SAP Financial Accounting (SAP FI) Certified Application Associate Practice Exam

How can depreciation areas be configured in SAP S/4HANA?

1. By assigning a ledger group

2. By setting up a specific currency

3. By choosing a fiscal year

4. By assigning a document type

The correct answer is: By assigning a ledger group

The correct choice, which involves assigning a ledger group, is essential for configuring depreciation areas in SAP S/4HANA. Depreciation areas are linked to ledgers, which means they rely on the classification and organization of financial data determined by ledger groups. In SAP S/4HANA, a ledger group includes various ledgers that can be used for reporting and accounting purposes. By assigning a depreciation area to a specific ledger group, you enable the system to manage and differentiate how asset depreciation should be calculated and posted across multiple reporting frameworks or accounting principles, ensuring compliance with various requirements (such as local GAAP and international accounting standards). By contrast, setting up specific currencies, choosing a fiscal year, or assigning a document type do not directly influence how depreciation areas function. Currency can be relevant for financial transactions but does not affect the foundational settings of depreciation. The fiscal year relates to the period in which financial operations are assessed but is not intrinsic to the configuration of depreciation areas. Document types are utilized in transaction processing and data entry but do not themselves configure the asset accounting framework or the management of depreciation.