Need to expense part of costs already settle to AUC

[Former Member]

My client created an Internal Order. All primary costs have been settled to an AUC in previous periods. Now the Cost Center Manager wants to move a portion of those costs to a G/L expense account rather than capitalize all the costs to a final asset.

Can this be done through a settlement FROM the AUC TO a Cost Center G/L Expense account or does it have to be done by a JE Crediting the order and Debiting the Expense Account? Thank you for any help. Points awarded for the answer.

[Former Member · Accepted solution]

Hello ,

You have already settled an order to AUC. So the cost on the order is zero. As you rightly mentioned, you have to settle the partial(desired) cost to GL account by means of AUC settlement.You dont need to create a journal entry for this..Bcause with this your order will carry some cost & you have to settle it agian to some settlement reciever.

Thanks

[Former Member · Accepted solution]

Thank you for your response. I had researched some notes on this and it appears that the "correction" can only be made in a Full settlement once the order is marked "technically complete". Is that your understanding or can it be done before that? There is still some money to be spent on this order but they want to charge the G/L account right away. Can it be done before the order is complete? If so, what is the process? Thanks again.

[Former Member · Accepted solution]

Hello ,

You can perform the settlement even before you Techically close the order. System does not stop you doing this & this is a real time scenario..we need to do settlement of orders even before they are techically completed. The cost posted to order after technical completion get settled to respective reciever in second settlement run.

Regarding the cost posting to GL account before it is accumulated in order, I guess it is not possible..You sign out the parts & time to order( though it is completed) & then settle the order with desired GL account as settlement reciever.

Its not necessary that you can change the settlement rule only after order is closed, you can change it any moment before the order id business closed.

You can settle the partial amount in the order to 2 separate settlement recivers e.g cost center & Gl account by ditributing the actual cost or by meas of percentage in the settlement rule sreated for order.

Let me know if you something more.

Thanks

[Former Member]

Hi,

You should be able to settle from AUC to both an asset and cost center/GL. In your settlement rule for FUL, specify the proportion between the asset and cost center and run the settlement run for type Full settlement. The AUC will distribute as per the rule you specified.

Ofcourse, you can always go with your second option of crediting the order. The choice lies with the client.

Thanks

Jagdish