Sap Fi Aa BBP Document

SAP FI - Asset Management
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SAP Implementation Project Page 2 of 86

Table of Contents
1 Introduction .................................................................................................................................................. 9
1.1 Management Executive/Summary ............................................................................................................. 9
1.2 Basic Documents ..................................................................................................................................... 10
1.3 Project Charter ......................................................................................................................................... 10
1.4 Project Scope/Scope Document .............................................................................................................. 11
1.5 Significant Changes to the Current Status ............................................................................................... 13
2 Business Process Modelling ..................................................................................................................... 15
2.1 Cross Process related topics ................................................................................................................... 15
2.2 Information Carrier Model ........................................................................................................................ 15
2.3 Process Model Level 1, Core and Support processes Financial Accounting ......................................... 15
2.3.1 Flow Chart:.................................................................................................................................. 16
2.4 Process Model Level 2, Process groups Asset Management ................................................................ 17
2.4.1 Requirements:............................................................................................................................. 17
2.4.2 Flow Chart:.................................................................................................................................. 19
2.4.3 Detailed Process Flow: ............................................................................................................... 20
2.5 Process Model Level 3, Business Process 1 Plan & Acquire Assets ..................................................... 20
2.5.1 Short Description of the Process................................................................................................. 20
2.5.2 Business Requirements .............................................................................................................. 20
2.5.3 Process Flow Diagram ................................................................................................................ 22
2.5.4 Written Explanation ..................................................................................................................... 27
2.5.5 Linked Processes........................................................................................................................ 27
2.5.6 Inputs (Event Triggers, entities, parameters) .............................................................................. 27
2.5.7 Outputs (Process Results) .......................................................................................................... 27
2.5.8 Process specific User Roles & Requirements for the Authorization Concept ............................. 28
2.5.9 Quantification .............................................................................................................................. 28
2.5.9.1 Transaction and Data Volumes ................................................................................................... 28
2.5.9.2 Frequency of the Processes ....................................................................................................... 28
2.5.10 Measurable KPIs......................................................................................................................... 29
2.5.10.1 Status of KPIs before the Project............................................................................................ 29
2.5.10.2 Target KPIs............................................................................................................................. 29
2.5.11 Improvements to the Process Compared to As-Is Status ........................................................... 29
2.5.12 Functional Deficits/Gaps ............................................................................................................. 30
2.5.13 Notes on Further Improvements ................................................................................................. 30
2.5.14 Development Considerations ...................................................................................................... 30
2.5.15 FRICE Considerations ................................................................................................................ 31
2.5.15.1 Forms Considerations ............................................................................................................ 31
2.5.15.2 Reports Considerations .......................................................................................................... 31
2.5.15.3 Interface Considerations ......................................................................................................... 31
2.5.15.4 Data Conversion Considerations ............................................................................................ 31
2.5.15.5 Enhancements Considerations ............................................................................................... 31
2.6 Process Model Level 3, Business Process 2 AUC (Asset Under Construction) Asset Process ............. 31


2.6.3 Process Flow Diagram: ............................................................................................................... 33
2.6.4.1 Assets under Construction without Line Item Management ........................................................ 36
2.6.4.2 Assets under Construction with Line Item Management ............................................................. 37
2.6.4.3 Distribution Rules ........................................................................................................................ 37
2.6.4.4 Receivers .................................................................................................................................... 37
2.6.9 Quantification .............................................................................................................................. 39
2.6.10 Measurable KPIs......................................................................................................................... 39
2.6.10.2 Target KPIs............................................................................................................................. 39
2.7 Process Model Level 3, Business Process 3 Refurbishment of Assets ................................................. 41
2.7.3 Process Flow diagram Process Asset Refurbishment ............................................................. 43
2.7.9 Quantification .............................................................................................................................. 45
2.7.10 Measurable KPIs......................................................................................................................... 46


2.7.10.2 Target KPIs............................................................................................................................. 46
2.7.12 Gaps in the process Coverage.................................................................................................... 47
2.7.13 Organization change for further Improvements ........................................................................... 47
2.8 Process Model Level 3, Business Process 4 Transfer of Assets ........................................................... 48
2.8.3 Flow diagram .............................................................................................................................. 49
2.8.9 Quantification .............................................................................................................................. 52
2.8.10 Measurable KPIs......................................................................................................................... 52
2.8.10.2 Target KPIs............................................................................................................................. 53
2.9 Process Model Level 3, Business Process 5 Run Depreciation ............................................................ 55
2.9.3 Flow diagram .............................................................................................................................. 57


2.9.9 Quantification .............................................................................................................................. 59
2.9.10 Measurable KPIs......................................................................................................................... 60
2.9.10.2 Target KPIs............................................................................................................................. 60
2.10 Process Model Level 3, Business Process 6 Retire Assets ................................................................. 62
2.10.2 Flow diagram Asset Retirement ............................................................................................... 63
2.10.3.1 Asset Retirement .................................................................................................................... 65
2.10.3.1.1 Asset Sale with Customer .................................................................................................. 65
2.10.3.1.2 Posting of Gain or Loss ...................................................................................................... 65
2.10.3.1.3 Retirement without Revenue .............................................................................................. 65
2.10.3.1.4 Complete/Partial Retirement .............................................................................................. 66
2.10.3.1.5 Transaction Type (Prior-Year Acquisitions/Current-Year Acquisitions) .............................. 66
2.10.3.1.6 Proportional Value Adjustments ......................................................................................... 66
2.10.8 Quantification .............................................................................................................................. 68
2.10.8.1 Transaction and Data Volumes .............................................................................................. 68
2.10.8.2 Frequency of the Processes ................................................................................................... 68
2.10.9 Measurable KPIs......................................................................................................................... 68

2.10.9.2 Target KPIs............................................................................................................................. 68

2.10.10 Improvements to the Process Compared to As-Is Status ....................................................... 68
2.10.11 Functional Deficits/Gaps ......................................................................................................... 69
2.10.12 Notes on Further Improvements ............................................................................................. 69
2.10.13 Development Considerations.................................................................................................. 69
2.10.14 FRICE Considerations ............................................................................................................ 69
2.11 Process Model Level 3, Business Process 7 Asset Reports ................................................................ 70
2.11.3 Process Flow Diagram ................................................................................................................ 72
2.11.4.1 Hierarchical Reports ............................................................................................................... 74
2.11.9 Quantification .............................................................................................................................. 75
2.11.9.1 Transaction and Data Volumes .............................................................................................. 75
2.11.9.2 Frequency of the Processes ................................................................................................... 75
2.11.10 Measurable KPIs .................................................................................................................... 75
2.11.10.2 Target KPIs............................................................................................................................. 76
2.11.11 Improvements to the Process Compared to As-Is Status ....................................................... 76
2.11.12 Functional Deficits/Gaps ......................................................................................................... 76
2.11.13 Notes on Further Improvements ............................................................................................. 76
2.11.14 Development Considerations.................................................................................................. 76
2.11.15 FRICE Considerations ............................................................................................................ 76
2.11.15.5 Enhancements Consideration................................................................................................. 77
3 Solution Transformation ............................................................................................................................... 77
3.1 Cross Process related Topics ......................................................................................................... 77
3.1.1 SAP Organizational Structure ..................................................................................................... 77

3.1.3 Design Aspects ........................................................................................................................... 78

3.1.4 Master Data Concept .................................................................................................................. 79
3.1.4.1 Introduction to Master Data Asset Master Record ...................................................................... 79
3.1.4.2 High-Level Migration Concept ..................................................................................................... 81
3.1.5 Roles........................................................................................................................................... 81
3.1.6 APPENDIX A for Asset Management Reports .......................................................................... 81
4 System Landscape ....................................................................................................................................... 83
4.1 Planned / After Go-Live ............................................................................................................................ 83
4.1.1 Requirements for the Authorization concept ............................................................................... 83
4.1.2 Necessary IT systems required................................................................................................... 83
4.2 Actual / Before the Project Launch ........................................................................................................... 83
4.2.1 Required for the Authorization concept ....................................................................................... 83
4.2.2 Necessary IT systems required................................................................................................... 83
5 Glossary ....................................................................................................................................................... 84
5.1 Appendix .................................................................................................................................................. 86
5.2 References/Biblography ........................................................................................................................... 86

1 INTRODUCTION
This document states all of the conceptual results of the project SAP H. These project results were
devised and decided on by the project team and the Business Process Owner during the Business
Blueprint project phase. This is the main concept document of the project. The content of this
document forms the basis and the guidelines for the subsequent realization phase. This document
aims to describe the future business solution for SAP.
Any additional explanations that are only relevant when the project is in progress are given in the
various project management plan documents, which the project management team will provide on
request.
1.1 M ANAGEMENT EXECUTIVE/SUMMARY
The following Business Team form part for the outcome of the Business Blue Print
ABC SAP
Team
Leader Name Role Location Ext. E-mail
1
Key
Users
1
2
3
4
5

1.2 BASIC DOCUMENTS
The following basic documents describes the foundations of the project work that affected the
initial designs and concepts of the project. The information here is a selection of the most
important information. The complete information is available on the shared project file server at
//SAPProject/SAPH/Business Blue Print/FI/
Document ID Document Name
ABC_BBP_FI_Workshop Report_Asset Workshop Report

Management _V1.0
1.3 PROJECT CHARTER
Project Charter Mission & Benefits:

The mission of SAP H Project is to enable and enhance effectiveness and efficiency of business
processes of ABC company whilst utmost adaptation of SAP standard functionality and best
business practices.
ABCs current computer system has evolved through in-house development since two decades
and many individual island systems exist to carry out the business process.
Data communications among the applications are very restrictive and are not supporting the
business requirements adequately and are not integrated.
As part of its Computerization strategy, ABC Company Ltd has made the decision to replace its
existing systems with an ERP - my SAP integrated software.
The focus of benefits will be to provide common business systems across ABC that will:
Enable more effective use of resources

Support business growth
Leverage administration costs
The primary benefits expected to accrue from the SAP implementation are:
Reduction of paper work that promote concept of paperless office.

Identify the profitability of an activity and associated costs.
Flexible, evolving and responsive business environment.

Simple and shortened close at month and year-end.

Reduction of administrative overhead, enabling staff to concentrate on analysis rather than
transactional issues.
Provision of an integrated solution to the shortfalls of the current systems.
Information sharing across the company.
Provision of a feed of enterprise transaction data to any future data repositories and decision
support tools such as the Business Intelligence.
High quality reporting, resulting from improved data collection, database and reporting tools.
Introduction of Executive Information System (EIS) reporting for more informed decision-
making.
Broadly to mention
The project sponsor Mr. XYZ ordered this project on 07.11.2010.

The name of the project is SAP H.
The go-live of the project is scheduled for 06.11.2011.
The internal sponsor is the IT&HR department. ABC has named Mr. xxxx as its program
manager.
Consultants from SAP International for IT have been appointed by ABC as their SAP
Implementing Partner.
The complete project charter is available on the project server at \\ddddd\XXXX\.
1.4 PROJECT SCOPE/SCOPE DOCUMENT
This section summarizes the project scope that was agreed between the customer and the
contractor. This scope goes beyond the tasks that the service provider SAP International for IT has
been assigned and includes all project tasks that ABC must complete internally for itself.
The scope is subject to a strict change procedure. The process for changing the scope is
described in Project Scope Document ID..
To explain the scope as precisely as possible, several dimensions were chosen for examining the
scope, some of which may overlap: Specifically, the scope is examined in terms of the processes,
IT functions, technology, organization, method, and deliverables.
The highlights are:

Processes:
- General ledger accounting, accounts receivables accounting, Accounts Payable Accounting,
Asset Accounting, Cash and Bank Accounting and Treasury.
- Controlling Cost Element Accounting, Cost Center Accounting, Internal Order, Profit Center
Accounting, Product Costing.

Functions:
- mySAP ERP, component ECC 6.0 with EHP5.
Technology:
- Complete replacement of Venus System
Organization:
- Preparation of a centralized accounting department for all subsidiaries, including the
appropriate training activities
Method:
- The project includes the training of end users
- Project staff will provide support for the end users during the first month after the go-live
The current version of the complete project scope is available at (path).

Process Scope:
Core & Support Process Business Business Process Business Process Code
-Level 1 Process Group Level 3
Level 2
Financial Accounting General Master
Asset Master Data HI_FI_AA_05_01
Master Data Data
Financial Accounting Asset Plan & Acquire HI_FI_AA_05_02

Business Processes Management Assets
HI_FI_AA_05_03
Create Capital Asset
Refurbishment of HI_FI_AA_05_04
Asset
HI_FI_AA_05_05
Transfer of Asset
HI_FI_AA_05_06
Run Depreciation
Asset Retirement

Core & Support Process Business Business Process Business Process Code
-Level 1 Process Group Level 3
Level 2
HI_FI_AA_05_07
HI_FI_AA_05_08
Fixed Asset Reports
1.5 SIGNIFICANT CHANGES TO THE CURRENT STATUS
The following processes are examined in the area of maintaining Fixed Asset Accounting by ABC
Company Finance Department:
Asset Master
Asset Purchases
Depreciation
Asset Under Construction
Sale of Asset & Scrapping of Asset
Asset Master:
ABC maintains asset master and asset classes in MS Excel sheet.
Asset Purchases:
Vehicles, Tools and Machinery and Heavy Equipment are procured by Commercial
Division. Remaining assets are procured by Procurement Department at H.O.
Existing Software does not have Asset Maintenance in the Current System.
Depreciation:
ABC is calculating depreciation manually on yearly basis. Depreciation starts from the 1st of
subsequent month from date of acquisition. Depreciation is calculated by Straight Line Method.
Depreciation rate for assets may be changed (as per Management decision based on Auditors
request). ABC is capitalizing the assets on the 1st of subsequent month from the date of
purchase.
Asset Under Construction:
ABC capitalizing assets after the completion of the construction (after 100%)
Sale of Asset & Scrapping of Asset:

Vehicles, tools and machinery and heavy equipment are sold by Commercial Division with
approval of Finance Department, rest of the assets are sold by Concerned Department Heads
with prior approval from Finance Department.

2 BUSINESS PROCESS MODELLING
2.1 CROSS PROCESS RELATED TOPICS
2.2 INFORMATION CARRIER MODEL
Present all processes that the business blueprint examines in a structured format using three
process model levels. Handle the processes according to the various criteria.
Often, the structured descriptions of processes on the lower levels contain process variants that
only deviate from the main process in minor details, but which can later affect subsequent
processes. In such cases, decide whether it makes sense to include the variants in the process
model.
2.3 PROCESS MODEL LEVEL 1, CORE AND SUPPORT PROCESSES FINANCIAL ACCOUNTING
This document explains the design of the Financial Accounting module. The paper will describe
how Bank Master Data is maintained and used in FI and other all Integrated modules like CO, MM,
SD, HR etc.,
The document will act as a single source of material for all future design including Bank Master
Data and Business Processes in SAP for project Project SAP H of Finance Department.
The document is based on the following:
Customer Inputs from Business Blueprint Workshop and Workshop Reports.

Consideration into account all valuable suggestions and ideas from subject matter
experts.
Considering into past experience of SAP Consultant Team.
Deficient areas and approach to cover them from AS-IS Study
Discussions with ABC SAP IT Team.

Asset Management
2.3.1 Flow Chart:
FINANCIAL ACCOUNTING
GENERAL LEDGER ACCOUNTS ACCOUNTS ASSET BANK

ACCOUNTING RECEIVABLE PAYABLE MANAGEMENT ACCOUNTING
Maintain Chart of Process Customer Invoice Process vendor invoices

Create House Banks & Bank
Accounts Master Data Plan & Acquire Assets Accounts (Master data)
HI_FI_GL_01_02 HI_FI_AR_04_01 HI_FI_AP_03_01 HI_FI_AA_05_02
HI_FI_CABL_02_01
Handle Vendor DR / CR
Maintain Journal Entries /
Handle Customer DR/CR notes
Generate Parked Documents/ Develop Capital Projects
notes HI_FI_AP_03_02
Post Parked Documents/Post (AUC)
HI_FI_AR_04_02 Process Bank
with Reference/Post with HI_FI_AA_05_03 Reconciliation Statement
Clearing
HI_FI_CABL_02_02
Schedule/Plan for Payment
Follow up-on Receipts Due Refurbishment of Assets
HI_FI_GL_01_03/ HI_FI_AP_03_03
HI_FI_GL_01_05/ HI_FI_AR_04_03 Bank Cheques
HI_FI_AA_05_04
HI_FI_GL_01_06/ Management
HI_FI_GL_01_07/ Handle Vendor Advances / HI_FI_CABL_02_03
HI_FI_GL_01_08 Deposits / Guarantees
Handle Customer HI_FI_AP_03_04 Transfer of Assets
Maintain Recurring Advances / Deposits / Create Petty Cash Book
Transactions Guarantees HI_FI_AA_05_05 (Master data)
HI_FI_GL_01_04 HI_FI_AR_04_04 HI_FI_CABL_02_04
Handle Vendor L/Cs
Run Accrual and HI_FI_AP_03_05

Deferral Entries Run Depreciation Maintain Petty Cash
HI_FI_GL_01_09 Book Transactions
Process Incoming Payment
Process Vendor Payments HI_FI_AA_05_06 HI_FI_CABL_02_05
Run Month End Process HI_FI_AR_04_05
HI_FI_AP_03_06
HI_FI_GL_01_10 Cash Management
Retire Assets
Complete Customer Provide Vendor account HI_TR_CM_01
Reconciliation Confirmation HI_FI_AA_05_07
Run Year End Process HI_FI_AP_03_07
HI_FI_AR_04_06
Accounts Receivable Reports in Accounts HI_TR_CM_01
Financial Reports Reports in Asset Management
Reports Payable
HI_FI_AA_05_08
HI_FI_GL_01_12 HI_FI_AR_04_07 HI_FI_AP_03_08
SAP H Implementation Project Page 16 of 86

Asset Management
2.4 PROCESS MODEL LEVEL 2, PROCESS GROUPS ASSET M ANAGEMENT
The objective of this is to explain the functionality of the Asset Accounting sub-component (often
referred to as Fixed Assets). Asset accounting functionality is designed for the management and
supervision of ABC fixed assets and GL sub-ledger.
SAP Asset Accounting covers the complete lifecycle of an asset, which may start when the
purchase order is created or capitalized, to its retirement at the end of its useful life. During this
time, the system calculates appropriate depreciation values and interest amounts and presents
this information in many different reports.
The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with
the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger,
providing detailed information on transactions involving fixed assets.
As a result of the integration in the SAP System, Asset Accounting (FI-AA) transfers data directly
to and from other SAP components. For example, it is possible to post from the Materials
Management (MM) component directly to FI-AA. When an asset is purchased or produced in-
house, it can directly post the invoice receipt or goods receipt, or the withdrawal from the
warehouse, to assets in the Asset Accounting component. At the same time, it can pass on
depreciation and interest directly to the Financial Accounting (FI) and Controlling (CO)
components. From the Plant Maintenance (PM) component, it can be settled maintenance
activities of the PM-Order, which required capitalization of asset which will the process handled in
nd
SAP in the 2 Phase.
2.4.1 Requirements:
The objective of Fixed Asset Accounting is to ensure that all assets are recorded and maintained
accurately and in a timely manner as per ABC Company policies and procedures.
The requirements are:
Capitalisation of Asset.
Tracking of Asset for fully depreciated asset.
Transfer of Assets from one Cost Centre to another Cost Centre
Sale of Asset
Scrapping of an Asset
Calculation and Posting of Depreciation

Asset Management
Maintenance of Fixed Assets Register
Asset accounting involves the setting-up of the organisation level settings. The activities involved are
following:
Chart of Depreciation
Depreciation Areas
Asset Classes
Account determination (Definition of Accounts)
Screen Layout (for Asset master)
Integration with General Ledger
Depreciation posting
Posting Keys for Asset Posting

Asset Management
2.4.2 Flow Chart:
FINANCIAL ACCOUNTING
GENERAL LEDGER ACCOUNTS ACCOUNTS ASSET BANK

ACCOUNTING RECEIVABLE PAYABLE MANAGEMENT ACCOUNTING
Maintain Chart of Process Customer Invoice Process vendor invoices

Create House Banks & Bank
Accounts Master Data Plan & Acquire Assets Accounts (Master data)
HI_FI_GL_01_02 HI_FI_AR_04_01 HI_FI_AP_03_01 HI_FI_AA_05_02
HI_FI_CABL_02_01
Handle Vendor DR / CR
Maintain Journal Entries /
Handle Customer DR/CR notes
Generate Parked Documents/ Develop Capital Projects
notes HI_FI_AP_03_02
Post Parked Documents/Post (AUC)
HI_FI_AR_04_02 Process Bank
with Reference/Post with HI_FI_AA_05_03 Reconciliation Statement
Clearing
HI_FI_CABL_02_02
Schedule/Plan for Payment
Follow up-on Receipts Due Refurbishment of Assets
HI_FI_GL_01_03/ HI_FI_AP_03_03
HI_FI_GL_01_05/ HI_FI_AR_04_03 Bank Cheques
HI_FI_AA_05_04
HI_FI_GL_01_06/ Management
HI_FI_GL_01_07/ Handle Vendor Advances / HI_FI_CABL_02_03
HI_FI_GL_01_08 Deposits / Guarantees
Handle Customer HI_FI_AP_03_04 Transfer of Assets
Maintain Recurring Advances / Deposits / Create Petty Cash Book
Transactions Guarantees HI_FI_AA_05_05 (Master data)
HI_FI_GL_01_04 HI_FI_AR_04_04 HI_FI_CABL_02_04
Handle Vendor L/Cs
Run Accrual and HI_FI_AP_03_05

Deferral Entries Run Depreciation Maintain Petty Cash
HI_FI_GL_01_09 Book Transactions
Process Incoming Payment
Process Vendor Payments HI_FI_AA_05_06 HI_FI_CABL_02_05
Run Month End Process HI_FI_AR_04_05
HI_FI_AP_03_06
Retire Assets
Complete Customer Provide Vendor account HI_TR_CM_01
Reconciliation Confirmation HI_FI_AA_05_07
Run Year End Process HI_FI_AP_03_07
HI_FI_AR_04_06
Accounts Receivable Reports in Accounts HI_TR_CM_01
Financial Reports Reports in Asset Management
Reports Payable
HI_FI_AA_05_08
HI_FI_GL_01_12 HI_FI_AR_04_07 HI_FI_AP_03_08

Asset Management
2.4.3 Detailed Process Flow:
This sub-process covers the processing of an Asset procurement or production to scrap or sale.
The following Seven major processes are identified in the area of Fixed Asset Accounting under SAP
FI Module for ABC Finance Department.
The processes identified are:
HI_FI_AA_05_01 Plan & Acquire Assets

HI_FI_AA_05_02 Maintain Capital Assets
HI_FI_AA_05_03 Refurbishment of Assets
HI_FI_AA_05_04 Transfer of Assets
HI_FI_AA_05_05 Run Depreciation
HI_FI_AA_05_06 Retire Assets
HI_FI_AA_05_07 Asset Reports
All of these processes also have associated/sub activities.
2.5 PROCESS MODEL LEVEL 3, BUSINESS PROCESS 1 PLAN & ACQUIRE ASSETS
2.5.1 Short Description of the Process
This process defines to register all the assets acquired by ABC. The process will be managed in two
ways in SAP.
Assets acquired through Purchase Order
Assets acquired without Purchase Order
ABC will plan and procure assets through Purchase Order only.
2.5.2 Business Requirements
The Asset Management design solution needs to address the following business requirements:
To record all the assets in the books of the company
To facilitate depreciation base values, asset should be correctly capitalised
Identification of asset will help in physical verification of inventory.
All capital Investments will be planned and budgeted. All asset procurements will be through PO
or Non-PO and tracked.

Asset Management
Capitalization decision will be made in the System and based on this decision; settlement will be
made in SAP to Final Assets

Asset Management
2.5.3 Process Flow Diagram
HI_FI_AA_05_02 Plan & Acquire Asset (Direct Capitalization)

Trigger
11
Point
Capital Asset Needs Vendor

to be Purchased Actions
Buyer Administrat Approver Requestor
1 4
Coordinates with FI Create Purchase Requisition with END
Manager to create Asset Acct. Assignment A- Asset
Master NON-SAP
5 NO
2 Purchase
Review PR & Validate 6
Analyze and Requisition
Budget Availability PR Approved
approve
NON-SAP
YES
Master Data
3
or
Create Assets
(Asset Master Data) NO
7 8 9
Convert Purchase Request Purchase Order Change Purchase
to Purchase Order Accurate Order
Ware house Purchasing
Manager
YES
10
Approve Purchase
Order
12
Asset Dr Goods Receipt with
Clerk
GR/IR Cr Reference to Purchase

Order
Accountant
Accounts
Payable
13
GR/IR Dr Vendor Payment
Invoice Receipt with
Vendor Cr
Reference to Purchase
Order

Asset Management
Process Steps Plan and Acquire Assets With Purchase Order

Process Process Description Responsibility In SAP Change Remarks
Step Step / management
Box No Outsid required
e SAP (Process/System)
Coordinat Whenever a Requestor Non- Required at Concerne
es with Asset SAP Process Level d
Finance required at Departme
Manager source the nt /
for Asset Identifier will Division/
Master create the Project
data PR, for this requestor
creation PR he need requested
1 Asset Master via
number. For various
this the communi
requestor cation
inform to channels
Finance to provide
Manager to Fixed
provide such Asset
number number
Analyze & After FI Manager SAP & Required at Informatio
approve receiving the Non- Process Level n passed
request, SAP to Master
Check Data
available Administr
budget, ator with
approve the approving
same with to create
providing Asset
2
certain Master
details of Data
Asset Master
data with After
Master Data receiving
Administrator the
Master
data
number

Asset Management

check &
pass the
informatio
n to
requestor
Create Create the Master Data SAP Required at System Pass the
Asset Asset Master Administrator Level informatio
Master data with the n of Asset
Data help of number to
3
details Finance
received from Manager
Finance
Manager
Creation Create MM User/ SAP Required at System Send for
of PR with Purchase Requestor level approval
account request with to the
assignme putting approver
nt `A Account
4
assignment
`A` and
specify the
Asset
number
Review Review PR & Approver SAP & Required at System
PR, Validate Non- Level
5
Validate Budget SAP
Availability
PR If PR Approver SAP Required at System
approval approved, It Level
will go further
action in
6 procurement
cycle
If PR
rejected,

Asset Management

there is no
further step
of action for
that PR
Convertin Receive the Buyer SAP Required at Pass the
g PR to PR and Process Level informatio
7 PO convert it into n to
Purchase validate
Order PO
Purchase Check the Buyer SAP Required at System Pass the
Order accuracy of Level informatio
Accurate Purchase n
8 Order regarding
the
accuracy
of PO
Change If accuracy is Buyer SAP Required at System Pass the
Purchase not in the Level informatio
Order created PO n
go and regarding
9
change the the
PO with accuracy
required of PO
details
Approve After getting Purchasing SAP Required at System Approved
PO validated Manager Level PO will
approve the send to
10
same Vendor
for his
action
Vendor Vendor may Vendor NON- Required at Vendor
Actions request for SAP Process Level actions
Advance are
11
payment as external
per
agreement if

Asset Management

applicable.
Deliver the
goods as per
PO
conditions
Goods Asset Ware house SAP Required at System
Receipt (Goods) will clerk Level
(Asset) be received
with from Vendor
reference at the
to PO delivery point
as mentioned
in PO.
12 Automatically
Asset G/L
Account will
be debited.
Asset A/C
....... Dr
GR/IR A/C
...........Cr
Invoice Invoice will AP Accountant SAP Required at System
verification be verified Level
after
receiving
from the
vendor then
13 the entry will
be:
GR/IR A/C
........Dr
Vendor A/C
.......Cr

Asset Management
2.5.4 Written Explanation
Assets will be acquired through External procurement.

Assets will be acquired either through Purchase Order or direct posting in FI
External purchases: User raises the purchase requisition for purchase of assets. Purchase
requisition is approved by appropriate authority, based on authority limit for purchasing of
assets. Thereafter the Accounts department will check whether capital budget is available
for the purchase of same. If the Capital Budget is not available then a request for special
approval is made to higher authority at appropriate level as per authority limit. Purchase
order is raised against vendor and creation of Assets Master Records. Supplied items are
physically received at warehouse and inspection of the assets is carried out by indenter. On
acceptance the goods are issued to the indenters/users. Payment (after adjustment of
advance if any) will be released to the vendor after the invoice verification
ABC has no process of In House Production of Assets.
2.5.5 Linked Processes
There is a direct link to GL Accounting, Accounts Payable, Accounts Receivable, Cash and
Banking sub modules in Financial Accounting and indirect links to all integrated modules like
CO,MM,SD,PS, etc.,
2.5.6 Inputs (Event Triggers, entities, parameters)
The following Inputs required to Plan and Acquire Assets.
Asset Classes
Number Ranges for Asset Classes and Asset Masters
Create Asset Master
Procure Asset with procurement cycle (MM)
Procure Asset without Purchase Order (FI direct entry)
2.5.7 Outputs (Process Results)
Asset Master is Created

Asset Management
Capitilization of the Asset completed

Capitilization Date is same as Depreciation Start Date
Asset Procured through Purchase Order
Asset Import / Transport charges, Installation, Interest (if purchased on Installment /
Loan) & other charges are also will be capitalized along with the respective Asset
2.5.8 Process specific User Roles & Requirements for the Authorization Concept
Step # Department User Role Process Description SAP Module T Code
1 Finance & Finance Check the budget CO

Accounts Manager availability and
requirement
2 Finance & Master Data Create Asset Master FI AS01

Accounts Administrator data
3 Finance & AP Accountant Enter the PO Number In FI MIRO

Accounts the concerned field
2.5.9 Quantification
In Terms of Quantification the Transaction and Data Volume will be considerably less and the
frequency of the transaction will be as per the requirement of the Business.
2.5.9.1 Transaction and Data Volumes
The usage of the Transaction of Plan and Acquire Assets will be as per the Business
Requirement and the Data Volume will be considerably less in nature.
2.5.9.2 Frequency of the Processes
Frequency will be as per the Business Requirement.

Asset Management
2.5.10 Measurable KPIs
The following sections describe the KPIs for the project
2.5.10.1 Status of KPIs before the Project
No current KPIs were seen
2.5.10.2 Target KPIs
Standard transaction recording and tracking process
2.5.11 Improvements to the Process Compared to As-Is Status

Asset Management
ORGANIZATIONAL CHANGE IMPACT
Change Impact AS IS TO BE in SAP

Summary
Plan & Acquire Currently Assets are Assets will be procured only if budget is
Assets Managed outside the available
Venus System. Centralized Master data maintenance
Inter-Company & Intra-Company transfer

facility available in SAP once the Other
Company Code of ABC Contracting is in
Place.
Tracking of Asset via physical location

wise with its value
Real-time net book value can be traced
One GL account will take care of all

bookings for All similar types of Assets,
which will be maintained at Asset Class
level
Assets can be maintained by cost centres,

responsibility of assets is clearly defined.
Asset movement can be tracked on real

time
2.5.12 Functional Deficits/Gaps
NIL
2.5.13 Notes on Further Improvements
NIL
2.5.14 Development Considerations
NIL

Asset Management
2.5.15 FRICE Considerations
2.5.15.1 Forms Considerations
NIL
2.5.15.2 Reports Considerations
Report Requirements to be received and finalized.
2.5.15.3 Interface Considerations
NIL
2.5.15.4 Data Conversion Considerations
Asset Values needed to be uploaded at the time of Go Live
2.5.15.5 Enhancements Considerations
NIL
2.6 PROCESS MODEL LEVEL 3, BUSINESS PROCESS 2 AUC (ASSET UNDER CONSTRUCTION) ASSET
PROCESS
This activity deals with the processes relating to the AUC Asset Management by ABC.
Business User can manage the asset under construction in the system in two different ways,
depending on the types of functions that they need. The asset under construction can be
either a normal asset record, or a master record with line item management. As a result, the
transfer from the asset under construction to completed fixed assets can be handled in one of
two ways:
Summary transfer from a normal asset master record to the receiver assets (transaction type
348/349)

Asset Management
Line item settlement of an asset under construction that has line item management
To record all the assets in the books of the company

All capital Investments will be planned and budgeted. All asset procurements will be through PO
or Non-PO and tracked.
Capitalization decision will be made in the System and based on this decision; settlement will be
made in SAP to Final Assets

Asset Management
2.6.3 Process Flow Diagram:
HI_FI_AA_05_03 Develop Capital Projects (Asset Under Consrtruction(AUC) with Investment Orders)
Trigger
PO Related
Point
Capital Asset Needs Invoices Posted to Complete
to be Constructed Order Order
Approver Requestor
1
Create Request for a END
Capital Asset to be
Constructed
2
3
Review Request NO
Approved Asset
& Validate
Construction
Budget
YES
Cost Accountant
Asset Under Create Asset

(for Complete
Asset
4 Construction
Create Investment Settlement Asset Under
Order with Asset Month-End Process Construction
Under Construction Settlement
Controller
Manager /
Finance
Release
5
Investment Order
Validate & approve
Payable Buyer
6
Purchase Asset
Under Construction
Accountant
Accounts
7
Invoice Posting to
Investment Order
NO
Accountant
Create Budget for

Investment Order
Cost
8 YES
Monitor Order Asset Construction
Progress Completed

Asset Management
Process flow Steps AUC Asset (Asset Under Construction).
Process Process Description Responsibility In SAP / Change Remarks

Step Step Outside management
Box No SAP required
(Process/System)
Create Create a Requestor Non- Required at Concerned

Request for Request for SAP Process Level Department /
a Capital developing Division/
Assset to a Capital Project
be Asset requestor
constructed requested via
1
various
communicati
on channels
to develop
Fixed Asset
in-house
Review Review the Approver SAP & Required at

Request & request and Non- Process Level
Validate analyze with SAP
2
Budget validating
the available
budget
Approved If Budget Approver Non- Required at If not

Asset allows, SAP Process Level approved it
Constructio approve for will be ended
n develop up with this
step.
Pass the
information to
3
create
investment
order to asset
accountant
for the
approved
order

Asset Management

Box No SAP required
(Process/System)
Create Create Asset SAP Required at System Send to

Investment Investment Accountant Level Finance
Order with Order with Manager for
4 Asset Asset Under approval
Under Construction
Constructio
n
Validate & Validate the Finance SAP Required at Send to

Approve AUC and Manager Process Level buyer group
5
inform to the with AUC
buyer group number
Purchase If any Buyer SAP Required at Whenever

Asset material Process & System goods
Under purchases Level received for
Constructio are required this
n for Asset automatically
Under it will be
Construction debited to the
, perform concerned
that order
6
procurement
Until and
cycle
unless
releasing the
order,
procurement
of goods
cannot be
done for that
order
Invoice Invoice AP Accountant SAP Required at

Posting to verification Process Level
7
Investment process has
Order to perform
8 Monitor Monitor Cost SAP Required at System Order will be

Asset Management

Box No SAP required
(Process/System)
Order Order and Accountant Level settled by
Progress whenever Cost
Goods Accountant
receipt, it by on Asset
will be Master data
booked to
Prior to settle
the Orders
Asset Master
data need to
be created by
informing to
Asset
Accountant
An asset that you produce yourself has two stages in its life that are relevant for accounting
from the point of view of your company:
Under construction phase
Useful life phase
Generally, an asset has to be shown in different balance sheet items, depending on the phase
that it is in. Therefore, it is necessary to manage the asset as a separate object or asset
master record during the construction phase. The transition between these two phases is
called "capitalization of the asset under construction" in the following.
2.6.4.1 Assets under Construction without Line Item Management
The procedure corresponds to the procedure for the transfer between two assets within the
same company code. Before carrying out a full transfer of an asset under construction, you
have to reverse any down payments that were posted in the current fiscal year. Down
payments are ignored for a partial transfer.
Special transaction types for the transfer of assets under construction allow for transfers to be
displayed in the asset history sheet as acquisitions to fixed assets.

Asset Management
2.6.4.2 Assets under Construction with Line Item Management
In the FI-AA component, you can accumulate costs under purely technical aspects in an asset
under construction. You do not need to consider the later creation of fixed assets at this point.
During the construction phase, you can accumulate all acquisitions for an investment in a
single asset. These acquisitions include
External activity (acquisition from vendor)
Internal activity (internal order)
Stock material (withdrawal from warehouse)
2.6.4.3 Distribution Rules
Line item settlement is carried out by using distribution rules. Distribution rules are asset-
specific. Several distribution rules form a distribution rule group. You can assign these groups
to one or more line items of an asset. Distribution rules consist of a distribution key and a
receiver. The distribution key can be equivalence numbers or percentage rates. In this way,
you can distribute any number of combinations of line items to any number of combinations of
receivers.
Distribution key Receiver (Asset)
10% 10531-1000
20% 10531-2000
40% 10533-0000
30% 10533-1000
2.6.4.4 Receivers
You must settle those parts of the asset under construction that require capitalization to
capitalized assets. Those parts that do not require capitalization (expense) can be settled as
an adjustment posting to cost centres. You can specify a cost element in the account
determination in Asset Accounting for this settlement to cost centres. However, you should be
aware that you can only settle acquisitions from the current fiscal year to CO receivers. This
restriction applies since acquisitions from previous fiscal years should not have an effect on
expenses of later fiscal years.
In addition, it is possible to settle to general ledger accounts. However, these G/L accounts
cannot be defined with additional account assignment to a CO object. Therefore, you should
first settle to clearing accounts, if necessary, and then transfer the values to the
corresponding accounts in Financial Accounting.

Asset Management
The Main Objective of AUC Assets are:
To cumulate the cost incurred to make the asset productive.

To track the cost incurred for comparison of budget and actual.
To settle the cost to the Fixed asset at the time of capitalization.
To capitalize the asset on production confirmation.
This process has a direct Link with Material Management Module, and GL Accounting.
o Receive a commissioning report/approval for capitalization of fixed assets under

constructions (AUC)
o Posting in AUC Asset Class
o Line Item posting in AUC Asset in SAP
o AUC Asset Created

o Asset Capitalization in the Real Asset Class
Step # Department User Role Process Description SAP T Code

Module
1 Finance & Financial Create the Asset Master FI AS01,

Accounts Analyst Data AS91
2 Finance & Finance Validate and approve FI AS03,

Accounts Controller
AW01N

Asset Management

Module
3 Finance & Vice President Validate and approve FI AS03

Accounts
Finance AW01N
3 Finance & AP Accountant Enter the PO Number In the MM MIR7

Accounts concerned field check and
park
4 Finance & AP Manager View the document and Post MM MIRO

Accounts
5 Finance & Financial Settlement of AUC Asset FI AIBU

Accounts Analyst
AIAB
In terms of Quantification, the AUC asset Transactions and Data Volume will be considerably
Less and the
frequency will be as per the Business Requirement.
The Transaction and Data Volumes is less in number in respect of AUC Asset Transactions.
The frequency of the AUC Asset Transaction Postings will be as per the Business
requirement.
No current KPIs were seen

Asset Management
Easy transaction posting

Easy tracking of information in SAP with less time.

Summary
AUC Asset Process Currently Assets Centralized Asset Master Data

are not being Maintenance.
managed in Venus Real time net book value can be traced in
System SAP
One GL Account will take care of all the

bookings in AUC
Partial Line Item wise and Full Settlement

of AUC is possible in SAP.
Online reporting to trace the progress of

AUC
NIL
NIL

Asset Management
NIL
NIL
NIL
NIL
Asset Balances needed to be uploaded at the time of GO Live
NIL
2.7 PROCESS MODEL LEVEL 3, BUSINESS PROCESS 3 REFURBISHMENT OF ASSETS
Refurbishment processing is the refurbishment/ recondition of equipment and spares which have
been damaged or worn out through continuous usage and needs to be refurbished. Equipment can
be refurbished either through internal repair or through an external contractor.

Asset Management
In refurbishment processing, the equipment / spare to be refurbished is either sent to stores after
doing in-house repair job or directly to be repaired through an external contractor. Cost of repair is
booked in the Refurbishment Order relating to a Material usage and value of the material.
In case of external refurbishment job, material is sent to the contractor for repair through store.
When running equipment is damaged, notification is received by Refurbishment/Production dept. for

corrective action. While working on the equipment, Refurbishment dept. observes that material needs
to be replaced/refurbished/Overhauling. If material is refurbished in-house/through workshop, a
Refurbishment order shall be created and all related costs should be booked to the Material/ Asset as
per business requirement. Once Equipment is refurbished, the balance material will be sent back to
the Stores (if it is already replaced with a new material from the stores).
In case of In-house Refurbishment, and if the Material is not useful for refurbishment of the
Equipment, then a new spare part is planned for the Refurbishment order, a reservation is created
and new material is issued against this reservation.
This Process will be handled by ABC once the Plant Maintenance Module is implemented in
nd
the 2 Phase.
To create a Refurbishment order for vehicle /Equipment modifications.

To capture services procured spares used and man hour spent against the
Refurbishment order (major repair).

Asset Management
2.7.3 Process Flow diagram Process Asset Refurbishment
HI_FI_AA_05_04 Refurbishment of Assets

Trigger
Point
Need to Recondition
the Asset
Refurbishment
Create Issue Material with
Order Settlement on
Refurbishment Refurbishment
Asset as Period-
Order Order
End Process
Manager
Asset
Fixed
Asset Dr
Material Cr

Asset Management
Process Steps Bank Reconciliation

Box No Outside required
SAP (Process/System)
1 Check Execute the Fixed Asset SAP Required at If the
the Asset Manager Process Level settlement
Report Explorer, required
of Asset which Asset on new
settled thru Asset, It
Refurbishment has to be
process created
before
settlement
and pass
the
information
Cost
Controller
to settle on
that
particular
Asset
Technical Equipments often require high-value components such as shafts, pumps, motors.
In case of damage, these must be replaced by an operational spare part and then refurbished
in a separate order.
Refurbishment of Equipment/Assets will be the part of Plant Maintenance and Production

nd
Planning Process which are being covered in 2 Phase of the SAP Project.
As a work around solution the Business User can create an Internal Order for posting the
repairing expenses into the Order and finally settle them to the Asset.
This will help the Business User to track the Expenses of Repair for the Refurbishment of
Assets.

Asset Management
This process has direct link with Plant Maintenance, Production Planning, Material
Management Module, General Ledger and Indirect Link to CO Module.
Refurbishment Order with reference to the Equipment
Expenses Capitalized to the Asset.

Module
1 Finance & Financial Create/ Change/ Display FI AS01,

Accounts Analyst the Asset Master Data AS02,
Asset History Explorer AS03,

AS91,
AW01N
2 Finance & Financial Settlement of CO KO88

Accounts Analyst Refurbishment Order to
Asset
In Terms of Quantification the Transactions and Data Volume in respect of Refurbishment of

Assets will be less in nature.
Transaction and Data Volume will be less in nature while performing the Refurbishment of the
Assets.

Asset Management
Frequency of performing Refurbishment of Assets will be as per the Business Requirement.
No Current KPIs were seen.
Less time consuming and automatic updating of entries
Change Impact Summary AS IS TO BE in SAP
Refurbishment of Assets Currently JV is Refurbishment of Assets

being entered in Process covered in SAP.
the Venus System Integrated with Plant
for Refurbishment Maintenance Module and
of Assets automatic updating of
Entries in Financial
Accounting.
Online Asset History

possible in SAP.

Asset Management
2.7.12 Gaps in the process Coverage
Plant Maintenance Module and Production Planning Module in Phase 2
2.7.13 Organization change for further Improvements
As a workaround Solution, Business User can use Internal Order for tracking the Repairs
Cost and finally settle to the Asset.
NIL
NIL
NIL
NIL
NIL
NIL

Asset Management
2.8 PROCESS MODEL LEVEL 3, BUSINESS PROCESS 4 TRANSFER OF ASSETS
Movement of assets from one location to another or from one company code to another should be
tracked in the system. In Asset accounting there are two types of transfers, intra-company and inter-
company asset transfers:
Intra-company asset transfer: sending asset is transferred to a target asset within a
single ABC Company code, for example, if the asset was created in the wrong asset
class or Sending Asset from one Cost Center to the Other Cost Center within the
Company Code.
Inter-company asset transfer: sending asset is transferred to a target asset that is
assigned to a different company code. For example, if the asset transferred from ABC
Company code to Other Company code..
The Asset Transfer solution needs to address the following business requirements:
To reflect the correct location of asset on any given date.
Movement of asset from one company code to another company code should be effected in
system. Depreciation has to be booked to the company code from the date of transfer.
In case of movement of assets across cost centers, depreciation has to be booked to the relevant
cost centers from the day of movement.
Asset can be transferred partly or fully
To keep track of movement history of assets

Asset Management
2.8.3 Flow diagram
HI_FI_AA_05_05 Transfer of Assets

Trigger
Point
Need to Transfer
Asset
YES Inter-Company NO
Transfer
Manager
Intra Company Transfer

Asset
Fixed
Inter-Company Transfer
(Asset can transfer from
(Asset can transfer
Asset Class / Plant /
between Company
Cost Centre /
codes which are in SAP)
Location)

Asset Management
Process Steps Transfer of Assets

1 Inter- Transfer the Fixed Asset SAP Required at Whenever
Company Asset/s Manager Process Level the Fixed
Transfer between Asset
Company physical
Codes movement
which are in happend,
SAP, need to
partially or identify
fully as on a (upon
particular receiving the
date. information
from the
responsible
persons) and
perform this
transaction
2 Intra- Transfer the Fixed Asset SAP Required at Whenever
Company Asset/s Manager Process Level the Fixed
Transfer within Asset
Company physical
Code movement
partially or happend,
fully as on a need to
particular identify
date. (upon
receiving the
information
from the
responsible
persons) and
perform this
transaction

Asset Management
Intra-company Asset Transfers: Using intra-company asset transfer, ABC Company transfers a
fixed asset, to a different asset master record. The target asset has to be in the same company
code as the sending asset. Intra-company transfer may be necessary for one of the following
reasons:
An asset was created in the wrong asset class. Since you cannot change the asset class
in the asset master data, you have to transfer the asset to a new master record.
You split up an asset or move part of an asset (transfer from one asset to another asset)
An asset is transferred from one Location(Cost Center) to another Location within the
Company Code.
Inter-company Asset Transfers: This function will be used to transfer asset from one company
code to another company code within the ABCgroup. From the groups perspective, an
intercompany transfer represents a retirement for the one company and an acquisition for the
other. However, it typically represents a transfer that balances to zero in the group asset history
sheet. An intercompany asset transfer within ABCcorporate group may be necessary for one of
the following reasons:
The physical location of the asset has changed, making it necessary to assign the asset to
a new company code.
The organizational structure of the corporate group has changed, requiring you to reassign
the asset to a different company code.
Full or partial transfer of an asset can be possible
The Inter-Company Process will be available in SAP once the other Company Code ABC
Contracting is in Place.
This Process has direct link with the GL Accounting and indirect link to Controlling Module.
The Input criteria for the Asset Transfer Process is
Location change of the Asset

Asset Management
Asset Creation in wrong Asset class
Change in Organization Structure of the Company Code.
Asset is transferred.

Module
1 Finance & Financial Transfer within Company FI ABUMN,

Accounts Analyst Code,
ABT1N
Inter-company Asset
Transfer
In Terms of Quantification the transactions relating to Asset Transfer will be as per the
Business Requirement.
The Transaction and Data Volume is comparatively less as and when Business requires.
The Transaction is posted as per the Business Requirement.
This Section explains the Measurable KPIs of the Project.

Asset Management
Currently no KPIs seen
Less time consuming
Automatic posting of Accounting Entries
Automatic updating of Asset Register
Reduce user work load

Summary
Asset Transfer Currently JV is Asset Transfer process can be handled in

being posted in SAP.
Venus System for Online updating of Asset values
handling Asset
Tracking of Assets Movements in Asset
Transfer process
Register
Full and Partial Transfer possible in SAP.

Asset Management
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL

Asset Management
2.9 PROCESS MODEL LEVEL 3, BUSINESS PROCESS 5 RUN DEPRECIATION
This process defines the method of executing Depreciation Run with SAP.
The process of depreciation is required to calculate and post the depreciation on the Assets within the
Company Code on monthly basis.
To calculate asset wise depreciation at different depreciation rates to comply the legal
requirements. Depreciation calculation shall be done on pro-rata basis starting from the day
of capitalization, till date.
Depreciation on each assets to be run on monthly basis (Planned Depreciation) at the

rate/method specified in the depreciation key
Depreciation method is Straight Line Method for ABC Company
Depreciation to be posted automatically by the system when the program is executed. We

need to have depreciation calculation for each and every individual asset; however entry in
G/L shall be passed on group basis
Negative values or zero are not allowed for Depreciation
Depreciation should be carried on the basis of depreciation area. Only Depreciation area 01
Book Depreciation is posted to GL Accounts.
Depreciation should be simulated before it can be posted to G/L account by test run option
In case certain terms are changed in asset master which have effect on depreciation or base
values, the change in depreciation value should be carried in the current depreciation run.
Projection of future depreciation should be available in system
Re-run/ Un-planned Depreciation of the current periods Depreciation run should be allowed
in the system
When an asset is retired, depreciation is calculated till the date of retirement. In case it is
transferred, the system should generate or calculate depreciation till the date of transfer in
old cost center & subsequently to new cost center
For Low value assets, depreciation should be charged in the period of purchase

Asset Management
Depreciation should not be charged on AUC/CWIP

Asset Management
2.9.3 Flow diagram
HI_FI_AA_05_06 Run Depreciation

Trigger
Point
Need to Run
Depreciation
Validate Assets
before Run
Depreciation
NON-SAP
Manager
Asset
Fixed
Run Depreciation
Month-End Process

Asset Management
Process Steps Process of Depreciation Run

Box No SAP required
(Process/System)
1 Validate Additions/ Fixed Asset NON- Required at System All period-
Assets Retires/ Manager SAP Level end
before Transfers activities
Run etc., has to make sure
Depreciat perform to
ion before complete
running the before
Depreciatio running
n on Assets depreciati
on. This
is a
Period-
End
Activity.
The following steps should be ensured before running the Depreciation run in the Month End.
Ensure that all the assets have been capitalized and all required entries like addition,
deletion, transfer, settlement of assets under construction etc., are completed
Ensure that all the activities like Acquisition, retirement, posting of parked documents,
impairment, capitalization of Foreign exchange fluctuations, Reconciliation with FI books
are completed.
After ensuring the above activities, carry out Depreciation Run Program. A Batch Input
session will be generated and depreciation posting will be carried automatically in the
background and posts to the respective GL Accounts.
Repeat Run of the Depreciation is possible only for the Current Period.

Asset Management
This process has a direct link with Financial Accounting Module and indirect Link with the
Controlling Module in SAP.
The following are some of the inputs which form part in the process of Depreciation Run.
Company Code, period, planned posting run
Depreciation posting for the period is done for all the Assets in the Company Code.

Module
1 Finance & Financial Month End Depreciation FI AFAB,

Accounts Analyst Run
AFBP
In terms of Quantification the transaction will be on the month end. The Data Volume will be
comparatively high for ABC as it covers the all the Assets under the Company Code.
Transaction and Data Volume for this process will be considerably high in nature

Asset Management
The Frequency of the Processes will be monthly as a part of Month End Activity.
This section explains the Measurable KPIs of the Project.
Less time consuming and online updating of the Depreciation to all the Assets under
Company Code.

Summary
Depreciation Run Currently Assets records and GL accounts will be
Depreciation is updated online.
being booked
Depreciation will be calculated and
through a JV in the
posted automatically against each asset.
Venus System

Asset Management
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL

Asset Management
2.10 PROCESS MODEL LEVEL 3, BUSINESS PROCESS 6 RETIRE ASSETS
Asset retirement is the removal of an asset or part of an asset from the asset portfolio. This
removal of an asset (or part of an asset) is posted from a bookkeeping perspective as an asset
retirement. Depending on organizational considerations, or the business transaction which
leads to the retirement, you can distinguish the following types of retirement:
An asset is sold, resulting in revenue being earned. The sale is posted with a customer.
An asset is sold, resulting in revenue being earned. This sale is without a Customer. The
sale is posted against a clearing account.
An asset has to be scrapped, with no revenue earned.
An asset is sold to an affiliated company (Inter Company - Sale of Asset)

Asset Management
2.10.2 Flow diagram Asset Retirement
HI_FI_AA_05_07 Retire Assets

Trigger
Point
Need to Retire
Assets
YES With Revenue NO

Expected
1
2
Manager
Retirement at
Asset
Retirement Due to
Fixed
Revenue with
Scrapping
Customer

Asset Management
Process Step : Asset Retirement

Retirement In case of Financial SAP Required at
at asset Analyst System Level
Revenue retirement
with with
Customer Revenue
1 and Sale
prices is
more than
the cost
perform this
process
Retirement In case of Financial SAP Required at
due to asset Analyst System Level
Scrapping retirement
without
revenue
2 and sale is
less than
the asset
value then,
perform this
transaction

Asset Management
There are transactions and transaction types in the system for these different retirement types.
Retirement
Sale Scrap
With Without
customer customer
2.10.3.1 Asset Retirement
2.10.3.1.1 Asset Sale with Customer
The system enables you to post the entry to Accounts Receivable, the revenue posting and the
asset retirement in one step. In this posting transaction, you have to post the revenue (debit
A/R, credit revenue from asset sale) first, and then post the asset retirement. An indicator in the
posting transaction specifies that the system posts the asset retirement after the revenue
posting.
2.10.3.1.2 Posting of Gain or Loss
When you use the standard transaction types, the system automatically creates a gain posting
or a loss posting, as well as a revenue clearing entry, in addition to the asset and accumulated
depreciation correction postings. This gain/loss posting, as well as the revenue posting, are not
dependent on the transaction type. The automatic creation of these postings is controlled by
the Gain/loss from retirement indicator in the definition of the transaction type. You can also
choose not to set this indicator, in which case you have to enter the postings manually.
2.10.3.1.3 Retirement without Revenue
A retirement without revenue is the removal of an asset from the asset portfolio without any
revenue, for example, by scrapping. When you use this posting option, the system does not

Asset Management
create revenue and gain/loss postings. Instead it creates a Loss from an asset retirement
without revenue posting in the amount of the net book value being retired.
2.10.3.1.4 Complete/Partial Retirement
An asset retirement can refer to an entire fixed asset (complete retirement) or part of a fixed
asset (partial retirement). In both cases, the system automatically determines, using the asset
retirement dates entered, the amounts to be charged off for each depreciation area. You can
initiate the partial retirement of a fixed asset by entering one of the following:
The amount of the acquisition and production costs being retired
o A percentage rate
o A quantity
When you enter the amount that is being retired, the system determines the percentage to be
retired from the asset using the first depreciation area in which posting is to take place. It
determines the percentage amount of APC being retired in that area, and uses the same
percentage for other areas. You can enter a quantity, provided that you have not specified a
retirement amount or percentage rate. The system interprets the quantity as a ratio to the total
quantity of the asset and thereby determines the asset retirement percentage rate. If
necessary, you can also manually correct the retirement amounts that were calculated by the
system in individual depreciation areas. The system then recalculates the retirement amounts
for that area, and any areas that are dependent on that area.
The asset value date of the retirement is recorded in the asset master record. You cannot
post any transactions with a value date before the value date of the last retirement. If you
nevertheless need to post such a transaction, you must first reverse all retirements that lie
after the value date of the belated posting. After posting the belated transaction, you can then
re-post the retirements.
2.10.3.1.5 Transaction Type (Prior-Year Acquisitions/Current-Year Acquisitions)
Make sure that you select the correct transaction type for both partial and complete retirement.
For the complete retirement of a fixed asset acquired in previous years, always select a
transaction type intended for prior-year acquisitions. A partial retirement can always relate
either to prior-year acquisitions or to current-year acquisitions.
2.10.3.1.6 Proportional Value Adjustments
Based on the value date and period control, the system automatically determines the reference
period for the retirement. The system automatically determines any depreciation (value
adjustments) that is applicable to the part of the asset being retired, up to the reference period
(retirement). The system automatically retires this depreciation at the time of the retirement

Asset Management
transaction. This procedure guarantees that the percentage of the book value that is retired is
identical with the percentage of the acquisition and production costs that is retired.
The standard transaction types delivered by SAP are already defined in this way. The system
uses the transaction type 290 for proportional values with retirements. For transfers it uses
transaction types 390/395 (transfer retirement/acquisition).
The Process of Asset Retirement has direct link with Sales and Distribution, Financial
Accounting and Indirect Link to the Controlling Module.
Receive/prepare a list of saleable/obsolete fixed assets from the concern department
Fixed asset scraped and asset register updated with the scrap transactions.
Fixed Asset is sold and the Asset Register is updated.

Module
1 Finance & Financial Retire Asset with or without FI F-92,

Accounts Analyst Revenue and Customer ABAON,
ABAVN,

Asset Management

Module
ABNE,
ABNK
In terms of Quantification this process transactions is very less and data volume will be
considerably less.
The Usage of Executing the Transaction is very less as per the Business Requirement and
Data Volume will be considerably is less.
The Frequency of the Processes will be as per the Business Requirement.
Process with accuracy and less time consuming.

Asset Management

Summary
Asset Retirement Currently JV is Online Asset Monitoring facility in SAP

being posted in Asset Register available
Venus System and
Integration with Fixed Assets and GL Accounting
no proper Asset
will facilitate automatic posting.
Register
Automatic Entries gets booked for Gain/Loss on
the Sale of Assets
Retired Assets will automatically get removed

from the Asset Register
NIL
NIL
NIL
NIL
NIL

Asset Management
NIL
NIL
NIL
2.11 PROCESS MODEL LEVEL 3, BUSINESS PROCESS 7 ASSET REPORTS
This process defines the extraction of Asset Information from SAP. SAP provides huge number
of Standard Reports in the area of Asset Management.
Asset Reports fulfils the below Business Requirements.
Report for Asset master data with relevant fields

Asset Management
Report for transaction during a period like acquisitions, retirements, transfers etc.
Report based on certain criteria like asset class, company code, locations, Asset
number, etc
Reports on depreciation posted, simulating depreciation etc
History sheet for asset
Asset register
Asset valuation based on depreciation area

Asset Management
2.11.3 Process Flow Diagram
HI_FI_AA_05_08 Fixed Asset Reports

Trigger
Point
Need to generate
Fixed Asset Reports
Fixed Asset Manager
1 3
2 4 5
Asset History Asset Net Book
Depreciation Acquisitions & Other Useful SAP
& Asset Values By Asset
Reports Depreciations Standard Reports
Explorer Class etc.,

Asset Management
Process Steps: Asset Reports

Step Step Outside manageme
Box No SAP nt required
(Process/S
ystem)
1 Asset Asset History Fixed Asset SAP Required at
History & like Manager System
Asset capitalization Level
Explorer date, value,
previous
depreciation
and future
depreciations
also can view
for a asset
2 Depreciation Posted Fixed Asset SAP Required at
Reports Depreciations Manager System
at Asset or Level
Asset Class
wise can view
3 Asset Net Asset class Fixed Asset SAP Required at This will
Book value wise NBV as Manager System show the
by Asset on a particular Level report as
class wise date can view on
execution,
after
immedaite
earlier
depreciatio
n posting
4 Acquisitions All the Asset/s Fixed Asset SAP Required at
& acuisitions or Manager System
Depreciation Depreciations Level
s period-wise or
Asset class
wise can get
the report

Asset Management

Step Step Outside manageme
Box No SAP nt required
(Process/S
ystem)
5 Other All other useful Fixed Asset SAP Required at
standard SAP standard Manager System
SAP reports are Level
Reports readily
available
Many different transactions can occur during an assets life. Such transactions include acquisition
postings, retirements, transfers, and various other adjustments.
2.11.4.1 Hierarchical Reports
Transaction reports are hierarchical in nature. This means that each report has the following:
A main level (usually the asset level)
A subhierarchy below it (usually the actual transactions)
The Hierarchical report summarizes all transactions for this asset on the asset level itself and
shows the individual transaction amounts below the asset. In other words it allows viewing
the report up to the Individual Transaction Level.
The Hierarchical Reports consists of all type of Reports like Asset History, Acquisition
Reports, Asset Transfer, Asset Retirement, Depreciation Reports etc.,
The SAP Standard Reports T.Codes was given in Annexure A below.
Asset Reports are directly linked with GL Accounting and indirectly linked to SD, MM and CO
Modules.

Asset Management
Tracking of Assets Information
Asset Information is taken in SAP

Modul
e
1 Finance & Fixed Asset Inventory List of Assets by FI All standard

Accounts Manager Cost Center, Location, SAP
Asset Class & Plant wise. Information
system
T.Codes
In terms of Quantification this process transactions is very high and data volume will be
considerably high. The Frequency will be daily as per Business Requirement.
The Usage of Executing the Transaction is very high as per the Business Requirement and
Data Volume will be considerably is high.
The Frequency of the Processes will be daily as per the Business Requirement.

Asset Management
Process with accuracy and less time consuming.

Summary
Asset Reporting Currently there is Online Asset Monitoring facility in SAP

no Asset Reporting Asset Register available
in Venus System.
Hierarchical Asset Reports Available
The Information is
Drill down report are available in SAP
being gathered
through Excel
Sheet.
NIL
NIL
NIL

Asset Management
NIL
NIL
NIL
NIL
2.11.15.5 Enhancements Consideration
NIL
3 SOLUTION TRANSFORMATION
3.1 Cross Process related Topics
3.1.1 SAP Organizational Structure
The Organizational Elements impacting for the above process in respect of ABC Organization
structure as detailed below:
Company Code
Chart of Depreciation

Asset Management
Chart of Accounts
Depreciation Area
Asset Classes
Account Determination
Screen Layout(with Asset Master)
Asset Master
Cost Centers & Cost Elements.
The following Business Requirements will be fulfilled with Asset Management in SAP.
Capitalisation of Asset.
Tracking of Asset for fully depreciated asset.
Transfer of Assets from one Cost Centre to another Cost Centre
Sale of Asset
Scrapping of an Asset
Integration with General Ledger Accounting
Calculation and Posting of Depreciation
Maintenance of Fixed Assets Register
Asset Reporting
3.1.3 Design Aspects
Design Aspects covered for ABC in the Asset Management Processes are detailed below:
Chart of Depreciation : Chart of Depreciation for ABC is defined as 1000,
Depreciation Area : Depreciation Area for ABC will be 01 (Book Depreciation Area)
Asset Classes : The following Asset Classes defined for ABC.
1000 : Land
2000 : Buildings
3000 : Plant Machinery & Equipment
4000: Furniture & Fixtures

Asset Management
5000: Vehicles
6000 : Good Will
9000 : Asset Under Construction
Depreciation Method: The Depreciation Method defined for ABC is Straight Line Method.
Number Ranges for Assets: The following number ranges defined for ABC.
AC CODE ASSET CLASS DESCRIPTION NUMBER RANGE
1000 LAND 10000000-10999999

2000 BUILDINGS 20000000-20999999
3000 PLANT MACHINERY & EQUIPMENT 30000000-30999999
4000 FURNITURE & FIXTURES 40000000-40999999
5000 VEHCILES 50000000-50999999
6000 GOOD WILL 60000000-60999999
9000 ASSET UNDER CONSTRUCTION 90000000-90999999
Depreciation Run : For ABC Depreciation Run will be done Monthly as a part of Month End Process.
Year End Process : As a part of Year End process, ABC will Open new Asset Year and Close the
Completed Asset Fiscal Year.
3.1.4 Master Data Concept
3.1.4.1 Introduction to Master Data Asset Master Record
The asset master record contains all information relating to an asset that remains unchanged
over a longer period of time:
Technical master data
Organizational allocations (usually time-dependent)
Depreciation terms
The system stores all the values and transaction data per each asset master record.
Assets can be represented differently in the FI-AA component according to their complexity.
The structure of the master record is identical for all asset main numbers, asset sub-numbers
and group assets. Therefore, the basic procedure for creating any of these objects is
essentially the same.

Asset Management
While Creating of Asset Master Data for ABC, the following Business requirements will be
considered.
Assets will be created by Master Data Administrator under correct Asset class
applicable.
Certain information like depreciation %, depreciation key will be defaulted from the
Asset Class.
Certain fields like insurance data, leasing data are required in the asset master for
recording information.
Depreciation to be on the basis of Straight Line method, which is currently being

calculated manually outside the system
Authorisation profiles to be segregated properly such that Master Data Administrator

having rights to create master data should not have rights for entering transactions
Reporting on assets based on location should be possible for this, Location need to be
entered in Master Data.
Asset Classes are used to structure fixed assets in SAP. All asset master records are
created with reference to Asset Class. It defines certain fields which are defaulted in
asset master data. This ensures that the data in asset master records are handled
uniformly.
Asset class consists of two main sections:
Master data section which contains basic descriptions, Assignment to CO Objects, time
dependent data and other descriptive information
Valuation section which contains data relevant for depreciation like depreciation area,
depreciation key, useful life, start of depreciation date etc
The asset class controls the following fields in asset master:

G/L Account determination
Screen layout of master record
Number range for master record
The asset class defaults the depreciation key and useful life to the asset master records.

Asset Management
3.1.4.2 High-Level Migration Concept
In consideration of the above processes, the strategy of data migration will be in two levels of
uploading the Asset Balances into the System. If the Go live is before December 2011, then
the Balances as of December 2010 will be taken separately in one Data Template and the
current year depreciation till Go Live date will be taken in another Data Template. Both the
Templates will be uploaded into the system and ensure the Balances in Financial Books
Asset Class wise is tallied.
The Relevant Data Templates will be provided to the Business Team for updating, soon after
the Business Blue Print phase is completed.
3.1.5 Roles
Step # User Role Process Description SAP

Module
Vice President Finance All Asset Transactions and Reports FI
1
Financial Controller All Asset Transactions and Reports FI

2
Treasury Manager All Display Transactions and Reports FI

3.
Financial Analyst All Asset Transactions and related Reports FI

4.
Master Data Create Asset Master Data FI

3
Administrator
Support Team Display Asset Details and Reports
4 FI
3.1.6 APPENDIX A for Asset Management Reports

Asset Management
Transaction Title
AW01N Asset Explorer
S_ALR_87011963 Asset balance by Asset Number
S_ALR_87011964 Asset balance by Asset Class
S_ALR_87011966 - ... Asset balance by Cost Center
S_ALR_87011967 - ... Asset balance by by Plant
S_ALR_87011979 - ... Physical Inventory list by Cost Center
S_ALR_87011980 Physical Inventory list by Location
S_ALR_87011981 Physical Inventory list by Asset Class
S_ALR_87011982 Physical Inventory list by Plant
S_P99_41000192 Posted depreciation by asset and posting period
S_ALR_87010175 Posted depreciation, related to cost centers
S_ALR_87012026 Depreciation Current Year
S_ALR_87012030 Insurance Values
S_ALR_87012048 Asset transactions
S_ALR_87012050 Asset Acquisitions
S_ALR_87012052 Asset Retirements
S_ALR_87012054 Intra - company Asset Transfers
AR01 Asset Values
AR03 Depreciation Values
OARP More Reports

Asset Management
4 SYSTEM LANDSCAPE
4.1 PLANNED / AFTER GO-LIVE
4.1.1 Requirements for the Authorization concept
(Final Authorization matrix will be given at the time of User Acceptance Testing)
4.1.2 Necessary IT systems required.
4.2 ACTUAL / BEFORE THE PROJECT LAUNCH
Currently stand alone systems are being used by individual divisions
4.2.1 Required for the Authorization concept
4.2.2 Necessary IT systems required.

Asset Management
5 GLOSSARY
Terms Explanation
The Master data maintenance component is used for
recording the master data of Fixed Assets on an individual
Asset basis. A Fixed Asset is defined as an individual
economic good that it is recognized in the balance sheet at
the time of closing, and is in the long-term service of the
Asset Master Data enterprise
Charts of depreciation are used in order to manage various
legal requirements for the depreciation and valuation of
assets. These charts of depreciation are usually country-
specific and are defined independently of the other
organizational units. A chart of depreciation, for example,
Chart of Depreciation can be used for all the company codes in a given country
Asset classes are the most important means of structuring
fixed assets. You can define an unlimited number of asset
classes in the system. You use the asset classes to
structure your assets according to the requirements of your
enterprise. Asset classes apply in all company codes. The
asset class catalog, therefore, is relevant in all company
codes in a client. The preceding is also true when the
company codes have different charts of depreciation and
Asset Class therefore different depreciation areas.
For internal accounting, you generally need to assign asset
Assignment to Cost Centre & Profit costs to cost centers. Therefore, you can assign each asset
Centre in Asset Accounting to exactly one cost center. You make

Asset Management
Terms Explanation
this assignment in the asset master record. At the level of
the cost center, you can then
Post all depreciation and interest for the asset
Plan all future depreciation and interest
Statistically post gain or loss from the sale of assets
Assets under construction are a special form of tangible
assets. They are usuallydisplayd as a seperate balance
sheet item and therefore need a separate account
Asset Under Construction determination in their asset classes.
Using the Asset Accounting (FI-AA) component, you can
automatically update all relevant transactions to the general
ledger. These include all accounting transactions that are
posted to assets, and all changes to asset values that are
automatically calculated by the system (particularly
depreciation). This update takes place immediately online
for the master depreciation area. For all other depreciation
Account Determination (Account areas, this update is either direct or takes place during
Assignment) periodic processing
Use depreciation areas to calculate different values in
parallel for each fixed asset for different purposes. For
example, you may require different types of values for the
balance sheet than for cost accounting or tax purposes.
Manage the depreciation terms and values necessary for
this valuation in the depreciation areas of each asset. Since
the system allows you to define up to 99 depreciation
Depreciation Area areas.
The depreciation key contains the value settings which are
necessary for determining depreciation amounts. It
represents a combination of calculation rules, which are
used for the automatically calculated depreciation types
Ordinary depreciation
Special depreciation
Depreciation Key Imputed interest
The location is handled the same as the plant. In addition
to a plant, you can make a time-dependent assignment of
Location the asset to a location.

Asset Management
5.1 APPENDIX
NIL
5.2 REFERENCES/BIBLOGRAPHY
NIL

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SAP FI - Asset Management

Document/ File Name

Project Folder Path

Version Revision Date Revision Description Author/ Reviewer Signature

NAME TITLE DATE SIGNATURE

SAP Implementation Project Page 2 of 86

SAP Implementation Project Page 3 of 86

2.6.1 Short Description of the Process................................................................................................. 31

SAP Implementation Project Page 4 of 86

2.7.10.1 Status of KPIs before the Project............................................................................................ 46

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2.9.4 Written Explanation ..................................................................................................................... 58

SAP Implementation Project Page 6 of 86

2.10.9.2 Target KPIs............................................................................................................................. 68

SAP Implementation Project Page 7 of 86

3.1.3 Design Aspects ........................................................................................................................... 78

SAP Implementation Project Page 8 of 86

1.1 M ANAGEMENT EXECUTIVE/SUMMARY

SAP Implementation Project Page 9 of 86

1.2 BASIC DOCUMENTS

Document ID Document Name

ABC_BBP_FI_Workshop Report_Asset Workshop Report

1.3 PROJECT CHARTER

Project Charter Mission & Benefits:

Enable more effective use of resources

Reduction of paper work that promote concept of paperless office.

SAP Implementation Project Page 10 of 86

Simple and shortened close at month and year-end.

The project sponsor Mr. XYZ ordered this project on 07.11.2010.

1.4 PROJECT SCOPE/SCOPE DOCUMENT

The highlights are:

SAP Implementation Project Page 11 of 86

The current version of the complete project scope is available at (path).

Financial Accounting Asset Plan & Acquire HI_FI_AA_05_02

SAP Implementation Project Page 12 of 86

1.5 SIGNIFICANT CHANGES TO THE CURRENT STATUS

ABC maintains asset master and asset classes in MS Excel sheet.

Division. Remaining assets are procured by Procurement Department at H.O.

Asset Under Construction:

Sale of Asset & Scrapping of Asset:

SAP Implementation Project Page 13 of 86

SAP Implementation Project Page 14 of 86

2 BUSINESS PROCESS MODELLING

2.1 CROSS PROCESS RELATED TOPICS

2.2 INFORMATION CARRIER MODEL

The document is based on the following:

Customer Inputs from Business Blueprint Workshop and Workshop Reports.

SAP Implementation Project Page 15 of 86

2.3.1 Flow Chart:

GENERAL LEDGER ACCOUNTS ACCOUNTS ASSET BANK

Maintain Chart of Process Customer Invoice Process vendor invoices

Run Accrual and HI_FI_AP_03_05

SAP H Implementation Project Page 16 of 86

2.4 PROCESS MODEL LEVEL 2, PROCESS GROUPS ASSET M ANAGEMENT

The requirements are:

SAP H Implementation Project Page 17 of 86

Maintenance of Fixed Assets Register

SAP H Implementation Project Page 18 of 86

2.4.2 Flow Chart:

GENERAL LEDGER ACCOUNTS ACCOUNTS ASSET BANK

Maintain Chart of Process Customer Invoice Process vendor invoices

Run Accrual and HI_FI_AP_03_05

SAP H Implementation Project Page 19 of 86