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

Which methods does the depreciation key define? (Select three correct answers)

1. Period control method

2. Asset sheet valuation method

3. Base method

4. Multilevel method

The correct answer is: Period control method

The depreciation key in SAP FI is essential for determining how the depreciation for an asset is calculated and recorded. It defines various methods related to the asset's depreciation process. The period control method is integral as it specifies how the depreciation should be executed over time. This method controls how the asset's value decreases periodically, outlining the timing and calculation methods for each accounting period. It allows for flexibility in determining the depreciation schedule and is critical in financial planning and accuracy. In addition, the depreciation key also typically includes base methods, which are fundamental formulas or calculations used to determine the asset's depreciation. These base methods can take into account factors like the asset’s useful life, residual value, and acquisition costs. By doing so, they establish a baseline for the depreciation over the asset's lifespan, ensuring consistency and compliance with accounting standards. While the other options like the asset sheet valuation method and multilevel method have their distinct roles in asset management and valuation, they are not primarily defined by the depreciation key. The asset sheet valuation method pertains to how assets are represented on the financial statements, and the multilevel method refers to a layering of asset values or processes, none of which are directly influenced by the depreciation key.