AUC Budget

[xyz_789]

Hallo Guys,

I am facing the following issue: I would like to implement budget control for ongoing projects that are not yet completed (i.e., AUC) to ensure that the budget is not exceeded. My current plan is as follows:

1. Creation of an internal order.

2. Allocation of the budget amount in the created internal order.

3. Creation of an Asset Under Construction (AUC).

4. Creation of a purchase requisition or purchase order (PO) with A account assignment.

5. Attempt to create a PO with an amount exceeding the budget limit.

6. Final settlement of the AUC to the ultimate asset value.

With this approach, it should be possible to perform budget control through an internal order (with an error if attempting to exceed the budget). Alternatively, one could use WBS for this purpose, but I wanted to verify this procedure first.

However, I do not understand how to implement budget control similar to an internal order when booking the AUC directly to the target account instead of as an internal order. Is it even possible to conduct such control without an internal order? If yes, what would be the procedure?

Thank you in advance for the helf

[Paulo_Vitoriano · Accepted solution]

Your budget control for the AuC scenario should be on the WBS-element.

The budget control on statistical internal orders will be normally used for "Ready to Use" and direct purchased assets and that is outside of a PS scenario.

[xyz_789 · Accepted solution]

Ah, okay, I understand. So, once an asset is "ready to use", I would rather use Internal Order, and when dealing with projects where additional purchase orders often occur, it's more inclined towards WBS? Did I understand that correctly?

[Paulo_Vitoriano · Accepted solution]

Hi Sebastian,

If the company primarily buys ready to use assets you can give a second CO account assignment object on the PO to the A position and AVAC will take place on the CO object by means of statistical posting of the BS account.

If the company primarily goes for the construction, assembling, whatever else with multiple providers plus internal labor, then the WBS to AuC settlement is a preffered approach.

In my opinion having both processes can be an overcomplication, the second process variant is more universal option as even ready to use assets can go through P&L first and WBS posting with consequent AuC settlement.

Regards,

Paulo

[ajitkumar]

it should be possible by assigning a statistical internal order to the AUC and the purchasing document have both in the account assignment

have a look at this blog

https://blogs.sap.com/2015/01/03/budget-on-asset-purchase/

[xyz_789]

Alright, many thanks for the feedback. I'll take a look at the post!