invest management.ppt

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INVESTMENT INVESTMENT MANAGEMENT MANAGEMENT

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  • INVESTMENT MANAGEMENT

  • Course ObjectivesUnderstand the concepts of following:Investment ManagementInvestment program structureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Investment ManagementInvestment Management is used to control Capital Expenditure within the organization.

    It encompasses the entire capital budgeting process across the units (plant, cost centre etc) in the organisation

  • Investment ManagementInvestment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersPeriod End closing and ReportingUse of Investment orders

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Investment Program StructureInvestment Program Definition is created per approval year.

    Investment program top position is created to represent the top position in structure used in budgeting process and controls all parameters regarding assignment to co code and cost objects such as orders, WBS elements.

  • Investment Program StructureInvestment program structure is created with sub-ordinate nodes (position ids) which is logical representation of Capital budgeting process and its control in the organization.

    All position ids should be released for enable budgeting process.S

  • Investment Program Structure

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Investment BudgetingInvestment Budgeting is nothing but Capital budgeting process in the organisation.

    Budgeting is carried out with reference to Investment program structure and is done at lower nodes.

    It represents budgeted values for the activities (lower nodes) for budget year (approval year).

  • Investment Budgeting

  • Investment Budget distributionHere budgeted values from position ids are further distributed to investment measures (investment orders).

    Prerequisite for this activity is creation of Investment Order and it is released.

  • Investment Budget distribution

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Investment OrdersInvestment Orders are created as master data.

    They are created with reference to order type meant for Investment Management.

    Responsible cost centre is entered who is requisitioned this capital expenditure.

    Company code, currency, profit centres are derived automatically.

  • Investment Orders (I.O.)Investment Profile is assigned to I.O.

    Scale and Investment reason is assigned to I.O.

    Investment program and position id is assigned in I.O.

    This is very important link between master data and customising.

  • Investment Orders (I.O.)

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Use of IO, integration & availability controlIOs are used in account assigned POs created for asset procurement.

    After PO, commitment of budget is triggered for the PO value.

    After GRN of same PO, actual cost is booked in IO.

    This commitment and actual costs are compared against Investment budgets.

  • Use of IO, integration & availability controlBudget availability is checked for every transaction with IO assignment.

    If actual cost exceeds the budget allocated to IO, then it gives error and does not allow transaction to proceed.

    This functionality ensures proper and effective usage of available budgets.

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Period End ClosingIn month end all IOs are settled to AUC (Asset under construction).

    For all completed assets, IOs are settled to Fixed Assets.

    Settlement takes into account settlement profile, allocation structure defined in configuration.

    Settlement triggers accounting entry in FI and also creates cost accounting document.

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • ReportingReporting for capital (Investment) budgets and actual cost is essential driving factor for use of Investment Management.

    Reports are basically shown with respect to budgets, its commitments, actual cost and balance (availability) of budgets.

  • Course Direction

    Investment ManagementInvestment Program StructureInvestment BudgetingInvestment OrdersUse, integration and availability controlPeriod End ClosingReportingSummary of T-codes

  • Summary of T-codesIM01 / IM02 / IM03 - Create / Change / Display Investment Program

    IM11 / IM12 / IM13 - Create Top node/ Change / Display Investment Program Position

    IM22 / IM23 - Edit / Display Investment Program structure

    IM32 / IM33 - Budgeting Investment Program

  • Summary of T-codesIM30 / IM31 - Budgeting Invest. Program (supplement)

    IM38 / IM39 - Budgeting Invest. Program (returns)

    IM52 / IM53 Budget distribution to I.O. and display of budget distribution.

    KO04-Order Manager: used to access Order master Data

  • Summary of T-codesKO01 / KO02 / KO03 - Create / Change / Display Internal orders

    KOB5 - Maintain Line-Item settlement Rules

    KO88 - Run settlement (individual processing)

    KO8G - Run settlement (collective processing)

    S_ALR_87013019 - List: Budget / Actual / Commitments

  • THANK YOU.

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