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if we purchase one asset, how it is linked with purchase order and asset accounting?

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1 Answer

  • Oct 09, 2007 at 04:41 AM


    The below documentation will be helpful -

    The acquisition posting can be created in the department that is primarily responsible for this business transaction.

    Acquisition of an asset from a business partner => External acquisition:

    • In Asset Accounting (FI-AA) integrated with Accounts Payable (incoming invoice), but without reference to a purchase order.

    • In FI-AA with automatic offsetting entry, but without link to a purchase requisition and without integration with Accounts Payable. This posting is normally used when the invoice has not yet been received, or when the invoice was posted by the Accounts Payable department beforehand in a separate step. The offsetting account also has to be cleared.

    • In FI-AA with automatic clearing of the offsetting entry: The first posting usually is made in FIAP.

    The clearing account is cleared at the same time as the asset posting is made. It is also possible, however, for both departments to make postings in the opposite order: An asset is entered with automatic offsetting entry, and the clearing account is cleared with the credit posting of the incoming invoice.

    • In Materials Management (MM): The asset is posted in MM.

    "Acquisition from in-house production" is the capitalization of goods or services that are partially or completely produced in your own enterprise. The costs for these in-house produced goods or services (such as maintenance) have to be capitalized to assets. Generally, the capitalization of production

    costs would be done by creating an order/project in IM, and then settling this object first to an AUC and then to an asset.



    *Pls. assign points, if useful

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