Vidhyadhar,
What you have recommended is a work around, which infringes on the business
process relating to LVAs. Irrespective of the value involved, a penny or
$5000, the nbv for both remain at zero. How would you distinguish between
the true LVA and the asset that is maintained without any value? The
requirement is not for a LVA, instead possibly an asset that has been taken
over during acquisition that has no value and that does not appear in the
asset list (since it was possibly retired a while back). Classic examples
would be office equipments including laptops, or vehicles, lift trucks,
tools, etc. You may want to track them since they are physically existing,
even though without value. The moment it goes through the LVA route, it
becomes an LVA, no matter what the value and you end up with a process that
is compromised.
The system should align with the business process need, totally. Wherever
gaps in controls could come up, they need to be addressed effectively,
else it will be like rolling out the red carpet for Murphy's famous law...
I have mentioned in many of my earlier posts that technical feasibility does
not necessarily mean compliance with a business process requirement. It is
the controls around it that ensures the process remains pristine.... A work
around is a shortcut and has limited local application. The process is not
embedded in the work-around itself, instead in the mind of the person who
implements it or uses it.
You are doing a commendable job on this board and it is appreciated by all.
Just keep the business process in perspective. Keep it up and Good luck!
I am sure Roy would have a few words to add here.....
Regards,
Rajan.
On Thu, Sep 30, 2010 at 8:14 AM, VidhyaDhar via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
>
> Posted by VidhyaDhar (User-friendly SAP FI Consultant)
> on Sep 30 at 10:13 AM Hi
> Rajan
>
> In fact the very purpose of my suggesting accounting the asset as a low
> value asset with lowest monetary unit is just in order to keep a trace of
> the history, write off immediately the asset in full and deactivate it .
> Thus the asset has a notional value ( which could be very minimal as
> determined while posting the acquisition ) which ensures that the asset
> history sheet correctly portrays all details of the said asset.
>
> Hope you agree with me.
>
> Regards
>
> VidhyaDhar
>
> On Thu, Sep 30, 2010 at 7:39 PM, geevidhyadhar . email@removedwrote:
>
> > Hi Rajan
> >
> > Thanks again and I learn something each day by reading your posts.
> >
> > Regards
> >
> > VidhyaDhar
> >
> >
> > On Thu, Sep 30, 2010 at 7:26 PM, PSD Rajan via sap-acct <
> > sap-acct@groups.ittoolbox.com> wrote:
> >
> >> Posted by PSD Rajan
> >> on Sep 30 at 9:57 AM Even
> >> if the acquisition value is the lowest monetary unit, it still is a
> >> financial transaction albeit immaterial. Further, you would need to set
> up
> >>
> >> controls to ensure that the value always remains the lowest amount,
> which
> >> is
> >> not going to be easy.
> >> Requirement being just to track quantity, simply create an asset master
> >> record and input the quantity there. Now the control required is that
> >> nobody should post values into the asset. How would you do that? By
> >> ensuring that none of the depreciation areas is active for the asset.
> For
> >> this you would need to create a separate asset class where all the areas
>
> >> are
> >> deactivated. Or you could block the asset from acquisition, but again,
> >> this
> >> could be reset by the user. When the asset is no more required, you
> could
> >> delete the asset, in which case you lose the history. You cannot
> >> deactivate
> >> an asset that has no apc transaction. Probably, you could figure a way
> out
> >>
> >> here....
> >>
> >>
> >>
> >> On Thu, Sep 30, 2010 at 4:48 AM, VidhyaDhar via sap-acct <
> >> sap-acct@groups.ittoolbox.com> wrote:
> >>
> >> > Posted by VidhyaDhar(User-friendly SAP FI Consultant)
> >> > on Sep 30 at 6:47 AM Hi
> >> >
> >> >
> >> > As Melissa says you can treat the asset as a low value asset using GWG
>
> >> as
> >> > the depreciation key which writes off the asset 100% immediately upon
> >> > acquisition. However please note that you need to furnish a value for
> >> > acquisition ( it could be even as low as 1 monetary unit) and write it
>
> >> off
> >> > in full immediately .
> >> >
> >> > Regards
> >> >
> >> > VidhyaDhar
> >> >
> >> > On Thu, Sep 30, 2010 at 12:48 PM, MellissaKok via sap-acct <
> >> > sap-acct@groups.ittoolbox.com> wrote:
> >> >
> >> > > Posted by MellissaKok
> >> > > on Sep 30 at 3:20 AM Guess
> >> > > you can treat as low value asset.
> >> > >
> >> > >
> >> > > Best Regards,
> >> > > Mellissa Kok
> >> > > +603-8995-6847
> >> > >
> >> > >
> >> > >
> >> > > 30/09/2010 14:26
> >> > > "Mr_Her via sap-acct" <sap-acct@Groups.ITtoolbox.com<http://http://groups.ittoolbox.com//>
> <http://
> >> http://http://http://groups.ittoolbox.com////////>>
> >> >
> >> > >
> >> > >
> >> > >
> >> > >
> >> > > Please respond to
> >> > > sap-acct@Groups.ITtoolbox.com <http://http://groups.ittoolbox.com//> <
> http://http://http://http://groups.ittoolbox.com////////>
> >> > >
> >> > >
> >> > > To
> >> > > MellissaKok email@removed
> >> > > cc
> >> > >
> >> > > Subject
> >> > > [sap-acct] asset without value
> >> > >
> >> > >
> >> > >
> >> > >
> >> > >
> >> > >
> >> > >
> >> > >
> >> > > Posted by Mr_Her (IT Support Manager)
> >> > > on Sep 30 at 2:28 AM
> >> > >
> >> > >
> >> > > Dear all,
> >> > >
> >> > > Is it possible to create an asset (in asset management) without
> value.
> >> I
> >> > > mean that we just want to capture the quantity without value and
> >> without
> >> > > depreciation as well.
> >> > >
> >> > > Thks.
> >> > >
> >> > > Rgds,
> >> > >
> >> > > Heryanto
> >> > >
> >> > >
> >> > > CONFIDENTIALITY CAUTION: This message is intended only for the use
> of
> >> The
> >> >
> >> > > individual or entity to whom it is addressed and contains
> information
> >> > That
> >> > > is privileged and confidential. If you, the reader of this message,
> >> are
> >> > > not the intended recipient, you should not disseminate, distribute
> or
> >> > copy
> >> > > this communication. If you have received this communication in
> error,
> >> > > please notify us immediately by return email and delete the original
>
> >> > > message..
| __.____._ Copyright © 2010 Toolbox.com and message author.
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
| |  PSD Rajan
SAP Accounting Enthusiast
Contributed 100 posts in a group to earn a Bronze Achievement _.____.__ |
Mark as helpful
