Sales order creation for a capital WBS

[Former Member]

Hello friends,

Seek your inputs in understading the concept behind sales orders for capital WBS elements.  Please let me know-

1. Sale orders can be created for Billing elements, but not to capital elements, why?

2. I can create a SO for a Billing element and capture the Revenue with that, Whats required if I wanted to do it for Capital WBS (though the WBS is used for capitalization).

3. Is it possible to create a SO for a Capital WBS (without being tagged as a Biling element)

4. Whats the difference between Capital sales order & Revenue sales order?

Thanks,

Regards,

Sumanth

[sunil_yadav2 · Accepted solution]

Sumanth,

Sales Order means you have received order from your customer for any product which is manufactured or trading from your company, for which customer have to pay you. so you will get revenue which means this is customer oriented approach not capital approach.

In capital, you can make any product for your self use like: a company is constructing any building for their own use so this building is capital for company.

thanks

Sunil

[Former Member · Accepted solution]

Hi Clara /Sunil,

Thanks for your suggestions, they really make sense.

I too agree that, when someone sells their product to any customer, via SO, revenues can be earned (the SO should require a Billing WBS element). And, I also agrees that, in Capital projects, the basic concept is to develop an Asset for the company (for own use, etc) finally leads to Capitalization of the Asset.

But, is there any scenario possible that, the capital Sales Orders would be used in general?

Regards,

Sumanth

[Former Member · Accepted solution]

All Sales ORders are revenue orders, unless you are giving away samples then they are free goods. 

As the others have stated a Capital Sales Order doesn't make sense.

Please explain a business process where you think a Capital Sales Order exists.

[Former Member · Accepted solution]

Hi,

As such scenario Capital Sales Order was not exist , Since expenditure cant be booked through sales order. As Sales Order was utilised to book Revenue.

As per the process , All the expenditure of that Asseert AUC should be capitalized  & Settled to the  Asset, And if required that  assert can be Sold out to the Customer by Fi process.

But through the sales order they can capture the revenue by the cost object , assignment of WBS.

Regards,

vrkumar

[Former Member · Accepted solution]

Thanks friends for all your suggestions.

It seems the concept itself is very rare and not a best practise per standard SAP. I am marking this query as answered.

Thanks all for your time and support.

Regards,

Sumanth

[former_member209919]

Hello Sumanth,

1. Technically I have never tried to create a sales order for a Capital WBS, but functionality it doesn't make sense. The capital projects are expenses that can be capitalized and impact in your assets. If you link a WBS to a sales order, the costs entered in the WBS belongs to this sales order ( you are selling to the customer)

2.  Wbs with accounting flag, investment profile and settlement profile lets settle to asset

3.  SO have to be linked to a billing element

4.  No idea what is a capital so

I hope this can be useful,