Fixed asset and inventory

Fixed asset and inventory

SAP data analytics for fixed asset depreciation

2 reading min.
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written by

Prof. Dr. Nick Gehrke

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

This blog post presents three interesting indicators for detecting process weaknesses in the area of fixed asset depreciation 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 depreciation in SAP

As already mentioned, every indicator is associated with a process, a process area, an audit objective and a risk respectively. In the following, three selected indicators in the area of fixed asset depreciation are presented.

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 more than 50% of activation value

This indicator aims at identifying compliance and correctness.

There is the risk that inappropriate depreciation leads to improper P&L effects.

The criteria for this indicator is:

The document has been marked due to a depreciation (Table ANLC, Fields NAFAG + AAFAG + SAFAG) of a fixed asset with an amount of >50% of the capitalization amount (Table ANLC, Field KANSW+ANSWL) in one year. Beware: the marked document is not necessarily the document that lead to the >50% depreciation or contains the complete depreciation value.

 

Fixed asset appreciation

This indicator aims at identifying compliance and correctness.

There is a risk that fixed assets were appreciated to high. 

The criteria for this indicator is:

The document has been marked due to appreciation of a fixed asset.

 

Fixed asset with a negative book value

This indicator aims at identifying compliance and correctness.

There is the risk of incorrect depreciation calculation.

The criteria for this indicator is:

The document has been marked because it's referencing a fixed asset with a negative book value in present or in its history. The cumulative depreciation (prior years + current year) is calculated and compared to the cumulative acquisition costs.

 

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