FI / FICOintermediate

FICO Asset Accounting Part 3: Depreciation Keys and the Depreciation Run

Key takeaway

Understand depreciation calculation: depreciation keys and their calculation methods (base, declining balance, period control, multilevel), useful life, planned vs posted depreciation, the periodic depreciation run (AFAB), unplanned depreciation, recalculation and year-end tasks.

Explanation

📌 KEY POINTS
✅ A depreciation key bundles calculation methods: base method, declining-balance method, period control, multilevel method.
✅ Planned depreciation is calculated when values change; AFAB posts it periodically.
✅ AFAB runs in planned mode, repeat or restart; always test run first.
✅ Unplanned depreciation (impairment) is posted separately; AFAR recalculates after key changes.
⚠️ Changing a depreciation key on assets with posted depreciation needs recalculation and review — don't do it casually at year-end.

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▶ WHERE WE ARE
Part 2 configured FI-AA. Now depreciation.

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▶ 1. DEPRECIATION KEYS

Methods and parameters (e.g. straight line from useful life, pro rata from acquisition period).

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▶ 2. PLANNED VS POSTED

Planned values in AW01N; posted by AFAB.

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▶ 3. DEPRECIATION RUN

Test run, update run, repeat, restart after errors.

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▶ 4. SPECIAL DEPRECIATION

Unplanned (impairment), special tax depreciation.

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▶ 5. YEAR-END

Fiscal year change (AJRW), year-end closing (AJAB).

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▶ STEP BY STEP

Display a depreciation key (AFAMA).
Run AFAB in test mode.
Post and check the depreciation document.

✅ CHECKPOINT: posted depreciation equals planned for the period.

Code example

ABAP Code

===== CONFIG =====AFAMA depreciation keys | methods: base, declining-balance, period control, multilevel (useful life) ===== RUN =====AFAB: company code 1010, fiscal year 2026, period 09, planned run, test ✔ → updateAFAR recalculate values | ABAA unplanned depreciationAJRW fiscal year change | AJAB year-end closing ===== POSTING =====Dr Depreciation expense (cost center) 1,000 | Cr Accumulated depreciation 1,000

Real project scenario

During a plant expansion, capitalized assets had no cost center; AFAB failed each month and depreciation piled up. A pre-run check for missing cost centers and an asset class rule making cost center mandatory solved it.

Common mistakes

Skipping test runs.
Key changes without recalculation.
Missing cost centers.
Skipping failed periods.
Forgetting year-end steps.

Best practices

Test first.
Recalculate after changes.
Mandatory cost center.
Restart failed runs.
Year-end checklist.

Interview angle

Questions: "What is a depreciation key?", "How does AFAB work?", "What are AJRW and AJAB?"
Strong answer: key methods, planned vs posted, run modes, unplanned depreciation, year-end.

Practice this lesson

Quick check

1. In transaction AFAB, which type of depreciation run is used to recalculate and repost depreciation for a period that has already been processed, for example after a manual depreciation adjustment?

2. Which component of a depreciation key specifies the percentage rate applied to an asset, potentially varying depending on how many years the asset has been in use?

3. The depreciation run fails every month for assets from a new project. What is a typical cause?

Interview questions

1. A production issue is reported in Asset Accounting. What would you check first, and how would you troubleshoot it systematically?

Answer it in your own words first, then compare.

2. Depreciation figures look wrong after changing useful lives, and AFAB keeps failing. How do you troubleshoot?