FI332 Umoja Asset Accounting Process. Umoja Asset Accounting Process Version 16 1

FI332 Umoja Asset Accounting Process Umoja Asset Accounting Process Version 16 Copyright Last Modified: United 9-Oct-13 Nations 1

Agenda Course Introduction Module 1: Umoja Asset Accounting Review Module 2: Acquisition of Fixed Assets Module 3: Depreciation of Assets Module 4: Impairment of Fixed Asset Module 5: Retirement of Fixed Asset Module 6: Transfer of Fixed Asset Module 7: Asset Accounting Reports Course Summary Course Assessment Course Survey 2

Introduction Please share with us: Your name Your section/unit # Years with the UN Interesting Fact About Yourself 3

Ground Rules Please consider the following guidelines during the training session: Turn your cell phone to silent mode. Please step out of the class to take any important phone call Please do not access your e-mail or the Internet outside of breaks Participate fully in the training session and respect each other s contribution Breaks are included at the discretion of the trainer X X No Phones Do Not Access E-mail Participate Ask Questions Breaks 4

Course Overview The purpose of the Umoja Asset Accounting Process course is to explain the Asset Accounting process for DFS-supported missions. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data and Coding Block Overview Umoja ECC Navigation Umoja Asset Accounting Overview Course Duration: 6 hours 5

Course Objectives After completing this course, you will be able to: List the key roles and responsibilities in Asset Accounting Explain the processes that comprise the lifetime of a fixed asset Capitalize standalone assets and assets under construction (AuC s) Run a depreciation run Impair a fixed asset Retire a fixed asset by donation/scrapping and sale Transfer a fixed asset Run reports related to Asset Accounting 6

Module 1 Objectives After completing this module, you will be able to: Explain the key concepts of the Asset Accounting Overview course 8

Key Terminology Key Term Fixed Asset Depreciation Amortization Capitalization Useful Life Description A subset of non-current assets that can be used for more than one reporting period and is material in value. The diminution in the value of an asset due to the normal wear and tear over the life of the asset. It is calculated on a straightline basis over the period of the life that is stored in the asset master data. This method measures the consumption of the value of tangible assets. The deduction of capital expenses over an asset s life. This method measures the consumption of the value of intangible assets. In Umoja, both depreciation and amortization are referred to as depreciation. The recording of business expenditures as assets because their occurrences produce benefits for the business for more than a financial year. The length of time that a depreciable asset is expected to be useable. 9

Key Terminology Asset Class Assets under Construction Final Asset Impairment Key Term Tangible Asset Intangible Asset Description A criteria for structuring fixed assets from an accounting point of view. Every asset has to be assigned to exactly one asset class. The asset class is used to assign the assets (and their business transactions) to the correct G/L accounts. The process to account for self-constructed assets, internally developed intangible assets and other capital projects which are mainly of long duration and high dollar amount. The point where assets are deemed available to use and depreciation starts. A loss in the future economic benefits or service potential of an asset, over and above depreciation. An asset that has a physical form, for example machinery, buildings or land. An asset that is not physical in nature, for example patents, trademarks and software. 10

Key Terminology Key Term Document Date Posting Date Description The relevant document date authorizing the transaction. The date when the entry will become effective. 11

Roles & Responsibilities The following roles are involved in the Umoja Asset Accounting process: Financial Accounting Closing User Responsible for the Year-End Closing process to close the financial year at the Company Code level Runs the fixed asset depreciation and financial accounting revaluation (IPSAS requirement) Responsible for the reclassification of receivables and payables and balances the carry-forward processes on an annual basis Manages the Special Period documents Runs the revaluation of Purchase Orders (POs) and earmarked funds, as well as other closing processes in Funds Management 12

Roles & Responsibilities The following roles are involved in the Umoja Asset Accounting process: Financial Accounting Asset Accounting User Creates, updates and maintains the fixed asset master data and postings and/or verifies certain acquisition transactions Financial Accounting Asset Accounting Senior User Is responsible for asset disposals, asset revaluations and asset transfers 13

Umoja Asset Accounting Review Umoja Asset Accounting deals with the accounting of fixed assets, which is a subset of non-current assets. This process is applicable to the Peacekeeping and Special Political missions that will continue to use Galileo to manage most fixed assets, before the decommissioning of the Galileo system. In the interim, Umoja will track only real estate (including Real Estate under Construction, excluding prefab buildings) and intangible assets. Note: Asset Accounting always refers to the fiscal year. 14

Umoja Asset Accounting Review Some important points related to fixed assets are: Fixed assets are items that can be used for more than one reporting period and are material in value Fixed assets include tangible and intangible assets The utilization of fixed assets is spread across various reporting periods during the useful life of the asset This is the process of depreciation for tangible assets, or amortization for intangible assets The depreciated/amortized value (Net Book Value) is documented in the balance sheet under Property, Plant and Equipment and Intangible Assets 15

Asset Master Data Review The asset master data record for each asset captures two types of data: Asset Data Depreciation Data Includes general information such as description, location, asset class and so on Includes depreciation-specific information such as depreciation terms, useful life and so on 16

Umoja Asset Class General Ledger (G/L) Accounts Asset Classes Buildings Intangibles Assets Under Construction Asset Master Records Each asset is a part of an asset class. While the IPSAS has a defined set of asset classes, there is an expansion to these asset classes in Umoja. Each asset class: Classifies assets into logical groups Controls the screen layouts of the asset master and depreciation area Provides default values to assets that are created under the corresponding asset class Determines the numbering ranges of assets Determines the G/L accounts to be posted to for that class of assets 17

Umoja Asset Class Asset classes applicable to the Umoja Asset Accounting process are: Asset Class Asset Class Description 110 Land 120 Buildings Fixed 140 Leasehold Improvements Fixtures and Fittings 150 Leasehold Improvements Minor Construction Works 160 Infrastructure Assets 610 Assets under Construction Buildings 620 Asset under Construction Infrastructure 710 Software Internally Developed 720 Software Acquired Enterprise Applications 730 Software Acquired Business Specific Applications 740 Software Acquired Productivity and Utility App 750 Software Acquired Infrastructure Mgt Application 18

Umoja Asset Class Asset classes applicable to the Umoja Asset Accounting process are: Asset Class Asset Class Description 760 Software Acquired Application Development 770 License Right 780 Copyright 790 Software Maint Enterprise Applications 800 Software Maint Business Specific Applications 810 Software Maint Productivity and Utility Applications 820 Software Maint Infrastructure Mgt Applications 830 Software Maint Application Development 840 Asset in Development IT system 19

Chart of Depreciation & Depreciation Area The depreciation data is defined from a Chart of Depreciation: Chart of Depreciation It defines the rules for depreciation of assets, in the form of depreciation areas UN uses one Company Code and one Chart of Depreciation Depreciation Area It shows the valuation of a fixed asset for a particular purpose UN only uses one depreciation area for financial accounting purposes Chart of Depreciation The United Nations 1000 Company Code Financial Accounting Purpose Depreciation Area 20

Asset Master Data: T-Codes The T-codes to create, change and display an asset master record are: T-Code AS01 AS02 AS03 Description Create Asset Master Record Change Asset Master Record Display Asset Master Record 21

Asset Master Data: Fields 1 2 The following fields appear at the top of the asset master data screen: 1 Asset Number and Sub Number: A unique number that identifies the asset in the Fixed Assets sub-ledger. Sub assets are created for the component parts that could have independent useful lives and depreciation parameters 2 Class: Identifies the asset class that the asset belongs to 22

Asset Master Data: Tabs 1 2 3 4 The asset master data is organized into the following tabs: 1 General: This tab includes the description and other basic information for the asset 2 Time-Dependent: This tab includes data that can change over time, such as assigned Cost Center. This tab stores both current and historical values, while the other tabs only store the current value 3 Allocations: This tab includes fields for report sorting, investment and integration with Plant Maintenance (to be implemented in later parts of Umoja Foundation) 4 Origin: This tab includes information regarding the origin of the asset 23

Asset Master Data: Tabs 5 6 7 8 The asset master data is organized into the following tabs: Net Worth Tax: This tab includes the net worth and real estate information 5 6 Insurance: This tab includes information on insurance for the asset, if applicable 7 Leasing: This tab includes the lease information, if applicable 8 Depreciation Area: This tab includes information on the valuation of a fixed asset for a particular purpose 24

Asset Master Data: General The General tab (tab A) contains the following master data fields: 1 Description: A text that describes the asset 2 Account Determination: It is defined at the asset class level. It determines the reconciliation accounts in the G/L, as well as their offsetting accounts, that are to be posted to when certain business transactions are carried out for the asset 2 1 25

Asset Master Data: General The General tab (tab A) contains the following master data fields: 3 Inventory Number: It contains the unique identifier of the asset in the legacy system 4 Quantity and Unit of Measurement (UOM): For UN, all assets have quantity 1 and units each as assets are individually maintained and not grouped 5 4 3 5 Historical Indicator: This is used to ensure the inclusion of an asset in the history report for assets 26

Asset Master Data: General The General tab (tab A) contains the following master data fields: 6 Inventory Indicator: This is used to ensure the inclusion of an asset in the inventory listing 7 Capitalization Date: This is defaulted to the day of the first acquisition posting to the asset. This is the starting date for calculating the depreciation 8 Deactivation Date: This date is automatically populated when an asset is retired 7 6 8 27

Asset Master Data: Time-Dependent The Time-Dependent tab (tab B) contains the following master data fields: 1 Business Area: Business Area in which the asset is reported on the balance sheet 2 Cost Center: Area responsible for the asset s depreciation cost 3 Fund: Fund in which the asset is reported on the balance sheet 4 Budget Period: Budget period in which the asset was acquired 1 2 3 4 b c d 28

Asset Master Data: Time-Dependent The Time-Dependent tab (tab B) contains the following master data fields: 5 Functional Area: Used to classify revenues and expenditures of an organization by function 6 Grant: Grant in which the asset is reported on the balance sheet 7 Funds Center: The organizational level at which the budgets are stored 8 Asset Shutdown: Used to stop the depreciation of an asset 5 6 7 8 29

Asset Master Data: Allocations The Allocations tab (tab C) contains the following master data fields: Infrastructure Type: A way to classify the infrastructure, e.g. Transport, Energy, Landscaping, etc 1 Infrastructure Function: A way to further classify the infrastructure based on type Building Function: A way to add information regarding what the building will be used for 2 Asset Super Number: Identifies the IPSAS class that the asset belongs to. It is defaulted from the Umoja asset class 1 2 30

Asset Master Data: Origin The Origin tab (tab D) contains the following master data fields: 1 Vendor: Identifies the name of the vendor from whom the asset was acquired 2 Original Asset: Identifies the asset number prior to the asset transfer, if the asset was acquired through a transfer 1 2 31

Asset Master Data: Net Worth Tax The Net Worth Tax tab (tab E) contains the following master data field: 1 Property Indicator: Used to indicate the ownership situation of the asset, for example, purchased, constructed, donated, finance lease, controlled 1 32

Asset Master Data: Depreciation Areas The Depreciation Areas tab (tab H) contains the following master data fields: 1 Depreciation Key: Default depreciation parameter given to the asset based on the pre-configured depreciation settings for each asset class. The depreciation key contains various depreciation parameters such as depreciation method, period controls (when to start/stop the depreciation) and acceleration parameters 1 Enter ZSLA for straight-line depreciation. Note: For assets that are not depreciated, this field is automatically populated with Z000. No other fields need to be entered. 33

Asset Master Data: Depreciation Areas The Depreciation Areas tab (tab H) contains the following master data fields: 2 Useful Life: Default number of years and months that will be given to the asset based on the pre-configured values for each asset class. This is a very important element for the calculation of depreciation as the cost of the asset is depreciated over the useful life. Note: Assets (example infrastructure) with variable useful life have the value 999 3 Scrap Value: Value of the asset that can be recovered at the end of its useful life. In the UN it is 0 (to find this information, double-click the UseLife field) 3 2 34

Asset Explorer Once the user creates an asset master record, the Asset Values button is available at the top of the screen. The user can click this button or use the T-code AW01N to access the Asset Explorer. For an asset, the Asset Explorer Planned values tab displays planned changes in value and all Transactions carried out for this asset. 35

Asset Explorer The Posted values tab displays posted changes in value and Depreciation that is posted or planned for each period. For an asset, the Asset Explorer screen displays information for Objects related to asset, example related PO numbers, G/L accounts, etc. 36

Asset Accounting: End-to-End Process Umoja Asset Accounting encompasses the entire lifetime of a fixed asset. The end-toend Asset Accounting process is as follows: Asset Master Data Maintenance Acquisition of Assets Retirement of Assets Transfer of Assets Depreciation of Assets Revision of Useful Life Impairment of Assets Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed out of Umoja. The posting will be made separately into the system as part of another step. 37

Touch Points Touch points refer to these integration points across Umoja modules, processes and activities. General Ledger (G/L) The Acquisition and Production Costs (APC) are posted on the Balance Sheet accounts The depreciation is posted on the Profit and Loss accounts The cost of depreciation is posted on Cost Centers Lower complexity assets being constructed are posted to Internal Orders Cost & Management Accounting Asset Accounting Supply Chain/ Procurement/ Logistics Assets, materials and services used to construct an asset can be directly posted at the time of goods and service receipts Real Estate, including finance leases, is accounted for within Asset Accounting Real Estate 38

Simulation Activities Throughout this training, users will have the opportunity to conduct activities in the form of simulations. Simulations are interactive recordings of the Umoja system used to help facilitate a hands-on learning experience. The simulation links are provided on the corresponding activity slides. Users can access simulations in three different modes: Show me: Users view a video of an entire transaction being conducted Let s do it together: Users will be prompted to input data at key points during the transaction (recommended) Try it: Users can complete an entire transaction on their own, with no additional instructions provided 39

Activity 1 Transaction Name: Create Asset Transaction Code: AS01 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2478?originalContext=1.11.2592 40

Learning Checkpoint 1 Identify the correct features of fixed assets in Umoja. Select all that apply. A. Fixed assets are items that can be used for one reporting period B. Fixed assets include intangible assets only C. The utilization of fixed assets is spread across various reporting periods during the useful life of the asset D. The depreciated/amortized value (Net Book Value) is documented in the balance sheet under Property, Plant and Equipment and Intangible Assets 41

Learning Checkpoint 1 Identify the correct features of fixed assets in Umoja. Select all that apply. A. Fixed assets are items that can be used for one reporting period B. Fixed assets include intangible assets only C. The utilization of fixed assets is spread across various reporting periods during the useful life of the asset D. The depreciated/amortized value (Net Book Value) is documented in the balance sheet under Property, Plant and Equipment and Intangible Assets Options C and D are correct answers. The utilization of fixed assets is spread across various reporting periods during the useful life of the asset and the depreciated/amortized value (Net Book Value) is documented in the balance sheet under Property, Plant and Equipment and Intangible Assets. 42

Module 1 Summary The key points covered in this module are listed below: The Umoja Asset Accounting process described here is applicable to Peacekeeping and Special Political Missions that continue to use Galileo to manage most fixed assets, before the decommissioning of the Galileo system In the interim, Umoja ECC is only tracking Real Estate (including real estate under construction, excluding prefab buildings) and Intangible Assets Identify the T-code used to create, change display an Asset Master Record Umoja Asset Accounting encompasses the entire lifetime of an asset: master data maintenance, acquisition, depreciation, revision of useful life, impairment, retirement and transfer 43

Module 2 Objectives After completing this module, you will be able to: Explain the asset capitalization process for standalone assets, assets under construction and finance leases 45

Asset Accounting: Acquisition of Assets Asset Master Data Maintenance Acquisition of Assets Retirement of Assets Transfer of Assets Depreciation of Assets Revision of Useful Life Impairment of Assets Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed out of Umoja. The posting will be made separately into the system as part of another step. 46

Acquisition of Assets This module will cover capitalization processes for: Standalone Assets Assets under Construction (AuC) 47

Capitalization of Standalone Assets Standalone assets are those for which no additional costs are anticipated and are capitalized at the time of receipt. There are two ways to procure standalone assets: Through the Material Master This is used for tangible assets such as real estate. Through the Service Master This is used for all intangible assets. The capitalization process is as follows: Asset Master Shell Created at Purchase Req Capitalization at Goods Receipt 48

Capitalization of Standalone Assets Asset Master Shell Created at Purchase Req Capitalization at Goods Receipt For standalone assets: The asset is procured by users in the Supply Chain function During the purchase requisition, the shell of the asset master data record is created. The selection of the items to be purchased generates the identification of the Asset Class and G/L account to be used for recording the asset At this point, the asset number is generated by the system After the Purchase Order (PO) has been approved, the account assignment of the asset master record is populated based on the PO 49

Capitalization of Standalone Assets Asset Master Shell Created at Purchase Req Capitalization at Goods Receipt The trigger for capitalization is the point where the goods or services are received: When Goods Receipts are created by users in the Supply Chain function, the system automatically post the accounting entries to debit the Asset G/L account that has been referred to in the PO When Service Entry Sheets (for service receipts) are created, the system automatically posts the accounting entries to debit the Asset G/L account that has been referred to in the PO. The Asset Accounting User uses the T-code AS02 to update the asset master record with the quantity of intangibles to 1. The quantity needs to be updated because it is pre-populated with 0 when the user receives intangibles through the service master. In addition, the user confirms that the useful life is accurate The corresponding accounting entries appears as follows: Debit (+) Credit (-) Asset GR/IR 50

Capitalization of Assets under Construction The process to capitalize Assets under Construction (AuC) is as follows. This process involves both the Asset Accounting User and Senior Asset Accounting User: Create Internal Order Procure Material and Services to Internal Order Settle Internal Order Reconcile Expenses Create AuC Assess Percentage of Completion Create Final Asset 51

Capitalization of Assets under Construction Create Internal Order Procure Material and Services to Internal Order Settle Internal Order Reconcile Expenses When a decision has been made to create an asset which will be built in house, the Asset Accounting User submits a request to create a new Internal Order for the project. The Internal Order is used to collect service and material costs directly procured for the project. Note: The value of Asset under Construction will be arrived at using the replacement cost methodology. 52

Capitalization of Assets under Construction Create Internal Order Procure Material and Services to Internal Order Settle Internal Order Reconcile Expenses When services and materials directly associated with the AuC are procured, the account assignment from the Shopping Cart must include the Internal Order. 53

Capitalization of Assets under Construction Create Internal Order Procure Material and Services to Internal Order Settle Internal Order Reconcile Expenses During the year-end closing process, the items recorded in the Internal Order will be transferred to the responsible cost center by a settlement. The Asset Accounting Senior User uses the T-code KO88 to settle the Internal Order. 54

Capitalization of Assets under Construction Create Internal Order Procure Material and Services to Internal Order Settle Internal Order Reconcile Expenses On this screen, enter the following information: Internal Order number, Settlement Period, Fiscal Year. Ensure that the Test Run box is checked to perform a test run. Then, when ready, uncheck the Test Run box to complete the settlement. 55

Capitalization of Assets under Construction Create Internal Order Procure Material and Services to Internal Order Settle Internal Order Reconcile Expenses In PK missions, items may be issued from Galileo towards the AuC. These will be captured in a spreadsheet outside of Umoja. At the end of the year, the Asset Accounting Senior User reconciles the amount captured on the external spreadsheet against: Costs captured on the Internal Order All items supplied from Galileo inventory and other labor costs 56

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset At the end of the year, the Technical Experts will assess the percentage completion of the asset. Using calculations and standards from the Depreciated Replacement Cost Methodology, the AuC is valuated and the Asset Accounting Senior User makes a direct entry into Umoja to an AuC G/L account (non-budget consuming account). At this time there will be no entry recorded in the Fixed Asset ledger. 57

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset Following accounts will be debited with the value estimated in step 5: 27191014 FA Asset under Construction Building Cost Man 27195014 FA Asset under Construction Infrastructure CostMan The credit will be posted to accounts specifically created for this posting. These accounts do not consume budget as the actual costs were captured in the internal order and in Galileo. The accounts created are: 71999090 72199090 74999090 77299090 79989090 SB Capital Cost to Asset under Construction Official Travel Capital Cost to Asset Construction Operating Expense Capital Cost Asset Construction Consum Capital Cost to Asset under Construction Other Exp Capital Cost to Asset under Construction 58

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset The steps for making a direct entry in Umoja are as follows: 1 Enter the T-code FV50 in the Command field 1 59

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset Enter the appropriate data in the fields located in the Header section of the screen 2 Enter the current date in the Document Date field 3 Enter the year-end date in the Posting Date field 4 Enter the Internal Order number Reference field 5 Enter the name of the asset in the Doc.Header Text field 6 Enter the correct currency type in the Currency field 2 60

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset GL 7 Account Enter the field 7 D/C appropriate field (Debit/Credit) data for Amount each field G/L entry in Fund the field corresponding Business column Area fields. Cost Center field Functional These are the Area fields field that Segment need to be field populated in Grant the line field field of G/L Earmarked Document screen. Fund field GL Account field AuC Account Earmarked Funds, Doc item field Profit Center field D/C field (Debit/Credit) Text field Amount field Fund field Business Area field Cost Center field Functional Area field Posting Key: 40 (Debit Entry) 50 (Credit Entry) 61

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset GL Click Account the field button to review the posting. D/C field (Debit/Credit) Amount After reviewing field the simulated posting, click the Save as Completed Fund initiate field the workflow for approval. Business Area field Cost Center field Functional Area field Segment field Grant field Earmarked Fund field Earmarked Funds, Doc item field Profit Center field Text field button. This will 62

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset The G/L documents for all asset transactions can be viewed using the T-code FB03. GL Account field D/C field (Debit/Credit) Amount field Fund field Business Area field Cost Center field Functional Area field Segment field Grant field Earmarked Fund field Earmarked Funds, Doc item field Profit Center field Text field 63

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset After asset under construction is completed, it is recognized as a final asset. The Final Asset account needs to be created using the T-code AS01, by the Asset Accounting User. The following fields are required: Initial Screen: Asset Class and Company Code General Tab: Description, Quantity (always 1), check the Manage Historically box, Capitalized On date (if applicable) Time Dependent Tab: Cost Center, Fund, Grant (if applicable) Origin Tab: Vendor (if applicable) Net Worth Tab: Property Indicator Depreciation Area Tab: Useful life, Scrap value 64

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset Then, the Asset Accounting Senior User uses the T-code F-90 to: Debit (+) Credit (-) Final Asset AuC G/L Account Enter the Document and Posting dates Enter AA in the Document Type field Enter USD in the Currency/Rate field Enter the Internal Order number in Reference field Enter the data in the Period field 65

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset In the first line item, use the posting key 70 to debit the final asset: Enter the final asset number Transaction type Z11 Click the Fast Data Entry button when completed. Posting Key: 70 (Debit Asset) 50 (Credit Entry) 66

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset In the next screen, fill in the following information: Amount, Quantity (always 1). Click the More button to view additional information (derived from the asset master record). In the second line item, use the posting key 50 to credit the AuC accounts. Click the Fast Data Entry button when complete. 67

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset In the third screen, fill in the required value in the following fields: Amount Fund Funds Center Save the transaction when completed. Note: Care should be taken to input data in this T-code as the Simulate option does not exist. Moreover this document will be posted by the responsible officer without workflow. 68

Capitalization of Assets under Construction Assess Percentage of Completion Create AuC Record Final Asset Check the posting when completed. 69

Capitalization of Assets There are exceptional cases where a mission may contract out the construction of building to be completed within a year. In this case, the above procedure is followed with the exception that the FV50 step is not needed. Instead, the Asset Accounting User uses the T-code F-90 to: Debit (+) Credit (-) Final Asset One of the following Accounts 71999090 72199090 74999090 77299090 79989090 SB Capital Cost to Asset under Construction Official Travel Capital Cost to Asset Construction Operating Expense Capital Cost Asset Construction Consum Capital Cost to Asset under Construction Other Exp Capital Cost to Asset under Construction 70

Capitalization: Grant-Related For grants projects that generate assets, a separate internal order will not be created. The WBSE that's linked to the grant will be used to capture costs. The steps are exactly the same as previously, except in place of an Internal Order the WBSE will be used. In addition, the Asset Accounting Senior User uses the T-code CJ88 to settle the WBSE to the responsible cost center. 71

Capitalization: Grant-Related 72

Capitalization: Grant-Related In some cases, a mission may receive an in-kind donation of an asset that is not budgeted. A manual entry is used to debit the asset and credit revenue without consuming budget or cash. No Grant will be used for this solution. After capitalizing the fixed asset, the Facilities Planner in Real Estate will create the corresponding Real Estate objects and link the fixed asset. 73

Capitalization: Grant-Related Then, the Asset Accounting User uses the T-code F-90 to: Debit (+) Credit (-) Final Asset Revenue Account Enter the Document and Posting Dates Enter AA in the Document Type field Enter USD in the Currency/Rate field Enter the Grant number in Reference field Enter the data in the Period field 74

Capitalization: Grant-Related In the first line item, use the posting key 70 to debit the final asset: Enter the final asset number Transaction type Z10 Click the Fast Data Entry button when completed. Posting Key: 70 (Debit Asset) 50 (Credit Entry) 75

Capitalization: Grant-Related In the next screen, fill in the following information: Amount, Quantity (always 1). Click the More button to view additional information (derived from the asset master record). In the second line item, use the posting key 50 to credit the revenue account. The account number will be provided during training. Click the Fast Data Entry button when complete. 76

Capitalization: Grant-Related In the third screen, fill in the required value in the following fields: Amount Fund Funds Center Save the transaction when completed. Note: Care should be taken to input data in this T-code as the Simulate option does not exist. Moreover this document will be posted by the responsible officer without workflow. 77

Capitalization: Grant-Related Check the posting when completed. 78

Activity 1 Transaction Name: Capitalization of Asset under Construction Transaction Code: F-90 Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.3962?originalContext=1.11.2592 79

Learning Checkpoint 1 When are AuC assessed to determine their percentage of completion? Select the correct option. A. At the end of the month B. At the end of the quarter C. At the end of six months D. At the end of the year 80

Learning Checkpoint 1 When are AuC assessed to determine their percentage of completion? Select the correct option. A. At the end of the month B. At the end of the quarter C. At the end of six months D. At the end of the year Option D is the correct answer. This assessment is conducted at the end of the year. 81

Module 2 Summary The key points covered in this module are listed below: Standalone assets are capitalized at the time of receipt For assets under construction, an Internal Order is created to track costs incurred in Umoja. A separate spreadsheet maintained outside the system is used to track the full cost of the AuC Using calculations and standards from the Depreciated Replacement Cost Methodology, the AuC is valuated and a direct entry is made into Umoja to an AuC G/L account After asset under construction is completed, it is recognized as a final asset and capitalized Asset master record is created in the Asset ledger 82

Module 3 Objectives After completing this module, you will be able to: Run a depreciation run 84

Asset Accounting: Depreciation of Assets Asset Master Data Maintenance Acquisition of Assets Retirement of Assets Transfer of Assets Depreciation of Assets Revision of Useful Life Impairment of Assets Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed out of Umoja. The posting will be made separately into the system as part of another step. 85

Depreciation Review UN will depreciate asset on monthly basis. Both Depreciation and Impairment Loss are recorded in the General Ledger when a depreciation run is completed at the end of the month. The accounting entries that will be posted are: Depreciation Impairment Loss Debit (+) Credit (-) Debit (+) Credit (-) Depreciation Expense Accumulated Depreciation (Balance Sheet) Impairment Loss Accumulated Impairment (Balance Sheet) Note: All Asset Accounting transactions (example recording of new asset, shell record, retirement of the asset) post immediately in the General Ledger (G/L) except Depreciation and Impairment. 86

Modes for Depreciation Run Umoja can perform four depreciation runs. Planned Posting Run will be performed at each month end, others will be performed on need basis. Planned Posting Run Re-Run Restart Run Unplanned Posting Run 87

Planned Posting Run Planned Posting Run Re-Run Restart Run Unplanned Posting Run The UN will perform a depreciation run at the end of each month, as part of the month-end closing process. Umoja checks that a prior-month depreciation run has been posted before allowing the user to post a current-month depreciation. For example, processing of the depreciation run for the month of October can only take place after all depreciation postings/runs up to September are successfully completed. 88

Re-Run Planned Posting Run Re-Run Restart Run Unplanned Posting Run In case depreciation has to be re-run, it can only be done for the last period performed. The system will only consider changes that have taken place in the asset register since the last run. It will post depreciation amounts that were not posted in previous runs. 89

Restart Run Planned Posting Run Re-Run Restart Run Unplanned Posting Run The restart run option will be performed when the system was stalled and the depreciation run could not be completed. 90

Unplanned Posting Run Planned Posting Run Re-Run Restart Run Unplanned Posting Run The unplanned posting run option is generally not used. It can be used when running depreciation out of sequence. For example, executing the depreciation run for December when the last run was performed for September. 91

Depreciation of Assets The process to depreciate assets is as follows. This process involves the Financial Accounting Closing User: Review and Prepare for Depreciation Run Confirm Depreciation Mode Run in Test Mode and Foreground Run in Test Mode and Background Verify Depreciation Amounts Perform Actual Run Review Postings 92

Depreciation of Assets Review and Prepare for Depreciation Run Confirm Depreciation Mode Run in Test Mode and Foreground Run in Test Mode and Background Verify Depreciation Amounts The Financial Accounting Closing User reviews and finalizes any changes to the depreciation run. Note that the depreciation run is always performed at company code level, in UNHQ only. Missions will be required to ensure that the fixed asset master record are complete, have correct data, impairment, adjustments to useful lives etc. have been recorded before the run is performed. 93

Depreciation of Assets Review and Prepare for Depreciation Run Confirm Depreciation Mode Run in Test Mode and Foreground Run in Test Mode and Background Verify Depreciation Amounts Navigate to the Depreciation Posting Run screen using the T-code AFAB. 1 Enter the required year in the Fiscal Year field 2 Enter the required period in the Posting Period field 3 Select the Planned posting run option under Reason for posting run 4 Select the List assets option under Further options 5 Select the optional fields Test Run, Error Analysis under Parameters for Test Run 1 2 3 4 5 Click the Execute button to perform a test run. 94

Depreciation of Assets Review and Prepare for Depreciation Run Confirm Depreciation Mode Run in Test Mode and Foreground Run in Test Mode and Background Verify Depreciation Amounts A simulation is run in the foreground. Note that the system limits depreciation run to the first 1000 assets. 1 The status of the depreciation run is then displayed. If there are any errors, click the Error List button to review them. 1 Note: Normally no error will be reported as Umoja will not allow documents to be posted which are not complete in all respects. 95

Depreciation of Assets If there are no errors, the text run will be completely successfully. 96

Depreciation of Assets Review and Prepare for Depreciation Run Confirm Depreciation Mode Run in Test Mode and Foreground Run in Test Mode and Background Verify Depreciation Amounts After errors have been rectified, run the simulation in the background for all assets. 1 Click the Back button. To run it in the background, click the Program menu, then run in Background Click the System menu. A popup window appears. Select LOCL as the Output Device and click OK 2 2 1 Then, click the Immediate button and the Save button. 97

Depreciation of Assets Review and Prepare for Depreciation Run Confirm Depreciation Mode Run in Test Mode and Foreground Run in Test Mode and Background Verify Depreciation Amounts After the job is performed, check it by click the System menu and Own Jobs. Then, click the Spool button. 98

Depreciation of Assets Review and Prepare for Depreciation Run Confirm Depreciation Mode Run in Test Mode and Foreground Run in Test Mode and Background Verify Depreciation Amounts Review the report in the Type column. Click the Job Log button to view errors and description. 99

Depreciation of Assets Perform Actual Run Review Postings After all checks are complete and no errors exist, click the Back button to go to the Depreciation Posting Run screen. 1 Uncheck Test Run under Parameters for Test Run Perform the same steps for the background run Note that this will run as an actual posting. 1 100

Depreciation of Assets Perform Actual Run Review Postings Review depreciation postings. Monthly depreciation is shown as Ordinary Depreciation and Impairment is shown as Special Depreciation. To search for previous depreciation runs executed by the current user, use the T-code SMX. 101

Activity 1 Transaction Name: Depreciation Transaction Code: AFAB Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2402?originalContext=1.11.2592 102

Learning Checkpoint 1 UN will perform a depreciation run at the end of each. Fill in the blank with the correct option. A. Year B. Period C. Day D. Month 103

Learning Checkpoint 1 UN will perform a depreciation run at the end of each. Fill in the blank with the correct option. A. Year B. Period C. Day D. Month Option D is the correct answer. UN will perform a depreciation run at the end of each month, as part of the month-end closing process. 104

Learning Checkpoint 2 What is the correct order of activities to successfully perform a monthly depreciation run in Umoja? Select the correct option. A. Perform actual depreciation run> Perform depreciation run in test mode in the foreground processing > Perform depreciation run in test mode in background for all assets B. Perform depreciation run in test mode in the foreground processing > Perform actual depreciation run > Perform depreciation run in test mode in background for all assets C. Perform depreciation run in test mode in the foreground processing > Perform depreciation run in test mode in background for all assets > Perform actual depreciation run 105

Learning Checkpoint 2 What is the correct order of activities to successfully perform a monthly depreciation run in Umoja? Select the correct option. A. Perform actual depreciation run> Perform depreciation run in test mode in the foreground processing > Perform depreciation run in test mode in background for all assets B. Perform depreciation run in test mode in the foreground processing > Perform actual depreciation run > Perform depreciation run in test mode in background for all assets C. Perform depreciation run in test mode in the foreground processing > Perform depreciation run in test mode in background for all assets > Perform actual depreciation run Option C is the correct answer. 106

Module 3 Summary The key points covered in this module are listed below: The Depreciation and Impairment Loss are both recorded when a depreciation run is completed at the end of the month In Umoja, a depreciation run can be performed in four modes Re-Run, Planned Posting Run, Unplanned Posting Run and Restart Run The Depreciation Run is performed using the T-code AFAB 107

Module 4 Objectives After completing this module, you will be able to: Impair a fixed asset 109

Asset Accounting: Impairment of Assets Asset Master Data Maintenance Acquisition of Assets Retirement of Assets Transfer of Assets Depreciation of Assets Revision of Useful Life Impairment of Assets Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed out of Umoja. The posting will be made separately into the system as part of another step. 110

Impairment of Fixed Asset Review According to IPSAS, ongoing impairment reviews will occur when there is an event which can reduce the value of the asset compared to the book value. Impairment could be noted during the Asset verification exercise. An Accident or Natural Disaster An Asset Verification Exercise Per UN policy, an annual impairment review will be performed on all individual items of Plant, Property and Equipment (PPE) over USD 100,000. 111

Impairment of Fixed Asset Review Once the impairment values are accounted for and/or useful lives are changed to new estimated values, the remaining NBV is depreciated over the remaining useful lives. The following accounting entry for Impairment is recorded in the General Ledger during the monthly depreciation run: Debit (-) Credit (+) Impairment of Fixed Assets Accumulated Impairment (Balance Sheet) 112

Impairment of Fixed Asset The process to impair assets is as follows. This process involves the Senior Asset Accounting User: Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life Review the Fixed Asset Posted 113

Impairment of Fixed Asset Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life When an asset has been impaired, the Asset Accounting Senior User is informed to record it in the asset master record. In Umoja impairment is considered as an Unplanned Depreciation. Thus the screens in this section contain Unplanned Depreciation in the header. Within the Unplanned Depreciation screen, Transaction Types called Special Depreciation indicate impairment. Thus on the Asset Explorer screen, the user will find the impairment values in the Special Depreciation line. Transaction type 620 and 630 are used to record impairment. Transaction 620 relates to assets acquired in previous calendar year while 630 relates to asset acquired in current calendar year. For example, If an asset acquired in December 2013 is impaired in January 2014, transaction 620 will be used even though both December 2013 and January 2014 fall in PK fiscal year. 114

Impairment of Fixed Asset Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life To post the impairment value, enter the T-code ABAA. On the Unplanned Depreciation initial screen, enter the following details: 1 Enter the relevant asset number in the Asset Number field 2 Enter the relevant asset sub-number 1 in the Asset Sub-Number field if any 2 3 Enter a relevant approval document date in the Document Date field 4 Enter date that the impairment will be effective from in the Posting Date field 5 Enter Transaction type: Assets acquired in the prior year: 620 Assets acquired in the current year: 630 3 4 5 115

Impairment of Fixed Asset Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life On the next screen, enter the posting data: 1 Enter the impairment amount in the Amount Posted field 2 Click the Line Items button. The impairment amount shows up in this screen. Note the Transaction Type and Amount. 3 To post the impairment, click the Save button. A document number is generated. There is no workflow in this T-code. 2 1 3 116

Impairment of Fixed Asset Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life Using the T-code AW01N, review the Special depreciation value in the Asset Explorer. 117

Impairment of Fixed Asset Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life If the postings are not correct, the previous posting can be reversed using the T-code AB08. 118

Impairment of Fixed Asset Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life The Asset Reviewer revises the estimated useful life of the asset in the asset master record using the T-code AS02. Click the Depreciation Area tab and update the Useful Life field. 119

Impairment of Fixed Asset Receive Information on Impairment Post Impairment Value Review the Impaired Value Reverse the Posting if due to Error Revise Useful Life In order for the useful life change affect prospectively only, a new interval needs to be created with a start date of the first of the month in which the new useful life should take effect. In order to create a new interval, double-click the useful life field. Click the More Intervals button, then the Add Interval button. Insert the interval start date and new useful life. Note that the remaining useful life doesn't change until the end of the year. 120

Impairment of Fixed Asset Review the Fixed Asset Posted If the useful life has been adjusted, use the T-code AW01N to verify that the Ordinary depreciation amount is adjusted based on the change in useful life. 121

Activity 1 Transaction Name: Impairment of Assets Transaction Code: ABAA Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2482?originalContext=1.11.2592 122

Learning Checkpoint 1 Which of the following events can be considered as an impairment event? Select all that apply. A. A natural disaster B. Results from a periodic test or an asset verification exercise C. A man-made calamity D. An accident 123

Learning Checkpoint 1 Which of the following events can be considered as an impairment event? Select all that apply. A. A natural disaster B. Results from a periodic test or an asset verification exercise C. A man-made calamity D. An accident Option A, B and D are the correct answers. A natural disaster, accident or results from a periodic test or asset verification exercise are considered to be impairment events. 124

Module 4 Summary The key points covered in this module are listed below: Run the T-code ABAA to post an impairment value 125

Module 5 Objectives After completing this module, you will be able to: Retire a fixed asset by donation/scrapping and sale 127

Asset Accounting: Retirement of Assets Asset Master Data Maintenance Acquisition of Assets Retirement of Assets Transfer of Assets Depreciation of Assets Revision of Useful Life Impairment of Assets Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed out of Umoja. The posting will be made separately into the system as part of another step. 128

Retirement of Fixed Assets The Asset Retirement process involves the sale, donation or scrapping of a fixed asset. Some of the key points are as follows: After the asset has been approved for retirement, a notification is sent to the Asset Accounting Senior User Once notified, the Asset Accounting Senior User identifies the asset that needs to be retired in the Accounting system, the portion of the asset (if partial disposal) and the effective date of the transaction (sale, donation or scrapping) 129

Retirement of Fixed Assets Sale: If the retirement is through sale to a customer (whether on a profit or loss) it is performed through the Standard Order process in the Sales and Distribution module and manually entered in the Fixed Asset module. Donation/Scrapping: When assets are being donated or scrapped, the transaction is manually entered in the Fixed Asset module and the system calculates the losses and posts these entries automatically in the G/L. Note: In the interim, Umoja will track only real estate (including Real Estate under Construction, excluding prefab buildings) and intangible assets. 130

Retirement of Fixed Assets: Process The process to retire assets by donation/scrapping or sale is as follows. This process involves the Senior Asset Accounting User: Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted 131

Retire Fixed Asset by Scrapping or Donation If the asset retirement is through scrapping of the fixed asset (retirement at NBV), the entire NBV as on the date of the scrapping is recognized as a loss. An example of the accounting entry for the Asset donation for an asset which cost $100 and with a NBV of $8 would be as follows: Debit (+) Credit (-) Loss on Asset Scrapping Accumulated Depreciation $8.00 $92.00 Asset Cost $100.00 132

Retire Fixed Asset by Scrapping or Donation If the asset retirement is through donation to another UN agency, a host country or other donation recipient, the accounting entries are similar to the scrapping of a fixed asset at NBV, save for the G/L accounts which will be different. An example of the accounting entry in the Fixed Asset module for the asset donation for an asset which costs $100 and with a NBV of $92 would appear as follows: Debit (+) Credit (-) Loss on Asset Donation Accumulated Depreciation $8.00 $92.00 Asset Cost $100.00 133

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted When an asset has been retired, the Asset Accounting Senior User is informed to take action. 134

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted To retire fixed asset by scrapping or donation, use the T-code ABAVN. 1 2 Enter the asset number in the Asset field Click the Transaction Data tab. Enter the approval date in the Document Date field Enter the date in the Posting Date field Enter the posting date in the Asset Value Date field Enter relevant text in the Text field and press Enter 1 2 135

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted 1. 3 Click the Additional Details tab. Enter the following details and press Enter: Enter the posting period in the Posting Period field Enter the transaction type in the Transaction Type field Note: For scrapping use 200 for prior calendar year acquisition; 250 for current calendar-year acquisition. For donation use Z20 for prior calendar year acquisition and Z25 for current calendar-year acquisition Enter the reference number in the Reference field 3 136

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted 1. 4 Click the Simulate button to run the post as a simulation 2. 5 Click the Save button to run the transaction when it is ready to post. At this point, a document number is generated. 4 5 There is no workflow for this transaction. 137

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted If the postings are not correct, the previous posting needs to be reversed using the T- code AB08 to find and reverse any transactions such impairment, transfer or retirement. 138

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted Use the T-code AW01N to review the asset value. Double-click a transaction to review it. 139

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted Review the accounting documents. Alternatively, this screen can also be accessed using the T-code FB03 and the document number generated. 140

Retire Fixed Asset by Scrapping or Donation Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted Click the General Ledger button to view the G/L account documents. 141

Retire Fixed Asset by Sale If the retirement is a sale with a profit or loss, the asset sale would be performed through the Standard Order process in the Sales and Distribution module. In the transactional screen in Umoja, the Sales Processor enters the amount of consideration that will be received on the sale of the asset. The system then posts the debit to the customer account (receivable). The entry is balanced to default suspense account (69101020), as the Sales and Distribution module cannot directly access the individual records of the Fixed Asset module. As shown below, the accounting entry is balanced to default the suspense account, as the Sales and Distribution module cannot directly access the individual records of the Fixed Asset module. Debit (+) Credit (-) Customer $5.00 Fixed Asset Sale Suspense (Balance Sheet) $5.00 142

Retire Fixed Asset by Sale Subsequently, the Asset Accounting Senior User records the reduction of the assets against the suspense account (69101020). The system automatically calculates the gains/losses. Accordingly, the accounting entry (net effect) for an asset, which costs $100 and with a NBV of $8 and sold for $5 would be as follows: Fixed Asset Sale Suspense (Balance Sheet) Accumulated Depreciation Loss on Sale (Retirement) Asset Cost Debit (+) Credit (-) $5.00 $92.00 $3.00 $100.00 If the asset was sold for $15, then a credit entry (Gain of $7) would be posted instead of a loss. 143

Retire Fixed Asset by Sale Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted When an asset has been retired, the Asset Accounting Senior User is informed to take action. 144

Retire Fixed Asset by Sale Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted To retire fixed asset by sale, use the T-code ABAON. 1 Click the Transaction Data tab. Enter the following details and press Enter: Enter the date in the Document Date field Enter the date in the Posting Date field Enter the revenue amount in the Manual Revenue field 1 145

Retire Fixed Asset by Sale Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted 1. 2 Click the Simulate button to run the post as a simulation 2. 3 Click the Save button to run the transaction when it is ready to post 2 3 146

Retire Fixed Asset by Sale Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted If the postings are not correct, the previous posting needs to be reversed using the T-code AB08 to find and reverse any transactions such impairment, transfer, retirement. 147

Retire Fixed Asset by Sale Receiving Information on Retirement Post Retirement Reverse the Posting if due to Error Review the Fixed Asset Posted Use the T-code AW01N to review the asset value. Double-click the transaction to review the asset accounting and G/L documents. 148

Activity 1 Transaction Name: Retirement of Assets by Scrapping Transaction Code: ABAVN Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2470?originalContext=1.11.2592 149

Learning Checkpoint 1 In which of the following cases are accounting entries considered similar to the scrapping of a fixed asset at NBV? Select all that apply. A. If the asset retirement is through donation to another UN agency B. If the asset retirement is through donation to a host country C. If the asset retirement is not through donation to a host country D. If the asset retirement is not through donation to another UN agency 150

Learning Checkpoint 1 In which of the following cases are accounting entries considered similar to the scrapping of a fixed asset at NBV? Select all that apply. A. If the asset retirement is through donation to another UN agency B. If the asset retirement is through donation to a host country C. If the asset retirement is not through donation to a host country D. If the asset retirement is not through donation to another UN agency Option A and B are the correct answers. If the asset retirement is through donation to another UN agency or a host country, the accounting entries are similar to the scrapping of a fixed asset at NBV. 151

Module 5 Summary The key points covered in this module are listed below: Retirement of fixed assets can be by donation or scrapping or by sale To retire fixed asset by scrapping or donation, use the T-code ABAVN To retire fixed asset by sale, use the T-code ABAON 152

Asset Accounting: Transfer of Assets Asset Master Data Maintenance Acquisition of Assets Retirement of Assets Transfer of Assets Depreciation of Assets Revision of Useful Life Impairment of Assets Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed out of Umoja. The posting will be made separately into the system as part of another step. 154

Module 6 Objectives After completing this module, you will be able to: Transfer a fixed asset 155

Transfer Fixed Assets The Asset Transfer process involves physical movement of fixed assets, or the transfer of ownership for real estate and intangible assets. In UN, transfer of assets involves the following scenarios: Transfer of assets from one mission to another mission Transfer of assets between grants Transfer of assets between Peacekeeping and Regular Budget Projects Receives a notification on completion of a transfer Asset Accounting Senior User Identifies assets that have been transferred 156

Accounting Entries Accounting documents are created when the transfer crosses funds, business areas, segments or grants. For transfers across funds, business areas, segments or grants, a Financial Accounting posting will be automatically created to record the transfer at NBV only. The receiving fund is charged any future depreciation expense. The accounting entries for the transfer of assets would appear as follows: An example of accounting entry in the transferor s books: Transfer between funds fixed assets out (Expense) Accumulated Depreciation Asset Cost Debit (+) Credit (-) $70.00 $30.00 $100.00 An example of accounting entry in the transferee s books: Asset (new) Accumulated Depreciation Transfer between funds fixed assets in (Revenue) Debit (+) Credit (-) $100.00 $30.00 $70.00 157

Transfer of Assets: Process The process to transfer assets is as follows. This process involves the Senior Asset Accounting User: Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted 158

Transfer of Assets: Receive Information Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted The Asset Accounting Senior User: Receives a notification informing them of the completion of the physical transfer, asset details and the dates of the asset transfer Identifies the assets that have been transferred Creates a new asset master record for the transferee s books. The new asset master will contain the new description, location, cost center and fund information. The new asset master will also store the reference of the original asset from the transferor s books 159

Transfer of Assets: Enter Asset Number Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted Step 2: The new Asset Master Record can be created directly on the Transfer screen. To transfer a fixed asset, enter the T-code ABUMN. 1 Enter the asset number in the Asset field 2 Click the Transaction Data tab 2 1 160

Transfer of Assets: Create Asset Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted In the Transaction Data tab enter the following details and press Enter: 1 Enter a relevant document date in the Document Date field 2 Enter a transfer recognized date in the Posting Date field 3 If a new Asset Master Record has been created, select Exiting Asset and enter the asset number 4 If a new Asset Master Record has not been created, select New Asset and click the Master Data button 3 4 1 2 4 161

Transfer of Assets: Create Asset Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted When creating a new Master Data from the Transfer screen, most information is prepopulated based on existing asset. The user can click the Additional Data button to go to the change master data screen. This is the same as using T-code AS01 (to create master data record). 162

Transfer of Assets: Create Asset Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted The only information that needs to be entered are: fund, grant and cost center. All other information will be derived. Click the Save icon to save the record. Once this record is saved, a new asset master number is created by the system. 163

Transfer of Assets: Post Transfer Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted To transfer a fixed asset: 1 2 3 4 Click the Additional Details tab Enter the Posting Period Enter Z1 as the budget relevant value and Z2 as the non-budget relevant value in the Transfer Variant field Click the Simulate button to run the post as a simulation. It is possible to change the layout on the next screen to include the Fund information 4 2 3 1 164

Transfer of Assets: Review the New Asset Posted Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted When ready to post, click the Save button to run the transaction. The new asset master record can be checked using the T-code AS03. 165

Transfer of Assets: Review the New Asset Posted Receive Information on Transfer Create Asset and Post Transfer Review the New Asset Posted Click the Other Ledger button and select FM Document to verify the entry for Fund balancing. 166

Activity 1 Transaction Name: Transfer of Assets Transaction Code: ABUMN Link to the uperform simulation: http://unsapuperform.umoja.un.org/gm/folder- 1.11.2474?originalContext=1.11.2592 167

Learning Checkpoint 1 In UN, transfer of assets involves which of the following scenarios? Select the correct option. A. Transfer of assets from one mission project to another project of the same mission B. Transfer of assets between multiple missions C. Transfer of assets between Peacekeeping and Regular Budget Projects D. Partial transfer of assets by proportion of the acquisition cost 168

Learning Checkpoint 1 In UN, transfer of assets involves which of the following scenarios? Select the correct option. A. Transfer of assets from one mission project to another project of the same mission B. Transfer of assets between multiple missions C. Transfer of assets between Peacekeeping and Regular Budget Projects D. Partial transfer of assets by proportion of the acquisition cost Option C is the correct answer. In UN, transfer of assets involves transfer between Peacekeeping and Regular Budget Projects. 169

Module 6 Summary The key points covered in this module are listed below: The Asset Transfer process involves physical movement of fixed assets, or the transfer of ownership for real estate and intangible assets Accounting documents are created when the transfer crosses funds, business areas, segments or grants The new asset master will contain the new description, location, cost center and fund information. The new asset master will also store the reference of the original asset from the transferor s books When creating a new Master Data from the Transfer screen, most information is prepopulated based on existing asset To transfer a fixed asset, use the T-code ABUMN 170

Module 7 Objectives After completing this module, you will be able to: Run the reports related to Asset Accounting 172

Reports The reports related to Asset Accounting are below: Asset Balances Asset History Sheet Ordinary Depreciation Unplanned Depreciation Changes to Asset Master Records Asset Acquisitions, Retirements, Transfers, Transactions Asset Master Validation Note: The selection of data chosen for each report can be set in the initial screen. 173

Asset Balances Report This report displays the values of all assets in a depreciation area. The user can filter and customize this report based on how he or she would like to view assets. To generate this report, use the T-code S_ALR_87011963. 174

Asset History Sheet This report is the most important and most comprehensive asset report for the yearend closing or for an interim financial statement. This report contains information from opening balances to the end of the year. To generate this report, use the T-code S_ALR_87011990. 175

Ordinary Depreciation This report displays the value of ordinary depreciation of assets for a fiscal year. To generate this report, use the T-code S_ALR_87012006. 176

Unplanned Depreciation This report displays the value of unplanned depreciation of assets for a fiscal year. To generate this report, use the T-code S_ALR_87012008. 177

Changes to Asset Master Records This report lists the changes to the Asset Master Record. To find the list of users who modified an asset master record, run the T-code AS03. Click the Environnent menu, Change documents and On asset. 178

Asset Transactions The reports below list different transactions such as Asset Acquisitions, Retirements, Transfers. Use the following T-codes for asset transaction reports: All Asset Transactions: S_ALR_87012048 Asset Acquisitions: S_ALR_87012050 Asset Retirements: S_ALR_87012052 Asset Transfers: S_ALR_87012054 179

Asset Transactions In this example, we have used the T-code S_ALR_87012050 to display the Asset Acquisitions report. 180

Asset Master Validation This report displays all relevant asset master fields, including linkages to real estate objects for validation. To view all UN assets in the Umoja ECC system, open the Asset Master Validation Report using the T-code ZAAVALAS. This displays all relevant asset master fields, including linkages to real estate objects for validation. 181

Learning Checkpoint 1 Which of the following reports are correctly defined? Select all that apply. A. Asset Balances Report: Displays the values of all assets in a depreciation area. B. Unplanned Depreciation Report: Displays the value of ordinary depreciation of assets for a fiscal year. C. Asset History Sheet: Displays the changes to asset master records. D. Asset Master Validation: Displays all relevant asset master fields, including linkages to real estate objects for validation. 182

Learning Checkpoint 1 Which of the following reports are correctly defined? Select all that apply. A. Asset Balances Report: Displays the values of all assets in a depreciation area. B. Unplanned Depreciation Report: Displays the value of ordinary depreciation of assets for a fiscal year. C. Asset History Sheet: Displays the changes to asset master records. D. Asset Master Validation: Displays all relevant asset master fields, including linkages to real estate objects for validation. Option A and C are the correct options. Unplanned Depreciation Report displays the value of unplanned depreciation of assets for a fiscal year. Asset History Sheet is the most important and most comprehensive asset report for the yearend closing or for an interim financial statement. 183

Module 7 Summary The key points covered in this module are listed below: To generate an Asset Balances Report, use the T-code S_ALR_87011963 To generate an Asset History Sheet, use the T-code S_ALR_87011990 To generate an Ordinary Depreciation report, use the T-code S_ALR_87012006 To generate an Unplanned Depreciation report, use the T-code S_ALR_87012008 To view changes to Asset Master Records, use the T-code AS03 To view Asset Transactions reports, use the T-codes S_ALR_87012048, S_ALR_87012050, S_ALR_87012052 and S_ALR_87012054 To generate an Asset Master Validation report, use the T-code ZAAVALAS 184

Agenda Course Introduction Module 1: Umoja Asset Accounting Review Module 2: Acquisition of Fixed Assets Module 3: Depreciation Module 4: Impairment of Fixed Asset Module 5: Retirement of Fixed Asset Module 6: Transfer of Fixed Asset Module 7: Asset Accounting Reports Course Summary Course Assessment Course Survey 185

Course Summary The key points covered in this course are listed below: Umoja Asset Accounting is an interim process applicable to Peacekeeping and Special Political Missions that continue to use Galileo to manage most fixed assets Asset Accounting always refers to the fiscal year Asset Accounting encompasses the entire lifetime of the asset. It begins with the maintenance of the asset master data. The asset lifetime is accounted from the initial acquisition through its retirement or transfer A depreciation run can be performed in four modes including Re-Run, Planned Posting Run, Unplanned Posting Run and Restart Run Ongoing impairment reviews occur when there is an impairment event and during asset verification exercises Fixed assets can be retired through scrapping/donation or sale Assets that have been transferred need to be identified and a new asset master record is created for the transferee s books A range of reports associated with Asset Accounting can be run in Umoja 186

Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 188

Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 190

Congratulations! You have successfully completed the Umoja Asset Accounting Process course. 191