Asset Under Construction Steps -

HI,
Kindly provide me the process steps for AUC.So that i can understand the AUC concept better.
Thanks
Sunitha

Hi,
1. AuC assets are created like normal asset master rcords, but ensure that AuC asset class has line item managed selected.
2. Once the asset is ready to be capitalized, refer [Wiki (Auc Settlement)|https://wiki.sdn.sap.com/wiki/display/profile/AuC+settlement] to settle the assets.

Similar Messages

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

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

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

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 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.

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.

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

AUC- Asset Under Construction - Gap Analysis

Hi Guru's,
I have a requirement to know the Gap Analysis on Asset Under Construction.
We are under Analysis Phase where i have to find out the Gaps related to business.
I received a Reporting FD and asked to find out the data source.
Please provide the Gap Analysis steps to over come on this specific requirement.
Based on my analysis i found multiple tables to derive the AUC - Asset Under Construction solution.
Tables that involved to get the Asset Under Construction:ANLA, ANLZ, PRPS, ANEP, BPDY, T093B
My Questions:
Is there any SAP Standard Data Source for AUC- Asset Under Construction.
Now in my high level requirement we are pulling the information from multiple tables.
Please provide me suggestions how can i go ahead with the above requirement.
Regards,
Ganni

Depends on how the FICO guys have configured AuC
If they have chosen a separate asset class for this (as what tends to happen) - then the std asset data model will cater for this
Just run the std content reports or build your own for the asset class of AuC

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

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,

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

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 Steps -

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