How to capitalize expenses related to AUC

Question

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

Answer 1

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