Table of contents

Objective and Scope

Objective of this Procedure

This document describes the transactions related to the process of project structuring and creation of asset master data.

Scope

This document includes the necessary transactions for project structuring and creation of asset master data used in the current ERP system (PF1)

Reference Documents

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Definitions

Abbreviations

Definitions

The Material Code (MC) is used for structure and control of investment project costs as well as classification of asset master data. Useful life and account allocation are part of MC definition.

Responsibility

Finance Site/Technicians: Depending on the local organization, local asset accountants and /or technicians are responsible for the project structuring. Asset master data are always created by local asset accountants.
SU MAC I&D Expert: Editor of Material Code

Project structure

Standard Structure

To use the standard structure is mandatory for all investment and demolition projects.

Project Structuring CJ02

Capitalization of costs / revenues in area 50 only

.
Describes the necessary steps and transactions related to the capitalization of costs / revenues in area 50 only in the same current fiscal year they are incurred, while remaining as expenses / revenues in area 01 (local GAAP).

Any capitalization of costs and revenues in area 50 in the same current fiscal year they are incurred must be submitted for approval to GAR. Without GAR approval, this procedure cannot be run.

We can resume that the responsibility of this point its divided:
CAM  responsible to assess which costs or revenues should be capitalized in area 50 but remain as costs and revenues in local GAAP and designate the specific AuC and/or final Asset (s) as receivers.
SU MAC responsible to run the procedure.
IS  responsible to meet the special Investment Profile ( need of creation of new Investment Profile) and profile any additional support SU MAC might need.
GAR  responsible to approve and assess whether such costs and revenues should in fact be capitalized according to Group Rules and IFRS.


A special Investment Profile needs to be created and assigned to the specific WBS element, which in turn determines a special asset class and account determination. IS support is required to meet this prerequisite.
The following customization can be used as a reference:

• Investment Profile – ZRU_50

Asset Class – ZRUIE_50
Account Determination – RU125_50
Capitalization key – ZZZ50 (mandatory – capitalization only in Group (Local 0% - Group 100%)


While certain costs or revenues during the assets construction are allowed under IFRS to be capitalized to assets under construction and later to the final asset, some of these costs or revenues cannot actually be capitalized under local GAAP, leading to divergence between local GAAP and IFRS.

Point 1) Create special WBS in the respective Project structure

Create a special WBS element within the project structure.
Before you release the WBS, on the WBS tab "Control" change the Investment Profile to the one defined in the prerequisites of this procedure for the corresponding country. Also insert field "Result Analysis Key" with value ZZZ50. Using these definitions, the WBS element will settle its value to AuC only in area 50.

When the Control tab is modified go to the settlement rule of the WBS element and use menu 'Goto' -> 'Settlement parameters'.



There you must modify the settlement profile to ZCOAG and allocation structure to ZR.

Then press the button twice to go back to the screen where all WBS elements are listed.
Mark the WBS, click on "Edit" > "Status" > "Release". This changes the status and creates in parallel an asset under construction.
As the WBS element is an account assignment element (i.e. is assumed to accept costs), you will be prompted to initiate the creation of an AuC record.


Press to initiate the creation of an AuC corresponding to the newly defined WBS element.
Accept the asset class proposed by default and press to continue.
On the next screen insert field 'Capitalization key' with value ZZZ50.



Then press the button to go back to the screen where all WBS elements are listed.

Point 2) Post your primary costs and revenues on special WBS

All your primary costs posted on the 6* and/or 7* accounts which you want to capitalize in area 50 should use the special WBS element created in Step 1.
Exception:
If any of your cost 6* or 7* accounts are included in table OKB9 determining a certain default cost center (usually division cost center), then an assessment allocation cycle needs to be run to transfer these costs or revenues from the default cost centers to the special WBS element created by means of a specific secondary cost element – 98*. This cycle needs to be run before the next Steps.
If for the time being you want to capitalize your costs and revenues only on AuC , proceed to Point 3).
If ALL costs and revenues are to be directly capitalized to the final asset, skip to Point 4).
If only part of the costs and revenues are to be capitalized to the final asset, skip to Point 5).

Point 3) Perform the individual settlement

Settle of the special WBS via CJ88 (using processing type 'Automatic'), so that the costs are transferred to the area 50 of the AuC associated with this special WBS element. This should produce a posting Dt F* / Cr 7211000002 according to the .customizing of the account determination defined for the corresponding country (refer to the prerequisites of this OP).
N.B. If in the respective country a Legal Chart of Account is requested, then we need to assign the F* and 7211000002 account to technical accounts in local GAAP.
At this stage your costs and revenues are capitalized in area 50 under Asset under Construction, while in area 01 (F* and G* accounts) they remain as current costs and revenues.
Checkpoint: Open the special WBS element and take the AuC number from its settlement rule. Then open this AuC's values screen using transaction AW01N and check its acquisition values for area 01 and area 50. The acquisition value in area 01 must be zero whereas the value in area 50 must correspond to the value of costs previously accumulated at the debit side of the WBS element.



Point 4) WBS settlement to final Asset in Area 50 only ( in case of purchase or capitalization at the end of construction)

1. Change the status of the special WBS element to be capitalized into fixed assets in area 50 to "close technically".
2. Perform the individual settlement of this special WBS via CJ88 (using processing type 'Full Settlement'), so that the costs are transferred to the area 50 of the final assets associated with this special WBS element,

The settlement made in point b) creates a document of the type Dt F* / Cr 7211000002 (see details in point 3). This document however cannot be seen in the CJ88 report screen (via button ). It can be however retrieved via the transactions seen in the AuC values screen using transaction AW01N. Double-click on the line with transaction type 114:
The accounting document will then be displayed.
At this stage your costs and revenues are capitalized in area 50 under Fixed Assets, while in area 01 (F* and G* accounts) remain as current costs and revenues.
Checkpoint: Open the asset's values screen using transaction AW01N and check its acquisition values for area 01 and area 50. The acquisition value in area 01 must be zero whereas the value in area 50 must correspond to the value of costs previously accumulated at the debit side of the WBS element.

If only part of the costs and revenues are to be capitalized to the final asset, more than one receiver has to be defined in the settlement rule for the final settlement of the WBS.

This section considers a specific G/L account as the second receiver.
The fixed amount to be settled to each receiver (final asset and G/L account) has to be manually calculated by CAM and SU MAC should compute the ratio and insert it in the settlement rule.




Point 5) WBS settlement to Final Asset in area 50 only & G/L account

Example: if you want to capitalize 95% of the value in asset under construction to the final asset and 5% to a specific G/L account, you have to type in the column Equivalence Nr in the settlement rule for the line for the final asset 250000 (0,95*1.000.000) and in the line for the specific G/L account 50000 (0,05*1.000.000).

Change the respective WBS element to be capitalized into fixed assets in area 50 only and in a specific G/L account to "close technically" and insert the capitalization date in the asset master data.
Then, perform the individual settlement of this special WBS via CJ88, so that the value is transferred in area 50 only from the AuC to the final asset. Please, not that this won't generate any posting, not even on the specific G/L account maintained in the settlement rule of the WBS!
Checkpoint: At this time the value for capitalization must be transferred to the finished asset. At the same time the AuC value must be put back to zero in both areas. Open AuC value screen with AW01N and make sure its acquisition values in areas 01 and 50 are zero. Then open the final asset value screen with AW01N and make sure that its acquisition value in area 01 is zero and the value in area 50 is the amount decided for capitalization.
Then, run ASKB which will post Dt 121XXXXXXX vs Ct A21XXXXXX9 account for the amount to be capitalized into the final asset according to the fixed ratio defined in the settlement rule of the WBS, and 2 postings Ct 125XXXXXXX Dt A25XXXXXX9 (one for the amount capitalized into final asset and the other one for the remaining amount settled to G/L account defined in the settlement rule).
N.B. ASKB transactions will actually pick-up each and every asset movement posted since the last execution of ASKB. This means that in the result of ASKB's execution you may receive more postings than described in the above paragraph.
Checkpoint: At this time, there should be an imbalance in the report GR55 – Z1F1 for the check sum equal to the amount to be charged to the specific G/L maintained in the settlement rule of the WBS. This is normal at this stage.
In order to correct the imbalance, the following manual posting has to be made via FB01 or ZZF_posting_file upload for the remaining amount to be settled to G/L account defined in the settlement rule:
Dt Specific G/L account / Ct A25XXXXXX9

N.B. It is important that both accounts in this posting are not customized in table Z1ACO. Otherwise program Z1AANNUL might propose unbalanced posting.
Checkpoint: At this time, there should be NO imbalance in the report GR55 – Z1F1 for the check sum and the amount posted to the specific G/L account should correspond to the amount given by CAM.

Capitalization of assets in area 01, remaining as AuC in area 50

Describes the necessary steps and transactions related to the capitalization of assets in area 01 while remaining as assets under construction in area 50.
This topic, have 4 major remarks that are more detail on chapter 4.4.1.2 Detail Steps:
1.Its only valid if the asset was not yet capitalized neither in area 01 nor in area 50 or the asset was capitalized in both areas in the current month (trimester) and has not been yet depreciated. This procedure does not apply to final assets capitalized in previous periods because depreciation has already been posted.
2. In order to reduce value in area 50, transaction type ZR2 must be limited to area 50 for the corresponding chart of depreciation. Please inform IS to create the needed customizing. Please list below the countries (with respective Chart of Depreciation) whose transaction type ZR2 has already been customized in the respective tables in SAP.
3. In order to create the Asset, a special asset class needs to be created for the respective country. Please inform IS to create the special asset class with reference to this OP using asset class ZXXIEYYY as a reference.
4. In order to perform the Increase of the value of the special AuC in area 50, transaction type 030 must be limited to area 50 for the corresponding chart of depreciation. Please inform IS to create the needed customizing. Please list below the countries (with respective Chart of Depreciation) whose transaction type ZR2 has already been customized in the respective tables in SAP.

Post only in Local Area:

When an asset has to be capitalized only in the local area and remain as AuC in the group area the following principle must be followed:

1. The asset is capitalized in both areas using the standard capitalization procedures
2. Immediately after the capitalization posting is completed two additional steps have to be taken:
a) Take manual transaction ABSO to reduce the acquisition value in area 50 of the finished asset back to zero;
b) Create a special AuC (not investment measure) and use it with manual transaction ABSO to increase its acquisition value in area 50 to the amount of capitalization;
After taking these additional steps the values of capitalization will be correct in both areas.
When the AuC needs to be finally capitalized in area 50 then transaction AIAB will be used to distribute its value to the defined final assets.

Detail Steps

• Capitalized in both Areas:

Note: In case the asset was already capitalized in both areas in the current period, skip Step 1 and proceed to Step 2.
a) Change the respective WBS element to be capitalized into fixed assets in area 01 to "close technically" and insert the capitalization date in the asset master data.
Please note that since the final purpose is to have the respective asset only capitalized in area 01, the capitalization date in the asset master data should be the date from which the asset should be capitalized (and therefore depreciated) according to local GAAP – area 01.
b) Perform the settlement of the respective WBS using transaction CJ88, which will transfer the value from the AuC to the fixed asset.
Checkpoint: As of now you have capitalized the WBS into fixed assets in both areas 01 (local GAAP) and area 50 (Group Reporting / IFRS). Go to AW01N and check the Acquisition value in both area 01 and area 50 (must be the same).

• Reduce the value in Area 50:

Since the purpose of this OP is to capitalize the WBS into fixed assets only in area 01 and not in area 50 for the time being, there is the need to reduce the value in area 50 back to 0 after Step 1. This can be accomplished using standard SAP transaction ABSO with transaction type ZR2, which is limited to area 50 only.
Enter transaction ABSO and insert:

• Respective Company Code and respective asset number and subnumber receiving the value by the settlement of the WBS.
• The document date and posting date should be the same as the date of the capitalization date of the asset. Posting Period is the respective month of the posting date.
• Insert Transaction type ZR2

Press .
On the next screen insert the acquisition value (a positive value must be inserted) and check the Asset Value date (it must be the same as the asset's capitalization date). Some free text explaining the transaction might also be inserted.

Save the posting. This doesn't generate any FI posting, only a document in AA.

Checkpoint:
Go to AW01N and check that the Acquisition value is equal to 0 in area 50 for the respective asset, but in area 01 the Acquisition value should remain unchanged.
Asset's value in area 01 with the planned depreciation:

Asset's value in area 50: The acquisition value has been put back to zero and there is no planned depreciation for this area:

• Create new Asset in AS01 with the special asset class

Create a new AuC via AS01 using the special asset class defined in the prerequisites , using the original AuC as a reference.

• Increase the value of the special AUC in area 50

Enter transaction ABSO and put following information:

• Respective Company Code and respective AuC number that was just created .
• The document date and posting date should be the same as the date previously used to reduce the value of the finished asset in step 2.
• Insert Transaction type 030.

Press .

On the next screen insert the acquisition value and check the Asset Value date (it must be the same as the asset's capitalization date). Some free text explaining the transaction might also be inserted.

Save the posting. This doesn't generate any FI posting, only a document in AA.

Checkpoint:
1. Go to AW01N, insert the new AuC and check that the Acquisition value in area 50 is the same as found in Checkpoint in Step 1 for area 50. Also check that the acquisition value in area 01 is 0..

Asset's value in area 01 is zero:


Asset's value in area 50 is equal to the acquisition value transferred in step 1. There is however no planned depreciation:

Capitalization of assets in area 50 only after the asset had been already capitalized in area 01

This topic is only applicable if Procedure of Chapter 4.3 was applied before for the earlier capitalization in local GAAP (area 01) compared to IFRS (area 50).

Post-capitalization in area 50

When the special AuC in area 50 (created and mention in Chapter 4.4.1) of this OP, has to be capitalized according to IFRS rules, its value will be settled to the final asset(s) using transaction AIAB. Since there is no WBS element assigned to this AuC, the settlement rule will be introduced in this transaction.
The final asset(s) used for the settlement may be brand new one(s) or already existing one(s) that have acquired values during previous settlements.
Run transaction AIAB.

• Choose respective company code and the special AuC number (which only takes value in area 50) and run the transaction.

Press

On the next screen select the line(s) subject to settlement and press to introduce the settlement rule.

In the settlement rule introduce the final asset(s) that must receive the capitalization value in area 50. The management of the settlement rule is the same as used to settle WBS to final asset

Press to go back to the previous screen. Now the status of the line is green (ready for settlement). Press to execute the settlement of the amount

Confirm with 'Yes' the pop-up that appears. On the next screen insert document date, posting date and value date for capitalization. Leave the 'Test run' check-box active. Press

If the test run is successful the following type of screen appears:

It is normal to have zero amounts under 'Amount posted' column because the settlement will not generate accounting posting.
Press to go back to the selection screen. Remove the flag from the 'Test run' check box and press .. The same report screen as above must appear.
The settlement does not generate any FI posting, only an AA document is created.

Checkpoint:
Go to AW01N, insert the final asset(s) and check their values in area 01 and in 50.
The value is area 01 must be the same as before the settlement (if brand new asset then the value must be zero).
The value in area 50 must have been increased with the value corresponding to the settlement rule. If it is a brand new asset, then the value will be equal to the settled amount.

Asset master data

Creation of asset master within CJ02

If all required data for a new asset are available and it is a one to one relation between WBS element and asset, the master data can be created within CJ02. Call up CJ02, click on WBS element overview:

Select a line and click on "Extras" > "Create completed asset":

Make the necessary entries:
Asset class (according to WBS element)
Number of similar assets (if you have more than one identical items)
Sub number (if you have an extension of an existing asset or subsequent acquisition costs)
Reference (if you want to use an existing asset as template)
Cost center (if not entered in WBS element)
Location
To continue, click on additional data:

The following entries are possible:
Serial number (if available)
Functional location (if required and available)
Material number and Quantity (if you create asset master data for spare parts)



N° Budget
Investment support key (if you receive subsidies)

You are free to make entries in this tab. To enter the WBS element is a recommendation to reconstruct the list of origins in future periods.

Additional entries in other tabs are not necessary for a pump, but check them for other types of assets (e.g. lands).
Click on button "Back (F3)" to continue:

Click on "Enter":

You get the message, asset and distribution rule are created:

Final step: save your data!



Click once more on "WBS element overview":

Select a line and click on "settlement rule":

The settlement rule is the interface between modules PS and FI-AA. Mandatory entries are category, settlement receiver and percentage or equivalence no.

The above described procedure (creation of asset master data within CJ02) maintains the settlement rule automatically.

Creation of asset master and settlement rule

This section describes what has to be done if information for asset master data or settlement rules are not available on the time of WBS element creation (e.g. for engineering, permits etc.)

Creation of asset master data AS01

After calling up AS01 you have to make the mandatory entries and, if applicable, select a reference asset. Click on "Master data":

You get the same tabs and have to make the same entries as described above (3.1.)

Finally: save your data !

Inventory number

In both cases of asset master creation (CJ02 and AS01) you have to insert the inventory number. The inventory number never changes for the whole life of an item, regardless of group internal asset transfers. It is created when master data for an item are created for the first time and has – in case of group internal asset transfer – to be transferred to the asset master of the receiving company.

The recommendation for the coding of unique inventory numbers is as follows:
digits 3 to 6 (always 0) of the asset number (12 digits) are deleted,
slash,
3 digits for sub number,
hyphen,
4 digits for company code.

Maintenance of settlement rule

Call up CJ02. Click on "WBS element overview":

Select a line and click on "Settlement rule":

Make the entries category, settlement receiver and percentage or equivalent no.:

Click on "Back"

and save your data:

Maintenance of master data

Maintenance for single assets AS02

The transaction to change asset master data is AS02. Changeable fields have a white background. You have to take into account, that cost centers should not be replaced directly. They should be added as further intervals. Select tab "time dependent" and click on "Further intervals":

Click on "Add interval":



Insert the "From-date of new interval" and click on "Enter":

Replace the cost center in the new interval line and save your data:

Mass Changes

For mass changes of cost center and/or location call up ZDEAPAEN1 and click on "Execute":

Depending on what has to be changed, insert your selection.
Note: if you delete the hook in "Testlauf kein BTCI" you create a batch input session that has to be executed to finish the change of master data.

Attachments

End of document