Answer / biswajit

Depreciation Key: Depreciation is calculated using depreciation key. Depreciation key contain all the control information defined for the calculation of planned depreciation. Depreciation key are defined at chart of depreciation level.

Depreciation Area: The fixed assets are valued differently for different purpose. SAP manages these different valuation by means of depreciation area. it is a 2 digit code. the depreciation area contain the depreciation term which you have to assign into asset class or asset master data. Depreciation area decides hoe and for what purpose an asset will evaluated.

Asset Class: This define the types of assets(like Land, Machinery, building etc.). Asset class is linked between the asset master record and and relevant account in GL account.
The account determination in the gl account enable you to post transaction in relevant GL account.

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