There can be two types of scenario here :

1. In House Manufacturing and creating the Asset

2. Extenal Procurement and creating the Asset
3. Sometimes there can be mixture of both.
You can check the following process:
1) Create a Capital Investment Order with investment profile
2) Create a Purchase Order with account assignment category F
3) Assign the Purchase order to the Capital Investment Order.
4) Goods receipt and posting into the Capital Internal Order
5) Settle Capital investment order to AUC
6) Settle AUC to the Asset.
However Capital Order - AUC process will be as follows:
1. Create capital investment order with AUC
2. Enter cost element plan for capital order
3. Purchase requisition approval with workflow approvals
4. Solicit bids from external vendors (RFQ - Request for Quotation)
5. Post invoice to capital investment order
6. Enter supervisory time (CATS) to be included in asset valuation
7. Monitor order – actual / plan variances, completeness, cost validation
8. Asset under construction settlement
9. Complete order – asset costing is complete and in service
10. Update final settlement rule
11. Execute settlement – capitalize asset
If it is the purchase of a fixed asset, then the general ledger account that is assigned to the
account determination that is linked to the asset class that the asset belongs to is defaulted.
If you are not purchasing fixed assets or inventory, then the system will use the ‘Account
Modification’ that is assigned to the ‘Account Assignment Category’ which is specified in the
purchase order. This Account Modification is linked to a general ledger account in the account
determination table (transaction OBYC).