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Summer training
 

Summer training

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    Summer training Summer training Document Transcript

    • Levels of an Asset Management SystemAssets can be defined at many levels and this is a common source of confusion about the nature and priorities of‘Asset Management’.PAS55 seeks to clarify the need for layered integration of what needs to be done - from life cycle optimisation ofdiscrete components or equipment items up to the sustained value-for-money obtainable from organization’s wholeportfolio of systems, networks, information, people, knowledge etc.In each layer of increasing systems complexity, different problems and goals tend to be perceived, but theunderlying challenges of optimizing the blend of costs, performance, risks and sustainability exist. The PAS55 expectations of good asset management include such systems integration awareness, andrequire us to manage assets at levels of ‘granularity’ appropriate to value contribution or business criticality.For more detail, case studies and other useful insights into the subject and how it is implemented in differentenvironments, please go to the Asset Management Body of Knowledge (IAM members only)
    • CREATE MAIN ASSETPURPOSE: This transaction is used to create asset master records. The creation of mainAsset is very critical in nature, as the depreciation rates are assigned to asset Classes.PREREQUISITES: Asset under construction (AUC) assets.MENU PATH: To go to the create asset: initial screen, use the following path: ACCOUNTING- > FINANCIAL ACCOUNTING- > FIXED ASSETS- >ASSET ->CREATE->ASSETTRANSACTION CODE: AS01 DESCRIPTION OF FIELDS1. DESCRIPTION:
    • Description is the name of the asset created which we want to be maintained.It means description of asset created e.g. COMPUTER. Description is the mostimportant field from which we can search the asset later, so we must be careful towrite the correct description of the asset.2.ASSET MAIN NO.TEXT:Used in reporting and accessing totals via asset main number. ThisField will have default value same as asset description.3.ACCOUNT DETERMINATION:The account determination determines the reconciliationAccounts in the general ledger, as well as their offsettingAccounts that are to be posted when certain businessTransactions are carried out. This field will be filled by defaultFrom the asset class.4.SERIAL NUMBER: For new assets that are created, this field can be used to capture the serialnumber of the manufacturer. The serial number maybe required when makinginquiries of the manufacturer. The serial number enables the manufacturer touniquely identify the asset.5.INVENTORY NUMBER:This field contains an inventory number for the asset in this field. The inventory number is output in thestandard inventory list for asset accounting. The inventory number will be auto generated in this field by thesystem it will be shown after posting values to the asset.6.QUANTITY:Quantity is to be mentioned for all assets. This is a mandatory field in this screen in asset accounting. Forassets in which a base unit of measure is entered. You can enter a quantity when you post acquisitions andretirements. Please always check after every transaction that the field is correctly updated. For instance afterretiring the asset the quantity will automatically be updated yet it is always safe to check once.7.UNIT OF MASURE:
    • Unit of measure has to be mentioned to supplement the quantity figure. A list of units of measure is available in the drop down menu.8.MANAGE HISTORICALLY: Set this indicator if you want the system to mange the asset with a history. Active history management has the following effects: the asset is displayed in an asset chart. The asset and the values belonging to it cannot be reorganized until the asset is deactivated. Ticked by default.9.LAST INVENTORY ON: You can enter the date of the last inventory in this field.10.INCLUDE ASSET IN INVENTORY LIST: Set this indicator if you want the asset to be counted in a physical inventory. This indicator ensures that the asset is included in the standard inventory list of asset accounting. Assets without this indicator are not output by the report. Ticked by default.11.INVENTORY NOTE: In this field you can specify additional asset information for the physical inventory report.12.CAPITALIZED ON: The system enters the asset value date of the first posting that results in the capitalization of the asset in the field. The capitalization date is the value date of an asset. This date is not to be entered while creating an asset. The date gets automatically updated when the first acquisition is posted to it through settlement of AUC.13.DEACTIVATION ON: The system enters the asset value date of the retirement posting for a full retirement in this field. Once an asset has been deactivated, you can no longer post to the asset. In order for you to be able to make correction postings after an asset has been deactivated, you can also manually change the deactivation date in the asset master record.14.FIRST ACQUISITION ON: The system automatically sets the asset value date of the first acquisition posting in this field. For transferred assets, this is the field in which the system stores the capitalization date of the original asset.15.PLAN RETIREMENT ON:
    • You enter a date here for the planned retirement date of the asset. This date has got nothing to do with the depreciation rate of the asset or the depreciation calculation, which is actually booked. This filled can be used for reporting purposes.16.ACQUISITION YEAR: The system automatically enters the fiscal year of the first acquisition postings in this field based on the asset value date.17.ORDERED ON: Date of order of the asset. It is to enter manually. .
    • DESCRIPTION OF FIELDS1.COST CENTER:The SAP system uses the cost center assignment in the asset master record to determine the cost center affectedwhen the following types of asset posting are made:1. Fixed asset depreciation2. Gain/loss from asset salesAll cost centers within ATL have a unique cost center code that is available in a drop down. For assets that arepurchased for district offices etc, the cost center mentioned is the ATL location to which these assets belong.Cost center is relevant to book depreciation on the asset. This field is relevant to get a standard report from SAPsorted on the basis of cost centers.2.RESPONSIBLE COST CENTER:Cost center that is responsible for the asset, but which does not carry the depreciation for the asset. You can usethe plant assignment in the asset master record to perform plant-specific analysis in assets accounting. All plantswithin ATL have a unique plant code that is available in a drop down.4.LOCATION:At ATL, this field is not proposed to be used.In this field you can designate a specific room for the asset. The field is used as a sort criterion in reports.6.PERSONNEL NUMBER:The personnel number is the only feature within a client, which is unique to an employee. You have to enter apersonnel number before you can display and maintain an employee’s master data and time data. Assigningassets to a personnel number enables you to perform evaluations within asset accounting for specific personnelnumbers. Personnel number is the employee code of the employee.7.ASSET SHUTDOWN:
    • Set this indicator if you want to shut down the asset for the displayed periodof time. No depreciation will be calculated for assets that have been shut downwhen you use an appropriate depreciation key.
    • DESCRIPTION OF FIELDS 1.SEGMENT: Evaluation groups’ server to classify fixed assets in any way you need. You can enter the valid entries for these evaluation groups from the drop down menu. Evaluation groups are mandatory to assign. 2.PHYSICAL LOCATION: You can enter the relevant physical location of the asset from the drop down menu. ` 3.PROJECT CLASSIFICATION: You can enter the relevant project classification of the asset from the drop down menu. This EV is mainly meant for identifying project assets. 4.EVALUATION GROUP 4: This field is not proposed to be used at present. 5. EVALUATION GROUP 5: This field is not proposed to be used at present. MENT REASON: This field specifies the reason foe an asset investment.ONMENTAL INVESTMENT: You can enter the reason for an environmental investment in this field. This field is activated only if investment reason is environmental investment. This field can be used, for example, as a sort of criterion for asset reporting. You can use these reports as a basis for statistical reports for government offices.SUPER NUMBER: Asset super number, to which an asset is to be assigned. Several assets can be assigned to an asset super number. Data relating to the asset super number can be analyzed together.RONIZATION:
    • Specifies that the system automatically create an equipment master record when an asset is created, and enters values from the asset in the fields of the equipment master record. Changes to the asset master record are also reflected in the equipment master record. In this way, you are able to guarantee that certain master data fields in the asset and equipment master record always have the same values. The field is completed based on the conditions set in customizing for the synchronizing for the synchronizes those fields for which field assignments were entered and activated in customizing. While entering allocations screen, it is required to select one of the equipment categories out of four 1.PLANT AND MACHINERY-FACTORY 2.WATER SUPPLY INSTALLATION-FACTORY 3.ELECTRICAL INSTALLATION-FACTORY 4.AIR-CONDITIONING AND REFRIGERATION-FACTORY 5.POLLUTION CONTROL RQUIPMENT Before you save the asset, the system displays the customizing settings for creating an equipment master record from an asset master record. After you save, it displays the settings for changing equipment master records.MENT NUMBER: Number by which a piece of equipment can be clearly identified. It will be displayed after saving the asset.MENT CATEGORY: Key for distinguishing individual technical objects according to their use. Possible uses might be machinery, device, production resource/tool, and customer equipment.T TYPE: Type of technical object.IPTION TECHNICAL OBJECT: Description of technical objects in the form a short text. It will be populated from description of the asset.
    • DESCRIPTION OF FIELDSR: This field is used to capture the vendor code. In case, the asset has been purchased against a purchase order, the vendor name listed in the purchase order gets automatically updated in the asset master record. In other cases, this can be updated manually while creating AUC assets. In this field we will mention the vendor name to keep the history of the asset and if the vendor is not a one-time vendor than the same can be searched from the drop down available. ACTURER: You can enter the manufacturer of the asset in this field. This field is currently for informational purposes only.PURCHASED NEW: Set this indicator if the asset was purchased new. This indicator is currently for informational purpose only.PURCHAED USED: Set this indicator if the asset was second-hand when it was acquired.NG PARTNER: At ATL, this field is not proposed to be used.RY OF ORIGIN: In this field you can specify the country of origin for the asset. By this field, imported assets can be separately identified. AL ASSET: This field contains the number and sub-number of the original asset, which was transferred to the asset being displayed. For example, the system stores the number of the asset under construction in this field that was settled to the displayed asset. If more than one transfer has taken place, the system displays the asset number of the first transfer here.RED ON: Date of acquisition of original asset. AL VALUE: Acquisition value in which the asset before the asset transfer. This field is not automatically filled; you need to maintained it manually.
    • DESCRIPTION OF FIELDS CATION KEY: Using this key you can classify the fixed assets by net worth tax criteria.TY INDICATOR: Using this indicator, you can classify the fixed assets according to property law requirements.ICE: You can enter the appropriate tax office for the piece of real estate in this field.OTICE: You can enter the date of the last notice of assessment in this field.OTICE TAX NO.: You can enter the tax number of the notice of assessment in this field.ALITY: In this field you can enter the local authority responsible for the real estate. You can enter the area of the land in this field. Unit of area for entering surface areas.
    • DESCRIPTION OF FIELDS The insurance type defines the most important control features for determining the insurable value of an asset. Here you have to enter appropriate insurance type from the drop down menu. PANIES: You can use this key to define the insurance company, with which the asset is insured from drop down menu. ENT NO.: You can enter the insurance policy number for the asset in this field.MENTARY TEXT: You can enter additional text relating to the insurance data for the asset in this field. ATE: Date from which the asset is insured. Once you have entered an insurance type in the asset master record, the system uses the capitalization date of the asset to calculate the base insurable value. You enter an insurance rate in the asset master record in this field. This field currently serves informational purposes only. It has no affect on the calculation of the insurance value.ERIES: You can enter an index series for determining the insurable value in this field. EAR CHANGE: Fiscal year in which the insurable value for the asset. If the insurable value is to be maintained manually, the flag “manual update” should be set.
    • DESCRIPTION OF FIELDS COMPANY: Company with which the leasing contract was made. For leased assets that require capitalization, the periodic lease payments are posted as payables against the vendor Once the automatic opening entry has been made.ENT NUMBER: Specify the number of the lease in this field. This field is currently for in formational purposes onlyENT DATE: You can enter the date of the leasing contract in this field. This field is currently for informational purposes only.TART DATE: Date on which the leasing contract begins. For leased assets that require capitalization, payments will be posted as payables to the vendor beginning on this date when the opening posting is automatically entered. At the same time, this date serves as the value date for the capitalization of the leased asset.ENGTH: Enter the length of the leasing agreement here in fiscal years. If the length of the lease exceeds a year, enter the additional time in fiscal periods. For example, a lease that runs for 18 months is entered as 1 year and 6 months. The leasing type enables you to categorize the various forms of lease contracts. The leasing type also contains the following posting information: transaction type, document type, sales tax indicator, and posting key for the leasing liabilities. The above information is required for the posting of the opening entry for leased asset that to be capitalized.LUE AS NEW: You can specify the estimated market price of the leased asset here. The theoretical purchase price can be displayed in the standard leasing report as the statistical acquisition cost.SE PRICE: You can enter the purchase price of the leased asset after the lease has expired. This field is currently for informational purposes only.T CYCLE: The lease payment cycle determines the periodic intervals at which lease payments are made.CE PAYMENT:
    • Set this indicator, if the payments to the lessor are to be paid in advance. The advance payment method has two effects in the system.PAYMENT: As the lease payment you should specify the amount, which is regularly paid to the lessor at intervals specified in the leasing cycle.
    • DESCRIPTION OF FIELDSATION AREA: Each depreciation area is set up to handle depreciation for a particular purpose. Every depreciation area belongs to at least one chart of depreciation, and is managed independently from other depreciation areas. However, you can define depreciation areas so that it is possible to use one area to check the values of another area, or so that one area can take over values from another areaATION KEY: The depreciation key controls the valuation of the asset in the particular depreciation areas. The depreciation key consists of the following: calculation method for the automatic calculation of interest, ordinary and special depreciation, and various control indicators.LIFE: In case of ATL, useful life has got no significance for most asset classes as far calculation of depreciation goes because depreciation rates are stated percentages which are defined by companies act 1956 and income tax act 1961.ATION START DATE: Automatically populated from depreciation key, check the depreciation start date will be the first day of the month in which capitalization is done. Index series for the calculation of replacement values based on the acquisition and production costs or the replacement value from the previous year. By using indexing of asset values, you can take price changes into account that result from- inflation, technological advancement.
    • ACQUISITION OF ASSETS AGAINST EMPLOYEE ADVANCESOSE:ript describes the process of posting asset acquisitions against advances given to employees. Advances to employees ares per employee’s entitlements in HR module. Advances are treated as down payments in SAP. Employees are treated ass in SAP. When hard furnishing advance is given the employee vendor account is debited and when the advance isd the vendor account gets credited and asset will get debited. This accounting will happen in AP and asset modules inEQUISITES:yee should have taken a capital advance for the purchase of furniture item under hard furnishing/ own your car scheme.atively, if employee has taken no advance and bill is settled directly, then it is required to show advance payment firsten capitalize it using this transaction. PATH:o the asset acquisition to clearing account: header data screen, use the following menu path:ACCOUNTING->FINANCIAL ACCOUNTING->ASSET ACCOUNTING->POSTINGS->EXTERNAL ASSET ACQUISITION->CLEARING OFFSETTING ENTRYSACTION CODE:
    • DESCRIPTION OF FIELDS UMENT DATE: The document date is the date on which the original document is issued. The document date entered here will be taken as asset value date by the system.TING DATE: The date when the document is entered in financial accounting or controlling. UMENT TYPE: This will be defaulted as AP type of document posted. Therefore no need to enter.MPANY CODE: The company code in which the transaction is being carried out OD: In the case of accounting documents, the period to be updated is either taken from the posting date or, if a special date or, if a special period is to be updated instead of the last period of a fiscal year, entered manually. System will update it based on posting date. RENCY/RATE: Mention INR as the document currency. UMENT NUMBER: Generated by system automatically. ERENCE: Capture the invoice number here. NSACTION TO BE PROCESSED: Select the option “transfer posting with clearing” put a tick here to carry out the transaction.STING KEY: Do not mention any posting key just go to choose open items.
    • DESCRIPTION OF FIELDSMPANY CODE: This will get defaulted. OUNT: Mention the vendor account number. You will mention the employee number as given by SAP. OUNT TYPE: Mention the account type as K for vendors.CIAL G/L INDICATOR: Mention special G/L indicator as K IN CASE OF FURNITURE ADVANCE AND m in case of vehicle advance to the employees.