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Use

The R/3 Investment Management (IM ) component provides functions for management of large-scale capital investments with a management accounting focus (see Structure linkInvestment Management ). The IM component offers parallel management of both cost accounting and asset accounting perspectives of capital investments. You manage the investments in the form of overhead cost orders or WBS (work breakdown structure) elements and an accompanying asset under construction. The orders or projects are the primary account assignment objects, and must be settled periodically to Asset Accounting. This kind of order or WBS element with its accompanying asset under construction is called an "investment measure."

When you use investment measures, all debits charged to the investment measure appear, at least temporarily, in cost accounting and in the profit and loss statement. This applies even if the debits actually will be capitalized to assets. The debits that require capitalization are cleared during the periodic settlement and charged to the asset under construction. In this way, the system enables you to manage both debits that will be capitalized and debits that will not be capitalized on one investment measure.

The investment measure thereby has all of the functions of the asset under construction (such as, special depreciation, investment support measures). In addition, it has functions that are not available for assets under construction by themselves:

Capital investments that do not have an ‘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.

Features

Therefore, the 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.

You define the order or WBS element as "statistical" by setting an indicator in the model order or the project profile (or directly in the master record of the order or WBS element). No settlement is possible for statistical orders or WBS elements. Their only purposes are planning and budget monitoring. Therefore, debits that are not eligible for capitalization (internal activity allocation), but that you wish to have reflected in the statistical budget, require special treatment. When you post this type of debit to the statistical order or WBS element, make sure that it also has an additional account assignment to CO (Controlling). The account assignment could be to a cost center, for example. By making this additional account assignment, you ensure that these costs are included in later CO settlements.

This graphic is explained in the accompanying text

Statistical Order or WBS Element Account Assignment for Capital Investments

You can 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. 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 master record of the order or WBS element that it is for statistical posting. Then the system does not allow the order or WBS element to be settled.

Commitments

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

Active Budget Monitoring

The system provides a passive availability check, which you carry out using reports. In addition, there is an active availability check, which enables you to prevent posting of transactions that would exceed the budget. The system checks the budget when certain transactions are entered. It determines if the available project budget or the available released budget is still sufficient. The system uses tolerance limits you entered in Customizing when making the availability check.

In order to use the active availability check, you must enter it in the budget profiles of the statistical order or WBS element.

Activities

You use an indicator in the budget profile in order to control whether the system should monitor a budget for an order or WBS element. You enter the budget profile in the order type or the project profile. You also have to define the necessary tolerance limits. For more information, see the Implementation Guide for Overhead Orders (CO-OM-OPA) or the Project System (PS).

The conditions below are necessary for automatic statistical updating:

You make these last two settings in Customizing for Asset Accounting (Transactions ® Budget Monitoring).

Caution

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 part of the Investment Management (IM) component.

Integration

You can include statistical orders and WBS elements in the depreciation forecast (for more information, refer to Simulation and Simulation / Depreciation Forecast). The preconditions are that the order or WBS element

Funds Management

In addition to budget monitoring using statistical orders/projects, you can also oversee budgets for assets using Funds Management. In this case, activate the necessary account assignment objects. Enter account assignment rules for the Funds Management objects. These rules should be the same as for the WBS element (above). Keep in mind that the account assignment objects of Funds Management are not active in the standard system. Also note that the indicator for budget monitoring no longer plays a role in Asset Accounting, but it is still interpreted by Funds Management. For this reason, this indicator can be set or changed only in Funds Management.

Furthermore, the screen layout control of the affected asset accounts must allow for account assignment to a commitment item. For more information, see the documentation for FI - Funds Management.

 

 

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