Assign Fixed Asset to Project

[former_member279193]

Hello PS Experts,

Is it possible to assign an existing Fixed Asset to a New Investment Project? What we are trying to do is have a WBS that creates an Asset Under Construction for a new plant and also WBS that reflect the cost for existing machinery, is it possible to have this link without having to create AuC since the Final Asset already exists?

Thanks in advance.

Regards Ed.

[Former Member · Accepted solution]

Hi Eduardo,

     AUC is nothing but a "capital work in progress" which needs to recognized periodically. Asset under construction is mainly used in the case where the progress is on and that is going to be your Fixed in furture, in this situation, you do the settlements on to AUC periodically until you recognize that as final asset and later post it to Fixed Asset.

Ex: Constructing a building is a Project (AUC is must)

There are cases where you don't need AUC at all and can directly post on Asset.

Ex: If you buy a vehicle then you don't need to have a AUC, you can directly settle to Fixed asset from WBS element or from what ever cost object.

If you are using Investment management and AUC is getting created during the time of release of the WBS element, the setting is in the Investment profile and the path is as shown below:

SPRO: Investment Management-->Projects as Investment Measures-->Master Data-->Define Investment Profile-->Define investment Profile--> (for the profile you are using remove the checks (Manage AUC, Auc per Source Structure, if you don't want AUC to be created automatically) retain Manage AUC check if you want AUC to be generated for the WBS where the investment profile is assigned).

I hope you are clear now with the usage of AUC and Fixed Assets.

Rgds

Sudhir Reddy

[former_member279193 · Accepted solution]

Thank you Sudhir, Sudhakar and all for all the vauable information.

Regards.

[former_member611250]

Nice post. Thank you all for taking the time to have this interesting discussion and especially replying Eduardo when his FI consultant approach was not 100%. Very helpful for all the community.

[sanjeevc]

System will allow to existing FXA as a receiver and agreed with Sudhakar & Ken both point-out that you need talk to your FICO consultant and business user for taking appropriate decision.

Regards,

Sanjeev

[former_member279193]

Thank you all for the information.

[Former Member]

Hi Eduardo,

for the benefit of the forum can share what is your approach?.

Thanks,

Sudhakar

[Former Member]

Hi Ed,

Are you mentioning about having two different WBS elements, one with AuC and the other without AuC ? If so, yes, it is possible. But, if you are using the same WBS element, initially as AuC to receive costs and then finally settling to an already existing asset then you need to note that the depreciation will be from the date, the asset is originally capitalized.

[former_member279193]

Sure Sudhakar,

For the new plant since theres no final asset we are going to follow the regular procedure (WBS with AuC and settle to the new final asset).

For the existing assets (machinery for example) those have been created from ME21N (assigment to Asset, no reference to Project) the FI consultant suggest that if the user wants to see the cost of those existing assets in the projec a manual allocation can be done using KB15N from the cost center to the WBS and then at the end of the project settle those back to the corresponding cost center.

What do you think?

Regards Ed.

[Former Member]

Hi Eduardo,

You must be procuring the assets using PO (through MM) modules with account assignment A. This is not an issue and no need to use WBS element in this case. This is an external procurement process of asset.

I am not in sync with your FI consultants suggestions to see the costs of existing asset in the project. If you are interested to total costs of assets, there reports available to see the costs by period wise and when the deprication started also. What is the need to assign those existing assets and see the costs?

Why and what is that costs you wanted to post from cost center to WBS using KB15N and then settle back to cost center?.

Please refer to the below URL related to Fixed Assets described in detailed way.

http://wiki.sdn.sap.com/wiki/display/ERPFI/All+Other+Information

Thanks,

Sudhakar

[Former Member]

Hi Eduardo,

          The View from your FI Consultant is possible, but lot of manual work is required.

1. You need the machine value from the reports.

2. Post KB15N manually.

3. settle the cost again from WBS to Cost Center.

4. at the end of the day you have to use different and consolidate those reports to figure out the asset value.

Instead there are two work arounds for direct postings on to Asset.

1.     If you are considering the procurement as project then post the goods receipt on to WBS element and settle the costs on to the Fixed Asset. the Asset to WBS element relation should be 1:1

2. if you are not treating this as a Project, then use Internal Orders created for each Asset that you procure use the Internal Order as account assignment in PO and post Goods receipt on to Internal Order and later settle to Asset. Based on the "Order Type" you can easily report the asset value.

I hope, thing will bring some idea on the usage.

Rgds

Sudhir Reddy

[Former Member]

You can assign a FXA to the settlement rule of the WBS, but as Sudhakar said check with your Asset consultant on how the additional capitalized costs will be treated by the asset such as catch-up depreciation.

[Former Member]

Hi,

Technically I would't see any issue. However the existing fixed asset might have already in process of depreciation and at this point of time posting new costs not sure!.

Please discuss with your Business and FI Consultant and take appropriate decision.

Let us wait and see what others to say here.

Thanks,

Sudhakar

[former_member613562]

Hi Ed,

Assign the Existing fixed asset in the settlement rule, and do the settlement run.

All the cost acquired at the AUC will be transfered to the Fixed asset.

Regards

Simon