A chart of depreciation is an SAP Asset Accounting structure that groups depreciation areas for different asset valuations. It is assigned to a company code. It does not replace a chart of accounts: the latter structures general ledger accounts, while depreciation areas represent valuation and posting views.
Why a chart is needed
A manufacturer may need to calculate asset values for statutory reporting, tax requirements and other accepted purposes. The chart of depreciation groups the relevant areas, rather than inventing a separate machine each time an accounting basis changes.
Company codes and areas
Each company code uses one operative chart of accounts and one chart of depreciation; more than one company code can use the same approved chart. A depreciation area represents a valuation view. Its relationship to accounting principles and ledgers is configured separately and must suit the actual SAP edition.
Example: a packaging machine
A factory buys a machine for ₹12,00,000. Finance may need one valuation for financial statements and another for local tax. These views may use different depreciation terms subject to approved policy. The example illustrates why areas matter; it does not prescribe particular area codes or posting rules.
Controls that protect reporting
Check which legal requirements justify each area, which areas post to the general ledger, and who owns method or useful-life changes. Reference country charts should be copied and appropriately configured, not assumed to satisfy company policy out of the box.
Consultant perspective
Test asset acquisition, depreciation, retirement and reconciliation under each relevant valuation view. Ask which company codes can share the chart, how differences are explained and whether the accounting team can trace every posting back to the right business rationale.
Related Knowledge
asset classes, asset number ranges, asset master screen layout. Return to SAP FI / FICO.