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Staitstical Internal Order in Asset

former_member218048
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We have capex process through Internal Order budgeting.

I have created a Statistical Internal order for the purpose and entered the budget for the order. This Internal order is assigned in the Asset master also.

When I run the depreciation it is posted to a cost centre (real account assignment as the IO is Statistical). My doubt is whether the depreciation posted on the asset would reduce the budget amount entered in the Statistical internal order for this asset ?

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Answers (2)

former_member218048
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thanks for the inputs

iklovski
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Hi,

Yes, it's supposed to reduce (if the cost element is not extempt from AVC control).

Regards,

Eli

former_member218048
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Thanks Eli.

But after I executed the depreciation, it was found that the available Budget for the Internal order was not reduced.

iklovski
Active Contributor
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Hi,

Please, check if depreciation was posted on I/O, and not only on cost centre. Functionally, I'm not sure that deducting depreciation from the budget is justified. If you acquire an asset you already consume the budget; then, with depreciation, you will consume it once more - does not make sense.

Regards,

Eli

former_member218048
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Hi Eli

Depreciation was posted to the asset with cost centre. But I could not find the statistical internal order in the posting and the budget of the internal order was also not affected.

sreenivas_reddy
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Hi,

If Depreciation is not posted to I/O then there wont be change in your budget.

thanks

former_member218048
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But I am wondering why depreciation was not posted to this Statistical Internal order eventhough account assignment category is done to Internal order.

iklovski
Active Contributor
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Hi,

Please, check if the field status of the account allows I/O posting. Also, check account assignment elemnts (ACSET) for assets.

Regards,

Eli

P.S. Also, tell what is the category of the depreciation cost element. Is it primar cost element (normally, it should be, but in some cases it could be other)?

former_member218048
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Field status allows CO/PP Order for the GL Posting. Also 'internal order' is set for account assignment for depreciation posting. Depreciation cost element is primary only. Internal order is assigned in the "Account assignment for investment' section and in the field 'investment order'.

former_member218048
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I feel that in ACSET we have given Internal Order (CAUFN field name) where as Investment Order is EAUFN. In the asset master, the internal order is put in the Investment Order field (EAUFN). May be that is why the depreciation is not posted to the internal order. If we include EAUFN-Investment Order in ACSET, I think depreciation would post to that also. Am I thinking correct ?

iklovski
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Yes, I believe so.

ajaycwa1981
Active Contributor
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Hi Niki

It goes like this... The dep posted for an asset must not be posted to Stat IO used for budgeting purpose...

Asset master offers 2 fields - Internal Order and Investment Order... The Stat IO must be assigned in the field Investment Order (Origin Tab).. Relevant Field EAUFN in ACSET, and not CAUFN and do not choose Dep postings for EAUFN in ACSET

@ Eli: No need to exclude the dep cost element from AVC.. With above settings, it works

br, Ajay M