Process documentationReorganization Process for Fixed Assets

 

With this process, you can reorganize fixed assets on the first level of the derivation hierarchy as well as fixed assets on the second level.

Prerequisites

You have ensured that the prerequisites described in the "Prerequisites" section in Reorganization of Fixed Assets have been met.

Process

The reorganization manager and the object owners (such as the cost center owner or the asset accountant) proceed as follows:

  1. The reorganization manager creates a reorganization plan to specify the corner stones of the reorganization:

    • The basic data with the reorganization date

    • The general constraints:

      • Controlling area

      • Assignment table with the old and new profit centers

      • Specific company codes, if applicable

    • Specific constraints for fixed assets (such as asset class), if applicable

  2. The object owner (cost center owner) assigns a new profit center to the affected cost centers for the reorganization date.

    If the specific prerequisites for cost centers are met, the system automatically includes the cost centers in the reorganization plan. (For more information on the prerequisites for cost centers, see the section "Integration" in Reorganization of Fixed Assets).

  3. To ensure that the fixed assets are reorganized consistently, run the program Consistency Check for Fixed Assets.

    For more information, see the "Prerequisites" section under Reorganization of Fixed Assets.

  4. If the existing cost center does not need to be included in the reorganization but the fixed assets need to change their cost center, the cost center owner reassigns a different cost center directly in the asset master record – without using the reorganization.

  5. Before the manual tasks, the period-end closing activities need to have been performed in Asset Accounting and in Controlling.

  6. From the reorganization plan, the reorganization manager starts generation of the object lists for the following object types:

    • Internal orders

    • WBS elements

    • Fixed assets (only if they are on the first level of the derivation hierarchy)

    When generating the object list, the system looks for the internal orders, WBS elements, and fixed assets that are affected by the profit center reorganization and to which a new profit center needs to be assigned.

    The reorganization manager changes the status for the affected objects and forwards them to the object owners (the status of the objects is Allocated to Object Owner).

    Recommendation Recommendation

    The object owners need to generate the object lists multiple times before the reassignment and the transfer postings so that the system can also consider in the reorganization any new objects to be included.

    End of the recommendation.

  7. The object owners process the object lists.

  8. When the system cannot derive a unique profit center for objects, the object owner manually changes the master records of the relevant fixed assets:

    • In general, he or she manually assigns a different profit center to the real estate key because the object type Real Estate Key is not involved in the reorganization.

    • Internal order:

      • In the object list for internal orders, the object owner assigns the relevant new profit center to the internal orders, or

      • If the existing internal order does not need to be reorganized, the object owner directly assigns a different internal order in the asset master record.

    • WBS element:

      • In the object list for WBS elements, the object owner assigns the relevant new profit center to the WBS elements, or

      • If the existing WBS element does not need to be reorganized, the object owner directly assigns a different WBS element in the asset master record.

  9. Ensure that the program Consistency Check for Fixed Assets runs without finding consistency errors.

  10. Once the previous period has been closed, the reorganization manager performs reassignment from within the reorganization plan.

    This changes the profit centers stored in the master data of the objects determined previously. The system determines any dependent objects for successfully reassigned objects that have imparted the profit center and reassigns such dependent objects in the same way. This ensures in particular that floating processes (such as the clearing of any open items) are diverted to the new profit centers.

    In the reassignment of fixed assets, the system automatically transfers their balances (acquisition and production costs and cumulated depreciation) as well.

The following graphic shows some of the steps in the reorganization process for fixed assets: