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The carpeting becomes worn, and you have to replace some of the smaller accessories, such as lights. The value of the car at the end of its life is equal to the salvageable parts that remain.

Three forms of depreciation are available in SAP, including ordinary depreciation, special depreciation and unplanned depreciation.

These charts of depreciation serve only as a reference for creating your own charts of depreciation, and are therefore not directly accessible in the SAP system.

When creating a chart of depreciation, you have to copy the reference chart of depreciation.

SAP contains a specialized tool for calculating depreciation once for every month of analysis.

The exact method you use in SAP, however, depends on the data needed for the depreciation run, which in turn depends on the type and nature of the asset. In a nutshell, it is an asset's gradual fall in book value.

An asset may fall in value as its economic usefulness declines over time. When you first buy the car, it's value is close to ,000.

Over the next few years, however, the car slowly becomes more susceptible to wear and tear. This dramatically decreases the value of the car as it is no longer useable.

SAP provides country-specific charts of depreciation with predefined depreciation areas.

So in the first step you must create company code and then assign it.


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