End User – Presentation

Investment Management

FICO

FICO Team
Objective

 This presentation is to give an overview of

Investment Management process

 Target audience
End Users of Investment Planner

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Scope

 Investment Programme – ID

 Appropriation Request

 Investment measure

 Budget

 Information system

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Scope

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Investment Programme - ID

Investment Programme
Positions

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Investment Programme-ID

The investment program is a hierarchy of program positions,

which can be graphically maintained, within a framework
defined by the program definition.

Investment measures can be assigned to the lowest-level

program positions in the hierarchy.

When you create the investment program definition, you enter a

program type. The program type specifies the budget profile
and plan profile, and whether budget distribution is used or not.

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Appropriation Request Process

Appropriation Request Process

Investment Program

Replace the appropriation request

by the measure?

App. Approval Automatic Internal order:

Idea Process Creation Lease
Request
buildings
 "Wishlist"  Documents  Workflow

 Interested  ROI  Classification

People
 Print forms  Roles
 Comments
 Criteria
 Options for
implementation

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Appropriation Request Process

An appropriation request is an idea or wish for carrying out a

measure (such as, an investment, or research and
development), which has to be individually assessed and
approved by one or more positions within an enterprise,
primarily because of the high costs involved.

An investment measure can be created automatically from an

appropriation request.

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Contents of Appropriation request

Create appropriation request type

Set up planning profile for cost and revenue

Define approval workflows

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Appropriation Request Process

Appropriation Requests: Variants

Appropriation request - expanding production facilities

Variant 1: Variant 2: Variant 3:

New construction Rentals Ext. procurement

Benefits State-of-the-art Tax benefits Increased capacity

Assessment Good Satisfactory Not satisfactory

Plan values 5,000,000 3,000,000 1,500,000

Payback period 3 years 2 years 1 year

Investment program
depreciation simulation

 SAP AG 1999

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Appropriation Request – Approval Process

Approving an Appropriation Request

Create and change area menus
Create measure
Define status selection profiles
CREATED

Postpone Request for approval

Work with drilldown reports and forms
TO BE APPROVED REJECTED
Use the summarization
Approve database
Approval workflow

APPROVED

Release

RELEASED MEASURE CREATED

Close measure

CLOSED
Close measure
Delete measure

MARKED FOR DELETION

 SAP AG 1999

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Purpose of Investment measure

Measures can be used for projects that primarily involve costs,

such as research and development projects.

However, measures are most commonly used for processing

capital investments that are not capitalized directly, due to their
extensive proportions or the large percentage of in-house
production involved.

In that case, they are called investment measures and have an

asset under construction in the background.

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Investment Measures

Structure of Investment Measures

Investment
Measure
Purch. orders Order/WBS Element:
Purch. requis.  Budgeting
Invoices  Planning
Int. activity  Actual Values
 Commitments
Down payments
 Availability
Controlling

Asset u.Construction:
 Asset hist. sheet
 Special deprec.
 Invest. support
 Differing APC
valuation
Asset Accounting

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Purpose of Investment measure

Budget Distribution to Measures

Investment Program
Total Capital Investments
Plan Plan Budget Distrib.
Budget 1500 1200 1000 Budget

500 300 600 400 350 400 300

Business Area 1 Business Area 2 Business Area 3

200 100 200 100 90 200 150

Meas. 1 - 10,000 Meas. 10,001- 1 Mio. Meas. > 1 Mio.

80 30 80 40 40 40 20
Plan Budget Distrib. Plan Budget Distrib. Plan Budget Distrib.
Maintenance Order Project 1 Internal Order

20 20
Project 1.1 Project 1.2

 SAP AG 1999

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Budgeting

Budgeting is not possible on appropriation requests. Appropriation

requests allow planning only (costs and revenue). Planned data can be
converted in to budget.
The budget values from the program can be distributed to the assigned
measures. This ensures that the total budget value of the measures is
never higher than the budget value of the program position to which the
measures are assigned.
Distributed values are the sum of the budget values from the next lowest
level.
Budget values from the end node investment program positions are
distributed to the measures assigned to them.
When you use projects, you can budget the assigned WBS element from
the investment program.
You can compare the values of the program and measures in reporting.

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Budgeting

Budgeting is not possible on appropriation requests. Appropriation

requests allow planning only (costs and revenue). Planned data can be
converted in to budget.
The budget values from the program can be distributed to the assigned
measures. This ensures that the total budget value of the measures is
never higher than the budget value of the program position to which the
measures are assigned.
Distributed values are the sum of the budget values from the next lowest
level.
Budget values from the end node investment program positions are
distributed to the measures assigned to them.
When you use projects, you can budget the assigned WBS element from
the investment program.
You can compare the values of the program and measures in reporting.

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Information System

The Information System for Investment Management is

based on drilldown reporting in the System.

When defining drilldowns, you can use characteristics, key

figures and forms. The drilldown outputs interactive lists,
available at various different levels, that you can display
onscreen.

These reports can also be printed, transferred to Excel, or

stored in a file.

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Information System

The Information System for Investment Management is

based on drilldown reporting in the System.

When defining drilldowns, you can use characteristics, key

figures and forms. The drilldown outputs interactive lists,
available at various different levels, that you can display
onscreen.

These reports can also be printed, transferred to Excel, or

stored in a file.

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Project Accountant

Thank You

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