We all are very well aware of the real time integration of SAP with various modules. We all are also aware of the sap functionality to post accounting documents automatically. 

This applies even in the case of Asset Accounting.

It is the structure of various fields available while creation/change of Asset Master Data. The screen layout becomes important in order to ensure completeness of data while while creation of asset.

Asset Class is an important part of asset accounting in SAP Financials. An asset class acts as backbone of the asset accounting. They help us in structuring the asset accounting as per the client's requirement.

The Asset classes play a vital role in General Ledger Account determination and screen layout.

Definition
Depreciation Areas are are used to calculate different values in parallel for the same asset. This may be required for legal requirement, management report, cost reporting etc.

The Depreciation Areas help us to manage assets with different depreciation terms i.e. depreciation key, useful life, expired useful life. This helps us to meet many statutory requirements and also to evaluate assets as per multiple parameters.

Definition
The chart of depreciation contains the list of defined depreciation areas. It also contains rules for the evaluation of assets that are valid in a given country or economic area. Each company code is allocated to one chart of depreciation. Several company codes can work with the same chart of depreciation. The chart of depreciation and the chart of accounts are completely independent of one another.