This quiz focuses on the process to add and retrofit depreciation areas with a specific depreciation key. It also covers the use of a substitution rule and worklists when a new company code with a specific legal requirement on depreciation calculation and reporting is rolled out in the same country with an already existing company code.

You need to have SAP ERP Central Component (SAP ECC) with the SAP General Ledger and the Asset Accounting (FI-AA) module implemented to do this process.

1. Which method to add or retrofit depreciation areas with a specific depreciation key is correct?

A. Substitution rule only
B. Worklists only
C. Both substitution rule and worklists
D. Neither substitution rule nor worklists

2. Why would you add depreciation areas in the new legal entity already live with asset accounting in the same country?

A. It is a legal requirement because of the nature of business envisaged at a later stage.

B. Because improper requirement gathering during the initial implementation in the country was chosen

C. It is necessary for reporting purposes

D. All these statements are correct.

3. Which of the following sequences is correct for a smooth transformation to add new depreciation areas?

1. Create a new depreciation area with new requirements
2. Set up a chart of depreciation and set up a retrofit process
3. Activate a depreciation process for all asset classes and update the last close fiscal year
4. Execute the retrofit process   

A. i, ii, iii, iv

B.  i, iv, iii, ii

C. ii, i, iii, iv

D. i, ii, iv, iii

4. What is a CoD?

A. Chart of delta

B. Chart of depreciation

C. Chart of differences

D. Company code depreciation

5. Which of the following choices are different ways to add new depreciation areas?

A. Configure new depreciation areas as per the requirement

B. Copy the old depreciation areas and change the settings as per the requirement

C. It is not possible add new depreciation areas in an already live site

D. Both A. and B. are correct

6. The chart of depreciation is set at which level?

A. Company code level

B. Country level

C. Chart of accounts level

D. All of the above

7. When a new depreciation area is added to a country already live in an SAP system, what happens?

A. It affects all the assets in the new entity only

B. It doesn’t affect any assets

C. It affects all assets in the old and new entities

D. None of the above

8. When the new depreciation area is added in the country already live, which of the following happens?

A. By default the deactivation check box is checked for the new depreciation area

B. By default the deactivation check box is unchecked for the new depreciation area

C. Activation of the check box cannot be controlled

D. None of the above

9. Which of the following statements is correct?

A. Activate newly added depreciation areas only in asset class level

B. Activate or specify depreciation areas for ordinary depreciation

C. Only A. is correct                                                                  

D. Both A. and B. are correct

10. A Prerequisite to carry data retrofit for the last closed fiscal year is or can be:

A. Not less than current year minus one                             

B. Current year

C. Anything and doesn't matter                                     

D. All statements above are correct

11. Which transaction is used to close the previous fiscal year and to open depreciation areas in all asset classes?

A. AJAB and AFAB           

B. AJAR and AFAB

C. AJAB and AFBN

D. AFBN and AFAB

12. What tools are used to update depreciation keys?

A. By Validation rule and substitution rule                                

B. By Validation rule and Worklists

C. By LSMW

D. By Validation rule and LSMW

13. What are the ways to perform validation after the data retrofit activity?

A. Run balances both in leading and non-leading ledgers         

B. Run balances for Asset accounts, Depreciation accounts and Accumulated depreciation GL accounts

C. Compare depreciation values based on the depreciation keys and useful life, before and after the retrofit activities

D. All the statements are true.

Answers

1. C. Both substitution rule and worklists

Substitution rules need to be defined to update the new depreciation keys in specific depreciation areas. The rule is applied on all asset masters in the existing company code retrofitted. Once the rules are defined, worklists are created for mass update of depreciation keys. The same process can be repeated to as many depreciation areas and new depreciation keys to be updated.

2. D. Choices A., B., and C. are correct.

3. The correct sequence is i, ii, iii and iv.

4. B. A chart of depreciation is mainly used to manage various legal requirements for the depreciation and valuation of assets. A CoD is at a country level assigned to a company code.

5. D. Both A. and B. are correct.

6. B. The chart of depreciation is set at the country level.

7. C. Adding a new depreciation area to a country already live in an SAP system affects all assets in the old and new entities.

8. A. By default the new depreciation areas in all asset classes are deactivated (i.e., the check box is on). At the country chart of depreciation level, activate the new depreciation areas in all the asset classes with the required depreciation keys, useful life, and layout.  

9. D. Both A. and B. are correct.

10. A. SAP recommends that the last closed fiscal year should not be less than current year minus one. For example, if the current year is 2013, the last closed fiscal year should be 2012 (the current year minus one).

11. C. AJAB and AFBN are used to close the previous fiscal year and to open depreciation areas in all asset classes.

12. B. Validation rules and worklists are used to update depreciation keys.

13. D. Choices A., B., and C. are correct.