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Settle AUC without internal order

Is it possible to settle AUC without Internal Order???

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    author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 04:15 AM

    Hi Vasantha,

    AUC is an object in Asset Accounting and postings to AUC would be captured online in FI also. It is not mandatory that all AUC should be assigned to internal orders. Hence, when you create an AUC, just create as if it is any other normal asset. Do not use any AUC which is created with reference to an Internal Order with Investment Management.

    Do regular postings to this AUC and settle it thru AIAB and AIBU...

    Pl let us know if you need further info in this regard.

    Regards,

    Ravi Kumar

    Edited by: Ravi Kumar on Dec 18, 2008 9:46 AM

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 04:13 AM

    Hello,

    Yes, it is possible. You can settle AUC in two ways

    1. through internal order (KO88)

    2. Through distribution and settlement (AIAB and AIBU)

    The major difference between the two is that in case of Internal Order you can establish budgets in the Internal Order which is Control the costs. But in case of direct posting to the AUC, you would not be able to control the cost.

    In the Internal Order scenario all the cost is first pooled to the Order and then settled to the Asset at regular intervals. Where as in case of the second method all the expenses are posted directly to the AUC and then it is being Distributed and settled to various Assets as required

    1. Asset settlement thought internal order is general used for assets under construction. All costs are pooled in the internal order. Periodically or whenever wants the internal order is settled (within a fiscal year) i.e. the amounts in the internal order are capitalized.

    First create an internal order (KO01), take object class as investment and give investment profile. Now system asks and creates one AUC account under asset class 4001.

    Then create settlement rule (KO02) and release the order (control data tab) Post some amounts (like wages or non-production material) to internal order. Then come to KO88, first take the automatic settlement and run.

    The accounting entry passed is

    Asset under construction a/c Dr

    To Wages a/c

    If you want to complete the settlement to auc, then take now full settlement option and run then accounting entry passed is

    Asset a/c Dr

    To Asset under construction a/c

    While doing settlement in KO88, you can give any settlement period, posting period and asset date, but all should be in the same fiscal year. If you want to close the order go to KO02, give order number and take control data tab and click on technical complete tab on the screen and save. Internal order will be closed.

    2. If your AUC is under Asset class 4000

    this auc account is created directly because of direct postings to AUC account. Posting are made through F-90 For example

    AUC a/c dr

    To vendor or bank account

    Go to AIAB ---> Give distribution rule and go to AIBU --> Settle the asset

    Entry passed is

    Asset a/c Dr

    To AUC a/c

    Thanks

    Para

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 10:48 AM

    Hi

    You can settle AUC to a Fixed Asset.

    1.Creation of Settlement profile -


    >OKO7

    select AI settlement Asset Under Construction and select details button and select copy as and change the name as you want ZXXXX.

    select to be settled in full radio button.

    you can give the Allocation Structure : A1

    Default Object type : FXA Asset

    select % settlement

    select equivalence numbers

    select amount settlement

    Under Valid receivers for Fixed Asset select settlement required.

    document type : AA and save.

    Assign this settlement profile to Company code.

    2.Maintain number ranges for settlement documents.

    IMG--


    >Controlling
    >Internal Orders

    >Actual postings

    >settlement
    --


    >Maintain number ranges for settlement documents.

    3.Creation of Capital work in progress---Asset Master -


    >AS01

    4.Posting to Capital work in progress -


    >F-90

    5.Creation of Asset Master -


    >AS01

    6.Asset Under Construction settlement -


    >AIAB-Distribute

    Here you will create a distribution rule by giving Category (FXA) , Settlement Receiver (Asset number)

    and % (100).

    This is how you do settlement.

    Regards

    Venkat

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