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Asset Io Auc

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AUC
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    Budgeting for Capital Expenses Purchase of Assets GL Accounts are created for Capital expenditure ( P & L ). These are created as cost elements. Commitment Items of Budgeatble nature is assigned to these GL Accounts.  An Order Type G600 is created and real orders are created for every assets purchased.  Assets are also created while creating the Orders. The orders are assigned to the fund centers and budget is entered on the fund center for CI. The PR/PO is prepared with the Account Assignment as ' F' and order no is given as assignment. The budget is updated . Order settlement is done on a monthly basis. A GL account is created for settlement of capital exp. On settlement of orders the assets are debited and this settlement Gl is credited. While settling the order even if update the asset value date , the system takes the settlement date i.e the month end as the asset value date for depriciation calculation. We have to go and change this date for every asset to have correct date for depreciation calculation. Capital Work in Progress: Projects GL Account is created for Capital WIP ( P & L ). These are created as cost elements. Commitment Items of Budgeatble nature is assigned to these GL Accounts.  An Order Type G700 is created and real orders are created for every project type assets. Investment profile 000001 is maintained for these orders.  Assets under Construction is also created while creating the Orders. The orders are assigned to the fund centers and budget is entered on the fund center for CI. The PR/PO is prepared with the Account Assignment as ' F' and order no is given as assignment. The budget is updated . Order settlement is done on a monthly basis. A GL account is created for settlement of capital exp. On settlement of orders the Asset Under Construction is debited and this settlement Gl is credited. On completion of this AUC settlement is done to the assets  --------------------------- <b>1. Procurement through pruchase dept (if MM module is using)</b> 1. Raise PO (ME21N) 2. Asset (Goods ) receipt (MIGO) Dr Asset account Cr Asset clearning account Cr Tax account (if required)  3. Raise Invoice (MIRO) Dr Asset clearning account Dr Tax account (if required) Cr Vendor 4. Payment (F110 or F-58) Dr Vendor Cr Bank <b>2. Direct procurement by finance dept</b> 1. Purchasing (F-90) Dr Asset Cr Vendor 2. Payment (F110 or F-58) Dr Vendor Cr Bank <b>3. Asset under construction (Build Assets)</b> YOu can settle AUC in two ways a. Through internal order (KO88) b. Through distribution and settlement (AIAB and AIBU) 1. Asset settlement thought internal order is general used for assets under construction. All costs are pooled in the internal order. Periodically or whenever wants the internal order is settled (within a fiscal year) i.e. the amounts in the internal order are capitalised. First create an internal order (KO01) , take object class as investment and give investment profile. Now system asks and creates one AUC account under asset class 4001. Then create settlement rule (KO02) and release the order (control data tab) Post some amounts (like wages or non-production material ) to internal order. Then come to KO88, first take the automatic settlement and run. The accounting entry passed is  Asset under construction a/c Dr To Wages a/c If you want to complete the settlement to auc, then take now full settlement option and run The accounting entry passed is  Asset a/c Dr To Asset under construction a/c While doing settlement in KO88, you can give any settlement period, posting period and asset date, but all should be in the same fiscal year. If you want to close the order go to KO02, give order number and take control data tab and click on technical complete tab on the screen and save. Internal order will be closed. <b>b. If your AUC is under Asset class 4000</b> This auc account is created directly becasue of direct postings to AUC account. Posting are made through F-90   Entry for example  AUC a/c dr To vendor or bank account Go to AIAB ---> Give distribution rule and go to AIBU --> Settle the asset Entry passed is  Asset a/c Dr To AUC a/c The advantage of this is you can settle this AUC (4000) whenever you want. You can use Internal Orders for controlling capex. It is possible to enter budgets at internal order level as well as control the same. For this you need to Budget Profile & activate the commitment management for the order type. In budget profile, you need to activate the availability control. You can also specify the person, who should be informed once budget is exceeded. From internal order you will be able to settle cost to AUC. Cost elements of this category are generated automatically  when you create cost elements in Controlling that have asset reconciliation accounts, that is, special balance sheet accounts, as corresponding general ledger accounts in Financial Accounting. You cannot change this cost element category in CO master data maintenance.  FI does not require CO account assignments of category 90. However, if you do enter a CO account assignment, this is only updated statistically even for true CO objects. Cost elements of category 90 enable you to control the costs  of an order or project budget during the acquisition of fixed assets that can be directly capitalized. To achieve this you enter a capital investment order or work breakdown structure (WBS) element in the appropriate field in the asset master data. The Asset Management (AM) component ensures that when the asset is acquired, the order or WBS element is automatically entered in the document. Use t code OAK7 for creating cost elements for statistical automatic posting of assets. This is what I've done : 1. Create asset master with asset class equiptment with AS01  2. Create a statistical order with KO01  3. Assign the order number to asset master with AS02 (tab time-dependent) 4. Assign budget for the related order with KO22  5. Create PO with ME21N + Account category = A + Assign the asset number.  6. Create MIGO  7. Asset value updated - AW01N. But it seems that no link between my asset and the IO budget. Because I put my budget 2.000 and my purchase amount is 4.000. No errror/warning message appear. My requirement is to have some budget control on the asset directly. Is there any other way besides using IO ? If I use IO as an statistical order, is that means that there is no further action need to do by month end process like settlement and else ?
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