AA978 - Caution: Depreciation is reduced in area & !

SAP Error Message - Details

• Message type: E = Error

• Message class: AA - Messages for Asset Accounting

• Message number: 978

• Message text: Caution: Depreciation is reduced in area & !

What causes this issue?

Due to the depreciation terms selected, depreciation is reduced in area
&V1&. The specifications in a derived depreciation area have an affect
on the calculation of depreciation in depreciation area &V1&. The
system reduced the depreciation in area &V1& in order to comply with
the specifications in the derived area.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

There are a number of ways to correct this error, if this reduction is
not desired or allowed.
For example: The depreciation keys are not correct for the areas on
which the derived area is based. If one of these areas has a manual
key, for example, or if the depreciation in one area is higher than in
the other (which is actually not allowed according to the definition of
the derived area), this can lead to the reduction of depreciation.
In this case, check the choice of depreciation keys.
Or: The useful life specified in the dependent areas is different. Due
to this difference, the depreciation in one area is again higher than
in the other dependent area. If this situation conflicts with the
definition of the derived area, depreciation is also reduced.
In this case, check the useful life in the dependent areas.

Error message extract from SAP system. Copyright SAP SE.

AnswerBot

• What is the cause and solution for SAP error message AA978 - Caution: Depreciation is reduced in area & ! ?

  The SAP error message AA978, which states "Caution: Depreciation is reduced in area &!", typically occurs in the Asset Accounting (FI-AA) module when there is a discrepancy or issue related to the depreciation calculation for an asset in a specific depreciation area. This message serves as a warning that the depreciation amount for the asset in the specified area has been reduced, which may not be expected or desired.
  Causes:
  
  Manual Adjustments: Manual adjustments to the asset's depreciation settings or values may have led to a reduction in depreciation.
  Changes in Depreciation Method: If the depreciation method for the asset has been changed, it may result in a different depreciation calculation.
  Asset Revaluation: If the asset has been revalued, it may affect the depreciation calculation, leading to a reduction.
  Transfer of Asset: If the asset has been transferred between different areas or company codes, it may affect the depreciation.
  Configuration Issues: Incorrect configuration in the asset accounting settings or depreciation areas may lead to unexpected depreciation calculations.
  
  Solutions:
  
  Review Asset Master Data: Check the asset master data for any recent changes that may have affected the depreciation calculation.
  Check Depreciation Areas: Review the settings for the specific depreciation area mentioned in the error message to ensure they are configured correctly.
  Analyze Depreciation Calculation: Use transaction codes like AW01N (Asset Explorer) to analyze the depreciation calculation and identify any discrepancies.
  Consult with Finance Team: If manual adjustments were made, consult with the finance team to understand the rationale behind those changes.
  Run Depreciation Simulation: Use the depreciation simulation feature to see how changes in settings or values would affect depreciation.
  Check for Updates: Ensure that the system is updated with the latest patches or notes from SAP that may address known issues related to depreciation calculations.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as AW01N (Asset Explorer), OADB (Depreciation Areas), and OAYZ (Depreciation Key).
  SAP Notes: Check SAP Notes for any known issues or updates related to the AA978 message.
  Documentation: Review SAP documentation on Asset Accounting for detailed information on depreciation methods, areas, and calculations.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a consultant who specializes in Asset Accounting for further assistance.