RD.050 BUSINESS REQUIREMENTS SCENARIOS FOR CORE BUSINESS PROCESS

ORAERP INC.Fixed Assets

Author: Creation Date: 02-June-13Last Updated: 02-June-13Document Ref: RD050_FAVersion: 1.0 Final

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Date Author Version

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29-May-13

1.0 No Previous Document

References

Document Name Ref.

MOM & AS-IS flow charts recorded

Accounting policies and procedure manual by D&T

Business plans for unbundled companies by D&T

Proposed Organizational Chart for 10 companies

Sector Law

Tender specification requirements (excel sheets)

Reviewers

Name Position

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DOCUMENT CONTROL...................................................................................................2

1 BUSINESS PROCESS IDENTIFICATION...................................................................41.1 Fixed Assets structure (FA001).................................................................5

1.2 Asset Addition (FA002).............................................................................6

1.3 Asset Depreciation (FA003)......................................................................8

1.4 Asset Transfer (FA004)...........................................................................10

1.5 Asset Retirement (FA005)......................................................................11

1.6 CIP Capitalization (FA006)......................................................................13

1.7 Revaluation (FA007)...............................................................................14

1.8 Asset Inquiry (FA008).............................................................................15

2 FIXED ASSETS PROCESS FLOW DIAGRAMS.........................................................172.1 Fixed Assets Configuration.....................................................................18

2.2 Mass Additions Process Flow..................................................................19

2.3 Prepare Mass Additions Process.............................................................20

2.4 Post Mass Additions Process...................................................................21

2.5 Asset Retirement....................................................................................22

2.6 Depreciation and Month end Process.....................................................23

1. 3. OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE.....................................24...............................................................................................................................

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Objectives

The objective of this document is to outline the Business Requirements, in as much detail as possible, related to General Ledger business processes in ORAERP COM INC, Abu Dhabi, to facilitate implementation of Oracle General Ledger.BASIC GUIDELINES TOWARDS FINALISATION OF BUSINESS REQUIREMENTS/CURRENT BUSINESS BASELINE DOCUMENT SHALL BE TO ENSURE AN EFFICIENT, SMOOTH AND EFFECTIVE IMPLEMENTATION, BY OBSERVING THE FOLLOWING:1. The objective is to utilize to the best possible extent, the flexibility and facilities of Oracle General Ledger.2. Flexibility, therefore, will be the norm and will be ‘Built – In’ at every stage to the best possible extent, based on available current information on the Business Processes given by the users.3. Reduction of the gaps will be ensured as far as possible.

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ScopeThe scope of this study is limited to the functions pertaining to Fixed Assets based on the Business Requirements information provided by ORAERP COM INC.The focus of the study and this document is to identify and outline the processes involving the management of the Fixed Assets functions in the Oracle Application.Business requirements InformationA combination of the following methods were used for collecting data on current business scenario and future requirement for the 10 new companies-

Standard questionnaire based discussions with assets and stores departments on requirement of standard functions, special issues

Visit to all all major stores(Ghubrah, Rusail, Wadi Jizzi and Azaibah) and study of all processes, procedure, documents

Overview of current IT systems being used

Current forms and reports used for purchasing, contracts and inventory functions

Document review of proposed Business plans, Statement of Accounting policies and procedures by Deloitte & Touche with reference to inventory & purchasing function

(SAPP 3 & 12)

Study of proposed draft organization structure for the 10 companies and sector law

Information collected from Function Heads and their team on various dates during the Requirements Analysis in Jan 2003, through meetings and discussions at various locations. Discussions with user departments like Services, Generation, T&C, Projects etc

Discussions with General Managers of new companies.

Validation of requirements specified in the tender documents

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AS-IS Processes

Based on above and various Minutes of Meetings all the ‘AS-IS’ processes as understood were drawn.

TO-BE Processes

The current business scenario has limited application and usefulness and requirement analysis has to be primarily evolved using available documents, requirements communicated through various discussions on the future vision, policies and procedures for the new companies.

The following inputs were considered for the design of TO-BE processes-

Proposed organization structure

D&T policies to the extent applicable to business processes

Best practices as per Oracle ERP standard processes

Elements of Current processes only to the extent applicable in future scenario

1.1 Fixed Assets structure (FA001)

Process: ADCB Fixed Asset structure Business Function: Fixed Assets structure Date: June-02-2013

Mapping Team: ORAERP COM INC Process Owner: Finance Team

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Librarian: Priority (H, M, L): High

Core (Y/N)Yes

Process Number: FA001 Description: This process explains the Fixed Assets structure.

Assumptions ADCB maintains the assets at operating unit level/Legal Entity Level

Event Description:This process is triggered if we want to capture the fixed assets details

Number:FA.001 Type: Master Source Agent: Finance Team

Mechanisms: System Assisted

Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA001.01

ADCB will have multiple Corporate Asset Books basing on the business unit

Internal – System Assisted

Asset Book One Corporate assets book is created

Finance Team

Active

FA001.02

Asset will be categorized into Company, Major Category and Minor Category. This division will be based on the subsidiary company and asset type

Internal – System Assisted

Asset Addition

Categorization of Asset

Finance Team

Active

FA001.03

Asset will be located based on Company, Branch, Location, Sub-Location, Department and cost centre.

Internal – System Assisted

Asset Addition

Location of asset details

Finance Team

Active

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

(Fro instance)

1.2 Asset Addition (FA002)

Process: Asset Addition Business Function: Fixed Assets Date: June-02-2013

Mapping Team: ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): High

Core (Y/N)Yes

Process Number: FA002 Description: This process explains the Procurement of Fixed Assets and addition of assets in FA module

Assumptions ADBC adds does miscellaneous transactions like transfer of assets from one location to another location, transfers from Head Office to sites etc.. and manual additions if found in the reconditions

Event Description: This process is triggered if we want to transfer from one location to another location/ manual additions, initial data migrations

Number:FA.002 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA002.01 Raise a Purchase Order for purchase of Fixed Assets

Internal – System Assisted

Asset Addition

Purchase Order issued for required asset.

Purchase Team

Active

FA002.02 Receive the Asset from the Vendor. Assign Asset Number and Tag number.

Internal – System Assisted

Asset Addition

Material Received Note

Purchase Team

Active

FA002.03 Receive the Invoice from the Vendor Manual Asset Addition

Supplier Invoice ready for entry

Finance Team

Active

FA002.04 Record the Supplier invoice into the System by matching to Purchase Order / Receipt

Internal – System Assisted

Asset Addition

Invoice accounting

Finance Team

Active

FA002.05 Validate the Invoice into the system. Create Accounting and approve the invoice for payment

Internal – System Assisted

Asset Addition

Accrual of Liability

Finance Team

Active

FA002.06 Issue the payment for the Invoice amount as per payment terms

Internal – System Assisted

Asset Addition

Invoice Payment Finance Team

Active

FA002.07 Transfer the AP data to GL Internal – System Assisted

Asset Addition

Creating Accounting Entries into GL

Finance Team

Active

FA002.08 Transfer the Asset Details into the Fixed Assets System

Internal – System Assisted

Asset Addition

Creation of Asset Record into the FA System

Finance Team

Active

FA002.09 Create Asset in the Fixed Asset through Prepare Mass Additions.

Internal – System Assisted

Asset Addition

Asset creation Finance Team

Active

FA002.10 Identify whether the asset is Internal – System Asset Type of Asset Finance ActiveGE Internal

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

Capitalization asset or CIP asset. Assisted Addition Team

FA002.11 Identify the Employee to which the asset would be attached.

Internal – System Assisted

Asset Addition

Asset is created and asset id is generated

Finance Team

Active

FA002.12 System should generate asset number automatically.

Internal – System Assisted

Asset Addition

Asset is created and asset number is generated

Finance Team

Active

FA002.13 Create Accounting and Transfer to GL. Internal – System Assisted

Asset Addition

Accounting is created

Finance Team

Active

FA002.14 System should allow to group assets as parent and child.

Internal – System Assisted

Asset Addition

Grouping of Assets

Finance Team

Active

FA002.15 System should allow adding additional asset cost to an existing asset.

Internal – System Assisted

Asset Addition

Adding asset cost to an existing asset.

Finance Team

Active

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1.3 Asset Depreciation (FA003)

Process: Asset Depreciation Business Function: Fixed Assets Date: June-2-2013

Mapping Team: ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N)Yes

Process Number: FA003 Description: Charge Depreciation to the Assets

Assumptions Depreciation is charged to the assets

Event Description: This process is triggered when the asset is capitalized

Number:FA.003 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA003.01 ADBC follows monthly depreciation calendar

Internal – Manual Asset Depreciation

Calendar Finance Team

Active

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA003.02 Run Depreciation for the period. Internal – System Assisted

Asset Depreciation

Depreciation amount calculated by the system

Finance Team

Active

FA003.03 ADBC follows Straight/Dimension Line depreciation method for Corporate Book.

Internal – System Assisted

Asset Depreciation

Depreciation amount calculated by the system based on Depreciation method.

Finance Team

Active

FA003.05 Verify the depreciation calculated by the system.

Internal – Manual Asset Depreciation

Verify the depreciation amount calculated by system and do the correction if any

Finance Team

Active

FA003.06 If there are any changes to be done to Asset book like addition/retirement, after running the depreciation and verification, the changes can be made and run the depreciation once again. The previous run of depreciation automatically rolled back by the system.

Internal – System Assisted

Asset Depreciation

Verify the depreciation amount calculated by system and do the correction if any

Finance Team

Active

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA003.07 Transfer and Post the Journal entries into General Ledger

Internal –System Assisted

Asset Depreciation

Depreciation entries generated and posted to General Ledger

Finance Team

Active

FA003.08 System should allow exclude/suspend certain assets from depreciation cycle for the month.

Internal –System Assisted

Asset Depreciation

Depreciation entries generated and posted to General Ledger excluding certain assets.

Finance Team

Active

1.4 Asset Transfer (FA004)

Process: Asset Transfer Business Function: Fixed Assets Date: June.02.2013

Mapping Team: ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N)

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Yes

Process Number: FA004

Description: Track the movement of assets within the organization from a place to place or person to person or a category to category

Assumptions All the movements of assets within ADBC is tracked and recorded.

Event Description: This process is triggered when the asset is transferred from location to another or between companies etc..

Number:FA.004 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA004.01 System should allow Reclassification of Asset from one category to another category

Internal – System Assisted

Asset Reclassification

Reclassification of Asset

Finance Team

Active

FA004.02 System should allow Transfer / Move / Relocate the Asset from a Person / Location / Cost Center to another Person / Location / Cost

Internal – System Assisted

Asset Transfer Transfer of Asset

Finance Team

Active

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

Center

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1.5 Asset Retirement (FA005)

Process: Asset Retirement Business Function: Fixed Assets Date: June-02-2013

Mapping Team: ORAERP COM INC Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N)Yes

Process Number: FA005 Description: Retire/remove the assets from the system which are retired by selling or scraping or whose useful life is completed

Assumptions Asset life is over

Event Description:When the assets life is completed and can’t be used anymore/ damaged/ theft...

Number:FA.005 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA005.01

Identify the Assets retired in the current month due to end of useful life / theft / sale.

Internal – Manual Asset Retirement

Assets are identified for retire from the

Finance Team

Active

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

system

FA005.02

Retire the Asset from the system after entering the date of removal, reason , cost retired, proceeds of sale, cost of removal etc.

Internal – System Assisted

Asset Retirement

Assets are retired from the system

Finance Team

Active

FA005.03

ADCB does not calculate depreciation for the month in which the asset is retired.

Internal – System Assisted

Asset Retirement

Depreciation calculated the disposal of the asset.

Finance Team

Active

FA005.04

System should calculate Gain / Loss on disposal of Asset.

Internal – System Assisted

Asset Retirement

Gain or Loss calculated on the disposal of the asset.

Finance Team

Active

FA005.05

Create Journal Entries for the retirement of the Asset and post it to General Ledger.

Internal – System Assisted

Asset Retirement

Records the Journal Entries into System

Finance Team

Active

1.6 CIP Capitalization (FA006)

Process: CIP Capitalization Business Function: Fixed Assets Date: August 26, 2010

Mapping Team: Wipro Team Process Owner: Finance Team

Librarian:NASS Project Manager

Priority (H, M, L): High

Core (Y/N)Yes

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Process Number: FA006 Description: Capitalization of CIP assets when the assets are ready for use.

Assumptions NASS has the CIP assets.

Event Description:This process is triggered when the asset is constructed fully and want to start taking the depreciation

Number:FA.006 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA006.01

Identify the CIP Assets that are to be capitalized

Internal – Manual CIP Capitalization

Assets are identified for capitalization

Finance Team

Active

FA006.02

Query the identified asset and enter the date of capitalization

Internal – System Assisted

CIP Capitalization

Assets are capitalized

Finance Team

Active

FA006.03

System should be able to generate an CIP Assets ageing report.

Internal – System Assisted

CIP Ageing report

CIP Ageing report generated

Finance Team

Active

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1.7 Asset Inquiry (FA008)

Process: Asset Enquiry Business Function: Fixed Assets Date: June-2-2013

Mapping Team: ORAERP COM INC Process Owner: Finance Team

Librarian: Priority (H, M, L): High

Core (Y/N)Yes

Process Number: FA007 Description: This process explains the enquiry of existing Assets

Assumptions Check the details

Event Description:When the user wants to know the details of the assets like cost, acc. Depreciation, depreciation reserve…

Number:FA.007 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

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Process ID # Description Type

ElementaryBusiness Function

Result Agent Status

FA008.01

Enter enquiry criteria in terms of Asset detail /Books/assignment etc

Internal – System Assisted

Asset Enquiry Criteria entered to query the assets

Finance Team

Active

FA008.02

Listing Assets basic information Internal – System Assisted

Assets Enquiry Assets details are listed based on entered criteria

Finance Team

Active

FA008.03

Asset assignments enquiry, employee and location

Internal – System Assisted

Asset assignment details enquiry

Asset assignment details are listed

Finance Team

Active

FA008.04

Asset source line enquiry, PO, Invoice and supplier

Internal – System Assisted

Asset source line details enquiry

Asset source line details are listed

Finance Team

Active

FA008.05

Asset book enquiry, Cost and depreciation

Internal – System Assisted

Asset assigned book details enquiry

Asset book details are listed

Finance Team

Active

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2 Fixed Assets Process Flow Diagrams

Overview:

This section explains you the pictorial representation of different processes involved in Assets module. There are different processes involved in Assets module.

2.1 Fixed Assets Configuration

2.2 Mass Additions Process Flow

2.3 Prepare Mass Additions Process

2.4 Post Mass Additions Process

2.5 Asset Retirement

2.6 Depreciation and Month end Process

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2.1 Fixed Assets Configuration

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2.2 Mass Additions Process Flow

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2.3 Prepare Mass Additions Process

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2.4 Post Mass Additions Process

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2.5 Asset Retirement

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2.6 Depreciation and Month end Process

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3. Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date Impact Date

Closed Issues

ID Issue Resolution Responsibility Target Date Impact Date

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ID Issue Resolution Responsibility Target Date Impact Date

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