Asset Under Construction

[former_member220526]

Hi,

I know this is going to be a very basic question but i have search the forum and haven't found any thing on this. i would like to know the concept of asset under construction and its process in SAP. i am not talking about the configuration part but the end user portion. for example construction of a building started. different expenses were incurred on the construction of the building. finally the building was completed after 6 months. how will we cater this process in SAP? 

Regards,

[Former Member · Accepted solution]

Hi Faizan,

Please refer the below link which covers AUC in detail :

Assets under Construction - Asset Accounting (FI-AA) - SAP Library

Regards,

Prakash Kumar

[Former Member]

Hi,

Taking your Question as an example. Building construction.

To construct a building we have lot of expenses. But before the building get completed we can't book that cost on building (assets).

For this purpose we use AUC process. On AUC all the cost related to construction of fixed assets will be booked till the time construction is completed. Once construction is completed it will get converted into FA.

In Sap we will book cost through project/internal order for construction of building. Cost on this project is booked through purchase order for material or service procured for the project. Cost booked on project will be transferred to AUC at regular interval through settlement. Once project gets completed. Cost on AUC will be settled to FA(building).

Thanks & Regards

Bhavik Pandya

[Former Member]

Hello Faizan,

The procurement of Auc could be directly via FI or the whole procurement process can be followed:

1. Direct FI: F-90

2. Procurement Process: In PO (ME21N) give the account assignment category as "A" and AuC. Follow it with GR/IR.

The AuC can be settled to Asset

1.  line item wise of AuC

2. or whole amount of AuC.

AIAB specify the settlement rule.

Either settle through AIAB itself or do it via AIBU.

Regards

Lavanya

[Former Member]

Hi Faizan,

Please refer Asset Under Construction Configuration :

To begin with AUC config first you create Account determination , Number Range and Screen layout rule for AUC.

1. Create Asset Class for AUC (OAOA)

2. Assign G/L Accounts (AO90)

Note : There is no Depreciation on AUC, so we do not need G/L accounts for Depreciation.

3. Create AUC Asset (AS01)

then click on Depreciation Area tab.

Save the activity.

4. Acquire Asset (F-90)

5. Create Order Type (KOAL)

6. Create Settlement Rule (OK07)

7. Assign Settlement Profile  to Company code (OAAZ)

8. Transfer the AUC to Asset (AIAB)

Now you can check Asset Explorer which will show the AUC has been settled with Fixed Asset.

Regards,

Prakash Kumar

[Former Member]

Hi

Here is the link for AuC process and Concept.

http://scn.sap.com/docs/DOC-57786

Regards,

Purnima