SAP ERP Financials and FICO Handbook

1.7 FI-AA 61
or freight, which you add to arrive at a total cost of acquisition for capitalization
of the asset.
Production cost means any asset that is created internally within the organization.
This is normally created by means of Assets Under Construction (AUC), and
you go on adding cost to the AUC as you incur expenses for the same, such as an
addition to the office building. Therefore, APC includes any external acquisition
or internal construction expenses that need to be capitalized.
129. Explain the assets organization structure from company code to subassets.
The assets organization structure consists of the FI organization structure plus asset
management configuration steps. Assigning a COA to company code is the first step
toward creating an assets organization structure.
In asset management, you define account determination, which in turn is
assigned to the G/L account. Sub-assets are created under assets, which in turn are
sub-units of the asset class. The asset class is assigned to the account determination.
Figure 1.37 depicts the assets organization structure.
Company
Code
Account
determination
Account
determination
Account
determination
Assets Class
Assets Class
Assets
Assets
Sub Assets
FIGURE 1.37
Assets organization structure