assets management.ppt
DESCRIPTION
Asset In SAPTRANSCRIPT
Acquisition of Assets
Invoice Verification
Receipt, Classification and recording
Documentation and General
AGL-Assets Management
Insurance of Assets
Disposal / Write off of Assets
Inter Unit Transfer
Depreciation Run
Purchase Requisition along with Justification, Quotations and Comparative Statement received by Finance departmentFinance department Checks the budgetFinance department prepares RFAPurchase department issues Purchase order to approved supplierAssets received by Gate office and Stores department prepares the GRNConcerned department issues Job Completion certificateFinance Department receives the GRN, Invoice and Job Completion Certificate
PR Raised
Req
uisi
tD
epar
tmen
t
Budget Approved
Fina
nce
Gat
e / S
tore
Vend
orPu
rcha
se (
Loca
l /C
entra
l )
RFA Preparation
PR Received Quotation Invite
Copy of PRReceived
ComparativeStatementPrepared
PO Issued toVendor
PO Received
Assets Receivedwith Invoice
GRN Preparation
Job CompletionCertificate
Invoice
GRN
Job ComplitionCertificate
Assets Acquisition – Flow Chart and Write-up
Invoice from suppliers against Assets is received by the Purchase department Invoice, after verification for Quantity and comparing value with PO, is forwarded to Accounts Payable for initializing payment process In case the quantity, specification or rate does not match, the invoice is returned back to supplier for correction
Invoice fromSupplier
Sup
plie
rA
ccou
nts
Pay
able
Loca
l Pur
chas
e
Compare withPurchase Order
Complied with
Returned forcorrection
For Paymentprocess
YES
NO
Satisfaction Report
NO YES
Invoice verification – Flow Chart and Write-up
Gate office receives an Assets and informs to concerned departmentConcerned department checks the specification of AssetsStore department prepares the GRNFinance Department receives the Documents (GRN, Invoice and Job Completion Certificate) After the 3-way matching, assets are classified and posted into FAR and GL
Job CompletionCertificate
Invoice
Receiving ofDocument
GRN
Sup
plie
rFi
nanc
eG
ate
Offi
ce Receipt of Assets Complied with
Quality Check
3-Way Match
YES
Con
cern
edD
epar
tmen
t
NO
Return toSuppliers
Preparation ofGRN
Classification ofAssets
Recording in GLand FAR
Tagging of Assets
Receipt, Classification and Recording – Flow Chart and Write-up
Head Office Invites Quotation for InsuranceHead Office prepares Comparative Statement ( Time of Loss , Amount of Premium )Corp Off. selects the insurance company and pays premium, insurance company issues the cover noteLocation Finance reviews the Assets and intimates the Head Finance for Addition and DamageInsurance Company issues cheques for the settled amounts against claims and location receives cheque, and after proper approval assets are deleted from Fixed Assets Register
QuotationSubmitted
Insu
ranc
e C
ompa
nyC
orpo
rate
Offi
ce
Selection ofInsuranceCompany
ComparativeStatement
Loca
tion
Fina
nce
Payment ofPremuim
Cover NoteReceived
Quotation forInsuranceReceived
Issuance of CoverNote
Periodic Review ofAssets
Addition / LossIntimation
Settlement of Loss(Cheque Issue)
Cheque Received
Insurance – Flow Chart and Write-up
Buying Location prepares the RFTA and sends it to Selling Location, Selling Location then forwards it to Unit office after necessary approvalsUnit Office forwards the RFTA to Head office after appropriate approvalSelling Location transfers the Assets along with ST Invoice and Debit Note to the Buying Location after the approval from Head officeBuying and Selling Locations update their books of Accounts and Fixed Assets Register accordingly
Uni
t offi
ceC
orpo
rate
Offi
ceB
uyin
g Lo
catio
nS
ellin
g Lo
catio
nReturn to Location
Preparation ofRFTA
RFTA Signature
Approval of RFTA
Approval of RFTA
Approval
YES
NO
Approved RFTAAssets Transfer
with Invoice / DebitNote
Assets Receivedwith ST Invoice /
Debit Note
Updation of GLand FAR
Updation of GLand FAR
Open / CloseRFTA
Open / CloseRFTA
Inter Unit Transfer – Flow Chart and Write-up
Depreciation Method --Straight Line/ Units of
production/ Diminishing balance method
Conventions Used- Mid month
Mid Year
Parameters Collections— Asset Class
Depreciable AmountAsset life
Salvage value
Depreciation Calculation FormulaDepreciation document-
Monthly JV
Depreciation posting in Accounts
Depreciation Run – Flow Chart and Write-up
Depreciation run in SAP is automatic and it’s managed by a Depreciation Key for a type of an asset
RFA is prepared with justification for Write off / Disposal of AssetsRFA is forwarded to Unit office for Approval, Unit office then forwards it to Head office for further approvalLocation writes off and updates it in Accounts and the Fixed Assets RegisterQuotations are received and a comparative statement is prepared for disposal of AssetsSale proceeds are documented and recorded in accounts
Cor
pora
te O
ffice
Loca
tion
Return to Location
Uni
t Offi
ce
Updation of GLand FAR
RFA for Disposal /Write Off
RFA ReceivedApproval
RFA ReceivedApproval
YES
NO
Disposal Process
Quotation forDisposal
ComparativeStatement Sales Proceed
GL Updated
Disposal / Write Off – Flow Chart and Write-up
Asset Categories•Fixed Assets•Capital Work In Progress (C.W.I.P)•Low value Assets (For collective management of LVA)
Classification of Fixed Assets•Land – Free hold•Land – Lease hold•Building on Freehold Land•Building on Leasehold Land•Land Improvements•Leasehold Improvements•Plant & Machinery•Ancillary Equipment•Laboratory Equipment•Generators•Product Tanks•Office Equipment•Air Conditioner Equipment•Fork Lifters•Pre-Mix Machine•Post-Mix Machine
Documentation and General Write-up – ( Assets )
• Chest Coolers / Deep Freezers
• Visi-Coolers
• Co2 Gas Cylinders
• Automobiles
• Route Trucks- Heavy
• Route Trucks- Light
• Furniture & Fixture
• Computer Equipment
• Computer Software Purchased
• Computer Software Developed
• Post Mix Cylinders
• Pre Mix Cylinders
Classification of C.W.I.PCapital Work In Progress- BuildingCapital Work In Progress- Plant & MachineryCapital Work In progress- Office EquipmentCapital Work In Progress- InventoryCapital Work In Progress- Others
Low value Assets (LVA) AGL doesn’t maintain a category of LVA
CapitalizaionTaggingSubsequent ExpenditureDetailed Property RecordsAuthorisation and approval of capital expenditure itemsPhysical verificationAssets maintenance with third party and documentationRecognition of losses on Disposal of fixed assetsRevaluation of Fixed AssetsPolicy revision impact Depreciation forecastsReports
Documentation and General Write-up – ( Assets )
Master Data Maintenance- Assets
Master Data DefinitionThe data that remains static for a long period of time. It’s a term normally used when talking of a database software.
Examples are:
Chart Of Accounts
Customers Master
Vendor Master
Material Master
Assets Master
Purpose of Master Data Master data is helpful in designing a relational database management system (RDBMS) and it’s of primary importance. Day to day transactions, documents and
processes very frequently make use of master data available in master tables and use of this data speeds up transaction recording, document processing and occurrence of such business processes.
Asset Master Data Asset master is a collection of data elements like e.g. Asset ID, Asset Name, Description, Type, Acquisition Cost, Capitalization Date, Useful life, etc. etc.
Asset Master In SAP First screen that captures data to create an asset
Asset Master In SAP Second screen that captures data to create an asset- General tab
Asset Master In SAP Second screen that captures data to create an asset- Time-dependant tab
Asset Master In SAP Second screen that captures data to create an asset- Depreciation areas tab
Asset Master In SAP Message- Asset created
Asset Master In SAP
1-Asset Class 2-Asset Class Description 3-Asset Main Number 4-Asset Main Number Text 5-Asset Sub-number 6-Sub-number item name 7-Account Determination 8-Inventory Number 9-Inventory Indicator 10-Manufacturers serial no. 11-Quantity 12-Unit Of Measure 13-Capitalization Date 14-First Acquisition On 15-Acquisition Year 16-Acquisition Month 17-Business Area 18-Cost Centre
19-Resp. Cost Centre 20-Plant 21-Location 22-Room 23-License plate no. 24-Personnel No. 25-Supplier 26-Manufacturer 27-Country of Origin 28-Depreciation Areas Applicable 29-Depreciation Key 30-Useful Life 31-Per 32-Depreciation calculation start date 33-Land register map number 34-Plot No. 35-Land Area 36-Area Unit Of Land
SAP provided master data elements for assets
1-Engine number 2-Chasis number 3-Make 4-Model 5-Type 6-Year of manufacture 7-Horse power / cc 8-Seating / carrying capacity
Data elements used in AGL not covered in SAP
Asset acquisition in SAP Purchasing department starts creating “PO”
Asset acquisition in SAP “PO” form is requiring an asset reference
Asset acquisition in SAP Asset From master data being selected for ordering
Asset acquisition in SAP Selected asset automatically reveals the “GL” account
Asset acquisition in SAP Newly created “PO” number
Asset acquisition in SAP Receipt of an Asset and GRN
Asset acquisition in SAP Asset acquisition has been booked
Asset acquisition in SAP Asset Explorer- acquisition cost and planned monthly depreciation
Asset acquisition in SAP Planned annual depreciation as soon as the asset is booked
Uploading Legacy Data in SAP First screen that captures data to create an asset
Asset acquisition in SAP First screen that captures data to create an asset
Asset acquisition in SAP First screen that captures data to create an asset