Assets Under

Construction using
SAP Project
Systems

Lunch and Learn 01/15/2019

James Losack, Rajesh Lothukunta, Setu Shah, Ankur Singh and Tripta Gopal
Introduction
Examples of Assets under Construction (AUC) include building a new plant or R&D

AUC (A.K.A. Capital Investment) Projects Types of Projects

Projects where you use your investment capital to acquire

assets or creation of assets for the company. Investment
Management is usually used in major corporations to
distribute budget across multiple projects. Ex: Corporate
offices in large companies will use Investment Management
to distribute budget to various companies/plants from diff
locations for their expenses. It is used to create a Project
as Capitalization. (AUC to Asset), these usually do not have
any revenues. Ex: Building a new plant, acquiring
companies

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Project System – Project Structuring

Levels in a Project Structure

 Project definition
 Work breakdown structure
 Network
 Activities
 Milestone

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Introduction
Capital Projects follow the typical high-level project lifecycle

High Level Project Lifecycle

1
Define the
Execution

3
Project
and
Structure
monitoring
(Template)
all project
activities

4
Close-out

2
Planning
Costs and Project
Budget and
Release Financial
Entries

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Introduction
Business Process Flow – Capital Projects
Planning Costs / Project Execution, Project
Project Master Data
AUC master data Budget Release Monitoring and Close-Out
Creation
creation Control (Settlements)

Project Manager Creates a Update and Revise Project Create purchase Create Fixed Asset master
Business has a Planning Costs detail by Costs Plan before requisitions, work orders, data
requirement for a new Costs Elements or WBS Releasing the Annual / purchase orders against a
Investment Program Elements Overall Budget WBS Element
Settle Project costs to the
Asset under Construction

Business prioritizes their Copy the Approved Require some tolerance Capture and post actual
Investments during the Planning Costs to a level (percentage or data for materials and
previous Fiscal Year and Budget in Preparation for dollar) to determine cost services purchased Settle AUC cost to the
decides the Overall Approvals deviation. This set final Fixed Assets
Planning Costs. tolerance could vary
Scope is approved and based on project types or
Project Manager assigned divisions. Standard
Asset under Construction Reporting on all Projects Close the project (status
tolerance -10%
master data creation and and WBS Elements change from TECO to
Settlement rule creation Closed)

Project Manager Creates

the Cost Structure Ability to create and
Breakdown by category budget for multi-year
(using the a project projects and Request for
template) Project Manager: Budget Supplements
He plays an important
role during the Planning
Phases

Red box – Out of the System

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Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Step Requirements T-Code
Using Project Builder, to be able to create a Project Definition and its WBS
Create Project CJ20N
Elements.
Project To be able to plan costs for the WBS Elements and total up to the Project
CJ40/CJR2
Planning Definition. (Yearly/Overall)

Project To be able to maintain budget for Project and its WBS Elements. (Yearly/Overall) CJ30
Budgeting Once the budget is approved, to be able to release the budget CJ32
To be able to release the lowest level WBS Element and then the Project
CJ20N
Definition. This will create an AUC (Asset Under Construction)
To be able to create purchase orders to buy material from external vendors.
ME21N
Release PO
To be able to post Goods receipt for the Purchase Order MIGO
Project
Execution To be able to post Invoices to Vendor MIRO
To be able to post invoices to Vendor which are not related to PO FB50/FB60
To be able to Enter Time sheet for the resources CAT2
Once the timesheet is approved, to be able to transfer those approved hours to
CAT7
controlling (CO)
To be able to create Final Asset AS01

Project To be able to settle the project WBS Element to AUC CJ88

Settlement To be able to generate settlement rule for the project WBS Element CJ20N
To be able to settle AUC to Final Asset CJ88
Reporting To be able to display actual cost line items CJI3
To be able to display Plan/Actual/Commitment S_ALR_87013533

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Create Project

Project Planning

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Maintain Budget

Release Budget

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Release Project

Create Purchase Order

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Goods Receipt for PO - MIGO

Invoice Purchase Order

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Post Invoice to Vendor (Not part of PO)

Enter Time Sheet

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement

Transfer Cost to CO

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Create Final Asset

Settle WBS to AUC

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Accounting Documents for the WBS Element

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Settlement Rule for the WBS Element

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Settle AUC to Final Asset

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Display Actual Cost line items

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 Capital Projects
Project Project Project
Project Creation Reporting
Budgeting Execution Settlement
Display Plan/Actual/Commitment

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