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.

Similar Messages

Error in dep run - Asset under construction

Hi!
Could someone please help me with the following:
My customer has a large amount of assets under construction (AuC) and also other assets. None of the assets under consctruction should have a depreciation key (or depreciation key 0000) and no depreciation accounts are allocated in transaction AO93 for AuC . But my customer now has incorrectly created a few AuC (that should NOT be depreciated at all) with depreciation key LINK. What happened?
1) Test run depreciation (AFAB) for all assets in period 1 during 2010. In test run no error log was created, everything looked fine.
2) Executed depreciation in background.
3) When looking at each of the assets in transaction AW01N I can see that all assets (both real assets and AuC with depreciation key) has depreciation posted in period 1. BUT, no depreciation has been posted in general ledger on any of the asset classes!
4) I have now changed the depreciation key on all AUC in AS02 to 0000 so that no depreciation will be calculated.
5) Trying to run AFAB again for period 2 but error message says that period 1 was terminated and that period 1 should be restarted.
6) Trying to run period 1 again in AFAB with restart but error message says "Account 'Acc.dep. accnt.for ordinary depreciation' could not be found for area 01" and refering to all of the incorrect AuC that I have corrected (to no depreciation key)
Please how can I go on? I want to reverse the depreciation in period 1 since I didn't get any posting i the general ledger. And then I want to make a new depreciation run only with correct assets (only depreciation on real assets, not on AuC).
Please help!
I am very thankful for any help!
Many many thanks in advance!
with regards,
Prabhakar

Hi,
I had the similar situation couple of months back. I followed below mentioned process and it worked out well.
1) Maintain GL account for depreciation in AO90
2) restart depreciation run for the relevant period
3) change the depreciation key to 0000
4) repeat depreciation run for the same period (It will post a reverse entry in the same month itself. So the net impact of depreciation in the same month is zero).
By the way I have a suggestion to prevent this issue in future.
You may not be able to detect this issue on test run if you execute on foreground mode because the test run execution is restricted to 1000 assets. If the error is on 1001th asset, you will not know.
Hence, always execute depreciation test run on background mode, check for any errors and execute production run only if there are no errors.
Hope this helps....
Best Regards,
Madhu

Error in depreciation run - assets under construction

Hi!
Could someone please help me with the following:
My customer has a large amount of assets under construction (AuC) and also other assets. None of the assets under consctruction should have a depreciation key (or depreciation key 0000) and no depreciation accounts are allocated in transaction AO93 for AuC . But my customer now has incorrectly created a few AuC (that should NOT be depreciated at all) with depreciation key LINK. What happened?
1) Test run depreciation (AFAB) for all assets in period 1 during 2010. In test run no error log was created, everything looked fine.
2) Executed depreciation in background.
3) When looking at each of the assets in transaction AW01N I can see that all assets (both real assets and AuC with depreciation key) has depreciation posted in period 1. BUT, no depreciation has been posted in general ledger on any of the asset classes!
4) I have now changed the depreciation key on all AUC in AS02 to 0000 so that no depreciation will be calculated.
5) Trying to run AFAB again for period 2 but error message says that period 1 was terminated and that period 1 should be restarted.
6) Trying to run period 1 again in AFAB with restart but error message says "Account 'Acc.dep. accnt.for ordinary depreciation' could not be found for area 01" and refering to all of the incorrect AuC that I have corrected (to no depreciation key)
Please how can I go on? I want to reverse the depreciation in period 1 since I didn't get any posting i the general ledger. And then I want to make a new depreciation run only with correct assets (only depreciation on real assets, not on AuC).
Please help!
I am very thankful for any help!
Many many thanks in advance!

Hi, Can you please how the issue is solved because i have the same problem which i need to resolve immediately. Please reply me as soon as possible
with regards,
Prabhakar

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.

Down Payment Posting in Assets Under Construction

Hi
In case of AuC, when we post the down payment, the standard Accounting entry created is:
Vendor Advance A/c Dr
Asset Under Construction (Down Payment) Dr
     To Bank A/c
     To Asset Clearing A/c
When we Post the invoice , the A/c entry passed is
Asset under Construction A/c Dr
      To vendor A/c Cr
When we clear the down payment against the invoice
Vendor A/c Dr
Asset Clearing A/c Dr
     To Vendor Advance A/c
     To Asset under Construction (Down Payment)
My issue is:
1. Why the Asset account should be involved for making down payments? At the time of down payments, the accounting entry that should be passed by the system showuld be
Vendor A/c Dr
    To Bank A/c
2. What happens in the case of year end activities? Why does system create two entries for current assets?
regards
Sanil Bhandari

na

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

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

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

Settlement of Assets under Construction - Error Message

Dear Friends,
In one of the Co, Codes we are using the Category FXA to settle the assets under construction and when we define the Asset No. in the Settlement Receiver, the system gives the error message " Receiver Categ. G/L is not allowed by Settlement Prof. AI for this sendor". Message No. KD031.
It is not understood why the system is referring to the GL when we are putting in the Asset No. as the Settlement Receiver. However, in other Company Code we are not facing this problem. What could be the issue and what do we need to check.
Thanks for the help.
Regards,

Hi Raj
posting to Asset, also posts to FI-GL i.e. the recon account.. hence, system might be asking to allow GL
If your settl receiver is FXA, settlement will be made to that only.. Dont worry on that front
Regards
Ajay M

Assets Under Construction

Hello can any one advice on this issue ?
My client wants to have an AUC but he is procuring the Asset and other incidental costs through PO and need to also have to capture the Duties at the same time but the Asset is not caplitalized in the books instead it should be in Capital Work In Progress.Later on he wants to capitalize the Assets from Transferring from AUC to final asset then only this time it should reflect in books.
Hoe can I make these settings in SAP ? Is it possible ? then How?

Hi Edukondalu,
Yes. its possible to define Assets under construction. You can define a specific Asset class that would have defined as AUC (No depreciation keys etc).
And you can create AUC asset master first and assign to POs. After incurring all expenditure under the AUC assets, you can capitalize the expenditure to Main Asset using transaction AIAB & AIBU
Hope this helps.
Cheers,
Som

AA-Asset ID Number from Asset Under Construction to Final Asset

Hi Expert,
In our organization we use Asset Under Construction by creating individual asset and later we released to final asset. The system work fine in accounting wise but in practical scenario we are facing issue to track physical asset number.
Example: 1 Asset Under Construction #10001, later create final asset in class computer "SERVER IBM # 50001"
When this server was purchased IT departed put the asset number as 10001 on physical asset. later this asset was re-classified to proper asset class which now has asset number #50001
In this scenario IT department facing issue to perform physical inventory.
Can some one share experience on how to handle this scenario from SAP/Conceptual process wise?
Regards,
prashant rane

Hi,
Your requirement is so common to the consultents like me, I do advice to the client as follows:
1st Step: Creating AUC Asset the number from 1series would be the temporary number, can be used till settlement to main asset.
2nd Step: Fixed asset number 5series would be the parmenent number.
Note: 1 series all the numbers should be settleed to the main asset and the temporary number should be replaced / noted with parmenent number.
I guess it would work to you.
Regards
VG

Creating asset under construction

when i try to create asset under construction with the asset class 4000(asset under construction) i am getting the below error
Number range 40 not in the number allocation range
Message no. AA203
i checked in the trans code- OAOA also but i have already assigned 40 as the number range in it.
please help me with this issue..

Check the diagnosis for the message. It will clear your doubts.
Also check the procedure of the message, there you will find the link (AS08) to maintain the number range.

Settlement of WBS element down payments to an asset under constructions

The down payment (of the transactions tcode F-47 and tcode F-110), are
always settlement wbs element (tcode CJ88), we do not want to post down
payments to the receiving asset under construction (transaction type
180 or 181).
In the down payments are always taken into account in the settlement to
an asset. The settlement of the down payment is the actual reason for
the previous update of down payments in FI (Transaction type group
15). Furthermore, the settlement of down payments to assets should
not be capitalize.

When you search on this forum try to put Date range "ALL" to get more results. Please read below threads and you will get the solution.
MIRO:Transaction in area 15 contradicts the net book value rule
Transaction in area 01 contradicts the NBV
Looks like you have a negative balance in your WBS which you are trying to settle to FA.

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,

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 Issue

Similar Messages

Maybe you are looking for