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Assets Under construction

Hi Gurus,

What is the difference between AUC with line itwm and without line item

WIll u please explain wit an example

Regards

Ravi

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2008 at 08:30 AM

    In with line item settlement, u can choose how & where u want to settle the individual line items existing in an AUC

    Thanks and Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2008 at 08:30 AM

    Hi Ravi

    AUC without line item will receive the summary of the items and AUC with line item you can distribute the amounts by % basis to your assets.

    Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2008 at 08:31 AM

    hi,

    Assets under Construction

    Use

    Assets under construction are a special form of tangible assets. They are usually displayed as a separate balance sheet item and therefore need a separate account determination in their asset classes.

    Features

    You can manage assets under construction in the system as individual master records, just as you do completed assets.

    You can also use collective management of several assets under construction on one master record. You can distribute to the proper assets when the asset under construction is completed by using either

    u2022 Line item settlement (see below) or

    u2022 Simple transfer to other asset master records

    However, if you use collective management, without line item management, there is one limitation. You can only post asset retirements (transfers) with asset value dates that follow in sequential order.

    Due to the above restriction, it is not recommended that you manage a large number (or all) assets under construction on one master record. Instead, you should use a general ledger clearing account to temporarily collect acquisitions for assets under construction.

    Depreciation

    Ordinary depreciation is not allowed for assets under construction in most countries. You reflect this limitation by choosing a depreciation key that does not allow ordinary depreciation in the book depreciation area. To ensure that this depreciation key is protected during master data maintenance, select the asset class as the maintenance level for the book depreciation area (see Screen Layout and Maintenance Level [Page 214]).For certain assets under construction, special tax depreciation is allowed. In this case you also enter corresponding keys in the asset class, to be used as mandatory default values.

    Down Payments

    For posting down payments, allow the posting of the transaction type group "Down payments" (transaction type groups 15 and 16) in these asset classes. In addition, enter the necessary general ledger account in the account allocation. Also set the indicator for negative APC in the depreciation areas of the assets under construction. This allows subsequent credit memos on already capitalized assets.

    Line Item Management

    If you make large capital investments in your own in-house produced assets, you can manage assets under construction with open items, and settle the assets under construction per line item to different receivers. The system activates this line item management when you create the asset, if the indicator for it is set in the asset class to which the asset belongs. This indicator also determines that the transaction type for down payments is automatically allowed in these.

    Pls read this topic.

    rohit

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