Central Asset Accounting & Cross system processes in Central Finance

[nitin_gupta10]

With Central Asset Accounting being introduced the processes are split between source and target system and this scenario is generally called Cross System Processes in Asset Accounting.

In this blog I will not share any configuration or technical topic but its more focused on end-to-end process and is relevant from functional perspective.

Before you get a perspective of Cross system processes, I would recommend you reading the below blogs

• Central Asset Accounting


• Central Budgeting with Central Finance

Process looks as below:

1. Budgeting
   
   
   
   1. Although it’s a separate process but budgeting is important for CAPEX purchases. Central Finance provides the Central Budgeting for Internal Orders and Projects. Budget will be maintained in Central system but will be consumed via transactions in source systems. More details are available here
   
   
   
   


2. Asset Acquisition
   
   
   
   • Acquisition is a complex process and different organizations have different processes for the same. Most of them uses FI-MM integrated process where Purchase Order is either created on Internal Order, WBS or directly on Asset/AuC. With the central Asset Accounting the AuC/Asset numbers are not available in SAP ECC (source system) anymore so the integrated process with purchasing is NOT supported by Central Asset accounting. User can not assign Asset number/AuC in Purchase Requisition/Purchase Order and the GR/IR will not post any asset acquisition.
   
   
   • What is supported with Central Asset Accounting is below:
     
     
     
     1. Asset Acquisition with Clearing Account with Open item management –
        
        
        
        • Here in asset accounting the clearing account used can be technically cleared in source system.
        
        
        • Post vendor invoice (via FB60) in ECC with clearing account
        
        
        • Invoice will be replicated to CFIN
        
        
        • Post F-91 in CFIN
        
        
        
        
     
     
     
     
   
   
   
   

courtesy - SAP

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  •   In case the Central Clearing for Open items is not activated then the process looks as below
  
  
  
  

courtesy - SAP

• Central Settlement from Order to Fixed Asset
  
  
  
  • Here the Order is created and replicated to CFIN
  
  
  • Create Asset master data in CFIN
  
  
  • Maintain settlement rule for the replicated order
  
  
  • Posting is made on order and is replicated to CFIN
  
  
  • Order will receive the cost and that can be settled to Fixed Asset
  
  
  
  

courtesy - SAP

• Central settlement of AuC
  
  
  
  • Create IO in source and replicate it as Investment Order
  
  
  • AuC will be created automatically
  
  
  • Maintain settlement rule
  
  
  • Cost posting on IO
  
  
  • Replication to CFIN
  
  
  • Settle the Investment Order
  
  
  • Create Asset in CFIN
  
  
  • Settle AuC to Asset
  
  
  
  


• Central settlement of WBS
  
  
  
  • Process should be same, only the cost collection will be on WBS
  
  
  
  

3. Asset Accounting Processes

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    • All processes like Depreciation run, Intercompany and Intra company transfer, reporting should happen in CFIN system
    
    
    
    
  
  
  
  

4. Asset Retirement

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  • Retirement should also happen in Central system
  
  
  • If the sales process in involved and customer revenue needs to be posted then the FB70 invoice should be posted in ECC and that will be replicated
  
  
  • Post Asset retirement via ABAON in CFIN directly
  
  
  
  

This whole process is complex and not that user friendly and at lot of instances the process needs to be changed since I have seen, lot of customers uses FI-MM integrated process for Asset purchases. However this is the scenario for interim (long term) and is an additional step towards centralization of finance function and enable the shared service.