Answer Posted / rajesh

When an asset is purchased and used in our organisation,
due to wear and tear the life the asset is decrease. This
is called depreciation.

When depreciation is configured in SAP we will run for
every month to calculate the depreciation and the
depreciation value is deducted from asset

For Ex: Asset Dep = Cost of asset - Scrap value / Life of
asset

If an asset is purchased for 10000 and the life is 10 yrs
after end of life the scrap value is 0 the the depreciation
per annum = 10000-0/10 = 1000

If it is worng send response immediately

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