1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Reference Documents
3 Definitions
3.1 Responsibility
3.2 Abbreviations
4 Summary
5 capitalization of an asset
5.1 Check the form received from Project Manager.
5.1.1 Control-Check after the file arrive
6 How to Create/Change an Asset
6.1 To create an Asset Master Data
6.2 To change an Asset Master Data
7 Creation of settlement rules
7.1 Manual creation of a settlement rule
Enter in transaction CJIC , choose data profile as shown below:
7.2 Mass creation of a settlement rule
Download both tabs into a txt file and save.
8 Settlement of WBS for capitalization
8.1 Settlement
8.2 Checking the capitalization
9 Defining the (F) allocation rule
10 Acquisition with negative amounts
11 Cancelling a capitalization
12 Capitalizations Controls:
12.1 Evidence request for commissioning/divestments
12.2 Capitalizations/Divestments above 50k.
12.3 Archiving
13 Close/Technically Close a project
13.1 Set status Technically Closed (TECO)
13.2 Set status Closed (CLSD)

Objective and Scope

Objective of this Procedure

The purpose of this document is to describe how to put an Asset Under Construction (AUC) in service trough a Fixed Asset (FXA).

Scope

This procedure applies to WP1 system since in PF1 this is automatically. 

Definitions

Responsibility

Project Managers are responsible to fill the form in excel file "Asset on Completion Form" ("Demande de mises en service d'immobilisations") and send it trough a ticket.
SBS Service Center is responsible to create the asset, settle the WBS and make the necessary checks in order to ensure that what was requested was correctly booked in SAP.

Acronyms

PS - Project System (SAP module)

WBS - Work Breakdown Structure 

MC - Material Code

AUC - Asset Under Construction

FXA - Fixed Asset

Resume

Capitalization of an asset:

1. Account balance from WBS to AUC (automatic creation of AUC in previous months). The AUC will have values to capitalize until the project is under construction. As soon as the project is finished and ready for use, the AUC should be Capitalized as defined in IAS 16 - Property, plant and equipment.
2. When the project is ready for use, it is needed to create the fixed assets related and:

> Change the WBS rule to "full" or "partial" settlement with the definitive fixed asset number and the capitalization date;
> Select the option processing type "full" or "partial" in the settlement transaction;
> Account balance from AUC to fixed asset - Verify balance of the project;
> Change the status of project (closed) if requested.

Capitalization of an asset

Check the form received from Project Manager

Project Managers will send a file to SBS Service Center with the necessary information to capitalize an asset. The following information needs to be checked in the form before starting to proceed with SAP (if some information is missing, please send back the file requesting for the missing information):

• Sheet "ASSET CREATION FORM" please check if the Header description is ok and consistent:

• Sheet "ASSET CREATION FORM" confirm that all mandatory fields are correctly filled, namely:

Asset Class

Description

Depreciation term by default

Depreciation term if applicable (only if different from the first one "by default")

Reason for Depreciation Adjustment (only if different from the first one "by default")

Cost Center

Division/Site

Location

(If the form have more information detailed please comple the asset master data accordingly)

• Sheet "WBS Detailed Costs" please check if column "Alloc Code Tx/Fx" is filled without blank cells for all WBS line items. All other columns are extracted from BW and automatically filled in SAP (CJI3);
• Sheet "WBS Detailed Costs" please check the nature of the WBS, if it is tangible or intangible AUC. Because you can only capitalize if the nature is the same ( AUC tangible → FXA tangile and AUC intangile→ FXA intangile);
  
  Check WBS with transaction CJ03 (double click on the WBS):
  
  
  
  
  Check the Asset Class in the form sheet "Asset Creation Form" and check in sheet "ASSET CLASSES & DEP TERMS" if it is tangible or intangible:

• In sheet "Cost Allocation" please check if the total amount allocated is equal to the Total Project Amount. For that, the sum of WBS amounts in sheet "WBS detailed costs" must be equal to the total project to be capitalized. If the cells will appear in RED in sheet "Cost Allocation" means that the splitting allocation is not correct (different from 100%).

insert print screen of dif % allocations



Please check if:

• The Total amount allocated is equal to the Total Project Amount
• For that, the sum of each column regarding the split allocations must be 100%. If not, the cells will appear in RED, meaning that the splitting allocation is not correct.

In Asset on Complementation Form:

In this form check if the amounts in column E (Total Amounts to post) are the same amounts inserted in the form In Cost Allocation.

In Asset Removal:

This form is only necessary to Asset Removal. Unless it is required, it should be empty.

How to Create/Change an Asset

To create an Asset Master Data

The Project Manager must send the excel file with all the information need and SBS Service Center perform the checks previously explained. After that, please follow the next steps.

Go to transaction AS01:

With the information provided in the file sent from the Project Manager, please fill:

• Asset Class
• Company code*

*If no company code is described on the form, please check any of the WBS inside the form in CJ03 to check what company code it belongs.
Click
In TAB General, please fill:
Description – Name of the asset and the project number
Inventory number
Quantity

PA.SF12A9

In TAB Time-dependent, please fill:
Cost center
Plant
Location




In TAB Allocations, please fill:
Accounting:
It is to report the Asset following local rules 2054 or 2055, so if the system does not provide any information, we should contact CAM.
For RCS LAM companies, there are two different situations: For Brazil this field should be always filled in as "BR00", and for Venezuela as "VE00".

Management 1
Capi. Difference*
FC Group – It will be defined depending on asset class

• The differences of capitalization between IFRS and local, can only be provided by the local accountant. Ask for this information when needed.
  
  In TAB Origin, please fill:
  Vendor (Not mandatory for RCS)
  New/Used (Not mandatory for RCS)
  Original Asset
  WBS element – Fill in with the WBS inside the form that has the bigger amount
  Flag the field Asset purch. new
  
  In TAB Net Work Tax, please fill:
  Classification Key*:
  It is to indicate what type of Tax should be paid (CFE or CVAE).
  Normally the asset class matches with the following classification Key, but if not, we should accept which classification key that the system assumes, or in case of doubt, contact CAM.
• AC215: FR90
• AC211: FR30
• AC213: FR30.

Property indicator - The code 1 comes by default depending on the category,

• If blank, please contact the local accountant
  
  
  
  
  
  In TAB Deprec. areas see that:
  The depreciation (amortization code, duration) parameters are filled in by default, from the category, and by the asset class, normally if the use life is:
• < 3 year  ZRH1
• From 3 to 4 years  ZD12
• From 5 to 6 years  ZD13
• > 6 years  ZD14

Z000 means there is No depreciation.


Click to confirm the entry;
Click to save the entry.

A confirmation message appears at the bottom of the screen, where SAP returns the asset number created.

The Asset codification is XyyyyZZZZZZZ
X - '1 ' for Asset under construction / '2' for final assets.
yyyy - Company code
ZZZZZZZ – Automatic number
After the asset is created, fill in the form with its number

To change an Asset Master Data

The Project manager must send the excel file with all the information need and SBS Service Center perform the checks previously explained.

After that, access transaction AS02, and change the fields required.

Creation of settlement rules

Manual creation of a settlement rule

Enter in transaction CJIC , choose data profile as shown below:

insert the WBS or the project and execute :

The purpose is to allocate costs posted on the investment measure to completed fixed assets

Click on the button "final settlement" and the following screen will appear:

During this step the system creates the distribution rules, gives them a number (Distribution Group Rule) and assigns each of them to each investment measure line item that have been selected
After complete all the required filds, go back and check if the lines selected are now green :


And press save .

Remark : All lines should be green, otherwise the settlement will not work. If there is any line item that is not described inside the form, please contact AP team to run MR11 for that item. Validate this action first with project managers.

Mass creation of a settlement rule

Inside the form sent by the project manager, there are two tabs named txt file: and .

Download both tabs into a txt file and save.

Enter in transaction ZWFA060, fill in the company code and the adress of both txt file following the name:

Run first in test mode to check if all information are correct filled in SAP :

Go back and unflag the test run. Run it in real mode to feed SAP. The program will show the same screen as in test mode, delivering the following message: .
Possible errors:
R1: File "X" (from selection field " Path and file name for distribution rules") cannot be read or is inconsistent.
R2: Some asset numbers are twice in the file "X" (from selection field " Path and file name for distribution rules"), please correct the file.
R3: Asset number "X" (to indicate the fixed asset number) doesn't exist in RCS database, please correct the file X (from selection field "Path and file name for distribution rules") => to list all fixed assets in as many line as error.
R4: Asset number "X" (to indicate the fixed asset number) is deactivated, please correct the file "X" (from selection field "Path and file name for distribution rules") => to list all fixed assets in as many line as error.
R5: some DRG from column D don't have the right structure, all of them should start by T + a numerical number
R6: In column D there is more than one line with the same DRG, please correct the file "X" (from selection field "Path and file name for distribution rules").
R7: Column "X" (indicate the column number for which there is an error) the total percentage is not = 100%, please correct the file "X" (from selection field "Path and file name for distribution rules").
R8: asset "XXXXXXXXXXX-Y" (to retrieve the asset number from the file) is not created in the same company as the one from the selection, please correct either the selection or the file "X" (from selection field "Path and file name for distribution rules").
R9: file "X" (from selection field " Path and file name for distribution rules assignment") cannot be read or is inconsistent
R10: DRG "X" (the DRG n°) doesn't exist in file "X" (from selection field "Path and file name for distribution rules"), please correct the file "Y" (from selection field "Path and file name for distribution rules assignment").
R11: the company code from line "X" is not the same as the one from the selection, please correct either the selection or the file "X" (from selection field "Path and file name for distribution rules assignment")
R12: EN: CO document number "X" doesn't exist, please correct the file X (from selection field "Path and file name for distribution rules assignment"). FR: le document CO "X' n'existe pas, veuillez corriger le fichier "X" SVP.
R13: WBS element "X" doesn't exist, please correct the file X (from selection field "Path and file name for distribution rules assignment").
R14: WBS element "X" is not assigned to the same company as the one from the selection, please correct either the selection or the file X (from selection field "Path and file name for distribution rules assignment").
R15: If status = 05 => CO document "X" is already assigned to a distribution rule, FR: le document CO "X" a déjà une règle de distribution. If status = either 06 or 09.
R16: The CO document xxxxxxxx has a WBS element (PRPS-PSPNR) different from the WBS element (WBS element from input file) on the input file C:\xxxxxx.txt. Please check

Settlement of WBS for capitalization

Settlement

In order to transfer the costs inside the WBS to a fixed asset, the full settlement or a partial settlement is required. For this procedure, enter in transaction CJ88 and fill in the following fields by using the form information:
– WBS element to settle to the completed fixed assets;

– settlement period and fiscal year;

-- The processing type:

* Partial Capitalization : The system will only capitalize costs which are assigned to a distribution group rule. At least one must be.

• • Full settlement:* Commissioning of the whole costs of investment measure

    -- The asset value date: corresponds to the capitalization date, it is used to determine the depreciation start date. If this field is blank, by default the system uses the last day of the settlement period, but we need to fill in with date described inside the form:

    
  • Check the box of test run and detail list to preview the results of the settlement before processing in real mode;
    
    Execute and the following screen will appear and inside, it can be checked if there is any error on red box below and also which will be the amount allocated by clicking in icon :
    
    
    Go back an run in real mode, by unchecking the test run box. The same scream will appear, but with "processing mode" Real mode.
    From an accounting point of view the system always capitalizes costs (from the investment measure) into the AuC and then transfers them (from AuC) to the completed fixed assets. Consequently when there are costs not yet capitalized into AuC at the commissioning time the system performs simultaneously the 2 steps. For this latter notice that in test run the system displays only the settlement result of the first step (settlement to AuC).

    Checking the capitalization

    After the partial or the capitalization settlement is performed, go to transaction AS03 to display the master data of the fixed assets that received the costs of the WBSs.

    Insert the asset number and the company code and press Enter:
    
    The following screen will appear :
    The capitalized on date has been populated from the asset value date of the settlement parameter screen.
    
    
    
    
    
    The original asset field has been populated with the AuC number.
    
    
    
    By clicking on , it is possible to check the amount of the settlement inside the asset. Compare this amount with the form sent by the project manager in the tab .
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    Defining the (F) allocation rule

    
    The (F) rule is a specific allocation rule, where an asset can be allocated by more then 1 allocation rule.
    
    Asset 3,4 and 6 will be allocated by the respective allocation rule, plus F1 rule.

1. If we have a F1 rule, we start to make a filter by WBS.

We can see that the WBS PA.SF1294.0EEG is allocated by settlement rule F1


The F1 rule is defined as below:

• 60% in Asset 3  FXA 242740046378
• 30% in Asset 4  FXA 242740046379
• 10% in Asset 6  FXA 242740046381

So, the WBS PA.SF1294.0EEG rule will be defined in CJIC as:

The allocation rule distributes for all the assets envolved in the capitalization file, the costs of the WBS, which has a F rule as its allocation rule.

Acquisition with negative amounts

The system does not allowed the posting on assets with negative values, because by default the asset is define to not accept negative values.
The general error is the following:

To be able to do this kind of posting, we have to make changes in the the asset master data in TAB .
Then Double click in each line of the depreciation area board:

You will get the following screen

Then, activate the fuction
After that you can proceed with the settlement of the WBS

Cancelling a capitalization

The need to cancel a capitalization normally occurs after the internal capitalization controls, there are some cases where the capitalization could be done in a wrong period, or by other reason that it was detected that it should be canceled.
The first step is to cancel the acquisition amount in the fixed asset:
Go to AB08

Select the line that you need to be cancel, and press Reverse
A new screen will appear automatically, concerning the CJ88 to cancel the settlement, choose reverse.

Then go back to AB08

This way you can check if the reverse was made in the asset.
Now you can proceed in order to capitalize the right way.
After, you can check in values of the asset AB03 the final result

In this screen shot you can see that the second line is related to the reverse of the settlement (capitalization cancelation).
In the third line concerns the capitalization posted after the reverse with the right data.

Capitalizations Controls:

Evidence request for commissioning/divestments

Just need a evidence for the commissioning.(Signatures are no longer required)
Project Managers, should send a request number by fresh desk, with excel file template. See point number 5.1.1 of this Operational Procedure.

Capitalizations/Divestments above 50k.

The Capitalizations/Divestments above 50k need to be tracked
Minimum frequency:  at each change/until D-3 of each month Control owner function: SBS RTR I&D Service Center Application level: Group - All assets (tangible & intangible) - Period of controls: each Month.
Process description:  SBS RTR I&D Service Center establish a list of all project above 50 KEUR put into service and commissioned, to be confirmed by project manager Control description: SBS RTR I&D Service Center is in charge for the projects above 50 KEUR to have the appropriate confirmation of commissioning date, appropriate divestment date and appropriate confirmation registration posting and demands a signed document to post any entry in the assets books (RTR I&D Service Center posts into the asset books). Control evidence: For each investment/divestment > 50 KEUR, 1) for WP1 system (SBS RTR I&D) Service Center checks the form (useful life, standard,) and the posting and 2) for PF1 system the (SBS RTR I&D) Service Center is not the control owner. Technical controllers are.

Archiving

All assets need to have a sales force number
All capitalizations need to be received via sales Force, since sales force will be used as an archiving tool, linking the assets created and the capitalization request via the Sales force Case Nº. It is where you can find the requested form for capitalizations/retirements

The transaction Z1A_ASSET_NOTE – ASSET MASTER DATA ATTACHEMENT NOTE
is used to make sure that all assets created have a sales force case Nº linking, which case has the capitalization form and annexes attached. These cases are sent by the engineers/project managers.

This transaction will allow you to see if your assets created have a note or a sales force case linking to the Archive document under Note title

In case of no case number, you can easily inserted by double click in the asset and inserted the Case number in the note created

Close/Technically Close a project

*OBS: these steps are done only for LAM companies and only under request.
If the project manager did not request to close or technically close the project, there is no need to follow the instructions below.
When requesting the capitalization of a project, Project Managers could also request to close or technically close the related project.
If this is the case, we should perform the following steps:

Set status Technically Closed (TECO)

*OBS: called "Encerramento Técnico" for LAM companies.
Enter in transaction CJ02 and insert the project to be technically closed

Select all WBS elements that were capitalized and will be technically closed. After that, go to "Edit", Status, "Technically Complete"

After that, click on and then go to "Edit", "Status", "Technically Complete"

After that, all WBS elements and the project itself will be set as "Technically Complete" (TECO). Save the changes by clicking on .

Set status Closed (CLSD)

*OBS: called "Encerramento Contábil" for LAM companies.
Firstly, you have to perform all the steps above to set the project status to "Technically Complete". However, before saving, do the following:

"Edit", "Status", "Close".
After that, click on and then go to "Edit", "Status", "Close"

After all these changes, all the projects and WBS elements are "Closed" (CLSD).
Save the changes by clicking on .

End of document