Capital Investment process-->questions

[Former Member]

Hi,

I am totally new into this process and have no idea about it.

I have a few queries as ->

What is an investment order illustrated with examples

what is an asset under construction and illustrated with examples

What is an internal order and how are they created?

What is a superior order and how are they created and how sub orders are assigned to the superior order and finally how the costs are settled to an AUC?

Moderator: help.sap.com

[former_member205041]

Hi,

the following link gives you a overview:

http://help.sap.com/erp2005_ehp_05/helpdata/EN/2a/f9f294493111d182b70000e829fbfe/frameset.htm

asset under construction

A fixed asset that is in the process of being completed at the time the balance sheet is being produced.

Typically, assets under construction are shown as a separate balance sheet item for the enterprise. Assets under construction can be managed for bookkeeping purposes in the FI-AA component using asset master records in special asset classes.

To also benefit from management accounting functions that go beyond the asset accounting level, you can use capital investment measures in the Investment Management component. Investment measures can be managed in the form of internal orders or projects.

internal order

An instrument used to monitor costs and, in some instances, the revenues of an organization.

Internal orders can be used for the following purposes:

Monitoring the costs of short-term jobs

Monitoring the costs and revenues of a specific service

Ongoing cost control

Internal orders are divided into the following categories:

Overhead orders - For short-term monitoring of the indirect costs arising from jobs. They can also be used for continuous monitoring of subareas of indirect costs. Overhead orders can collect plan and actual costs independently of organizational cost center structures and business processes, enabling continous cost control in the enterprise.

Investment orders - Monitor investment costs that can be capitalized and settled to fixed assets.

Accrual orders - Monitor period-based accrual between expenses posted in Financial Accounting and accrual costs in Controlling.

Orders with revenues - Monitor the costs and revenues arising from activities for partners outside the organization, or from activities not belonging to the core business of the organization.

Regards Bernhard