SAP Financial Accounting (SAP FI) Practice Exam

Can an asset be associated with more than one depreciation area?

1. No, each asset can have only one area

2. Yes, many assets can share depreciation areas

3. Yes, an asset can have multiple depreciation areas

4. Depends on the company’s accounting policy

The correct answer is: Yes, an asset can have multiple depreciation areas

An asset can indeed be associated with multiple depreciation areas in SAP Financial Accounting (SAP FI). Depreciation areas allow businesses to calculate and manage different depreciation rules for the same asset, reflecting various accounting requirements such as tax reporting, financial accounting, and management accounting. For instance, a company might have different depreciation methods for financial reporting versus tax reporting. By using multiple depreciation areas, organizations can ensure that they comply with various legal, fiscal, and management requirements while tracking an asset's value accurately over time. This flexibility is crucial in providing a comprehensive view of the asset's depreciation based on the multiple criteria or frameworks that the company adheres to. The other options do not accurately describe the relationship between assets and depreciation areas. A single asset being restricted to one area would limit the financial reporting capabilities needed, and stating that depreciation areas can only be shared among many assets does not capture the individual asset’s multifaceted accounting requirements accurately. Lastly, though company policy can influence how depreciation is handled, it does not dictate the technical capability of associating multiple depreciation areas with a single asset in the SAP FI system.