Greetings to all.

Greetings!!

New business requirements are something we encounter frequently. Sometimes we can accomplish the same goal using the usual procedure, and other times we need to customise or come up with a different solution to satisfy the business requirement. I’m grateful.

The necessity for a business to move inventory to the end asset was a recent requirement I came across. In SAP, there is a standard procedure that may be used to accomplish this. Although this is not a common occurrence, many of you might not be familiar with the procedure. By using some of the SAP’s standard procedures, I was able to meet the business requirement. So, I had the idea to share something with everyone that might be useful to you at a later time.

The process flow is shown here to assist you understand the procedure as simply as possible.

Process Flow Chart

Please follow the steps below to provide more information about each point mentioned in the process flow chart:

Please be aware that there are two ways we can transfer or settle AUC to the final asset.

1. Following the MIGO posting and before the MIRO document posting

2. Immediately upon the MIRO document’s posting

1. Creation of Master Data
Internal Law 1.1
We must use T-Code KO01 to generate an Internal Order in order to assign the budget to assets.

Create IO

Enter Necessary Details

Enter Control Data

Order Created

1.2: Assign Budget to Internal Order

Enter IO Number

Assign Budget to IO

 

1.3: Release Internal Order –KO02

Release IO 1

Released IO

1.4: Assign Internal order to Order Group – KOH2

Select Order Group

Assign IO to Order Group

1.5: Create Asset Master (AUC) – AS01

Create Asset Master

Enter Details

Enter Details (Assign Internal Order in Time-Dependent tab)

Asset is Created

1.6: Create Main Asset – AS01
Once AUC is created, we have to create the main asset in which we have to transfer the AUC. It is important to assign the Unit of measurement and cost center.

Creation of Main Asset

Enter required Data (Cost Centre & Internal Order)

Assign Depreciation Area

Asset Master Created

Now, we have completed all the pre-requisite in order to transfer the Inventory to the Final asset.

2. Procurement Process
2.1 Create PR (ME51N)

  • In the account assignment category select A.
  • Inline item data give internal order numbers created before.

Select Account Assignment as A (Asset)

Enter the order number and select material

Purchase Requisition is created

2.2 Create PO (ME21N)

  • Make sure that Uncheck the GR non valuated
  • Make sure that you’ve assigned the Internal Order

Create PO using PR

Uncheck GR valuated box

PO is created

2.3 MIGO

Enter PO number

MIGO document is posted

Now, you can see Quantity is transferred in AUC.

Quantity is updated

3. Settlement of Asset
3.1 Create Sub Asset (AS11)

Write the number of sub-asset

Enter necessary details

Sub assets are created

3.2 Transferred AUC to the main asset (AIAB)

Write the main asset name

The book value of the asset will be shown here

Now you will select the asset and press the button

  • It will ask you to asset settlement
  • There are two options while settling, you can write a direct amount or you can write the percentage.

Check Syntex

Check the Green status

After the Green status, the system will take you to T-code – AIBU.

  • Here you have to write the Asset Value Date, which has a direct impact on Depreciation
  • Check the amount transfer in Test

AIBU screen will open automatically. Click on a test run

Now you can see the entry

Uncheck test run and execute

The asset is transferred and the document is posted.

Now check Asset Explorer (AW01N) of AUC and main asset. Values will transfer from AUC to the final Asset.

4. If a settlement is performed after MIRO
First steps such as PO creation and MIGO will be the same as the previous process i.e. settlement after MIGO.

Step 1: Create AUC
Step 2: Create Main Asset
Step 3: Create PR & PO
Step 4: Post MIGO

Step 5: Post MIRO. After doing the above mention steps, create MIRO document

MIRO Document

MIRO Document is posted

4.1 Settlement after MIRO document using T-Code AIAB

Select AUC Asset and click on Execute

Select Main asset and amount which will be settled against the Main asset

After entering the settlement details, system will redirect to AIBU screen

Click on Execute and here you can see the Accounting simulation of Settled asset

Accounting Simulation

If, Above entry is correct and as per the business requirement, then post the entry. To post the document, remove the test run and click on execute

Posted by AIBU Accounting

Check the AUC and main asset’s Asset Explorer (AW01N) right away. Values will move from the final Asset to the AUC.

 

Any ideas or contributions are appreciated.

 

Thanks a lot!