44469029 SAP Internal Order Investment Measure Configuration

SAP INTERNAL ORDER AS INVESTMENT MEASURES

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TABLE OF CONTENTS INTRODUCTION .............................................................................................4 1. Asset under Construction.............................................................................5

1.1 Define Screen Layout for Asset Master Data .........................................5 1.2 Define Asset Classes ...........................................................................12

2. Asset under Construction...........................................................................17 2.1 Define Model Orders ............................................................................17 2.2 Define Order types (KOT2_OPA) .........................................................20 2.3 Define Investment Profile .....................................................................29

3 Planning and Budgeting..............................................................................35 3.1 Maintain Planning Profiles....................................................................35 3.2 Maintain Budget Profile ........................................................................39 3.3 Define Tolerance Limits for Availability Control ....................................46

4 Settlement...................................................................................................48 4.1 Maintain Allocation structure ................................................................48 4.2 Maintain Settlement Profile...................................................................52 4.3 Maintain Number Ranges for Settlement Documents ..........................57

5 Internal Orders as Investment Measures ....................................................59 5.1 Define Capitalization Versions..............................................................59 4.4 Maintain Capitalization Keys ................................................................65 4.4 Determine Accounts for Non operating Expense..................................73



INTRODUCTION

Dear Reader,

We have pleasure in presenting yet another material to you.

Here we cover Internal order configuration as Investment measures/orders.

Investment orders are used for the production of Capital assets i.e. Construction of Building, Plant & Machinery etc. They are used as cost object to collect cost and monitor budgets. They can also be used for the purchase of assets like vehicles, software etc.

Usually companies have huge amount of capital spending. Internal orders are used as a cost object to capture cost and track the budgets. Internal orders are basically used where the capital projects are very simple. In complex projects, the project system module is used.

In this material, we basically cover the aspect of capitalization of cost from internal orders to Asset under Construction (AUC). Capitalize costs from AUC to Final asset.

We cover three following scenarios for capitalization:-

1) Capitalization required in all the 3 depreciation areas Parent, Local and Tax reporting

2) Capitalization required in only parent reporting which means expense out in local and tax reporting

3) Capitalization required in only local and tax reporting which means expense out in parent reporting

So let us begin configuring the investment measures.



For doing the configuration we use the following path on the SAP application screen:-

SAP Menu Tools Customizing IMG SPRO - Execute Project

The above path will not be referred henceforth; we will directly refer to the IMG node.

1. Asset under Construction

1.1 Define Screen Layout for Asset Master Data

IMG Investment Management Internal Orders as Investment Measures Master Data Assets under Construction Define Screen Layout for Asset Master Data

We need to define a separate asset class with a separate screen layout for showing investment measure details. We can use SAP standard screen layout 4010 (Capital investment measure) or we can copy and create a new one.

In our scenario we will copy the standard screen layout.



Double click



We already have 9105 AUC (Investment measure)

Click



Double click



Select the Layout created by us

Double click



Select

Double click



Come back to the screen

Select

Double click



1.2 Define Asset Classes

IMG Investment Management Internal Orders as Investment Measures Master Data Assets under Construction Define Asset Classes

Here we define a separate Asset class for Asset under construction which is used specifically for Investment measure.

Important note: You cannot manually create asset under construction under this class using transaction code AS01. The assets in this class are automatically created when you save the internal order.



Double click

The selection investment measure is very important here.



Click



Double click

Select

Double click



Update the following:-

Remove the deactivation and update the depreciation key.

Click on

You also need to do the remaining configuration for this asset class such as account assignment. We will not cover this here; since this is covered in the Asset accounting configuration cd set.



2. Asset under Construction

2.1 Define Model Orders

IMG Investment Management Internal Orders as Investment Measures Master Data Orders Define Model Orders

Model orders are not orders in the commercial sense, but serve merely as references for creating "normal" orders. Model orders contain default values for the orders in an order type. The Model order is assigned as the reference order in the order type.

When you create a new order, all the fields active in the relevant order type are copied from the model order to the new order

We will create a model order with some defaults.

Double Click



Click



Click on

2.2 Define Order types (KOT2_OPA)

IMG Investment Management Internal Orders as Investment Measures Master Data Orders Define Order Types

An Internal order is created under an Order type. An order type is used for storing various control parameters and various defaults while creating an internal order. It is used for classifying various types of internal orders according to usage for e.g. internal orders for capital WIP and budget tracking. A number range is assigned to the internal order type.



Click on

Take a drop in the field Order category and select 01




Click . You get a message

Click to proceed



Click

Here you can hide the various fields or make it as required entry or only display or available for input. Thus while creating internal order only those fields are displayed and available for input.

Hide some of the fields which are not required

Click on



Number Range needs to be assigned to the internal order type. We will configure internal number range for our internal order type Capital WIP (Budget tracking)

Click on in

Position the cursor first on then




Click

Click



You will find internal order type Z91C in not assigned

You need to assign the order type to the group we created above.

Proceed as follows:-

Position the cursor on

Click on . Note that it becomes blue.

Select the group we created



Click

The internal order type Z91C moves under the group which can be seen as follows:-

Click

Select

Click

Click



Note that the number range created and assigned, is now displayed in the internal order type.

Click on

Also assign the model order to the order type as shown below



Click on

2.3 Define Investment Profile

IMG Investment Management Internal Orders as Investment Measures Master Data Define Investment Profile

The investment profile controls the creation of an asset under construction belonging to the capital investment measure when we create a capital investment measure (i.e. internal order). The investment profile created is assigned to the Model order.



Double click

Click on


Here we assign the asset class 910005 created earlier to the profile



Click on



Double click




Click on



3 Planning and Budgeting

3.1 Maintain Planning Profiles

IMG Investment Management Internal Orders as Investment Measures Planning and Budgeting Maintain Planning Profiles

Double click

Click on




Click

Click twice



Double click




Click on

3.2 Maintain Budget Profile

IMG Investment Management Internal Orders as Investment Measures Planning and Budgeting Maintain Budget Profile

In order to allocate budgets to your orders, you need to create a user-defined budget profile, or use one provided in the system. The following parameters are relevant for order budgets:



Whether availability control runs against annual or overall budget

The activation type controls availability control. There are three activation types: 0 = Cannot activate This activity type may cause an already active availability control to be deactivated. 1 = Automatic activation when budget is assigned You need to maintain at least one tolerance limit for the budget profile. 2 = Background activation when percentage of consumption is exceeded You need to enter a Percentage of consumption in background activation. The percentage of consumption represents the relationship of committed funds to the budget as a percentage. You need to maintain at least one tolerance limit for the budget profile to have the system check the posting.

Double click

Click on

Take a drown in the field



Click

You get a message



Click

Click on

Click back twice



Double click




Click on



3.3 Define Tolerance Limits for Availability Control

IMG Investment Management Internal Orders as Investment Measures Planning and Budgeting Define Tolerance Limits for Availability Control

Availability control can help you recognize possible budget overruns in time and can automatically trigger different actions. You configure availability control for each budget profile. You can define one or more tolerance limits for the different activity groups within a budget profile. When these tolerances are reached, you can have the system trigger specific actions (warning, warning with Mail, error message). Enter activity group ++ to define the tolerance limits for all activity groups. This activity group is designed to simplify data entry and is particularly useful if you do not want to define a separate tolerance limit for each group.

In addition to a tolerance defined for "all transaction groups", you can define a limit for a particular transaction group. This additional tolerance limit has priority over the "general" limit.

Here we will specify usage variance in % i.e. 85%. If the spending exceeds 85%, system will give a warning to the user.

We can also specify absolute figures.

Click on

Take a drop down in Tr.grp

Take a drop in Act




Click on



4 Settlement

4.1 Maintain Allocation structure

IMG Investment Management Internal Orders as Investment Measures Settlement Maintain Allocation Structures

An Allocation structure comprises one or several settlement assignments. An assignment shows which costs (origin: cost element groups) are to be settled to which receiver type (e.g. cost center, order and so on) You have 2 options:- You can settle to a settlement cost element or settle by cost element i.e. settle using the original cost element.

We will use settle by settlement cost element.

Select

Double Click

Click on




Select

Double Click




Double Click



Click on




Click on

4.2 Maintain Settlement Profile

IMG Investment Management Internal Orders as Investment Measures Settlement Maintain Settlement Profile

Here we define a range of control parameters for settlement.



Double Click

The allocation structure Z9 created earlier is assigned to the settlement profile as can be seen below:-



Click on

Click twice



Double click




Click on



4.3 Maintain Number Ranges for Settlement Documents

IMG Controlling Internal Orders Actual Postings Settlement Maintain Number Ranges for Settlement Documents

You should define separate number range intervals for settlement documents for each controlling area.

Click Group Maintain

Click Group Insert




Click

Click

Click



Select

Click

Click on

5 Internal Orders as Investment Measures

5.1 Define Capitalization Versions

IMG Investment Management Internal Orders as Investment Measures Capitalization Values per Depreciation Area Define Capitalization Versions

The Investment Management System uses capitalization keys to perform a settlement of costs from a capital investment measure that require capitalization, and those that do not require capitalization.

This settlement is specific for each depreciation area.

Thus you could decide the portion of costs you want to capitalize to certain specific depreciation areas.



Double click

You will find that there exists already some capitalization version, which are copied when you copy and create the new chart of depreciation.



Delete the above entries and create fresh capitalization version.

Select the existing entries as shown below:-

Click

Click on

Click on




Click on

Click Back twice



Double Click



We now assign the capitalization version to each depreciation areas.




Click

Click on

4.4 Maintain Capitalization Keys

IMG Investment Management Internal Orders as Investment Measures Capitalization Values per Depreciation Area Maintain Capitalization Keys

The capitalization keys are used to specify that certain cost elements in certain depreciation areas of the asset under construction are not capitalized (either wholly or in part). These portions of costs that are not capitalized are periodically cleared as non operating expense. The system transfers the acquisition and production costs, which do require capitalization, to the asset under construction.



The capitalization keys created here are updated in the master data of the investment measure under (Control data). You can also specify a capitalization key as a default value in the asset class for the automatic creation of assets under construction. This asset class is entered in the investment profile of the investment measure.

We will create 3 capitalization keys based on the 3 following scenarios:-

1) Capitalization required in all the 3 depreciation areas Parent, Local and Tax reporting

2) Capitalization required in only parent reporting which means expense out in local and tax reporting

3) Capitalization required in only local and tax reporting which means expense out in parent reporting

Double Click



Click on


Click on

Click



Double Click

Click on



Assign the capitalization key Z91101 to depreciation area 1, area 30 and area 70.




Assign capitalization key Z91102 to depreciation area 1, 30 and 70.

Please note that although the assignment is done to area 30 and 70 the required to cap % is kept blank. These entries are required by system so that no capitalization is carried out to area 30 and area 70.



Assign capitalization key Z91103 to depreciation area 1, 30 and 70.

Please note that although the assignment is done to area 1 the required to cap % is kept blank.

This entry is required by system so that no capitalization is carried out to area 1.

Click on

Click Back



Double Click

Here we will not assign any default capitalization key, since users should update it manually in the investment measure.



4.4 Determine Accounts for Non operating Expense

IMG Investment Management Internal Orders as Investment Measures Capitalization Values per Depreciation Area Determine Accounts for Non operating Expense

Here you assign the GL accounts for capitalization differences (non operating expense) which are area-specific. The account must be assigned to asset class for capital investment measures.

Select

Double Click

Select

Double Click



Double click




Click




Click

Click on



Scenario 1:

Capitalization in all three books (Parent, Local and Tax Reporting)

Transaction code: K001

Create Internal order

Click



Now Update the following:-



Click

Click on



Click on



Now update the capitalization key



Click



Click on

The order is created; display the order using tcode KO03

Click



Click



Post costs on internal order



Click on



Create final asset

Click



Click



Click

Click on



Update this asset in the Internal order settlement rule



Click




Click on



Settle the cost from the internal order to the AUC first

Transaction code: KO88

Uncheck



Click



Click

Click

Click



Click

Click



Double click

Click



Double Click



Now settle to the final asset.

Click



Scenario 2:

Capitalization only in Parent reporting (expense out in local and tax reporting)

Update the capitalization key Z91102 in Investment measure AUC in the internal order creation as follows:-



Create final asset as shown below



Click



Update the depreciation key



Click

Click



Click

The settlement rules are automatically created as shown below:-



Click on



Post costs on the internal order

Click on

Settle the internal order to the final asset



Click



Let us check the asset postings on the AUC

Click



Double click

To see the posting in parent depreciation area



Double click



As can be seen above, the postings from AUC are transferred to the Final asset.



Now click area 30 to see Local reporting

There are no values seen in Local reporting depreciation area. Let us check the entries that have been posted here.

Double click



As can be seen above the values posted here are expensed out to GL code 466020

Double click



As can be seen above nothing has been capitalized to final assets, since the entries are being reversed.

Similarly let us check depreciation area 70 for tax reporting



There are no values seen in Tax reporting depreciation area. Let us check the entries that have been posted here.

Double click



As can be seen above the values posted here are expensed out to GL code 466020

in the final asset



Click



Double click

Let us check depreciation area 30

Click



Double click



Click



Double click

Scenario 3

Capitalize only in area Local and Tax reporting only and expense out in Parent reporting

Create Internal order and the Final asset with capitalization key Z91103



Click on

Post costs on the internal order



Do a full settlement to the AUC and final asset



Check the AUC Asset

Nothing has been posted in the parent reporting depreciation area 01

Let us check the entries that have been posted.

Double click



As can be seen above the capitalization costs have been expensed in parent reporting.

Now let us check the local reporting depreciation area:-

Click

Double Click



As can be seen above the values have been capitalized to the AUC

Double click to check the settlement to the final asset from the AUC.



Click



As can be seen above the values have been capitalized in the AUC

Double click to check the settlement to the final asset.



The asset values are now capitalized to the final asset.

Thus capitalization keys play an important role in capitalization and helps in allocating costs portion only to specific depreciation area depending on the requirement of each depreciation areas.

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44469029 SAP Internal Order Investment Measure Configuration

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