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.
Also as I mentioned in my previous post that IO can posted with real values and statis tical values. If you want to post statistical vales only then check the box statis tical order in control data.
Whenever passing an entry put ur IO number in "order" field.
Hope this is of use to u.
Regards,
Ajay
Similar Messages
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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 -
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 patelDear:
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 -
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
vinodHi 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. -
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.
NikhilCheck 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. -
Settlement rule for Asset Under Construction not automatically generated.
Hi Experts,
I am working on a capital project scenario where in i configured the SAP IM and SAP PS module. i am able to create AUC at the WBS level on project release,but i am not able to generate the settlement rule for AUC automatically.
Please suggest as to what i am missing to generate settlement rule for AUC automatically.
Thanks,
shivi think for automatically AUC to be generated, u need to create investment profile in OITA in that u have to tick mange AUC in investment measure. & select settlement for summary settlement.
This investment profile u need to specify in Project Profile OPSA.
do this setting & let me know whts happen?
ok best of luck.
Regards,
ANSAR -
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".
i have given the source cost element "1200002" which is created as "internal activity allocation" and in settlement cost elements folder i have given receiving category is "FXA" and selected by cost element check box. i selected required entry field in settlement profile and assigned in order type.
when i do the settlement to asset under construction from internal order it is showing bellow errow.
"Settlement by cost element not possible due to secondary cost element
Message no. KD553
Diagnosis
You want to settle the secondary cost element 1200002 by cost element to an asset or G/L account, which is not allowed.
Procedure
Extend your allocation structure R3, so that secondary cost elements are not settled by cost element, but with a settlement cost element."
please let me know the problem and where i did mistake. give me the solution
thanks in advance
Mr.RaoHI,
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".
best regards, Christian -
Migrating Assets Under Construction?
Hi all,
A customer has many fixed assets that are currently under construction during a Go Live implementation. I realize ByD uses projects as a bit of a work around for handling assets under construction in the system, but what is the best way to handle the data-migration of these assets under construction in ByD? (along with the expenses/etc associated with these assets under construction)?
thanks a lot,
-BenHi Gopal,
My understanding is that project balances cannot be migrated in ByD. We have been advised to manually key in all existing projects with budgets, sales orders etc. We are not sure what to do with existing project costs and invoices as historical data cannot be migrated either.
Since you suggested migrating the 'Assets under construction' as projects, I wonder if that is a special category? I was planning on using 'Direct Cost Project' process variant as suggested in the ByD help centre for 'Assets Under Construction'
Any further information is appreciated. Thanks -
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
You cannot use this transaction type to post to this asset
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.
Procedure
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,
thanks for your answer.
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.
So you can register output tax based on the value produced but you have also to register input tax for the same amount.
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.
Best Regards -
Assign value to asset under construction
Hi Sirs,
I would like to know what i have to do to solve the problem with value for asset under construction. When I create asset with tr. AS91 in area for Takeover values, the field for ***.acquis.val. is not active.
Thank you in advance.
Regards,
DaniHi Dani
I assume that you have maintained the takeover date and period for last depreciation posted in the old system. Apart from this you have to make sure that the capitalisation date in asset master should be prior to takeover date, In order for system to recognize that asset is a takeover asset this is very important. when all the input fields are greyed , this means system does not determine it to be an old asset which it derives from cap date.
Rgds,
Zub -
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,
sravanthiDear 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 -
Asset under construction Accounting determination
Hi dear friends,
What accouts shoul I use in accounting determiation for assets under construction? Here should I inform them in OA90? Are Balance account or P&L account?
Brazilian legislation just allow its depreciation after its conclusion however we need to post values in a special area in order to receive some benefits from gevernment (to credit taxes).
Thank you a lot!!!!!
N,
Edited by: Naej on May 7, 2010 1:49 AM
Edited by: Naej on May 7, 2010 2:13 AM
Edited by: Naej on May 7, 2010 2:15 AMPlease have look at the SAP Note 7595 and check your settings against it.
Besides, all the account assignment need to be maintained in AO90 for all assets class (including AUC) -
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.
RamHi 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. -
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 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.
SateeshHi
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.
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