Business Blueprint

Asset Creation

1 BUSINESS PROCESS OVERVIEW.........................................................................................................3

2 PROCESS OF ASSET CREATION..........................................................................................................4
2.1 SELECT ASSET CLASS.................................................................................................................................5
2.2 COMPANY CODE........................................................................................................................................5
2.3 NUMBER OF SIMILAR ASSETS........................................................................................................................5
2.4 GENERAL DATA.........................................................................................................................................6
2.4.1 Asset Description...........................................................................................................................6
2.4.2 Asset Main No. Text.......................................................................................................................6
2.4.3 Quantity.........................................................................................................................................6
2.4.4 UOM ............................................................................................................................................6
2.4.5 Capitalization Date........................................................................................................................6
2.5 TIME DEPENDENT DATA.............................................................................................................................6
2.5.1 Cost Center....................................................................................................................................6
2.5.2 Site.................................................................................................................................................7
2.5.3 License Plate Code........................................................................................................................7
2.5.4 Personal Number...........................................................................................................................7
2.6 ALLOCATIONS............................................................................................................................................7
2.6.1 Evaluation Group 1.......................................................................................................................7
2.6.2 Evaluation Group 2.......................................................................................................................8
2.6.3 Evaluation Group 3.......................................................................................................................8
2.6.4 Evaluation Group 4.......................................................................................................................9
2.6.5 Evaluation Group 5.......................................................................................................................9
2.7 ORIGIN...................................................................................................................................................10
2.8 DEPRECIATION AREAS...............................................................................................................................10
2.8.1 Depreciation Key.........................................................................................................................10
2.8.2 Useful Life....................................................................................................................................11
2.8.3 Depreciation Start Date...............................................................................................................11
2.9 CREATION OF ASSET NUMBER....................................................................................................................11
3 SUB-ASSET CREATION.........................................................................................................................11

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4 SPECIAL ASSETS....................................................................................................................................12
4.1 SMALL VALUE IMMOVABLE ASSETS WITH LARGE QTY...................................................................................12
4.2 SMALL VALUE MOVABLE ASSETS WITH LARGE QTY.....................................................................................12
4.3 BUILDING & PERMANENT IMPROVEMENT ...................................................................................................12
4.4 ELECTRICAL WO.....................................................................................................................................13

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1 Business Process Overview
The term "asset" is used for simple assets, as well as for complex large-scale
assets that consist of a number of component assets. The main asset number
that is developed after the asset is created, represents the asset as a whole.

For an asset to be created, the asset should be identifiable and countable. For
example, in case of laptops, POS machines etc. that can be identified and
counted as individual units will be created as individual assets. In case of assets
purchased for all civil works of a building, such as Flooring, POP, fall ceiling,
plastering, painting, renovation of old building etc., different assets for
flooring, fall ceiling etc. will not be created, because these are not identified
as individual assets, hence, instead of that, only one asset called Building &
Permanent Improvement will be created in the system which will include cost
of all such civil works done. In case of assets with large quantity, e.g. Light
Fittings, instead of creating separate asset for different types of light fittings,
a single asset called light fitting will be created in the system, which will
include the entire qty.

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2 Process of Asset Creation
An asset is created in SAP by using the asset creation code AS01. The process of
asset creation involves the following steps-

START
Select Asset Class

Select Company Code

Define Number of Similar Assets

Asset Description
1& 2

Define Asset M ain No

. Text

Define Quantity

Define UOM

Select Capitalization Date

Select Cost Center

Select Site Code

Define License Plate Code

(In case of Vehicles
)

Define Personal No
./Employee Code(In case of Hard Furnishing
)

Define Evaluation Groups

1, 2, 3, 4 & 5

Select Vendor Code

Select Depreciation Key

Define Useful Life

Define Depreciation Start Date

Save & Creation of Asset No

.

FINISH

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2.1 Select Asset Class
Asset classes are the most important means of structuring fixed assets. It is a
system object used to group assets of similar kinds, primarily for the purpose of
account determination. Asset classes are used to structure the assets according
to the requirement of the company. For creating a new asset, first the correct
asset class has to be determined and specified in the initial screen of the
master data transaction. Depending upon the asset class, the depreciation key
triggers. The following asset classes are used in SAP-

Asset Class Description

1000 Land
1100 Buildings
1200 Plant & Machinery
1300 Office Equipments
1400 Computer, peripherals & Software
1500 Furniture & Fittings
1600 Electrical Installations
1700 Vehicles
1800 Air Conditioner

2.2 Company Code

The code of the particular company under which an asset is to be created
should be specified. The selection of company code field is mandatory. The
company codes for the respective companies are listed below,

Company Name Company Code

PRIL 0101
HSRIL 0102
Etam 0108
LeeCooper 0109

2.3 Number of similar assets

In case when more than one similar asset is to be created in the system, the
particular number of those assets should be mentioned. E.g. if the company
procures five Lenovo laptops together, the no. of similar assets to be created
should be specified as five in the initial screen of the master data transaction.

After entering all the data relating to asset creation, when it is saved, the
system will ask whether all the similar assets mentioned are exactly similar or
some minor differences are there. Accordingly it will give three options-

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Maintain, Create or Cancel. If changes are to be specified, one will have to go
for the Maintain option.

2.4 General Data

In the next screen of the master data transaction, the general information
about the asset should be provided. It involves the following points,

2.4.1 Asset Description

In asset description fields 1 & 2, the distinctive features of the asset has to be
described briefly so that it can be easily differentiated from other assets. We
should try to cover most of the things of the asset within a specified limit of 50
characters and for that if required we should try to use codification.

2.4.2 Asset Main No. Text

In this field, the P.O number of the asset has to be defined. If required network
no., WBS element etc. can also be specified in this field. The length of the text
field is 50 characters.

2.4.3 Quantity
This field is generally used in case of low value items with large quantities. For
more details please refer to paragraph 4 on Special Assets.

2.4.4 UOM
UOM stands for Unit of Measurement. It has to be entered in case of asset with
quantity is in Square foot, Square meter, Running meter. E.g. Flooring Tiles,
Ducting etc.

2.4.5 Capitalization Date

Capitalization date in case of new store will be the date of store opening and in
case of existing store, it will be the date the asset has been put to use.

2.5 Time Dependent Data

2.5.1 Cost Center
If the asset to be created belongs to a particular dept, then the cost of the
asset has to be assigned to its respective cost center. For example, if an asset
is to be created for Depot, its cost will be assigned to the cost center of Depot.
The depreciation and other valuation of the asset will go to its respective cost
center. For common assets, such as flooring, electrical installations etc. the
cost center 902400- for non-sale goods is used.

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2.5.2 Site
In this field, we have to specify the correct code of the site at which the asset
will be placed.

2.5.3 License Plate Code

The License Plate Code is mandatory only in case of vehicles, which will define
the registration no. of the vehicle. It serves as the main differentiating feature
in case of vehicles and prevents any confusion among similar kind of assets.

2.5.4 Personal Number

This field is mandatory in case of Hard-furnishing. Personal number defines the
code of the employee for whom the asset is procured. For creating an asset
under hard furnishing for a particular employee, the employee code should be
regularly updated in the system.

This can also be used where the company assets are required to be assigned to
the employees. E.g. Mobile phones, laptops, cars etc.

2.6 Allocations
In Allocation tab there are five Evaluation groups, which are user fields and are
defined as per the business needs. It has been done for the better classification
and identification of an asset.

2.6.1 Evaluation Group 1

This field is defined to classify the assets in different classes as per the Income
Tax Act. Since we have different financial year for companies Act and IT Act,
SAP standard functionality of getting the depreciation as per both the Acts is
not possible. Hence, we use this field to bifurcate the addition and/or deletion
of assets in a year according to the IT block. E.g. Refrigerator, generator etc.
normally comes under the class Plant & Machinery, but under IT Act, these
form separate classes. Following are the asset classes according to IT Act-

Evaluation Group 1 Description

0001 IT_BUILDING
0002 IT_FURNITURE & FIXTURES
0003 IT_ELECTRIC INSTALLATION
0004 IT_PLANT & MACHINERY
0005 IT_OFFICE EQUIPMENTS
0006 IT_AIR CONDITIONER
0007 IT_TOOLS & EQUIPMENT
0008 IT_REFRIGERATOR
0009 IT_GENERATOR

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 0010 IT_COMPUTER INSTALLATION
0011 IT_MOTOR CAR
0012 IT_COMMERCIAL VEHICLE
0013 IT_PLANT & MACHINERY (TUFS)

2.6.2 Evaluation Group 2

This field is used in case of a concept that is situated as a part of a parent
store like BB or Pantaloons. We have to mention the format of the store or any
section within the store where the asset is placed. For example, if within a BB,
there are concepts such as FB, Wellness and Depot situated at particular areas
within the store, then for creating any asset particular to any of the concepts,
the evaluation grp 2 will be used. This field will not be required in case of a
stand-alone concept. E.g. If there is a stand alone Depot, then this evaluation
grp is not applicable. Following concepts are there in the system-

Evaluation Group 2 Description

0001 Food Bazaar (within Big Bazaar)
0002 Blue Sky
0003 Gold Bazaar
0004 Depot
0005 Wellness
0006 Saloon (Star & Sitara)
0007 Live Kitchen
0008 Food Court
0009 Cafe Bollywood
0010 Sports Bar

2.6.3 Evaluation Group 3

Here we have to mention the name of the dept that has procured the asset,
viz. Project, IT, VM, SCM & Admin. Following are the codes for different depts.-
Evaluation Group 3 Description
0001 Back Office
0002 Storage
0003 VM
0004 SCM
0005 IT
0006 Project

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2.6.4 Evaluation Group 4
The asset to be created might be financed by a Bank, Financial Institution,
Leasing Company or by the company itself. In this field, we have to define the
particulars regarding who has financed the asset. This will keep on changing
depending on the T/L taken from different banks. E.g. Bank term loan with T/L
no.

2.6.5 Evaluation Group 5

In this field, we have to further classify the assets that are within a particular
class and accordingly we have to specify the code. For example, if the asset
belongs to the class of Computers, then we have to specify whether the asset is
a Printer, Scanner, Laptop, Software or UPS.

In case of Hard-furnishing, we use evaluation group-53, irrespective of whether

the asset procured is furniture, computer or any other asset. Following are the
various sub-classes that are specified under evaluation grp 5-

Ev. Grp 5 Description Ev. Grp 5 Description

0001 AC_Air conditioners 0028 F&F_Bins & Baskets
0002 AC_Ducting 0029 F&F_Other Furniture
0003 Buld_Factory 0030 F&F_Restaurant Furniture
0004 Buld_Office 0031 F&F_Signages & Displays
0005 Buld_Store 0032 F&F_Site Carpentry
0006 Buld_Warehouse 0033 F&F_Trolleys
0007 Comp_Computers 0034 F&F_Warehousing Racks
0008 Comp_Laptops 0035 Land_Land
0009 Comp_Networking_Active 0036 Land_Leasehold Land
0010 Comp_Networking_Passive 0037 OffEqp_Cash Counting
Machine
0011 Comp_POS Machine 0038 OffEqp_EPABX &
Telephone Instruments
0012 Comp_Printers 0039 OffEqp_Fire Fighting
System & Extinguisher
0013 Comp_Peripherals 0040 OffEqp_Others
0014 Comp_Scanners 0041 OffEqp_PA & Music
Systems
0015 Comp_Servers 0042 OffEqp_Safe, Lockers &
Cabinets
0016 Comp_Software 0043 OffEqp_Sealing Machines
0017 Comp_UPS &Invertors 0044 OffEqp_Weighing Scale
0018 Elec_Light Fittings 0045 P&M_Escalators
0019 Elec_Light 0046 P&M_Factory Machines
0020 Elec_Others 0047 P&M_Freezers & Chillers

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0021 Elec_Panels & Boards 0048 P&M_Other Machines
0022 Elec_Security Systems 0049 P&M_Warehouse Machines
0023 Elec_Wiring 0050 Veh_Delivery Van
0024 F&F_Checkout Counters 0051 Veh_Motor Cars
0025 F&F_Modular Furniture 0052 Veh_Motor Cycles
0026 F&F_Office Furniture 0053 Hard Furnishing
0027 F&F_Other Counters

2.7 Origin
Here, we have to give details about the origin of the asset such as the vendor
code, from whom the asset has been procured etc.

2.8 Depreciation Areas

This field maintains the depreciation and valuation information for each
depreciation areas. It requires the details regarding the following points,

2.8.1 Depreciation Key

Each asset follows a particular rate of depreciation throughout its useful life.
Depreciation key defines the depreciation rate that is applicable to a particular
asset. Following depreciation rates stand for their respective depreciation
keys-

Depreciation Key Rate of Depreciation (%)

P01 1.63
P02 3.34
P03 4.75
P04 6.33
P05 7.07
P06 9.5
P07 11.31
P08 16.21
P09 31.67
P010 100
P011 1.47

After specifying the asset class of an asset, the system takes the depreciation
key applicable to that asset by default, which can be changed manually if
required because, in some cases, different assets belonging to a single asset
class may have different rates of depreciation applicable to them. Following
are the default depreciation rates in the system-

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Asset Class Dep Key Dep Rate (%)
Land P11 1.47
Building P01 1.63
Plant & Machinery P02 3.34
Office Equipments P03 4.75
Computers P08 16.21
Furniture & Fixtures P04 6.33
Electrical Installation P03 4.75
Vehicles P06 9.5
AC P03 4.75

2.8.2 Useful Life

Useful life of an asset is the number of years the asset can be used without any
disturbance or repair. In this field, we have to specify the useful life of the
asset to be created in years or periods. In case of hard furnishing, the
maximum useful life of an asset is 3 years.

2.8.3 Depreciation Start Date

Here, we have to specify the starting date from when the depreciation will be
calculated. Depreciation will be calculated from this date to the end of useful
life of the asset.

2.9 Creation of Asset Number

After entering all the above-mentioned details relating to a particular asset,
the data are saved and the main asset number is created automatically in the
system.

3 Sub-asset Creation
Sub-asset is created in case of Transfer of asset and addition of asset. In one
special case of opening asset master upload, this functionality is used to
bifurcate between the main asset value and its pre operative expenses. Sub-
asset is created under a main asset and the main asset number has to be
specified. After specifying the main asset no., all the details of the main asset
such as the general data, cost center, site code, evaluation groups etc. will be
taken from the system by default.

In case of transfer of asset, the site code and cost center will be that of the
new site to which the asset will be transferred. For example, if an asset is
transferred from the H.O to one of the stores, the site code and cost center of
the store will be specified in the system. In rest of the cases, the details will
remain almost the same as that of the main asset.

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In case of addition of asset, for example, if the hard disk of a laptop is
purchased separately, it will be added as a sub-asset to the main asset, i.e. the
laptop.

In all the cases of sub-asset creation in SAP, sub-asset creation code ‘as11’ is
used.

4 Special Assets
4.1 Small value Immovable Assets with Large Qty
Some low value immovable items are there which are purchased in large
quantities. E.g. Smoke Detectors, Video Camera, Light Fixtures, Wall Mounting
Speakers etc. Each of these items is purchased in large numbers but individual
assets are not created for all of its qty. Instead, one single asset called Smoke
Detector or Light Fixtures are created which includes the entire qty. For
example, if 130 Mirror Optics Luminaires are purchased for a store, then
instead of creating 130 assets separately, we will create one asset called Mirror
Optics Luminaire and under that the quantity will be specified as 130.

4.2 Small value Movable Assets with Large Qty

Some low value movable items are also there which are purchased in large
quantities. E.g. Crates, Chairs etc. If 150 plastic crates are purchased for a
store, only one asset called plastic crate will be created in the system and
under that the quantity will be specified as 150, instead of creating 150 assets
as plastic crates separately. In such cases, the same asset number barcode will
be placed on all the 150 plastic crates and stock will be taken with reference
to the assets having same barcode number. In case of transfer of assets to
another store, it will be partial transfer with qty in which a part of the total
qty of the asset will be transferred. Accordingly, the transferred qty will be
deducted from the quantity of that asset and the new asset generated through
sub-numbering will have the transferred qty. For example, if we create one
single asset of trolleys with qty 200 and now we want to transfer 50 trolleys to
a nearby FB, then this will be done through partial transfer. For partial transfer
we will be using Asset Sub-numbering in which we have to define the value of
transfer and in the qty field we have to specify the qty transferred. The
accumulated depreciation will get divided automatically.

4.3 Building & Permanent Improvement

In case of assets purchased for all civil works of a building, such as Flooring,
POP, fall ceiling, plastering, painting, renovation of old building etc., only one
asset called Building & Permanent Improvement will be created in the system
which will include cost of all such civil works done.

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4.4 Electrical WO
In case of electrical WO, we have the following common heads:

i) Wiring
ii) Earthing
iii) Conduiting
iv) Junction Box
v) TV, Telephone & Data Network
vi) Fire Alarm & Safety Board
vii) Public Address System

In such cases, assets will be created for only these heads and all expenses
incurred under these heads will be clubbed to the respective asset created for
the above classes. For example, in case of earthing, activities such as
purchasing earthing conductors, providing, installing, testing and
commissioning of copper earthing stations using copper plates, including
excavation, back filling, construction of inspection chamber etc. and the cost
incurred for performing these activities, all will come under one asset called
Earthing.

In case of panels, since they can be identified and counted separately, each
panel will be created as individual assets.

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