SAP Financial Accounting (SAP FI) Practice Exam

Which object must be added to the existing company code to process fixed assets in SAP?

1. Asset ledger

2. Chart of depreciation

3. Depreciation schedule

4. Asset management system

The correct answer is: Chart of depreciation

When processing fixed assets in SAP, the chart of depreciation is a fundamental object that must be added to the existing company code. The chart of depreciation defines the rules for calculating asset depreciation for a group of assets and is crucial for the accurate recording of asset values and their depreciation over time. Each company code is linked to exactly one chart of depreciation, which outlines the specific depreciation methods, useful life, and other accounting principles pertinent to fixed assets in that jurisdiction. This connection ensures that all financial reporting related to fixed assets adheres to the legal and financial requirements specified by the organization. Other elements, such as the asset ledger or depreciation schedules, are important in the overall fixed asset management process but cannot stand alone without the chart of depreciation, which establishes the structural basis through which asset data will be managed and reported. The asset management system refers more generally to the integrated functionalities that handle all aspects of asset management, further emphasizing the foundational role of the chart of depreciation in fixed asset accounting.