How to Create Depreciation Method in SAP – AFAMS

How to Create Depreciation Method in SAP – AFAMS.

Meaning: It is one of the parameters within Depreciation Key. To calculate the depreciation we need to define the depreciation methods which determines on which Base value the asset should be depreciated and the rate of depreciation.

Go to T code: AFAMS.

Popup will come, give company code and click on continue button.

Click on New Entries.

Give multi level method name, description and validity start.

Once entered the above data, double click on Levels.

Click on New entries.

Enter the data like below screen.

Key points

• Acquisition year -9999 -> This is the asset year of acquisition up to which this entry is valid.
• Validity period in years – 999
• Base value – On which value the asset should calculate depreciation (Ex: 01 Acquisition value, 24 Net Book Value etc.).

Click on save button.

Now customizing request prompt will come, select your request and click on continue.

Data was saved.

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Explained: How to Create Depreciation Method in SAP – AFAMS.