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spare parts - assets or materials


I work for a power generator and our inventory mostly consists of spare parts - not items for sale.

For accounting purposes, we are required to classify some of these spare parts as fixed assets (rather than inventory) as these parts will not be used in the next financial year.

These spare parts sit in the store and from time to time are purchased or issued to maintenance orders or into assets.

We wish to record depreciation/provision for obsolescence on the spare parts.

I would appreciate some advice on the best way to treat these items in SAP is (from someone who has worked with Utility companies with similar issues). Is it:

- record them in MM but have posting to fixed assets g/l code and manually record depreciation/obsolescence?

- record in AA and have partial disposal when some spare parts are used?

- record quantities in MM and values in AA?

- other???





When Asset Material Stock are withdrawn from warehouse, as you have created these materials under a seperate material group under nonvaluating class, you post goods issue through movement type 241 - consumption of warehouse goods for assets

by mentioning the Material and Asset in the next screen. Rest of the transactions will be taken care in Asset Management

whether to capitalize it on Main Asset or to dispose off. In MM there will be change in quantity/ nos. where as in asset

management area there will be change in quantity/nos. as well as the value.

Best Regards,


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