Purpose
The primary business process in asset accounting is the purchase of assets and/or the capitalization of in-house produced goods or services. The Asset Accounting component supports various methods of handling this business process.
Assets under Construction
Assets under construction are acquisitions to fixed assets that are not permitted to be capitalized and depreciated immediately. The options below apply to direct capitalization:
Direct Capitalization
Direct capitalization refers to asset acquisitions that do not have an asset under construction phase. Instead, they are capitalized and begin depreciation immediately. The options below apply to direct capitalization:
Budget Monitoring Using Statistical Orders or WBS Elements
For Controlling purposes, it is often necessary to monitor spending on assets for the budget. Therefore, the system offers the option of automatic statistical updating to an order or WBS element. For more information, see
Budget Monitoring Using Statistical Orders or WBS Elements.