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Dear SCN Members

Most of the companies intend to apply budget to prevent over spending on assets purchased , which constitute major part of the companies annual expenditure.

this expenditure is classified under Capital Expenditure all companies would put good control on both asset purchasing process and safe guard.

i will explain in this document how you can purchase an asset using preventive budget. there are two common scenario for asset purchasing using budget

– investment measure.

– Statistical Budget.

In this document i will focus on option no. 2

We have two available alternative to purchase the asset:

  • Purchase  asset first as asset under construction , and then capitalize after completion on related asset.
  • Direct Capitalization of asset.

To apply both scenario you have to follow both steps:

  1. Create Screen Layout for asset under construction & required asset classes that you intend to purchase asset and capitalize directly without accumulating  the cost and capitalize it in later  stages.

Menu Path: Spro-Financial Accounting (New)-Asset Accounting-Master Data-Screen Layout-Define Screen Layout for Asset Master Data

you choose the required asset classes ( or Asset under construction ) to activate cost order in the screen layout as below:

Screen Layout.png

click on Logical Field Groups on the left screen and choose Time-dependent data and click on Field Group Rules,  then change the status of the cost order (21) from No to Opt ( Optional )

and click on both Main No and Sub no. to allow this field on both asset main and sub number.

repeat the above steps to all asset classes that you intend to use in this scenario when you will apply both options.

Screen 2.png

2. Create Asset Class ( Asset Under Construction ) allowing line item settlement

follow the menu path :

Spro-Financial Accounting (New)-Asset Accounting-Organizational Structures-Asset Classes-Define Asset Classes

T-code : OAOA

Screen 3.png

After creation on new asset under construction  classes.we will move to  MM area to activate the internal order field in account assignment A which will be used while asset purchasing.

T-Code : OME9

Screen 4.png

now you need to check you internal order configuration , if it has budget profile and apply statistical posting for asset.

Apply Statistical Posting T-Code OAK7 ” Create cost element Type 90″ or from KA01

Screen 5.pngScreen 6.png

Check your internal order budget profile

T-Code : KOT2

Screen 7.png

i will contribute another document describing how to create a budget profile and activate the availability control..

now to the configuration process has finished you now need to know how to apply the scenario

  • Create Internal order T-Code KO01
  • Assign Budget amount in the created internal order T-Code : KO22
  • Create Asset Under Construction T-code : AS01 and assign the internal order in the asset number in time dependent tab
  • Create Purchase requisition or purchase order on and use the account assignment A that will allow you to insert the asset number and internal order ..
  • try to create the PR / P.O with amount higher than the  budget limit .. you will have a message informing you that budget exceeded and you will not be able to save the PR/P.O
  • Settle the AUC to Final asset using T-code : AIAB

Hope this document will help to put more control on Asset purchasing procedures..

Practical Note:

if you are moving from the investment measure to the above scenario and keep the investment measure running till you finish the open orders related to it , you should not create cost element to the AUC GL for investment measure and create another AUC GL for the New cycle and create cost element Type 90 for it.


Mahmoud El Nady

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  1. Former Member

    Thanks Mr. Mahmoud;

         Very helpful document where I was searching for such scenario to implement it at my customer site and it strongly fitted my requirement.

    Best regards;

  2. Ibrahim Gad

    Very helpful demonstration,

    I was looking for a document like this organized and clear. 🙂

    We are using the same scenario in addition to fund management.

    So, by combining them we can control asset class “FM” and the asset itself “IO”. 😎

    Thanks again and looking forward to your upcoming Doc.


    1. Mahmoud Elnady Post author

      Thanks ibrahim .. your feedback is much appreciated. . also you udea about combining FM with budget control will impose more control option to assets acquisition process. .


      Mahmoud el Nady

  3. Former Member

    Hello Mahmoud,

    firstly am appreciating you to take initiation to have this document.

    and also kindly let me know how purchase an asset with investment measure and what are the prerequisites to do for AUC with Investment measure.

    If possible send it to



  4. Former Member

    Hello Mahmoud,

    Very Good document. Just one clarification, if we are to use budget check against WBS and asset capitalization via the same, the only change would be that instead of internal order, we are utilizing WBS field in AS01 and WBS related budget profiles for checking the budgets. Is it right?

    1. Mahmoud Elnady Post author

      Hi Parshanth

      Thanks for your positive comment.. I am not able to tell you that if you use WBS it will give you same result , but it seems logically possible may try iy and feed us back with the result ..



  5. Former Member

    Hello Mahmoud,

    Thanks for the information. As i just know the process of asset procurement but when am executing in system getting different issues. the asset cycle ( through MM ) which am doing is

    1) PO with Acc assignment ‘A’ by entering asset number.

    2) Goods Receipt

    3) Asset Transfer from warehouse AUC  Project AUC

    4) Settlement Execution AIAB

    5) Dep run

    For the above process i need a back end configuration.

    Could you please assist me for executing the above process.

    will be more thankfull…



    1. Mahmoud Elnady Post author

      Hi Aurn

      i believe that me document is covering your mentioned required steps .. could you try it and inform me back if it work successfully with you or not?


      Mahmoud EL Nady


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