SAP Financial Accounting (SAP FI) Practice Exam

Which of the following is NOT a characteristic of the depreciation key?

1. The 5 calculation methods include base and declining balance

2. Depreciation keys can be customized per asset class

3. Each depreciation key has a unique number

4. Depreciation keys cannot be changed once created

The correct answer is: Depreciation keys cannot be changed once created

The correct statement is that depreciation keys can indeed be changed after their creation, contrary to the assertion that they cannot be modified once established. Depreciation keys are integral to how assets are depreciated in SAP Financial Accounting, allowing for flexible and tailored accounting practices. The depreciation key provides specific parameters that govern how the depreciation of assets is calculated, including methods like straight-line or declining balance, which directly reflects options related to the calculation methods. Furthermore, depreciation keys can be tailored to specific asset classes, enhancing the adaptability and accuracy of financial reporting. Each depreciation key also possesses a unique identification number, making it easy to track and manage multiple keys within the system. In summary, the ability to change depreciation keys after their creation is crucial for adapting to changes in accounting policies, asset management strategies, or financial reporting requirements, which is why the statement about immutability is not correct.