on 11-05-2012 9:20 PM
Hi All, we have a scenario where the Purchase Order has been created after the asset has been capitalized. Now, we would like to attach this capitalized asset to a project. I am wondering if this is possible? If yes, How?
Regards,
Sudhakar
Hi
Any asset which is under construction can be assigned to the project as reciver in settlement so that costs would be settled. But you can not assign capitalized asset to project , this is what my understanding.
Generally speaking, when we do capitalization, an asset which is under construction has been completed and then asset is capitalized. After that you are going to incurr expenses like mainenance expenses, professional expenses for start ups etc.
If you have created PO for servies like maintenance, inbound frieght & handling etc.. those costs can be posted to fixed assets means after capitalized.
Regards,
Sudhakar
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Sudhakar, thanks for the reply. I understand, what you've suggested would be the normal process. But, as mentioned earlier the Asset has been capitalized prior to creating a P.O and now they want to add the Asset to the Project. Please, suggest if this can be done or is there a way around?
Regards,
Sudhakar
Sudhakar,
what do you mean by input the CTR ( I know CTR stands for Center) do you mean to say Cost Center?
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Any inputs??
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Hi,
The best option available to you now is
As Assets are already been capitalized and you can creaet PO without any issue. As system let you post PO costs as explained in my earlier post.
If you have created a Project for this purpose, delete. Also go PO in change mode and delete the Account assignment (WBS element) and input the CTR which reference the capitalized asset. for this you have to change to accoant assignment from Q to K. If line item in PO greayed out then delete the PO line item and create a new line item with account assignment K and CC.
Regards,
Sudhakar
Hi Guys, let me give more details about this.
These Assets are purchased 4 months before the PS was implemented. As these assets are worth more than a million they capitalized the assets and started depreciating them. After 4 months(Now) they created a project and want to add those assets to the project they just created (Retro)so they can get the actual project cost.
Rafi- They created a second P.O with WBS element and wants to link the asset to the project. I know its confusing and its not a normal practise.
Kindly,share your thoughts.
Regards,
Sudhakar
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I would suggest you to give more details, you are saying asset capitalized and PO created afterwards, how it's been capitalized? And what is the PO is for? And what exactly mean attaching asset to project
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Hi,
Kindly activate WBS Element [PS_PSP_PNR] in Activate Additional account assignments in Asset Accounting
Regards
Diptadhi
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Hi Sudhakar,
As Per I understand, AUC can be added to project. But capitalized asset can't be added.
Regards
Shishir
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