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TABLE OF CONTENTS
INTRODUCTION .............................................................................................4
1. Asset under Construction.............................................................................5
1.1 Define Screen Layout for Asset Master Data .........................................5
1.2 Define Asset Classes ...........................................................................12
2. Asset under Construction...........................................................................17
2.1 Define Model Orders ............................................................................17
2.2 Define Order types (KOT2_OPA) .........................................................20
2.3 Define Investment Profile .....................................................................29
3 Planning and Budgeting..............................................................................35
3.1 Maintain Planning Profiles ....................................................................35
3.2 Maintain Budget Profile ........................................................................39
3.3 Define Tolerance Limits for Availability Control ....................................46
4 Settlement...................................................................................................48
4.1 Maintain Allocation structure ................................................................48
4.2 Maintain Settlement Profile...................................................................52
4.3 Maintain Number Ranges for Settlement Documents ..........................57
5 Internal Orders as Investment Measures ....................................................59
5.1 Define Capitalization Versions..............................................................59
4.4 Maintain Capitalization Keys ................................................................65
4.4 Determine Accounts for Non operating Expense..................................73
INTRODUCTION
Dear Reader,
Investment orders are used for the production of Capital assets i.e.
Construction of Building, Plant & Machinery etc. They are used as cost object
to collect cost and monitor budgets. They can also be used for the purchase
of assets like vehicles, software etc.
Usually companies have huge amount of capital spending. Internal orders are
used as a cost object to capture cost and track the budgets. Internal orders
are basically used where the capital projects are very simple. In complex
projects, the project system module is used.
For doing the configuration we use the following path on the SAP application
screen:-
The above path will not be referred henceforth; we will directly refer to
the IMG node.
We need to define a separate asset class with a separate screen layout for
showing investment measure details. We can use SAP standard screen
layout 4010 (Capital investment measure) or we can copy and create a new
one.
Double click
Click
Double click
Double click
Select
Double click
Select
Double click
Here we define a separate Asset class for Asset under construction which is
used specifically for Investment measure.
Double click
Click
Double click
Select
Double click
Click on
You also need to do the remaining configuration for this asset class
such as account assignment. We will not cover this here; since this is
covered in the Asset accounting configuration cd set.
Model orders are not orders in the commercial sense, but serve merely as
references for creating "normal" orders. Model orders contain default values
for the orders in an order type. The Model order is assigned as the reference
order in the order type.
When you create a new order, all the fields active in the relevant order type
are copied from the model order to the new order
Double Click
Click
Click on
An Internal order is created under an Order type. An order type is used for
storing various control parameters and various defaults while creating an
internal order. It is used for classifying various types of internal orders
according to usage for e.g. internal orders for capital WIP and budget
tracking. A number range is assigned to the internal order type.
Click on
Click to proceed
Click
Here you can hide the various fields or make it as required entry or only
display or available for input. Thus while creating internal order only those
fields are displayed and available for input.
Click on
Click on in
Click
Click
You need to assign the order type to the group we created above.
Proceed as follows:-
Click
The internal order type Z91C moves under the group which can be seen as
follows:-
Click
Select
Click
Click
Note that the number range created and assigned, is now displayed in the
internal order type.
Click on
Also assign the model order to the order type as shown below
Click on
Double click
Click on
Here we assign the asset class 910005 created earlier to the profile
Click on
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Click on
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Click on
Click
Click twice
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Click on
The activation type controls availability control. There are three activation
types:
0 = Cannot activate
This activity type may cause an already active availability control to be
deactivated.
1 = Automatic activation when budget is assigned
You need to maintain at least one tolerance limit for the budget profile.
2 = Background activation when percentage of consumption is exceeded
You need to enter a Percentage of consumption in background activation. The
percentage of consumption represents the relationship of committed funds to
the budget as a percentage.
You need to maintain at least one tolerance limit for the budget profile to have
the system check the posting.
Double click
Click on
Click
Click
Click on
Double click
Click on
Availability control can help you recognize possible budget overruns in time
and can automatically trigger different actions.
You configure availability control for each budget profile. You can define one
or more tolerance limits for the different activity groups within a budget profile.
When these tolerances are reached, you can have the system trigger specific
actions (warning, warning with Mail, error message).
Enter activity group ++ to define the tolerance limits for all activity groups.
This activity group is designed to simplify data entry and is particularly useful
if you do not want to define a separate tolerance limit for each group.
In addition to a tolerance defined for "all transaction groups", you can define a
limit for a particular transaction group. This additional tolerance limit has
priority over the "general" limit.
Here we will specify usage variance in % i.e. 85%. If the spending exceeds
85%, system will give a warning to the user.
Click on
Click on
4 Settlement
Select
Double Click
Click on
Select
Double Click
Double Click
Click on
Click on
Double Click
Click on
Click twice
Double click
Click on
You should define separate number range intervals for settlement documents
for each controlling area.
Click
Click
Click
Select
Click
Click on
Thus you could decide the portion of costs you want to capitalize to certain
specific depreciation areas.
Double click
You will find that there exists already some capitalization version, which
are copied when you copy and create the new chart of depreciation.
Click
Click on
Click on
Click on
Double Click
Click
Click on
The capitalization keys are used to specify that certain cost elements in
certain depreciation areas of the asset under construction are not capitalized
(either wholly or in part). These portions of costs that are not capitalized are
periodically cleared as non operating expense. The system transfers the
acquisition and production costs, which do require capitalization, to the asset
under construction.
The capitalization keys created here are updated in the master data of the
investment measure under (Control data). You can also specify a
capitalization key as a default value in the asset class for the automatic
creation of assets under construction. This asset class is entered in the
investment profile of the investment measure.
Double Click
Click on
Click on
Click
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Click on
Please note that although the assignment is done to area 30 and 70 the
required to cap % is kept blank. These entries are required by system so
that no capitalization is carried out to area 30 and area 70.
Please note that although the assignment is done to area 1 the required
to cap % is kept blank.
Click on
Click Back
Double Click
Here we will not assign any default capitalization key, since users
should update it manually in the investment measure.
Here you assign the GL accounts for capitalization differences (non operating
expense) which are area-specific. The account must be assigned to asset
class for capital investment measures.
Select
Double Click
Select
Double Click
Double click
Click
Click
Click on
Scenario 1:
Click
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Click on
Click
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Click on
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Settle the cost from the internal order to the AUC first
Uncheck
Click
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Click
Click
Click
Double click
Click
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Click
Scenario 2:
Click
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Click
Click on
Click on
Click
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Double click
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As can be seen above, the postings from AUC are transferred to the
Final asset.
Double click
As can be seen above the values posted here are expensed out to GL
code 466020
Double click
As can be seen above nothing has been capitalized to final assets, since
the entries are being reversed.
Double click
As can be seen above the values posted here are expensed out to GL
code 466020
Click
Double click
Click
Double click
Click
Double click
Scenario 3
Capitalize only in area Local and Tax reporting only and expense out in
Parent reporting
Create Internal order and the Final asset with capitalization key Z91103
Click on
Double click
Click
Double Click
As can be seen above the values have been capitalized to the AUC
Double click to check the settlement to the final asset from the AUC.
Click
As can be seen above the values have been capitalized in the AUC
Hope you enjoyed reading this material. If you have liked this material
request you to please circulate amongst your friend and colleagues.
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