Advice on FA process flow

[Former Member]

Hi Guys

Need one advice on FA process flow.

Present Situation :

My client creates asset number when they create IO and do the linking using KO88 T-code, When Asset arrives at factory gate they do the MIGO and create CWIP number for that IO number, once asset get installed they add asset previously created to FAR.

My take on this situation :

I believe that they should create asset only when it actually arrives at factory gate or when asset get installed. From the time raising of PO for IO till it get capitalized no where asset number is getting used, it's with controller and when it actually installed he capitalized the asset for CWIP at time of factory entry of asset.

My question is this normal on his part to create asset at time of IO creation and keep it with himself till capitalization starts or what I am thinking he should create asset only when it actually installed or at least arrive at factory gate. Please suggest experts which flow would be better and appropriate

Aditya

[former_member198650 · Accepted solution]

Hi Aditya,

At the time of PO creation, if you chose account assignment category 'A', then you should provide the asset nos. So you have to create a asset master for input in the PO.

Regards,

Mukthar

[Former Member · Accepted solution]

Hi Mukhthar

I have checked the Account Assignment category for Fixed Assets by using OME9 and following is the result.

1. Invoice Receipt indicator is Activated

2. Goods Receipt Indicator is Activated

3. Cost center is Hidden

4. GL account is Display

which means Account assignment is 'A'.

Now, finance clerk is saying he doesn't provide Asset number, just create it and keep with him instead he supply IO to create PO. I am really getting confused, if account assignment is 'A' then he should supply asset number to Purchase team as per your post  for creating PO's

Can you explain on this part or I am testing Account assignment in a wrong manner.

Regards

Aditya

[Former Member · Accepted solution]

Hi Mukhthar

In relation to above post, I believe these are recommended values, I have checked PO screen layouts and found that Account assignment category is option for capitals PO. Does that mean they are not using account assignment as 'A' at time of PO creation?

Any idea about how can we check Account assignment values for PO creation?

Regards

Aditya

[former_member200703 · Accepted solution]

Hi

Account Assignment is MM indicator that dive the behavior of the P.o Creation.. they may use Account Assignment F instead of A

As F is allowing while P.o creation to insert the internal order ..

Regards

Mahmoud EL Nady

[Former Member · Accepted solution]

Hi Mahmoud

can you please tell me how to check account assignment, I have checked through OME9 and it's A. But it is optional in screen layout for PO creation, Does this mean they can create PO without asset number or something else?

Regards

Aditya

[former_member198650 · Accepted solution]

Hi,

If the PO has account assignment category as "A", then it is a capital PO. System will ask for asset details, without these details it won't allow you to post. If the PO has account assignment category as "F", then system will ask for order. So check the PO which assignment category it has been assigned.

Regards,

Mukthar

[former_member200703 · Accepted solution]

Hi

They can create P.o to purchase the asset if they use investment measure purchase procedures

As far as my knowledge in this area .. the Account Assignment is not optional in P.o creation .. but there are number of account assignment .. while creating P.O the Account assignment as i said before is governing the act of P.o and the Account assignment tab so :

1- if you create P.o without account assignment , you will be required to insert materiel No. as it a Inventory PO.

2-if you insert Account Assignment A .. there are  a tab would appear in the item Details in the bottom of P.o asking you to insert asset No.  like below

3- if you insert account assignment F while P.o creation he will ask you to insert a GL and Internal Order

Regards

Mahmoud EL Nady

[Former Member · Accepted solution]

Great, I think got my answer just summarizing the things. Comment last time

Account assignment if 'F' as the case with most of PO's for my client then it require IO and GL details (And Purchase team are entering it). 'Account assignment could be optional as all PO are not capital PO.'

Therefore, Asset number is not  required to be created at IO level instead financial clerk can create it when asset finally arrives or capitalization happens. I am going to suggest the new enhanced flow to client

Please comment guys and help me in closing the thread.

Regards

Aditya

[former_member200703 · Accepted solution]

Hi

When you create I.O Type " Investment Measure "  this type of I.O create automatically AUC in settlement run .. and settle all amount in I.O to this AUC No.

secondly when the asset is ready for use you need to create Final Asset no. and insert it in the settlement rule of the I.O and then run the settlement again to settle the amount accumulated in AUC to final asset..

please refer to this link which describe the use on I.O in asset purchasing

SAP Best Practices Baseline Package

Point 162-163

Also have a look at the attached document i mentioned in my first answer..

Budget on Asset Purchase

Regards

Mahmoud El Nady

[Former Member · Accepted solution]

Thanks Mukhthar, Answer is really helpful. I can mark only as correct hence giving that to Elnady.

[former_member200703]

Hi

i tend to your opinion that they should not create the asset till it arrive to factory gate or begin installed .. in our company when we first adopt the investment measure in asset acquiring process we found that when we create an asset before it physically came that sometimes cause problem when the asset description may be different , can be divided to many assets and they can operate dependently .. etc?

so we decided to create the asset when it came to our gates not when we start purchasing process?

finally we adopt the below asset purchasing scenario which we found it more relevant to us?

Regards

Mahmoud El Nady