Capitalization of expenses

Hi All,
How Loading / Captilization of different expenses like freight, entry tax, installation charges, customs duty & C&F Charges will be handled in SAP???
regards

Hello Guru's can any one help me in giving the configuration of EEM ie: employee expenses management. ASAP its very urgent.ur help will be appreciated.
Regards
Sri
Edited by: Sri on Dec 19, 2008 2:17 PM

Similar Messages

How to capitalize expenses related to AUC

Hi,
I would like to know, how to capitalize the expenses related to asset.
Example asset is acquired under AUC for Rs.500,000 on 01.09.2009 thereafter on 10.09.2009, capital expenses of Rs10,000 is occured.
How to post both transactions in system & how to capitalize the expense of Rs. 10,000 related to asset in system?
Regards

Hi Sanjay,
There are two ways you can do this...
1. If you know before hand that the expenses are pertaining to AUC asset then you can open an AUC asset and directly book the expenses in that AUC asset via F-90. Then with transaction code AIAB and AIBU, once all the expenses are booked you can settle it to the final Asset.
2, Secondly, you can book all your expenses on an internal order and then at the month end you settle the internal order to AUC asset and then from AUC asset to Final Asset. AIAB and AIBU. But if you dont transfer the expenses to AUC asset then it will hit your P/L a/c for that month and that will be incorrect.
Regards,
SAPFICO

Result Analysis of Projects and convert the expense into WIP

Hi Friends,
I am stucked in finding the Work in progress for my project.
I am consuming the raw materials , semi finished goods and external services.
whenever i will comsume the material or take the external services, all gets booked to P&L GLs (Comsumption account)
for eg.
for Project 1
Raw material consumption                          : $ 1000
Semi finished goods consumption in project : $ 2000
External Service procured                           : $ 4000
planned revenue : $ 10000
at the end of the month i have expend a total of $ 7000 .
for Project 2
Raw material consumption                          : $ 1000
Semi finished goods consumption in project : $ 2000
External Service procured                           : $ 4000
there is no planned revenue. i may get the revenue later.
at the end of the month i have expend a total of $ 7000 .
but there is no revenue planned at this stage.
i have to do the same in system
i want to know the procedure how will carry out this conversion.
you can mail me the solution or any file at [email protected]
regards
Arunesh

Hello,
If I have understood your requirement correctly, you need to capitalize the expenses incurred on the project as long as there is no planned revenue.
To do this, you can customize your RA valuation method. You do this in OKG3. If you give more information, specific response can be given.
Thanks,
Sourabh

Capitalization of Services on Asset

Dear Experts,
We are capitalizing AUC to Final asset through AIAB & AIBU without using internal order. We also capitalize other expenses by adding AUC asset no. in direct expense postings and follow the aforesaid procedure. We are not using PS module. Now our requirement is to capitalize services on assets. We procure services using service master in service PO. We have to settle these expenses pertaining to services to final asset. Please let me know how can we achieve this. Someone please shade light on this.
Regards,
Aniruddha Mahalle

Hi Sethuraman,
Thnx for your reply. We are using PO for services with service master code in it. Is it possible to use internal order in the same PO. If we adopt this, do we need to assign this internal order in CWIP asset master. After settlement of these costs on Final asset, will it be possible to track the services which have been settled...Please help me on this..
Regards,
Aniruddha Mahalle

AUC Posting & Treatment

Hello Experts
We have implemented sap in jan11 & all the expenses towards this software all booked in gl called advance expenses for sap,now for balance sheet we have to capitalize this expenses as huge amount.
My queary is about how to transfer this expenses into asset(upto jan all legacy balancetill march some expensesexpenses from april to till date)
I think i can take it as AUC or is there any way out?
& if AUC treatement should be given then what is the procedure to do that step by step?please explain with tcodes

HI Sweet,
1.Create AUC Asset under Asset class (WIP/AUC) AS01
2.Create Internal order T.Code:KO01
3.Change Internal Order KO02 Give Settlement Rule with AUC Asset
4.while creating internal order if we select Investment profile 000001 (internally AUC asset will create)
5.Change Internal Order KO02 Release (TECO)
6.Post GL exp to the Order in FB50 / FB60
7.Asset Settlement :Order KO88
Settle Internal exp to AUC periodically,
Final AUC asset settle to Main asset AIAB- AIBU.
Let me know for further assistance...!
Rds,
Anil

Equipment BOM

Hi,all,
I m maintaining equipment BOM for spare parts planning ,where all item category has been mentioned as "L",now from maintenance order I want to generate Purchase Requisition by changing the item category as "N" after selecting the specfic item from that equipment BOM .But item category field of the maintenance order is coming greyed mode ?how can I change the item category from "L" to "N" to trigger PR??
Also is it possible to create Purchase Requisition from t-code ME51N with reference to an equiment for which I have maintained BOM .Is there any field to enter equipment no from where I can retrieve the spare parts list ?Please give ur valuable suggestion how to proceed.
thanks in advance.
rgds
rajib

Hi,
BOM item should be maintain with item category u2018Nu2019 or while assigning component to order instead of double clicking on item (BOM item) , Just copy the material (ctrl+c) and assign category :u2018Nu2019 and quantity manually.
In case of second issue: You cannot create a PR with reference to Equipment and there is no field in PR to assign Equipment. If you are having cost centers assigned to equipment in 1:1 ratio, you can assign cost center in account assignment of PR item.
Or else you can go for a standing order that is one standing order is to be assigned to each equipment and same can be used for account assignment for procurement.
In case of capitalization of expense you can go for asset as account assignment.
If you are not looking for account assignment and just want to retrieve the PRs connected to Equipment then you can think of tracking no field.
Raju

Difference between post-capitalization and write-up of an asset

Dear Experts,
Kindly explain the difference between post-capitalization and write-up of an asset in SAP.
Regards
Komal

Hi Komal,
Post Capitalization means correction of the value of an asset, which is either set too low due to not carrying out a capitalization in the past, or which is treated entirely as expense.
where as Write up is the reversal of past depreciation and write-up is necessary either when the depreciation posted was too high or when the reasons for unplanned depreciation no longer exist.
Regards,
Venkata Raju

Asset and expense

Dear all,
May I know what is the reason want to capitalise the asset cost instead of expense it immediately when purchase?
thanks

It depends on the business call , that the account assingnment in the PO as Asset ( GR based IV ) - do you want the GR to be valuated or non valuated .
If it is valuated then at the time of GR your Capitalization takes place , if you mark the AA category as non valuated then at the time of MIRO the asset would have the cost or get capitalized .
It is more of a business call rather than SAP technical query .
Cheers ,
Dewang

Capitalize asset without posting to accounts

Dear all,
We have a scenario, where we like to capitlaze asset in Tax depreciation area (which is not relevent for Posting to accounts) and in the book depreciation area, we need to expense it out.
Please provide your valuable inputs to deal this scenario.
i have tried creating Transaction type limiting to Tax Depreciation area, but finally not able to find a way to capitalize a asset without positing to accounts and capiltalizing only in Tax Derpeciation area.
Regards,
Srinivas

Hi Srinu
Thats not the right way of doing it...
Still if you want to achieve that -
1. Un-tick the "Identical values" button in Dep Area Definition.. You might have currently set up Dep Area 15 to adopt values from Area 01
2. Create a new tr type (Copy of 100) and restrict it to Tax dep area, as you did
3. Now, execute T code ABSO with this trans type....
But, I repeat again, the solution I gave earlier is the std way of doing it...
Regards
Ajay M

Capitalization of Asset Under Conustruction(Investement Measure)

Hi Gurus.
I have created a Internal Order for AUC and posted expenses to that order. At the end of the period, i have settled the order using T.Code KO88.
How to capitalize part of the amount from that AUC to main asset. When i am trying to transfer to the amount using T.Code ABUMN, system is not allowing.
Please suggest me in this regard.
Thanks in Advance,
Ganesh

Hi,
Have you checked in the AUC asset class as Investment measures?
If it is Investment measures, you need to give second settlement rule for the same Internal order for transfering the value from AUC asset to main asset. Then do settlement again.
Regards,
Murali
Assign points if useful.

Adding "Expensed" assets to FA - 11i

Hello,
Can someone tell me whats the setup needed in FA module so that I can add and track expensed assets?
I know how to import it from AP (track as asset etc). I know we need a separate category for expensed assets (non capitalize category). But I'm having some issues when it comes to defining asset cost, clearing depreciation account etc.
The only concrete information I could get from various sources, metalink notes and user guide is that the clearing account has to be a liability account. So does Asset Clearing account will be the same as the "AP liability account"?
What will be the asset cost and depreciation account? will they be expense type? or asset accounts?
Lastly, It is clearly said that expensed assets do not depreciate and do not create any journal entries. But when i run my depreciation, the depreciation run terminates because of some cross validation rules, and the culprit is the depreciation expense account and in the asset account in the expensed asset. Why should it check for cross validation if the expensed asset doesnt depreciate?
Any info on detailed steps for configuring asset categories for expensed assets is highly appreciated.
Thanks,
Srini.

Hi
I had reviewed the following note in Metalink which talks about the loading of assets source from source systems.
In the same note they are mentioning that the obvious period in which data load is preferred is "The typical choice is last period in the fiscal year
preceding the current fiscal year, since this will provide accumulated depreciation numbers that can be reconciled with financial statements, and will also ensure that the year-to-date numbers on reports are
correct for the current fiscal year"
This means that this is the ideal period which u can use for loading the assets rather than the other side,
Also it depends on you whether you want to calculate those fields and provide the same or let system do the same once your assets are already migrated to Oracle and depreciation run is done.
It is fully dependent on how client wants the data to be migrated.
Oracle Assets only wants specific fields to be populated and for optional fields it is on the client, implementer to decide how they wants the data to be migrated/reconciled.
Please also review the following note from Metalink which might help you - Loading asset data with source data from an external source [ID 200077.1]
Hope this helps
Thanks and Regards
Manish Jain

Standard report for budget allocated, actual consumed, amount capitalize

Hi,
I need report for following condition: Is there any standard report for the same?
Once the project is capitalized, the system should provide in one report
the budget allocated, amount incurred, amount capitalized,
Date of capitalization and remaining expenses in desired WBS as on desired date.
Please suggest me, if any standard reports are available?
Regards
Bipin

Dear Bipin,
1) S_ALR_87013558 - This report will give you information about Budget, Actual, Commitment, Assigned, Budget Avail.
2) S_ALR_87011990 - Asset History Sheet or S_ALR_87012050 - Direct Capitalization ( Asset Acquistion )
Hope this will meet you requirement.
If found useful reward the points.
Regard's
Sandeep N.Theurkar

Wrongly debited expenses instead of asset

Hi experts,
Please suggest, here the user has wrongly debit expense instead of asset. It has been done though PO. Here, now i wan to be create an asset and how it will be done in sap.
Regards,
Sudha

Repair charges are not capitalizable except to the extent they are a betterment - meaning that the asset is not simply returned to its path of depreciation for certain service life, but now has additional service utility beyond that as of initial in-service date.
Additional service utility has one of two traits: service life extended beyond the initial estimate, and/or the efficiency or service capacity of the asset is increased above its initial estimate.
Regards

Direct Expensing out Asset with out capitalizing

Hello Asset Gurus,
Is there any way to directly expense out asset as it is received through Purchase order?
The requirement is to immediately expense out some low value components.
I know its possible to receive it as a LVA and depreciate it in the same month fully, but is there any other way of expensing out with out receiving to balance sheet?
If Yes, how should be the settings for GL accounts in account determination?
thanks
sap freak

Hi,
the issue you describe rather intents that you have no asset as accounting object. So why do you account on assets if you want to expense it directly without any impact on AA subledger?
You mentioned the immediate depreciation already, that would be one way. By the way, talking about accounts: if you do not use the LVA functionality, how should the system determine an expense account to be posted?
Another option would be to use limited transaction types, which would expense it directly with the "capitalization differences functionality" to one (expense) account maintained in the IMG for the depreciation areas which do not get APC amounts.
Regards,
Markus

How to turn on auto capitalization on my mac?

Hey guys,
I want to know how to turn on auto capitalization on my mac. Because this helps me to type faster in pages, keynote, etc.
Could y'all help me out?

because Apple has most of its products, phones tablets and software that start with small letters despite being proper nouns, in Apple's world it's normal to use small letters for proper nouns and start sentences with small letters.
you will have to get used to the shift button and get a bit slow on your typing. after some time you'll get used to it.
this does sound frustrating but i agree with other users that the fact that you are using an expensive Mac does not relegate you to inferior word processors. go ahead and install office for Mac and enjoy!

Capitalization of expenses

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