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Asset Under Construction (AuC) in SAP

The goods and/or services produced, in-house, can be capitalized into asset(s). But, there are two distinct phases during this process:

  1. Construction phase (AuC)
  2. Utilization phase (useful or economic life phase)

It then becomes necessary to show the assets under these two phases in two different balance sheet items:
The ‘construction phase’ is one in which you start producing or assembling the asset but it is not yet ready for economic utilization. SAP categorizes these kinds of assets into a special asset class called ‘Assets under Construction(AuC). Read more