Asset Under Construction creation, Internal Orders,

Hi,
We employ internal orders for collecting costs for an AUC. However, we have a requirement in which when an internal order is created for asset under construction, SAP has to automatically create an AUC asset and assign it in the settlement profile of the internal order. Is this possible? If so what configuration should I do.
Thanks for your help.
Ram

Hi Ram,
Yes. It is very much possible. You will have to create an Investment profile for that and in the investment profile give the Asset class of the AUC. Do this in transaction OITA.
When this investment profile is entered in each Internal order you create, the system automatically creates an AUC asset to which the costs can be settled.
Read the documentation for Investment Management component in the IMG and SAP help. YOu will get what you need. Thanks.
Thanks,
Vishal.

Similar Messages

Asset under construction in internal order

Dear All,
can any one tell me how to create Asset under construction in internal order...
Suresh patipati.

You must have a separate asset class for Asset Under construction(OAOA) with line item settlement selection.
Create an asset(AS01) under AUC asset class
Then create internal order through KO01 and in Settlement rule mention the
Category as FXA
Settlement Receiver: AUC Asset
% as 100% or as you require
Save the entries.
Now enter the capital expenditure using this Internal order. After you finish with the postings settle the internal order(KO88). On Settlement the values are transferred to AUC asset from Internal order.
Now use AIAB & AIBU to distribute and Settle the AUC asset values between Main asset(s). Here also in the settlement rule you must enter the settlement receivers.

Asset under Construction through Internal order- Functional deficit?

Hi Experts,
I have created an internal order and all the expenses incurred for the asst under construction are being booked at this internal order.
While settling the internal order the system always picks up the month end date as the settlement date and hence the balance of internal Order is getting transferred to AUC on month end date (say31.07.2007).
So,
The date of transfer of balance from internal order to AUC is month end date that is 31.07.2007.
But in Actuality the AUC got complited before month end (say 15..07.2007) and the Asset was put to use on 15.07.2007.
Now the system is not allowing to settle the AUC to Main Asset as on 15.07.2007 as the AUC was not existence on that date. <b>Error:</b> Posting not possible (Value date earlier than capitalization date).
I am able to transfer the balance in AUC to Main Assets as on 31.07.2007 but in this case my client is loosing the depreciation element on this asset from 15.07.2007 to 30.07.2007. Is this the functional deficit in SAP? Is there any way through which depreciation can be availed from 15.07.2007?
Thanks & Regards,
Bijay kumar Deo

You can settle the AUC value in one period and posting can be made in another period. in the same you can give the different asset value date in KO88 screen. The only limitation is this possible only if the fiscal year is same.
Give the asset value date as 15.07.2007 in KO88
Hope this will work
Radha

Creation of internal order (investment order- asset under construction)

I want to capture the cost of asset under construction through internal order (controlling) not throgh Investment Measure module. How i can do this.

Hi
It is the same flow as explained by AP above
If Investment management module is active, then on settlement i believe the AUC asset is automatically generated. Therefore you have to define an asset master and then include this asset in the settlement rule of the IO. Thus on settlement the cost in the IO would flow to the asset
Thank You,

Settlement from internal order to asset under construction

HI All,
I have allocated some labors hours cost from production cost centers to real order which is created for allocating the internal cost to asset under construction.
when i allocate the labor hours by using the "KB21N" it has used the secondary cost element that is "Internal activity allocation" cost element "1200002".
i have given the source cost element "1200002" which is created as "internal activity allocation" and in settlement cost elements folder i have given receiving category is "FXA" and selected by cost element check box. i selected required entry field in settlement profile and assigned in order type.
when i do the settlement to asset under construction from internal order it is showing bellow errow.
"Settlement by cost element not possible due to secondary cost element
Message no. KD553
Diagnosis
You want to settle the secondary cost element 1200002 by cost element to an asset or G/L account, which is not allowed.
Procedure
Extend your allocation structure R3, so that secondary cost elements are not settled by cost element, but with a settlement cost element."
please let me know the problem and where i did mistake. give me the solution
thanks in advance
Mr.Rao

HI,
in your allocation structure R3 you entered in the view "Settlement cost element" that settlement receiver categoy FXA receives values "by cost element". This is only possible for primary cost elements. For internal activities do not tick "by cost element" but use a settlement cost element with cost element category "22".
best regards, Christian

Settlement of an Internal Order to Asset Under Construction

We are running SAP 4.7 and Iam trying to settle an Internal order to AUC and I get the following error
You cannot use this transaction type to post to this asset
Message no. AA834
Diagnosis
The transaction type entered belongs to transaction type group 15. According to the specifications for this transaction type group, posting with transactions types belonging to this group are only allowed in specific asset classes (for example, asset classes for assets under construction).
The asset to which you are posting belongs to class 18000 (chart of depreciation SEEF). You cannot post to this class using the transaction type you have entered.
Procedure
Check the asset number entered. You may want to allow posting with this transaction type group for the asset class of the asset.
**Please take note that the costs which have come on the internal oder are through GR( Goods receipt) and not down payment. Also note that last month, the order settled without any problems!**

Hi,
thanks for your answer.
I want to do that because of some french tax rules.
These rules say that goods, hours or services produced internally for the contruction of an asset can be "delivered" to itself.
So you can register output tax based on the value produced but you have also to register input tax for the same amount.
Finally the balance for VAT amount is 0.
I was interested to know if that was possible to automize. If not, there is still the possibility to make a separate postings at month end or year end.
Best Regards

Internal Orders with AUC ( Assets under construction) Config steps

Dear Experts,
Can you send me the step by step configuration for Internal order with Asset Under Construction
Thanks
Sanjai

Hi nick,
you can maintain this in the settlementrule of the internal order, Type ANL
Best regards
Horst

Asset under construction-IM module

Hi,
I am planning to manage the asset under construction (AUC) by the PS module. This means to create the AUC through the WBS element, and finally settle to the final asset. For doing that I understand that the asset under construction class should be created as an investment measure.
I am asking if it is necessary to implement the IM module to manage the AUC by PS module.
If it is not necessary which is the difference of having IM implemented?
Regards,
Cecilia

Hi Cecillia,
To answer your questions:
You need to define specific asset class for AuC (status of AuC "investment measure" in OAOA)
You do not need to "implement" IM by creating investment programs but what technically make a internal order or WBS element an investment measure is the presence of an "investment profile" in their master record that will pilot the creation of the AuC. Investment profiles are defined in transaction code OITA that can be found of the IM part of the IMG
I second Ajay comment regarding the use of WBS elements (PS) vs. internal orders (CO) as investment measures: PS offers a lot more possibilities and options than CO but the set up, maintenance and daily use is much more complex. Take the time to consider both options.
Good luck and best regards
Thomas

Steps for completing Asset under Construction

hi,
i have created the AUC asset class with line settlement checked.
will somebody be kind enough to show me the futher steps involved in customization along with postings and settlement procedure....
regards
sayeed

Hi,
You can manage the asset under construction in the system in two different ways, depending on the types of functions that you need. The asset under construction can be either a normal asset record, or a master record with line item management. As a result, the transfer from the asset under construction to completed fixed assets can be handled in one of two ways:
·        Summary transfer from a normal asset master record to the receiver assets (transaction type 348/349)
·        Line item settlement of an asset under construction that has line item management
The Investment Management (IM) component is recommended for handling large-scale capital investments. Using the IM component, you can manage a capital investment in parallel: for financial accounting purposes as an asset under construction, and for controlling purposes as an internal order or project. For more information, see the documentation for the Investment Management component.
Assets under Construction Without Line Item Management
The procedure corresponds to the procedure for the transfer between two assets within the same company code (see Posting the Splitting or Moving of an Asset). Before carrying out a full transfer of an asset under construction, you have to reverse any down payments that were posted in the current fiscal year. Down payments are ignored for a partial transfer.
Special transaction types for the transfer of assets under construction allow for transfers to be displayed in the asset history sheet as acquisitions to fixed assets.
Assets under Construction with Line Item Management
In the FI-AA component, you can accumulate costs under purely technical aspects in an asset under construction. You do not need to consider the later creation of fixed assets at this point. During the construction phase, you can accumulate all acquisitions for an investment in a single asset. These acquisitions include
·        External activity (acquisition from vendor)
·        Internal activity (internal order)
·        Stock material (withdrawal from warehouse)
in a single asset. When using this 'collective management' of assets under construction, it is possible to manage the individual acquisitions as open items over the course of several fiscal years. At completion, the line items must be cleared and then distributed to the various receivers. The system activates open item management when an asset under construction is created, if you set the corresponding indicator in the asset class. In addition, you have to assign a settlement profile to the company codes involved, in Customizing for Asset Accounting, in order for the line item settlement to work (see Define Settlement Profile in the Implementation Guide). The main function of the settlement profile is to specify the allowed receivers (such as, assets or cost centers).
Hope this helps you. Let me know if you need any other information.
Rgds
Manish

New Depreciation Area in Asset Master Data, for assets under construction.

Hi,
The issue is relating to New Depreciation area. We have created new Depreciation area as 80=IFRS. We had followed three steps
1. Create Depreciation area via OADB.
2. Activate Depreciation area via OAYZ.
3. Automatic opening of new depreciation are via AFBN and program RAFABNEW :-
3.1 u2013 Indicator: Leave values initial = ticked. Set this indicator if you want to open the newly created depreciation area without any values i.e. blank.
In this we have find that the old assets value has been copied. But when we are doing internal order settlement through KO88 i.e. from pre-cap to AUC we are not finding new Depreciation area 80=IFRS in AUC. We had checked in AW01N.
Letu2019s assume that creating a new deprecation area is normally not required since these assets are not depreciated. But During the final settlement, the new depreciation area should also automatically supplied with values from the reference depreciation area from the AUC(assets under construction) in the completed assets. But we doesnu2019t find any values of in Dep Key = 80 IFRS for final assets.
In Assets Class of AUC we had used Investmnet Measure as Status of AUC.
Kindly provide solution for the same.
Nikhil

Check Transfer Variant 5 (under Transactions->Intercompany Asset Transfers->Automatic Intercompany Asset Transfers->Define Transfer Variants):
5     Investment measure settlement
Your Transfer Method is most likely 1 now (without transfer to dependant areas), change it to:
4     Gross method with transfer of values to dependent areas
This should help.

Asset under construction

Hi Guru,
I want to know about how the internal order is the linked to asset under construction?

Hi
First, your internal order should have a investment profile attached to it. This determines the AuC asset class.
Next, when you release your internal order, SAP asks to create a AuC in the sub-sequent screen. Meaning, release status requires AuC.
Hope this helps. Otherwise, let me know your question.

Asset under Construction for Investment Measures

Hi all
This is my client requirement
how to do asset under Construction for Investment Measures
configration
pls send configration

Hi
These are the steps to be followed:
1. Create a asset class for CWIP (Auc) - OAOA: In this select Investment Measure under Status of AuC.
2. Define Investment Profile (OITA) - Give AuC Asset class as invest measure asset class.
3. Create Internal Order Type for Investments: Normally standard 0650 order type will take care of the requirement. We need not to create anything.
4. Create Asset (AS01) under normal asset class i.e., buildings or vehicles etc... (You cannot create under AuC Asset Class)
5. Create Internal Order (KO01): Give Object class as investment and under Investments tab give investment profile created in step 2.
Go to settlement profile tab and give category as FXA and settlement receiver the asset no. and give 100%.
6. Change asset master to incorporate the internal order number under Origin Tab. Give no. in Investment order field.
7. Release the Internal Order (KO02)
8. Post the transactions through different T.Codes by referring Internal Order as account assignment.
9. Go to Internal Order through KO02 and complete TECO under control data.
10. Go to T.Code KO88 (internal order settlement) and settle the order.
Hope this will help you.

Asset under construction flow

Hi,
Can anybody explaine me Asset under construction configuration
Thanking you.
< For basic queries, refer to SAP Help or search the forums. Please respect forum rules. Thread Locked. >

This is dependend how you want to use this.
1 Only is asset accounting
2 In combination with internal orders
3 In combination with projects
In case 2 and 3 do you want to use budget management?
In combination with PO's
Make first a blueprint based on the business requirements.
The flows are explained more times on this forum, have a search with AUC or Asset under construction
In the SAP help you found documentation to

Settlement of Asset Under construction

Hi Folks
Can someone please explain an overview of settling Assets under construction. I am having some issues with AUC. The actual value of asset is being taken from AUC, not from final asset. Any kind of assistance will be highly appreciated.

Hi,
The Below are some important Steps.
1. T.code KO88 - Here you settle Expences to Settlement cost Elements via internal Order or Cost Centers. Give the Settlement rule and by tht Expences will be distrubuted or settled to SCE..
2. In AIAB T.code -Here Distrubution is done from Settlement Cost Elements to AUC, Here settlement rule is defined as such.
3. In AIBU T.code - Here Settlement if Cost from AUC to Actual Asst is Done.
after AIBU Transcation is Processed, you can directly run the Deprecation for tht Asset.
Hope the above would Help in Understanding the Concept of AUC Settlements.
Thanks
Goutam

Accounting object to Asset under construction?

Please,
Question: Is it necessary to set an accounting object (ACSET) to asset under construction?
(I think we should define an internal order)
Thank you

hi Naej ,
For Auc Assets Account assignment object is not required to create.
Because when purchase any goods and Services automatically system captures profit center through document splitting.
For eX : Service Entry with internal order. Internal order may contain CC or PC.
If internal order contains CC or PC system derives
ExP             a/c DR              10000
                To              GR/IR              acccount           10000
Aftter that we are settling EXp from Order to AUC
AUC     account            dr        10000
         to        ExP        account        10000
System derives cost center / profit center from IO   to AUC.
Main Asset settlement :
Main Asset           DR         10000
         to     AUC accont          10000
Because of these reasons AUC is not Requried CO Assignment objects.

Asset Under Construction creation, Internal Orders,

Similar Messages

Maybe you are looking for