SAP S/4HANA Asset Capitalization – In house production Process

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In contrast to  process the Capitalization of IN-HOUSE PRODUCTION MATERIAL into an asset

 

The process comprises the following steps :

  1. In SAP PP module generate a BOM for production of material which will convert into Assets with complete BOM or Costing cycle.
  2. Once the production is executed then create a sales order (SAP SD)  in favour of Self (Self consumption invoice) for the produced material by that produced material inventory will be consumed and COGS will be debited.
  3. Create Asset code or WBS Code in SAP (FI or PS).
  4. Create a Asset purchase order (SAP MM) in favour of self purchase and do the asset purchase accounting with standard process
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