SAP MM BBP: Purchase Process for Asset Under Construction with Flow Diagram

This post captures a sample to-be Purchase of Asset Under Construction process in SAP MM Purchasing module to give an idea to MM consultants for their Business Blueprint (BBP) documentations.

SAP MM Purchasing Process Flowchart: Asset Under Construction Purchase

SAP MM Purchasing Process Flowchart: Asset Under Construction Purchase

BBP To-Be Explanation Purchasing Process Asset Under Construction (AUC) in SAP MM Purchasing:

In case of purchase of an CWIP materials AUC will be created in the system, approval request for creation of AUC will be completed (Out of SAP) if and once approved the AUC numbers will be generated in SAP with basic information such as Description, AUC Number etc. After creation of AUC PR will be generated by End user department with defined Asset number and estimated value of the asset to be purchased.
While creating PR in system it checks the available budget for the specified head of account for each line item in the PR and stops the process, however system allows the end user to hold the document until the pre-requisites were not fulfilled, I.e. if budget is not available with an error of budget availability the end user sends to finance department for allocation of budget. After budget allocation when the Held PR is saved, it will commit the total amount from the budget as per the value mentioned in the PR. Further this will be approved as per the defined approval hierarchy. The committed budget will be consumed automatically once the purchase cycle is completed.
Once the invoice verification is completed AUC will be capitalized. AUC process is defined in details in FI-Assets document. Once the AUC is transferred to Fixed Asset its value will also be transferred and in parallel inventory will be consumed on the same fixed so the inventory of the same can be monitored as well.
Following processes will be used in the above process:

  • AUC Master Creation
  • Purchase Requisition
  • Request for quotation (If Required)
  • Contract (If Required)
  • Purchase Order
  • Goods Receipt
  • Invoice Verification
  • AUC to FA Transfer (Value/Percentage Wise)
  • Inventory will be consumed on the same FA
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