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reg accumulated depreciation

Former Member
0 Kudos

Dear Friends,

Pl let me know the purpose of accumulated depreciation,

why we consider the accumulated depreciation while we post depreciation using AFAB.

Thanks,

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

For posting an entry in FI in SAP, double entry system is followed. So for posting an entry two line items will be there. One with Debit amount and other with credit amount. Now Depreciation is an expense so then Depreciation which is an expense , Depreciation Account will be debited and then credit would be the Accumulated GL which is maintained in the AO90 against the account determination. In FSV only the GL's are displayed, so the Asset which is purchased then the Acquisition GL is debited so it will be displayed on Asset Side of Balance Sheet whereas Accumulated Depreciation GL will be shown on the Liabilities side of Balance sheet. So the NBV of the Asset can be derived on the basis of difference between Asset and Liability GL's.

Regards,

Malhar.

Former Member
0 Kudos

thanks

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi H K

Your AFAB run affects your Depreciation account and Acc Depreciation account. Depreciation account is a P&L account to reflect your depreciation as an expense item on your P&L statement. Accumulated Depreciation is a BS account which is displayed along with the Asset value so that you get the value of asset on that date when you generate the Balance Sheet.

So, actually, the purpose and placement of both these accounts is different.

Regards

Sowmya