Fixed asset and inventory

Fixed asset and inventory

Master Data audit of SAP fixed assets

2 reading min.
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written by

Prof. Dr. Nick Gehrke

Part II of the series: "Digitization of auditing SAP Fixed Asset and Inventory Processes"

Today's blog post provides you with three interesting indicators for uncovering process weaknesses in the area of master data on fixed assets in SAP.

 

1. Auditing SAP processes in fixed asset and inventory
2. Master Data audit of SAP fixed assets
3. How to audit fixed assets procurement in SAP
4. SAP data analytics for fixed asset depreciation
5. Auditing fixed asset retirement in SAP
6. Process analytics for SAP current asset transactions
7. Segregation of Duties in SAP asset management
8. Fixed asset data structure in SAP
9. Professional Judgement in auditing SAP fixed assets

 

Before you proceed reading on the details of the indicators, I would recommend you read the concept of indicators first.

 

Three TOP indicators for master data of fixed assets

All indicators are assigned to a process, a process area, an audit objective and a risk. In the following, three indicators from the area of master data in fixed asset processes will be introduced.

Altogether I have designed and implemented 22 indicators for the fixed asset process. You can download the details about all fixed asset indicators here:

 

Download pdf 

Fixed asset depreciation start not plausible

This indicator aims at identifying compliance and correctness.

There is the risk that incorrect depreciation is probable when the depreciation starting date is not nearby the activation date causing improper financial statements.

The criteria for this indicator is:

The document has been marked because it's referencing a fixed asset where activation date and start of depreciation differ more than 31 days.

 

Missing fixed asset master record

This indicator aims at identifying compliance and correctness.

There is the risk of insufficient traceability of business transactions.

The criteria for this indicator is:

The document has been marked because it's referencing a fixed asset (Table BSEG, Fields ANLN1, ANLN2) that does not exist in the fixed asset master data, tables ANLH (Main asset number), ANLA (Asset Master Record Segment) and ANLB (Depreciation terms) and is missing in one of the tables.

 

Fixed asset depreciation master data was changed

This indicator aims at identifying compliance and correctness.

There is the risk that potentially incorrect depreciation has direct financial statement impacts.

The criteria for this indicator is:

The document has been marked because it's referencing a fixed asset where depreciation master data was changed.

 

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