Read below foxed asset accounting flow and rectify if needed. and alpha numeric bullets and add space after each point.

Certainly! Let's delve into the Record to Report (R2R) Fixed Asset Accounting process in an SAP ERP environment, starting from the very beginning stage. This explanation includes comprehensive details on the documentation required at each stage, alongside SAP transaction codes and journal entries.

1. Capex Budgeting and Approval
Process Step: Initiate a Capital Expenditure (Capex) request for acquiring or creating a fixed asset.
Documentation:
Capital Expenditure Request Form
Business Justification Document
Management Approval Signatures
2. Procurement Process
Process Step: Obtain necessary approvals and process purchase orders for the asset.
Documentation:
Purchase Requisition
Purchase Order (PO)
Approved Vendor Selection Criteria
3. Asset Acquisition
Process Step: Record the acquisition of the fixed asset once received.
Documentation:
Vendor Invoice
Goods Receipt Note
Acceptance Test Records (if applicable)
SAP Transaction Codes:
F-90: Post acquisition with vendor
MIRO: Enter Incoming Invoice
Journal Entry Example:
Debit: Fixed Asset (e.g., Machinery)
Credit: Accounts Payable
4. Asset Master Data Setup
Process Step: Create an asset master data record to manage and track the asset.
Documentation:
Asset Master Data Creation Form
Asset Identification Plate or Number
SAP Transaction Codes:
AS01: Create Asset Master Record
5. Asset Capitalization
Process Step: Capitalize the asset to begin depreciation.
Documentation:
Capitalization Request Form
Approval from Financial Controller
Journal Entry Example:
No separate journal entry: This is part of the closing process and integrated with depreciation.
6. Depreciation Process
Process Step: Calculate and post periodic depreciation.
Documentation:
Depreciation Schedule
Asset Useful Life Details
SAP Transaction Codes:
AFAB: Execute Depreciation Run
Journal Entry Example:
Debit: Depreciation Expense
Credit: Accumulated Depreciation
7. Asset Revaluation (if applicable)
Process Step: Revalue fixed assets to reflect market changes.
Documentation:
Revaluation Report
Market Valuation Certificate
SAP Transaction Codes:
ABAW: Manual Revaluation
Journal Entry Example:
Debit: Fixed Asset
Credit: Revaluation Reserve
8. Periodic Asset Audit and Maintenance
Process Step: Conduct regular assessments of assets.
Documentation:
Physical Verification Reports
Maintenance Logs
SAP Functionality: Inventory and audit reports
9. Asset Transfer or Internal Movement
Process Step: Handle physical and financial transfer of assets within departments.
Documentation:
Transfer Request Form
Updated Asset Records
SAP Transaction Codes:
ABUMN: Transfer within Company Code
10. Asset Disposal
Process Step: Record the disposal through sale, scrapping, or retirement.
Documentation:
Disposal Request Approval
Sales Agreement (if sold)
Disposal Method Statement
SAP Transaction Codes:
ABAON: Asset Sale without Customer
F-92: Asset Sale with Customer
Journal Entry Example:
Debit: Accumulated Depreciation
Debit/Credit: Loss/Gain on Sale of Asset
Credit: Fixed Asset
11. Reconciliation and Reporting
Process Step: Ensure ledger entries reconcile with actual asset data and generate reports.
Documentation:
Reconciliation Statements
Fixed Asset Ledger Reports
These steps reflect a comprehensive approach to Fixed Asset Accounting in SAP ERP, tracking assets from the initiation of an expenditure request through various stages of their lifecycle, ensuring compliance, accuracy, and providing valuable financial reporting.