Internal Order Add-on

Asset Module Optimization & Accuracy in Costing / Depreciation Run:-

The goods and/or services produced, in-house, can be capitalized into asset(s).
But, there are two distinct phases during this process:

1. Construction phase (AuC)

2. Utilization phase (useful or economic life phase)

It then becomes necessary to show the assets under these two phases in two
different balance sheet items:

The construction phase is one in which you start producing or assembling the
asset but it is not yet ready for economic utilization. SAP categorizes these kinds
of assets into a special asset class called Assets under Construction (AuC).

The AuC is managed through a separate asset class with a separate asset GL
account. SAP allows posting down payments to AuC. It is also possible to enter
credit memos for AuC even after its complete capitalization, provided you are
managing this asset class and allowing negative APC (Acquisition and
Production Costs).

The IM (Investment Management) module helps to manage internal

orders/projects for AuC. It is necessary to use the depreciation key 0000 to
ensure that you are not calculating any depreciation for AuC.

Process Phases of Asset Under Construction in SAP

A cost collector is set up and funding for the AuC is budgeted and released.
Monthly Activities: Until the asset is completed, costs are settled monthly to the
AuC and/or cost center.
Once the AuC is completed, there is a final settlement to the final asset and the
cost collector is closed.

Version 1.0 June 2017 (Glosap-KAMANI-ERP Re-engineering Project)

 Asset Under Construction (AuC) Process Flow in SAP

Internal Order: P to P Cycle Settlement Vs. Depreciation: -

Balance Sheet Treatment Cost Center Accounting:-

Version 1.0 June 2017 (Glosap-KAMANI-ERP Re-engineering Project)

Version 1.0 June 2017 (Glosap-KAMANI-ERP Re-engineering Project)