Asset capitalization process

Hi,
Please help me that what is asset capitalization process and what is post capitlization what is the difference
I will assign points
Thanks
Radha

Hi Radha,
Asset Capitalisation refers to the process of placing the Asset to use or it can also be reffered to as a date from which the Asset is put to use.
It is only after this date that the Depreciaiton is being calculated on the asset. We would normally not calculate Depreciaiton unless until the asset is being capitalised.
For Example:- When a office Building is being constructed,then it would be Capitalised when the construction it is fully completed and it is put to use.Upto the date of Capitalisation it is called as the Asset Under Conmstruction.
Further Post Capitalisation refers to the situaution,where the Asset would have already been capitalised,then a major expenditure relavent to the asset is incurred then it is called as post capitalisation.
Hope I have clarified your doubt.
Regards
Phani

Similar Messages

Accounting Entries in Project Asset Capitalization Process

Hello Dina,
Can you explain the accounting entries for capital projects for the scenario mentioned in the below points ?
1. A a project related supplier invoice is created for a capital project. It is validated, accounted and entries are transferred to GL. These are the entries:
Dr - Asset Clearing Account
Cr - Supplier Liability Account
2. Now, the transaction is interfaced to projects. The cost distribution line for the transaction only shows the Debit entry here (standard functionality)
Asset Clearing Account - Dr
Cr - Blank.
Since there are no adjustments to be made nor any more costs to incur, the project is capitalized.
3. Once asset lines are generated and then interfaced to Oracle Assets, the same clearing account (i.e. Asset Clearing Account of step 1) can be seen in Mass Additions screen in 'Clearing Account' Field. WHERE IS THIS USED ???
4. When the additions are set to POST, the system asks to enter 'Expense Account' and defaults the 'Bonus Expense' account from the setup for the asset category. WHERE IS THIS USED ???
5. Finally in the output of the Post Mass Additions request, there is a column 'Asset Account' which shows the value of the 'Asset Cost' account from the setup for the asset category. WHAT IS THIS FOR ???
Request you to throw some light on this.
Thanks,
Chandu

Hi
See my response on your later post.
Dina

Asset capitalization date not appropriate

Hi,,
Please tell me while I run Asset settlement through KO88 in period 7 ie, 22October 2010 asset capitalization and first acquisition date become 31.10.2010 instead of 22.10.2010. Because I executed asset settlement through KO88 on 22.10.2010 which is appearing 31.10.2010. What is the actual logic of taking advance value date instead of taking current date? Is it taking entire month and value is stamped on asset master as last day of month.....
Regards,
Samrat

Dear Samrat,
when you enter the capitalization date manually the system uses this date as the default asset value
date when you post the first acquisition to the asset. If you do not enter a capitalization date in the asset master record, the system   automatically adopts the asset value date of the first acquisition   posting as the capitalization date. The system inserts the asset value    date of the first acquisition posting in the capitalization date field   (Capitalized on...) in the asset master record, when a capitalizing   transaction type is used.
Please check your customizing in IMG: Asset Accounting > Transactions > Specify How Default Asset Value Date is Determined
The System logic with Asset capitilisation date is as follows:
When no capitalization date is entered in the asset master record the posting date of the first posting will be taken as the      capitalization date not the asset value date.
Documentation:
R/3 Library:
Asser Accounting > Basic functions for transactions > Dates in Asset accounting
Default Values for Asset Value Date:
- Initial acquisition > Capitalization date from master record (if in
   same FY, otherwise posting date)
- Settlement of AuC > Posting date
Set 'Prime Rule' and 'Alt.Rule' for each transaction (in your case it is
for transaction 'Settlement of AuC')
Regards Bernhard

Asset Capitalization on date...!

Hi,
I got one requirement where .... while creating the Asset the asset capitalization date should be defaulted with the date of the AUC settlement date or with today's date. Can any please let me know.. any Exits/BAdi which will help to this requirement.
Thanking You.
Regards,
Anjan...

Hi..
Thanks for your reply... but the captalization date is Under "General" cna u please let me kow whe this-(Badi given by u) one will get trigger..
Cheers...
Anjan...

Asset Capitalization on date...!-require Exits or Badis

Hi,
I got one requirement where .... while creating the Asset the asset capitalization date should be defaulted with the date of the AUC settlement date or with today's date. Can any please let me know.. any Exits/BAdi which will help to this requirement.
Thanking You.
Regards,
Anjan...

Hi,
Good evening and greetings,
In the following path you can customize your requirement
SPRO > Financial Accounting > Asset Accounting > Transactions > Enhancements > Develop Enhancements for Asset Value Date
Please reward points if found useful
Thanking you
With kindest regards
Ramesh Padmanabhan

How to change Asset Capitalization date ?

Hello
All Experts,
I want to chnage asset capitilizatio date so how can I ?
Experts guidance is needed.
Regards,
Pankaj.

Hi,
You can change the asset cap date at any point of time using AS02.
But the date in the First acquisition on cannot be changed, since it is a display field.
At the time of changing the cap date, system will shows an warning message like below.....
You should no longer change the capitalization date
Message no. AA225
Diagnosis
You have changed the asset capitalization date.
You can make this change, however this warning should make you aware of the consequences of such a change.}
And what is the business requirement to change the cap date?, since if you have already posted the dep posting, it doesnot make any adjustment to it.
Thanks,
Srinu

Asset Lines Processing(pa_client_extn_asset_creation)

Hi Gurus,
I have a requirement on my project where the client requires the assets lines built and created should be grouped individually based on expenditure organizations in the Invoice distributions which are matched to the Purchased Orders. The Date placed is service for the Asset should be the date the Invoice is paid. The CIP Account generated for the assets lines should be based on the locations in the Expenditure.
For Example. If a user wants to creates a PO for different locations he navigates to the Po distributions window and selects the Project Tab. He selects the same project number but uses different expenditure location as he wants to send the products to different locations. This PO is invoiced and paid. When the CIP is built and assets are created they get created based on the project organization instead of the expenditure orgs. Also the assets are tied to the just one asset name instead of differentiating with orgs.
So for the above requirement we would lke to build a Asset Lines Processing client extension which would create project assets and asset assignments prior to the creation of asset lines, based on transaction data (such as inventory issues or supplier invoices) entered for the project.
Please provide your experience inputs and helpful documents to build this client extension. If there is any sample code to be used then please advise.
Thanks you for all your help in advance.
Asad.

Hi,
You can make use of the Asset client extensions PA_PROJECT_ASSETS_PUB.ADD_PROJECT_ASSET and PA_PROJECT_ASSETS_PUB.ADD_ASSET_ASSIGNMENT and add your custom logic there.
Hope this helps !
Sathish Raju
www.projectsaccounting.com

Asset Procumerement process

Plz send me how to do Asset Procumerement process step by step...

Read this article [Capital Procurement in SAP|http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/808c60ca-013b-2c10-34a2-94d1eb442e6f]

Asset buying process

hi gurus
tell me about the 'asset buying process,,

Asset buying process is called acquistion.
Asset acquistion can be from
1. from outside: you acquire assets from external sources, like buying a house, buying a vehicle which becomes your asset.
2. in-house: your company is building a manufacturing unit which will become its asset. the cost incurred on manufacturing is captilazied once plant becomes operational.
In case 1. following is the process flow
a. Create a purchase requisiton (MM process)
b. create a PO for vendor(MM process)
c.1. goods recieved by plant of your company(MM process)
c.2. invoice sent to your company by vendor(A/P process)
d. invoice paid by your company to the vendor(A/P process)
In case 2 following is the process flow
a. Cost collected in WBS/IO ( PS/IO process)
b. Settlement of WBS/IO to AUC( PS/IO process)
c. Settlement of AUC to FXA (PS/IO process)
Hope this helps
NT

Asset purchase & capitalization process

Hi SAP GURUS,
I have a scenario, As i purchased a Machinary and that machine has three different parts i.e A & B & C.
A is purchased for Different vendor & B purchased from Different vendor & C purchased from Different vendor .
How can map this scenaro in SAP,and how is can be capitalized.
need your valuable inputs.
regards,
Santosh kumar

If you are going to depreciate the machine right away you can setup an asset record for the machine then post the three invoices to the asset record and you are good. If you are going to prepare the machine first you can create an AuC asset class asset record with depreciation key with no depreciations. Then you post all the invoices to the AuC asset record and whenever you need the asset to depreciate you transfer the AuC to the ready machine asset record. Now, if you need more functionality you can use PO to manage the procurement as well but not required. You can also involve investment measures like internal orders or WBS element or even investment management (this is not required either but additional functionality available in CO and IM).
So, capitalization is done by account coding the invoices to the asset master record and will happen during invoice entry.

Asset Capitalization using CJ88 and Processing Yaskbu

Hi Experts,
I have raised a new Asset and I am trying to transfer an old Asset to the new one, using CJ88 in Setlement rule.
Could you help on that.
Regards,
Marcos

Hi Marcos,
is it the AW 571?
The reason for error AW751 is that the exchange rate table has been changed since the settlement was run. The program expects that there will be the same currency rates in the settlement AND the settlement reversal.
The exchange rate table can be seen using transaction OB08. The program detects that the two exchange rates are different and correctly produces the error AW751. Unfortunately, the error message (Document Balance Cannot Be Distributed When Settlement Is Reversed) is only tell us in general that there is some kind of error with the total balance for the detail lines, not exactly how the error came about.
The solution is as follows:
1. FOR THE FUTURE:
Settlement is usually executed as close to the end of the settlement period as possible, to use end of period exchange rates once they are known. If currency rates will be changed before the settlement reversal, then you will have to set the value date in CJ88 (or the corresponding batch job) to some date where you HAVE ALREADY maintained    exchange rates and then the reversal will then work without any problems. It is also necessary to use the parameter 'translation date type' = '3' (translation date) in the FI-customizing for additional local currencies if they exist.
2. TO CORRECT YOUR ERROR:
To process a reversal for a settlement done earlier in the month with a different exchange rate, the only solution is to change    the exchange rate table as advised below. We recommend a temporary change, to be done when no one else is in the             system, then running the reversal and immediately changing the table back.
Regards Bernhard

Where to down load assets with Asset Capitalization date and Book value..

Hi All,
What is table/Transaction code to down load Asset with below details:
1) Capitalization
2) Acquisition value
3) Book Value
4) Book Dep Value
5) Cost center
Thx In advance..
Regards,
Shirisha

You can try the Asset History Sheet report S_ALR_87011990 (which has all fields except for cost center) and if you want additional fields you can choose to add new fields through the link [Include own fields in FI-AA standard ALV |https://wiki.sdn.sap.com/wiki/display/ERPFI/IncludeownfieldsinFI-AAstandardALV] the relevant report for Asset History Sheet should be Asset History Sheet -> FIAA_SALVTAB_RAGITT includes CI_REPRAGITT (out of RAGITT_ALV01). Else a quicker option would be to perform a vlookup process from another report that has cost centers like S_ALR_87011979.

Regarding the Reguralization of Asset capitalization.

Dear Team,
On regularization of Provisional Capitalization Entries in System especially in the case of provisional capitalization considered in previous Fiscal Year and regularization of the same is done in the Current Fiscal Year we are encountering following issues.
u2022     Creation Asset Master Record with capitalization date of Previous Fiscal Year
u2022     Posting of correct depreciation in System
The scenario is explained with an example below.
Provisional Capitalization Value Rs.120000/=
Date of Capitalization u2013 01.11.2008
Rate of Depreciation 10%
Depreciation on Provisional Capitalization Rs.2000/=
On regularization of provisional capitalization in Fiscal Year 2009 on 31.01.2009 in System we are encountering the following issues.
System is not permitting us to create Asset Master Record with Capitalization Date as 01.11.2008.
If we create Asset Master Record with the First Date of the Current Fiscal Year ie., 01.01.2009 then the depreciation of Rs.2000/= provided in the last fiscal year is not updated in the System.
Please note that while regularizing the provisional capitalization we used to reverse the provisional entries considered in the Financials of the previous fiscal year.
Manual Adjustment of Depreciation will be a audit point.
Hence please provide us a suitable solution to over come this peculiar issue.
Regards,
Suma.

Dear sir,
I am having one moreissue related to decapitalization.I am giving you theclear senario o the below.
Initially we used to capitalize an asset on a particular date and after say a month or two we were forced to de capitalize the asset when we avail duty credit on those assets. In other words Capitalization takes place on gross value in the first instance and de capitalization takes place when we avail duty credit in the second instance. The de capitalization entry is posted in System through F-02 Transaction Code. In this scenario the system is calculating depreciation as per example given below.
Example:
Asset Value   -   Rs.2,00,000/=
Date of Capitalization - 1.12.2007
Rate of Depreciation u2013 10%
Duty Credit availed/De cap on u2013 1.02.2008 say value Rs.20000/=
System Calculates Depreciation on Rs.2,00,000/= from 1.12.2007 to 31.01.2008 and on Rs.180000/= from 1.02.2008 onwards.
If we look at this case in a practical way then there is an excess charge of depreciation on Rs.20000/= for 2 months i.e.,(from 1.12.2007 to 31.01.2008).
Kindly guide us how to post the de capitalization entry in System so that system itself automatically reverse the depreciation already posted in System on Rs.20000/= for 2 months earlier.
Regards,
Suma.

Asset Capitalization error

I have created an asset Master by AS01.capitalization date is 2.5.2009, first acquisition date 2.5.2009. I already posted a entry to the above asset. In the fiscal year asset balance it is showing asset APC value and depriciation value. now I want to do change the capitalisation date to show in the fiscal year 2011 (1.4.2011).Is it possible to change the above fiscal year in the asset master data (Capitalization date/ first acquisition date). because i want to calculate the depriciation in the fiscal year 2011.
please tell me the solution,
Thanks in Advance

Hi
If your capitalisation date is 02.05.2009, depreciation should have already been posted from 02.05.2009 till 2011 Fiscal year right?
You can go and tamper the original depreciation start date in AS02 - Depreciation area tab. System will reverse all the depreciation posted till date and calculate depreciation from the date you specify now.
The problem you will have is, you have to take the hit of depreciation reversal for all the past periods pertaining to this asset in your current month ie the period you specify as depreciation start date.
Change the dates and check the planned depreciation values in AW01N
Malathi

Asset capitalization date

Dear Experts,
I am buying asset by PO. As far as I know, when we check goods receipt field in PO, system must use MIGO ( goods receipt ) date as capitalization date of asset. but when I try to do MIGO for such an asset, system shows me following error:
- Asset 1111 111000010-0 is incomplete, check the asset Message no. AAPO184
Diagnosis
The 'incomplete' indicator was set for asset 1001 111000010-0 because required entries were not made.
After investigating I see in asset master data, that asset does not have capitalization date and system consider that asset incomplete. ( I created asset at the time of creating PO ). please tell me why this happens and system needs capitalization date while capitalization date for that asset must be MIGO date. and system must not stop me and show error.
Regards,

Hi rakesh
Capitalization date were system will calculate the actual depreciation and how it can be GRN date ??
When you create assets in master data system you have to give capitalization date not as GRN date

Asset capitalization process

Similar Messages

Maybe you are looking for