WBS Elements and Asset Under Constructions have different Cost Centers

Hello Experts,
We have created a WBS element in one of the projects.
As per standard process, when we create the WBS Element the Asset under construction is also getting created through the settlement rule within the WBS.
These assets should have the same Cost Center as the WBS has. However we are in a situation wherein the Cost Center in the asset under construction is different than the Cost Center in the WBS.
I have checked the settings like automatic account assignment, etc but all settings look correct.
Can you please explain first what could be the reason for such a difference between Cost Centers in WBS and AuC's and what is the solution to avoid it in future?
Thanks in advance
Leena

Thanks for your replies...
@ Alex - There is no Investment Programme ID maintained for this WBS in question since there is no IM for this project.
@ Abdul - Please elaborate more on Validation and Substitution.
Regards,
Leena.

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Asset used for both repairs and asset under construction

i had doubt for example if we purchase cement bag through po and half of this is used for repairs of old building and remaining half is used for construction of new plant which is to be capitalised how this can be done in sap.
thanks in advance.........................

Another solution would be to use WBS elements.
Have WBS elements for the separate projects.
Code part of the PO to the construction WBS and part to the expense WBS, if you know in advance that half the bag will require a different account assignment.
If you do not know until after acquisition that half the bag was utilized for repair, for example, reclassify that amount from investment measure WBS/AuC to expense cost center. You can do this either before or after Project System settlement into investment measure.
The audit trail is not perfect however, since the acquisition transaction (PO based materials document) still believes the entire cost amount was to be capitalized.
Not a problem if immaterial, but maybe consider going back and correcting MM transactions if material and if policy procedure requires.
Regards

Report:actual costs:statistical wbs elements and assets assigned to them

Hi all,
I would like to run a report that gave me this info:
WBS Element (all statistical)
Assets assigned to each WBS
Actual costs
It would be perfect CJI3 but it doesn't show assets. In AM I haven't see either any report that shows WBS elements...
any ideas???

Thanks for your reply but this is not the question.
The question is:
Example:
I have 100 WBS Elements. Each of them has an average of 5 assets assigned. (what makes 500 assets)
I post lot of invoices in each asset.
I would like a report that tells me at once the total actual amount posted in each ASSET and group those costs by each WBS element.
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Report: Statistical WBS elements with assets assigned to them - actual cost

Hi all,
I would like to run a report that gave me this info:
WBS Element (all statistical)
Assets assigned to each WBS
Actual costs
It would be perfect CJI3 but it doesn't show assets. In AM I haven't see either any report that shows WBS elements...
any ideas???

Hi
There is not a standard report which can cater to your requirements. You need to develop one.
You can take the refernece from CNS41 report for development. Some of the fields you need are PRPS-XSTAT for statistical WBS and will have to use tables ANLA and ANLC to fetch asset master data.
Regards

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

PS-Relationship between the system status in wbs elements and activities.

Relationship between the system status in wbs elements and activities.
We have the following requeriment with the system status in PS. We have a project with complete technically status and we want to undo the complete technically status in one activity without changing the complete technically status in the WBS element or the project.
The reason is that after putting the complete technically status, users have to change the values in the P.O. We don´t want "open" all the project and we only need to "open" the activity where the P.O. are in.
Is that possible? How is connected the system status between activities, wbs elements and the project son I can change the status in the below step without changing the higher steps?
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Hi Bala
Yes, you have put it rather correctly.
We use WBS elements for booking and posting time (client requirement). So what I am looking for is WBS Elements with the system status TERL (Time and Expense Released).
I talked of the deletion flag also, because a WBS element flagged for deletion can't be used. It's one of the criteria to screen the WBS elements.
I hope it's clearer now.
Vinitha.

Settlement of WBS element down payments to an asset under constructions

The down payment (of the transactions tcode F-47 and tcode F-110), are
always settlement wbs element (tcode CJ88), we do not want to post down
payments to the receiving asset under construction (transaction type
180 or 181).
In the down payments are always taken into account in the settlement to
an asset. The settlement of the down payment is the actual reason for
the previous update of down payments in FI (Transaction type group
15). Furthermore, the settlement of down payments to assets should
not be capitalize.

When you search on this forum try to put Date range "ALL" to get more results. Please read below threads and you will get the solution.
MIRO:Transaction in area 15 contradicts the net book value rule
Transaction in area 01 contradicts the NBV
Looks like you have a negative balance in your WBS which you are trying to settle to FA.

Error when processing asset under construction (AuC) for WBS element message no cj824

Hi,
i am getting error message when i change dates in activities.
Error when processing asset under construction (AuC) for WBS element
Message no. CJ 824
i have checked related post but did not find any solution. also check SAP Note but not related to my issue.
Please guide.
thanks
Sunil

Hi Ken,
Please check below screens:
according to this error message AUC has some missing field or some incorrect value. but when i checked via program RAUNVA00 which will display
Incomplete Assets - Detail List.
but this program does not return any incompleteness.
i found many threads and SAP Not but none of is related to my program. this problem comes when i change dates in activity and save the project.
Please suggest what to do now.
thanks
Sunil

Asset under construction-IM module

Hi,
I am planning to manage the asset under construction (AUC) by the PS module. This means to create the AUC through the WBS element, and finally settle to the final asset. For doing that I understand that the asset under construction class should be created as an investment measure.
I am asking if it is necessary to implement the IM module to manage the AUC by PS module.
If it is not necessary which is the difference of having IM implemented?
Regards,
Cecilia

Hi Cecillia,
To answer your questions:
You need to define specific asset class for AuC (status of AuC "investment measure" in OAOA)
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.
Good luck and best regards
Thomas

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Hi Guys ,
please hlep on this AUC :
During month end settlement run (via tcode KO8G), if there are -ve (credit) values to be settled to an Asset Under Construction (AUC) asset which does not have sufficient +ve value in the current FY, the settlement run will prompt an error message "Balance for transaction type group 10 negative for the area 01". The TT posted via the settlement run is TT115. To get around, user has to raise a manual journal (via doc type AT) to post the -ve value to the same AUC asset via TT101. TT 115 and 101 are configured differently (see attached).
Since the Fixed Assets system does accept credit posting to AUC via a journal, is there a solution to make posting go through via the settlement run?
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Narra

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
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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.Rao

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".
best regards, Christian

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
·        External activity (acquisition from vendor)
·        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

WBS element in Asset Master (Period Dependent Tab)

Hi
I have activated the WBS Element in Account Assignment Object in Asset, which has resulted in WBS Element field has appreared in Period Dependent Tab.
But the issue is that its grayed-out & i am not able to fill-in any data in it.
Can you please infrom me how can i activate WBS element in Asset Master ( Period Dependent Tab)
Regards
Ashwin

hi,
goto asset master screen layout and put tick mark under time dependent data.
govind.

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.
Sateesh

Hi
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.

Mass Capitalisation Asset under Construction to Final Asset

Dear all
Is there any process to mass capitalise Assets under Construction to Final Assets. My client has many assets under construction which need to be settled to a final asset on a periodic basis. They are currenly using t-codes AIBU and AIAB however is there a way to do this for many AuC at one go. Thank you.
Regards
PRG

Hi
You can try using an LSMW for AIAB and AIBU...
I dont think we have any T codes for MASS settlements, unless you have IM active and you use WBS or IO for AUC... In that case, you can use CJ8G or KO8G
br, Ajay M

WBS Elements and Asset Under Constructions have different Cost Centers

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