Which statements best describe a chart of depreciation? There are 2 correct answers to this question.

Question

Options

• AA chart of depreciation is mandated by a country's statutory requirement and should be adopted
• BA chart of depreciation is company-code-specific; therefore, two company codes CANNOT use
• CA chart of depreciation contains multiple depreciation areas with a provision for addition and
• DA chart of depreciation is a country-specific object that is delivered with SAP S/4HANA.

• A
  4% (1)
• B
  4% (1)
• C
  92% (22)

Explanation

In SAP S/4HANA, a chart of depreciation is a country-specific object that SAP delivers pre-configured to meet local legal and accounting requirements (D), and it contains multiple depreciation areas - such as book depreciation, tax depreciation, and group valuation - which can be added or customized to meet business needs (C).

Option A is incorrect because while SAP delivers country-specific charts of depreciation aligned with statutory requirements, companies are not mandated to adopt them as-is; they serve as reference templates that can be copied and modified.

Option B is incorrect because multiple company codes can share the same chart of depreciation - a chart of depreciation is assigned to a company code, but it is not exclusive to one; this is similar to how multiple company codes can share a chart of accounts.

Memory tip: Think of a chart of depreciation like a country's tax rulebook delivered by SAP - it's country-specific (D), comes pre-loaded with multiple parallel valuation views called depreciation areas (C), but you copy and customize it rather than being forced to use it verbatim. The key rule: one company code gets one chart of depreciation, but one chart of depreciation can serve many company codes.

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