CO_PK_CAPEX_Accounting.pdf

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SAP User Procedure
Document name: CO_PK_CAPEX_Accounting.doc

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TABLE OF CONTENTS
1 Managing Capex Orders ............................................................................................4
2 Creating internal orders.............................................................................................4
2.1 Creating internal orders (Capex) ................................................................................................. 5
2.1.1 Create Order: Basic Data screen fields ...................................................................................... 6
2.2 Maintain internal order budget (CAPEX)................................................................................... 7
2.2.1 Maintain Original Budget: Annual Overview screen fields ........................................................ 9
3 Maintaining internal orders......................................................................................10
3.1 Displaying internal orders........................................................................................................... 10
3.2 Changing internal orders ............................................................................................................ 11
3.3 Budget Supplement...................................................................................................................... 13
3.4 Budget return ............................................................................................................................... 14
3.5 Marking orders for deletion........................................................................................................ 16
4 Creating order groups..............................................................................................18
4.1 Creating order groups (Capex)................................................................................................... 18
5 Maintaining internal order groups ..........................................................................20
5.1 Changing order groups (Capex) ................................................................................................. 21
5.2 Displaying order groups.............................................................................................................. 22
5.3 Deleting order groups .................................................................................................................. 24
6 Settling internal orders ............................................................................................26
6.1 Apportioning line items (preliminary) ....................................................................................... 26
6.1.1 Order: Line Item Apportionment for Settlement screen fields................................................... 28
6.1.2 Actual Settlement: Orders screen fields for collective processing ............................................ 28
6.2 Apportioning line items (final).................................................................................................... 29
6.2.1 Order: Line Item Apportionment for Settlement screen fields (final)........................................ 31
6.2.2 Maintain Settlement Rules: List screen fields for final apportioning........................................ 31
6.3 Processing individually................................................................................................................ 31
6.3.1 Actual Settlement: Orders screen fields for individual processing ........................................... 32
6.4 Processing collectively.................................................................................................................. 32
6.4.1 Actual Settlement: Orders screen fields for collective processing ............................................ 35
6.5 Closing internal orders ................................................................................................................ 35
6.6 Reporting on internal orders ...................................................................................................... 36

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1 Managing Capex Orders
Purpose
This procedure describes how to monitor and capture capital expenditure (capex)
Internal orders are created to capture the cost of purchases for a specific project, purpose or
campaign. This allows capital and expenditure amounts posted to the project to be monitored. The
capex amounts are then settled by transferring them to the balance sheet via the asset under
construction (AUC) or to an existing fixed asset. The AUC is linked to the internal order. Capex
amounts can also be expensed to a cost centre.
Internal order groups structure internal orders into a hierarchy for reporting purpose.
Scope
This procedure covers the creation and maintenance of both internal orders and internal order
groups and the settling of internal orders. The procedures does not cover internal order for
purposes other than investment monitoring.
Related Procedure
None
2 Creating internal orders
Purpose
This procedure describes how to create an internal order to manage capex
Scope
This procedure covers the creation of internal orders and the subsequent creation of budget.
Related Procedure
None

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2.1 Creating internal orders (Capex)
About this procedure: Use this procedure when you receive an approved Individual Capex Credit
Application form or approved global budget detailing the asset to use in creating the internal order.
When an order is created it is assigned an order status. The order status determines what
transactions are allowed against an order.
For capex orders there are four system statuses:
• 10 (created) – this allows budgets to be posted against the order but not actuals.
• 20 (released) – orders are assigned this status upon creation. This allows budgets and
actuals postings against the order.
• 30 (completed)- this status allows only line item apportionment and order settlement
transactions against the order
• 40 (closed) – no transactions are allowed except to set and remove the deletion flag.
Orders of this status can only be reset to a complete status or not any lower.
And there are eight user statuses, these user statuses are just for reference currently.
• 20 – Initiation
• 30 – Cancelled
• 40 – Planning
• 50 – Realization
• 60 – Technically Completed
• 80 – Financially Completed
• 90 – Reopened
• 95 – On hold
(these will be used as part of the Pharma Finance Global capex solution)
Responsibility: Assistant Manager Accounts / Manager Accounts
1. Enter KO01 or follow the menu path: Financial Accounting > Controlling > Internal Orders >
Master data > Special Functions > Orders > Create
SAP displays the following create Internal Orders : Initial Screen

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2. Enter 06E0 for MD-Karachi investment orders in the Order type filed and Enter
SAP displays the following Create Internal Order: Master Data Screen
3. Complete the appropriate fields on the general data and posting data tabs. For more
information see 2.1.1.
4. Click Save
2.1.1 Create Order: Basic Data screen fields
Complete the appropriate fields. Fields not in the list below do not require modification.

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Field Value Type
Order Order number (12 digit code)
The following hierarchy should be
followed by MD-Karachi
TB05XXXXXXXX
T = Capex Orders
B = MD-Karachi
XXXXXX = Credit Number
Please ensure that you enter
complete six digits as there are no
automatic checks to control the
numbering.
Mandatory
Short text Description of the order in capital
letters up to 40 characters
Mandatory
Applicant Name of the person who raises the
capex request form
Mandatory
Person responsible Name of the person who is
responsible for capex
Mandatory
Profit Center Profit center where the
depreciation expense is posted
Mandatory
Responsible Cctr Cost Centre where the
depreciation expense is posted.
This is only for information
purpose. System doesn’t transfer
any depreciation Cost Centre from
Internal Order.
Mandatory
Long Text Create long text by clicking on
pencil at end of short text
Optional
Statistical Order Global Credit – Select Statistical
Order
Individual Credit – Leave it blank
Optional
2.2 Maintain internal order budget (CAPEX)
About this procedure: This procedure describes how to maintain budget for capex orders.

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Budgeting > Original Budget
SAP displays the following Change Original Budget: Initial Screen
2. Click button, SAP displays following Change Original Budget: Annual
Overview screen

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3. Complete the appropriate fields. For more information, see 2.2.1
4. Click save button
SAP displays the message “Document 04XXXXXXX posted”
2.2.1 Maintain Original Budget: Annual Overview screen fields
Field Value Type
Overall The overall budget figure for the
Capex
Mandatory
2006 to so on by
year
The budget break-up for the years Mandatory

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3 Maintaining internal orders
Purpose
This procedure describes how to maintain capex orders. This updates the internal order master.
Scope
This procedure covers changing, displaying and deleting orders for internal order. The procedure
does not cover creating internal order.
Related Procedure
Creating internal orders
3.1 Displaying internal orders
About this procedure: Use this procedure to display internal orders to verity the accuracy of the
data in the internal order.
Responsibility: Manager Accounts
Master data > Special function > Order > Display
SAP displays the following display internal order: Initial Screen
2. Enter the order number in the order field and click on
SAP displays the display order: Basic Data screen with the details of internal order.

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3.2 Changing internal orders
About this procedure: Use this procedure when you receive written advice that a change needs
to be made. This procedure details the changes to make to the basic data on the internal order
and whether to change the status of the internal order to completed or closed.
Master data > Special function > Order > Change
SAP displays the following change internal order: Initial screen

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2. Input order no and click enter
SAP displays the following Change Internal Order: Master data screen
3. Make the changes to the fields that are required to be changed.
4. Click Save
Note : If you change the status from 20 (released) to 30 (Completed) only line item apportionment
and final settlement transactions are allowed. You can change the status from completed back to

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released, however, once an order reaches 40 (Closed) status it can only be reset back to
completed status. To change the status, click on set/reset.
3.3 Budget Supplement
About this procedure: Use this procedure when you receive written advice that the Capex budget
change is increased.
Responsibility: Assistant Manager Accounts
Budget > Supplement > Change
SAP displays the following change supplement: Initial screen
2. Enter the order number in the order field that needs to be changed and click on
button.
SAP displays following Change supplement: Annual Overview Screen

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3. Enter the supplement figure to the years and overall.
4. Click Save
SAP displays the following message “Document 04XXXXXXXX posted”
3.4 Budget return
About this procedure: Use this procedure when you receive written advice that the Capex budget
change is decreased.
Budget > Returns > Change
SAP displays the following change return: Initial screen

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2. Enter the order number in the order field that needs to be changed and click on
button.
SAP displays the following Change Return: Annual Overview Screen
3. Enter the returned figure to the years and overall
4. Click Save

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SAP displays the following message “Document 04XXXXXXXX posted”
3.5 Marking orders for deletion
About this procedure: Use this procedure for internal orders that are no longer required. This
procedure marks an internal order for deletion which allows the order to be archived to an external
medium and deleted from the live database.
Master Data > Special Functions > Orders > Change
SAP displays the following Change Internal Order: Initial screen
2. Enter the order number in the Order field and click on button.
SAP displays following Change Internal Order: Master data screen

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3. To set the deletion flag, follow the menu path Edit > Deletion flag > Set.
SAP displays the following message
4. To remove the deletion flag, follow the menu path Edit > Deletion flag > Undo
SAP displays the following message
5. Click on save button.
SAP displays the following message.

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4 Creating order groups
Purpose
This procedure describes how to create an internal order group for reporting on capex.
Creating order groups establishes a hierarchical relationship between several internal orders for
reporting purposes. A node in the hierarchy represents an internal order group. The internal order
is attached at the lowest level in the hierarchy.
Scope
This procedure covers entering the order group name, inserting the order group, attaching nodes
and rearranging the nodes.
Related Procedure
4.1 Creating order groups (Capex)
About this procedure: Use this procedure when you need to group some orders for the purpose
of CAPEX reporting.
1. Enter KOH1 or follow the menu path: Financial Accounting > Controlling > Internal Orders >
Master data > Order group > Create
SAP displays the following Create Order group: Initial Screen
2. Enter the order group name in the Order group field and click Enter.
SAP displays the following Create order group: Structure screen

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3. Type in the description of the order group
4. Specify the level of the node relative to the existing node by clicking either Lower level or
Same level.
5. Complete the following fields :
• Node name – name of the internal order group using OR_ as a prefix
• Description – description of the order group, i.e. SAP project using PK as a prefix
6. Click Enter
SAP displays the following new node.
7. Select a node that the internal order should be attached to
8. Click
SAP displays the following Create Order group: Structure

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9. Complete the Order from / Order to
10. Click Enter
SAP displays the following Create Order Group: Structure screen
11. Click Save
SAP displays the message “ ”
5 Maintaining internal order groups
Purpose
This procedure describes how to maintain internal order groups for reporting purposes.

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Internal orders are grouped into a multi-level hierarchy. This allows reports to be a produced which
encompass a group of internal ordrs.
Orders groups can be restructured using the change procedure without having to create a new
internal order group.
Scope
This procedure covers changing, displaying and deleting new and existing internal order groups.
Related Procedure
Creating order groups
5.1 Changing order groups (Capex)
About this procedure: Use this procedure to create additional nodes, remove nodes, delete
nodes , add orders to nodes, remove orders from nodes and to rearrange nodes. Enter the
changes based on written advice from the Head of Accounts & Systems.
1. Enter KOH2 or follow the menu path: Financial Accounting > Controlling > Internal Orders >
Master data > Order group > Change
SAP displays the following Change Order group: Initial Screen
2. Enter the order group number in the Order group field.
3. Click Enter.
SAP displays the Create Order Group: Structure screen.
4. Select the node.
5. To rearrange the node:
6. Click Select.
SAP displays the Deselect, Same level, Lower level and Remove icons.

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7. To delete the order group from the higher level group, click Remove.
8. To return to the previous screen, click Deselect.
9. To move the group to the same level with an other node, click on the node and click Same
level.
10. To move the group to a lower level order group of other node, click on the node and click
Lower level.
11. To attach a new order to an existing node, refer steps 4-7 in section 4.1.
12. To remove an order from a node, select the order and click Select button, then click
Remove .
13. To create an additional node, refer steps 10-12 in section 4.1.
14. Click Save.
SAP displays the message: ‘Group changed / created.
5.2 Displaying order groups
About this procedure: Use this procedure to display an order group. This does not allow you to
change an order group. For more information, see section 5.2 “Changing Order Groups (Capex)”..
1. Enter KOH3 or follow the menu path Accounting > Controlling > Orders > Master data > Order
group > Display.
SAP displays the following Display Order Group: Initial screen.

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2. Enter the order group name in the Order group field.
3. Click Enter.
SAP displays the following Display Order Group: Structure screen.
4. To display how the group is being used, click where used list for group icon.
SAP displays the Options window.
5. Click Enter.
SAP displays the usage (group) screen.
6. To display the order master:
Select the order.
Click Display order icon.
SAP displays the following order master.

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7. Click Back.
SAP returns to the Display Order Group: Initial screen.
5.3 Deleting order groups
About this procedure: Use this procedure to delete an order group when you receive written
advice from the Capex Reporting Manager detailing the order group to delete.
1. Enter KOH2 or follow the menu path Accounting > Controlling > Orders > Master data > Order
group > Change.
SAP displays the following Change Order Group: Initial screen.

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2. Enter the order group in the Order group field.
SAP displays the following Change Order Group Structure screen.
3. Select the node to delete by clicking
4. Click Select.
5. Click Delete
SAP deletes the order group.

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6 Settling internal orders
Purpose
This procedure transfers amounts posted to an internal order to the balance sheet or expense and
settles the order. Line items within the one order can be settled to different cost centres or the AUC
using preliminary order settlement or to different fixed assets using final order settlement.
In preliminary order settlement the costs are settled to a cost centre account or to an asset under
construction. For final order settlement the costs are settled to the real fixed asset once the asset
is completed and asset master created. The department responsible for the order will specify
where to settle each line item or cost.
Scope
This procedure covers settling line items in an order to a fixed asset, a cost centre or an Asset
Under Construction (AUC). The procedure also covers closing and reporting on internal orders.
6.1 Apportioning line items (preliminary)
About this procedure: Use this procedure to settle costs to either a cost centre or an AUC or
both. You only need to enter the distribution rule for line items to be settled to a cost centre. The
other partial line items will automatically be settled to the AUC. Once these line items are settled to
a cost centre they cannot then be settled to the Fixed Asset.
Ensure you receive a form specifying where to settle each line item in the order. For more
information, refer to the form.
Responsibility: Assistant Manager Accounts / Manager Accounts.
1. Enter KOB5 or follow the menu path Accounting > Controlling > Orders > Actual Postings >
Period–End Closing >Single Functions > Settlement > Investment Order Line Items.
SAP displays following Distribute line items for Capital Investment Order: Initial Screen.
2. Complete the appropriate fields. For more information, see 6.1.1.

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3. Click Execute.
SAP displays the following Distribute Line Items for Capital Investment Order screen:
4. Highlight the line you want to settle.
Note: If the line items are to be settled to the same cost centre you can select all of them at
once by multiple selections.
5. Follow the menu Edit > Preliminary Settlement > Enter settlement rules to enter the settlement
receiver other than AUC:

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6. Enter the receiver. For detail information, please refer section 6.1.2. Click on Back button.
7. Repeat steps 4–6 for all the line items you want to settle.
8. Click Back.
SAP returns to the Order: Line Item Apportionment for Settlement screen.
9. Click Save.
6.1.1 Order: Line Item Apportionment for Settlement screen fields
Field Value Type
Order Order number Mandatory
Depreciation Area 01 for normal depreciation. Mandatory
6.1.2 Actual Settlement: Orders screen fields for collective processing
Field Value Type
CAT Receiver category. “CTR” for cost center” Mandatory
Settlement Receivers The receivers. Cost center number if CAT
is ‘CTR’
Mandatory

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Field Value Type
% The percentage of the line item amount to
be settled to the receiver.
Mandatory
Amount The amount to be settled to the receiver Mandatory
From Period Start period of the line item to be settled
to the receiver.
Mandatory
From Fiscal Year Start year of the line item to be settled to
the receiver.
Mandatory
To Period Last period of the line item to be settled to
the receiver.
Mandatory
To Fiscal Year Last year of the line item to be settled to
the receiver.
Mandatory
6.2 Apportioning line items (final)
About this procedure: Use this procedure to settle line items to the real fixed asset. Ensure an
asset master for the fixed asset exists.
If a preliminary order settlement has been run, any amounts that were already settled to a cost
centre cannot be settled again and will not be displayed on the order. The amounts that were
settled to the AUC can now be settled to a fixed asset.
The Settlement Request form specifies where to settle each line item in the order. For more
information, refer to the Settlement Request form.
1. Enter KOB5 or follow the menu path Accounting > Controlling > Orders > Actual Postings >
Period–End Closing > Single Functions > Settlement > Investment Order Line Items.
SAP displays the following Distribute Line Items for Capital Investment Order: Initial Screen.
2. Complete the appropriate fields. For more information, please refer section 6.2.1
3. Click Enter.
SAP displays the following Distribute Line Items for Capital Investment Order Screen.

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4. Select the line you want to settle.
Note: If the line items are to be settled to the same asset select them all at once.
5. Follow the menu path Edit > Final settlement > Enter distribution rules.
SAP displays the following Maintain Settlement Rules: Overview Screen.
6. Complete the appropriate fields. For more information, please refer section 6.2.2
7. Repeat steps 4–6 for all the line items you want to settle.
8. Click Back.
SAP returns to the Order: Line Item Apportionment for Settlement screen.
9. Click Save.

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6.2.1 Order: Line Item Apportionment for Settlement screen fields (final)
Field Value Type
Order Order number in the format defined above
in section 2.
Mandatory
Posting Date Enter range of posting dates for the
selection
Mandatory
Depreciation Area 01 for normal depreciation Mandatory
Line Items Select the checkbox to display line items Mandatory
6.2.2 Maintain Settlement Rules: List screen fields for final apportioning
Field Value Type
Cat Enter FXA Mandatory
Settlement
Receivers
The fixed asset number Mandatory
% Percentage rate of the line item(s) debited
to the Fixed Asset.
Mandatory
Amount The amount to be settled to the receiver Mandatory
From Period Start period of the line item to be settled
to the receiver.
Mandatory
From Fiscal Year Start year of the line item to be settled to
the receiver.
Mandatory
To Period Last period of the line item to be settled to
the receiver.
Mandatory
To Fiscal Year Last year of the line item to be settled to
the receiver.
Mandatory
6.3 Processing individually
About this procedure: Use this procedure to settle costs to the fixed asset or cost center. The
line items need to be apportioned before you process the order. This procedure settles orders
individually.
1. Enter KO88 or follow the menu path Accounting > Controlling > Orders > Actual Postings >
Period–End Closing > Single Functions > Settlement > Individual Processing.
SAP displays following Actual Settlement Order Screen

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2. Complete the appropriate fields. For more information, please refer section 6.3.1.
3. Click Execute.
SAP displays the Actual Settlement: Detailed List screen.
4. Check the details.
5. Click Back.
SAP returns to the Actual Settlement: Order screen.
6. Complete the following fields:
Test run – Select test run for a test or de-select the checkbox to run as a production run.
Process type – Automatic for preliminary settlement or Full for final settlement.
Note: The order must be settled first using “Automatic” and then using “Full”
7. Click Execute.
6.3.1 Actual Settlement: Orders screen fields for individual processing
Field Value Type
Order Order number which is settled Mandatory
Period Settlement month, eg 10 for August Mandatory
Fiscal Year Current processing year, e.g. 2007 Mandatory
6.4 Processing collectively
About this procedure: Use this procedure to finish settling line items to a fixed asset after
apportioning the line items. If the line items are not apportioned the costs will be settled to the
AUC. This procedure settles orders collectively using a selection variant.
1. Enter KO8G or follow the menu path Accounting > Controlling > Orders > Actual Postings >
Period–End Closing >Single Functions > Settlement > Collective Processing.

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2. Enter the appropriate fields. For more information, please refer section 6.4.1.
Note: All orders must be settled first using “Automatic” and then “Final”.
Click Execute.
If running the job as background processing, SAP displays the Background Processing:
Job Parameters screen. Continue to step 5.
If not, SAP displays the Actual Settlement: Basic List screen. Go to step 10.
Complete the following fields:
Job Name—job name, eg CAPEX02.
Start Immediately — select the checkbox to start the job immediately.
Click Enter.
SAP displays the Background Print Parameters screen fields.
Enter the name of the printer in the Output Device field.
Click Enter.
SAP redisplays the Actual Settlement: Orders screen and the message: ‘Job (name) for
user xxxxxx is planned’. Go to step 12.
Check the information by clicking on button

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Click Back.
SAP displays the Actual Settlement: Orders screen.
Deselect the checkbox in the Test run field.
Click Execute.
Click on button to review the settlement result:

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Click on the line for which accounting document needs to be reviewed, then click on
A window of all accounting document is displayed
3. Click on the accounting document number to review the accounting document.
6.4.1 Actual Settlement: Orders screen fields for collective processing
Field Value Type
Selection Variant PK_CAPEX . Mandatory
Period Settlement month, e.g. 2 for February Mandatory
Fiscal Year Current processing year, e.g. 2007 Mandatory
Detailed List This generates a list of the details at the
individual order level
6.5 Closing internal orders
About this procedure: Use this procedure when you finalize all postings and settlement of an
order. Check the balance of the internal order, only zero balance order can be closed.
Responsibility: Assistant Manager Accounts/Manager Accounts

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1. Enter KO02 or follow the menu path Accounting > Controlling > Orders > Master data >
Accrual Orders > Change.
SAP displays the Change Order: Initial screen.
2. Enter the Order number in the Order field.
SAP displays the Change Order: Basic Data screen.
3. In the Order status field click on button to close the order.
4. Click on button and select “80 FC Financially Completed”
5. Click Save.
SAP displays the message: ‘Order TZnnxxxxxxAA has been changed’.
6.6 Reporting on internal orders
About this procedure: Use this procedure to view reporting related with internal orders.
6.6.1 IO: Bud/Act/Com/ADV/Settlement
1. Enter ‘SARP’.
SAP displays the Report Tree: Initial Screen.
2. Enter ‘Z000’ in the Report tree field.

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Click on display button.
SAP displays the screen of ‘Display Report Tree Z000’.
3. Enter Common Report Tree > Country Specific > China > Management Report > Project /
Event Tracking > IO: Bud/Act /Com/ADV/Settlement.
SAP displays the IO: Bud/Act /Com/ADV/Settlement: Selection.

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4. Enter the number of Controlling Area.
5. Enter the number of Order Group.
SAP displays the ‘List: Budget/Actual/Commitments’ screen.
6.6.2 CAPEX project report
1. Enter ‘SARP’.
2. SAP displays the Report Tree: Initial Screen.
Enter ‘Z000’ in the Report tree field.

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3. Click on button.
SAP displays the screen of ‘Display Report Tree Z000’.
4. Enter Common Report Tree > Financial Accounting > Fixed Assets > CAPEX Project Report.
SAP displays the initial screen of CAPEX Project Report.

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5. Enter CAPEX Order Number or Group or Type, then Press button.
SAP displays the CAPEX Project Report.
6.6.3 Orders: Actual Line Items
1. Enter Menu Path: Accounting > Controlling > Internal Order > Information System > Report for
Inter Order >Line Items > KOB1 - Orders: Actual Line Items
SAP displays the Report Initial Screen.

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2. Enter Order group or order number from / to, posting date from / to, then press button.
SAP displays the requested internal order with actual, plan and variance value.

CO_PK_CAPEX_Accounting.pdf

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