#COE #BA01 Cost Center on Asset Acquisition credit

[RyanMuller]

Hello,

When we get supplier invoices related to expenses to be capitalized our AP Coordinators enter them against a asset clearing account and the have a cost center. This cost center is required for workflow, management reporting, and expense tracking. 

When our Asset Accounting teams pull the posted expenses against that account later in the month and create the associated asset master data and post the asset acquisition using that clearing account as the offset we've found that the posting is missing data and is an offset only based on the amount and qty and doesn't appear to be offsetting in reporting. The cost center in the expense invoice line is ultimately the cost center used in the asset master data.

As an example:

Invoice 12345 in Company Code US01 for a Laptop: 

GL Account	Amount ($)	Debit/Credit	Profit Center	Cost Center
Accounts Payable	2000	Credit	100
Asset Capitalization Clearing (Expense)	2000	Debit	100	10011

Laptop Asset 12345 in Company Code: US01, Asset Class: Computer Hardware - Acquisition posting

GL Account	Amount ($)	Debit/Credit	Profit Center	Cost Center	Fixed Asset	Asset Class
Asset Capitalization Clearing (Expense)	2000	Credit	100			Computer Hardware
Computer Hardware (Fixed Asset Acct)	2000	Debit	100		12345	Computer Hardware

When we go to report at a cost center level we have $2000 expense still appearing in reporting even though it should be offset which is a big problem for our org. How can the cost center be accurately captured to show the true expense offset which ties thru reporting? This cannot be a unique problem to us and appears primarily in acquisitions but also the master data coding gets dropped in areas like retirements with sales (on the sale piece tying it to the asset).

Thanks in advance for your help,

Ryan

[1825]

There’s proposal that details steps are as below.

Example data:

• Company code: 1310.
• Supplier account: 1000122, reconciliation account is 21100000.
• Asset Capitalization Clearing (Expense) GL Account: 61003000.
• Cost center 13101101
• Asset master data: 500019-0

Process steps:

1. Create supplier invoice for Account payable with APP “Create Supplier invoice”, and the result is as below.

2. Create new asset master data.

3. Post the asset acquisition via app “Clear outgoing Payment-Manual Clearing”.

4. Check post asset acquisition value in asset master data.

5. Check the report for GL account “61003000” line items as below.

6. Clear GL account “61003000” if it’s needed.

[RyanMuller]

Thanks for the response, why are we having to use a clearing application to post an asset acquisition with the cost information as opposed to the asset acquisition app. How would this work for retirements with sales and other areas where the asset posting has incomplete object postings?