INVESTMENT MANAGEMENT (OVERVIEW)

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Nov 18, 2013 (3 years and 11 months ago)

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INVESTMENT MANAGEMEN
T (OVERVIEW)



Purpose

The
Investment Management

(IM) component provides functions to support the planning, investment, and
financing processes for:




Capital

investments, such as the acquisition of fixed assets as the result of
-
house production or
purchase




Investments in research and development




Projects that fall primarily under overhead, such as continuing education of employees or establishing
new mar
kets




Maintenance programs

The term investment, therefore, is not limited only to investments you capitalize for bookkeeping or tax
purposes. An investment in this context can be any measure that initially causes costs, and that may only
generate revenue

or provide other benefits after a certain time period has elapsed (for example, plant
maintenance projects).

Integration

The investment program and the appropriation request are objects that originate in the IM component. In
order to represent the
measure, the IM component uses internal orders from Overhead Cost Controlling
-

Overhead Orders (CO
-
OM
-
OPA) and Plant Maintenance (PM), as well as work breakdown structure
(WBS) elements from the Project System (PS).

The integration with Asset Accounting (
FI
-
AA) enables you to easily capitalize the costs of internal orders
and WBS elements that require capitalization to a fixed asset. Costs that do not require capitalization can
be settled to cost accounting.

You can post acquisitions to a measure in the Lo
gistics components of the SAP System.


Sub
-
Components of Investment Management and their Integration

The integrated planning process allows you to roll up planned values from appropriation requests and
measures on the investment program to which they are a
ssigned. You carry out budgeting of measures,
on the other hand, from the top down within the investment program.

You can transfer expected depreciation on all planned investments to management accounting in the
form of planned costs.

Features

Investment M
anagement consists of the following components:

Component

Used for…

Investment
Program

… cyclical planning and management of investment budgets
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Appropriation
Requests

… management of the planning and approval phase of investments a
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Investment
Measures

… parallel

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Information
System

… monitoring of the investment, based on plan/actual comparisons, monitoring of
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INVESTMENT PROGRAMS



Purpose

You can use
investment programs as a supplement for any planning for individual measures and for
budgeting in the following areas:




Planning




Administration




Monitoring of a global budget

Investment programs support the annual creation of an investment plan and
budget if these are to be
monitored globally.

You can obtain an overview of planning and budgeting processes in complex enterprise structures for all
investments and large projects of the group, while at the same time maintaining strict budgetary control.

Features

The
Investment Programs

component provides functions for planning and monitoring of investment
budgets encompassing many different measures, on a cyclical basis, of an entire corporate group. You
can benefit from the integration of this component

with the
Investment Measures

and
Appropriation
Requests

components. Measures and appropriation requests can be assigned to investment program
positions. By rolling up their plan values in the investment program, these measures and appropriation
requests a
re integrated in the comprehensive investment planning process. At the same time, you can
budget and oversee the measures using the investment program.

Comprehensive investment programs in the SAP System offer the advantage of their direct integration
with

the individual measures (orders or WBS elements), in contrast to non
-
integrated planning systems.
By means of


this integration, you are quickly made aware if your comprehensive budget is overrun.


You
can also monitor expenses for both external acquisiti
ons as well as internal costs (activity allocation,
overhead).

Appropriation Requests



Purpose

The
Appropriation Requests

component supports the investment process in the phase concerned with
planning and making decisions about investments to be implemented.

Features

In a certain sense, appropriation requests serve a similar function as purchase requisitions and
maintenance
notifications. In the investment process, appropriation requests allow you to represent
investment wishes or research and development ideas in the stages before they are actually implemented
concretely.

You can plan appropriation requests and carry out pr
einvestment analysis for them. In the context of
capital investment planning, appropriation requests make it possible to include planned investments in
cyclical (annual) investment planning using an investment program.

Once the appropriation request has be
en approved, the information can be transferred to the measure
(order or project) that will be used for actually carrying it out.


Appropriation requests


The term investment, in this context, is
not
limited only to capital investments.
You can use
appropriation requests and measures for many different kinds of
activities your enterprise plans, but primarily if the following conditions apply:

You want both separate management accounting, and approval for the activity on
an individual basis, due to it
s scope.

The activity initially causes costs and may only generate revenue or provide
other benefits after a certain time period has elapsed.

Measures (Orders/Projects)



Purpose

The
Measures

component enables you to manage the accounting and controlling a
spects of either:



Measures that your enterprise undertakes for the purpose of producing long
-
term fixed assets for
its own use, and which have to be entered in the balance sheet as assets under construction



Other measures, for which you want to plan,
collect and oversee costs

Features

Measures are represented in the system either by internal orders or WBS (work breakdown structure)
elements, possibly with an asset under construction (AuC) assigned to them.

The
Measures

component augments the functions
of Overhead Cost Controlling
-

Overhead Orders (CO
-
OM
-
OPA) and Project System (PS) by integrating them further with the Asset Accounting (FI
-
AA)
component

IM Information System



Purpose

The Investment Management (IM) component has an Information System to

assist in planning and
monitoring investment programs in your enterprise.

Features

The Information System for investment programs contains drilldown reports for the analysis of plan,
budget and actual values in investment programs and the measures and app
ropriation requests that
belong to them (reports from investment program viewpoint). In addition, there are reports for evaluating
master data and plan values of appropriation requests, independent of the investment program (reports
from appropriation requ
est viewpoint).

For reporting on measures, the Information Systems of CO
-

Overhead Cost Controlling (CO
-
OM
-
OPA)
and Project System (PS) are integrated in the IM Information System. For more information, see the
documentation for these components.

From t
he perspective of assets, there are reports for the depreciation forecast, and those that show the
origin of debits that were settled to assets. The depreciation forecast in the IM Information System
integrates Asset Accounting and Investment Management. A
s a result, it is possible to include already
capitalized assets, along with planned investments, in the depreciation forecast.




SAP : Investment Management (IM) Overview

Create an Investment Program :

Transaction Code: IM01

The investment program can be

used to augment planning and budgeting at the level of the individual
measure by offering planning, budgeting and monitoring of a comprehensive budget.

Investment programs are helpful to enterprises that create an investment plan and a budget annually,
an
d wish to monitor the budget as a whole, rather than just at the level of individual measures.


Using investment programs, you can obtain an overview of planning and budgeting processes in
complex enterprise structures for all investments and large project
s of the group, while at the same
time maintaining strict budgetary control.

Create Top Program Position :

Transaction Code: IM11

The top program position is the highest level in Investment Management which is company code
specific, and it is the highest
level that can have a budget.



Determine the SAP Profit Center prior to creating the investment program.



Determine the SAP Cost Center relevant for overall project management.


Change Investment Program Structure:

Transaction Code: IM22

This change in s
tructure is required to create the individual program positions.


These program
positions are the equivalent of the line items in the legacy system.



Determine the SAP Profit Center responsible for the program position prior to changing the program
struct
ure.



Determine the SAP Cost Center relevant for the program position (this can be different from the Cost
Center used in the top program position).


Edit Original Budget:

Transaction Code: IM35

This transaction will establish the budget in SAP for a give
n investment program and the relevant
program positions.


The Top Program Position is the highest level where a budget can be entered


the
budgeted amounts are pushed down to the lower levels of management, i.e. the Investment Program
Positions and the In
ternal Orders.


This type of budgeting is referred to as "Top
-
Down" budgeting.



Know the budgeted amounts for the program prior to executing the transaction.

Change Program Planning:

Transaction Code: IM32

The instruction will walk the user through steps
required to create a budget Supplement



Original Budget



Increased budget is required but original budget needs to remain unchanged

Create an Internal Order:

Transaction Code: KO01 / KO02 / KO03

steps required to create an Internal Order.



Determine the

program type and order type prior to creating the internal order



An internal order already existing can be referenced to minimize data input


Budget Distribution:

Transaction Code: IM52


steps required to distribute the budget to measures (Internal Orde
rs)

Create Overall Budget planning for IO:

Transaction Code: KO12 / KO13

steps required to plan the budget of an Internal Order.



Determine the program type and order type prior to creating the internal order



An

internal order already existing can be referenced to minimize data input


Display internal Order Actual Line Item:

Transaction Code: KOB1

steps required to display an Internal Order Line Item.

Close Old Approval Year:

Transaction Code: IM27_CLOSE

steps

required to close an old approval year




Existing Investment Programs



A new approval year must have been opened prior to closing the old approval year



Selection of orders can be filtered based on the order status

Open New Approval Year

:

Transaction
Code: IM27

steps required to open a new approval year

Budget Carry Forward

:

Transaction Code: KOCF

steps required to carry forward budgets

Prerequisites



An investment program with budget values


IM Reporting

:

Transaction Code: S_ALR_87012824 &

S_ALR_87
012813

steps required to run Investment Management Reports. This report is a drill
-
down report. By double
-
clicking on any line item it takes the user one level lower.



Reports can also be executed from within each SAP module.