on 08-04-2015 11:26 AM
Hi guru,
my customer has the following issue.
He uses WBS for manage prototype, so until the end of project, all costs related to project stocks are suspended in WIP.
At the end of project, the prototype needs to become an asset, so he want to settle costs to asset
Is it possible to have this procedure?
Thanks
Regards
Hello Raffaele,
You can always use the prototype as level 3 WBS and level 1 WBS linked to an investment profile to create an asset
the level 3 WBS will calculate WIP and settle to another WBS
or even can configure your settlement profile to allow settlement to Assets (technically feasible)
But the prototype will be used internally?
Asset value diminishes and you will have to sell the asset at a lower rate than stock it and sell
Regards
Vittal
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Hi Raffaele,
Does your settlement profile allows settlement to Fixed assets? Is the status of the WBS in TECO?
what's the setting for RA calculation and reversal thereof ??
Please check..
And As mentioned by Ken, it is better to use WBS-AUC_Asset route.. then WBS to RA for WIP to Asset..
Regards
Sammar
What you mention is exactly how Results Analysis works. Results Analysis calculates what values can stay on the P&L and what needs to be moved to the Balance Sheet. When you settle the RA results it makes 2 postings, 1. A transfer to FI that is pure FI and no CO (that's the movement between the P&L and the Balance Sheet) and 2. a CO settlement posting of what was left on the P&L. In your case you are moving everything to WIP so nothing is left on the P&L so there is nothing to settle.
From the business process you have described you do not need RA, you only need standard settlement to an AuC.
Hello Raffaele,
if you already have such Projects with costs then you Need to define and add the asset process instead of your typical RA Approach in the existing projects
In case you are seeking new Projects, then as mentioned by Sammar and Ken, do not use RA at all
You can directly use the Investment process using AUC
Thats standard
Regards
Vittal
The standard SAP solution to this problem is to use the Asset Under Construction as the receiver during the prototype phase and transfer the AuC to a Fixed Asset upon completion.
It is the same accounting treatment as both WIP and AuC are Balance Sheet assets.
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Hello,
why you are using RA for investment project?
RA is the tool which measures the WIP data whether RA key is prerequisite. basically want to say use in customer project where revenue be recognize based on payment receive from customer. or what parameter we have configured based on that.
This kind of cost should go on PSG. if RA is using in your project.
Regards,
Sanjeev
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