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Asset Accounting for Healthcare

Asset Accounting for Healthcare. SAP Best Practices. Purpose, Benefits, and Key Process Steps. Purpose

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Asset Accounting for Healthcare

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  1. Asset Accounting for Healthcare SAP Best Practices

  2. Purpose, Benefits, and Key Process Steps • Purpose • The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets • Benefits • Entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as an asset under construction) through its retirement. • Calculate values for depreciation and interest • Depreciation forecast

  3. Purpose, Benefits, and Key Process Steps • Key Process Steps • Creating Asset • Acquisition from purchase with vendor • Acquisition with Automatic Offsetting Entry • Asset Disposal • Asset Disposal Revenue • Clearing of Asset Disposal Account • Post-Capitalization • Write-Ups • Depreciation Posting Run • Depreciation Simulation/Primary Cost Planning

  4. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Asset Accountant • Accounts Payable Accountant • General Ledger Accountant

  5. Detailed Process Description Creating Asset Create asset master record and maintain the asset information. Acquisition from purchase with vendor An external asset acquisition is a business transaction resulting from the acquisition of an asset from a business partner. The acquisition can post integrated with Accounts payable or without Accounts payable. Acquisition with Automatic Offsetting Entry The asset can be posted automatically against the Clearing account fixed asset acquisition.

  6. Detailed Process Description Asset Disposal Net book value of the retired asset is posted to the asset disposal clearing account. Asset Disposal Revenue Post manual FI document or customer invoice to book the revenue from asset disposal. Clearing of Asset Disposal Account A manual FI document is posted to clear the asset disposal account, and to record the gain or loss resulting from the asset disposal.

  7. Detailed Process Description Post-Capitalization Post-capitalization represents subsequent corrections to the acquisition. Write-Ups A write-up is generally understood to be a subsequent change to the valuation of an asset. Assets Under Construction Assets under construction (AuC) are a special form of tangible asset. The AuC process includes a down payment, final invoice and the final settlement.

  8. Detailed Process Description Depreciation Posting Run The depreciation posting should be run periodically because the depreciation accounts are not updated immediately. The system creates posting documents for each depreciation area and account group in accordance with the posting cycles specified in Customizing Posting Acquisition and Production Costs Values In addition to the posting of depreciation (using the depreciation posting run), the most important periodic processing you perform is the posting of changes to asset balance sheet values. These changes consist of all postings that affect the APC of the asset, including acquisitions, retirements, and so on. Depreciation Simulation/Primary Cost Planning You can also post the planned depreciation as planned costs to the cost centers or internal orders to which the individual fixed assets are assigned

  9. Process Flow Diagram Asset Accounting for Healthcare - Overview Event Asset Master Data Needs to Be Created Asset Accountant Asset Acquisition Retirements Intercompany Transfer Creating Asset Asset Explorer Periodic Processing Post - Capitalization Write-up Unplanned Depreciation Assets under Construction General Ledger Accountant Information System

  10. Process Flow Diagram 638 Overview No Yes Asset Accounting for Healthcare – Asset Acquisition Event Asset Acquired Asset Accountant Acquisition with Accounts Payables Acquisition with Automatic Offsetting Entry Acquisition Integrated with Accounts Payable Accounting

  11. Process Flow Diagram 638 Overview No Yes Asset Accounting for Healthcare – Retirements Event Asset to Be Retired Asset Accountant Asset Disposal Retirement with revenue Clearing of Asset Disposal Account Asset Disposal Revenue

  12. Process Flow Diagram 638 Overview Asset Accounting for Healthcare – Asset under Construction Event Asset Needs to be constructed without Investment Order Down Payment Approved Asset Accountant Post Closing Invoice Maintenance of settlement rules Create AUC / Asset for final settlement Accounts Payable Accountant Post Down Payment Request Post Down Payment Clear Down Payment

  13. Process Flow Diagram 638 Overview No Yes Asset Accounting for Healthcare – Periodic Processing Event Periodic End Closing Asset Accountant AUCSettlement Depreciation Run Recalculate Values Display Current Period Actual Number of Units Define Unit-of-Production Depreciation Depreciation Posting Run List of Individual Postings for Assets Depreciation Simulation and Primary Cost Planning Year End Open and Close Financial Period Asset Account Reconciliation Year End Closing for fixed Assets Fiscal Year Change for Asset

  14. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision

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