Control Functions of the Investment Profile

Use

The most important control feature from the perspective of Investment Management (IM) is the investment profile. By assigning an investment profile to an order or WBS element, you make it into an investment measure.

Features

When you create an investment measure, the investment profile controls the following:

  • Creation of an asset under construction for the investment measure

  • Creation of master data for the depreciation forecast

Asset under Construction

You make the following specifications in the investment profile:

  • Automatic creation of an accompanying asset under construction when the order or WBS element is released

  • An asset under construction, per source structure and source assignment

Using this indicator, you control whether the system creates exactly one asset under construction per investment measure, or one asset under construction per assignment in the source structure. The system then charges all of the cost elements belonging to one source assignment to the source assignment’s own individual asset under construction. When you set this indicator, you can assign each investment profile its own default asset class per source assignment (in Customizing for Investment Management , choose Define Assignment of AuC Classes per Source Assignment ).

For more information on the source structure, see Settlement Rules .

  • Asset class to be used when the accompanying asset under construction is created. Using the Fixed default class indicator, you specify whether this is a default value that can be changed or not.

  • Summary or line item settlement

This indicator controls whether the periodic settlement and full settlement of investment measures should be by line item or by totals. Line item settlement has the following advantages:

  • You can create settlement rules for individual line items (debits). When you use summary settlement, you are limited to entering blanket settlement rules for the whole measure, or for certain cost element groups.

  • – It is possible to trace the origins of each line item from the completed asset back to the original debit on the investment measure. In the case of summary settlement, an audit trail is available by cost elements only.

The advantages of line item settlement, however, are offset by reductions in performance. Therefore, you should use line item settlement only if it is really needed.

Depreciation Simulation

  • Asset class to be used to default the depreciation terms for the depreciation simulation (refer to Depreciation Simulation ). Using the Fixed default class indicator, you specify whether this is a default value that can be changed or not.

Caution Caution

You can only enter the default asset class manually if the investment measure is not released immediately after being created. When the investment measure is released immediately, the asset under construction is also created immediately (without your being able to change the asset class).

End of the caution.

  • You ensure the consistency of the depreciation terms for all distributions in an asset class by setting the Ident. valuation indicator.

  • Distribution rules for the depreciation simulation

Functions of the Investment Profile

Activities

You maintain investment profiles in Customizing for Investment Management . Choose Internal Orders as Investment Measures or Start of the navigation path Projects as Investment Measures Next navigation step Master Data Next navigation step Define Investment Profile End of the navigation path .

There are two ways of assigning an investment profile to an investment order. Either you can enter it directly in the master record of the order on the Investment tab page, or you can enter in a model order, also on the Investments tab page. The system determines the model order by the order type used when you create the order. For order types for investment measures, therefore, you should specify the following:

  • Assign a model order to the order type (Customizing for Start of the navigation path Internal Orders Next navigation step : Next navigation step Order Master Data Next navigation step Define Order Types Next navigation step ). End of the navigation path

  • Assign an investment profile to this model order (Customizing for Start of the navigation path Internal Orders Next navigation step : Next navigation step Order Master Data Next navigation step Screen Layout Next navigation step Define Model Orders, Next navigation step choose the End of the navigation path Investments tab page).

Control Elements of Order Type and Model Order

There are also two ways of assigning an investment profile to a WBS element. You can either enter it directly in the WBS element master record on the Investment tab page, or assign it by means of the project profile used when creating the WBS element.

You assign the investment profile to the project profile in the Customizing definition of the project profile (on the Controlling tab page). The system uses the investment profile specified in the project profile as a default when you create the project. The investment profile specified in the project definition is also used as a default when individual work breakdown structure (WBS) elements are created. For WBS elements that are not to be capitalized, you can manually remove the investment profile (on the Investment tab page).

You can also define orders and WBS elements as investment measures at a later date (after their initial creation). You do this by assigning an investment profile to them The system then automatically creates the accompanying asset under construction. However, this procedure is only possible if the order or WBS element has not yet been settled.

See also:

Implementation Guide (IMG) of Investment Management under Internal Orders as Investment Measures or Start of the navigation path Projects as Investment Measures Next navigation step Master Data Next navigation step Define Investment Profile. End of the navigation path