Capitalization of Services on Asset

[Former Member]

Dear Experts,

We are capitalizing AUC to Final asset through AIAB & AIBU without using internal order. We also capitalize other expenses by adding AUC asset no. in direct expense postings and follow the aforesaid procedure. We are not using PS module. Now our requirement is to capitalize services on assets. We procure services using service master in service PO. We have to settle these expenses pertaining to services to final asset. Please let me know how can we achieve this. Someone please shade light on this.

Regards,

Aniruddha Mahalle

[Former Member · Accepted solution]

Hi Aniruddha,

Give the internal order in PO account assignment. Let the expenditure be booked in internal order then when you settle the order it will be booked to asset.

Hope it is clear.

Regards,

GSR

[Former Member · Accepted solution]

Hello Mukhtar / Sethuraman,

Thanx for your reply. Could you please let me know whether i can use internal order in PO for services or i have to book expenses on this internal order in direct fi postings FB01/FB50 for booking expenses.

Reards,

Aniruddha Mahalle.

[Former Member · Accepted solution]

Hi Aniruddha,

If you want to maintain WIP for the asset until it's commissioning, giving IO in PO is the only solution.

If the asset is already capitalised or going to be capitalised immediately with the service portion then both method will work.

Hope it is clear.

Regards,
GSR

[Former Member · Accepted solution]

Hi Sethuraman,

Thnx for your reply. We are using PO for services with service master code in it. Is it possible to use internal order in the same PO. If we adopt this, do we need to assign this internal order in CWIP asset master. After settlement of these costs on Final asset, will it be possible to track the services which have been settled...Please help me on this..

Regards,

Aniruddha Mahalle

[Former Member · Accepted solution]

Hi Aniruddha,

You can use IO for service PO also.

Just assign the asset number in IO settlement rule.

Hope it is clear.

Regards,
GSR

[former_member198650]

Hi Aniruddha,

You can directly book the expenses to final asset by AB01/ABSO/FB01 using TTY-100. The entry will be:

Asset A/c Dr

Expenses A/c Cr

Regards,

Mukthar