Invest Management

8/2/2019 Invest Management

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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 Program Structure


Investment Orders

Use, integration and availabilitycontrol

Period End Closing

Reporting

Summary of T-codes


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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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InvestmentManagement



Investment Orders

Period End closing and Reporting

Use of Investment orders


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Course Direction




Investment Orders


Period End Closing

Reporting

Summary of T-codes


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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 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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Course Direction




Investment Orders


Period End ClosingReporting

Summary of T-codes


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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 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 Orders



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 Orders

Use, integration andavailability control


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 Orders



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 Orders



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 Orders



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.

Invest Management

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