capitalization of interest in WBS and then in fixed asset

[Former Member]

Actually we are using WBS from PS to collect the CWIP cost that is capitalized then in Fixed assets.

We have 4 depreciation area. We need to capitalized interest to WBS and then to the fixed asset, but just for one depreciation area.

I need to know if there is any way to capitalize this cost in just one depreciation area, and the other depreciation area keep the same balance without the interest cost. Example.

If the interest cost is $5, when we capitalized:

Dep area 1= 80

Dep area 2= 80

Dep area 3= 80

Dep area 4 = 85

Thanks and regards,

[andreas_mann3 · Accepted solution]

Raquel,

look here:

<a href="http://help.sap.com/saphelp_47x200/helpdata/en/4f/71df92448011d189f00000e81ddfac/frameset.htm">Calculation of Interest</a>

and goto:

SPRO - fin.accounting - asset acc. - special valuation - interest

hope that helps

Andreas

[Former Member]

Hi

I am in the same situation, want to post interest in just one area.

Was there a solution given for this question?

Thanks

[Former Member]

Hi

Define Transaction Types for Acquisitions and Limit Transaction Types to Depreciation Areas so the acquistion value gets updated in the dep area that is required to be updated.

And use the Transaction Types defined above while posting to the asset

To do this follow the step Financial Accounting>Asset Accounting>Transactions>Acquisitions>Define Transaction Types for Acquisitions.

This should resolve your issue.

Good Luck

Hari

[Former Member]

Thanks,

I have read the information that is in the link, but I´m not sure if Is what we need because I tried it in sandbox and AW01N shows an extra column with a interest header. That I´m not sure what kind of effect will have over the financial statements.

Actually what we expect is that interest will increase the capitalization cost and will been taked on consideration to calculated the depreciation.

Additionally we need to know how to increase the interest to the WBS so when we run the capitalization transaction, this amount applies to just one of the depreciation area, leaving other with the other amount.

For example if the construction cost are 100 and we calculated 20 of interest to be capitalized the depreciation area for USGAAP porpouses will capitalized 120 and over this the depreciation will be calculated, but for the local depreciation area, just 100 will be capitalized and taken over consideration to calculate depreciation.

[Former Member]

Hi

I am also having the same situation. We are currently charging interest to WBS and settling everything to Asset upon completion of project. But now I want to have a new depreciation area where interest is not capitalised.

Have you found a solution to this?

thanks