AGL-Assets Management

Acquisition of Assets

Invoice Verification

Receipt, Classification and recording

Insurance of Assets

Inter Unit Transfer

Depreciation Run

Disposal / Write off of Assets

Documentation and General

Assets Acquisition Flow Chart and Write-up

Requisit Department

PR Raised

Job Completion Certificate

Invoice

Finance

GRN Budget Approved RFA Preparation Job Complition Certificate

Purchase ( Local / Central )

PR Received

Quotation Invite

Comparative Statement Prepared

PO Issued to Vendor

Gate / Store

Copy of PR Received

Assets Received with Invoice

GRN Preparation

Purchase Requisition along with Justification, Quotations and Comparative Statement received by Finance department Finance department Checks the budget Finance department prepares RFA Purchase department issues Purchase order to approved supplier Assets received by Gate office and Stores department prepares the GRN Concerned department issues Job Completion certificate Finance Department receives the GRN, Invoice and Job Completion Certificate

Vendor

PO Received

Invoice verification Flow Chart and Write-up

Local Purchase

Invoice from Supplier

Compare with Purchase Order

YES Complied with Satisfaction Report

NO

NO

YES

Supplier

Returned for correction

Accounts Payable

For Payment process

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 correction

Receipt, Classification and Recording Flow Chart and Write-up

Gate Office

Receipt of Assets

Complied with NO

Return to Suppliers

YES

Concerned Department

Quality Check

Supplier

Preparation of GRN

Job Completion Certificate

Tagging of Assets

Finance

Invoice Receiving of Document GRN 3-Way Match Classification of Assets Recording in GL and FAR

Gate office receives an Assets and informs to concerned department

Concerned department checks the specification of Assets Store department prepares the GRN Finance Department receives the Documents (GRN, Invoice and Job Completion Certificate) After the 3-way matching, assets are classified and posted into FAR and GL

Insurance Flow Chart and Write-up

Corporate Office

Quotation for Insurance Received

Comparative Statement

Selection of Insurance Company

Payment of Premuim

Location Finance

Cheque Received

Addition / Loss Intimation

Periodic Review of Assets

Cover Note Received

Insurance Company

Quotation Submitted

Settlement of Loss (Cheque Issue)

Issuance of Cover Note

Head Office Invites Quotation for Insurance Head Office prepares Comparative Statement ( Time of Loss , Amount of Premium ) Corp Off. selects the insurance company and pays premium, insurance company issues the cover note Location Finance reviews the Assets and intimates the Head Finance for Addition and Damage Insurance Company issues cheques for the settled amounts against claims and location receives cheque, and after proper approval assets are deleted from Fixed Assets Register

Inter Unit Transfer Flow Chart and Write-up

Buying Location
Assets Received with ST Invoice / Debit Note

Preparation of RFTA

Return to Location

Updation of GL and FAR

Selling Location

RFTA Signature

Approved RFTA

Assets Transfer with Invoice / Debit Note

Updation of GL and FAR

NO
Unit office
Approval of RFTA Approval Open / Close RFTA

YES
Corporate Office
Open / Close RFTA

Approval of RFTA

Buying Location prepares the RFTA and sends it to Selling Location, Selling Location then forwards it to Unit office after necessary approvals Unit Office forwards the RFTA to Head office after appropriate approval Selling Location transfers the Assets along with ST Invoice and Debit Note to the Buying Location after the approval from Head office Buying and Selling Locations update their books of Accounts and Fixed Assets Register accordingly

Depreciation Run Flow Chart and Write-up

Depreciation Method -Straight Line/ Units of production/ Diminishing balance method

Parameters Collections Asset Class Depreciable Amount Asset life Salvage value

Conventions UsedMid month Mid Year

Depreciation Calculation Formula

Depreciation documentMonthly JV

Depreciation posting in Accounts

Depreciation run in SAP is automatic and its managed by a Depreciation Key for a type of an asset

Disposal / Write Off Flow Chart and Write-up

Disposal Process

GL Updated

Location

RFA for Disposal / Write Off

Return to Location

Updation of GL and FAR Quotation for Disposal Comparative Statement

Sales Proceed

NO
Unit Office
RFA Received Approval

YES

Corporate Office

RFA Received

Approval

RFA is prepared with justification for Write off / Disposal of Assets RFA is forwarded to Unit office for Approval, Unit office then forwards it to Head office for further approval Location writes off and updates it in Accounts and the Fixed Assets Register Quotations are received and a comparative statement is prepared for disposal of Assets Sale proceeds are documented and recorded in accounts

Documentation and General Write-up ( Assets )

Asset Categories Fixed Assets Capital Work In Progress (C.W.I.P) Low value Assets (For collective management of LVA) Classification of Fixed Assets Land Free hold Land Lease hold Building on Freehold Land Building on Leasehold Land Land Improvements Leasehold Improvements Plant & Machinery Ancillary Equipment Laboratory Equipment Generators Product Tanks Office Equipment Air Conditioner Equipment Fork Lifters Pre-Mix Machine Post-Mix Machine

Chest Coolers / Deep Freezers Visi-Coolers Co2 Gas Cylinders Automobiles Route Trucks- Heavy Route Trucks- Light Furniture & Fixture Computer Equipment Computer Software Purchased Computer Software Developed Post Mix Cylinders Pre Mix Cylinders

Documentation and General Write-up ( Assets )

Classification of C.W.I.P Capital Work In Progress- Building Capital Work In Progress- Plant & Machinery Capital Work In progress- Office Equipment Capital Work In Progress- Inventory Capital Work In Progress- Others Low value Assets (LVA) AGL doesnt maintain a category of LVA Capitalizaion Tagging Subsequent Expenditure Detailed Property Records Authorisation and approval of capital expenditure items Physical verification Assets maintenance with third party and documentation Recognition of losses on Disposal of fixed assets Revaluation of Fixed Assets Policy revision impact Depreciation forecasts Reports

Master Data Maintenance- Assets

Master Data Definition
The 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 Accounts Customers Master Vendor Master Material Master Assets Master Purpose of Master Data Master 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 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 Data

Asset Master In SAP

First screen that captures data to create an asset

Asset Master In SAP

Second screen that captures data to create an asset- General tab

Asset Master In SAP

Second screen that captures data to create an asset- Time-dependant tab

Asset Master In SAP

Second screen that captures data to create an asset- Depreciation areas tab

Asset Master In SAP

Message- Asset created

Asset Master In SAP

SAP provided master data elements for assets
1-Asset Class 2-Asset Class Description 3-Asset Main Number 4-Asset Main Number Text 5-Asset Sub-number 6-Sub-number item name 7-Account Determination 8-Inventory Number 9-Inventory Indicator 10-Manufacturers serial no. 11-Quantity 12-Unit Of Measure 13-Capitalization Date 14-First Acquisition On 15-Acquisition Year 16-Acquisition Month 17-Business Area 18-Cost Centre 19-Resp. Cost Centre 20-Plant 21-Location 22-Room 23-License plate no. 24-Personnel No. 25-Supplier 26-Manufacturer 27-Country of Origin 28-Depreciation Areas Applicable 29-Depreciation Key 30-Useful Life 31-Per 32-Depreciation calculation start date 33-Land register map number 34-Plot No. 35-Land Area 36-Area Unit Of Land

Data elements used in AGL not covered in SAP

1-Engine number 2-Chasis number 3-Make 4-Model 5-Type 6-Year of manufacture 7-Horse power / cc 8-Seating / carrying capacity

Asset acquisition in SAP

Purchasing department starts creating PO

Asset acquisition in SAP

PO form is requiring an asset reference

Asset acquisition in SAP

Asset From master data being selected for ordering

Asset acquisition in SAP

Selected asset automatically reveals the GL account

Asset acquisition in SAP

Newly created PO number

Asset acquisition in SAP

Receipt of an Asset and GRN

Asset acquisition in SAP

Asset acquisition has been booked

Asset acquisition in SAP

Asset Explorer- acquisition cost and planned monthly depreciation

Asset acquisition in SAP

Planned annual depreciation as soon as the asset is booked

Uploading Legacy Data in SAP

First screen that captures data to create an asset

Asset acquisition in SAP

First screen that captures data to create an asset

Asset acquisition in SAP

First screen that captures data to create an asset