Procurement of Assets Under Construction
Hi SAP Gurus,
Recently I got some project specific requirement for which we have to procure the materials to make an assets.
The step by step process is described as well as i welcomed to any comment which makes this document more helpful to the beginners & also will be do the same for me –
As per business requirement we have to create Internal Order to trace all the capital expenditure for the new Assets. The expenses should be booked and accumulate in assets under construction till the completion of the building. Once the building completes all the expenses should be transferred to Fixed Assets.
Asset Under Construction linked with Internal Order Process High level steps –
- Step 1- Respective user will create the internal order in SAP System. – KO01
- Step 2- Assignment of Budget to the internal order and after assignment approval from the respective approver. – KO22.
- Step 3- Creation of Asset under Construction Master Data by the specific user. – AS01.
- Step 4- After creation of Assets Master record in SAP system the concerned user will create the Purchase Order (ME21N) in SAP system.
- Step 5- Release the Purchase order (ME29N) in SAP as per authorization matrix.
- Step 6- Goods receipt (MIGO) is also taken care the concerned department after the delivery is made in SAP system.
- Step 7- After the MIGO, Invoice receipt (MIRO) is also taken care by the Finance department. The depreciation will not run against the AUC.
- Step 8- Post the Payment (F-53) to the Vendor.
- Step 9-Fixed Assets Creation as per actual asset class – AS01.
- Step 10-Settlement of Asset Under Construction into Fixed Assets – AIAB.
- To check the balance against the budgeted amount and posting for actual assets the reports also explained after the process details.
Step 1- Creation of Internal Order – KO01
Create Internal Order Master data with required order type & other specifications.
Enter the correspond order type & press the enter –
Enter the Description, company code, plant select object class as “Investment”, Profit center & responsible user, after confirm your entries press the control data.
Set the system status Release”REL” & check the radio button of Statistical Order press save button.
Step 2- Budget Assignment to the Internal Order – KO22
Assigned the Budget to internal order to make sure the expenses cannot cross the limit which approves by the department head.
Enter the correspond order & press the enter –
Select the views as “Object Currency” & enter the budgeted amount in Overall Budget as well as current year to assign the budget amount to Internal Order.
After confirm your entries press the save button and note the Document number.
Step 3- Create the Asset under Construction by the Specific User – AS01
Create the Asset under Construction to make sure all the postings of capital expenditure booked under this AUC till the building completion. After completion of the building the amount will be transferred to respective Fixed Assets.
Enter the Asset Class “###”, company code “####” and number of similar assets “1”.
Enter the specific description for Asset under Construction to post the entire capital expenditure under this asset. Click on the “Time-Dependent” Tab to enter the cost center –
Enter the Correspondence cost center and press the save button.
Step 4- Create the Purchase Order with respect to Asset under Construction by the user – ME21N
Create the Purchase order with respect to Asset under Construction using the internal order (Department Specific) to procure the CAPEX item.
Choose “A” as account assignment category; enter the Vendor, Purchasing Group, Purchasing Organization, Company Code, Assets number (AUC), Internal Order, Plant, Requirement number & Net. Price
After confirm your entries press the save button.
Purchase order number should be displayed after save button.
Step 5- Release the Purchase Order from the respective approvers – ME29N
Release the Purchase order from the respective approvers for AUC with the relevant internal order (Department Specific) to procure the CAPEX item.
Enter the transaction code ME29N press the other purchase order push button and enter the correspondence purchase order number.
Click on the other purchase order push button & enter the relevant purchase order number.
Press the release button from the authentic approvers.
After release Press the save button.
Step 6- Post the Goods Receipts against the purchase order for AUC – MIGO
Post the Goods Receipts in SAP system against the purchase order for AUC with the relevant internal order (Department Specific) to receive the goods for CAPEX.
Go to transaction code “MIGO” enter the relevant purchase order for AUC, Delivery Note number & press enter.
Click the item okay check button and post the goods receipts.
Please note the document number after save the Goods Receipts.
Step 7- Post the Invoice Receipts against the purchase order for AUC – MIRO
Post the Invoice Receipts in SAP system against the purchase order for AUC with the relevant internal order (Department Specific) to verify & enter the vendor Invoice for CAPEX.
Go to the transaction code MIRO enter the relevant entries and press enter.
After confirm your entries press save button.
Step 8- Post the Payment against the Invoice sent by the vendor – F-53
Post the Payment against the Invoice Receipts from the vendor.
Go to the transaction code F-53 enter the relevant entries and press enter.
After enter the mandatory fields press “Process Open Item”.
Press the Save button.
Step 9- Create the Asset Master record As per actual Assets class with specific details – AS01
Create the Assets Master record as per actual Assets class for which capitalization has to be done.
Go to the transaction code AS01 enter the relevant entries and press enter.
Enter the Description for the Asset after enter the description select “Time-Dependent” Tab.
After Enter the cost-center press the Save button & note the Assets Master Number.
Step 10- Settlement the Asset under Construction into Fixed Assets to capitalize & activate the depreciation on the particular Assets. – AIAB
Transfer the amount to the Actual Fixed Asset to capitalize the Asset & start the depreciation on the actual Asset.
Go to the transaction code AIAB enter the company code, AUC, sub number and press execute button.
Select the Line item and press the Enter Push Button
Press the enter push button to settle the amount.
Enter the Category”FXA” Relevant Asset Master Number which has to be capitalized and press Back button.
Press the Settlement Push Button.
Enter the Asset Value date (The date from which the Asset being capitalized and depreciation will start.)
Press the Execute button.
Now press back button
Actual Assets is Capitalized from the Asset Value Date, Asset under Construction is getting zero.
Asset Value can check through Asset Explorer.
Go to transaction AW01N enter the correspondence Assets Master number and press Refresh Asset –
The Actual Asset is capitalized from the Asset value date.
The value of Asset under Construction should be nil.
Enter the AUC and press Enter –
The Value of internal Order against the Budget must be post–
Go to transaction code – S_ALR_87013019 to display the actual post amount against the budgeted amount
The consumed amount is display against the budgeted amount as well as available balance amount.
Good work Ankur...Keep it up... 🙂
Thanks a lot anand 🙂
Very nice document, keep it up,..
thanks @anshul, sure will do this,..
Good knowledge sharing Ankur, Thanks 😎
Thank you syed,.. 😎
very nice document....
Thnx Adit 🙂
Nice document Ankur,....
Keep posting such information!!
Sure & thanks!!
Thank you Kittu 🙂 !!
Very nice and useful document, Ankur,
Thanks a lot.
Thanks a ton Shantaram!! 🙂
many thanks شكرا
how to block the AUC number after capitalization
you can block a asset, to block or delete a asset use the transaction code AS02, enter the asset number and select the asset from menu bar here you can select as per your requirement whether you want to delete a asset or block a asset!
Please check & do let me know if faces any difficulties.
Thanks & regards,
Many thanks and sorry for delay reply
No problem!! anyways welcome!!
I think i understand for delays in reply,..
Dont tell any1 its #New_community 😉
i want to asked about Sales and Marketing expenses
when we have event or Booth . i need create some thing like AUS (its Pool special expenses such event)
But your requirement is completely different and as per my knowledge you need to do budgeting to control this, meanwhile budgeting through internal order.
Please try and take help with your FI team or do let me know in case you need more insight on this.
Hi Ankur ,
i need your help at settlement Rule
i have internal order for CAPX . and this amount at GL
i made settlement Rule but at KO88 i see the attaches (error _ Complete allocation structure A5)
Sorry for the late reply, Please share the screen shot of your error, with little bit more elaboration so that I can look into it,..
Very Nice Blog Ankur….Keep it up…
Please do post more Blogs and New requirement related Blogs as well.
Thanks a lot Sathish, for sure I will work on new blog!
let me think in which area I might be helpful to SAP community & will work on it!
Thank you Hari 🙂
Hope you are good
Thanks a lot for sharing that valuable information.
Thanks Kiran 🙂
Nice document but i have one doubt after the AUC settlement to main asset will the values only shows/updated in 01-book dep.area or even in other dep.area too. in your case its 02-Statutory dep.area
Its something depend on your configuration for Dep. method, based upon this system will start posting Dep.
Its based upon depreciation method you used with your asset class, so itt will update 01 as well if you configured.
Nice document to understand the AUC process.
Please clarify is there any use of IO here other than tracking the expense or posting the PO to IO. If we need to key enter the IO in the PO document, then do we need make the IO field as a mandatory one for CIP account?
How to acquire and settle the AUC without IO, please explain the process.
Internal order report.. System not deducted Actual posting amount..im maintaining budget profile.. 100000.. Actual posting 16000. The 16k amount not deducted in the budget profile.. What is the reason.. Please help me..
can you post your query as separate question over community page?
Please provide the solution Ankur.. Is there any configuration for that please tell me.. I'm stucked last one week..