Capital Investment process

[Former Member]

Hi,

Can someone explain to me in details the steps followed in capital investment process.

What are the basic steps followed in details?

[Former Member]

Hi,

When you have decided to buy a capital equipment, following procedure is usually followed.

FICO:

> Create an investment order for that asset.

> Create an asset, with reference to the above investment order.(can 'asset under creation' or permanent asset class, which will be decided by FICO)

MM:

> create a material master for the asset (equipment)

PM:

> create PR with account assignment 'F' and use the investment order as the account assignment. This will link the FICO activity to the procurement process and will continue as integration.

MM:

> convert the respective PR to PO and do the GR.

PM:

> create equipment master for the asset received with acquisition date filled.

> when commissioning is completed, give the start up date and install the equipment.

FICO:

> when the asset is commissioned, FICO will convert the AUC into permanent asset, if required or start the depreciation activity immediately. The permanent asset number may be entered in the equipment master.

> There are two ways to achieve link the asset to equipment master automatically and FICO can give more details on that activity.

James Prabaharn

[Former Member]

Hi,

I got a document on the steps followed for creating the capital investment processes.It is as follows:-

Capital Investment Process

Capital Investment Process is used for capturing costs incurred during capital work.

Features used are as follows: -

 Internal Orders are used

 Superior Order Functionality is used.

 Order Groups are created

 Budget is assigned to this superior orders

 Order Types u2013 ZCAP & ZZCO are used

 User status is used

Now what are internal orders?How are the created and linked to sap PM?

What is superior order?

What are order groups?

How is budget assigned to superior orders

How is user status activated here?

[Former Member]

Hi,

1. Internal Orders could be even Maintenance Orders.

2. Superior Order is that one which will be assigned to many sub orders, so that, final settlement of sub orders will be done at superior order level & finally superior order cost will be settled to Asset under Construction (AuC).

3. Some orders can be clubbed together to assign the budget profile. Budget profiles can be assigned to order or order groups.

http://www.sap-img.com/plant/control-maintenance-budget-in-pm.htm

[Former Member]

Hi,

Please can you explain me how is an investment order created?

How is an asset created?

How a material master is created for that asset?

What is commissioning?

How AUC is converted into permanent asset?

[Former Member]

Hi,

Please can you explain me how is an investment order created?u2014KO01(Use order type-Capitol Investment)

How is an asset created? u2013 AS01 (you need a cost center while asset creation)

How a material master is created for that asset?- MM01(individual activity, may co related by using same description as asset)

What is commissioning?-Physical activity like installation, leveling , balancing, utility provision, proving etc till equipment is handed over for production.

How AUC is converted into permanent asset? This is done by FICO personnel. The procedure converts AUC into a permanent asset and the depreciation activity starts.

James Prabaharan

[Former Member]

Hi,

Capital Investment orders will be used while doing some new plant erection or existing plant extension with some new facilities.

Special order that settles the costs of an investment measure to an asset under construction (AuC).

Investment measures are used to create new assets or maintain existing assets to increase their value, which you must then capitalize.

Some Useful Links:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/5b/ae48624b8611d182ba0000e829fbfe/frameset.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/ef/6429e4ddd811d1950700a0c93033d8/content.htm

Regards,

Maheswaran.