Investment Management - Presentation

Welcome
Overview of
Investment Management
2
1
Welcome
Concepts
Components and Functions
Master Data and Process Steps
Configuration in brief
Reports
2
1
Concepts
Investment Management Concept
3
SAP Investment Management - concepts
SAP Investment management is known as Capital

Investment planning and monitoring tool .
Functions include-
Planning of Investments
Investment planning
Cost Planning
Monitoring of Investments at plant, company code or

organization level
Financing process
2
How SAP Investment Management is different
Investment management is to plan / manage investment

proposals
Treasury deals with managing the Assets/ investments/

products which are already in possession
Projects study and funds planning of green field/

enhancement projects are part of investment Management
2
Broad Categories of Investments
New Investment Projects
Renovation and modernization projects
Capital Additions
Direct Assets purchase
Project for Establishing new market
Investment in Research and developments
2
Flow of Values in Investment Management
Cap. invest. Implementation

planning of cap. invstmt. Completion Use
Fixed Equipm-
Settlement assets ment
Maint-
enance
Cost centers
Capital Cap. investmt.
investment orders
program
Plan &
Budget Settlement
Settlement Fixed
assets
CWIP
Cap. investmt.
projects
Planning, Budgeting, Invoices, Internal activity, Settlement
2
Components and functions
Components and Functions
8
Components of Investments
Investment Program
Investment Programs-Investment program is a master

data of 8 Characteristics ( alpha numeric ) consists of a
program definition, program positions and hierarchical
program structure
Investment programs are helpful to create investment

plans and budget overall/annual and wish to monitor the
budget
2
Components of Investment
Appropriation Requests
It represents complete plans those are to be
implemented in an enterprise.
Appropriation request is an idea to carry out a measure

such as an investment, research and development.
They are to be assessed and approved by one or more

positions within an enterprise.
Appropriation requests will generate a project and

Internal Order.
Appropriation requests are assigned to investment

program positions
2
Components of Investment
Investment Measure
It consists of investment profile , AUC and assets

classes .
Investment profile controls following activities
Creation of an asset under construction
Creation of master data for depreciation simulation
creation.
We assign investment profile to a capital investment

measure
2
SAP Investment Management Business Benefits
Best toll to track complex projects

More number of investment activities and complexity involved
demand tracking of each capital investments
Diversified investment activities demands a better control
homogeneous environment
It is key to organization's strategic planning and budgeting
exercise
IM has been predominantly used in capital and maintenance
intensive industries to support the Asset Lifecycle Management
(ALM) process
View of approved and unapproved budget and funds availability
Orders Vs Projects
SAP Investment Program Structure
The Overall Process of Travel

Management with Travel
Planning
Program- Status, processes, approval
CREATED
create measure
postpone request for approval
TO BE APPROVED REJECTED
approve approval workflow
APPROVED
release
RELEASED MEASURE CREATED
close measure
close measure
CLOSED
delete measure
MARKED FOR DELETION

A typical IM Approval Process flow Diagram
Process Steps IM
Investment Management Process Steps
17
IM Structure- Investment Program
Position 1
Investment
Program
Position 1.1 Position 1.2
IM Structure- Appropriation Requests plan and budget
21000 Position 1
Investment 6000 15000
Program Position 1.1 Position 1.2
Request 3 3000 Request 6 11000

Appropriation
requests Req. 1 Req. 2 Req. 4 Req. 5 Req. 7 Req. 8 Req. 9
1000 2000 3000 4000 5000 6000

Master Data and process steps
Investment Program- planning versions
The versions used here in Investment Management (IM) are the general CO plan versions
20
IM Structure- Projects / orders

Position 1
Investment
Program
Request 3 Request 6
Appropriation
requests
Req. 1 Req. 2 Req. 4 Req. 5 Req. 7 Req. 8 Req. 9
rejected Sum plan values

Sum plan values
Projects/ Project 10
Orders
Project 101 Project 102 Order 1 Order 1 Order 1 PM-Order
IM Structure- Settlement to CC
Position 1
Investment
Program
Request 3 Request 6
Appropriation
requests
Req. 1 Req. 2 Req. 4 Req. 5 Req. 7 Req. 8 Req. 9
rejected
Project 10
Projects/
Orders
Project 10 Project 10 Order 1 Order 1 Order 1 PM-Order
Settlement Settlement
Cost Center CWIP

Co.Center
IM Structure- Settlement to CWIP/ Main Assets

Investment Programs-Overall and Annual Values
overall annual
values values
Program position 1998 overall 1999 2000 2001 ... zz
...
direct distribution
zz
zz
Investment measure overall 1999 2000 2001 ... zz
...
Assigning a Measure to Several Program Positions
Investment Reporting
Program
budget
Position 1 budget actual
4000
Position 1 4000 1800
Position 1.1 1500 700
Measure 1 1400 700
Position 1.2 2000 1100
Position budget Position budget
1.1 1.2 Measure 1 600 300
1500 2000
Measure 2 1000 800
70% 30% 100%
Measure 1 Measure 2
budget actual budget actual
2000 1000 1000 800
Investment Measure
Investment measures are not an object type in their own right in the R/3 System. Instead they are
represented in the system using special internal orders or WBS elements (of a project) and an
accompanying asset under construction
26
Investment Measure
When you settle investment measures, you generally need to settle the costs collected on the
investment measure to different receivers. The system carries this out automatically for the most part,
using settlement rules you have entered. There are two ways of settling investment measures:
Periodic settlement at the close of the period
Full settlement or partial capitalization of the investment measure at its completion
27
Settlement summary as well as line item wise
In the investment profile, you can specify whether the periodic settlement and the full settlement
should be line item settlement or summary settlement for the investment measures that use this
investment profile.
"Summary" settlement means that you can only enter blanket distribution rules either for all debits on
the investmetn measure, or for certain cost elements or cost element groups
28
1. Investment Program Definition

2. Investment Program Position
3. Investment Program Structure
4. Appropriation Request
5. Roll up of Planning Values
6. Budgeting
7. Creation of Investment Measure (Internal Order, WBS etc
8. Settlement to AUC
9. Settlement to Final Asset
10. Actual Posting flow
11. Settlement to Cost Center
SAP Investment Management Standard solutions
SI No Process T codes
1 Investment Program Definition Create IM01
2 Investment Program Definition Change IM02
3 Investment Program Definition Display IM03
4 Investment Program Position-Create Top IM11
Position
5 Investment Program Position-Change IM12
6 Investment Program Position-Display IM13
7 Investment Program Structure-Change IM22
8 Investment Program Structure-Display IM23
9 Program Planning-Edit IM35
10 Program Planning-Display IM36
11 Program Planning-Copy Plan Version IM36
3
SAP Investment Management Standard solutions
SI No Process T codes
12 Budgeting- edit Original IM32
13 Budgeting- Display Original IM33
14 Budgeting- edit Supplement IM30
15 Budgeting- Display supplement IM31
16 Budgeting- edit Return IM38

17 Budgeting- edit budget distribution IM52
18 Open new Approval year IM27
19 Close new approval year IM27_close
20 Roll up planning values to IP IM34
3
Investment Program definition

Investment Program Type - Create

Investment Profile - Create

Investment Program definition - Create

Investment Program definition - Create

Investment Program definition Change

If desired, you can have several "buckets of budget" = budget categories for
different purposes on the program, e.g. seperate budgets for costs to be capitalized
(category capital) and additional costs not to be capitalized (category expense).
In this case you can maintain the overall/Annual budget and plan seperatly for
each category within the capital investment program.
However, you still have only one usual budget/plan on the measure. To determine
the portions of its budget- or plan values belonging to the different budget
categories of the program, you can indicate percentage rates when you allocate the
measure to a program position
Inv.Program position - Create, General Data

Inv. Program position - Create, Org. Data

Inv. Program structure - Create, user fields

Inv. Program structure - Create, user fields

Inv. Program structure Change

Inv. Program structure Change

Appropriation structure Create

Appropriation requests Create , General Data

Appropriation requests Create , Control Data

Appropriation requests Create , Control Data

Appropriation requests Create , organisation data

Appropriation requests Change

Appropriation requests User Fields

Appropriation requests change , variants general data

Appropriation requests change , variants plan values

Appropriation requests change , variants plan values

Program Planning
Change program planning before roll up

Appropriation requests change program planning before roll up

Roll up planning values

Roll up planning values status

Roll up planning values status

Copy Plan versions
IT_PARK
IT_PARK
2008
Budgeting Budget Profile

Budgeting Program top down

Budgeting Program top down
Change in value
Budgeting Distribution Program top down

Budgeting Distribution Program top down

Budgeting distribution- Program top down . Refer slide 52

Budgeting distribution- Program top down

Change appropriation requests- Investment measure- Internal order

Create internal order type and Internal orders

Create investment measure -internal order
cc
Actual Transaction posting against those orders . Refer page 66
c
Actual Transaction posting flow

Settlement of order to AUC

Settlement of order to CWIP

Settlement of order to CWIP

Settlement Rules for CWIP to Final Asset

Change internal order Master Data

Settlement to Final Assets

Settlement to Final Assets
CWIP cost object got

Credited
and
Final Asset got Debited
Settlement to Final Assets - Status

Configuration Aspects
Investment Management Configuration
82
Investment Program- upload- down load
83
Investment Program- Type
84
Allowed Measures assignable operatives
85
Investment Profile
86
Investment Profile coding mask
87
Investment Program- planning and budgeting
88
Investment Program- plan profile and budget profile
For managing planning and budgeting of an investment program, you can define plan profiles
and budgt profiles for control purpose. Assign program type to planning profile.
Assign Budget profile to program type.
Investment Program- planning and budgeting
Similar to the WBS elements in a work breakdown structure, you can plan the investment
program positions from the bottom up and budget them from the top down.
Budget values differ from plan values in regard to how binding they are. During the planning
phase, you try to estimate costs for an investment program position from the bottom up as
exactly as possible, whereas during the approval phase you assign funds in the form of a
budget from the top down.
Plan values, which you have collected on measures or appropriation requests, can be rolled
up automatically on the investment program.
You can distribute budgets from investment program end-node positions to the measures
that belong to them.
During the fiscal year change for the investment program, you can carry forward measures,
which are released but not yet completed, along with their plan and budget values, to the
next approval year. This means that you do not have to use up the budget for approved
measures in their approval year. You can apply the funds also in following years.
90
Investment Program- planning versions
The versions used here in Investment Management (IM) are the general CO plan versions
91
Planning Profile
92
Budget Profile
93
Planning and Budgeting number range
94
Approval Versions
95
Investment Program- assignment of Maintenance orders
You can assign maintenance orders to an investment program, in the same way that you assign investment
measures (WBS elements or internal orders) to it. This means that you can plan and budget maintenance
activities using the investment program
96
Appropriation request ( AR ) process
An appropriation request is an idea or wish for carrying out a measure (such as, an investment,
or research and development), which has to be individually assessed and approved by one or more
positions. An investment measure can be created automatically from an appropriation request
97
Appropriation request types and screen layouts
WE can define Appropriation request types per controlling area
98
Tab layouts for appropriation request
99
Partner Management
100
Number assignment of AR
you have to assign each appropriation request type to a number range group of the
Appropriation request number range object
101
Approval of Appropriation Requests
Activating the automatic approval process using work flow for appropriation requests.
Then we define approval levels for AR types.
102
Appropriation Requests Master Data
103
Appropriation Requests Planning Data
104
Appropriation Requests Type
105
Appropriation Requests Type
106
Revenue Planning Profile
107
Workflow for incomplete Assets
Incomplete assets are assets that have been entered in the system, but in which important
master data was not entered
108
Tolerance Limit for Availability control
You can steadily monitor the approved budget of an investment measure using active
availability control. Using availability control, you can prevent budget overruns before they
occur
109
Statistical Budget Monitoring
Capital investments that do not have an 'asset under construction' phase are usually
capitalized directly in Asset Accounting
110
Settlement structure
During settlement, the system settles costs, which were incurred under a primary or secondary
cost element on a sender, to one or more receivers using a settlement cost element. When you
use settlement by cost element, you settle under the source cost element
111
Reports
Investment Management Information System
112
Reports
Reports on planed values
113
Reports
Drill down Reports
114
Reports
Reports on planed values
115
Reports
Drill down reports on annual planed values in Program
116
Reports
Drill down reports Budget availability
117
Reports
Drill down reports Budget Vs Actual
118
Thank You
We are open for Questions !

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Welcome

Investment Management Concept

SAP Investment management is known as Capital

Monitoring of Investments at plant, company code or

Investment management is to plan / manage investment

Treasury deals with managing the Assets/ investments/

Projects study and funds planning of green field/

New Investment Projects

Renovation and modernization projects

Direct Assets purchase

Project for Establishing new market

Investment in Research and developments

Cap. invest. Implementation

Planning, Budgeting, Invoices, Internal activity, Settlement

Investment Programs-Investment program is a master

Investment programs are helpful to create investment

Appropriation request is an idea to carry out a measure

They are to be assessed and approved by one or more

Appropriation requests will generate a project and

Appropriation requests are assigned to investment

It consists of investment profile , AUC and assets

We assign investment profile to a capital investment

Best toll to track complex projects

The Overall Process of Travel

postpone request for approval

approve approval workflow

RELEASED MEASURE CREATED

MARKED FOR DELETION

Investment Management Process Steps

IM Structure- Investment Program

IM Structure- Appropriation Requests plan and budget

Request 3 3000 Request 6 11000

1000 2000 3000 4000 5000 6000

Investment Program- planning versions

IM Structure- Projects / orders

rejected Sum plan values

Cost Center CWIP

IM Structure- Settlement to CWIP/ Main Assets

Assigning a Measure to Several Program Positions

70% 30% 100%

1. Investment Program Definition

16 Budgeting- edit Return IM38

Investment Program definition

Investment Program Type - Create

Investment Profile - Create

Investment Program definition - Create

Investment Program definition - Create

Investment Program definition Change

Inv.Program position - Create, General Data

Inv. Program position - Create, Org. Data

Inv. Program structure - Create, user fields

Inv. Program structure - Create, user fields

Inv. Program structure Change

Inv. Program structure Change

Appropriation structure Create

Appropriation requests Create , General Data

Appropriation requests Create , Control Data

Appropriation requests Create , Control Data

Appropriation requests Create , organisation data

Appropriation requests Change

Appropriation requests User Fields

Appropriation requests change , variants general data

Appropriation requests change , variants plan values