Account Assignment-Asset development

[former_member218048]

Here we are developing assets inside the company.

I know that for booking expenses, in PR, we can give an account assignment as Internal Order or an Asset. I am unable to understand what is the difference in using Internal order or an asset (AuC) directly in the account assignment for the asset development ?

If we use internal order, we have to settle it to the Asset. But if we use Asset, we need not do the settlement process. Then what is the advantage of using either of these two account assignment ?

[former_member218048]

thanks for the inputs.

[Former Member]

Hi,Internal Order as investment measures allow you have the full functionality of Overhead Cost Controlling - Overhead Orders(eg status management,commitment management etc ). Planning,monitor,budgeting. Also IO is used if capital investments are not capitalized directly, due to their scope.

[former_member218048]

thanks. When using an internal order for asset development, should I use an overhead order or an investment order ?

What is the difference in scope of them ?

[ajaycwa1981]

Hi

It is advisable to use Investment Orders...

You can collect all the expenses in an IO and then settle it on an Asset..IO allows you to control the budget and stop expense booking / PRs if budget is exceeded

Even if you choose an AUC instead of IO, you still need to do the settlement from AUC to Final Asset...

br, Ajay M

[former_member218048]

What if I use an overhead order instead of an Investment order ?

[ajaycwa1981]

Hi

Absolutely no harm... You can use it

Investment order is used in the case of Statistical IOs specified in asset master record or When you use IM (Invt Management)

For real IOs w/o IM, you can use Overhead orders

br, Ajay M