SAP FI Practice Exam 2025 – Complete Preparation Guide

The Chart of Depreciation is established at the company code level within the SAP Financial Accounting configuration. This structure allows for different company codes to have distinct depreciation methods and rules tailored to their specific operational needs. By having the Chart of Depreciation at the company code level, organizations can effectively manage asset accounting based on local regulations and accounting principles applicable to each legal entity they operate.

At the client level, the Chart of Depreciation would be too broad, as it would not accommodate the diverse financial reporting requirements of different legal entities within the same SAP system. Similarly, configuring it at the plant or cost center levels would not align with how asset management and depreciation are generally assessed in financial reporting, which focuses on the overarching structure of the company code. This ensures that while multiple plant locations or cost centers can maintain and utilize the same assets, the accounting for depreciation remains consistent with that specific company’s financial framework.