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INVESTMENTMANAGEMENT
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Course Objectives
Understand the concepts of following:
Investment Management
Investment program structure
Investment Budgeting
Investment Orders
Use, integration and availability control
Period End Closing
Reporting
Summary of T-codes
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration and availabilitycontrol
Period End Closing
Reporting
Summary of T-codes
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Investment Management
Investment Management is usedto control Capital Expenditure
within the organization.
It encompasses the entirecapital budgeting process acrossthe units (plant, cost centre etc)
in the organisation
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Investment Management
InvestmentManagement
Investment Program Structure
Investment Budgeting
Investment Orders
Period End closing and Reporting
Use of Investment orders
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration and availabilitycontrol
Period End Closing
Reporting
Summary of T-codes
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Investment Program Structure
Investment Program Definition iscreated per approval year.
Investment program top position is
created to represent the top positionin structure used in budgetingprocess and controls all parameters
regarding assignment to co code andcost objects such as orders, WBSelements.
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Investment Program Structure
Investment program structure iscreated with sub-ordinate nodes(position ids) which is logical
representation of Capital budgetingprocess and its control in theorganization.
All position ids should be released for
enable budgeting process.
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Investment Program Structure
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration and availabilitycontrol
Period End ClosingReporting
Summary of T-codes
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Investment Budgeting
Investment Budgeting is nothing butCapital budgeting process in theorganisation.
Budgeting is carried out withreference to Investment programstructure and is done at lower nodes.
It represents budgeted values for theactivities (lower nodes) for budgetyear (approval year).
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Investment Budgeting
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Investment Budget distribution
Here budgeted values from positionids are further distributed toinvestment measures (investment
orders). Prerequisite for this activity is
creation of Investment Order and it isreleased.
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Investment Budget distribution
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration and availabilitycontrol
Period End ClosingReporting
Summary of T-codes
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Investment Orders
Investment Orders are created asmaster data.
They are created with reference to
order type meant for InvestmentManagement.
Responsible cost centre is enteredwho is requisitioned this capitalexpenditure.
Company code, currency, profitcentres are derived automatically.
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Investment Orders (I.O.)
Investment Profile is assigned to I.O.
Scale and Investment reason isassigned to I.O.
Investment program and position idis assigned in I.O.
This is very important link between
master data and customising.
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Investment Orders (I.O.)
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration andavailability control
Period End ClosingReporting
Summary of T-codes
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Use of IO, integration & availability
control
IOs 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 costsare compared against Investmentbudgets.
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Use of IO, integration & availability
control
Budget availability is checked forevery transaction with IOassignment.
If actual cost exceeds the budgetallocated to IO, then it gives errorand does not allow transaction toproceed.
This functionality ensures proper andeffective usage of available budgets.
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration and availabilitycontrol
Period End ClosingReporting
Summary of T-codes
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Period End Closing
In 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 structuredefined in configuration.
Settlement triggers accounting entryin FI and also creates costaccounting document.
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration and availabilitycontrol
Period End ClosingReporting
Summary of T-codes
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Reporting
Reporting for capital (Investment)budgets and actual cost is essentialdriving factor for use of Investment
Management. Reports are basically shown with
respect to budgets, its commitments,
actual cost and balance (availability)
of budgets.
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Course Direction
Investment Management
Investment Program Structure
Investment Budgeting
Investment Orders
Use, integration and availabilitycontrol
Period End ClosingReporting
Summary of T-codes
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Summary of T-codes
IM01 / IM02 / IM03 - Create / Change/ Display Investment Program
IM11 / IM12 / IM13 - Create Top
node/ Change / Display InvestmentProgram Position
IM22 / IM23 - Edit / DisplayInvestment Program structure
IM32 / IM33 - Budgeting InvestmentProgram
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Summary of T-codes
IM30 / IM31 - Budgeting InvestmentProgram (supplement)
IM38 / IM39 - Budgeting Investment
Program (returns) IM52 / IM53 Budget distribution to
I.O. and display of budgetdistribution.
KO04-Order Manager: used toaccess Order master Data
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Summary of T-codes KO01 / KO02 / KO03 - Create /
Change / Display Internal orders
KOB5 - Maintain Line-Itemsettlement Rules
KO88 - Run settlement (individualprocessing)
KO8G - Run settlement (collectiveprocessing)
S_ALR_87013019 - List:Budget/Actual/Commitments
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THANK YOU.