There are various methods of depreciation calculation in SAP that we can use. It depends on the business itself as to which method works best for them.
Methods of Depreciation Calculation in SAP
A calculation method forms part of a depreciation key and you use it to define the parameters for depreciation calculation. There are multiple Depreciation methods available in SAP. Now we will discuss them all in detail below.
- Base Method
- Declining-balance methods
- Maximum Amount Method
- Multi-Level method
Planned & Unplanned Depreciation Calculation in SAP
SAP supports two kinds of depreciation – planned and unplanned. You can calculate planned depreciation (ordinary & special) automatically through depreciation keys. It contains the value settings and calculation rules for arriving at the depreciation amount.
However, you can also manually undertake unplanned depreciation, including reduction of APC transfer of reserves.
Learn in detail about this very important subject- Methods of Depreciation Calculation in SAP.