Capitalizing the Assets using the WBS in SAP

Creation of project cj20n
Creation of wbs under that project
Budget allocation
Release of WBS
Booking of cost either through direct fi posting or by mm route by creating PR....PR should be created with account assignment P (for direct consumption) or Q (for project Stock)..
Initial settlement through cj88, it will reverse the cost booked on expense gl and transfer the same to capital work in progress
Techo of project
Final settlement through CJ88 - it will reverse capital work in progress and transfer the to asset...

Accounting Entries

Cost booking

Expense Dr(on wbs)
Vendor Cr

On GRN (P) - one step recording
consumption dr gr/ir cr

On GRN (Q) -two step recording

Step 1 GRN movement type 101

Inventory dr
Gr/Ir cr

Step 2 - Issue of material movement type 221 Q

Consumption Dr(wbs)
Inventory Cr

At the time of initial settlement

CWIP ac Dr
Expense Cr
Consumption Cr

On final settlement

Fixed Asset Dr
CWIP Cr.....