Business Scenario :

A fixed asset is procured exclusively for project.As soon as the fixed asset is procured, project budget is to be used up.The depreciation of this fixed asset should get posted against the project

Standard Process :

The above mentioned business process is easily done through standard SAP.

While creating PO for fixed asset , the account assignmet category is A. In the item detail, in the account assignment we can make the WBS element to auto populate if we maintain this WBS element in the asset master as shown below : (Origin tab of Asset Master–if the WBS is not visible/editable you can make it editable through screen layout settings of asset master )

Statistical.JPG

When a fixed asset is procured and received through PO  for say $1000, then the book value of that fixed asset is $1000. Only a statistical posting can happen to the WBS element that is seen in the account assignment tab in the item detail in the PO.Through this statistical posting , the budget will be consumed. (In case the business does not want the budget to be consumed but want to see the statistical cost against the WBS element, then the cost element against which the posting happened can be excluded from budget availability check)

Since this fixed asset is procured exclusively for the project, depreciation has also to be posted against this project only. The WBS element against which the depreciation has to be posted can as well be maintained in asset master as shown below:(Time-dependent tab of Asset Master– if the WBS is not visible/editable you can make it editable through screen layout settings of asset master )

Depreciation.JPG

When depreciation run is done (transaction AFAB), the depreciation gets posted to the above WBS element (as per settings in Depreciation Areas tab in asset master). The book value of the asset gets reduced by the depreciated amount (obviously) and the same amount gets posted as actual cost against the WBS element.

The WBS elements that are used in the asset master — the one to post the statistical cost and the one to post the depreciation can be different and the respective profit centers can also differ.

If the business scenario demands, either of these WBS elements field can be left as blank and we can utilize the functionaility of the one that is used.

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2 Comments

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  1. Saurabh Tiwari

    Hi Jindow,

    Nice write up.

    I want to know that with Account assignment category A and account assignment to both WBS and asset, will the system give error of budget overshoot against WBS? or it will make only a statistical posting against WBS.

    Actually,I want the budget check pop-us in such a case and that I am not getting now. Please suggest me if you have a better idea?

    Regards

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    1. Ken Melching

      There can be only one Real CO object per posting, so the WBS postings will be statistical.  But…statisitcal postings to WBS elements do consume budget.  So, yes, you will get an error or warning if the budget is exceeded.

      (0) 

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