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asset and internal order

Former Member
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Hi Friends

Where do we link Asset and Internal order



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Answers (4)

Answers (4)

Former Member
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The capitalization of an asset under construction is an accounting procedure that is required when an in-house produced asset is completed. It also can apply for Projects, programs, buildings, complex assets,.

The acquisition and production costs that were collected on the Asset under Construction are transferred to another asset. From the perspective of the balance sheet, this transfer corresponds to a transfer between two balance sheet items "Assets under Construction" and another balance sheet item (also included in Fixed Assets).

Assets under construction are acquisitions to fixed assets that are not permitted to be capitalized and depreciated immediately. The common way of handling these kinds of acquisitions is:

--> Collect the costs on an independent asset under construction.

The internal order supports action-oriented planning as well as monitoring and allocation of costs.

The internal orders can be used to:

• Receive costs. These costs can be then allocated to others objects with ad hoc drivers

• They are used as a destination in the posting with for example a cost centre, but the order in this case is used just as information.

• Hence Account assignment to an order (with allocation cost element) and settlement to the final asset should be done.

Former Member
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You link Internal order and the Asset Via settlement Rule for that order. ALl the IO balances are settled periodically to the asset by the settlemnt rule. This is the link. Use KO88 for settlemnt. IN KO02 you can give the settlement rule by pressing CTRLSHIFTF9.

Take cat as FXA , give the asset and settlement type.

You need to cehck settlement profile aslo.

Reward if useful


Former Member
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In asset master record AS01 Click on time dependent data there field called internal order is there where you can link

If it is usefull please assign points



Former Member
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With in Asset you can maintain - to have control on Asset related expenses.

In case of AUC....Amounts posted to the Internal Order are settled to Asset through the settlement rule (is the link).