Recommendations in Capital-Investment Projects 

In addition to the aspects decribed in Recommendations for Overhead Cost Projects , you must consider the following for capital investment projects:

In direct settlement, the settlement senders must, for verification reasons, exist for as long as the asset is under construction. This can delay project reorganization for several years.

However, in multilevel settlement, earlier reorganization of orders is possible after they are settled completely.

When you settle to assets, the system generates both CO settlement documents and FI postings. There are a lot more of these postings in direct settlement than in multilevel settlement.

The fewer objects in the project, the better the performance of the project functions. If your project has a long runtime, you should reorganize the orders at regular intervals.

In capital-investment projects, multilevel settlement is preferable to direct settlement.

A basic rule to follow is that you first settle all the costs to the WBS elements which are flagged for the capital-investment measure. You can then use these WBS elements as the base for capitalization in the asset under construction, and for settling components which cannot be capitalized to receivers outside the project.

For more information on settling capital investment projects, read CO - Capital Investment Management .

In the case of WBS elements flagged as capital investment measures, you must carry out separate settlement runs for costs which can be capitalized and costs which cannot. To this end, conduct settlement periodically and by cost element.

You must settle the costs of orders assigned to projects which are capital investment measures directly to the final receivers.