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FI332 Umoja Asset Accounting

Process

Umoja Asset Accounting Process Version 16


Last Modified:
9-Oct-13
Copyright
United
Nations

Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Introduction
Please share with us:
Your name
Your section/unit

# Years with the UN


Interesting Fact About Yourself

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Ground Rules
Please consider the following guidelines during the training session:
Turn your cell phone to silent mode. Please step out of the class to take any
important phone call

Please do not access your e-mail or the Internet outside of breaks


Participate fully in the training session and respect each others contribution
Breaks are included at the discretion of the trainer

X
No Phones

X
Do Not Access
E-mail

Participate

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Ask Questions

Breaks

Course Overview
The purpose of the Umoja Asset Accounting Process course is to explain the Asset
Accounting process for DFS-supported missions.

Prerequisite Review
You should have completed the following prerequisite courses:
Umoja Overview

Umoja Master Data and Coding Block Overview


Umoja ECC Navigation
Umoja Asset Accounting Overview

Course Duration: 6 hours

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Course Objectives
After completing this course, you will be able to:
List the key roles and responsibilities in Asset Accounting
Explain the processes that comprise the lifetime of a fixed asset

Capitalize standalone assets and assets under construction (AuCs)


Run a depreciation run
Impair a fixed asset
Retire a fixed asset by donation/scrapping and sale
Transfer a fixed asset
Run reports related to Asset Accounting

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Module 1 Objectives
After completing this module, you will be able to:
Explain the key concepts of the Asset Accounting Overview course

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Key Terminology
Key Term

Description

Fixed Asset

A subset of non-current assets that can be used for more than


one reporting period and is material in value.

Depreciation

The diminution in the value of an asset due to the normal wear


and tear over the life of the asset. It is calculated on a straightline basis over the period of the life that is stored in the asset
master data. This method measures the consumption of the
value of tangible assets.

Amortization

The deduction of capital expenses over an assets life. This


method measures the consumption of the value of intangible
assets. In Umoja, both depreciation and amortization are
referred to as depreciation.

Capitalization

The recording of business expenditures as assets because their


occurrences produce benefits for the business for more than a
financial year.

Useful Life

The length of time that a depreciable asset is expected to be


useable.
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Key Terminology
Key Term

Description

Asset Class

A criteria for structuring fixed assets from an accounting point


of view. Every asset has to be assigned to exactly one asset
class. The asset class is used to assign the assets (and their
business transactions) to the correct G/L accounts.

Assets under
Construction

The process to account for self-constructed assets, internally


developed intangible assets and other capital projects which
are mainly of long duration and high dollar amount.

Final Asset

The point where assets are deemed available to use and


depreciation starts.

Impairment

A loss in the future economic benefits or service potential of


an asset, over and above depreciation.

Tangible Asset

An asset that has a physical form, for example machinery,


buildings or land.

Intangible Asset

An asset that is not physical in nature, for example patents,


trademarks and software.

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Key Terminology
Key Term
Document Date

Description
The relevant document date authorizing the transaction.

Posting Date

The date when the entry will become effective.

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Roles & Responsibilities


The following roles are involved in the Umoja Asset Accounting process:

Financial Accounting
Closing User

Responsible for the Year-End Closing process to close


the financial year at the Company Code level
Runs the fixed asset depreciation and financial
accounting revaluation (IPSAS requirement)
Responsible for the reclassification of receivables and
payables and balances the carry-forward processes on
an annual basis
Manages the Special Period documents
Runs the revaluation of Purchase Orders (POs) and
earmarked funds, as well as other closing processes in
Funds Management

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Roles & Responsibilities


The following roles are involved in the Umoja Asset Accounting process:

Financial Accounting
Asset Accounting User

Financial Accounting
Asset Accounting
Senior User

Creates, updates and maintains the fixed asset master data


and postings and/or verifies certain acquisition transactions

Is responsible for asset disposals, asset revaluations and


asset transfers

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Umoja Asset Accounting Review


Umoja Asset Accounting deals with the accounting
of fixed assets, which is a subset of non-current
assets.
This process is applicable to the Peacekeeping and
Special Political missions that will continue to use
Galileo to manage most fixed assets, before the
decommissioning of the Galileo system.
In the interim, Umoja will track only real estate
(including Real Estate under Construction,
excluding prefab buildings) and intangible assets.
Note: Asset Accounting always refers to the fiscal
year.

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Umoja Asset Accounting Review


Some important points related to fixed assets are:
Fixed assets are items that can be used for
more than one reporting period and are
material in value
Fixed assets include tangible and intangible
assets
The utilization of fixed assets is spread across
various reporting periods during the useful
life of the asset
This is the process of depreciation for tangible
assets, or amortization for intangible assets
The depreciated/amortized value (Net Book
Value) is documented in the balance sheet
under Property, Plant and Equipment and
Intangible Assets

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Asset Master Data Review


The asset master data record for each asset captures two types of data:

Asset Data

Depreciation Data

Includes general information such as


description, location, asset class and
so on

Includes depreciation-specific
information such as depreciation
terms, useful life and so on

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Umoja Asset Class


General Ledger (G/L) Accounts

Asset Classes
Buildings

Intangibles

Assets Under
Construction

Asset Master Records

Each asset is a part of an asset class. While the IPSAS has a defined set of asset classes,
there is an expansion to these asset classes in Umoja. Each asset class:
Classifies assets into logical groups
Controls the screen layouts of the asset master and depreciation area
Provides default values to assets that are created under the corresponding asset
class
Determines the numbering ranges of assets
Determines the G/L accounts to be posted to for that class of assets
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Umoja Asset Class


Asset classes applicable to the Umoja Asset Accounting process are:

Asset Class

Asset Class Description

110

Land

120

Buildings Fixed

140

Leasehold Improvements Fixtures and Fittings

150

Leasehold Improvements Minor Construction Works

160

Infrastructure Assets

610

Assets under Construction Buildings

620

Asset under Construction Infrastructure

710

Software Internally Developed

720

Software Acquired Enterprise Applications

730

Software Acquired Business Specific Applications

740

Software Acquired Productivity and Utility App

750

Software Acquired Infrastructure Mgt Application


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Umoja Asset Class


Asset classes applicable to the Umoja Asset Accounting process are:

Asset Class

Asset Class Description

760

Software Acquired Application Development

770

License Right

780

Copyright

790

Software Maint Enterprise Applications

800

Software Maint Business Specific Applications

810

Software Maint Productivity and Utility Applications

820

Software Maint Infrastructure Mgt Applications

830

Software Maint Application Development

840

Asset in Development IT system

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Chart of Depreciation & Depreciation Area


The depreciation data is defined from a Chart of
Depreciation:
Chart of Depreciation

Chart of Depreciation

It defines the rules for depreciation of


assets, in the form of depreciation
areas
UN uses one Company Code and one
Chart of Depreciation

The United Nations


1000 Company Code

Depreciation Area
It shows the valuation of a fixed asset
for a particular purpose

Financial Accounting Purpose

UN only uses one depreciation area


for financial accounting purposes
Depreciation Area

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Asset Master Data: T-Codes


The T-codes to create, change and display an asset master record are:

T-Code

Description

AS01

Create Asset Master Record

AS02

Change Asset Master Record

AS03

Display Asset Master Record

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Asset Master Data: Fields


1
2

The following fields appear at the top of the asset master data screen:
1 Asset Number and Sub Number: A unique number that identifies the asset in the
Fixed Assets sub-ledger. Sub assets are created for the component parts that
could have independent useful lives and depreciation parameters
2 Class: Identifies the asset class that the asset belongs to

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Asset Master Data: Tabs

The asset master data is organized into the following tabs:


1

General: This tab includes the description and other basic information for the
asset

Time-Dependent: This tab includes data that can change over time, such as
assigned Cost Center. This tab stores both current and historical values, while the
other tabs only store the current value

Allocations: This tab includes fields for report sorting, investment and integration
with Plant Maintenance (to be implemented in later parts of Umoja Foundation)

Origin: This tab includes information regarding the origin of the asset

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Asset Master Data: Tabs

The asset master data is organized into the following tabs:


5

Net Worth Tax: This tab includes the net worth and real estate information

Insurance: This tab includes information on insurance for the asset, if applicable

Leasing: This tab includes the lease information, if applicable

Depreciation Area: This tab includes information on the valuation of a fixed asset
for a particular purpose

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Asset Master Data: General


The General tab (tab A) contains
the following master data fields:
1

Description: A text that


describes the asset

Account Determination: It is
defined at the asset class
level. It determines the
reconciliation accounts in the
G/L, as well as their
offsetting accounts, that are
to be posted to when certain
business transactions are
carried out for the asset

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Asset Master Data: General


The General tab (tab A) contains the
following master data fields:
3

Inventory Number: It contains


the unique identifier of the
asset in the legacy system

Quantity and Unit of


Measurement (UOM): For
UN, all assets have quantity
1 and units each as assets
are individually maintained
and not grouped

3
4
5

Historical Indicator: This is


used to ensure the inclusion
of an asset in the history
report for assets

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Asset Master Data: General


The General tab (tab A)
contains the following master
data fields:
6

Inventory Indicator: This


is used to ensure the
inclusion of an asset in
the inventory listing
Capitalization Date: This
is defaulted to the day of
the first acquisition
posting to the asset.
This is the starting date
for calculating the
depreciation

7
8

Deactivation Date: This


date is automatically
populated when an asset
is retired
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Asset Master Data: Time-Dependent


The Time-Dependent tab (tab B)
contains the following master data
fields:
1

Business Area: Business Area


in which the asset is reported
on the balance sheet
Cost Center: Area responsible
for the assets depreciation
cost

Fund: Fund in which the asset


is reported on the balance
sheet

Budget Period: Budget period


in which the asset was
acquired

b
1
2

d
3
4

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Asset Master Data: Time-Dependent


The Time-Dependent tab (tab B)
contains the following master data
fields:
5 Functional Area: Used to classify
revenues and expenditures of an
organization by function
6 Grant: Grant in which the asset is
reported on the balance sheet

7 Funds Center: The organizational


level at which the budgets are
stored
8 Asset Shutdown: Used to stop
the depreciation of an asset

5
6
7

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Asset Master Data: Allocations


The Allocations tab (tab C) contains the following master data fields:
1

Infrastructure Type: A way to classify the infrastructure, e.g. Transport, Energy,


Landscaping, etc

Infrastructure Function: A way to further classify the infrastructure based on type

Building Function: A way to add information regarding what the building will be
used for

Asset Super Number: Identifies the IPSAS class that the asset belongs to. It is
defaulted from the Umoja asset class

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Asset Master Data: Origin


The Origin tab (tab D) contains
the following master data fields:
1

Vendor: Identifies the


name of the vendor from
whom the asset was
acquired

Original Asset: Identifies


the asset number prior to
the asset transfer, if the
asset was acquired through
a transfer

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Asset Master Data: Net Worth Tax


The Net Worth Tax tab (tab E)
contains the following master
data field:
1

Property Indicator: Used


to indicate the ownership
situation of the asset, for
example, purchased,
constructed, donated,
finance lease, controlled

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Asset Master Data: Depreciation Areas


The Depreciation Areas tab (tab H) contains
the following master data fields:
1

Depreciation Key: Default depreciation


parameter given to the asset based on
the pre-configured depreciation settings
for each asset class. The depreciation
key contains various depreciation
parameters such as depreciation
method, period controls (when to
start/stop the depreciation) and
acceleration parameters

Enter ZSLA for straight-line depreciation.

Note: For assets that are not


depreciated, this field is automatically
populated with Z000. No other fields
need to be entered.
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Asset Master Data: Depreciation Areas


The Depreciation Areas tab (tab H) contains
the following master data fields:
2

Useful Life: Default number of years and


months that will be given to the asset
based on the pre-configured values for
each asset class. This is a very important
element for the calculation of
depreciation as the cost of the asset is
depreciated over the useful life.

Note: Assets (example infrastructure)


with variable useful life have the value
999
3

Scrap Value: Value of the asset that can


be recovered at the end of its useful life.
In the UN it is 0 (to find this
information, double-click the UseLife
field)

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Asset Explorer
Once the user creates an asset master record, the Asset Values button is available at the
top of the screen
. The user can click this button or use the T-code AW01N to
access the Asset Explorer.

For an asset, the Asset Explorer Planned values tab displays planned changes in value
and all Transactions carried out for this asset.

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Asset Explorer
The Posted values tab displays posted changes in value and Depreciation that is posted
or planned for each period.
For an asset, the Asset Explorer screen displays information for Objects related to asset,
example related PO numbers, G/L accounts, etc.

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Asset Accounting: End-to-End Process


Umoja Asset Accounting encompasses the entire lifetime of a fixed asset. The end-toend Asset Accounting process is as follows:

Asset Master Data


Maintenance

Acquisition of Assets

Depreciation of
Assets

Retirement of Assets

Revision of Useful Life

Transfer of Assets

Impairment of Assets

Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed
out of Umoja. The posting will be made separately into the system as part of another step.
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Touch Points
Touch points refer to these integration points across Umoja modules, processes and
activities.
The Acquisition and Production
Costs (APC) are posted on the
Balance Sheet accounts
The depreciation is posted on
the Profit and Loss accounts

The cost of depreciation is posted on Cost


Centers
Lower complexity assets being
constructed are posted to Internal Orders
Cost &
Management
Accounting

General Ledger
(G/L)
Asset
Accounting

Supply Chain/
Procurement/
Logistics

Real Estate

Assets, materials and


services used to construct an
asset can be directly posted
at the time of goods and
service receipts

Real Estate, including


finance leases, is
accounted for within
Asset Accounting

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Simulation Activities
Throughout this training, users will have the opportunity to
conduct activities in the form of simulations. Simulations
are interactive recordings of the Umoja system used to
help facilitate a hands-on learning experience. The
simulation links are provided on the corresponding activity
slides.
Users can access simulations in three different modes:

Show me: Users view a video of an entire transaction


being conducted
Lets do it together: Users will be prompted to input
data at key points during the transaction
(recommended)
Try it: Users can complete an entire transaction on
their own, with no additional instructions provided

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Activity 1
Transaction Name: Create Asset
Transaction Code: AS01
Link to the uPerform simulation:
http://unsapuperform.umoja.un.org/gm/folder1.11.2478?originalContext=1.11.2592

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Learning Checkpoint 1
Identify the correct features of fixed assets in Umoja.
Select all that apply.
A.
B.
C.
D.

Fixed assets are items that can be used for one reporting period
Fixed assets include intangible assets only
The utilization of fixed assets is spread across various reporting periods during the
useful life of the asset
The depreciated/amortized value (Net Book Value) is documented in the balance
sheet under Property, Plant and Equipment and Intangible Assets

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Learning Checkpoint 1
Identify the correct features of fixed assets in Umoja.
Select all that apply.
A.
B.
C.
D.

Fixed assets are items that can be used for one reporting period
Fixed assets include intangible assets only
The utilization of fixed assets is spread across various reporting periods during
the useful life of the asset
The depreciated/amortized value (Net Book Value) is documented in the balance
sheet under Property, Plant and Equipment and Intangible Assets

Options C and D are correct answers. The utilization


of fixed assets is spread across various reporting
periods during the useful life of the asset and the
depreciated/amortized value (Net Book Value) is
documented in the balance sheet under Property,
Plant and Equipment and Intangible Assets.

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Module 1 Summary
The key points covered in this module are listed below:
The Umoja Asset Accounting process described here is applicable to Peacekeeping
and Special Political Missions that continue to use Galileo to manage most fixed
assets, before the decommissioning of the Galileo system
In the interim, Umoja ECC is only tracking Real Estate (including real estate under
construction, excluding prefab buildings) and Intangible Assets
Identify the T-code used to create, change display an Asset Master Record
Umoja Asset Accounting encompasses the entire lifetime of an asset: master data
maintenance, acquisition, depreciation, revision of useful life, impairment,
retirement and transfer

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Module 2 Objectives
After completing this module, you will be able to:
Explain the asset capitalization process for standalone assets, assets under
construction and finance leases

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Asset Accounting: Acquisition of Assets

Asset Master Data


Maintenance

Acquisition of Assets

Depreciation of
Assets

Retirement of Assets

Revision of Useful
Life

Transfer of Assets

Impairment of Assets

Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed
out of Umoja. The posting will be made separately into the system as part of another step.
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Acquisition of Assets
This module will cover capitalization processes for:

Assets under
Construction (AuC)

Standalone Assets

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Capitalization of Standalone Assets


Standalone assets are those for which no additional costs are anticipated and are
capitalized at the time of receipt. There are two ways to procure standalone assets:
Through the Material Master

This is used for tangible assets such as real estate.


Through the Service Master
This is used for all intangible assets.

The capitalization process is as follows:

Asset Master Shell


Created at Purchase Req

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Capitalization at
Goods Receipt

48

Capitalization of Standalone Assets


Asset Master Shell
Created at Purchase Req

Capitalization at
Goods Receipt

For standalone assets:


The asset is procured by users in the Supply
Chain function
During the purchase requisition, the shell of
the asset master data record is created. The
selection of the items to be purchased generates
the identification of the Asset Class and G/L
account to be used for recording the asset
At this point, the asset number is generated by
the system
After the Purchase Order (PO) has been
approved, the account assignment of the asset
master record is populated based on the PO

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Capitalization of Standalone Assets


Asset Master Shell
Created at Purchase Req

Capitalization at
Goods Receipt

The trigger for capitalization is the point where the goods or services are received:
When Goods Receipts are created by users in the Supply Chain function, the system
automatically post the accounting entries to debit the Asset G/L account that has been
referred to in the PO
When Service Entry Sheets (for service receipts) are created, the system automatically
posts the accounting entries to debit the Asset G/L account that has been referred to in
the PO. The Asset Accounting User uses the T-code AS02 to update the asset master
record with the quantity of intangibles to 1. The quantity needs to be updated
because it is pre-populated with 0 when the user receives intangibles through the
service master. In addition, the user confirms that the useful life is accurate
The corresponding accounting entries appears as follows:
Debit (+)

Credit (-)

Asset

GR/IR

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Capitalization of Assets under Construction


The process to capitalize Assets under Construction (AuC) is as follows. This process
involves both the Asset Accounting User and Senior Asset Accounting User:

Create Internal
Order

Procure Material
and Services to
Internal Order

Create AuC

Settle Internal
Order

Assess Percentage
of Completion

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Reconcile
Expenses

Create Final Asset

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Capitalization of Assets under Construction


Create Internal
Order

Procure Material
and Services to
Internal Order

Settle Internal
Order

Reconcile Expenses

When a decision has been made to create an asset which will be built in house, the Asset
Accounting User submits a request to create a new Internal Order for the project.
The Internal Order is used to collect service and material costs directly procured for the
project.
Note: The value of Asset under Construction will be arrived at using the replacement cost
methodology.

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Capitalization of Assets under Construction


Create Internal
Order

Procure Material
and Services to
Internal Order

Settle Internal
Order

Reconcile Expenses

When services and materials directly


associated with the AuC are procured, the
account assignment from the Shopping Cart
must include the Internal Order.

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Capitalization of Assets under Construction


Create Internal
Order

Procure Material
and Services to
Internal Order

Settle Internal
Order

Reconcile Expenses

During the year-end closing process, the items recorded in the Internal Order will be
transferred to the responsible cost center by a settlement.
The Asset Accounting Senior User uses the T-code KO88 to settle the Internal Order.

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Capitalization of Assets under Construction


Create Internal
Order

Procure Material
and Services to
Internal Order

Settle Internal
Order

Reconcile Expenses

On this screen, enter the following information: Internal Order number, Settlement Period,
Fiscal Year.
Ensure that the Test Run box is checked to perform a test run. Then, when ready, uncheck
the Test Run box to complete the settlement.

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Capitalization of Assets under Construction


Create Internal
Order

Procure Material
and Services to
Internal Order

Settle Internal
Order

Reconcile Expenses

In PK missions, items may be issued from


Galileo towards the AuC. These will be
captured in a spreadsheet outside of Umoja.
At the end of the year, the Asset Accounting
Senior User reconciles the amount captured
on the external spreadsheet against:
Costs captured on the Internal Order
All items supplied from Galileo inventory
and other labor costs

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

At the end of the year, the Technical Experts will assess the
percentage completion of the asset.
Using calculations and standards from the Depreciated
Replacement Cost Methodology, the AuC is valuated and the
Asset Accounting Senior User makes a direct entry into Umoja to
an AuC G/L account (non-budget consuming account).
At this time there will be no entry recorded in the Fixed Asset
ledger.

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

Following accounts will be debited with the value estimated in step 5:


27191014
FA Asset under Construction Building Cost Man
27195014
FA Asset under Construction Infrastructure CostMan
The credit will be posted to accounts specifically created for this posting. These accounts do
not consume budget as the actual costs were captured in the internal order and in Galileo.
The accounts created are:
71999090
SB Capital Cost to Asset under Construction
72199090
Official Travel Capital Cost to Asset Construction
74999090
Operating Expense Capital Cost Asset Construction
77299090
Consum Capital Cost to Asset under Construction
79989090
Other Exp Capital Cost to Asset under Construction

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

The steps for making a


direct entry in Umoja are
as follows:
1

Enter the T-code FV50


in the Command field

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

Enter the appropriate data in the fields


located in the Header section of the
screen
2 Enter the current date in the
Document Date field
3 Enter the year-end date in the
Posting Date field
4 Enter the Internal Order number
Reference field
5 Enter the name of the asset in the
Doc.Header Text field
6 Enter the correct currency type in
the Currency field

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

7 Account
GL
Enter the
field
7
D/C appropriate
field (Debit/Credit)
data for
Amount
eachfield
G/L entry in
Fundthe
field
corresponding
Business
column
Area
fields.
field
Cost Center field
Functional
Area
fieldthat
These are the
fields
Segment
field
need to be
populated in
Grant
field
the line field of G/L
Earmarked
Fund field
Document screen.
GL Account field AuC Account
Earmarked Funds, Doc item field
D/C field (Debit/Credit)
Profit Center field
Amount field
Text field
Fund field
Business Area field
Cost Center field
Functional Area field
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Posting Key:
40 (Debit Entry)
50 (Credit Entry)

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

Click
GL
Account
the field
button to review the posting.
D/C field (Debit/Credit)
Amount
field the simulated posting, click the Save as Completed
After reviewing
Fund
field
initiate
the workflow for approval.
Business Area field
Cost Center field
Functional Area field
Segment field
Grant field
Earmarked Fund field
Earmarked Funds, Doc item field
Profit Center field
Text field

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button. This will

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

GL
field
TheAccount
G/L documents
for all asset transactions can be viewed using the T-code FB03.
D/C field (Debit/Credit)
Amount field
Fund field
Business Area field
Cost Center field
Functional Area field
Segment field
Grant field
Earmarked Fund field
Earmarked Funds, Doc item field
Profit Center field
Text field

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

After asset under construction is completed, it is recognized as a final asset.


The Final Asset account needs to be created using the T-code AS01, by the Asset Accounting
User. The following fields are required:
Initial Screen: Asset Class and Company Code
General Tab: Description, Quantity (always 1), check the Manage Historically box,
Capitalized On date (if applicable)
Time Dependent Tab: Cost Center, Fund, Grant (if applicable)
Origin Tab: Vendor (if applicable)
Net Worth Tab: Property Indicator
Depreciation Area Tab: Useful life, Scrap value

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

Then, the Asset Accounting Senior User


uses the T-code F-90 to:

Debit (+)

Credit (-)

Final Asset

AuC G/L Account

Enter the Document and Posting dates


Enter AA in the Document Type field
Enter USD in the Currency/Rate field
Enter the Internal Order number in
Reference field
Enter the data in the Period field

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

In the first line item, use the posting key 70


to debit the final asset:
Enter the final asset number
Transaction type Z11
Click the Fast Data Entry button when
completed.
Posting Key:
70 (Debit Asset)
50 (Credit Entry)

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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

In the next screen, fill in the


following information: Amount,
Quantity (always 1).
Click the More button to view
additional information (derived
from the asset master record).
In the second line item, use the
posting key 50 to credit the AuC
accounts.
Click the Fast Data Entry button
when complete.
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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

In the third screen, fill in the


required value in the following
fields:
Amount
Fund
Funds Center
Save the transaction when
completed.
Note: Care should be taken to
input data in this T-code as the
Simulate option does not exist.
Moreover this document will be
posted by the responsible officer
without workflow.
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Capitalization of Assets under Construction


Assess Percentage
of Completion

Create AuC

Record Final Asset

Check the posting when


completed.

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Capitalization of Assets
There are exceptional cases where a mission may contract out the construction of building to
be completed within a year.

In this case, the above procedure is followed with the exception that the FV50 step is not
needed. Instead, the Asset Accounting User uses the T-code F-90 to:

71999090
72199090
74999090
77299090
79989090

Debit (+)

Credit (-)

Final Asset

One of the following


Accounts

SB Capital Cost to Asset under Construction


Official Travel Capital Cost to Asset Construction
Operating Expense Capital Cost Asset Construction
Consum Capital Cost to Asset under Construction
Other Exp Capital Cost to Asset under Construction

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Capitalization: Grant-Related
For grants projects that generate assets, a separate internal order will not be created. The
WBSE that's linked to the grant will be used to capture costs.

The steps are exactly the same as previously, except in place of an Internal Order the WBSE
will be used. In addition, the Asset Accounting Senior User uses the T-code CJ88 to settle the
WBSE to the responsible cost center.

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Capitalization: Grant-Related

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Capitalization: Grant-Related
In some cases, a mission may receive an in-kind donation of an asset that is not budgeted. A
manual entry is used to debit the asset and credit revenue without consuming budget or
cash. No Grant will be used for this solution. After capitalizing the fixed asset, the Facilities
Planner in Real Estate will create the corresponding Real Estate objects and link the fixed
asset.

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Capitalization: Grant-Related
Then, the Asset Accounting User uses
the T-code F-90 to:

Debit (+)

Credit (-)

Final Asset

Revenue
Account

Enter the Document and Posting


Dates
Enter AA in the Document Type
field
Enter USD in the Currency/Rate
field
Enter the Grant number in
Reference field
Enter the data in the Period field

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Capitalization: Grant-Related
In the first line item, use the posting key 70 to debit the final asset:
Enter the final asset number
Transaction type Z10

Click the Fast Data Entry button when completed.


Posting Key:
70 (Debit Asset)
50 (Credit Entry)

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Capitalization: Grant-Related
In the next screen, fill in the
following information: Amount,
Quantity (always 1).
Click the More button to view
additional information (derived
from the asset master record).
In the second line item, use the
posting key 50 to credit the
revenue account. The account
number will be provided during
training.
Click the Fast Data Entry button
when complete.

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Capitalization: Grant-Related
In the third screen, fill in the
required value in the following
fields:
Amount
Fund
Funds Center
Save the transaction when
completed.

Note: Care should be taken to input data in this T-code as the Simulate option does not exist.
Moreover this document will be posted by the responsible officer without workflow.
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Capitalization: Grant-Related
Check the posting when completed.

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Activity 1
Transaction Name: Capitalization of Asset under
Construction

Transaction Code: F-90


Link to the uPerform simulation:
http://unsapuperform.umoja.un.org/gm/folder1.11.3962?originalContext=1.11.2592

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Learning Checkpoint 1
When are AuC assessed to determine their percentage of completion?
Select the correct option.
A.
B.
C.
D.

At the end of the month


At the end of the quarter
At the end of six months
At the end of the year

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Learning Checkpoint 1
When are AuC assessed to determine their percentage of completion?
Select the correct option.
A.
B.
C.
D.

At the end of the month


At the end of the quarter
At the end of six months
At the end of the year

Option D is the correct answer. This assessment is


conducted at the end of the year.

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Module 2 Summary
The key points covered in this module are listed below:
Standalone assets are capitalized at the time of receipt
For assets under construction, an Internal Order is created to track costs incurred
in Umoja. A separate spreadsheet maintained outside the system is used to track
the full cost of the AuC
Using calculations and standards from the Depreciated Replacement Cost
Methodology, the AuC is valuated and a direct entry is made into Umoja to an AuC
G/L account
After asset under construction is completed, it is recognized as a final asset and
capitalized
Asset master record is created in the Asset ledger

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Module 3 Objectives
After completing this module, you will be able to:
Run a depreciation run

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Asset Accounting: Depreciation of Assets

Asset Master Data


Maintenance

Acquisition of Assets

Depreciation of
Assets

Retirement of Assets

Revision of Useful
Life

Transfer of Assets

Impairment of Assets

Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed
out of Umoja. The posting will be made separately into the system as part of another step.
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Depreciation Review
UN will depreciate asset on monthly basis. Both Depreciation and Impairment Loss are
recorded in the General Ledger when a depreciation run is completed at the end of the
month. The accounting entries that will be posted are:

Depreciation

Impairment Loss

Debit (+)

Credit (-)

Debit (+)

Credit (-)

Depreciation
Expense

Accumulated
Depreciation
(Balance Sheet)

Impairment
Loss

Accumulated
Impairment
(Balance Sheet)

Note: All Asset Accounting transactions (example recording of new asset, shell record, retirement
of the asset) post immediately in the General Ledger (G/L) except Depreciation and Impairment.
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Modes for Depreciation Run


Umoja can perform four depreciation runs. Planned Posting Run will be performed at
each month end, others will be performed on need basis.

Planned
Posting Run

Re-Run

Restart Run

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Unplanned
Posting Run

87

Planned Posting Run


Planned
Posting Run

Re-Run

Restart Run

Unplanned
Posting Run

The UN will perform a depreciation run at the end of each


month, as part of the month-end closing process. Umoja
checks that a prior-month depreciation run has been posted
before allowing the user to post a current-month
depreciation.
For example, processing of the depreciation run for the
month of October can only take place after all depreciation
postings/runs up to September are successfully completed.

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Re-Run
Planned
Posting Run

Re-Run

Restart Run

Unplanned
Posting Run

In case depreciation has to be re-run, it can only be done


for the last period performed.
The system will only consider changes that have taken
place in the asset register since the last run.
It will post depreciation amounts that were not posted in
previous runs.

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Restart Run
Planned
Posting Run

Re-Run

Restart Run

Unplanned
Posting Run

The restart run option will be performed when the


system was stalled and the depreciation run could
not be completed.

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Unplanned Posting Run


Planned
Posting Run

Re-Run

Restart Run

Unplanned
Posting Run

The unplanned posting run option is generally not used. It can be used when
running depreciation out of sequence.

For example, executing the depreciation run for December


when the last run was performed for September.

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Depreciation of Assets
The process to depreciate assets is as follows. This process involves the Financial
Accounting Closing User:

Review and
Prepare for
Depreciation Run

Confirm
Depreciation
Mode

Perform Actual
Run

Review Postings

Run
in Test Mode
and Foreground

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Run in Test
Mode and
Background

Verify
Depreciation
Amounts

92

Depreciation of Assets
Review and
Prepare for
Depreciation Run

Confirm
Depreciation
Mode

Run
in Test Mode and
Foreground

Run in Test Mode


and Background

Verify
Depreciation
Amounts

The Financial Accounting Closing User reviews and finalizes any changes to the depreciation
run.

Note that the depreciation run is always performed at company code level, in UNHQ only.
Missions will be required to ensure that the fixed asset master record are complete, have
correct data, impairment, adjustments to useful lives etc. have been recorded before the run
is performed.

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Depreciation of Assets
Review and
Prepare for
Depreciation Run

Confirm
Depreciation
Mode

Run
in Test Mode and
Foreground

Navigate to the Depreciation Posting Run screen


using the T-code AFAB.
1 Enter the required year in the Fiscal Year
field
2 Enter the required period in the Posting
Period field
3 Select the Planned posting run option
under Reason for posting run
4 Select the List assets option under Further
options
5 Select the optional fields Test Run, Error
Analysis under Parameters for Test Run

Run in Test Mode


and Background

Verify
Depreciation
Amounts

1
2
3

Click the Execute button to perform a test run.


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Depreciation of Assets
Review and
Prepare for
Depreciation Run

Confirm
Depreciation
Mode

Run
in Test Mode and
Foreground

A simulation is run in the foreground.


Note that the system limits depreciation run to
the first 1000 assets.
1 The status of the depreciation run is then
displayed. If there are any errors, click the
Error List button to review them.

Run in Test Mode


and Background

Verify
Depreciation
Amounts

Note: Normally no error will be reported as


Umoja will not allow documents to be posted
which are not complete in all respects.

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Depreciation of Assets
If there are no errors, the text run will be completely successfully.

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Depreciation of Assets
Review and
Prepare for
Depreciation Run

Confirm
Depreciation
Mode

Run
in Test Mode and
Foreground

After errors have been rectified, run the


simulation in the background for all assets.
1 Click the Back button. To run it in the
background, click the Program menu, then
run in Background
2 Click the System menu. A popup window
appears. Select LOCL as the Output Device
and click OK

Run in Test Mode


and Background

Verify
Depreciation
Amounts

Then, click the Immediate button and the Save


button.

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Depreciation of Assets
Review and
Prepare for
Depreciation Run

Confirm
Depreciation
Mode

Run
in Test Mode and
Foreground

Run in Test Mode


and Background

Verify
Depreciation
Amounts

After the job is performed , check it by click the System menu and Own Jobs. Then, click the
Spool button.

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Depreciation of Assets
Review and
Prepare for
Depreciation Run

Confirm
Depreciation
Mode

Run
in Test Mode and
Foreground

Run in Test Mode


and Background

Verify
Depreciation
Amounts

Review the report in the Type column. Click the Job Log button to view errors and
description.

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Depreciation of Assets
Perform
Actual
Run

Review Postings

After all checks are complete and no errors


exist, click the Back button to go to the
Depreciation Posting Run screen.
1 Uncheck Test Run under Parameters for
Test Run
Perform the same steps for the background run
Note that this will run as an actual posting.

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Depreciation of Assets
Perform
Actual
Run

Review Postings

Review depreciation postings. Monthly depreciation is shown as Ordinary Depreciation and


Impairment is shown as Special Depreciation. To search for previous depreciation runs
executed by the current user, use the T-code SMX.

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Activity 1
Transaction Name: Depreciation
Transaction Code: AFAB
Link to the uPerform simulation:
http://unsapuperform.umoja.un.org/gm/folder1.11.2402?originalContext=1.11.2592

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Learning Checkpoint 1
UN will perform a depreciation run at the end of each _________.
Fill in the blank with the correct option.
A.
B.
C.
D.

Year
Period
Day
Month

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Learning Checkpoint 1
UN will perform a depreciation run at the end of each _________.
Fill in the blank with the correct option.
A.
B.
C.
D.

Year
Period
Day
Month

Option D is the correct answer. UN will perform a


depreciation run at the end of each month, as part
of the month-end closing process.

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Learning Checkpoint 2
What is the correct order of activities to successfully perform a monthly depreciation
run in Umoja?
Select the correct option.
A.

B.

C.

Perform actual depreciation run> Perform depreciation run in test mode in the
foreground processing > Perform depreciation run in test mode in background for
all assets
Perform depreciation run in test mode in the foreground processing > Perform
actual depreciation run > Perform depreciation run in test mode in background for
all assets
Perform depreciation run in test mode in the foreground processing > Perform
depreciation run in test mode in background for all assets > Perform actual
depreciation run

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Learning Checkpoint 2
What is the correct order of activities to successfully perform a monthly depreciation
run in Umoja?
Select the correct option.
A.

B.

C.

Perform actual depreciation run> Perform depreciation run in test mode in the
foreground processing > Perform depreciation run in test mode in background for
all assets
Perform depreciation run in test mode in the foreground processing > Perform
actual depreciation run > Perform depreciation run in test mode in background for
all assets
Perform depreciation run in test mode in the foreground processing > Perform
depreciation run in test mode in background for all assets > Perform actual
depreciation run

Option C is the correct answer.

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Module 3 Summary
The key points covered in this module are listed below:
The Depreciation and Impairment Loss are both recorded when a depreciation run
is completed at the end of the month

In Umoja, a depreciation run can be performed in four modes Re-Run, Planned


Posting Run, Unplanned Posting Run and Restart Run
The Depreciation Run is performed using the T-code AFAB

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Module 4 Objectives
After completing this module, you will be able to:
Impair a fixed asset

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Asset Accounting: Impairment of Assets

Asset Master Data


Maintenance

Acquisition of Assets

Depreciation of
Assets

Retirement of Assets

Revision of Useful
Life

Transfer of Assets

Impairment of Assets

Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed
out of Umoja. The posting will be made separately into the system as part of another step.
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Impairment of Fixed Asset Review


According to IPSAS, ongoing impairment reviews will occur when there is an event
which can reduce the value of the asset compared to the book value. Impairment could
be noted during the Asset verification exercise.
An Accident or Natural Disaster

An Asset Verification Exercise

Per UN policy, an annual impairment review will be performed on all individual items of
Plant, Property and Equipment (PPE) over USD 100,000.

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Impairment of Fixed Asset Review


Once the impairment values are accounted for and/or useful lives are changed
to new estimated values, the remaining NBV is depreciated over the remaining
useful lives.
The following accounting entry for Impairment is recorded in the General Ledger during
the monthly depreciation run:

Debit (-)

Credit (+)

Impairment of
Fixed Assets

Accumulated
Impairment
(Balance Sheet)

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Impairment of Fixed Asset


The process to impair assets is as follows. This process involves the Senior Asset
Accounting User:

Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

Revise Useful
Life

Review the
Fixed Asset
Posted

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Reverse the
Posting if due to
Error

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Impairment of Fixed Asset


Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

Reverse the
Posting if due to
Error

Revise Useful
Life

When an asset has been impaired, the Asset Accounting Senior User is informed to record it
in the asset master record.

In Umoja impairment is considered as an Unplanned Depreciation. Thus the screens in this


section contain Unplanned Depreciation in the header.
Within the Unplanned Depreciation screen, Transaction Types called Special Depreciation
indicate impairment. Thus on the Asset Explorer screen, the user will find the impairment
values in the Special Depreciation line.
Transaction type 620 and 630 are used to record impairment. Transaction 620 relates to assets acquired
in previous calendar year while 630 relates to asset acquired in current calendar year. For example, If an
asset acquired in December 2013 is impaired in January 2014, transaction 620 will be used even though
both December 2013 and January 2014 fall in PK fiscal year.

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Impairment of Fixed Asset


Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

Reverse the
Posting if due to
Error

To post the impairment value, enter


the T-code ABAA. On the Unplanned Depreciation initial screen,
enter the following details:
1 Enter the relevant asset number in the
Asset Number field
2 Enter the relevant asset sub-number
1
in the Asset Sub-Number field if any 2
3 Enter a relevant approval document date
in the Document Date field
4 Enter date that the impairment will be
effective from in the Posting Date field
5 Enter Transaction type:
Assets acquired in the prior year: 620
Assets acquired in the current year: 630
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Revise Useful
Life

3
4

115

Impairment of Fixed Asset


Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

On the next screen, enter the


posting data:
1 Enter the impairment amount in the
Amount Posted field
2 Click the Line Items button. The
impairment amount shows up in this
screen. Note the Transaction Type and
Amount.
3 To post the impairment, click the Save
button. A document number is
generated.

Reverse the
Posting if due to
Error

Revise Useful
Life

There is no workflow in this T-code.

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Impairment of Fixed Asset


Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

Reverse the
Posting if due to
Error

Revise Useful
Life

Using the T-code AW01N, review the


Special depreciation value in the
Asset Explorer.

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Impairment of Fixed Asset


Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

Reverse the
Posting if due to
Error

Revise Useful
Life

If the postings are not correct, the previous posting can be reversed using the T-code AB08.

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Impairment of Fixed Asset


Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

Reverse the
Posting if due to
Error

Revise Useful
Life

The Asset Reviewer revises the estimated useful life of the asset in the asset master record
using the T-code AS02. Click the Depreciation Area tab and update the Useful Life field.

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Impairment of Fixed Asset


Receive
Information on
Impairment

Post
Impairment
Value

Review the
Impaired Value

Reverse the
Posting if due to
Error

Revise Useful
Life

In order for the useful life change affect


prospectively only, a new interval needs to be
created with a start date of the first of the month
in which the new useful life should take effect.
In order to create a new interval, double-click
the useful life field. Click the More Intervals
button, then the Add Interval button.
Insert the interval start date and new useful life. Note
that the remaining useful life doesn't change until
the end of the year.

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Impairment of Fixed Asset


Review the
Fixed Asset
Posted

If the useful life has been


adjusted, use the T-code AW01N
to verify that the Ordinary
depreciation amount is adjusted
based on the change in useful life.

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Activity 1
Transaction Name: Impairment of Assets
Transaction Code: ABAA
Link to the uPerform simulation:
http://unsapuperform.umoja.un.org/gm/folder1.11.2482?originalContext=1.11.2592

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Learning Checkpoint 1
Which of the following events can be considered as an impairment event?
Select all that apply.
A.
B.
C.
D.

A natural disaster
Results from a periodic test or an asset verification exercise
A man-made calamity
An accident

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Learning Checkpoint 1
Which of the following events can be considered as an impairment event?
Select all that apply.
A.
B.
C.
D.

A natural disaster
Results from a periodic test or an asset verification exercise
A man-made calamity
An accident

Option A, B and D are the correct answers. A


natural disaster, accident or results from a periodic
test or asset verification exercise are considered to
be impairment events.

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Module 4 Summary
The key points covered in this module are listed below:
Run the T-code ABAA to post an impairment value

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Module 5 Objectives
After completing this module, you will be able to:
Retire a fixed asset by donation/scrapping and sale

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Asset Accounting: Retirement of Assets

Asset Master Data


Maintenance

Acquisition of Assets

Depreciation of
Assets

Retirement of Assets

Revision of Useful
Life

Transfer of Assets

Impairment of Assets

Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed
out of Umoja. The posting will be made separately into the system as part of another step.
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Retirement of Fixed Assets


The Asset Retirement process involves the
sale, donation or scrapping of a fixed asset.
Some of the key points are as follows:
After the asset has been approved for
retirement, a notification is sent to the
Asset Accounting Senior User
Once notified, the Asset Accounting
Senior User identifies the asset that
needs to be retired in the Accounting
system, the portion of the asset (if partial
disposal) and the effective date of the
transaction (sale, donation or scrapping)

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Retirement of Fixed Assets


Sale: If the retirement is through sale to a
customer (whether on a profit or loss) it is
performed through the Standard Order
process in the Sales and Distribution
module and manually entered in the Fixed
Asset module.
Donation/Scrapping: When assets are being
donated or scrapped, the transaction is
manually entered in the Fixed Asset module
and the system calculates the losses and
posts these entries automatically in the
G/L.
Note: In the interim, Umoja will track only real estate (including Real Estate under
Construction, excluding prefab buildings) and intangible assets.

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Retirement of Fixed Assets: Process


The process to retire assets by donation/scrapping or sale is as follows. This process
involves the Senior Asset Accounting User:

Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

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Review the
Fixed Asset
Posted

131

Retire Fixed Asset by Scrapping or Donation


If the asset retirement is through scrapping of the fixed asset (retirement at NBV), the
entire NBV as on the date of the scrapping is recognized as a loss.
An example of the accounting entry for the Asset donation for an asset which cost
$100 and with a NBV of $8 would be as follows:
Debit (+)
Loss on Asset Scrapping

$8.00

Accumulated Depreciation

$92.00

Credit (-)

$100.00

Asset Cost

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Retire Fixed Asset by Scrapping or Donation


If the asset retirement is through donation to another UN agency, a host country or
other donation recipient, the accounting entries are similar to the scrapping of a fixed
asset at NBV, save for the G/L accounts which will be different.

An example of the accounting entry in the Fixed Asset module for the asset donation for
an asset which costs $100 and with a NBV of $92 would appear as follows:
Debit (+)
Loss on Asset Donation

$8.00

Accumulated Depreciation

$92.00

Credit (-)

$100.00

Asset Cost

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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

When an asset has been retired, the Asset


Accounting Senior User is informed to take
action.

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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

To retire fixed asset by scrapping


or donation, use the T-code
ABAVN.
1 Enter the asset number in the
Asset field
2 Click the Transaction Data tab.
1
Enter the approval date in
the Document Date field 2
Enter the date in the Posting
Date field
Enter the posting date in the
Asset Value Date field
Enter relevant text in the
Text field and press Enter
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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Reverse the
Posting if due
to Error

Post
Retirement

3 Click the Additional Details tab. Enter the


1.
following details and press Enter:
Enter the posting period in the Posting
Period field
Enter the transaction type in the
Transaction Type field

Review the
Fixed Asset
Posted

Note: For scrapping use 200 for prior calendar


year acquisition; 250 for current calendar-year
acquisition.
For donation use Z20 for prior calendar year
acquisition and Z25 for current calendar-year
acquisition

Enter the reference number in the


Reference field
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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Post
Retirement

Review the
Fixed Asset
Posted

Reverse the
Posting if due
to Error

4 Click the Simulate button to run the


1.
post as a simulation
5 Click the Save button to run the
2.
transaction when it is ready to post. At
this point, a document number is
generated.

5
4

There is no workflow for this transaction.

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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

If the postings are not


correct, the previous
posting needs to be
reversed using the Tcode AB08 to find and
reverse any
transactions such
impairment, transfer or
retirement.

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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

Use the T-code AW01N to


review the asset value.

Double-click a transaction to
review it.

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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

Review the accounting documents. Alternatively, this screen can also be accessed using
the T-code FB03 and the document number generated.

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Retire Fixed Asset by Scrapping or Donation


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

Click the General Ledger button to view the G/L account documents.

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Retire Fixed Asset by Sale


If the retirement is a sale with a profit or loss, the asset sale would be performed
through the Standard Order process in the Sales and Distribution module.

In the transactional screen in Umoja, the Sales Processor enters the amount of
consideration that will be received on the sale of the asset. The system then posts the
debit to the customer account (receivable). The entry is balanced to default suspense
account (69101020), as the Sales and Distribution module cannot directly access the
individual records of the Fixed Asset module.
As shown below, the accounting entry is balanced to default the suspense account, as
the Sales and Distribution module cannot directly access the individual records of the
Fixed Asset module.
Debit (+)
Customer

Credit (-)

$5.00

Fixed Asset Sale


Suspense (Balance Sheet)

$5.00

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Retire Fixed Asset by Sale


Subsequently, the Asset Accounting Senior User records the reduction of the assets
against the suspense account (69101020). The system automatically calculates the
gains/losses.
Accordingly, the accounting entry (net effect) for an asset, which costs $100 and with
a NBV of $8 and sold for $5 would be as follows:
Debit (+)
Fixed Asset Sale Suspense
(Balance Sheet)

$5.00

Accumulated Depreciation

$92.00

Loss on Sale (Retirement)

$3.00

Credit (-)

$100.00

Asset Cost

If the asset was sold for $15, then a credit entry (Gain of $7) would be posted instead of
a loss.
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Retire Fixed Asset by Sale


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

When an asset has been retired, the Asset


Accounting Senior User is informed to take
action.

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Retire Fixed Asset by Sale


Receiving
Information
on Retirement

Post
Retirement

To retire fixed asset by sale, use the


T-code ABAON.
1 Click the Transaction Data tab.
Enter the following details and
press Enter:
Enter the date in the
Document Date field
Enter the date in the Posting
Date field
Enter the revenue amount in
the Manual Revenue field

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

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Retire Fixed Asset by Sale


Receiving
Information
on Retirement

Post
Retirement

2 Click the Simulate button to run the


1.
post as a simulation
3 Click the Save button to run the
2.
transaction when it is ready to post

Review the
Fixed Asset
Posted

Reverse the
Posting if due
to Error

3
2

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Retire Fixed Asset by Sale


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

If the postings are not correct, the previous posting needs to be reversed using the T-code
AB08 to find and reverse any transactions such impairment, transfer, retirement.

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Retire Fixed Asset by Sale


Receiving
Information
on Retirement

Post
Retirement

Reverse the
Posting if due
to Error

Review the
Fixed Asset
Posted

Use the T-code AW01N to


review the asset value. Double-click
the transaction to review the
asset accounting and G/L documents.

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Activity 1
Transaction Name: Retirement of Assets by Scrapping
Transaction Code: ABAVN
Link to the uPerform simulation:
http://unsapuperform.umoja.un.org/gm/folder1.11.2470?originalContext=1.11.2592

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Learning Checkpoint 1
In which of the following cases are accounting entries considered similar to the
scrapping of a fixed asset at NBV?
Select all that apply.
A.
B.
C.
D.

If the asset retirement is through donation to another UN agency


If the asset retirement is through donation to a host country
If the asset retirement is not through donation to a host country
If the asset retirement is not through donation to another UN agency

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Learning Checkpoint 1
In which of the following cases are accounting entries considered similar to the
scrapping of a fixed asset at NBV?
Select all that apply.
A.
B.
C.
D.

If the asset retirement is through donation to another UN agency


If the asset retirement is through donation to a host country
If the asset retirement is not through donation to a host country
If the asset retirement is not through donation to another UN agency

Option A and B are the correct answers. If the


asset retirement is through donation to another
UN agency or a host country, the accounting
entries are similar to the scrapping of a fixed asset
at NBV.

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Module 5 Summary
The key points covered in this module are listed below:
Retirement of fixed assets can be by donation or scrapping or by sale
To retire fixed asset by scrapping or donation, use the T-code ABAVN

To retire fixed asset by sale, use the T-code ABAON

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Asset Accounting: Transfer of Assets

Asset Master Data


Maintenance

Acquisition of Assets

Depreciation of
Assets

Retirement of Assets

Revision of Useful
Life

Transfer of Assets

Impairment of Assets

Note: While verification of assets is a critical step in the lifetime of an asset, it is a step performed
out of Umoja. The posting will be made separately into the system as part of another step.
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Module 6 Objectives
After completing this module, you will be able to:
Transfer a fixed asset

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Transfer Fixed Assets


The Asset Transfer process involves physical movement of fixed assets, or the
transfer of ownership for real estate and intangible assets. In UN, transfer of
assets involves the following scenarios:
Transfer of assets from one mission to another mission
Transfer of assets between grants
Transfer of assets between Peacekeeping and Regular Budget Projects

Asset Accounting Senior User

Receives a
notification on
completion of a
transfer

Identifies assets
that have been
transferred

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Accounting Entries
Accounting documents are created when the transfer crosses funds, business areas,
segments or grants. For transfers across funds, business areas, segments or grants, a
Financial Accounting posting will be automatically created to record the transfer at NBV
only. The receiving fund is charged any future depreciation expense. The accounting
entries for the transfer of assets would appear as follows:
An example of accounting entry in the transferors books:
Debit (+)
Transfer between funds fixed assets out (Expense)

$70.00

Accumulated Depreciation

$30.00

Asset Cost

Credit (-)

$100.00

An example of accounting entry in the transferees books:


Debit (+)

Credit (-)

$100.00

Asset (new)
Accumulated Depreciation

$30.00

Transfer between funds fixed assets in (Revenue)

$70.00

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Transfer of Assets: Process


The process to transfer assets is as follows. This process involves the Senior Asset
Accounting User:

Receive
Information on
Transfer

Create Asset
and Post
Transfer

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New Asset
Posted

158

Transfer of Assets: Receive Information


Receive
Information on
Transfer

Create Asset
and Post
Transfer

Review the
New Asset
Posted

The Asset Accounting Senior User:


Receives a notification informing them of the
completion of the physical transfer, asset details
and the dates of the asset transfer
Identifies the assets that have been transferred
Creates a new asset master record for the
transferees books. The new asset master will
contain the new description, location, cost center
and fund information. The new asset master will
also store the reference of the original asset from
the transferors books

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Transfer of Assets: Enter Asset Number


Receive
Information on
Transfer

Create Asset
and Post
Transfer

Step 2: The new Asset Master Record can be


created directly on the Transfer screen. To
transfer a fixed asset, enter the T-code
ABUMN.
1 Enter the asset number in the Asset
field
2 Click the Transaction Data tab

Review the
New Asset
Posted

1
2

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Transfer of Assets: Create Asset


Receive
Information on
Transfer

Create Asset
and Post
Transfer

Review the
New Asset
Posted

In the Transaction Data tab enter the


following details and press Enter:
1 Enter a relevant document date in the
Document Date field
2 Enter a transfer recognized date in
the Posting Date field

If a new Asset Master Record has


been created, select Exiting Asset
and enter the asset number

If a new Asset Master Record has not


been created, select New Asset and
click the Master Data button

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2

3
4

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Transfer of Assets: Create Asset


Receive
Information on
Transfer

Create Asset
and Post
Transfer

Review the
New Asset
Posted

When creating a new Master Data from


the Transfer screen, most information is
prepopulated based on existing asset.
The user can click the Additional Data
button to go to the change master data
screen. This is the same as using T-code
AS01 (to create master data record).

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Transfer of Assets: Create Asset


Receive
Information on
Transfer

Create Asset
and Post
Transfer

Review the
New Asset
Posted

The only information that needs to be


entered are: fund, grant and cost center.
All other information will be derived.
Click the Save icon to save the record.
Once this record is saved, a new asset
master number is created by the system.

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Transfer of Assets: Post Transfer


Receive
Information on
Transfer

Create Asset
and Post
Transfer

To transfer a fixed asset:


1 Click the Additional Details tab
2 Enter the Posting Period
3 Enter Z1 as the budget relevant value and Z2
as the non-budget relevant value in the
Transfer Variant field
4 Click the Simulate button to run the post as a
simulation. It is possible to change the layout
on the next screen to include the Fund
information

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Review the
New Asset
Posted

1
2

164

Transfer of Assets: Review the New Asset Posted


Receive
Information on
Transfer

Create Asset
and Post
Transfer

Review the
New Asset
Posted

When ready to post, click the Save button to run the transaction. The new asset master
record can be checked using the T-code AS03.

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Transfer of Assets: Review the New Asset Posted


Receive
Information on
Transfer

Create Asset
and Post
Transfer

Review the
New Asset
Posted

Click the Other Ledger button and select FM Document to verify the entry for Fund
balancing.

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Activity 1
Transaction Name: Transfer of Assets
Transaction Code: ABUMN
Link to the uPerform simulation:
http://unsapuperform.umoja.un.org/gm/folder1.11.2474?originalContext=1.11.2592

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Learning Checkpoint 1
In UN, transfer of assets involves which of the following scenarios?
Select the correct option.
A.
B.
C.
D.

Transfer of assets from one mission project to another project of the same mission
Transfer of assets between multiple missions
Transfer of assets between Peacekeeping and Regular Budget Projects
Partial transfer of assets by proportion of the acquisition cost

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Learning Checkpoint 1
In UN, transfer of assets involves which of the following scenarios?
Select the correct option.
A.
B.
C.
D.

Transfer of assets from one mission project to another project of the same mission
Transfer of assets between multiple missions
Transfer of assets between Peacekeeping and Regular Budget Projects
Partial transfer of assets by proportion of the acquisition cost

Option C is the correct answer. In UN, transfer of


assets involves transfer between Peacekeeping and
Regular Budget Projects.

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Module 6 Summary
The key points covered in this module are listed below:
The Asset Transfer process involves physical movement of fixed assets, or the
transfer of ownership for real estate and intangible assets

Accounting documents are created when the transfer crosses funds, business
areas, segments or grants
The new asset master will contain the new description, location, cost center and
fund information. The new asset master will also store the reference of the
original asset from the transferors books
When creating a new Master Data from the Transfer screen, most information is
prepopulated based on existing asset
To transfer a fixed asset, use the T-code ABUMN

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation of Assets

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Module 7 Objectives
After completing this module, you will be able to:
Run the reports related to Asset Accounting

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Reports
The reports related to Asset Accounting are below:
Asset Balances
Asset History Sheet
Ordinary Depreciation

Unplanned Depreciation
Changes to Asset Master Records
Asset Acquisitions, Retirements, Transfers, Transactions
Asset Master Validation

Note: The selection of data chosen for each report can be


set in the initial screen.
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Asset Balances Report


This report displays the values of all assets in a depreciation area.
The user can filter and customize this report based on how he or she would like to
view assets. To generate this report, use the T-code S_ALR_87011963.

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Asset History Sheet


This report is the most important and most comprehensive asset report for the yearend closing or for an interim financial statement.

This report contains information from opening balances to the end of the
year. To generate this report, use the T-code S_ALR_87011990.

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Ordinary Depreciation
This report displays the value of ordinary depreciation of assets for a fiscal year.
To generate this report, use the T-code S_ALR_87012006.

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Unplanned Depreciation
This report displays the value of unplanned depreciation of assets for a fiscal year.
To generate this report, use the T-code S_ALR_87012008.

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Changes to Asset Master Records


This report lists the changes to the Asset Master Record.
To find the list of users who modified an asset master record, run the T-code
AS03. Click the Environnent menu, Change documents and On asset.

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Asset Transactions
The reports below list different transactions such as Asset Acquisitions, Retirements,
Transfers.

Use the following T-codes for asset transaction reports:

All Asset Transactions: S_ALR_87012048


Asset Acquisitions: S_ALR_87012050
Asset Retirements: S_ALR_87012052
Asset Transfers: S_ALR_87012054

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Asset Transactions
In this example, we have used the T-code S_ALR_87012050 to display the Asset
Acquisitions report.

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Asset Master Validation


This report displays all relevant asset master fields, including linkages to real estate
objects for validation.

To view all UN assets in the Umoja ECC system, open the Asset Master
Validation Report using the T-code ZAAVALAS. This displays all relevant
asset master fields, including linkages to real estate objects for validation.

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Learning Checkpoint 1
Which of the following reports are correctly defined?
Select all that apply.
A.
B.
C.
D.

Asset Balances Report: Displays the values of all assets in a depreciation area.
Unplanned Depreciation Report: Displays the value of ordinary depreciation of
assets for a fiscal year.
Asset History Sheet: Displays the changes to asset master records.
Asset Master Validation: Displays all relevant asset master fields, including linkages
to real estate objects for validation.

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Learning Checkpoint 1
Which of the following reports are correctly defined?
Select all that apply.
A.
B.
C.
D.

Asset Balances Report: Displays the values of all assets in a depreciation area.
Unplanned Depreciation Report: Displays the value of ordinary depreciation of
assets for a fiscal year.
Asset History Sheet: Displays the changes to asset master records.
Asset Master Validation: Displays all relevant asset master fields, including
linkages to real estate objects for validation.

Option A and C are the correct options.


Unplanned Depreciation Report displays the value
of unplanned depreciation of assets for a fiscal
year. Asset History Sheet is the most important
and most comprehensive asset report for the yearend closing or for an interim financial statement.

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Module 7 Summary
The key points covered in this module are listed below:
To generate an Asset Balances Report, use the T-code S_ALR_87011963
To generate an Asset History Sheet, use the T-code S_ALR_87011990

To generate an Ordinary Depreciation report, use the T-code S_ALR_87012006


To generate an Unplanned Depreciation report, use the T-code S_ALR_87012008
To view changes to Asset Master Records, use the T-code AS03
To view Asset Transactions reports, use the T-codes S_ALR_87012048,
S_ALR_87012050, S_ALR_87012052 and S_ALR_87012054
To generate an Asset Master Validation report, use the T-code ZAAVALAS

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Course Summary
The key points covered in this course are listed below:
Umoja Asset Accounting is an interim process applicable to Peacekeeping and
Special Political Missions that continue to use Galileo to manage most fixed assets

Asset Accounting always refers to the fiscal year


Asset Accounting encompasses the entire lifetime of the asset. It begins with the
maintenance of the asset master data. The asset lifetime is accounted from the
initial acquisition through its retirement or transfer
A depreciation run can be performed in four modes including Re-Run, Planned
Posting Run, Unplanned Posting Run and Restart Run
Ongoing impairment reviews occur when there is an impairment event and during
asset verification exercises
Fixed assets can be retired through scrapping/donation or sale
Assets that have been transferred need to be identified and a
new asset master record is created for the transferees books
A range of reports associated with Asset Accounting can be run
in Umoja

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Course Assessment
Now that you have completed all the modules in this course, you can test your
knowledge by completing the Course Assessment.

To receive credit for completing this course, you must pass this assessment with a
minimum score of 90%.
To complete the assessment you must return to the Learning Management System:

1. Log into Inspira


2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section

4. Click the Start link of the course assessment


5. Click the Submit button once you have completed the assessment

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Agenda
Course Introduction
Module 1: Umoja Asset Accounting Review
Module 2: Acquisition of Fixed Assets
Module 3: Depreciation

Module 4: Impairment of Fixed Asset


Module 5: Retirement of Fixed Asset
Module 6: Transfer of Fixed Asset
Module 7: Asset Accounting Reports
Course Summary

Course Assessment
Course Survey
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Course Survey
Your feedback is important to the continuous improvement of our training program.
Please complete the evaluation for this course using the following steps:
1. Log into Inspira
2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning
3. Search for the name of the course under the My Learning Activities section

4. Click the Start link of the course survey


5. Click the Submit button once you have completed the course survey

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Congratulations! You have successfully completed the


Umoja Asset Accounting Process course.

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