Table of contents
1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Reference Documents
3 Summary
4 Definitions
4.1 Responsibility
4.2 Abbreviations
5 Gathering Information
5.1 Threshold Definition
5.2 Fixed assets commissioning
5.3 Fixed assets disposals
5.4 Listing of acquisitions
5.5 Asset Master Data Attachment Note
6 Gathering Support Documents
The purpose of this document is to describe the actions needed to correctly apply the Internal Control FXA.01.01 – Modification in the assets books.
This operating procedure (OP) applies to both PF2 and RCS (WP2) systems.
(N/A)
To perform any kind of modification regarding fixed assets, support documentation is needed. The objective of this internal control is that the fixed assets variations above 50K euro are properly justified by their support documentation, which, in general, is a report from an engineer or project manager.
SBS SU MAC is responsible for performing the internal control and gathering the support documentation for the movements that surpass the defined threshold. SU MAC are also responsible for keeping the Internal Control evidences along with their justifications and to provide the documentation to internal and external auditors when requested.
SU MAC I&D Key User is the main responsible person for this control within the service center.
Controllers, Plant Managers, Project Managers and SU MAC I&D Key User are responsible for providing the support documentation for any movements made on fixed assets.
(N/A)
Modification in the assets books (IFA.01.01)
The Capitalizations/Divestments above 50k need to be tracked
Misstatement of financial reporting (including non-compliance to IFRS rules): financial statements do not reflect the true value of the company's assets.
Fraud
The defined threshold for both commissioning and disposals is 50K EUR. If the company uses another reporting currency, use transaction ZRATE to convert the threshold to the company's reporting currency, filling the following fields:
For fixed assets movements regarding commissioning, that increases related to assets under construction (AUC) being transferred to the fixed asset (FXA) category. To check this kind of movement, use transaction S_ALR_87012054, filling the following fields:
After the report is executed, filter the "Transfer" amounts above the threshold (50K euro) and extract the result to Excel. 
For fixed assets movements regarding retirement and disposals, that being decreases related to fixed assets being sold, scrapped or retired. To check this kind of movement, use transaction S_ALR_87012052, filling the following fields:
After the report is executed, filter the "Retirement" amounts above the threshold (50K euro) and extract the result to Excel. 
This report includes listing of acquisitions in certain time period. To check these movements, use transaction S_ALR_87012050 and fill in following fields:
After the report is executed, filter the "Acquisition" amounts above the threshold (50K euro) and filter only capitalized assets (2*), because most of the movements are coming from AUC. In the end extract the result to Excel.
All the information regarding to assets should be received via FreshDesk ticketing tool. To ensure transparency – when asset is created, appropriate ticket number should be added as a note.
To check if it is done for all assets in period, transaction Z1A_ASSET_NOTE can be used.
Two filters should be set – first one in asset column (2*) to show only created assets and second in amount field, where we put that the amount should be larger than 50K EUR.
In the note field according ticket number can be seen – information can be found in FreshDesk. If there is no note, it should be added by trying to find it.
After the assets that are above the threshold are listed, the support documentation for the movements should be gathered to justify the variances. Support documents can be: project managers' reports, local requests by ticket, asset on completion forms, among others.
End of document