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

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 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.

  • 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".
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    when i do the settlement to asset under construction from internal order it is showing bellow errow.
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    Message no. KD553
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    You want to settle the secondary cost element 1200002 by cost element to an asset or G/L account, which is not allowed.
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    Extend your allocation structure R3, so that secondary cost elements are not settled by cost element, but with a settlement cost element."
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    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".
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  • 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
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    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.
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    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,
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    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.
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    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.
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  • Internal Orders with AUC ( Assets under construction) Config steps

    Dear Experts,
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    Sanjai

    Hi nick,
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       Horst

  • Asset Under Construction Functional Inputs

    Hello,
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    Hi,
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    Try to analyse the characteristics use in provider and compare 2 set of data(under construction and settled).Hope this helps
    https://help.sap.com/saphelp_46c/helpdata/en/4f/71e7cd448011d189f00000e81ddfac/content.htm
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  • 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.
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    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
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  • Asset under construction-IM module

    Hi,
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    If it is not necessary which is the difference of having IM implemented?
    Regards,
    Cecilia

    Hi Cecillia,
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    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.
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  • 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.

  • 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
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    ·        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

  • 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.
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    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.

  • 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.
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    Whenever passing an entry put ur IO number in "order" field.
    Hope this is of use to u.
    Regards,
    Ajay

  • 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

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