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

Objective and Scope

Objective of this Procedure


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.

Scope


This operating procedure (OP) applies to both PF2 and RCS (WP2) systems.

Reference Documents

(N/A)

Summary


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.

Definitions

Responsibility


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.

Abbreviations

(N/A)

Process


Modification in the assets books (IFA.01.01)

The Capitalizations/Divestments above 50k need to be tracked

  • Minimum frequency:  At each change/until D-3 of each month
  • Control owner function: Service Centre Management Accounting Service Unit
    Technical controllers (GBU) for some PF2 sites


  • Application level: Group - All assets (tangible & intangible) - Period of controls: each Month.


  • Process description:  SU MAC establish a list of all assets above 50 KEUR put into service and commissioned, which should match with project manager requests.


  • Control description:  SU MAC I&D Key user or technical controllers (depending on organization) need a proof of authorization from Project Managers (commissioning) or Plant Manager or delegate (other modifications: retirement…) to make modifications > 50k€ to the assets register.
    For control in the scope of SBS, it is executed by SU MAC and monitored by SU MAC I&D Key User (SBS)


  • Risk description:

Misstatement of financial reporting (including non-compliance to IFRS rules): financial statements do not reflect the true value of the company's assets.
Fraud

Control evidence


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:

  • Date: last day of the month of the report;
  • From currency: EUR;
  • To currency: currency code of the company;
  • Exchange rate: M;


Fixed assets commissioning


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:

  • Company code;
  • Asset number: "2*", as the results should only include capitalized fixed assets;
  • Report date: Last day of the month of the report;
  • Depreciation area: Group (50 for PF2 companies, 01 for WP2 companies);
  • Sort variant: 0001;
  • List assets;
  • Posting date: From the first to last day of the month of the report.



After the report is executed, filter the "Transfer" amounts above the threshold (50K euro) and extract the result to Excel.

Fixed assets disposals


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:

  • Company code;
  • Asset number: "2*", as the results should only include capitalized fixed assets;
  • Report date: Last day of the month of the report;
  • Depreciation area: Group (50 for PF2 companies, 01 for WP2 companies);
  • Sort variant: 0001;
  • List assets;
  • Posting date: From the first to last day of the month of the report.


After the report is executed, filter the "Retirement" amounts above the threshold (50K euro) and extract the result to Excel.


Listing of acquisitions


This report includes listing of acquisitions in certain time period. To check these movements, use transaction S_ALR_87012050 and fill in following fields:

  • Company code
  • Report date
  • Sort variant: 0001
  • Choose list assets
  • Transaction type 331 to 336

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.

Asset Master Data Attachment Note


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.

Gathering Support Documents


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