Fixed asset creation for a lower level WBS elements

[Former Member]

Hi Friends,

I have a scenario where in, in a single project client wants to track both Capital and Operational expenditures. Client wants to capitalize all the costs incurred for capital purchases as an asset. Operational expenditures should be settled to cost center.

I have created,

level 1 - Main Project

level 2 - a. Capital Expenditures                                                                                    level 2 - b.Operational Expenditures(all statistical WBS element)

level3 (Two WBS elements-legal entity)-  a. Capital exp-India  b.Capital Exp-USA               level 3 - a. Opex-India      b. Opex-USA

level 4 - a1.capital exp-India-Hardware  a2. capital exp-India - Software                                same for Operational Expenditures

For all Capital purchases,

AUCs will be created automatically for all "level 4" WBS elements.

Level 4 wbs elements are account assigned in PO.

My question is, I want to settle each of these(hardware and Software) costs to separate Fixed assets. should I create completed asset from the level4 wbs elements for each software and hardware WBS elements.

I request an advice from the experts for further action.

[Former Member · Accepted solution]

Hi,

Your understanding is right.

For Capital Investment projects the AUCs are created as soon as the WBS  is released. You can periodically settle each of the (hardware and Software) costs on level 4 WBS to separate AUCs (Hardware & Software) during periodic settlement. Once the WBS are Technically complete & no further cost is expected to be be posted, Complete asset needs to be created for each of level 4 WBS elements. Further, Full settlement should be carried out to settle the cost from AUC to Fixed asset.

Regards,

Sejo

[former_member195427]

Hi,

In addition to above points, you can do the same in one more way:

Remove the assignment of project profile from investment profile in customization.

So that system won't create AUC automatically while releasing WBS element.

Now, as you said there are WBS elements of types expenditure and capital. For capital WBS elements, you can make its assignment with investment profile in WBS master data itself . It will create an AUC automatically for this WBS only.  And WBS elements for operation expenditures , you can maintain their settlement rule manually by making cost center or G/L as a receiver.   You can decide now which approach is more suitable for your business.

Regards

[Former Member]

Hi,

You can define manually receivers for each WBS elements as you needed. As Sanjeev suggested use creating asset using AS01 and assign directly to each WBS elements.

Thanks,

Sudhakar

[sanjeevc]

Hi,

Sap recommend in settlement flow as following

First cost would be settle on AUC

AUC would be settle on FXA.

in your scenario don't use IM module with PS so that when you release to wbs AUC could not create automatically and put receiver object manually as fix asset which will created by AS01 then execute settlement and cost would be settle on FXA as you desired.

Regards,

Sanjeev