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Former Member

Difference between AUC and final asset

Dear all,

Please help me understanding the difference between AUC and final asset,

why AUC's are created,And what is the use of creating them?

Can't we directly settle the cost on final assets?



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3 Answers

  • Best Answer
    Oct 10, 2007 at 06:50 AM

    AUC is a construct like an order or cost-collector

    main difference that normally there's no depreciatrition posted on AUC's

    for more info look here:


    Message was edited by:

    Andreas Mann

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    Former Member
    Oct 11, 2007 at 11:23 AM


    AUC means Asset under construction... for example if you are constructing an office building... all the expenses you incurred for consturcting the building are first entered in AUC account. After completion of the construction the amount in the AUC is transferred to the buildings account i.e. called as capitalisation of asset. After the capitalisation it becomes final asset.

    This is done for information purpose. Suppose your construction is not completed at the time of preparation of financial statements, you have to show the AUC as an asset (i.e. it is also asset but under construction). No depreciation is charged on AUC

    Final asset means the completed asset. Depreication is charged on final asset from the capitalisation date.

    There are two asset classes for AUC one is 4000 and other one is 4001. You can use 4000 asset class for line item settlement and 4001 for settlement through internal order.

    If you create AUC under 4000 you can settle to final assets directly using Tcodes AIAB and AIBU


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    Former Member
    Oct 24, 2007 at 06:23 AM

    Dear Anu

    U can settle the actual costs directly to Final Asset, but the AUC procedure is basically used in large scale projects Ex: if u buying a computer then u can directly settle it to a final asset, but if ur designing a new computer and u know it takes a time frame to complete the same then u book all the costs in the AUC and settle the actualls periodically. When u are complete in creation of the final computer, the total costs settled in the AUC shall be finally settled to the final asset.

    From Asset accounting perspective AUC is required if u dont want to depriciate the asset which is not existing fully. For more details check the following link

    Reward points if useful



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