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 ..so 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:
- 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:
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.
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
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
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
Check your internal order budget profile
T-Code : KOT2
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.
Regards
Mahmoud El Nady
Thank you very much for this doc.
Regards,
Oswald
Hi Osvaldo
Thanks for your valuable comment..
Regards
Mahmoud El Nady
Very good.
Congratulations on the document!
Artur
Thanks Artur for your postive feedback
regards
Mahmoud El nady
Teslam El Ayaadi 😉
Thanks Mr. Emad Hope it helps you..
Regards
Mahmoud EL Nady
Valuable knowledge. Keep it coming.
Good and simple document.
Thanks Mr. Sudhir …
Regards
Mahmoud El Nady
Really it’s very helpfully , thanks alot mahomud
Hi Emad
Thanks for your positive feedback.
Regards
Mahmoud EL Nady
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;
Hi Ahmed
Thanks for your encouraging feedback.
Regards
Mahmoud EL Nady
Thanks for sharing this wonderful document.
Hi Sam
Your feedback always valuable to me.. Thanks
Mahmoud EL Nady
Nice Document. Thanks a lot for sharing.
Hi Gidavari
You are welcome.. Thanks for your feedback..
Regards
Mahmoud EL Nady
Hi Mahmoud EL Nady
Simply superb hope we get second document soon
Thanks for your encouraging Comment..
Regards
Mahmoud LE Nady
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.
Ibrahim
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. .
Regards..
Mahmoud el Nady
Nice document. It is really helpful.
Thanks Chirag for your positive feedback.
Regards
Mahmoud L Nady
Good document information and easy understandable.
Regards,
Vivek
Hi
Thanks Vivek for your encouraging feedback..
Regards
Mahmoud EL Nady
Thank you very much Adityaz..
Regards
Mahmoud
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 arunsap@outlook.com
Regards
Arun
Hi
Thanks Arun for your positive feedback.. if you would like to know the investment measure steps , you may refer to below document
SAP Best Practices Baseline Package
document 164
Regard
Mahmoud EL nady
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?
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 ..you may try iy and feed us back with the result ..
Thanks
Mahmoud
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…
Regards
Arun
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?
Regards
Mahmoud EL Nady
Hello Mahmoud,
Ok sure. will revert you back if i get any queries..
Thanks
Arun
Hi
Nice document. Thanks for beautiful explanation.
Regards
Karthi
Hi
Thanks for your Positive Feedback..
Regards
Mahmoud
Really l proud because i work with you
Hi Heba
Thanks so Much .Appreciated .
Regards
Mahmoud