Direct Capitalization  

Purpose

You use this scenario, in addition to the scenarios for complex and simple capital investment measures, to budget for fixed assets that have been directly capitalized (without an under construction phase).

You manage the budget using statistical orders or work breakdown structure (WBS) elements, which are assigned to the capitalized assets. When you post values for a purchase order or asset acquisition, they are automatically posted to the assigned statistical order or WBS element in parallel. This enables you to compare the budget for the order or WBS element with actual values and commitments for its assigned assets, and to carry out availability control.

This scenario includes the allocation of blanket investment budgets to statistical orders or WBS elements, the acquisition of assets, and the monitoring of budgets.

Prerequisites

You use the basic functions of the CO component.

Process Flow

  1. You create a statistical order and allocate it a blanket budget for fixed asset investments.
  2. You acquire assets, thereby reducing the remaining budget amount.
  3. You analyze the actual values and commitments in relationship to the budget.
  4. You check the availability of budget resources and update the budget if necessary.

Result

You are able to manage blanket asset investment budgets.