How depreciation is posted in sap?


Depreciation is a month end process. Every month end, depreciation run is executed which performs depreciation of fixed asset and corresponding accounting document for depreciation is posted.

What parameters need to be maintained for depreciation calculation?

For calculation of depreciation amount, system needs

— Portion of APC (Acquisition & Production cost) which is yet to be depreciated

— Useful life

— Depreciation key

 

Now let’s understand what steps need to be executed to post depreciation in sap.

Depreciation run is executed using T code: AFAB

depreciation run AFAB

Planned depreciation:

Every month end, planned depreciation is posted.

Planned depreciation cannot be executed for specific asset. Planned depreciation run is always carried out for all the asset of the company code. If a single asset has error then planned depreciation will fail leading and no asset will get depreciated.

Next month depreciation cannot be executed until & unless depreciation for all previous periods is complete.

 

Repeat depreciation:

When depreciation is executed successfully but some asset transactions were posted after depreciation run. Since these asset transactions were posted after depreciation run hence these transactions were not included in depreciation amount calculation.

It often happens that depreciation was executed on last day of month but user posted some asset transaction after depreciation run. Hence depreciation already posted for the period needs to be corrected.

In order to post delta depreciation (depreciation to be posted – depreciation which were already posted), depreciation run is executed in repeat mode.

 

Restart depreciation:

If depreciation is not complete due to some reason like power failure, depreciation program forcefully stopped system crash etc. Then deprecation run can be executed in restart mode so that depreciation can be completed successfully.

 

Unplanned depreciation:

In case of occurrence of some unforeseen or unplanned event with an asset, unplanned depreciation needs to be posted to the particular asset. To handle such situations, sap has the functionality to post unplanned depreciation to specific asset.

Unplanned depreciation is posted to specific asset using T code: ABAA

But using ABAA will not generate any financial accounting document. Accounting document will get generated after month end depreciation run is performed.