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Assets Management.ppt

Date post: 01-Dec-2015
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Asset In SAP
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Page 1: Assets Management.ppt
Page 2: Assets Management.ppt

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

Page 3: Assets Management.ppt

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

Page 4: Assets Management.ppt

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

Page 5: Assets Management.ppt

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

Page 6: Assets Management.ppt

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

Page 7: Assets Management.ppt

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

Page 8: Assets Management.ppt

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

Page 9: Assets Management.ppt

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

Page 10: Assets Management.ppt

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

Page 11: Assets Management.ppt

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 )

Page 12: Assets Management.ppt
Page 13: Assets Management.ppt

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.

Page 14: Assets Management.ppt

Asset Master In SAP First screen that captures data to create an asset

Page 15: Assets Management.ppt

Asset Master In SAP Second screen that captures data to create an asset- General tab

Page 16: Assets Management.ppt

Asset Master In SAP Second screen that captures data to create an asset- Time-dependant tab

Page 17: Assets Management.ppt

Asset Master In SAP Second screen that captures data to create an asset- Depreciation areas tab

Page 18: Assets Management.ppt

Asset Master In SAP Message- Asset created

Page 19: Assets Management.ppt

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

SAP-07
To be discussed in MC meeting
Page 20: Assets Management.ppt

Asset acquisition in SAP Purchasing department starts creating “PO”

Page 21: Assets Management.ppt

Asset acquisition in SAP “PO” form is requiring an asset reference

Page 22: Assets Management.ppt

Asset acquisition in SAP Asset From master data being selected for ordering

Page 23: Assets Management.ppt

Asset acquisition in SAP Selected asset automatically reveals the “GL” account

Page 24: Assets Management.ppt

Asset acquisition in SAP Newly created “PO” number

Page 25: Assets Management.ppt

Asset acquisition in SAP Receipt of an Asset and GRN

Page 26: Assets Management.ppt

Asset acquisition in SAP Asset acquisition has been booked

Page 27: Assets Management.ppt

Asset acquisition in SAP Asset Explorer- acquisition cost and planned monthly depreciation

Page 28: Assets Management.ppt

Asset acquisition in SAP Planned annual depreciation as soon as the asset is booked

Page 29: Assets Management.ppt

Uploading Legacy Data in SAP First screen that captures data to create an asset

Page 30: Assets Management.ppt

Asset acquisition in SAP First screen that captures data to create an asset

Page 31: Assets Management.ppt

Asset acquisition in SAP First screen that captures data to create an asset


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