What is special depreciation in SAP (FI-AA - Asset Accounting)?

SAP Term: special depreciation

• Component: FI-AA

• Component Name: Asset Accounting

• Description: The depreciation for tax reasons that is allowed in addition to ordinary depreciation. Typically, this form of depreciation allows depreciation by percentage within a tax concession period, without taking into account the actual wear and tear on the asset.

Smart SAP Assistant

• Key Concepts: 
  Special depreciation is a feature of SAP FI-AA Asset Accounting that allows for accelerated depreciation of an asset. This means that the asset can be depreciated at a faster rate than normal, allowing for a quicker write-off of the asset’s cost. This can be useful for businesses that need to quickly write off the cost of an asset in order to reduce their taxable income. 
  
  How to use it: 
  In order to use special depreciation in SAP FI-AA Asset Accounting, you must first set up the special depreciation rate in the system. This can be done by going to the “Special Depreciation” tab in the Asset Accounting configuration and entering the desired rate. Once this is done, you can then assign this rate to any assets that you wish to depreciate at a faster rate. 
  
  Tips & Tricks: 
  When setting up special depreciation in SAP FI-AA Asset Accounting, it is important to remember that the rate must be set up before it can be assigned to any assets. Additionally, it is important to note that special depreciation can only be used on certain types of assets, such as buildings and machinery. 
  
  Related Information: 
  For more information on special depreciation in SAP FI-AA Asset Accounting, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/FI_AA/731/en-US