Budgeting for capital Asset Procurrement

Hi
How can we set budgets in SAP for purchase of capital assets?
Regards
SM

Hi
You can use an Internal Order for Budgeting for capital asset purchases. In your purchase order make internal order as compulsory. there after for your Controlling area, create an internal order type and set up avaiability control for the same. Then create an internal order and assign a budget in KO22. Thereafter in purchase transaction give reference of this internal order. System would do a check for budget for asset procurement.
Thanks & Regards
Sanil K Bhandari

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An SAP Solution for capital planning and Budgeting of Capital Assets?

Is there an SAP Solution for the Planning and Budgeting of Capital Assets?
A solution that provides planning, budgeting, and tracking for capital assets through the entire life cycle of each asset, from the initial request through the final disposal.
The solution needs to be able to run scenarios. A scenario contains equipment that may potentially be purchased. Scenario items are used to help determine cost, capacity, and cash flow feasibility.

Hi
What you suggested is the ideal approach...
However, if they say that the budget allocated to capital purposes (70%) applies to both capital projects and expenses and they would like to control it together, but have reports separately, it is not possible with standard SAP...
If they want to have just one IO for both cap and exp, You can suggest them a work around to capture CAPITAL or EXPENSE in a ref field (XREF1 in BSEG) and you can run KOB1 with XREF1 displayed in it....
In standard KOB1, XREF1 is not displayed, you have to use Exit COOMEP01 to include the fields you want... Add XREF1 to the Structure CI_RKPOS and write your code in the include ZXKAEPU01 of EXIT_SAPLKAEP_001
Without an identifier @ the time of booking the transaction in the system (Either by way of IO or a ref field), you wont be able to generate reports later on
Regards
Ajay M

Budgeting for fixed asset using internal order

Hi All,
My customer wants to budget for assets and track the actual capital expenses with budgeted capital expense.
Can I use Internal order to budget for the expense. I am not using investment management or funds management.
If it is possible to use the internal order without using IM or FM, can i create the IO as statistical.
Thanks for all the help

You can use Internal Orders for controlling capex. It is possible to enter budgets at internal order level as well as control the same.
For this you need to Budget Profile & activate the commitment management for the order type. In budget profile, you need to activate the availability control. You can also specify the person, who should be informed once budget is exceeded.
From internal order you will be able to settle cost to AUC.
Regards
Rakesh Pawaskar

Setup for Down Payment made to the Vendor for Capital Assets(Otherthan AUC)

Hello,
Can any one explain how we can make down payments to vendors against capital assets and what setup is required for this.
Plz advice.

Hi,
At the time of making down payment to vendor under capital assets purchase specify the purchase order number. For this vendor reconcialtion account and down payment special g/l symbol should assign first in OBYR.
There u can choose the special gl indicators.
Hope this is helpful, if yes assign points.
Regards,
Sankar

Purchase order for Capital Asset.

Hello,
How can I create the purchase orders for Capital Asstes?
Narendra.

Hi,
You first need to create Asset Number in transaction AS01. This is normally done by finance people. Once you get the asset number, create purchase order in transaction ME21N, by selection account assignment as A - Asset. Enter other data such as material number, quantity, requirement date, price, tax code. In the account assignment tab at item level, enter the asset number you got while creating the asser in transaction AS01. Save the purchase order.
Once you receive the material against this purchase order, the accounting entries will be done against the asset number.
Hope this fulfills your query.
Regards,
Prashant

50% Hold on VAT (for Capital Asset procurement)

Hi Friend,
In my client place like Excise (50% Hold on Cenvat), they want to Hold 50% of VAT amount in the current year and by sub-sequent fiscal year begining they want to utilize it.
Is there any standart process in SAP?
Else any other way through which we can do the business process.
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nms

Answered

Budget for Purchase requisition

Hi everybody,
Is there anyways that a budget can be done for balance sheet items?
Scenario:
Each and every purchase requisition raised should check for the available budget.
Budget can be done for the P&L items through internal order likewise is there any possibility of doing the same for the inventory accounts

Hi
We have the same scenario.Generally for capital asset or high value items, budget approval is required.Budget approval is confirmed from finance people.
If the PR needs budget approval, then follow Work flow procedure for release the PR. Assign the release points as finance people.A mail will automatically go to the finance controller and get it approve from them.
Then make the PO for the asset.
What I've suggested is MM point of view.
Consult an FI consultant for Budget Approval.
Thanks & regards
Pranaya

Creation of Assets for Capital Investment Measure

Hi,
Can some please tell me how to create an Asset for Capital Investment Measure.

Hi,
First you have to create master data using asset class AuC.
You have define asset class for Capital Investment Measure (AuC class) in t-code : OAOA. And still in the same t-code (OAOA), you choose "investment Measure" in box "Status of Auc".
If you choose "Investment Measure", the assets under construction in this asset class can be created solely in relation to capital investment measures (internal orders or WBS elements). So you cannot create and post in Asset Accounting directly (Example post using t-code : F-90).
If you use WBS Elements then you can post to the asset for Cap Invest Measure using t-code : CJ8G or CJ88.
Hope it can help.

50% Credit in VAT for Capital Goods(Assets)

Dear SAP MM Experts,
My client need to take 50% VAT credit in the First year and remaining 50% in the next year for Assets(Capital Goods). Currently I have configured 50% Cenvat credit for Excise duty, it was working very well using J1ID.
But for VAT, what configuration is necessary to take 50% VAT credit for Captial goods(Assets). Right now I use JVCD for taking 100% to VAT and JVCN to make it as inventory(Non Deductible).
Please do the needful.
Thank you.
Regards,
Baskar

This is standard behavior of SAP. In case domestic purchase, we can avain 50% CENVAT on additional excise duty (AED).
But in case of Import , we can avail 100% CENVAT for capital goods on additional customs duty (ADC).
Understand the difference between ADC & AED.
Try to convince client for the same. If he is not convinced, better write to SAP. Don't make changes related to subtransaction type 'IP'.

Business Process for Refurbishment of Capital Asset in SAP PM

Dear All ,
Please explain me best practice for Refurbishment of Capital asset created as Equipment in SAP PM.The Current Standard process of SAP is for spares/equipment not categoried as Capital asset .
Regards,
Basant Kumar

Dear Chinta,
Sorry I can't give you any documentation, but let me give you a little explanation about refurbishment.
Refurbishment is a process to repair our repairable spare part, then return that spare part back to the equipment, or to warehouse.
1. Warehouse make a good receipt 'other' for the repairable spare part, (spare part is received at warehouse)
2. Make a refurbishment order (IW81). We can repair the sparepart by our technician, or by external service
3. Make a good issue to refurbishment order
4. Repair faulty spare
5. Perform good receipt with reference to refurbishment order.
6. Order close
Hope this can help.
Regards

Capex budget for asset

Hi Friends,
capex budget for assets.for exp we have fix the budget for purchasing dep 100000.when we r purchase asset 50000 the amount will be deduct from purchase dep (100000-50000=50000).
can please sugget how to configur the department wise budget and that is link with asset.
can please tell configuaration steps.
Thanks,
Srinivas.
Moderator: Please, search before posting

hi
you have to create internal order type for each department
and assign the budget profile with tolerance limit
create internal order
create an asset
maintain budget - availabiliyt control activated.
release internal order -
do the purchase and have a control
assign the asset in the settlement rule.
settle the internal order.
Edited by: AP on Feb 23, 2012 12:05 PM

Down payment against the Internal Order - for Capital Expenditure

Dear friends
I am getting an error while making down payment against the purchase order.
The order of my entries or steps are as follows:
Created one internal order for Capital WIP with budget and availability control activation.
Created one purchase order against a vendor with reference to the above Internal Order.
When I am making the down payment to the vendor through tcode:F-48, the system throwing an error
"Define Cost Elements for Down Payments".
Can any one please explain why this error is coming. When I checked in Internal orders, there is a TCode: OKEP for Define Default Cost Elements for Down Payments.
System is asking for cost element, but where as what ever the down payment we are making is nothing but advance which is current asset. Why system is asking for cost element?
Can any one give me the guidance how to handle the issue.
Thanks in Advance
Kiran Kumar A

The reason is when you want the down payment for AUC to be capitalised, then you would need to create cost element for Downpayments.
Normally as per design of SAP, down payment being a Balance Sheet Account (Current Asset as you rightly mentioned) doesnot need / accept an Cost object, as a special case since down payments for AUC needs to be capitalised and hence need to be carried to Controlling (Internal Order) by creating Cost Element for Downpayments.
Go ahead and create the cost element. That would resolve your issue.

Oracle Hyperion Capital Asset Planning

Please can anyone tell me the differences between oracle hyperion capital asset planning and oracle e-business suite Fixed Asset module.
and also the utility of versions in oracle hyperion capital asset planning? is version related to workflow and approval process?
please share your opinions...

Hyperion Public Planning and Budgeting is a type of Planning application... you have to download total suite now....
Have a look for the files for 11.1.2.3:
More to life than this...: EPM 11.1.2.3 Installation and configuration changes
You can use Rapid installation as well if you want:Rapid Deployment
For 11.1.2.2:More to life than this...: EPM 11.1.2.2 Installation
And for features , you can look below:
http://www.oracle.com/us/solutions/business-analytics/performance-management/business-planning/hyperion-public-sector-planning-budgeting/overview/index.html
Cheers!
Sh!va

Internal Order Budget check while asset procurement through PR or PO

Hello Experts ,
Hope this is the correct place to post my issue!!
I have created the IO- KO01
Assign Budget - KO22
Activated tolerance limit and availability control and released the IO
status of IO is- REL AUC AVAC BUDG
Now, i want to create the PR/PO for this IO. Please tell me the process ahead ie. which a/c assign category is to be used,what document type is needed etc.
Please Also , suggest what are the other things/configuration needed for the same i,e. G/L assignment or Cost Element creation.
Please help experts.
Regards,
Ankur
Moderator: Please, search before posting

HI,
.1. Create Investment program (IM01 u2013 Create)
2. Create top node (IM11 u2013 Create Top Position)
3. create position id (IM22 u2013 Change)
4. Put appropriate budget on position id (IM32 u2013 Edit Original)
5. Create an internal order with internal order type CAPX- Capital Investment Orders (KO01 u2013 Create)
6. System will ask to create AuC assets at this time. We need to create AuC Assets here. It will be used to post the value from CWIP account at the month end.
7. Assign this order to appropriate investment program node. (IM32 u2013 Edit Original)
8. Change the status of I/O from u201CINPL- Initial Planning by Locationsu201D to u201CINPR- In-Principle Sanctionu201D (KO02-Change)
9. Allocate the appropriate budget to this I/O (T-Code IM52)
10. Change the status of I/O from u201CINPR- In-Principle Sanctionu201D to u201C30 APPR Board Note Approu201D and from u201C30 APPR Board Note Approu201D to u201C40 EXEC Execution Phaseu201D. (KO02: Change)
11. Create PO with reference of this I/O and give the expense GL account (ME21)
12. Goods receipt (MIGO) with reference to PO and refer the vendor excise invoice created in above step.
13. At this time cost element u201CCWIP accountu201D will be posted with reference of I/O. (KOB1 Line Item display for Order)
14. At the month end we need to run the settlement for the I/O through KO88. It will post the value to AuC and credit the u201CCWIP accountu201D. It makes the CWIP account zero at the month end.
15. Create an assets master for final settlement. (AS01)
16. To settle the value from the AuC to Final asset we need to run the order settlement once again and at this time we need to give the final assets in the settlement rule for I/O. It will post the final assets and credit the AuC. (KO88 u2013 Line Item settlement)
17. At the month end depreciation need to be run (AFAB u2013 Execute)
18. Do retirement for transferee asset.
See the bellow Link also
http://help.sap.com/saphelp_470/helpdata/en/4f/71e6f0448011d189f00000e81ddfac/content.htm
Thanks,
Raviteja

Accounting Effect for Capital Goods Purchase

Hi,
Iam using SAP 8.8 PL 13. How does the accounting takes place in case of an Item marked as Fixed Asset in Item Master?
In GL account determination I have assigned Capital Cenvat Credit A/c. for Capital Goods on Hold A/c.
Suppose I purchase an Fixed Asset Item for Rs.10000/- from a Vendor who has also been assigned Asset A/c in BP Master. I have created separate tax code for capital goods. The tax code is BED 10 %.
In Incoming Excise Invoice I get the Following JE effect.
                                                           Debit               Credit
Capital Cenvat Credit -                      Rs.10
Capital Cenvat on Education Cess    Rs.10
Capital Cenvat Credit                         Rs.5
Capital Cenvat Credit on HS Cess     Rs.5
Capital Cenvat Credit                         Rs.500
Capital Cenvat Credit                         Rs.500
Incoming Cenvat Clearing A/c                                    Rs.1030
Can somebody explain how this works?
Rgds
Kalli
Edited by: Kallicharan Nadar on Aug 30, 2010 11:22 AM

Hi Kalli,
In Administration-> Setup-> Financials-> G/L Account Determination-> Purchaseing Tab-> Tax Sub Tab-> "Capital Goods On Hold Percentage set" - 50 % and set GL in "Capital Goods On Hold Account" once you done these setting. When you are going to make Incoming Excise Invoice transaction that time system is booking 50% excise amount in current year and remaining 50 % will book in next year and same for Cess and ShCess.
Cenvat credit on capital goods is allowed only when it is received in the factory. However, only 50% of the credit may be availed in the financial year when the capital goods are received in the factory and the balance 50% may be availed in any subsequent financial year, provided the capital goods are in the possession of the manufacturer. The Cenvat Credit Rules, 2004, do not impose any condition upon the manufacturer to avail of the credit only when the capital goods are put to use on the commissioning of the plant.
Refer...
http://www.cbec.gov.in/excise/cx-rules-main.htm
Thanks
Sachin

Budgeting for capital Asset Procurrement

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