SAP Financial Accounting (SAP FI) Practice Exam

In order to successfully transfer AUC to a real asset, what status must the AUC have?

1. Summary managed

2. Line item managed

3. Default managed

4. Grouped managed

The correct answer is: Line item managed

For an Asset Under Construction (AUC) to be successfully transferred to a real asset in SAP, it must be line item managed. Line item management means that the system tracks each investment made to the asset separately, allowing for detailed reporting and proper documentation of costs associated with the asset as it is developed. This detailed tracking is critical during the transition phase when the AUC is capitalized as a real asset. Transfers need to ensure that all relevant costs and elements are accounted for correctly, which is facilitated by line item management. The ability to view and manage each investment entry individually ensures a smooth and accurate transfer process, reflecting the precise financial standing of the asset in the books. Other management types, such as summary managed, grouped managed, or default managed, do not provide the granularity required to accurately capture all costs associated with an AUC, making line item management the only appropriate choice for this financial operation.