FIN Asset Accounting, SAP MM, SAP Guides

Asset under Construction through MM

What is AUC?

AUC is Asset under construction where some assets are in construction phase and cost needs to capture through internal order for the time being. Once asset is fully completed then cost would be transferred to another cost object (E.g. Cost center) and settle with final asset.

E.g. ABC company constructing building for their office. While construction many expenses are attached to it. Till the time it is created we can not charged it in Building account hence we need to create AUC account where cost will be stored.

Process of AUC

1. Create AUC asset class in OAOA

2. Create Allocation Structure in OKO6.

Click on “New entries” to create allocation structure.

FIN Asset Accounting, SAP MM, SAP Guides

Go to Source to assign GL account(P&L) which is “Material Transfer to Asset”

FIN Asset Accounting

Click on Material to assign GL.

FIN Asset Accounting, SAP MM, SAP Guides

Go to Settlement cost element to add receiver “FXA”

FIN Asset Accounting, SAP MM, SAP Guides

3. Create settlement Profile and assign allocation structure with settlement profile in OKO7

FIN Asset Accounting, SAP MM, SAP Guides

4. Create Planning profile in OKOS

FIN Asset Accounting, SAP MM, SAP Guides

5. Create Budget profile in OKOB

FIN Asset Accounting, SAP MM, SAP Guides

6. Create Order type and assign Budget profile, Settlement profile and Planning profile in KOT2

FIN Asset Accounting, SAP MM, SAP Guides

7. Create Investment profile in OITA

FIN Asset Accounting, SAP MM, SAP Guides

8. Create IO as well as AUC in KO01

Create IO:

Assignment Tab:

Assign Profit Center

FIN Asset Accounting, SAP MM, SAP Guides

Control Data Tab:

In this section System status should be in Release stage “REL”

FIN Asset Accounting, SAP MM, SAP Guides

Investments Tab:

Assign Investment Profile in this section

FIN Asset Accounting, SAP MM, SAP Guides

Create AUC through IO. Go to Extras-Asset under construction

FIN Asset Accounting, SAP MM, SAP Guides

Create AUC:

General Tab:

In this section put capitalization date and text

FIN Asset Accounting, SAP MM, SAP Guides

Time Dependent Tab:

In this section assign IO

FIN Asset Accounting, SAP MM, SAP Guides

Depreciation Tab:

In this section Depreciation Key needs to be assigned.

Note- Depreciation key is “0000”, as depreciation is not calculating in AUC.

FIN Asset Accounting, SAP MM, SAP Guides

9. Create PO with Account assignment “F” (Order) in ME21N

PO needs to be created with Account Assignment “F”, GL needs to be selected manually in Account Assignment tab with IO

FIN Asset Accounting, SAP MM, SAP Guides

10. Post GR in MIGO and Invoice in MIRO, it is normal like other PO invoice processing

11. Create main asset class in OAOA

FIN Asset Accounting, SAP MM, SAP Guides

12. Create Main Asset master in AS01 where AUC will be settled

Create Main Asset master with Cost Center.

General Tab:

In this section put Asset description and Capitalization Date

FIN Asset Accounting, SAP MM, SAP Guides

Time Dependent Tab:

In this section select Cost center

FIN Asset Accounting, SAP MM, SAP Guides

Depreciation Area Tab:

In this section select Depreciation Key, Useful life and Depreciation Start date

13. Settlement with AUC in KO88

Here IO will be settled with AUC. Put IO and select Processing type Automatic. Before Final Run always perform a Test Run which will show if there is any Error.

FIN Asset Accounting, SAP MM, SAP Guides

Go to Settlement Rule and Add AUC because IO will be settled with AUC.

FIN Asset Accounting, SAP MM, SAP Guides

Add AUC in Settlement Rule

FIN Asset Accounting, SAP MM, SAP Guides

Go back to the main screen to perform the Test Run as well as Final Run

FIN Asset Accounting, SAP MM, SAP Guides

14. Settlement with Fixed Asset in KO88

Here AUC will be settled with Fixed Asset.

Fill up the necessary details and select processing type Full Settlement

FIN Asset Accounting, SAP MM, SAP Guides

Go to Settlement Rule and Add Fixed Asset because AUC will be settled with FA.

FIN Asset Accounting, SAP MM, SAP Guides

Add FA in Settlement Rule

FIN Asset Accounting, SAP MM, SAP Guides

Go back to the main screen to perform the Test Run as well as Final Run

FIN Asset Accounting, SAP MM, SAP Guides

15. Check the AUC and FA in AW01N

AUC

Settlement journal entry can be seen here.

FIN Asset Accounting, SAP MM, SAP Guides

Fixed Asset

Settlement journal entry can be seen here.

FIN Asset Accounting, SAP MM, SAP Guides

Now Depreciation needs to perform on FA.

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