Navy ERP Finance – Asset Management (AM) Operations & Data Conversion Overview Anthony Hatala / Ken Honer 25 June

1. Navy ERP Finance – Asset Management (AM) Operations & Data Conversion Overview Anthony Hatala / Ken Honer 25 June 2008

2. Navy ERPFunctional Overview Finance - Asset Management (AM) Anthony Hatala / Ken Honer 25 June 2008

3. Asset Management (AM) Presentation AM Data Conversion Navy ERP Increment 1.0 Scope • Currently Included: • All Property, Plant and Equipment (PP&E) • Fixed asset not held for resale or assets consumed in the process • Capital assets costing $100,000 or more with a useful life of 2 years or more • Minor property assets costing more than $5,000 and less than $100,000 • Pilferable assets costing less than $5,000 (defined by local command) • Minor Military Equipment • Includes the following categories • Capital Purchase Program (CPP) • Sponsor Owned Equipment (SOE) • Contributed Assets (CA) • Currently Not Included: • Military Equipment in CAMS (Capital Asset Management System) • Heritage Assets • Stewardship Assets • Land and Buildings accounted for by NAVFAC

4. Asset Management (AM) Presentation Configuration Objects in Navy ERP • 39 Asset Classes (8 defined in FMR) • Land • Buildings, Improvements, & Renovations • Other Structures and Facilities • Other General PP&E • Equipment • Internal Use Software • Construction in Progress or Assets Under Construction (AuC) • Leased Assets (not in scope) • Sub divided into • Capital Equipment (either CPP or CP) • Sponsor Owned Equipment • Contributed Assets • Minor Property • Sub divided into • Assets not in Use • Awaiting Disposal • Each asset class maps to a unique general ledger account

5. Asset Management (AM) Presentation Configuration Objects in Navy ERP (cont’d) • Chart of Depreciation = Department of Navy (DON1) • Two Depreciation Areas • Depreciation Area 01 • Stores property gross acquisition & production cost (APC), accumulated depreciation and Planned and Actual depreciation expense • Posts to the general ledger • Depreciation Area 20 • Stores statistical property gross acquisition & production cost (APC) only • Does not post to the general ledger

6. Asset Management (AM) Presentation AM Scenarios • Asset Acquisitions • Capital Project Acquisitions (CPP or CP) • PR/PO Acquisitions • Manual Acquisitions • Transfers & Retirements • Transfer In/Transfer Out to Other Activities (Without Reimbursement) • Transfer within an Activity • Transfer to Excess and Awaiting Disposal (DRMO) • Final Retirement • Maintain Asset • Bar Code Number Assignment & Label Printing • Physical Inventory Observation • Period and Year End Close and Reports

7. Asset Management (AM) Presentation Capital Asset Acquisition • Project Structure (PS) is used to acquire capital assets in Navy ERP • Work Breakdown Structure (WBS) • Minor Construction • Internal Use Software • Automated Data Processing (ADP) Equipment • Non-ADP Equipment • Networks and Network Activities (NWA) • Funded with CPP Authority or General Fund Appropriation (OPN) • Cost are collected in the project and reported in the Construction in Progress accounts until the asset is placed in service • Costs are capitalized to the Final Fixed Asset when it’s ready for service

8. Asset Management (AM) Presentation Capital Project Accounting • Capital project is created • A separate WBS element for each type of spending • Minor Property – (unique investment profile points to a unique asset class) • Internal Use Software • ADP Equipment • Non ADP Equipment • Funding is applied and the WBS element is released • Asset under Construction (AuC) asset master record in unique asset class • Purchase requisitions (PR) created reference • Network activity contained in the WBS • Account Assignment Category ‘N’ • PR approved and converted to purchase orders (PO) • Goods receipt (GR) use to record receipts of property items • Internal labor charged using Work Force Management (WFM) Time Sheet • Costs are collected in the controlling module and settled each month to it unique AuC asset • Final fixed asset is created and settled to when the asset is ready for service

9. Asset Management (AM) Presentation Purchase Requisition – Purchase Order (PR-PO) Acquisition • Used to created statistical asset master records for MP and SOE • An enhancement is used to create “statistical” or “memo” asset records for accountability tracking purposes • Unique PR-PO Account Assignment Categories are used: • 1=asset class 51, Minor Property – SOE at a WCF • 2=asset class 32, Capital Property – SOE at a WCF • 3=asset class 50, Minor Property – Owned by the command • 4=asset class 30, Minor items – Part of another capitalization • Goods Receipt posting generate actual postings to the project network or cost center • A second enhancement creates a memo or statistical value posting to its corresponding asset master record

10. Asset Management (AM) Presentation Navy ERP PR-PO Account Assignment Categories for Assets

11. Asset Management (AM) Presentation Manual Asset Acquisition in Navy ERP • Used to record the acquisition of an asset in the following; • From another government activity or entity • Acquired from in house production • Identified during the physical inventory observation • Manually create asset master record • Manually post value using miscellaneous transaction

12. Asset Management (AM) Presentation Master Record – Initial screen (AS01*) Input data *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

13. Asset Management (AM) Presentation Master Record – General (AS01*) Required data for custody tracking *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

14. Asset Management (AM) Presentation Master Record – Time dependent (AS01*) Personnel number, plant, location and room are required for custody tracking. All other data is required for accounting *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

15. Asset Management (AM) Presentation Master Record – Allocations (AS01*) Evaluation group 1 is used for custody tracking. The remaining groups are available for future use. *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

16. Asset Management (AM) Presentation Master Record – Allocations (AS01*) *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

17. Asset Management (AM) Presentation Master Record – Origin (AS01*) Provides history detail of the asset (i.e., vendor, date purchased, etc.) *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

18. Asset Management (AM) Presentation Master Record – Leasing (AS01*) Captures leasing information. If capital, the asset is on the books and depreciating. If it’s an operating lease, the asset is not on the books and is here for tracking purposes only. *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

19. Asset Management (AM) Presentation Master Record – Custody (AS01*) Custom data fields for custody tracking *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

20. Asset Management (AM) Presentation Master Record – Depreciation Areas (AS01*) Accounting data for calculating depreciation of an asset *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

21. Asset Management (AM) Presentation Master Record – Initial screen (AS01*) After the asset is saved, the system stores the Asset Master data using a system-generated number *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

22. Asset Management (AM) Presentation Miscellaneous Transactions – Initial Screen (ABSO*) *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

23. Asset Management (AM) Presentation Create Asset Transaction – External asset acquisition (ABSO*) Enter Amount to be posted and the asset value date *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

24. Asset Management (AM) Presentation Miscellaneous Transactions – Initial Screen (ABSO*) Transaction is saved, and all the data is recorded in the systems generated document number *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

25. Asset Management (AM) Presentation Asset Explorer – Planned values (AW01N*) Planned values tab includes accumulated cost postings and the documents used to post values *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

26. Asset Management (AM) Presentation Asset Explorer – Posted values (AWO1N*) Posted values tab includes planned and posted depreciation values *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

27. Asset Management (AM) Presentation Asset Explorer – Comparisons (AWO1N*) Comparisons tab shows total projected depreciation and net book value over the remaining useful life of the asset *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

28. Asset Management (AM) Presentation Asset Explorer – Parameters (AWO1N*) Parameters tab displays specifications regarding depreciation *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

29. Asset Management (AM) Presentation Asset Transfers & Retirements in Navy ERP • Transfer to another government activity/company code • Two step process: • Retire asset in sending activity • Reacquire the asset in the receiving activity • Must reflect the transfer in/out without reimbursement • Transfer within the same activity/company code • Custody transfers between • Custodians, Cost Centers, Plants, & locations • Use Workflow to notify custodians and organization property accountants • Changes directly to asset master records • Updates time dependent tab on the asset master record • Use to transfer the asset from in-service, excess, to awaiting disposal • Mass Change functionality for reorganizations, BRAC, and command changes • Retire the asset from service • Asset is no longer useable, either through loss, damage, worn-out etc.

30. Asset Management (AM) Presentation Custody/Cost Transfer Change Request (ZS02*) *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

31. Asset Management (AM) Presentation Custody/Cost Transfer – Selection Criteria Screen (ZS02*) Items that can be changed are: Custodian Cost Center Plant Location Room *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

32. Asset Management (AM) Presentation Maintain Assets in Navy ERP • Bar Code number assignment and label printing • Custom transaction to assign bar code number to an asset • Custom transaction to print/reprint bar code labels • Prints the label in accordance with the FMO regulation • Reprints existing bar code label numbers that may not comply with regulation • Deactivate retired numbers to ensure they are not reused for 3 years • Physical inventory observation • Triennial physical inventory • Custom transaction to download selected items for observation • Custom transaction to upload results back into the system • No bar code reading capability (must connect to readers locally)

33. Asset Management (AM) Presentation Maintain Assets in Navy ERP (Cont’d) • Period End and Year End Close and reports • Period end close: monthly depreciation run • Year end close: Open the next year, close earlier year • Reports • 26 standard reports (various asset balance reports) • 4 custom reports • Triennial Inventory Report • CPP Aging Report • Un-posted/Un-bar Coded Report • Relationship Query Report • Business Warehouse Reports • No unique reports have been defined (end users will define)

34. Acquire to Dispose Reports Asset Balance Report Purpose: Used to provide a list of total asset costs, accumulated depreciation, net book value for selected asset classes based on dynamic selection criteria stored in the Asset Master Record. Examples of selection criteria include, but are not limited to: • Business area • Plant • Location • Custodian

35. Asset Management (AM) Presentation Asset Balance Report – Selection Screen (S_ALR_87011964*) Report by Asset Class *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

36. Asset Management (AM) Presentation Asset Balance Report (S_ALR_87011964 *) Output Report *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

37. Asset Management (AM) Presentation Asset Balance Report Drill Down (AW01N*) *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

38. Asset Management (AM) Presentation Key Custom Report • Unposted/UnBarcoded Assets – Used to provide new asset visibility. • CPP Aging Report – Used to enable follow-up with project manager on assets under construction. • Triennial Inventory Report – Used to display all SAP COTS standard data fields and additional custom fields that were added to the asset master record in order to comply with SECNAV Instruction 7320.10a custody reporting requirements. This report is primarily used for triennial inventory purposes. • Relationship Query Report – Used to display all Organizational Proprerty Accountant relationships to cost center.

39. Asset Management (AM) Presentation Unposted/UnBarcoded Report – Assets with No Value and No Barcode (ZRSAM0002*) Report is used to provide new asset visibility 39 Assets *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

40. Asset Management (AM) Presentation Unposted/UnBarcoded Report – Assets with Value and No Barcode (ZRSAM0002*) Report is used to provide new asset visibility 21 Assets *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

41. Asset Management (AM) Presentation Unposted/UnBarcoded Report – Assets with No Value with Barcode (ZRSAM0002*) Report is used to provide new asset visibility 6 Assets *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

42. Asset Management (AM) Presentation CPP Aging Report (ZRSAM0003*) *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

43. Asset Management (AM) Presentation CPP Aging Report (ZRSAM0003*) Summary of Report *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

44. Asset Management (AM) Presentation CPP Aging Assets Under Construction (ZRSAM0003*) Drilldown to detail report lists the assets *Note: Verbiage in parentheses pertains to SAP transaction code used to execute functions.

45. Acquire to Dispose - Summary • Acquire to Dispose Scenario • Receive and Record Asset • CPP Acquisition • PR/PO Automated Acquisition • Manual Acquisition In-House • Transfer/Retire Asset • Transfer between Activity/Company Code • Transfer within Company Code • Retire Asset by Scrapping • Maintain Asset

46. Asset Management (AM) Presentation Asset Management in Navy ERP

47. Asset Management (AM) Presentation Asset Management in Navy ERP

48. Asset Management (AM) Presentation Asset Management in Navy ERP

49. Thank You!