Enterprise Assets Enterprise Assets Management Management EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration Fall, 2015 Fall, 2015
Enterprise Assets Management EGN 5622 Enterprise Systems Integration Fall, 2015.
Jan 04, 2016
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Enterprise AssetsEnterprise Assets ManagementManagement
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration
Fall, 2015 Fall, 2015
Enterprise Enterprise Assets Assets ManageManagement (EAM)ment (EAM)
Concepts & TheoriesConcepts & Theories
Asset AccountingAsset Accounting
Tracking the financial consequences associated with the entire lifecycle of an asset, from acquisition to disposal (retirement).
Assets can be categorized as tangible, intangible, and financial
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Asset Accounting ClassificationAsset Accounting Classification
Tangible assets◦ Fixed assets◦ Leased assets◦ Assets under construction
Intangible assets◦ Intellectual property◦ Patents◦ Trademarks
Financial assets◦ Securities◦ Long term notes (debts)◦ Mortgages
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Asset Accounting ComponentsAsset Accounting ComponentsAsset Asset
accountingaccounting
Intangible Intangible assetsassets
Tangible Tangible assetsassets
Financial Financial assetsassets
- Fixed assets- Fixed assets- Leased assetsLeased assets- Assets under Assets under constructionconstruction
- Intellectual Intellectual propertyproperty- PatentsPatents-TrademarksTrademarks
- SecuritiesSecurities- Long term Long term notes (debts)notes (debts)- Mortgages- Mortgages
Asset Accounting in corporate Asset Accounting in corporate financial structurefinancial structure
Chart of AccountsGeneral Ledger Accounts
◦Balance sheet accounts◦Income statement accounts◦Reconciliation accounts
Subsidiary ledgers (sub ledgers)◦Accounts Receivable (customers)◦Accounts Payable (vendors)◦Assets
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Asset AccountingAsset AccountingAssets are assigned to
◦ company code◦ Business area
Accounting data of assets are maintained in asset sub-ledger accounts.◦ E.g. Acquisition costs and depreciation
Asset sub-ledger accounts are created when asset master record is created and associated with a reconciliation account in the general ledger
Sub-ledger account and the master record share the same account number
Companies maintain separate reconciliation accounts for different types of assets
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Asset AccountingAsset Accounting
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Example of Asset Reconciliation Example of Asset Reconciliation Accounts in GLAccounts in GL
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Asset Accounts (AA) Structure Asset Accounts (AA) Structure ExampleExample
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Asset Management (Lifecycle)Asset Management (Lifecycle)Asset master Asset master creation (AA)creation (AA)
Vendor masterVendor master
Outgoing Outgoing paymentpayment
Asset Asset Transfer (AA)Transfer (AA)
Within/outsideWithin/outsideCompany codeCompany code
Asset Asset AdditionAddition
(AA)(AA)
Asset Asset Acquisition Acquisition
(AA)(AA)Vendor invoiceVendor invoiceExternalExternal
Cost centerCost center
Asset Asset ReportReport (AA)(AA)
Customer/ScrapingCustomer/Scraping
Depreciation Depreciation ChargeCharge
Asset Asset RetirementRetirement
(AA)(AA)
Customer Customer PaymentPayment
Customer Customer InvoiceInvoice
Customer Customer MasterMaster
Business Business AreaArea
Plant/locationPlant/location
Major Activities in Asset Major Activities in Asset Management (Lifecycle)Management (Lifecycle)Asset AcquisitionAsset DepreciationAsset Retirement
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Asset AcquisitionAsset AcquisitionAsset acquisition is concerned with acquiring assets
via internal or external processes◦ Internal:
production process or project systems
◦ External: 3 external options for purchasing assets, Purchase from an established vendor using the
purchasing process (different GL accounts) Purchase from an established vendor without using the
purchasing process (manual entry in GL and sub-ledger; similar to AP accounting)
Purchase from a one-time vendor or a vendor for whom master data are not maintained (via clearing account).
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Asset Acquisition With a Clearing Asset Acquisition With a Clearing AccountAccount
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5,000 3
Goods receipt
Asset DepreciationAsset DepreciationAsset depreciation is concerned with the decrease
in the value of an asset over timeDepreciation can be planned or unplannedDepreciation methods are used
◦Straight line◦Double declining balance
Usefulul lifeResidual valueBook valueDepreciation areas: parallel valuation for each fixed
asset for different purposes such as cost accounting or tax purpose.
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Straight Line DepreciationStraight Line Depreciation
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Double Declining Balance Double Declining Balance DepreciationDepreciation
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Financial Statements Based on Financial Statements Based on Depreciation Areas (parallel Depreciation Areas (parallel valuation)valuation)
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Asset RetirementAsset Retirement
Concerned with the disposal or retirement of an asset after its useful life
Retirement may be:◦Revenue generating (sold)◦Non-revenue generating (scrapped)
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Asset ExplorerAsset Explorer
Asset explorer provides an overview of all activities related to the asset, including:◦Acquisition data◦Planned and posted (actual) depreciation◦Drill-down details for:
Master data Transactions Documents
◦Depreciation posting run (for an assumed useful life)
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Asset Explorer (continued)Asset Explorer (continued)
Asset explorer can:display connections from the Asset
Explorer to the G/L accounts, vendor accounts, the cost center, and the Purchase Order of the Asset
display planned values, as well as values already posted for analyzing asset values
Asset Explorer InterfaceAsset Explorer Interface
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Asset management linked to Asset management linked to financial accountingfinancial accounting
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Enterprise Assets Enterprise Assets Management (EAM)Management (EAM)
SAP Implementation SAP Implementation
SAP Module ViewSAP Module View
Integrated SolutionClient / Server
Open Systems
FinancialAccounting
Controlling
Fixed AssetsMgmt.
ProjectSystem
Workflow
IndustrySolutions
ProductionPlanning
Sales &Distribution
MaterialsMgmt.
HumanResources
PlantMaintenance
QualityMgmt.
Create Asset MasterCreate Asset Master
Create Asset MasterCreate Asset Master
Purchasing an AssetPurchasing an AssetAsset MasterAsset Master
One way to skip the step of creating an Asset in the books is to directly go to the Purchase Order, and click the button pointed to.
Purchasing an AssetPurchasing an Asset
Asset ExplorerAsset Explorer
Lab 3 Exercises Lab 3 Exercises (Due date 10/3/2015)(Due date 10/3/2015)
1.Create asset2.Purchase asset3.View Asset Explorer
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