Accounting of expenses to purchase fixed assets in management accounting

Here you can enable and set up the system capabilities for cost accounting, inventory cost calculation, and the enterprise profitability & cost.

Such expenses are accounted for by Expense items. Accounting by Cost centers is not applied. The cost pool is also an Expense item.

Within the Month-end closing procedure, all accumulated expenses are fully transferred to the cost of a fixed asset accounting object (Fixed asset, Intangible asset, R&D, or Asset under construction). The accounting object is specified in the expense recording document as an expense item dimension.

You can also account for expenses to purchase fixed assets by the Line of business dimension.

Before you set it up, specify all the operational settings. At least, perform instructions on the following pages:

• • Basic enterprise operation settings
• • Basic purchase operations
• • Transactions with fixed assets
• • Basic management accounting capabilities