Capitalization option in A/P invoice

[SE-Yang]

In fixed asset process in SAP B1,

Learning Hub materials says that The user can choose to generate the capitalization document directly, or to automatically generate it from the A/P Invoice.     

Can we choose not to generate Capitalization document automatically when we make the A/P Invoice for a new fixed asset ?   Then how to choose ?

[jitin_chawla · Accepted solution]

Hi,

If you create an AP Invoice for fixed asset item, then capitalization will be created for the same. The FA item is not a normal item which will create records based like this. It either needs to be capitalized or when the same is purchased via the AP Invoice, then the capitalization starts at that time.

If you create subsequent AP Invoice for FA item, then it will be considered as sub-acquisition and accordingly added in the FA value for depreciation.

Kr,

Jitin

[SE-Yang · Accepted solution]

Thanks jitin, now i understood the process with your explanation. And i also found the asset value date input field in the accounting tab in the AP reserve invoice which, i think, can defer the actual capitalization start date (depreciation start) . Is it right ?

[hdolenec]

No, you cannot choose to not generate capitalization when creating AP invoice for fixed asset. You need an alternate solution.We usually do one of the following with our users:

• Create AP invoice for FA, but on asset master data set depreciation type that does not perform depreciation. You will have a capitalized asset that does not accumulate depreciation. When you want to start depreciating it, change depreciation type to whatever you need and change depreciation start date.
• Create UDF on AP invoice in which users can choose FA code. Users will create AP invoice as service type document, and choose FA in this UDF. We also implement a report that will show the sum of AP invoices for this asset, so that users can capitalize it manually when needed.