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Former Member

Needed configuration steps for Auc Capitalization

I need to capatilizae the Auc asset. Please send me the step by step configuration guide to solve the issue.

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    Former Member
    Posted on Sep 28, 2007 at 12:43 PM

    Hi,

    YOu can settle AUC in two ways

    1. Through internal order (KO88)

    2. Through distribution and settlement (AIAB and AIBU)

    1. Asset settlement thought internal order is general used for assets under construction. All costs are pooled in the internal order. Periodically or whenever wants the internal order is settled (within a fiscal year) i.e. the amounts in the internal order are capitalised.

    First create an internal order (KO01) , take object class as investment and give investment profile. Now system asks and creates one AUC account under asset class 4001.

    Then create settlement rule (KO02) and release the order (control data tab)

    Post some amounts (like wages or non-production material ) to internal order.

    Then come to KO88, first take the automatic settlement and run.

    The accounting entry passed is

    Asset under construction a/c Dr

    To Wages a/c

    If you want to complete the settlement to auc, then take now full settlement option and run

    The accounting entry passed is

    Asset a/c Dr

    To Asset under construction a/c

    While doing settlement in KO88, you can give any settlement period, posting period and asset date, but all should be in the same fiscal year.

    If you want to close the order go to KO02, give order number and take control data tab and click on technical complete tab on the screen and save. Internal order will be closed.

    2. If your AUC is under Asset class 4000

    This auc account is created directly becasue of direct postings to AUC account. Posting are made through F-90

    Entry for example

    AUC a/c dr

    To vendor or bank account

    Go to AIAB ---> Give distribution rule and

    go to AIBU --> Settle the asset

    Entry passed is

    Asset a/c Dr

    To AUC a/c

    The advantage of this is you can settle this AUC (4000) whenever you want.

    Radha

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