T Code: AIAB An asset that you produce in-house has two stages in its life that are relevant

for accounting: 1. Under construction phase 2. Useful life phase (on commissioning of the asset) The balance sheet should disclose the different phases in which the Assets are. Therefore, it is necessary to manage the assets during the construction phase as a separate asset master record. The activity that records the change from Phase 1 to Phase 2 is called "capitalization of the asset under construction". At SVKM, the asset under construction (AuC) are managed with line item settlement. Before an AUC can be settled to another asset, a distribution rule is assigned to the asset master record. For defining distribution rule, use T Code AIAB. Navigation Path: Accounting Financial Accounting Fixed Assets Posting Capitalize Asset u. Const. AIAB - Distribute Enter AIAB in the command field. The following screen appears.

Page 1 of 10

Update the following fields: 1. Company code 2. Asset number and sub number 3. Layout (this should always be 1SAP) Click the Enter Click Execute button to Validate the entries. button.

The following screen appears.

Click Enter Assignment Button The following screen appears.

Page 2 of 10

Click on Matchcode Button The following screen appears.

in the first row.

If you are settling to asset, select object type FXA & if you are settling to expense, select object type G/L. Here we will select object type FXA for 50% of the value of the AUC and G/L for balance 50% of the value. Click the Enter button.

The following screen appears. Enter the details of Settlement Receiver Asset to which this AUC is settled/ GL account to which expenses are to be transferred and % percentage of settlement to the receiver object

To settle by amount instead of percentage, enter the amount in the amount column. Click the Back button.

Page 3 of 10

Here you can see the status of the line items as Green. Click on the save button.

The message bar displays Distribution Rule Saved From this screen itself you can go to T Code AIBU. Click on the Settlement The following screen appears. Alternatively, you can enter AIBU in the Command field for AUC settlement. Navigation Path: Accounting Financial Accounting Fixed Assets Posting Capitalize Asset Under Construction AIBU - Settle Enter the details of Company Code, Asset number, Sub number, Document Date, Asset Val Date, Posting Date, Period and Text. Click on the Test Run and Detail List. Before carrying out the actual posting, it is always better to do test run, check the results and then remove the test run tick and carry out final run. Page 4 of 10 button.

Click Execute

button.

The following screen appears. System is reminding here to enter the Fund Center (we will enter the cost center and system will derive the Fund Center) and the cost center for expense booking (we are transferring 50% of the AUC to expense GL 480000)

Page 5 of 10

Click on the continue Now click on the simulate

button. button.

The following screen appears. Check the entry. It is debiting to Asset (50%) and Expenses (50%) and crediting to AUC (100%). This is as we have defined in distribution rule (T code: AIAB)

We now have to enter Cost Center for Expense G/L. But now we are in the Test Run. First we have to remove the tick mark on test run then only system will allow us to enter the cost center. Click on back button to go back to earlier screen. button.

Remove the test run tick and again click on simulation

Click on the item no 3.

Click on additional Account Assignment

The following screen appears. Enter the cost Center for expense G/L here. Click on green tick.

Page 6 of 10

Now click on save

button.

The following message appears on the screen.

To check the values of new asset use T Code AW01N (Asset Explorer) Enter the new asset number. The following screen appears.

Page 7 of 10

To check the entry, you can click on it in the Transactions area.

You will be directed to the entry.

T Code: AIAB Navigation Path: SAP menu Accounting Financial Accounting Posting Reverse Document AIST - Capitalize Asset u. Const. Enter AIAB in the command field. The following screen appears.

Page 8 of 10

Enter the details of Company Code, Asset number, Sub number, Document Date, Posting Date, Period, Document Type (Always AA). Here you have to enter the AUC asset and not Asset created out of settlement of AUC. Click on the Test Run option. Click on the simulate button. The system displays the overview of the transaction that will be posted.

Note here that the AUC is debited (posting key 70) and New Asset and Expense GL are credited.

Page 9 of 10

Click Back

to run the transaction in productive mode. & Click Execute button.

Remove the Test Run tick mark

Click the Save

button.

The message bar displays the following message:

Page 10 of 10