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Asset under construction without project management

Govind_Sharma
Participant
0 Kudos

Hi,

As per help document - Posting Assets Under Construction

Assets under construction cannot be represented automatically. However, you can apply the following workaround to represent assets under construction:

  1. Create a project Assets Under Construction and enter the costs:

    Group acquisitions for fixed assets under construction and assign them first to a Direct Cost Project. The system posts the entered items in the Costs subledger.

  2. Transfer the Fixed Assets Under Construction project to a fixed asset under construction.

    To manage the fixed assets under construction in the asset portfolio and to display them in the fixed assets schedule, make postings from the project to the individual material of an asset under construction that was previously created and capitalized.

  3. Transfer or partial transfer posting from the fixed asset under construction to fixed assets to be capitalized.

    To use this workaround, It need to include the project management into scope and configure.

    Can you please let me know, is there any workaround possible to manage asset under construction scenario without using project management.

    Thanks

    Govind Sharma

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Answers (1)

Answers (1)

parveen_kumar6
Advisor
Advisor
0 Kudos

Hello Govind

The Asset under Construction can be managed better using the Project Managment. Otherwise you have to manually track all the expenses and eventually move the cost to the capitalized asset.

You can post the expenses pertaining to an asset and when the assets need to be capitalized.Then manually create the asset and then do a manual acquistion to transfer the cost from expenses to the Asset.

Thanks

Parveen

Govind_Sharma
Participant
0 Kudos

Hi Praveen,

Thanks for your recommndation, i have another approch in replacement of projects.

Cost object approch:-

We can create new cost object type as asset under construction, add cost object from it.

Those cost object can be selected in supplier invoices and GL account (exp. GL) for accounting posting. (These GL account will be specially created for Asset under construction)

The same cost object and GL account will be used for asset acquision posting - shown below

I tried but in supplier invoice cost distribution, other cost objects are coming

(but not created by me).

Can you please validate this approch and let me know your expert opinion.

Thanks

Govind Sharma

parveen_kumar6
Advisor
Advisor
0 Kudos

Hello Govind


First you need to define the Cost Object Types in the Business Configuration activity Cost Object Types.

Then you need to create Free Cost Objects in the Cost and Revenue workcenter and select the type defined in the Cost Object Types.

Now in the supplier Invoice Account Assignment, you first need to select the Cost Object Types and then corresponding Free Cost Objects will be displayed.

Kindly follow the above guidelines and let me know in case you are facing any issues.

Thanks

Parveen Kumar