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AUC is Asset under construction where some assets are in construction phase and cost needs to capture
through internal order for the time being. Once asset is fully completed then cost would be transferred to
another cost object (E.g. Cost center) and settle with final asset.
E.g. ABC company constructing building for their office. While construction many expenses are attached to it.
Till the time it is created we can not charged it in Building account hence we need to create AUC account where
cost will be stored.
AUC (FACTORY BUILDING)
ALL CAPEX EXPENSES
-construction material
-labor
-general exp
Create a internal order ( book all expenses
to internal order ) in p&l account
Transfer all costs from internal order to the
main asset using settlement (shown at the
asset side of the balance sheet under AUC)
Capitalize the asset/ start charging dep
Book dep to p&L
Create an order type in KOT2 for asset under construction
Create a GL in fs00 for AUC and extend to cost element by selecting cost element category as 22
Then create expenses GL for AUC and extend them to cost element by selecting category 01
Create a allocation by giving settlement with cost element, select receiver category Asset here and
choose the settlement cost element GL category 22
Then create a new settlement profile in k088 and select the defauklt object type as asset and assign
the allocation structure you created above here and save
Then assign that above settlement profile in order type in kot2 and save
Create a internal order for building in ko01 by selecting the Auc order type you created
Post the GL transactions by selecting the internal order for AUC, I booked the costs here for the
previous period, current period in the system was 12.07.2022
ORDER line item report in kob1
CREATE A AUC ASSEST CLASS IN investment Management>Internal Order as Investment
Measure>Master Data>AUC)
Then create an asset by selecting that asset class in AS01
Then define the depreciation key as no dep in OAYZ
Then define the settlement in order Ko02
Then run the settlement in K088
After that u can observe all auc costs are transferred to main asset in tcode aw01N
Balance display fs10n, capitalization of expenses
Further you want to settle cost s from AUC asset 4 to the normal asset 5, so I created a new asset in
aso1 with asset class
Create new settlement profile in tcode ok07
And then assign that settlement profile in cocd in tcode OAO2
THEN go to TCODE AIAB and give your AUC asset number 4 and execute it and go to edit and define
the settlement rule
Then go to TCODE AIBU select the AUC asset number 4 and execute
Now you can observe the AUC asset 4 is settled against normal asset 5, that is all costs are
transferred form AUC asset 4 to New asset 5
Now in asset explorer AW01N the for AUC asset 4 the acquisition value is ZERO, because it
transferred all costs to new asset 5 as acquisition cost
Now here for asset 5 you can observe there is a acquisition value because we transferred this cost
from AUC Asset 4 and also depreciation has been calculated because now we fully capitalized the
asset and we started using it
