WBS with RA key - settlement to asset

[Former Member]

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

[Former Member · Accepted solution]

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

[Former Member · Accepted solution]

Hi Vittal,

my problemi is that if I run CJ88 for WBS, the system settles only to WIP and not to WBS element... It seems like the systems doesn't see the settlement rule if I use RA key..

Please, could you help me?

Thanks

Regards

[sammar81 · Accepted solution]

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

[kenmelching · Accepted solution]

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.

[Former Member · Accepted solution]

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

[kenmelching]

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.

[sanjeevc]

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

[Former Member]

Hi Sanjeev,

I guess he wants to know the usage of Asset process for project stock usage costs

Since I think they might be already using a separate ETO scenario for this

Regards

Vittal