ACCOUNTING ENTRIES FOR ASSETS UNDER CONSTRUCTIONS:

1. 01.04.06 to 31.03.2007. ( Asset Under Construction ).

CWIP Exp (P&M) A/c Dr 5000
To Bank A/c 5000
(For Exp incurred for CPWIP)

2. Capitlized on 01.04.2007.
Plant & Machinery A/c 5000
To CWIP Exp (P&M) 5000
( being Asset has been capitalized on 01.04.2007)

In SAP you can settle AUC in two ways

Ist Method
1. Create AUC under 4000 asset class
2. Make postings to AUC through f-90
3. Make distribution rule using T Code AIAB
4. Settle the AUC using TCode AIBU
In step (3) you can distribute the amount spent on AUC to two or more assets otherwise you can give only
one asset and then settle the AUC through AIBU.

2nd Method
1. Create an investment order (KO01)
2. System automatically creates AUC under asset class 4001
3. Enter distribution rule in the same screen ( like in the (3) above) or just give a cost center or an asset.
4. Post payments through F-90 and give the order number in that screen
5. Then settle the AUC using TCode KO88