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What is Acquisition and Production Costs(APC) in Assets

Dear Gurus,

Can you please explain me the concept of APC(Acquisition and Production Costs) in Assets.

Why it need to be posted periodically through programme RAPER2000.

If this programme adds costs to an already existing asset then why won't we use AUC(Asset under Construction) process.

What is the difference between APC programme RAPER2000 and Asset under Construction Process.

Please clarify me.

Regards,

sridhar.

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1 Answer

  • Posted on Apr 19, 2012 at 07:39 AM

    Hi Sridhar,

    Please use the following link to search for terms and definitions.

    http://help.sap.com/search/sap_trex.jsp

    Please read and respect forum rules. This kind of questions will not be answered in the this forum.

    Acquisition and production costs

    The upper limit for valuation of an asset in the balance sheet.

    For external acquisitions, acquisition costs include all expenses for the acquisition including incidental acquisition costs, minus reductions to the purchase price.

    Incidental costs include:

    • Freight charges
    • Forwarding costs
    • Commissions
    • Costs for building a foundation, and so on

    Reductions in purchase price can be:

    • Rebates
    • Cash discounts
    • Bonuses
    • Price reductions because of defects
    • Subsidies granted by a third party, and so on

    For in-house acquisitions, production costs include:

    • Direct and indirect costs, including materials handling overhead
    • Direct labor costs, including payroll overhead
    • Special production costs
    • Fair administrative expense (can be included)

    RAPERB2000

    Go in your system to SE38, enter RAPERB2000 and press the button Documentation and display.

    AUC

    A fixed asset that is in the process of being completed at the time the balance sheet is being produced.

    Typically, assets under construction are shown as a separate balance sheet item for the enterprise. Assets under construction can be managed for bookkeeping purposes in the FI-AA component using asset master records in special asset classes.

    To also benefit from management accounting functions that go beyond the asset accounting level, you can use capital investment measures in the Investment Management component. Investment measures can be managed in the form of internal orders or projects.

    best regards Bernhard

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    • Dear Bernhard,

      Even after your elaborated explanation, I am not in a position to understand the difference between APC and AUC Process.

      1. Through APC we increase the value of the Asset through FI Postings to that Asset.Same is the case for AUC also.Can you explain me some more detailed.

      Regards,

      Sridhar.