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Internal Order Vs. CWIP/AUC

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Hi Expert,

I have a doubt about AUC process. Which process I need to follow.

  1. Create a CWIP assets.
  2. Create a P.O. and assign with Assets. (There will be no material code. AAC “A”)
  3. All cost will be collect on CWIP assets
  4. At the time of MIGO entry will be

    CWIP Assets –Dr

        To GR/IR Account –Cr.

  1. Create Main assets where we need settle the assets (CWIP).
  2. Once the asset will complete. Run the transaction code AIAB and AIBU to settle it.

      CWIP –Dr

            To Main Asset –Cr

     Or

  1. Create internal order and CWIP assets.
  2. Assign both with P.O. and the same above entry will generate
  3. Run KO88 (Who will be receiver then)
  4. Create Main assets where we need settle the assets (CWIP).
  5. Once the asset will complete. Run the transaction code AIAB and AIBU to settle it.

     CWIP –Dr

        To Main Asset –Cr

Please suggest.

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member188063
Active Contributor
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Hi Ravi,

I think, you can go with either of the above process mentioned by you above.

From the second process-

"Run KO88 (Who will be receiver then)"

CWIP assets will be the receiver.

Hope it helps.

Sudhakar*

Former Member
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Hi Ravi,

There can be two types of scenario here :

1. In House Manufacturing and creating the Asset

2. Extenal Procurement and creating the Asset

3. Sometimes there can be mixture of both.

You can check the following process:

1) Create a Capital Investment Order with investment profile

2) Create a Purchase Order with account assignment category F

3) Assign the Purchase order to the Capital Investment Order.

4) Goods receipt and posting into the Capital Internal Order

5) Settle Capital investment order to AUC

6) Settle AUC to the Asset.

However Capital Order - AUC process will be as follows:

  1. Create capital investment order with AUC
  2. Enter cost element plan for capital order
  3. Purchase requisition approval with workflow approvals
  4. Solicit bids from external vendors  (RFQ - Request for Quotation)
  5. Post invoice to capital investment order
  6. Enter supervisory time (CATS) to be included in asset valuation
  7. Monitor order – actual / plan variances, completeness, cost validation
  8. Asset under construction settlement
  9. Complete order – asset costing is complete and in service
  10. Update final settlement rule
  11. Execute settlement – capitalize asset

If it is the purchase of a fixed asset, then the general ledger account that is assigned to the account determination that is linked to the asset class that the asset belongs to is defaulted.

If you are not purchasing fixed assets or inventory, then the system will use the ‘Account Modification’ that is assigned to the ‘Account Assignment Category’ which is specified in the purchase order. This Account Modification is linked to a general ledger account in the account determination table (transaction OBYC).

Thanks & Regards

Subhasish