Conversion of Inventory to Asset to Inventory

[former_member461999]

Hi SAP ByD Experts,

I have one scenario that received from client during the requirement gathering and is as follows

"Client records inventory in the SAP system through PO, later he will convert into asset. after holding it for few months again he will convert that asset into inventory an will do the sale".

could any one can guide me on this as this is high priority requirement.

Thanks in advance,

Regards,

PJP Reddy.

[HarshalVakil]

Hello,

I am not exactly clear on the requirement and would need few more details from you.

1) Via the purchase order, Material is purchased and recorded in the inventory as in it will be stored in the warehouse and valuated?

In general, you create the fixed asset with the reference to an individual material. however this individual material can not be seen in the inventory valuation work center -> Materials view. All the postings for the fixed asset will have reference of the individual Material and recorded against the fixed asset ledger.

2) If the material will be converted to asset later: is there any specific need to have it recorded in the inventory via the PO first and then record it as asset in the fixed asset ledger?

Regarding conversion of the asset to inventory : you do not need this explicit conversion as in the sales order you can directly enter the individual material as item and that will sale the asset. so conversion is not needed here.

I hope this will help.

Regards,

Harshal

[former_member461999]

Hi Harshal,

Actually, client purchases goods (Samples) from HO and convert the same as Fixed assets by capitalizing all the expenses. once he gets demand from customers, he will convert the assets into inventory and do the sale.

Regards,

PJP Reddy.