Debits on Investment Measures 

Purpose

The actual costs on investment measures (WBS elements or internal orders) consist of

Process Flow

When you post acquisitions, the account assignment object is the order or WBS element belonging to the investment measure. You cannot post directly to the asset under construction that belongs to the investment measure.

 

Posting during the Under-Construction Phase

From the point of view of management accounting, an acquisition that is posted to an investment measure goes through the following phases:

  1. The acquisition (for example, goods withdrawal from the warehouse) is first posted fully to the order or WBS element and identified as a primary cost element in cost element accounting in the Controlling (CO) component.
  2. During the periodic settlement, the costs are divided into amounts requiring capitalization and those not requiring capitalization (refer to Settlement of Investment Measures ).
  3. The periodic settlement credits the order or WBS element and transfers the amounts requiring capitalization from costs (expense) to assets (completed asset or asset under construction). The amounts requiring capitalization are displayed only temporarily in cost accounting as primary costs, until a period closing is carried out (refer to Basic Information for Settlement of Investment Measures). The costs that do not require capitalization can be settled to CO receivers (such as cost centers).
  4. The amounts that required capitalization are not actually displayed in cost accounting until depreciation is posted on the capitalized asset during its useful life in the Asset Accounting (FI-AA) component.

When an acquisition to an investment measure is not a cost element, but instead is a posting to assets (such as an asset acquisition), you have to post it with a cost element nonetheless. You post it with a cost element to the order or WBS element (to the expense account for costs that have to be capitalized). This account is credited during the periodic settlement, so that it afterwards has a balance of zero. You might need to create the expense account for costs requiring capitalization.