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.

Similar Messages

Asset Under Construction for PREL status WBS

Hi,
It is possible to create AUC automatically for the PREL status WBS Element?
As per std. SAP it is not possible, is there any enhancement available as such?
Rgds
Rambo

Thanks Abdul !!
I hope this is nothing to do my Issue, my question is whether it is possible to generate AUC automatically in the partially released WBS element, this is an upgrade scenario, i can not reinforce the new scenario altogether........
atleast can i get the Business transaction for generating AUC auto in the WBS Element.
Rgds
Rambo

Asset Under Construction Issue

Hi,
I am facing problems while settling of Auc.
I created one asset with asset class of AuC. In Auc master i have given the Capex order type's internal order. After i posted few entries for Order. while entering of fi entries to order i didn't selected any asset number just i posted the fi entries with 40 and 50 posting key.
After i settled the order in KO88. It was settled.
After i run AIBU t code then system is saying no line items existed for order.
Without line items how can i settle the order.
Please explain me from start to end of Auc Settlement Process and Converting to asset of Auc. It is very very very urgent for me.
Sateesh

Hi
This works like this:
First we create Asset class for asset under construction with investment measure.
Assign GL accounts to that asset class
Create one asset master under that asset class
create secondary cost element with catagory external settlement.
create internal order type and select settlement with assets are optional.
create internal order
post entries to internal order
that particular internao order will capture the total cost for particual asset under construction.
once you finished that construction you will settle to one asset or multiple assets using external secondary cost element in assessment cycle.

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.

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,

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

Down payments request for Asset Under Construction

Hello Expert
while Down Payment request to vendors - for Asset Under Construction, system showing error.
Contact your system administrator (table error)
Message no. AA866
Diagnosis
No account has been entered for posting down payments in area 01 under the account assignment key IN95 (chart of accounts YAIN).
Procedure
Enter the account using the Customizing menu.
Pls Reply frinds.
regards,
Riten patel

Dear:
First check in OAYB that have AUC class been specified for down payments and then go to transaction AO90 and maintain the GL account for depreciation are 01 under the Balance Sheet account in the field Acquisition: Down Payment. It will resolve your issue.
Regards

Down payments for Asset Under Construction

Hi Experts,
Urgent!
My client paying advances to vendors, thru TC-F-48.
Previously there is no PO requirement ,now asper client requirement I put PO fild as requirement in posting key 29.
1)There is no problem for payment to vendors -for Raw materials.
2)while paying advance to vendors - for Asset Under Construction, system showing error.
*Error is:
Contact your system administrator (table error)
Message no. AA866
Diagnosis
No account has been entered for posting down payments in area 01 under the account assignment key 4800 (chart of accounts FTL).
Procedure
Enter the account using the Customizing menu.
Pls Reply frinds.
Regards
vinod

Hi Vinod,
I hope that you are following Valuated goods receipt concept.
Valuated goods receipt: Asset will be debited at the time of goods receipt
Non valuated good receipt: Asset will be debited at the time of invoice receipt
If you follow valuated goods receipt concept, then at the time of making down payment, AUC should not be debited (whatever the value date/ capitalization date be). Please refer SAP note number 310368 (valuated goods receipt paragraph) for reference. In that they have clearly mentioned the steps to make down payment against asset under construction Purchase Order without debiting to AUC and without any error message. You have to make F5 378 message number from error message to warning message and in posting key 29 and 39, you have to supress the asset related fields. If you have done the above settings, then system will not show any error message to update G/L account in AO90 transaction code for the Acquisition: down payments and Down payment clearing - 2nd and 4th field or for AUC related fields.
Hope this helps. Assign points if useful.
Regards
Dwarak.

Gather all cost for asset under construction

Hi everybody
Please tell me the way to gather all cost for asset under construction. You can detail as good as possible.
Thanks so much
Ngocpt

Dear Ngocpt,
Internal order is functionality from CO. U can use it for the purpose of collating all the cost. U can also do cost planning in internal orders. This helps u to analyse bet planned & actual cost.
Create IO thru KO01. Once created use it in ur transactions. In your case u can use it in posting any document to AUC.
Also as I mentioned in my previous post that IO can posted with real values and statis tical values. If you want to post statistical vales only then check the box statis tical order in control data.
Whenever passing an entry put ur IO number in "order" field.
Hope this is of use to u.
Regards,
Ajay

Error when processing asset under construction (AuC) for WBS element message no cj824

Hi,
i am getting error message when i change dates in activities.
Error when processing asset under construction (AuC) for WBS element
Message no. CJ 824
i have checked related post but did not find any solution. also check SAP Note but not related to my issue.
Please guide.
thanks
Sunil

Hi Ken,
Please check below screens:
according to this error message AUC has some missing field or some incorrect value. but when i checked via program RAUNVA00 which will display
Incomplete Assets - Detail List.
but this program does not return any incompleteness.
i found many threads and SAP Not but none of is related to my program. this problem comes when i change dates in activity and save the project.
Please suggest what to do now.
thanks
Sunil

Capitalize borrowing costs to asset under construction u2013 IAS23

Dear experts,
According to IAS 23 we are required to calculate interest on capital invested in an asset under construction.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Where funds are borrowed specifically, costs eligible for capitalization are the actual costs incurred less any income earned on the temporary investment of such borrowings. Where funds are part of a general pool, the eligible amount is determined by applying a capitalization rate to the expenditure on that asset. The capitalization rate will be the weighted average of the borrowing costs applicable to the general pool. The amount of borrowing costs that an entity capitalizes during a period shall not exceed the amount of borrowing costs it incurred during that period.
Detail scenario
The construction of a qualifying asset is controlled by an investment measures that are managed as projects - WBS elements and settled to an asset under construction periodically. The calculated interest shall update only the determine depreciation area set on the interest profile (OPIB).
The borrowing operations are managed by money market transaction on TRM (Prod. Category 550 Interest rate instrument).
Using the interest calculation function (CJZ2 - Individual Processing or CJZ1 - Collective Processing) we encountered several problems/ restrictions.
1 u2013 When funds are borrowed specifically to a qualifying asset for example, an interest rate instrument as a money market transaction on TRM should be capitalized according to the actual incurred borrowing cost and not by a capitalization rate. How to assign the value to the WBS element?
2 u2013 When funds are part of a general pool, although we can calculate and update the effective interest rate for each borrowing transaction (TMEZ) how to determine the weighted average capitalization rate by company code and define it on the Reference Interest Rates (OBAC) to be used in the interest calculation?
3 u2013 Even if the capitalization rate is defined and updated manually in the reference interest rate for the interest calculation, how to limit the amount of borrowing costs that will be capitalized during the period? The calculated interest in period shall not exceed the amount of borrowing costs it incurred during that period.
Is there any other functionality to support interest calculation and capitalization of borrowing costs to asset under construction according to IAS23 requirements?
Please advice.

Hi,
The interest rates for capitalization and for appropriation can be collected in separate cost centers and apportioned to WBS . If you incur interests at the group level,then using accrual apportion the relevant portion to the respective C/Codes.
For arriving the weighted average i assume you take the planned interest.For restricting the planned to the actual ones use the " Budget Manager" functionality,give the actual value,set zero tolerance.This will help restricting to the actuals.
Hope this helps.
Regards
Ramesh

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 to create Asset under construction

Hi All,
Can any one pls explain me whats diff b/w normal asset class and AUC, and even provide me the steps to create AUC. (what are the GL acc assignments to be done)
It's urgent. pls help me...
thanks,
sravanthi

Dear sravanthi
For Normal Asset, We create an Asset in AS01 and we assign Depreciation area and depreciation is calculated.
For Asset under construction, SAP Provides a Seperate Asset class in As01 and no depreciation is calculated on this asset.
Fixed asset that is in the process of being completed at the time the balance sheet is being produced.
Assets under construction are shown as a separate balance sheet item for the enterprise. Assets under construction can be managed for bookkeeping purposes in the FI-AA component using asset master records in special asset classes.
To also benefit from management accounting functions that go beyond the asset accounting level, you can use capital investment measures in the Investment Management (IM) component. Investment measures can be managed in the form of internal orders or projects
For Steps to create AUC Refer to SAP Best Practices
http://help.sap.com/bp_bblibrary/500/BBlibrary_start.htm
Please let me know if you need more information.
Assign points if useful.
Regards
MSReddy

WBS Elements and Asset Under Constructions have different Cost Centers

Hello Experts,
We have created a WBS element in one of the projects.
As per standard process, when we create the WBS Element the Asset under construction is also getting created through the settlement rule within the WBS.
These assets should have the same Cost Center as the WBS has. However we are in a situation wherein the Cost Center in the asset under construction is different than the Cost Center in the WBS.
I have checked the settings like automatic account assignment, etc but all settings look correct.
Can you please explain first what could be the reason for such a difference between Cost Centers in WBS and AuC's and what is the solution to avoid it in future?
Thanks in advance
Leena

Thanks for your replies...
@ Alex - There is no Investment Programme ID maintained for this WBS in question since there is no IM for this project.
@ Abdul - Please elaborate more on Validation and Substitution.
Regards,
Leena.

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.

Asset under Construction for Investment Measures

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