Linking of Asset, Equipment and Material

[former_member704259]

Dear Friends

i would like to know the relation between Asset ,Equipment and Material in the context of Refurbishment process

here our client is not maintaing any material master and eqipment master for the asset , all the material worth more that

2000 USD are treated as a asset and presently the Refurbishing is carried out outside the SAP, we want map process

to SAP.

As the Asset has its value maintained in Asset master record and it carries its value , again if we creat a material master and mantain value in inventory then it means same things is valuated twice which wrong from Balance sheet point of view.

can any body sugget how exactly the linkage will be done to aviod double valuation , impact of refurbishment cost posting on depreceation value of Asset

**Please donot explain the stnadard Refurbishment process as we are fully aware of it**

Regards

CVS

[Former Member]

CVS,

From a refurbishment point of view Asset could be the object to which the resultant dollars are settled and Material / equipment could be the object that's being worked on.

There are various ways to get around double valuation and all these depends on the accounting practice prevalent in the company.

For example, in your scenario,

1) You could retire the asset and then move it to stock, as a valuated material, refurbish and then re-capitalize the asset. ( capitalizing the same piece of object twice. Accounting may forbid this..)

2) You could continue to depreciate the asset,Do not move the Object to inventory, refurbish and then settle the resultant cost of the order to the Asset.(capitalizing the same piece of object only once)

Hope these helps..

Regards

Narasimhan

[former_member704259]

Hi Narshima

Thanks for the reply, i need little calrification on your options

Option no 1. when we retire the asset how the cost will be transred to inventory , is there any auto transfer or we have to transfer it manualy (ex'- your asset is retired and transferd to inventory as a material , while retiring the cost of Asset is 10000 USD , may be in inventory material valuation is different from this so how to post in to inventory account from asset account).

Option no 2- as per SAP standard Refurbishing process , after settlement the cost will be posted to materail , but you mentioned you post to asset , if possible how post it ti asset account instead of materail account

Regards

CVS

[Former Member]

Hi,

for point 2 , You can maitain the settlement profile with asset as settlement optional then when you go for settlement of the order you can select the asset number and can achieve the same.

Regards,

N.Nagaraju