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Investment Management

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Former Member

‎11-15-2006 3:56 PM

0 Kudos

can anyone explain the role of Investment Management.

Thanks in advance

1 ACCEPTED SOLUTION

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Former Member

‎11-16-2006 8:32 AM

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hi nagini how r u, this is srikanth. r u remamber me. i gave some material in last queri. this is my personal id:srikanthmu@intelligroup.com

Purpose

Asset investments that do not have an asset under construction (AuC) phase are usually capitalized directly in Asset Accounting. You might, however, want to manage cost accounting information at the same time. For instance, you might want to manage planned values, budgets, and commitments in order to make target/actual comparisons. For this reason, the SAP FI-AA Asset Accounting system allows you to post asset transactions both directly to the asset and as statistics to an internal order at the same time. This is made possible by the Direct Capitalization component. Direct capitalization refers to asset acquisitions that do not have an ‘under construction’ phase. Instead, they are capitalized and depreciated immediately.

Prerequisites

The conditions below are necessary for automatic statistical posting to orders:

• The CO internal order must be entered in the asset master record as an investment account assignment (not as a maintenance order or cost order in the time-dependent data).

• The indicator for statistically updating the order has to be set in the definition of the transaction types used for asset transactions (Relevant to Budget indicator). This indicator is already set appropriately in the standard transaction types.

• The asset balance sheet accounts for the acquisition and production costs (APC) of the assets have to be entered in the FI-CO component as cost elements (cost element category 90).

• The Internal Order field has to be set as an optional entry field in the field status variant of the company code/asset balance sheet account for the APC of the asset.

The above prerequisites have been met in the system.

Each CO internal order is assigned uniquely to a controlling area. At least one company code is assigned to each controlling area. The following controlling areas are defined in the system:

Controlling Area Company Code

BP01 BP01 (Chart of accounts INT)

You can use report RACKAR00 in Customizing to create all of the fixed asset balance sheet accounts in depreciation area 01 as statistical cost elements.

R/3 Customizing Implementation Guide

Creating Statistical Cost Elements:

Menu Path Financial Accounting  Asset Accounting  Transactions  Budget Monitoring with Statistical Orders/WBS Elements  Create Statistical Cost Elements  Create Cost Elements for Project/Order Account Assignment

Transaction Code OAK7

Report RACKAR00

Once you have executed the function in update mode, the balance sheet asset accounts are created as statistical cost elements with cost element category 90 = ‘Statistical balance sheet account’.

Process Flow

In the first step, you create a CO internal order. You can plan and/or budget this order. Next, you create an asset master record in the appropriate asset class. The CO internal order you created is stored in the asset master record. You post the acquisition directly to the asset master record. During this process, the internal order is updated statistically. This enables you to then make a plan (or budget)/actual comparison at internal order level.

Creating a CO Internal Order

Use

Planned or budget values are estimated for the asset acquisitions. CO internal orders are created, planned, and budgeted in order to monitor these values.

Prerequisites

Order type STAT exists in the system for the internal orders that are used in direct capitalization. The orders are marked ‘statistical’.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Investment Management  Internal Orders  Master Data  Order Manager; Master Data  Create

Transaction code KO04

2. Enter data on the screens as required.

Field Name Description R/O/C User Action and Values Comment

Order Type R STAT Statistical orders

R Enter Takes you to the next screen

Order Number of the order to be created R Assign a number that is still free within the interval of 600000 to 699999.

Short Text R Enter a text of your choice

Company Code R BP01

Profit Center O 9999 Dummy Profit Center

3. Save the order and choose F3 to exit the screen.

Result

The internal order has been created with the order number you assigned.

Planning the Internal Order

Use

You can record planned values for investments that can be compared with the posted actual values after acquisition. This enables you to maintain planned values for individual years as well as for an overall value.

Prerequisites

A planning profile is assigned to the order type used.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Investment Management  Internal Orders  Planning  Overall Values  Change

Transaction code KO12

2. Enter data on the screens as required.

Field Name Description R/O/C User Action and Values Comment

Order R No. of the order you created

Version R 0

R Choose Enter or Overall Planning Takes you to the next screen

Overall O Total of annual plan values

Total for Annual Values O Enter a planned value for the current fiscal year.

3. Save your entries.

Result

The planning process is complete when you save your entries.

Budgeting the Internal Order

Use

You can record both planned and budget values for investments, which can be compared with the posted actual values after acquisition. This enables you to maintain budget values for individual years as well as for an overall value. In contrast to the planned values (required funds), the budget values are the actual approved funds.

Prerequisites

A budget profile is assigned to the order type used.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Investment Management  Internal Orders  Budgeting  Original Budget  Change

Transaction code KO22

2. Enter data on the screens as required.

Field Name Description R/O/C User Action and Values Comment

Order R No. of the order you created

R Choose Enter or Original Budget Takes you to the next screen

Overall O Total of annual plan values

Total for Annual Values O Enter a planned value for the current fiscal year.

3. Save your entries.

Result

The budgeting process is complete when you save your entries.

Creating an Asset Master Record

Use

You have to create an asset master record for the complex fixed asset that is to be capitalized. The acquisition is then posted to the asset master record in a subsequent step.

Prerequisites

In the asset master record, you have to be able to define the investment order in the Account assignment for investment field group.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Financial Accounting  Fixed Assets  Asset  Create  Asset

Transaction code AS01

2. Enter the required data.

Field Name Description R/O/C User Action and Values Comment

Asset Class R 50000 Machinery

Company Code R BP01 BP SMB SG

Number of Similar Assets R 1

R Choose Enter or Master Data Several tab pages are displayed on which you can enter master data.

Asset R The system will internally assign the asset number. To change to manual number assignment, use transaction AS08.

Description R Any

Other fields O Not mandatory

3. Choose the Time-dependent tab page.

Field Name Description R/O/C User Action and Values Comment

Cost Center R 1201

Other fields O Not mandatory

4. Choose the In Origin tab page.

Field Name Description R/O/C User Action and Values Comment

Investment Order R Number of the internal order you created

Other fields O Not mandatory

5. Choose the Depr. Areas tab page.

Field Name Description R/O/C User Action and Values Comment

Usfl Life Area 01

Area 15 R Use default values. Change if required.

Other fields O Not mandatory

6. Save your entries.

5 REPLIES 5

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Former Member

‎11-15-2006 3:56 PM

0 Kudos

Tables and Transactions used will be lot helpful

Go to solution
Former Member

‎11-16-2006 8:32 AM

0 Kudos

hi nagini how r u, this is srikanth. r u remamber me. i gave some material in last queri. this is my personal id:srikanthmu@intelligroup.com

Purpose

Asset investments that do not have an asset under construction (AuC) phase are usually capitalized directly in Asset Accounting. You might, however, want to manage cost accounting information at the same time. For instance, you might want to manage planned values, budgets, and commitments in order to make target/actual comparisons. For this reason, the SAP FI-AA Asset Accounting system allows you to post asset transactions both directly to the asset and as statistics to an internal order at the same time. This is made possible by the Direct Capitalization component. Direct capitalization refers to asset acquisitions that do not have an ‘under construction’ phase. Instead, they are capitalized and depreciated immediately.

Prerequisites

The conditions below are necessary for automatic statistical posting to orders:

• The CO internal order must be entered in the asset master record as an investment account assignment (not as a maintenance order or cost order in the time-dependent data).

• The indicator for statistically updating the order has to be set in the definition of the transaction types used for asset transactions (Relevant to Budget indicator). This indicator is already set appropriately in the standard transaction types.

• The asset balance sheet accounts for the acquisition and production costs (APC) of the assets have to be entered in the FI-CO component as cost elements (cost element category 90).

• The Internal Order field has to be set as an optional entry field in the field status variant of the company code/asset balance sheet account for the APC of the asset.

The above prerequisites have been met in the system.

Each CO internal order is assigned uniquely to a controlling area. At least one company code is assigned to each controlling area. The following controlling areas are defined in the system:

Controlling Area Company Code

BP01 BP01 (Chart of accounts INT)

You can use report RACKAR00 in Customizing to create all of the fixed asset balance sheet accounts in depreciation area 01 as statistical cost elements.

R/3 Customizing Implementation Guide

Creating Statistical Cost Elements:

Menu Path Financial Accounting  Asset Accounting  Transactions  Budget Monitoring with Statistical Orders/WBS Elements  Create Statistical Cost Elements  Create Cost Elements for Project/Order Account Assignment

Transaction Code OAK7

Report RACKAR00

Once you have executed the function in update mode, the balance sheet asset accounts are created as statistical cost elements with cost element category 90 = ‘Statistical balance sheet account’.

Process Flow

In the first step, you create a CO internal order. You can plan and/or budget this order. Next, you create an asset master record in the appropriate asset class. The CO internal order you created is stored in the asset master record. You post the acquisition directly to the asset master record. During this process, the internal order is updated statistically. This enables you to then make a plan (or budget)/actual comparison at internal order level.

Creating a CO Internal Order

Use

Planned or budget values are estimated for the asset acquisitions. CO internal orders are created, planned, and budgeted in order to monitor these values.

Prerequisites

Order type STAT exists in the system for the internal orders that are used in direct capitalization. The orders are marked ‘statistical’.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Investment Management  Internal Orders  Master Data  Order Manager; Master Data  Create

Transaction code KO04

2. Enter data on the screens as required.

Field Name Description R/O/C User Action and Values Comment

Order Type R STAT Statistical orders

R Enter Takes you to the next screen

Order Number of the order to be created R Assign a number that is still free within the interval of 600000 to 699999.

Short Text R Enter a text of your choice

Company Code R BP01

Profit Center O 9999 Dummy Profit Center

3. Save the order and choose F3 to exit the screen.

Result

The internal order has been created with the order number you assigned.

Planning the Internal Order

Use

You can record planned values for investments that can be compared with the posted actual values after acquisition. This enables you to maintain planned values for individual years as well as for an overall value.

Prerequisites

A planning profile is assigned to the order type used.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Investment Management  Internal Orders  Planning  Overall Values  Change

Transaction code KO12

2. Enter data on the screens as required.

Field Name Description R/O/C User Action and Values Comment

Order R No. of the order you created

Version R 0

R Choose Enter or Overall Planning Takes you to the next screen

Overall O Total of annual plan values

Total for Annual Values O Enter a planned value for the current fiscal year.

3. Save your entries.

Result

The planning process is complete when you save your entries.

Budgeting the Internal Order

Use

You can record both planned and budget values for investments, which can be compared with the posted actual values after acquisition. This enables you to maintain budget values for individual years as well as for an overall value. In contrast to the planned values (required funds), the budget values are the actual approved funds.

Prerequisites

A budget profile is assigned to the order type used.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Investment Management  Internal Orders  Budgeting  Original Budget  Change

Transaction code KO22

2. Enter data on the screens as required.

Field Name Description R/O/C User Action and Values Comment

Order R No. of the order you created

R Choose Enter or Original Budget Takes you to the next screen

Overall O Total of annual plan values

Total for Annual Values O Enter a planned value for the current fiscal year.

3. Save your entries.

Result

The budgeting process is complete when you save your entries.

Creating an Asset Master Record

Use

You have to create an asset master record for the complex fixed asset that is to be capitalized. The acquisition is then posted to the asset master record in a subsequent step.

Prerequisites

In the asset master record, you have to be able to define the investment order in the Account assignment for investment field group.

Procedure

1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu Accounting  Financial Accounting  Fixed Assets  Asset  Create  Asset

Transaction code AS01

2. Enter the required data.

Field Name Description R/O/C User Action and Values Comment

Asset Class R 50000 Machinery

Company Code R BP01 BP SMB SG

Number of Similar Assets R 1

R Choose Enter or Master Data Several tab pages are displayed on which you can enter master data.

Asset R The system will internally assign the asset number. To change to manual number assignment, use transaction AS08.

Description R Any

Other fields O Not mandatory

3. Choose the Time-dependent tab page.

Field Name Description R/O/C User Action and Values Comment

Cost Center R 1201

Other fields O Not mandatory

4. Choose the In Origin tab page.

Field Name Description R/O/C User Action and Values Comment

Investment Order R Number of the internal order you created

Other fields O Not mandatory

5. Choose the Depr. Areas tab page.

Field Name Description R/O/C User Action and Values Comment

Usfl Life Area 01

Area 15 R Use default values. Change if required.

Other fields O Not mandatory

6. Save your entries.

Go to solution
Former Member

‎11-16-2006 3:42 PM

0 Kudos

Thanks srikant yes I do remember you.

Thanks to everyone.