Statistical Budget Monitoring for Direct Capitalization 

Use

Capital investments that do not have an ‘asset under construction’ phase are usually capitalized directly in Asset Accounting. However, you may want to manage cost accounting information at the same time. For instance, you may want to manage plan values, budgets and commitments in order to carry out target/actual comparisons. Therefore, the Asset Accounting (FI-AA) component makes it possible to post asset transactions directly to assets, while it posts the transactions automatically as statistics to an internal order or a WBS (work breakdown structure) element.

Features

You enter a CO order or a WBS element as an account assignment for capital investments. You make this entry in the asset master record under origin data (not time-dependent data). The system then makes an automatic, statistical posting to this order or WBS element at the time of the asset transaction. You can also enter such an additional account assignment directly during the posting transaction.

You specify in the control data of the order or WBS element that it is for statistical posting (statistical indicator). Then the system does not allow the order/WBS element to be settled.


Account Assignment to Statistical Order or WBS Element

Commitments

The system automatically creates a statistical commitment on the accompanying order or WBS element when you enter purchase orders for to an asset. This commitment is automatically cleared when you post the goods receipt or invoice receipt.

Internal Activity Allocation

If you want to post internal activity allocation to a statistical order or WBS element, do not set the "statistical" indicator. Otherwise, you cannot settle these ‘real’ debits to cost centers or the accompanying asset under construction later.

The system settles the statistical debits from the asset under construction to the order or WBS element using a special statistical value type. The use of this value type ensures that these values are not settled again.

Availability Control

For more information, see Blanket Asset Budgets.

Depreciation Simulation

You can include statistical orders and WBS elements in depreciation forecasts in Asset Accounting (for more information, see IM Information System ). There are a few prerequisites for this. The statistical orders or WBS elements have to have:

· An investment profile in their master records (WBS elements: on the Control tab page, and orders: on the Investments tab page. The investment profile has to be defined so that

– It does not create an asset under construction (IM Customizing: Master Data ® Define Investment Profiles - Do not set the Manage AuC indicator).

– It contains an asset class for depreciation simulation.

· Depreciation simulation data and a planned start-up date in their master records (under Extras).

Direct Capitalization for Investment Measures

As another option, in addition to using statistical orders or WBS elements for direct capitalization of assets, you can also make statistical postings to actual investment measures that have accompanying assets under construction. This type of statistical posting might be necessary when you acquire an asset for a larger project. For example, you are building a production line, and purchase a drill for construction.

You earmark the direct capitalization amount using the "statistical" value type (cost element category 90). The system then recognizes this amount as a statistical value during the periodic settlement in the IM component. As a result, the system ignores this value during the settlement to the accompanying asset under construction (there is no duplication of the clearing).

Direct Capitalization for Investment Measures

Prerequisites

The conditions below are necessary for automatic statistical updating of orders or WBS elements:

· The CO object (order or WBS element) has to be entered in the asset master record as investment account assignment ( not as a maintenance order or cost order in the time-dependent data).

· The indicator for statistical updating of the order/WBS element has to be set in the definition of the transaction types used for asset transactions ( Relevant to budget indicator). This indicator is already set appropriately in the standard transaction types.

· The asset control accounts for the APC of the assets have to be entered in the CO component as cost elements (cost element type 90).

· The Internal order or WBS element field has to be set as an optional entry field in the field status variant of the company code/control account for the APC of the asset.

You can make these system settings in Customizing for Investment Management (Investment Orders ® Planning and Budgeting or Investment Projects ® Planning and Budgeting)

You control whether or not there is budget monitoring in orders or WBS elements using an indicator in the budget profile. You then enter this budget profile in the model order or the project profile. You also need to define corresponding tolerance limits. For more information, see the Implementation Guide for the component Overhead Orders (CO-OM-OPA) or Project System (PS).

When you have down payments or settlement from an order or WBS element to an asset, it is not possible to have automatic, statistical posting from the asset to a statistical order or WBS element. The reason is that down payment and settlement apply to assets under construction. Budget monitoring for assets under construction is handled in the Investment Measures component of the Investment Management (IM) component.