A designation for the Classification of depreciation based on the reason for depreciation.
In SAP Business One, you can set up depreciation types with the following depreciation methods:
- Scheduled amortisation
- Linear period control
- Degressive Depreciation
- Multi-level
- Immediate write off
- Special depreciation
- Manual depreciation
The exact configuration and selection of the depreciation types are made in the asset master data of the respective asset. The system enables the use of various depreciation types, which are defined in the asset master data.
- SAP Business One supports the management of fixed assets and automated depreciation runs.
- The system generates periodic postings for impairment based on acquisition value and useful life.
- The depreciation types mentioned include straight-line depreciation and immediate depreciation.
Detailed resolution
SAP Business One offers functions for managing fixed assets and carrying out depreciation.
1. asset accounting and depreciation run
Asset accounting in SAP Business One is a core module for managing fixed assets. It includes the capitalisation of assets, the automatic depreciation run (depreciation) and the disposal or transfer of assets.
- Trigger/Input: Investment, end of period
- Output: Amortisation entries
(Source: Financial Processes & Accounting - PROC-FIN-01-ASG: Asset Accounting)
2. automatic depreciation run (depreciation)
The depreciation run automatically calculates and posts the depreciation of fixed assets. The system generates periodic postings to the corresponding expense accounts (table OFIX) based on the acquisition value and useful life of the asset.
(Source: Financial Processes & Accounting - PROC-FIN-01-ASG-DPR: Depreciation and amortisation)
3. types of amortisation
Various types of depreciation are supported in the context of asset accounting.
- Straight-line amortisation: With this method, an asset is depreciated on a straight-line basis over its useful life. If an asset is removed from a pool prematurely (e.g. through sale or defect), no retirement entry is made; the pool continues to be depreciated on a straight-line basis.
- Immediate amortisation: With immediate amortisation, the value of an asset is immediately zero.
