Assets Management.ppt

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Asset In SAP

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  • Acquisition of Assets

    Invoice Verification

    Receipt, Classification and recordingDocumentation and GeneralAGL-Assets ManagementInsurance of AssetsDisposal / Write off of AssetsInter Unit TransferDepreciation 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

    Assets Acquisition Flow Chart and Write-up

    PR Raised

    Budget Approved

    RFA Preparation

    PR Received

    Quotation Invite

    Finance

    Copy of PR Received

    Gate / Store

    Comparative Statement Prepared

    Requisit Department

    PO Issued to Vendor

    PO Received

    Vendor

    Purchase ( Local / Central )

    Assets Received with Invoice

    GRN Preparation

    Job Completion Certificate

    Invoice

    GRN

    Job Complition Certificate

  • 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 correctionInvoice verification Flow Chart and Write-up

    Invoice from Supplier

    Complied with

    Compare with Purchase Order

    Returned for correction

    Supplier

    Accounts Payable

    Local Purchase

    For Payment process

    YES

    NO

    Satisfaction Report

    NO

    YES

  • 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 GLReceipt, Classification and Recording Flow Chart and Write-up

    NO

    Complied with

    Receipt of Assets

    Quality Check

    Concerned Department

    Supplier

    Finance

    Gate Office

    3-Way Match

    Return to Suppliers

    YES

    Preparation of GRN

    Job Completion Certificate

    Invoice

    Receiving of DocumentGRN

    Classification of Assets

    Recording in GL and FAR

    Tagging of Assets

  • 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 RegisterInsurance Flow Chart and Write-up

    Comparative Statement

    Selection of Insurance Company

    Issuance of Cover Note

    Location Finance

    Quotation for Insurance Received

    Insurance Company

    Corporate Office

    Payment of Premuim

    Periodic Review of Assets

    Addition / Loss Intimation

    Settlement of Loss(Cheque Issue)

    Cheque Received

    Cover Note Received

    Quotation Submitted

  • 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

    Inter Unit Transfer Flow Chart and Write-up

    Approved RFTA

    Preparation of RFTA

    RFTA Signature

    Assets Transfer with Invoice / Debit Note

    Approval

    Selling Location

    Unit office

    Corporate Office

    Buying Location

    Approval of RFTA

    Return to Location

    Approval of RFTA

    Assets Received with ST Invoice / Debit Note

    YES

    NO

    Updation of GL and FAR

    Updation of GL and FAR

    Open / Close RFTA

    Open / Close RFTA

  • Depreciation Run Flow Chart and Write-upDepreciation run in SAP is automatic and its 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 Disposal / Write Off Flow Chart and Write-up

    RFA Received

    Return to Location

    Disposal Process

    Approval

    Quotation for Disposal

    Unit Office

    RFA for Disposal / Write Off

    Corporate Office

    Location

    Updation of GL and FAR

    RFA Received

    Approval

    YES

    Comparative Statement

    NO

    Sales Proceed

    GL Updated

  • Chest Coolers / Deep FreezersVisi-CoolersCo2 Gas CylindersAutomobilesRoute Trucks- HeavyRoute Trucks- LightFurniture & FixtureComputer EquipmentComputer Software PurchasedComputer Software DevelopedPost Mix CylindersPre Mix Cylinders

    Asset CategoriesFixed AssetsCapital Work In Progress (C.W.I.P)Low value Assets (For collective management of LVA)

    Classification of Fixed AssetsLand Free holdLand Lease holdBuilding on Freehold LandBuilding on Leasehold LandLand ImprovementsLeasehold ImprovementsPlant & MachineryAncillary EquipmentLaboratory EquipmentGeneratorsProduct TanksOffice EquipmentAir Conditioner EquipmentFork LiftersPre-Mix MachinePost-Mix Machine

    Documentation and General Write-up ( Assets )

  • 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 doesnt maintain a category of LVACapitalizaionTaggingSubsequent 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- AssetsMaster Data DefinitionThe data that remains static for a long period of time. Its a term normally used when talking of a database software.

    Examples are:Chart Of AccountsCustomers MasterVendor MasterMaterial MasterAssets Master

    Purpose of Master DataMaster data is helpful in designing a relational database management system (RDBMS) and its 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 DataAsset 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 SAPFirst screen that captures data to create an asset

  • Asset Master In SAPSecond screen that captures data to create an asset- General tab

  • Asset Master In SAPSecond screen that captures data to create an asset- Time-dependant tab

  • Asset Master In SAPSecond screen that captures data to create an asset- Depreciation areas tab

  • Asset Master In SAPMessage- Asset created

  • Asset Master In SAP1-Asset Class2-Asset Class Description3-Asset Main Number4-Asset Main Number Text5-Asset Sub-number6-Sub-number item name7-Account Determination8-Inventory Number9-Inventory Indicator10-Manufacturers serial no.11-Quantity12-Unit Of Measure13-Capitalization Date14-First Acquisition On15-Acquisition Year16-Acquisition Month 17-Business Area18-Cost Centre

    19-Resp. Cost Centre20-Plant21-Location22-Room23-License plate no.24-Personnel No.25-Supplier26-Manufacturer27-Country of Origin28-Depreciation Areas Applicable29-Depreciation Key30-Useful Life31-Per32-Depreciation calculation start date33-Land register map number34-Plot No.35-Land Area36-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

  • Asset acquisition in SAPPurchasing department starts creating PO

  • Asset acquisition in SAPPO form is requiring an asset reference

  • Asset acquisition in SAPAsset From master data being selected for ordering

  • Asset acquisition in SAPSelected asset automatically reveals the GL account

  • Asset acquisition in SAPNewly created PO number

  • Asset acquisition in SAPReceipt of an Asset and GRN

  • Asset acquisition in SAPAsset acquisition has been booked

  • Asset acquisition in SAPAsset Explorer- acquisition cost and planned monthly depreciation

  • Asset acquisition in SAPPlanned annual depreciation as soon as the asset is booked