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CO Orders Budget Control by the Gross Value for Assets Acquisitions

Dear Sappers,

We're having a problem here and I will appreciate any help.

We have a PO in which we buy an asset directly for an Asset Account. For example we buy a notebook that has a net value of 10.000 and 1.700 of taxes. On the PO we inform the Asset and the Internal Order on the Account Assignment.

The Internal Order is statistic and the cost element is category 90.

The problem is occurring on the order budget control. If I have a budget of 11.70, the system understands that only 10.000 were used and that I still have 1700 for other expenses. The company in which I'm working wants to control the Budget for Investment by the Gross Value and not for the Net Value. What I understand is that the system is controlling by the net value, once the system debits 10.000 on the statistic cost element (cat 90)and 1700 on the tax cost accounting. Once CO Budget Control is control by cost element, I can't control the gross value. Does anyone Knows how can I control the expenses from PO for Assets with the Gross Value?

Many thanks in advanced

Roberta

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1 Answer

  • Sep 10, 2008 at 02:09 PM

    Hi Roberta,

    Actually, budget control in CO works on objects. How do you define your tax account? Is it B/S or P&L?

    Regards,

    Eli

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    • Hi Roberta

      Tax account being a balance sheet account, you can not create it as Cost element and hence no budget control happens on the tax amount

      Usually, if you are getting a set off on Output tax for the Input tax that you have paid - In that case, what system is doing is correct.... It happens in many countries that tax paid on Inputs can be set off against the tax payable on output

      If this is not your case, then your Tax Condition should be modified in a way (Non deductible) that the value of tax is also capitalized on the asset.. Your MM consultant would be knowing how to do this.. With this, the total asset value would be inclusive of tax and the result would be what you want

      However, if you still want to stick to your requirement - Then one wierd work around (Though I wont recommend it) is to assign your tax account in OBYC for the time being... System will allow you to create it as a statistical cost element .... Then remove the tax account from OBYC.... Your purpose would be served

      Regards

      Ajay M