Asset Planning – An overview
Introduction
The Asset Planning component is the first stage in the capital procurement process. Asset Planning component facilitates the budgeting and asset proposal process.
The three steps involved in the asset planning are:
Budget requirement generation
Budgets
Asset Proposal
Feature Highlights
Budget requirements can be defined for each posting finance book and sent to Corporate, seeking approval.
Budget can be defined for the financial year, finance book, asset class and currency combination either based on a requirement or non-requirement based budget.
After the budget is defined for a finance book, asset acquisition proposal can be defined for an asset or a group of assets. The asset acquisition proposal is typically a financial sanction prior to the purchase of the fixed asset. Whenever asset proposals are defined, the proposal number will be validated during Purchase Order, Invoice and asset capitalization.
Provision for creating retirement proposal for a fixed asset by which approval for asset values exceeding a specified limit needs to be made prior to retirement of the fixed asset.
List of Activities
Go to Activity… |
For… |
Create Budget Requirement |
Defining the budget requirements for a financial year, finance book, asset class and currency combination. |
Edit Budget Requirement |
Modifying the budget requirement if necessary. |
Authorize Budget Requirement |
Authorizing the budget requirement to enable the budget process. |
Amend Budget Requirement |
Amending the budget requirements to either increase or decrease the requirement amount. |
View Budget Requirement |
Viewing the details of budget requirement. |
Create Budget |
Defining the budget for a financial year, financial period, asset class and currency combination either based on a budget requirement or direct. |
Edit Budget |
Modifying the budget details before authorization. |
Authorize Budget |
Authorizing the budget details to make it active and enable the asset proposal process. |
Amend Budget |
Amending the budget after authorization to make an increase or decrease the budget amount. |
View Budget |
Viewing the budget details including the budget amount, utilized amount and the variance amount. |
Create Asset Proposal |
Defining the asset proposal details for asset acquisition or asset retirement. |
Edit Asset Proposal |
Modifying the asset proposal details if necessary. |
Authorize Asset Proposal |
Authorizing asset proposal to make it active and enabling the purchase process or retirement process. |
Amend Asset Proposal |
Modifying the asset proposal details after authorization to either increase or decrease the proposal amount. |
Close Asset Proposal |
Pre-closing the asset proposal if not required any more. |
View Asset Proposal |
Viewing the asset proposal details including the proposal amount, utilized amount, committed amount, liability booked amount and the balance available amount. |
Maintain Asset Proposal Rule Definition |