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Cement Plant 'Commisioning' phase cost to AuC

Dear Experts

My client has cement manufacturing plant which is mapped to SAP. Now they are setting up another production line to increase the output quantity. This new production line will be tested for 3 months under 'commissioning period' Business want to capitalize (to AuC) the entire cost of 3 months manufacturing of the cement. During these 3 months earlier production line will work normally.

I need your expert guidance on how we can setup the system?

For better understanding, let me tell you that this new plant will below steps;

Step1: Manufacturing of Raw Mill (Inputs will be all crushed raw material, i.e. Limestone, sand, Iron Ore etc)

Step 2: Confirmation of Raw Mill (Semi Finished Goods) for manufacture of Clinker (SF Good) and so on.

Business does not want their P/L to be effected for any of the consumption neither they want COGM to used.

Please help.


Syed Zia Abbas

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