1.    Describe the function of depreciation areas.

Depreciation area 01, which can be set up as the book depreciation, can make automatic postings to the general ledger.  Other depreciation areas may get their values from depreciation area 01 but calculate and post different depreciation values to the general ledger.  Other depreciation areas can be set up to show: country specific valuation (i.e., tax depreciation); values/depreciations that differ from depreciation area 01 (i.e., cost-accounting reasons); consolidated versions in local/group currency, book depreciation in group currency; and the difference between book, 01, and country-specific tax depreciation (‘derived depreciation area’).

2.    What information (sections) are included in the asset class?

An asset class consists of three main sections:

•    A header, containing control parameters for master data maintenance and account determination,
•    A master data section with default values for administrative data in the asset master record,
•    A valuation section with control parameters for valuation and depreciation terms.
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1.    What is the Asset Accounting sub-module?

The Asset Accounting sub-module manages a company’s fixed assets.  Within the Financial Accounting system, FI-AA serves as a sub-ledger to the General Ledger, providing detailed information on asset-related transactions.

2.    Define the chart of depreciation.

The chart of depreciation contains the defined depreciation areas. It also contains the rules for the evaluation of assets that are valid in a given country or economic area.  The chart of depreciation is a catalog of country-specific depreciation areas structured to meet the various business needs.

Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation.
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1.    Answer True or False to the following:
True/False.  Multiple currencies may be used within a single cash journal.
True/False.  A company code may have may cash journals.
True/False.  The cash journal balance may be negative.

2.    List the types of tasks you can perform using Schedule Manager.

•    Worklists (via workflow)
•    Background jobs
•    Online (real-time) jobs
•    Transactions
•    Text reminders
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1.    Briefly explain the difference between a value-added tax and sales and use tax.

Value-added taxes are assessed on the additional value that is added to a product as it moves through the production chain from raw material to producer and finally to the consumer.  Sales and use taxes are based on the final sales value of the product.

2.    For what are jurisdiction codes used?

Jurisdiction codes are used in multi-level taxes to identify each taxing authority.  When using jurisdiction codes, each level must be defined.  For example, if there is a state, county and city sales tax then the following three codes would be created:

•    State:     2500000000
•    County:     2510200000
•    City:    2510280930
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1.    Discuss the concept of hierarchy levels with regard to the balance sheet in SAP.

There are ten levels possible in the financial statement hierarchy.  For each level, an item name and total is assigned to a group of accounts.  Higher levels provide more summarization than lower levels, level one being the highest and therefore, least detailed.

2.    Describe how G/L accounts are assigned to the financial statement hierarchy.

G/L accounts are attached to the lowest level of the financial statement hierarchy.
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