

  • Chart of Depreciation: A unique identifier for the chart.
  • Description: A meaningful name for the chart.
  • Country: The country where the chart will be used (important for legal compliance).

Example:

    Chart of Depreciation: ZUS
    Description: US Depreciation Chart
    Country: US

Step 3: Copy Depreciation Areas

Copy depreciation areas from an existing Chart of Depreciation or create new ones as needed. Depreciation areas define how depreciation values are calculated for different accounting principles.

Example:

    Depreciation Area 01: Book Depreciation
    Depreciation Area 15: Tax Depreciation

Step 4: Define Depreciation Keys

Assign depreciation keys to specify the calculation methods for straight-line or declining-balance depreciation.

Example:

    Depreciation Key: LINR
    Description: Straight-Line Depreciation
    Base Method: Based on Acquisition Cost

Step 5: Define Account Determination

Set up account determination to link depreciation postings to General Ledger accounts.

Example:

    Account Determination: ZUS1
    Balance Sheet Account: 100000 (Fixed Assets)
    Depreciation Account: 400000 (Depreciation Expense)
    Accumulated Depreciation: 200000

Step 6: Save the Chart of Depreciation

Save your configuration. The Chart of Depreciation is now ready for assignment.

2. Assigning the Chart of Depreciation

After setting up the Chart of Depreciation, it must be assigned to the appropriate company codes.

Step 1: Access the Assignment Screen

Use transaction code OAOB to assign the Chart of Depreciation to company codes.

Step 2: Assign the Chart of Depreciation

Select the company code and enter the Chart of Depreciation created earlier.

Example:

    Company Code: 1000
    Chart of Depreciation: ZUS

Step 3: Activate Asset Accounting

Activate asset accounting for the company code to enable depreciation calculations. Use transaction code OAAQ.

Example:

    Company Code: 1000
    Activation Status: Active

Step 4: Save the Assignment

Save the assignment to complete the process.

3. Using the Chart of Depreciation

Once the Chart of Depreciation is assigned, it will be used in asset accounting transactions.

Step 1: Create a Fixed Asset

Use transaction code AS01 to create a fixed asset. Assign the relevant asset class and account determination.

Example:

    Asset Class: 1000
    Account Determination: ZUS1
    Depreciation Key: LINR
    Useful Life: 5 Years

Step 2: Post an Acquisition

Use transaction code F-90 to post an acquisition for the asset. The depreciation will calculate based on the Chart of Depreciation rules.

Example:

    Asset: 200001
    Acquisition Cost: $50,000
    Depreciation Method: Straight-Line
    Monthly Depreciation: $833.33

Step 3: Run Depreciation

Use transaction code AFAB to execute depreciation for a period. The system will post depreciation values to the General Ledger.

Example Output:

    Period: November 2024
    Depreciation Posted: $833.33
    GL Account: 400000 (Depreciation Expense)

4. Conclusion

Setting up and assigning the Chart of Depreciation in SAP FICO ensures compliance with accounting standards and provides accurate asset valuation. Following these steps will help you configure and use the Chart of Depreciation effectively in your financial processes.




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