24.11.
2021
Procedure to be followed in SAP-ERP for Abandoned Projects
This document relates to the accounting procedure to be followed in SAP-ERP
for Abandoned Capital Work in Progress (CWIP) / Asset Under Construction
(AUC).
Guidelines / Instructions issued on the above by BSNL CO from time to time
shall be followed.
Circular CA-351 dated 01.12.2015 issued by CA Section, BSNL CO may be
referred for accounting instructions.
Treatment of Input Tax Credit (ITC) shall be carried out as per the
instructions issued by Taxation Section, BSNL CO.
Accounting Procedure in SAP-ERP:
1. Post necessary entries for transfer of material, if any, from the abandoned
WBS to relevant inventory.
2. Value of serviceable material to be recovered from such abandoned project and
the amount (to be) realized on disposal of balance unserviceable material (to be)
recovered shall be considered to arrive at provision / loss.
3. Post the following entry with the amount of abandoned CWIP calculated in point
no. 2 above, through tcode FB50
5022014 'Loss on abandoned project' A/c with relevant Cost Center – Debit
5090101 'PS Clearing' A/c with relevant WBS – Credit
4. Carryout WBS settlement through tcode CJ88 for transferring the credit
balances from the GL 5090101 to AUC so that the value of AUC becomes zero.
5. Ensure to close the WBS as per PS Module procedure. Also check whether the
deactivation date is updated in the AUC Asset master after closure of WBS.
Note:
For creation of provision ---> Post entry through tcode FB50.
If the provision is created in any of the previous financial year (FY) and the
CWIP is abandoned in the current FY, the original provision entry may be
reversed in the current FY through tcode FB08.
GL A/c 1380128 – ‘Provision for Capital Work-in-Progress’ may be used
appropriately with relevant Profit Center.
Inventory scrapping process as available in MM Module may be followed for
disposal of unserviceable materials.
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BSNL ERP Abandoned CWIP PS - FICO
