B2A 202 · VALUE
Which project costs become asset value?
Apply accounting policy, source structures, and settlement rules so capitalizable cost reaches AuC while expense reaches the correct receiver.
READ THE CAPABILITY
Separate project cost collection from the capitalization decision
A project can collect many kinds of cost without all of them becoming asset value. Accounting policy determines whether a source cost is eligible for capitalization, expense, or another permitted receiver; settlement rules implement that policy against the project structure.
The important control is traceability. A reviewer should be able to move from the original cost and source document through the settlement rule and AuC balance to the value that will eventually reach the final asset, including excluded or corrected amounts.
WORKING FLOW
From business decision to controlled evidence
Follow the capability through the records and decisions that make the result explainable.
Classify the cost
Define the policy boundary for materials, services, internal work, overhead, interest, and non-capitalizable items.
Collect on the project
Post eligible and ineligible costs to the accountable WBS or approved execution object with source evidence.
Settle the eligible value
Apply the supported periodic or event-based pattern, source structure, receiver, and settlement timing.
Reconcile exceptions
Explain residual cost, rejected receivers, reversals, late postings, and differences between project and AuC value.
DIAGNOSTIC EVIDENCE
What should be traceable?
When the result looks wrong, start with the last trusted record and follow the owning boundary.
Capitalization criteria, accounting treatment, source category, effective date, and responsible policy owner.
Source document, WBS cost, settlement rule, source structure, AuC posting, receiver, and period.
Excluded cost, residual balance, reversal, correction, approval, and reconciled resolution.
SCENARIO
A project contains both installation and training cost
Installation cost meets the approved capitalization policy and settles to the AuC. Training is excluded and remains expense. The project close review proves both treatments from source postings through settlement, rather than assuming every cost on a capital project becomes asset value.
- Business rule and accountable owner are explicit
- SAP object and source evidence remain connected
- Exception or outcome is reconciled before closure
CORE MODEL
Three questions to resolve
A sound design makes ownership, control, and evidence explicit before configuration.
Capital versus expense policy
Define the rule, responsible object, required master data, resulting document or posting, and proof.
Compare patterns02Periodic or event-based AuC settlement
Define the rule, responsible object, required master data, resulting document or posting, and proof.
Compare patterns03Exceptions and corrections
Define the rule, responsible object, required master data, resulting document or posting, and proof.
Compare patternsSee how this capability changes across valid integration models.