Processing of CAPEX Proposal #

If the purchase order interacts with the “Asset Planning” business component and if the Expense Type of the purchase order is selected as “Capital” and if the purchase order has at least one part  with the Reference Document Type as “Others” or “Blank”, CAPEX Proposal # is mandatory. However, this is not applicable if the “Warranty Claim?” is set as “Yes” in the “Warranty Claim Details” group box and if the cost is zero.

Do not specify CAPEX Proposal #, if Expense Type of the purchase order is ‘Revenue’.

If the Expense Type of the purchase order is “Capital” and if the Reference Document Type is Shop Work Order, the system retrieves the CAPEX Proposal # based on the following:

• If the Task # entered is a valid task, the system defaults the CAPEX Proposal # available in the Shop Work Order for the Task # and Task Sequence # entered.

• If the Task # and Task Seq # are left blank, the system defaults the CAPEX Proposal # as available in the Work Order.

• If the Task #, Task Seq # and the Work Order Header Level CAPEX Proposal # are left blank unspecified, the system retrieves the “Default CAPEX Proposal #” available in the “Default Entries” cluster. If  CAPEX proposal # is not entered specified in the default details data cluster, then the system mandates the user to enter the CAPEX proposal #.

Note: The system ignores the CAPEX Proposal #, if the cost of the part/item in the base currency is less than or equal to the limit set for the “Capitalization Threshold for Asset Purchase” in the Company Parameter Setup component. However, if the cost of the part/item in the base currency is more than the limit specified for “Capitalization Threshold for Asset Purchase, the CAPEX Proposal # is saved for the part/item.

If the Expense Type of the purchase order is “Capital”, the finance book of the CAPEX Proposal # and that of the warehouse where, the parts/items procured through the purchase order are to be stocked must be the same.

Note: For Purchase Orders with Expense Type as “Capital”, the total cost of all the parts with the same CAPEX Proposal # must be less than the Pending Amount cited by the CAPEX Proposal. However, purchase orders of type ‘Consignment’ are exempted from this restriction.

Process Parameter dependency: If the process parameter ‘Allow Capex Proposal # from different Finance Book in Purchase Order’ under Company Level, Fixed Asset Management and Asset Planning in the Set Finance Process Parameters activity of OU Parameter Setup is 0/No, the finance book for CAPEX Proposal # must be the same as the warehouse finance book or ‘Expense to’ finance book. However, if the process parameter is 1/Yes, you can specify CAPEX Proposal # with a finance book different from that of the warehouse or the purchase order.