read and understand the process workflow of below document and wait for my next request.

A. Capex Budgeting and Approval

Process Step Explanation: This step involves initiating the request for capital expenditure for purchasing or developing a fixed asset. The Capex request must outline the need for the asset and its expected benefits to the organization.
Documentation:
Capital Expenditure Request Form: A formal document used to request the allocation of funds for the asset.
Business Justification Document: Provides the rationale and expected benefits of the asset acquisition.
Management Approval Signatures: Approval from authorized personnel to proceed with the expenditure.
Quality and KPI:
Audit Trail: Regular audits of Capex requests ensure compliance with budgeting policies.
KPI: Percentage of timely approved Capex requests vs. total submissions.
B. Procurement Process

Process Step Explanation: This step involves securing approvals and processing purchase orders, ensuring that the asset procurement aligns with company policies and procedures.
Documentation:
Purchase Requisition: A formal request to purchase the asset, ensuring the necessity and availability of funds.
Purchase Order (PO): An official order issued to the vendor detailing the asset specifications and terms.
Approved Vendor Selection Criteria: Documentation ensuring vendors are selected based on predefined criteria.
Quality and KPI:
Vendor Audits: Regular assessments of vendor selection criteria to ensure quality.
KPI: Supplier delivery performance; accuracy of purchase orders.
C. Asset Acquisition

Process Step Explanation: Once the asset is received, it must be recorded in the financial systems. This step involves verifying the asset condition and getting all necessary documentation in order.
Documentation:
Vendor Invoice: A bill from the supplier detailing the cost of the asset.
Goods Receipt Note: Verification that the asset was received in good condition.
Acceptance Test Records (if applicable): Documentation of testing to ensure the asset meets required specifications.
SAP Transaction Codes:
F-90: Used to post the acquisition of the asset in SAP.
MIRO: Used to enter the vendor invoice and track payments.
Journal Entry Example:
Debit: Fixed Asset account to increase asset value.
Credit: Accounts Payable to recognize the liability.
Quality and KPI:
Quality Checks: Regular inspections and testing upon receipt of assets.
KPI: Accuracy of asset records entered into the system.
D. Asset Master Data Setup

Process Step Explanation: Establishing a detailed record for the asset in the SAP system to ensure proper management, tracking, and reporting throughout its lifecycle.
Documentation:
Asset Master Data Creation Form: A form capturing all pertinent data about the asset.
Asset Identification Plate or Number: Unique identifier for the asset.
SAP Transaction Codes:
AS01: Used to create an asset master record in SAP.
Quality and KPI:
Data Quality Audit: Routine checks to ensure asset records are accurate and complete.
KPI: Percentage of accurate asset master records maintained.
E. Asset Capitalization

Process Step Explanation: The process of recognizing the asset on the balance sheet and starting the depreciation calculation. Capitalization ensures the asset is ready for productive use.
Documentation:
Capitalization Request Form: Indicates approval to capitalize the asset.
Approval from Financial Controller: Ensures financial oversight and compliance.
Journal Entry Example:
Not separately recorded; this integrates with depreciation processing.
Quality and KPI:
Audit Review: Verification of capitalization entries during financial audits.
KPI: Time from acquisition to capitalization.
F. Depreciation Process

Process Step Explanation: Periodic depreciation reflects the asset's usage and reduces its book value over time. This process aligns financial statements with the asset's decreasing utility.
Documentation:
Depreciation Schedule: Details the depreciation rate and period.
Asset Useful Life Details: Lists expected useful life for accurate accounting.
SAP Transaction Codes:
AFAB: Executes the automated depreciation run in SAP.
Journal Entry Example:
Debit: Depreciation Expense to reflect cost.
Credit: Accumulated Depreciation to decrease asset value.
Quality and KPI:
Depreciation Review: Regular audits of depreciation schedules for compliance and accuracy.
KPI: Variance analysis of actual vs. planned depreciation.
G. Asset Revaluation (if applicable)

Process Step Explanation: Adjusts the asset's value on the balance sheet to reflect changes in market conditions, ensuring accurate reporting.
Documentation:
Revaluation Report: Provides details and rationale for the revaluation.
Market Valuation Certificate: Confirmed market value by an independent source.
SAP Transaction Codes:
ABAW: Used for manual revaluation processing.
Journal Entry Example:
Debit: Fixed Asset account to increase the asset's value.
Credit: Revaluation Reserve for accounting the fair value change.
Quality and KPI:
Revaluation Audit: Ensure that revaluations are justified and documented.
KPI: Frequency of revaluation for asset categories.
H. Periodic Asset Audit and Maintenance

Process Step Explanation: Routine checks ensure that assets are properly maintained and accounted for, preventing loss and ensuring optimal use.
Documentation:
Physical Verification Reports: Confirms the physical existence and condition of assets.
Maintenance Logs: Records of all asset maintenance activities.
SAP Functionality: Uses inventory and audit reports to assist with verification.
Quality and KPI:
Regular Audits: Scheduled audits to verify asset condition and location.
KPI: Percentage of assets verified in periodic audits.
I. Asset Transfer or Internal Movement

Process Step Explanation: Manages the logistical and financial aspects of moving assets within departments, ensuring records are updated promptly.
Documentation:
Transfer Request Form: Initiates the process of asset relocation.
Updated Asset Records: Ensures records reflect the new location or custodians.
SAP Transaction Codes:
ABUMN: Records the internal transfer in SAP.
Quality and KPI:
Compliance Checks: Ensure transfers are authorized and documented correctly.
KPI: Time taken to update records post-transfer.
J. Asset Disposal

Process Step Explanation: Records the removal of an asset from the books, whether via sale, scrapping, or retirement, ensuring proper financial and operational handling.
Documentation:
Disposal Request Approval: Authorized documentation to dispose of the asset.
Sales Agreement (if sold): Contractual terms of sale.
Disposal Method Statement: Details how the asset will be disposed.
SAP Transaction Codes:
ABAON: Records disposal without customer details.
F-92: Records sale involving a customer.
Journal Entry Example:
Debit: Accumulated Depreciation to clear depreciation cost.
Debit/Credit: Record any loss/gain on the sale.
Credit: Fixed Asset to remove it from books.
Quality and KPI:
Disposal Review: All disposals should be reviewed for compliance with policies.
KPI: Ratio of timely processed disposals to requests.
K. Reconciliation and Reporting

Process Step Explanation: Involves verifying that all ledger entries match physical assets and generating reports for financial and management reviews.
Documentation:
Reconciliation Statements: Documents matching of physical and financial records.
Fixed Asset Ledger Reports: Provides a comprehensive overview of all asset transactions.
Quality and KPI:
Routine Reconciliations: Scheduled reconciliations to ensure data integrity.
KPI: Number of reconciliation discrepancies identified and resolved per period.
These enhancements strengthen the fixed asset accounting process by ensuring rigorous audit controls, quality checks, and measurable performance through KPIs, ultimately leading to more efficient and reliable asset management.