SAP Financial Accounting (SAP FI) Practice Exam

During the depreciation run, which GL accounts receive postings?

1. Book depreciation expense and accumulated depreciation recon account

2. Depreciation expense and capital reserve

3. Accrued expenses and cash accounts

4. Asset accounts and expense accounts

The correct answer is: Book depreciation expense and accumulated depreciation recon account

The answer identifies the correct GL accounts that receive postings during the depreciation run. In SAP FI, when a depreciation run is executed, it typically involves two critical GL accounts: the depreciation expense account and the accumulated depreciation account. The depreciation expense account reflects the cost associated with the use of long-term assets over a particular accounting period, effectively capturing the expense that affects the income statement. On the other hand, the accumulated depreciation account, which is a contra-asset account, accumulates all the depreciation taken on an asset over its useful life, reducing the asset’s book value on the balance sheet. This dual posting helps maintain accurate financial reporting by ensuring that the expense incurred is recognized in the appropriate period while also tracking how much of the asset’s cost has been allocated as an expense over time. Through this process, organizations can evaluate the net value of their fixed assets and understand the impact of their depreciation on overall financial performance.