Can you please clarify me that where do we create AUC ?i have been in dillemma that in AS01 we only create assets which are finalaised,infact fixed assets.but if we run asset history then we can see certain internal orders which are not settled with AUC numbers.with that AUC number we can see the asset details in AS03.?
That is correct. Please review also the documentation in http://help.sap.com/ as well as refer to the F1 Documentation of field 'Manage AuC' (INVMA) in transaction OITA.
You need to ensure that the customizing for Internal Orders as Investment Measures in section 'Investment Managment' in IMG is correctly and fully set up.
You can create an Asset under Construction (AuC) in AS01 by using an asset class for Asset under Constructions (which depends on settings in transaction OAOA under 'Status for AuC' for the Asset Class). As soon as you enter an Asset under Construction Asset Class in AS01 the system will recognise that you are creating an Asset Under Construction.
Any AuC can be reviewed in AS03. The way you know it is an AuC is to check the Asset Class it is created in, also, generally AuC's do have a depreciation key assigned that does not post depreciation (depreciation key 0000).