Handling of Simple Investment Measures 

Purpose

The Handling of Simple Investment Measures scenario enables you to manage the planning, investment, and financing processes for investment measures within your enterprise. The term investment, in this context, is not limited only to investments you capitalize for bookkeeping or tax purposes. An investment in this context can be any measure that initially causes costs, and that may only generate revenue or provide other benefits after a certain time period has elapsed (for example, plant maintenance projects or research and development).

In this scenario, orders are used in the system to represent investment measures. Therefore, in contrast to the Handling Complex Investment Measures scenario, you do not use planning functions from the Project System in this scenario.

The scenario covers the entire capital investment process, from the planning and decision-making phase, to an approved measure, to implementation, and finally to settlement on completion or closing of the order.

Prerequisites

You use the basic functions of the CO component.

Process Flow

  1. You create appropriation requests for the investment measures you wish to implement, and enter planned values for these appropriation requests. Appropriation requests can have several variants with different plan values.
  2. Once an appropriation request is approved, you create an order for its implementation.
  3. You enter plan and budget values for the order. In doing so, you adopt the overall plan values from the appropriation request.
  4. You release the order.
  5. During the implementation, all related costs are collected on the order. An order can be an investment measure with an asset under construction assigned to it.
  6. You analyze the plan, budget, and actual values for the order. Actual values are subject to availability control.
  7. You allocate overhead costs periodically to the order and settle it periodically to receivers (for example, cost centers, assets under construction, and so on).
  8. If an order is an investment measures with an asset under construction assigned to it, you post a full settlement when the asset is completed.

Result

You manage an investment measure in the form of an order.