SAP Financial Accounting (SAP FI) Practice Exam

What cost objects can a depreciation area post to in SAP Asset Accounting?

1. Profit center

2. Cost center

3. Internal order

4. Both cost center and internal order

The correct answer is: Both cost center and internal order

In SAP Asset Accounting, a depreciation area can post to multiple cost objects, notably cost centers and internal orders. This dual capability is essential for financial reporting and controlling as it allows for more flexible allocation of costs and better tracking of asset-related expenses. When depreciation is posted to a cost center, it enables the organization to allocate the costs of asset usage to specific departments or units within the company. This helps in understanding the cost structure and financial performance of individual areas. On the other hand, posting to internal orders allows for tracking expenses against specific projects or initiatives, providing detailed insight for project management and budgeting purposes. This is particularly important for organizations that engage in numerous projects and need to manage costs effectively. Choosing both cost center and internal order as valid posting targets provides a comprehensive approach to asset management, improving financial visibility and accountability across the organization. This flexibility is one of the reasons why the option that includes both these posting destinations is correct.