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Mahmoud Elnady
January 3, 2015 3 minute read
Budget on Asset Purchase
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27 Likes 9,232 Views 38 Comments
Dear SCN Members
Most of the companies intend to apply budget to prevent over spending on assets purchased , which constitute
major part of the companies annual expenditure.
this expenditure is classi ed under Capital Expenditure ..so all companies would put good control on both asset
purchasing process and safe guard.
i will explain in this document how you can purchase an asset using preventive budget. there are two common
scenario for asset purchasing using budget
– investment measure.
– Statistical Budget.
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 1/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
In this document i will focus on option no. 2
We have two available alternative to purchase the asset:
Purchase asset rst as asset under construction , and then capitalize after completion on related asset.
Direct Capitalization of asset.
To apply both scenario you have to follow both steps:
1. Create Screen Layout for asset under construction & required asset classes that you intend to purchase
asset and capitalize directly without accumulating the cost and capitalize it in later stages.
Menu Path: Spro-Financial Accounting (New)-Asset Accounting-Master Data-Screen Layout-De ne Screen
Layout for Asset Master Data
you choose the required asset classes ( or Asset under construction ) to activate cost order in the screen layout
as below:
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4/13/2019 Budget on Asset Purchase | SAP Blogs
click on Logical Field Groups on the left screen and choose Time-dependent data and click on Field Group
Rules, then change the status of the cost order (21) from No to Opt ( Optional )
and click on both Main No and Sub no. to allow this eld on both asset main and sub number.
repeat the above steps to all asset classes that you intend to use in this scenario when you will apply both
options.
2. Create Asset Class ( Asset Under Construction ) allowing line item settlement
follow the menu path :
Spro-Financial Accounting (New)-Asset Accounting-Organizational Structures-Asset Classes-De ne Asset
Classes
T-code : OAOA
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After creation on new asset under construction classes.we will move to MM area to activate the internal order
eld in account assignment A which will be used while asset purchasing.
T-Code : OME9
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now you need to check you internal order con guration , if it has budget pro le and apply statistical posting for
asset.
Apply Statistical Posting T-Code OAK7 ” Create cost element Type 90″ or from KA01
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Check your internal order budget pro le
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4/13/2019 Budget on Asset Purchase | SAP Blogs
T-Code : KOT2
Alert Moderator another document describing how to create a budget pro le and activate the availability
i will contribute
control..
now to thetags
Assigned con guration process has nished you now need to know how to apply the scenario
Create Internal order T-Code KO01
FIN Asset Accounting | FIN (Finance) | asset | asset accounting | assetaccounting |
Assign Budget amount in the created internal order T-Code : KO22
View more...
Create Asset Under Construction T-code : AS01 and assign the internal order in the asset number in time
dependent tab
Related
CreateBlog Posts requisition or purchase order on and use the account assignment A that will allow you to
Purchase
insert the asset number and internal order ..
tryunder
Asset to create the PR through
Construction / P.O with
MM amount higher than the budget limit .. you will have a message informing you
By that budget
Former exceeded
Member , Aug 01,and
2016you will not be able to save the PR/P.O
Asset Valuethe
Settle Date Determination
AUC Whenusing
to Final asset Posting Through
T-code Purchase Order
: AIAB
By Former Member , Apr 07, 2016
Hope
Changethis document
log of willdata
asset master help to put more control on Asset purchasing procedures..
By George Lin , Apr 29, 2015
Practical Note:
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 7/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
Related Questions
if you are moving from the investment measure to the above scenario and keep the investment measure
running till you nish the open orders related to it , you should not create cost element to the AUC GL for
investment measure and create another AUC GL for the New cycle and create cost element Type 90 for it.
Budget check at Technical Clearing Account (New Asset Accounting)
By Former Member , Nov 03, 2016
Regards
Asset Capital lease integration with Purchase order / WBS
By KAPIL MEHTA , Sep 05, 2017
Mahmoud El isNady
Asset explorer not updated after MIRO
By Gavin Monteiro , Jan 27, 2018
38 Comments
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Osvaldo Lopez
February 4, 2015 at 7:46 pm
Thank you very much for this doc.
Regards,
Oswald
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Mahmoud Elnady | Post author
February 4, 2015 at 7:48 pm
Hi Osvaldo
Thanks for your valuable comment..
Regards
Mahmoud El Nady
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Former Member
February 22, 2015 at 12:47 am
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 8/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
Very good.
Congratulations on the document!
Artur
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Mahmoud Elnady | Post author
February 22, 2015 at 3:17 am
Thanks Artur for your postive feedback
regards
Mahmoud El nady
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SAP FiCO
February 22, 2015 at 3:47 am
Teslam El Ayaadi
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Mahmoud Elnady | Post author
February 22, 2015 at 3:54 am
Thanks Mr. Emad Hope it helps you..
Regards
Mahmoud EL Nady
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SAP FiCO
February 22, 2015 at 4:00 am
Valuable knowledge. Keep it coming.
Like (0)
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Former Member
March 17, 2015 at 11:43 am
Good and simple document.
Like (0)
Mahmoud Elnady | Post author
March 17, 2015 at 11:48 am
Thanks Mr. Sudhir …
Regards
Mahmoud El Nady
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Former Member
June 27, 2015 at 3:34 pm
Really it’s very helpfully , thanks alot mahomud
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Mahmoud Elnady | Post author
June 28, 2015 at 6:47 am
Hi Emad
Thanks for your positive feedback.
Regards
Mahmoud EL Nady
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https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 10/19
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Former Member
July 6, 2015 at 11:48 am
Thanks Mr. Mahmoud;
Very helpful document where I was searching for such scenario to implement it at my customer site and it
strongly tted my requirement.
Best regards;
Like (0)
Mahmoud Elnady | Post author
July 6, 2015 at 11:50 am
Hi Ahmed
Thanks for your encouraging feedback.
Regards
Mahmoud EL Nady
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Former Member
August 13, 2015 at 5:51 am
Thanks for sharing this wonderful document.
Like (0)
Mahmoud Elnady | Post author
August 13, 2015 at 6:26 am
Hi Sam
Your feedback always valuable to me.. Thanks
Mahmoud EL Nady
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https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 11/19
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Former Member
August 15, 2015 at 11:05 am
Nice Document. Thanks a lot for sharing.
Like (0)
Mahmoud Elnady | Post author
August 15, 2015 at 11:12 am
Hi Gidavari
You are welcome.. Thanks for your feedback..
Regards
Mahmoud EL Nady
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Hidyath pasha
November 14, 2015 at 9:17 am
Hi Mahmoud EL Nady
Simply superb hope we get second document soon
Like (0)
Mahmoud Elnady | Post author
November 14, 2015 at 10:21 am
Thanks for your encouraging Comment..
Regards
Mahmoud LE Nady
Like (0)
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 12/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
Ibrahim Gad
November 18, 2015 at 3:22 pm
Very helpful demonstration,
I was looking for a document like this organized and clear.
We are using the same scenario in addition to fund management.
So, by combining them we can control asset class “FM” and the asset itself “IO”.
Thanks again and looking forward to your upcoming Doc.
Ibrahim
Like (0)
Mahmoud Elnady | Post author
November 18, 2015 at 4:42 pm
Thanks ibrahim .. your feedback is much appreciated. . also you udea about combining FM with budget control
will impose more control option to assets acquisition process. .
Regards..
Mahmoud el Nady
Like (0)
Former Member
December 31, 2015 at 12:15 pm
Nice document. It is really helpful.
Like (0)
Mahmoud Elnady | Post author
December 31, 2015 at 12:25 pm
Thanks Chirag for your positive feedback.
Regards
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 13/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
Mahmoud L Nady
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Former Member
December 31, 2015 at 12:52 pm
Good document information and easy understandable.
Regards,
Vivek
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Mahmoud Elnady | Post author
December 31, 2015 at 12:54 pm
Hi
Thanks Vivek for your encouraging feedback..
Regards
Mahmoud EL Nady
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Adityaz Febriandri
January 18, 2016 at 6:39 am
Very good document, Thanks
Like (0)
Mahmoud Elnady | Post author
January 18, 2016 at 7:08 am
Thank you very much Adityaz..
Regards
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 14/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
Mahmoud
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Former Member
April 4, 2016 at 6:48 am
Hello Mahmoud,
rstly am appreciating you to take initiation to have this document.
and also kindly let me know how purchase an asset with investment measure and what are the prerequisites to
do for AUC with Investment measure.
Regards
Arun
Like (0)
Mahmoud Elnady | Post author
April 4, 2016 at 6:55 am
Hi
Thanks Arun for your positive feedback.. if you would like to know the investment measure steps , you may
refer to below document
SAP Best Practices Baseline Package
document 164
Regard
Mahmoud EL nady
Like (0)
Former Member
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 15/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
April 4, 2016 at 6:56 am
Hello Mahmoud,
Very Good document. Just one clari cation, if we are to use budget check against WBS and asset
capitalization via the same, the only change would be that instead of internal order, we are utilizing WBS eld
in AS01 and WBS related budget pro les for checking the budgets. Is it right?
Like (0)
Mahmoud Elnady | Post author
April 4, 2016 at 11:02 am
Hi Parshanth
Thanks for your positive comment.. I am not able to tell you that if you use WBS it will give you same result ,
but it seems logically possible ..you may try iy and feed us back with the result ..
Thanks
Mahmoud
Like (0)
Former Member
April 4, 2016 at 8:52 am
Hello Mahmoud,
Thanks for the information. As i just know the process of asset procurement but when am executing in system
getting di erent issues. the asset cycle ( through MM ) which am doing is
1) PO with Acc assignment ‘A’ by entering asset number.
2) Goods Receipt
3) Asset Transfer from warehouse AUC Project AUC
4) Settlement Execution AIAB
5) Dep run
For the above process i need a back end con guration.
Could you please assist me for executing the above process.
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4/13/2019 Budget on Asset Purchase | SAP Blogs
will be more thankfull…
Regards
Arun
Like (0)
Mahmoud Elnady | Post author
April 4, 2016 at 11:04 am
Hi Aurn
i believe that me document is covering your mentioned required steps .. could you try it and inform me back if
it work successfully with you or not?
Regards
Mahmoud EL Nady
Like (0)
Former Member
April 4, 2016 at 11:14 am
Hello Mahmoud,
Ok sure. will revert you back if i get any queries..
Thanks
Arun
Like (0)
Former Member
May 18, 2016 at 7:59 am
Hi
Nice document. Thanks for beautiful explanation.
https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/ 17/19
4/13/2019 Budget on Asset Purchase | SAP Blogs
Regards
Karthi
Like (0)
Mahmoud Elnady | Post author
May 18, 2016 at 8:30 am
Hi
Thanks for your Positive Feedback..
Regards
Mahmoud
Like (0)
Heba Okby
January 29, 2017 at 4:30 pm
Really l proud because i work with you
Like (1)
Mahmoud Elnady | Post author
January 30, 2017 at 8:12 am
Hi Heba
Thanks so Much .Appreciated .
Regards
Mahmoud
Like (0)
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