SAP ERP Financials and FICO Handbook

1.7 FI-AA 55
button. In the repeat run, the system posts changes to depreciation, as compared
to the depreciation amounts from the previous run.
116. What is an asset class?
An asset class is the main criterion for classifying fixed assets according to legal and
management requirements. The asset class controls parameters and default values
for asset masters. Each asset master record must be assigned to one asset class.
117. How do you process fixed asset depreciation?
Every asset transaction immediately causes a change to the forecast depreciation. General
ledgers are updated only when you run depreciation through transaction code:
AFAB. It is always advisable to run depreciation in test mode to know whether any
errors exist or not. Once you are satisfied with the test result, you can run depreciation
in update mode/production mode. During update mode, plan or forecast depreciation
and post to the general ledger along with interest and revaluation, if any.
When the system posts depreciation, it creates collective documents. It does
not create separate documents for each asset.
The depreciation posting run is done via transaction code AFAB. The depreciation
program creates batch input sessions for posting depreciation and interest to
the G/L accounts in financial accounting and/or to CO.
118. What is an asset master? What does it control for sub asset masters?
An asset master represents the master record and information about a particular
asset. According to the screen layout of the asset master, it controls the following
for sub assets:
■ Sub assets master number assignment
■ Assignment of the depreciation key
■ Determination of life of assets
■ Determination of assignment of group asset
119. How many depreciation areas can be defined for a company code?
Depreciation areas are not defined for company codes. Rather, depreciation areas
are defined for a chart of depreciation (COD). While creating asset management
company code, you are assigning a COD to company code. Once you assign a COD