Does a depreciation run integrate with both Financial Accounting (FI) and Controlling (CO) in SAP S/4HANA?

A depreciation run in SAP S/4HANA is designed to integrate seamlessly with both Financial Accounting (FI) and Controlling (CO). This integration is crucial because depreciation impacts the financial statements recorded in FI, while also influencing the cost management reported in CO.

When a depreciation run is executed, it updates the asset values in the FI module, which affects the balance sheet and profit and loss statements. This process ensures that the financial data reflects the current value of assets due to depreciation expenses. Moreover, the integration with the CO module allows organizations to track costs associated with the depreciation of assets, which is important for internal reporting and budgeting.

By aligning depreciation with both FI and CO, SAP S/4HANA supports comprehensive financial management and reporting, providing organizations with an accurate picture of their financial health and operational efficiency. This interconnected approach is a key feature of SAP's integrated design, enabling businesses to utilize their financial and controlling data effectively for decision-making.