Investment Management

Welcome
Overview of
Investment Management
2
1
Welcome
Concepts
Components and Functions
Master Data and Process Steps
Configuration in brief
Reports
2
1
Concepts
Investment Management Concept
SAP Investment Management - concepts
SAP Investment management is known as Capital

Investment planning and monitoring tool .
Functions includePlanning of Investments
Investment planning
Cost Planning
Monitoring of Investments at plant, company code or
organization level
Financing process
2
How SAP Investment Management is different
Investment management is to plan / manage investment

proposals
Treasury deals with managing the Assets/ investments/
products which are already in possession
Projects study and funds planning of green field/
enhancement projects are part of investment Management
Broad Categories of Investments
New Investment Projects

Renovation and modernization projects
Capital Additions
Direct Assets purchase
Project for Establishing new market
Investment in Research and developments
2
Flow of Values in Investment Management

Cap. invest.
planning
Implementation
of cap. invstmt.
Completion
Settlement
Fixed
assets
Use
Maintenance
Cost centers
Capital
investment
program
Cap. investmt.
orders
Plan &
Budget
Settlement
Settlement
Fixed
assets
CWIP
Cap. investmt.
projects
Planning, Budgeting, Invoices, Internal activity, Settlement
Equipmment
Components and functions
Components and Functions
Components of Investments
Investment Program
Investment Programs-Investment program is a master

data of 8 Characteristics ( alpha numeric ) consists of a
program definition, program positions and hierarchical
program structure
Investment programs are helpful to create investment
plans and budget overall/annual and wish to monitor the
budget
Components of Investment
Appropriation Requests
It represents complete plans those are to be
implemented in an enterprise.
Appropriation request is an idea to carry out a measure
such as an investment, research and development.
They are to be assessed and approved by one or more
positions within an enterprise.
Appropriation requests will generate a project and
Internal Order.
Appropriation requests are assigned to investment
program positions
Components of Investment
Investment Measure
It consists of investment profile , AUC and assets

classes .
Investment profile controls following activities
Creation of an asset under construction
Creation of master data for depreciation simulation
creation.
We assign investment profile to a capital investment
measure
SAP Investment Management Business Benefits
Best toll to track complex projects

More number of investment activities and complexity involved
demand tracking of each capital investments
Diversified investment activities demands a better control
homogeneous environment
It is key to organization's strategic planning and budgeting
exercise
IM has been predominantly used in capital and maintenance
intensive industries to support the Asset Lifecycle Management
(ALM) process
View of approved and unapproved budget and funds availability
Orders Vs Projects
SAP Investment Program Structure
The Overall Process of Travel

Management with Travel
Planning
Program- Status, processes, approval

CREATED
create measure
request for approval
postpone
TO BE APPROVED
approve
REJECTED
approval workflow
APPROVED
release
RELEASED
MEASURE CREATED
close measure
close measure
CLOSED
delete measure
MARKED FOR DELETION
A typical IM Approval Process flow Diagram
Process Steps IM
Investment Management Process Steps
17
IM Structure- Investment Program
Investment
Program
Position
Position 11
Position
Position 1.1
1.1
Position
Position 1.2
1.2
IM Structure- Appropriation Requests plan and budget
21000
Investment
Program
Appropriation
requests
Position
Position 11
15000
6000
Position
Position 1.2
1.2
Position
Position 1.1
1.1
Request
Request 33
Req.
Req. 11
Req.
Req. 22
1000
2000
Request
Request 66
3000
Req.
Req. 44
Req.
Req. 55
Req.
Req. 77
3000
4000
5000
Req.
Req. 88
6000
11000
Req.
Req. 99
Master Data and process steps
Investment Program- planning versions
The versions used here in Investment Management (IM) are the general CO plan versions
20
IM Structure- Projects / orders

Position
Position 11
Investment
Program
Position
Position 1.1
1.1
Request
Request 33
Appropriation
requests
Req.
Req. 11
Req.
Req. 22
Request
Request 66
Req.
Req. 44
Req.
Req. 55
Req.
Req. 77
Req.
Req. 88
Req.
Req. 99
Sum
Sum plan
plan values
values
rejected
Sum
Sum plan
plan values
values
Projects/
Orders
Position
Position 1.2
1.2
Project
Project 10
10
Project
Project 101
101 Project
Project 102
102
Order
Order 11
Order
Order 11
Order
Order 11
PM-Order
PM-Order
IM Structure- Settlement to CC
Position
Position 11
Investment
Program
Position
Position 1.1
1.1
Position
Position 1.2
1.2
Request
Request 33
Appropriation
requests
Req.
Req. 11
Request
Request 66
Req.
Req. 22
Req.
Req. 44
Req.
Req. 55
Req.
Req. 77
Req.
Req. 88
Req.
Req. 99
rejected
Projects/
Orders
Project
Project 10
10
Project
Project 10
10
Project
Project 10
10
Order
Order 11
Settlement
Cost Center
CWIP
CWIP
Order
Order 11
Order
Order 11
PM-Order
PM-Order
Settlement
Co.Center
Co.Center
IM Structure- Settlement to CWIP/ Main Assets
Investment Programs-Overall and Annual Values
overall
values
Program position 1998
overall
annual
values
1999
2000
2001
...
...
zz
...
zz
zz
...
zz
direct distribution
Investment measure
overall
1999
2000
2001

Assigning a Measure to Several Program Positions
Investment
Program
Reporting
Position 1
Position
1.1
budget
1500
70%
2000
actual
1000
budget
actual
Position 1
4000
1800
Position 1.1
Measure 1
1500
1400
700
700
Position 1.2
2000
1100
Measure 1
600
300
Measure 2
1000
800
4000
budget
Position
1.2
30%
Measure 1
budget
budget
2000
100%
Measure 2
budget
1000
actual
800

Investment Measure
Investment measures are not an object type in their own right in the R/3 System. Instead they are
represented in the system using special internal orders or WBS elements (of a project) and an
accompanying asset under construction
26

Investment Measure
When you settle investment measures, you generally need to settle the costs collected on the
investment measure to different receivers. The system carries this out automatically for the most part,
using settlement rules you have entered. There are two ways of settling investment measures:
Periodic settlement at the close of the period
Full settlement or partial capitalization of the investment measure at its completion
27

Settlement summary as well as line item wise
In the investment profile, you can specify whether the periodic settlement and the full settlement
should be line item settlement or summary settlement for the investment measures that use this
investment profile.
"Summary" settlement means that you can only enter blanket distribution rules either for all debits on
the investmetn measure, or for certain cost elements or cost element groups
28

1. Investment Program Definition
2. Investment Program Position
3. Investment Program Structure
4. Appropriation Request
5. Roll up of Planning Values
6. Budgeting
7. Creation of Investment Measure (Internal Order, WBS etc
8. Settlement to AUC
9. Settlement to Final Asset
10. Actual Posting flow
11. Settlement to Cost Center
SAP Investment Management Standard solutions

SI No
Process
Investment Program Definition Create
IM01
Investment Program Definition Change
IM02
Investment Program Definition Display
IM03
Investment Program Position-Create Top

Position
IM11
Investment Program Position-Change
IM12
Investment Program Position-Display
IM13
Investment Program Structure-Change
IM22
Investment Program Structure-Display
IM23
Program Planning-Edit
IM35
10
Program Planning-Display
IM36
11
Program Planning-Copy Plan Version
IM36
T codes
SAP Investment Management Standard solutions

SI No
Process
12
Budgeting- edit Original
IM32
13
Budgeting- Display Original
IM33
14
Budgeting- edit Supplement
IM30
15
Budgeting- Display supplement
IM31
16
Budgeting- edit Return
IM38
17
Budgeting- edit budget distribution
IM52
18
Open new Approval year
IM27
19
Close new approval year
IM27_close
20
Roll up planning values to IP
IM34
T codes
Investment Program definition
Investment Program Type - Create
Investment Profile - Create
Investment Program definition - Create
Investment Program definition - Create
Investment Program definition Change
If desired, you can have several "buckets of budget" = budget categories for
different purposes on the program, e.g. seperate budgets for costs to be capitalized
(category capital) and additional costs not to be capitalized (category expense).
In this case you can maintain the overall/Annual budget and plan seperatly for
each category within the capital investment program.
However, you still have only one usual budget/plan on the measure. To determine
the portions of its budget- or plan values belonging to the different budget
categories of the program, you can indicate percentage rates when you allocate the
measure to a program position
Inv.Program position - Create, General Data
Inv. Program position - Create, Org. Data
Inv. Program structure - Create, user fields
Inv. Program structure - Create, user fields
Inv. Program structure Change
Inv. Program structure Change
Appropriation structure Create
Appropriation requests Create , General Data
Appropriation requests Create , Control Data
Appropriation requests Create , Control Data
Appropriation requests Create , organisation data
Appropriation requests Change
Appropriation requests User Fields
Appropriation requests change , variants general data
Appropriation requests change , variants plan values
Appropriation requests change , variants plan values
Program Planning

Change program planning before roll up

Appropriation requests change program planning before roll up

Roll up planning values

Roll up planning values status

Roll up planning values status

Copy Plan versions
IT_PARK
IT_PARK
2008

Budgeting Budget Profile

Budgeting Program top down

Budgeting Program top down
Change in value

Budgeting Distribution Program top down

Budgeting Distribution Program top down

Budgeting distribution- Program top down . Refer slide 52

Budgeting distribution- Program top down

Change appropriation requests- Investment measure- Internal order

Create internal order type and Internal orders

Create investment measure -internal order
cc

Actual Transaction posting against those orders . Refer page 66

Actual Transaction posting flow

Settlement of order to AUC

Settlement of order to CWIP

Settlement of order to CWIP

Settlement Rules for CWIP to Final Asset

Change internal order Master Data

Settlement to Final Assets

Settlement to Final Assets
CWIP cost object got

Credited
and
Final Asset got Debited

Settlement to Final Assets - Status
Configuration Aspects
Investment Management Configuration
82
Investment Program- upload- down load
83
Investment Program- Type
84
Allowed Measures assignable operatives
85
Investment Profile
86
Investment Profile coding mask
87
Investment Program- planning and budgeting
88
Investment Program- plan profile and budget profile
For managing planning and budgeting of an investment program, you can define plan profiles
and budgt profiles for control purpose. Assign program type to planning profile.
Assign Budget profile to program type.
Investment Program- planning and budgeting
Similar to the WBS elements in a work breakdown structure, you can plan the investment
program positions from the bottom up and budget them from the top down.
Budget values differ from plan values in regard to how binding they are. During the planning
phase, you try to estimate costs for an investment program position from the bottom up as
exactly as possible, whereas during the approval phase you assign funds in the form of a
budget from the top down.
Plan values, which you have collected on measures or appropriation requests, can be rolled
up automatically on the investment program.
You can distribute budgets from investment program end-node positions to the measures
that belong to them.
During the fiscal year change for the investment program, you can carry forward measures,
which are released but not yet completed, along with their plan and budget values, to the
next approval year. This means that you do not have to use up the budget for approved
measures in their approval year. You can apply the funds also in following years.
90
Investment Program- planning versions
The versions used here in Investment Management (IM) are the general CO plan versions
91
Planning Profile
92
Budget Profile
93
Planning and Budgeting number range
94
Approval Versions
95
Investment Program- assignment of Maintenance orders
You can assign maintenance orders to an investment program, in the same way that you assign investment
measures (WBS elements or internal orders) to it. This means that you can plan and budget maintenance
activities using the investment program
96
Appropriation request ( AR ) process
An appropriation request is an idea or wish for carrying out a measure (such as, an investment,
or research and development), which has to be individually assessed and approved by one or more
positions. An investment measure can be created automatically from an appropriation request
97
Appropriation request types and screen layouts
WE can define Appropriation request types per controlling area
98
Tab layouts for appropriation request
99
Partner Management
100
Number assignment of AR
you have to assign each appropriation request type to a number range group of the
Appropriation request number range object
101
Approval of Appropriation Requests
Activating the automatic approval process using work flow for appropriation requests.
Then we define approval levels for AR types.
102
Appropriation Requests Master Data
103
Appropriation Requests Planning Data
104
Appropriation Requests Type
105
Appropriation Requests Type
106
Revenue Planning Profile
107
Workflow for incomplete Assets
Incomplete assets are assets that have been entered in the system, but in which important
master data was not entered
108
Tolerance Limit for Availability control
You can steadily monitor the approved budget of an investment measure using active
availability control. Using availability control, you can prevent budget overruns before they
occur
109
Statistical Budget Monitoring
Capital investments that do not have an 'asset under construction' phase are usually
capitalized directly in Asset Accounting
110
Settlement structure
During settlement, the system settles costs, which were incurred under a primary or secondary
cost element on a sender, to one or more receivers using a settlement cost element. When you
use settlement by cost element, you settle under the source cost element
111
Reports
Investment Management Information System
112
Reports
Reports on planed values
113
Reports
Drill down Reports
114
Reports
Reports on planed values
115
Reports
Drill down reports on annual planed values in Program
116
Reports
Drill down reports Budget availability
117
Reports
Drill down reports Budget Vs Actual
118
Thank You
We are open for Questions !

Investment Management

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Welcome

Investment Management Concept

SAP Investment Management - concepts

SAP Investment management is known as Capital

How SAP Investment Management is different

Investment management is to plan / manage investment

Broad Categories of Investments

New Investment Projects

Flow of Values in Investment Management

Components and functions

Investment Programs-Investment program is a master

It consists of investment profile , AUC and assets

SAP Investment Management Business Benefits

Best toll to track complex projects

SAP Investment Program Structure

The Overall Process of Travel

Program- Status, processes, approval

A typical IM Approval Process flow Diagram

Investment Management Process Steps

Master Data and Process Steps

IM Structure- Investment Program

Master Data and Process Steps

IM Structure- Appropriation Requests plan and budget

Master Data and process steps

Investment Program- planning versions

Master Data and Process Steps

IM Structure- Projects / orders

Master Data and Process Steps

Master Data and Process Steps

IM Structure- Settlement to CWIP/ Main Assets

Investment Programs-Overall and Annual Values

Master Data and Process Steps

Master Data and Process Steps

Master Data and Process Steps

Master Data and Process Steps

Master Data and Process Steps

SAP Investment Management Standard solutions

Investment Program Definition Create

Investment Program Definition Change

Investment Program Definition Display

Investment Program Position-Create Top

Investment Program Position-Change

Investment Program Position-Display

Investment Program Structure-Change

Investment Program Structure-Display

Program Planning-Copy Plan Version

SAP Investment Management Standard solutions

Budgeting- edit Original

Budgeting- Display Original

Budgeting- edit Supplement

Budgeting- Display supplement

Budgeting- edit Return

Budgeting- edit budget distribution

Open new Approval year

Close new approval year

Roll up planning values to IP

Master Data and Process Steps

Investment Program definition

Master Data and Process Steps

Investment Program Type - Create

Master Data and Process Steps

Investment Profile - Create

Master Data and Process Steps

Investment Program definition - Create