CHAPTER 4
Depreciation
This chapter explains the steps involved in configuring and defining depreciation in asset accounting. In this chapter, you will learn how to:
- Define ordinary depreciation
- Define special depreciation
- Understand planned and unplanned depreciation
- Define valuation methods
- Define a depreciation key
- Define the cutoff value key
- Specify asset-specific base value percentages
Defining Depreciation
Depreciation is simply a technical reduction in the book value of an asset due to wear and tear arising from its use over a period of time (often referred to as the useful economic life [UEL] of the asset). The UEL of an asset is the ...
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