Sunday 17 February 2013

Things to Do While Unemployed or a fresher.


Things to Do While Unemployed or a fresher.

Due to the increased level of unemployment due to the current economic climate coupled with the fact that period of unemployment currently last longer than before creates a quandary for job seekers. Job seekers now need to worry about that large gap between jobs. This in no uncertain terms looks unimpressive on a CV/Resume. Employers are consequently less likely to short-list much less hire a profile with gaps in employment history. This will definitely hinder progress in the job search. So the question to be answered is… What should be done while unemployed to plug the gap and increase the marketability of ones profile?
This also holds true for freshers. There is a fine line between being considered a fresher and being considered unemployed. Companies are more likely to treat a candidate six months to a year after completing studies as a fresher. A profile with a gap of two, three or more years tend to be considered as unemployed.
Take a class The majority of hiring managers when surveyed recommended taking a class during a period of unemployment. “Learning in your career never stops it’s an ongoing exercise, the more technically competent you are, the better”. When you take a class in your field, you are displaying that you are serious about your work and that you take initiative.” Another advantage to taking a class is that it’s offers a great networking opportunity.

Upgrade your skills The key to being successful in finding a job is to be marketable. Developing relevant skills and increasing your experience ensures this. So the period of unemployment is the ideal time to come closer to this goal. Utilizing time wisely will lead you to just the job you’ve been looking for.

Make connections There is no doubt that referrals work best. A resume handed directly by someone within the company to the hiring manager is more likely to get noticed. So build and expand your network of contacts through social media and professional organizations. Put the word out to all your contacts, be it friends, family or other professionals, so your contacts know that you’re looking for a job. Do not be hesitant to ask for help in finding connections to the organizations you’re interested in.

Practice talking about you with everyone High performers practice for interviews. So now you know what you’re aiming for, but you need to talk about it with everyone parties, at the gym, on the phone with friends. When they ask how you’re doing, talk about what you’re doing like you are in the job interview. And the good news is that the better you get at talking like that, the more you will actually believe your story, the story that being unemployed is lucky because you have learning opportunities.

Exercise and Eat Healthy many experts propose that when we are unemployed, we have the option to replace the regular work day with a day of exercise and preparation of healthy meals. In the natural course one may not be obsessed with working out and eating healthy, but if there is nothing else going on, at least this is something to do. Exercise naturally makes us feel better in so many ways and when you are unemployed it is easy to start to not care. Use this extra time to plan workout routines and make meals that you wouldn’t normally have time to prepare.  Make being healthy your full time job, you will feel so much more productive and better about yourself.

Join a social network or start a blog about the industry you want to go into Social networking or blogging are great ways to keep up with your industry. Your mission should be to network without looking desperate. Leverage the fact that you have more time on your hands that people who have jobs. Everyone who is unemployed should be networking or blogging as a way to get their next job. Put your ideas out into the world and connect with people that way. The reason that people who network or blog have great careers is because they are always thinking about issues in their industry. Brilliant ideas well executed make careers. Show that side of yourself to people. Networking or blogging takes a lot of time, but when unemployed you have the time. So make use of your time constructively.

Start your own business but attempting to start a business can be costly and time consuming. If you have the financial means to do this, it’s a great resume booster and a wonderful marketing tool. “The beauty of having your own business is that you can work part-time or full-time depending on whether or not you are able to land a job working for someone else”. “You are also going to learn skills that are transferable if you do end up working for someone else again.”


Saturday 2 February 2013

Informational: Equity:Debt:Lines of Credit

Equity:
• Equity represents ownership in the firm.
• Equity renders no contractual commitment (legal) to return the original amount invested, or to necessarily pay dividends as a return on that investment
• Owners are ‘residual claimants’ …they get what is left over after all the firm’s legal commitments have been satisfied.
Debt:
• Debt gives rise to fixed contractual commitments.
• Those commitments at a minimum include:
– Repayment of the principal borrowed
– Payment of interest for the use of the amount borrowed.
– Adherence to other agreed terms such as limiting the amount of additional debt taken on, maintaining financial ratios, regular financial reporting, etc.
Lines of Credit:
• Types of Lines of Credit include:
– Operating (demand)
– Term (revolving)
• Used for working capital purposes:
– Financing receivables
– Inventory
– Ongoing corporate activity
• Banks may require a ‘clean up’ period in which a firm has a zero balance on its L/C to ensure that the bank is not providing permanent financing.

“Best Practices” Frequently Asked Questions


SAP “Best Practices” Frequently Asked Questions
01. What are SAP Best Practices?SAP Best Practices offerings provide detailed implementation documentation and a preconfigured system specifically tailored to support end-to-end business processes for specific industry and market needs. They are based on a building block methodology, providing enhanced flexibility for unique business needs, while simultaneously addressing key business operations and specific industry functionality.

02. How do SAP business partners and solution providers utilize SAP Best Practices?SAP Partners can use SAP Best Practices as a standardized, industry-compliant solution development platform that allows additional verticalization (industry-specific and country-specific adaptation in configuration). SAP Best Practices can also serve as a basis for an SAP Partners' own SAP All-in-One offering. Partners can select what they need out of the SAP Best Practices package and add supplemental deliverables, such as consulting services, additional configuration or SAP application scope, training, or outsourcing, to create their unique SAP All-in-One solution.

03. How much do SAP Best Practices cost?
Customers and SAP partners can utilize SAP Best Practices at no additional charge. The underlying SAP software must be licensed and installed prior to utilization.

04. What are the main benefits of SAP Best Practices over a traditional implementation project?SAP Best Practices incorporate vast expertise from over 36 SAP partners, and over 30 years of experience helping many thousands of customers implement SAP applications in their business. Recent studies have shown significant benefits in time and cost savings. Customers surveyed reported reduction of as much as 32% in implementation time, and a reduction in consulting and in-house resources of up to 50%. Other benefits are lower Total Cost of Ownership (11% decrease on average over a 3-year period) through use SAP Best Practices. This also results in lower maintenance costs (up to 22%) and reduced project risks (average of 71%) by using SAP’s Best Practices methodology. (See footnote for study details)

05. Is SAP Best Practices a software solution?
SAP Best Practices offerings are preconfigured templates with documentation guides that are designed to be used with SAP applications. The preconfigured settings and guides are used in an existing system landscape and a specific SAP application release (SAP ERP, SAP NetWeaver Business Intelligence, SAP CRM, etc.). It pre-configures numerous industry-specific business scenarios, baseline scenarios and cross-industry scenarios.

06. Who can benefit from SAP Best Practices?
SAP Best Practices have been designed to support SAP customer implementations and to enable SAP Partners to create high quality SAP All-in-One solutions. Also, large enterprises can use SAP Best Practices as a basis for their SAP implementation or prototyping projects and for creating global templates for a worldwide roll out of an SAP Business Suite solution.

07. What is the ideal customer size for the SAP Best Practices to make a difference?
The SAP Best Practices offerings can be beneficial to companies of all sizes who want to ease implementations issues and take advantage of SAP's experience and over 36 partners' expertise in key industry and cross-industry topics that is delivered in pre-configuration and documentation that comes with the offerings. However, midmarket companies who have limited resources and IT expertise, and who share the challenge of managing their business in the dynamic new global economy, find it especially attractive. In any case, SAP Best Practices provides an excellent starting point for projects of any size.

08. How do SAP Best Practices support SAP products and solutions?
The SAP Best Practices offerings support SAP products and solutions at multiple levels and across the product line. It provides indispensable preconfiguration and documentation to streamline implementations of all sizes and in all industries. The offerings enable a customer to implement modules in application areas like ERP, SCM and CRM, incorporating specific industries and micro-verticals requirements where applicable.

09. Which areas do SAP Best Practices cover?

SAP Best Practices cover industry-specific business processes for SAP ERP and SAP CRM, SAP SCM, SAP NetWeaver BI, and SAP SRM. SAP Best Practices also support SAP Industry Solutions, which provides specific modules for unique business processes and functionality. Consequently, customers who utilize SAP Best Practices will fast track their project and get up and running more quickly. Because the offerings utilize a building block philosophy, the final solution can be fine-tuned to meet a company's specific needs.

10. What is the difference between an SAP Industry Solution and SAP Best Practices for industries?
SAP Industry Solutions are add-ons to SAP standard products, which provide additional software coding for industry-specific functions and needs.

SAP Best Practices solutions for industries incorporate preconfigured settings which reflect commonly industry practices in the SAP software. The SAP Best Practices preconfiguration reduces the amount of time required to implement the software onsite by delivering the preconfigured common industry settings, thereby cutting costs and streamlining deployments.

With SAP Best Practices, SAP has already incorporated the optimal implementation in the configuration, based on over 30 years experience in the industry and the knowledge gained from many thousands of implementations.

11. What is an SAP Best Practices scenario?
An SAP Best Practices scenario is a defined process flow for a business situation such as 'order to cash' or, 'period-end close'. An SAP Best Practices scenario includes a description of the processes and all the necessary configuration and content to activate the scenario in your system.

12. What is the building block approach to SAP Best Practices offerings?
SAP Best Practices offerings make use of a building block methodology to smooth integration across the SAP product and solutions offerings. These building blocks contain the preconfiguration, the tools and the documentation needed to install the module into the system. They provide the structure for a fast, flexible and smooth implementation of SAP Industry and All-in-One solutions, as well as the Baseline and Cross-Industry packages. The size and content of the building blocks can vary from simple technical building blocks to complex building blocks that can be used as stand-alone solution elements. Several basic building blocks can be assembled to form a more comprehensive building block. The individual building blocks can also be used to modify an existing scenario or solution to address a specific business need or process.

13. Can SAP Best Practices be used to enhance my existing solution?
Existing solutions can be extended using SAP Best Practices. SAP Best Practices packages help integrate new functionality into existing SAP products and solutions. For example, an SAP ERP system can be extended to incorporate SAP SCM because SAP Best Practices include all the necessary elements to implement and run the new business scenario.

14. Can SAP Best Practices help implement several industry scenarios?Can it implement a single business scenario from a SAP Best Practices offering? SAP Best Practices provides the framework and the content to implement selected pieces of an SAP application or industry solution, or some combinations of applications and solutions. Because of the SAP Best Practices building block methodology, the user can simply identify the processes to implement, choose the corresponding configuration settings and then implement those modules. In some situations, additional development on the part of the customer implementation team may be needed.

15. How many versions of SAP Best Practices are available?
SAP Best Practices support the entire SAP product line, including Industry Solution packages, Baseline Packages (organizational structure, basic financials, basic controlling, basic materials management, production, basic sales and distribution, etc), and Cross-Industry scenarios (CRM, SAP SCM, SAP BW, and SAP SRM). Various SAP Best Practices versions are available as localized versions adapted to meet country-specific needs.

16. How can SAP Best Practices be utilized if they're not localized for my country?
Many SAP Best Practices offerings can be utilized in different countries, depending on the module (currency-based modules, for instance, in Europe's Eurozone). Often times a local SAP consultant can provide localization assistance (to address specific government regulations, for instance), or they may already offer these modules that integrate with the standard SAP Best Practices offerings.

17. What is the difference between SAP Best Practices and IDES?
IDES is SAP's Internet Demo and Evaluation System. IDES is used to prepare project team members and end users to use the SAP Business Suite. The content of this online version is a subset of all the content defined in SAP Best Practices. In addition, SAP has started to include SAP Best Practices in the demonstration and evaluation offerings. Some processes in IDESmay be identical to those preconfigured in SAP Best Practices.

For customers and prospects, the online version of IDES and the in-practice form of IDES allow the project team members and end users to use the same examples and processes.

When evaluating IDES based on SAP Best Practices, some decisions about project scope are made. These decisions can be carried forward to the implementation phase. SAP Best Practices customers get the same systems they have seen and used during evaluation of SAP software. Evaluation and implementation are seamlessly integrated.

18. Can I use SAP Best Practices with the SAP Solution Manager?
Yes. In addition to providing you valuable connections to implementation services such as go-live checks, customer support connections, and management of your SAP Solution Landscape, the SAP Solution Manager also provides implementation project tools.

For select SAP Best Practices, a SAP Solution Manager Package can be uploaded to organize the SAP Best Practices documentation, configuration guides, and links to configuration so that you can have one central repository of project data - from configuration to end-user training. You can also use SAP Solution Manager with SAP Best Practices even if there is no Solution Manager package for an SAP Best Practices offering; you can simply upload the SAP Best Practices documentation and scenario content into the SAP Solution Manager manually.

SAP FI: What is "SAP Business One"

The SAP thrust to carve a niche in the medium and small corporate segment for small businesses with between five and 100 users, was defined by executing a strategy of acquiring third party developed business applications, integrating and branding the new system as “SAP Business One”. These acquisitions were targeted to allow SAP to reach out to the mid- market through its partners and to gain additional business from the smaller subsidiaries of its enterprise customers.
To this end SAP invested in the following acquisitions:
In 2002 SAP acquired TopManage Financial Systems, an Israel-based developer of business applications. TopManage was founded by Shai Agassi who was formally president of the Product and Technology Group at SAP and his father Reovan. This product is an "international product" and "easily configurable in terms of localization". The product is currently available in English, Hebrew and Spanish versions, with the German and French versions to follow.
In 2004, SAP acquired the technology and assets of iLytix Systems AS, a privately held software company based in OsloNorway. With this acquisition SAP introduced the new reporting and budgeting capabilities in SAP Business One called XL Reporter.
In 2006 SAP acquired Minneapolis based Praxis Software Solutions, previously a SAP Business One partner. This strategic acquisition enables SAP to integrate the company’s Web-based CRM and e-commerce capabilities into SAP Business One.
SAP Business One contains 14 core modules:
01. Administration Module, where configuration is performed
02. Financials Module, where various accounting and financial activities are conducted
03. Sales Opportunities Module, where existing customers and potential accounts are structured tracking
04. Sales Module, where orders are entered, shipped and invoiced
05. Purchasing Module, where purchase orders are issued and goods received into inventory
06. Business Partners Module, where Business Partners (customers, vendors, and leads) are contacted and maintained
07. Banking Module, where cash is received and paid out
08. Inventory Module, where Inventory is valued and managed
09. Production Module, where bill of materials is defined and manufacturing is tracked
10. MRP Module, where purchase and production planning takes place
11. Service Module, where after-service products are managed
12. Human Resources Module, where employee information is kept
13. Reports Module, where system-default and user-defined reports are generated (as on-screen tables, printouts or Excel files: Print Layout Designer, Advanced Layout Designer and XL Reporter)
14. E-commerce, allowing customers to buy and sell online to consumers or other businesses.

What is "FACTORING"

Companies generate accounts receivable by selling goods or services to their customers on credit. Many companies who extend credit to their customers sell their accounts receivable to a factor. Factoring is the buying and selling of account receivables that are due to mature in the near future. It is a specially designed financial service used by businesses to manage their cash flow. Factoring offers a fast and flexible method of improving cash flow and providing working capital for a company. Selling receivable allow a company to take advantage of growth opportunities, stabilize cash flow, and provide for daily operating expenses. A factor is a specialized financial intermediary who purchases accounts receivable at a discount. Under a factoring agreement a company sells or assigns its accounts receivable to a factor in exchange for a cash advance. The factor typically charges interest on the advance plus a commission. The price paid for the receivables is discounted from their face amount to take into account the likelihood of uncollectibility of some of the receivables.
A factor may provide any of the following services:
1. Investigation of the credit risk of customers of the client;
2. Assumption of the credit risk of customers;

3. Collection of the client’s accounts receivable from customers;
4. Bookkeeping and reporting services related to accounts receivable;
5. Provision of expertise related to disputes, returns and adjustments;
6. Advancing or financing

Factoring is a well known best method of increasing and fixing cash flows. When you factor you are able to sell your receivables for what they're worth and get cash for them right now instead of waiting 30-120 days for your clients to pay you. Once a company enhances its cash flows it can pay off debt, make payroll, pay for overhead and other costs where before Factoring many businesses are crippled due to a poor quality cash flow.
Factoring's origins lie in the financing of trade, particularly international trade. Factoring as a fact of business life was underway in England prior to 1400. It appears to be closely related to early merchant banking activities. The latter evolved by extension to non-trade related financing such as sovereign debt. Like all financial instruments, factoring evolved over centuries. This was driven by changes in the organization of companies; technology, etc.
Factoring is considered off balance sheet financing in that it is not a form of debt or a form of equity. This fact makes factoring more attainable than traditional bank and equity financing.
Factoring Account Receivables is a tool that has been in use for many years. Several Fortune 500 companies use this financial tool every day. These Include IBM, Coca-Cola, Wal-Mart, Georgia-Pacific, Honeywell, Scott Paper, and Shell Oil. There are numerous types of factoring arrangements. Some of the basic types vary the treatment of credit risk assumption and customer or debtor notification. When the factoring agreement involves the purchase of accounts receivable where the factor bears the risk of a customer or debtor failing to pay the client for reason of financial inability it is a non-recourse or without-recourse agreement. In the situation where the client must bear the risk of nonpayment due to financial inability, the agreement is a recourse agreement. In many instances, factoring agreements provide for accounts to be purchased on both a recourse and non-recourse basis depending on the credit worthiness of the Customers or the debtors.
A strategy has been identified in which multinational corporations use the Factoring of accounts receivable among related parties. The goal of this strategy is to avoid home taxation by shifting income offshore and to significantly reduce remaining U.S. income by deducting expenses related to the same income. Let us say A U.S. subsidiary (“Taxpayer”) of a foreign parent earns sales income and books accounts receivable. The Taxpayer then factors (sells at a discount) the accounts receivable to a brother-sister foreign affiliate. The Taxpayer pays the foreign factor the following fees: a discount; administration fees; commissions; and interest. The Taxpayer deducts these fees or may net them against gross receipts. However, the foreign factor does not perform any of the typical services of a factor, including collection of the Taxpayer’s accounts receivable. Instead, the Taxpayer agrees to continue doing all or most of its own collection work on its accounts receivable. In some cases, factoring arrangements involve the use of a domestic (Home based) factor instead of a factor located offshore. If the transaction is between two domestic entities it may be structured for state tax purposes and has no federal tax effect. In addition, in some cases, the Taxpayer and factor may be engaged in a financing arrangement involving securitizing the accounts receivable.
Common Check necessary for Factoring:1. Check the status of Customer for Factoring:
The data required to check the status will be maintained in the Customers Master. The field Accounts Receivable Pledging Indicator (ARPI) in the customer master, will indicate the status of the customer
2. Check if the total open amount greather than the accepted limit:
Here a check is sometimes done to ensure that the minimum due amount meets the requisite criteria prescribed bt the Factor.
3. Check the maximum allowed overdue days for the company code.
If the customer has at least one open accounting document with weighed days overdue greather than the maximum allowed overdue days of the company code, the customer is not factorable for this company code. This creiteia will not be met in the event the Customer has invoice with a weighed due date that is greather than the maximum allowed due date .
4. Check if the credit limit for the country has not been reached:
The Factor sometimes sets a limit for the amount of liability to be taken per country. during the Factoring process this needs to be checked.
5. Check if the customer credit limit has not been reached:
The Factor basis Insurance limits, decides the credit limit to be given per customer.
6.Check if the customer group credit limit has not been reached:
Check if the document will not exceed the customer group credit limit when factored. This is because Factors sometimes look at a customers credit limit with a Group perspective.

Sarbanes-Oxley Act (SOX)/USA PATRIOT Act/Basel II

orporate governance practices. It applies to all companies, whose shares are listed on the stock exchanges under the jurisdiction of the U.S. Securities and Exchange Commission (SEC). The Sarbanes-Oxley Act is designed to review dated legislative audit requirements to protect investors by improving the accuracy and reliability of corporate disclosures, covering issues such as establishing a public company accounting oversight board, corporate responsibility, auditor independence, and enhanced financial disclosure. It is also known as the Public Company Accounting Reform and Investor Protection Act of 2002
The USA PATRIOT Act (The acronym stands for "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 requires institutions to aggressively pursue money launderers, a practice made simpler by software that can flag suspicious account activities and account holders.
The Basel II is an initiative controlled by the Bank of International Settlements. Banks in the EuroZone are required to implement these rules in 2006. These rules beef up the financial framework of banks to make them more resilient to adverse financial changes in the world markets, and so lessening the risk of financial disasters. Basel II is an international banking agreement intended to improve the safety and soundness of the financial system by aligning capital adequacy assessment more closely with the underlying risks that affect banks. Under the accord, in order to earn the right to keep a minimum amount of operating capital, financial institutions need to store three years of data and model risks using that data.

ASAP Methodology

ASAP stands for Accelerated SAP. Its purpose is to help design SAP implementation in the most efficient manner possible. Its goal is to effectively optimize time, people, quality and other resources, using a proven methodology to implementation. ASAP focuses on tools and training, wrapped up in a five-phase process oriented road map for guiding implementation. 

The road map is composed of five well-known consecutive phases: • Phase 1 Project Preparation • Phase 2 Business Blueprint • Phase 3 Realization • Phase 4 Final Preparation • Phase 5 Go-Live and support 

Phase 1 : Project Preparation Phase 1 initiates with a retrieval of information and resources. It is an important time to assemble the necessary components for the implementation. Some important milestones that need to be accomplished for phase 1 include • Obtaining senior-level management/stakeholder support • identifying clear project objectives • architect an efficient decision-making process • creating an environment suitable for change and re-engineering • building a qualified and capable project team. Senior level management support: One of the most important milestones with phase 1 of ASAP is the full agreement and cooperation of the important company decision-makers - key stake holders and others. Their backing and support is crucial for a successful implementation. Clear project objectives: be concise in defining what your objectives and expectations are for this venture. Vague or unclear notions of what you hope to obtain with SAP will handicap the implementation process. Also make sure that your expectations are reasonable considering your company's resources. It is essential to have clearly defined ideas, goals and project plans devised before moving forward. An efficient decision making process: One obstacle that often stalls implementation is a poorly constructed decision- making process. Before embarking on this venture, individuals need to be clearly identified. Decide now who is responsible for different decisions along the way. From day one, the implementation decision makers and project leaders from each area must be aware of the onus placed on them to return good decisions quickly. Environment suitable for change and re engineering:Your team must be willing to accept that, along with new SAP software, things are going to change, the business will change, and information technology enabling the business will change as well. By implementing SAP, you will essentially redesign your current practices to model more efficient or predefined best business practices as espoused by SAP. Resistance to this change will impede the progress of your implementation. 

ASAP- Second Phase- Business Blueprint SAP has defined a business blueprint phase to help extract pertinent information about your company that is necessary for implementation. These blueprints are in the form of questionnaires that are designed to probe for information that uncovers how your company does business. As such, they also serve to document the implementation. Each business blueprint document essentially outlines your future business processes and business requirements. The kinds of questions asked are germane to the particular business function, as seen in the following sample questions: 1) What information do you capture on a purchase order? 2) What information is required to complete a purchase order? Accelerated SAP question and answer database: The question and answer database (QADB) is a simple although aging tool designed to facilitate the creation and maintenance of your business blueprint. This database stores the questions and the answers and serves as the heart of your blue print. Customers are provided with a customer input template for each application that collects the data. The question and answer format is standard across applications to facilitate easier use by the project team. Issues database: Another tool used in the blueprinting phase is the issues database. This database stores any open concerns and pending issues that relate to the implementation. Centrally storing this information assists in gathering and then managing issues to resolution, so that important matters do not fall through the cracks. You can then track the issues in database, assign them to team members, and update the database accordingly. 

ASAP Phase- 3 - Realization: With the completion of the business in phase 2, "functional" experts are now ready to begin configuring SAP. The Realization phase is broken in to two parts. 1) Your SAP consulting team helps you configure your baseline system, called the baseline configuration. 2) Your implementation project team fine-tunes that system to meet all your business and process requirements as part of the fine tuning configuration. The initial configuration completed during the base line configuration is based on the information that you provided in your blueprint document. The remaining approximately 20% of your configuration that was not tackled during the baseline configuration is completed during the fine tuning configuration. Fine tuning usually deals with the exceptions that are not covered in baseline configuration. This final bit of tweaking represents the work necessary to fit your special needs. Configuration Testing: With the help of your SAP consulting team, you segregate your business processes into cycles of related business flows. The cycles serve as independent units that enable you to test specific parts of the business process. You can also work through configuring the SAP implementation guide (IMG). A tool used to assist you in configuring your SAP system in a step by step manner. Knowledge Transfer: As the configuration phase comes to a close, it becomes necessary for the Project team to be self-sufficient in their knowledge of the configuration of your SAP system. Knowledge transfer to the configuration team tasked with system maintenance (that is, maintenance of the business processes after Go-live) needs to be completed at this time. In addition, the end users tasked with actually using the system for day-to-day business purposes must be trained. 

ASAP Methodology - Phase 4 - Final Preparation: As phase 3 merges into phase 4, you should find yourselves not only in the midst of SAP training, but also in the midst of rigorous functional and stress testing. Phase 4 also concentrates on the fine tuning of your configuration before Go-live and more importantly, the migration of data from your old system or systems to SAP. Workload testing (including peak volume, daily load, and other forms of stress testing), and integration or functional testing are conducted to ensure the accuracy of your data and the stability of your SAP system. Because you should have begun testing back in phase 2, you do not have too far to go until Go-live. Now is an important time to perform preventative maintenance checks to ensure optimal performance at your SAP system. At the conclusion of phase 4, take time to plan and document a Go-live strategy. Preparation for Go-live means preparing for your end-users questions as they start actively working on the new SAP system. 

ASAP - Phase 5 - Go-live and Support: The Go-live milestone is itself is easy to achieve; a smooth and uneventful Go-live is another matter altogether. Preparation is the key, including attention to what-if scenarios related not only to the individual business processes deployed but also to the functioning of technology underpinning these business processes and preparation for ongoing support, including maintenance contracts and documented processes and procedures are essential.

SAP GEN: Business Configuration Sets "BC Sets"

Business Configuration Sets, or, BC Sets is a file containing configuration settings that you can import and review in your system before activating them and affecting your systems configuration tables. When you activate the BC Set, you can record the settings in an SAP transport that can be moved from your development environment to your test or production environment.

1 Purpose
To review the configurations in the building blocks, you can download the tables containing the relevant data for your configuration from a BC Set. You can find the BC sets in the master list document of the specific building block. The data is displayed in the SAP system using a specific function module. The displayed tables can be downloaded in different file formats.
And, you can go to the IMG from the BC set display screen.

2 Downloading Data Tables from BC Sets
Procedure: To download the tables from BC Set or several tables from a hierarchical BC Set, perform the following steps:
1. On the SAP Easy Access screen, enter transaction code SCPR3.
2. On the Business Configuration Sets: Display screen, choose and select Select by Attributes.
3. In the Select by Attributes dialog box, in BC Set ID, enter the hierarchical BC set or individual BC set whose tables you would like to download, and choose Execute.
4. On the application menu bar, choose BC Set ® Print…
5. In the BC Set: Overall View dialog box, select Display Data Records and Display IMG Path.
6. Choose Display. The BC Set Overall View is displayed.
7. If you want to go to the IMG from here, choose Implementation Guide and you are taken to the Display IMG screen.
8. If you want to save a file, from the menu bar, choose List ® Save/Send ® File...
9. In the Save list in file dialog box, select a format and choose Continue.
Result: The data tables are downloaded from BC sets.

3 Displaying IMG from the BC Set Display Screen
Procedure
1. On the SAP Easy Access screen, enter transaction code SCPR3.
2. On the Business Configuration Sets: Display screen, choose and select Select by Attributes.
3. In the Select by Attributes dialog box, in BC Set ID, enter the hierarchical BC set or individual BC set whose tables you would like to download, and choose Execute.
4. On the application menu bar, choose Goto → Implementation Guide (IMG).
5. On the Display IMG, select the desired activity.
Result
You are now on the IMG screen.

Asset Under Construction (AUC) Config & Process Steps: Internal Order as Investment Measure:


Asset Under Construction (AUC) Config & Process Steps: Internal Order as Investment Measure: 
1. Define the AuC Asset Class (with investment measure) - OAOA 

2. Define the Asset Class – for Main Asset - OAOA 

3. Define Investment Profile - OITA a. Assign the AuC Asset Class (Step-1) in the investment profile 4. 
Assign Investment Profile to Model Order - OITA 

5. Define Order Type (Investment) - KOT2 a. Settlement Profile - OKO7 b. Maintain Allocation Structures - OKO6 c. Planning Profile - OKOS d. Budget Profile - OKOB 

6. Create an Internal Order - KO01 a. With the Investment Profile (Step-2) b. AuC automatically created by the system using Asset Class given in the Investment Profile 

7. Post the amounts to IO - FB01
Dr. Material supplied to Asset (Expenditure)
Cr. Cash account 

8. Settle the amounts to AuC from IO (Prcg type: Automatic) - KO88
Dr. Asset Under Construction account
Cr. Contra Capitalized 

9. Create the Main Asset - AS01 10. 
Settle the amounts to Main Asset from AuC (Prcg type: Full) - KO88 
Dr. Final Asset account 
Cr. Asset Under Construction account 

AuC using Line Item Settlement: 
1. Define the AuC Asset Class (with Line Item Settlement) - OAOA 

2. Define the Asset Class – for Main Asset - OAOA 

3. Define Order Type (Overhead) - KOT2 

4. Create an AuC-Asset (using Step-1 Asset Class) - AS01 

5. Create an Internal Order - KO01 a. Assign the AuC – Asset in Settlement Rule in IO 

6. Post the amounts to IO - FB01 

7. Settle the amounts to AuC from IO - KO88 

8. Create Main Asset (using Step-2 Asset Class) - AS01 

9. Assign the Main Asset in IO (Step-5) - KO02 

10. Settlement AuC – Line Item List - AIAB 

11. Settlement AuC - Receiver - AIBU

Asset Transactions - Accounting Entries

Asset Acquisition: F-90 - With Vendor 
Dr. Fixed Asset – Acquisition Cost 
Cr. Vendor (Accounts payable) 
Posting date of the document will be copied into the asset master as the capitalization date. The depreciation start date of each depreciation area will also be determined and updated in the depreciation area data tab page. Asset acquisition posting could also be done without PO from the MM module. Posting could be done in FI posting only. 

Asset Disposal – Sales to a Customer: F-92 
With Customer Supposed an asset with historical cost $1,000 and accumulated depreciation of $100 is being sold to a customer at a price of $1,100, the posting entries will be as follows: 
Dr. Customer account (A/R) 1,100 
Cr. Revenue for asset disposal 1,100 
Cr. Fixed asset – acquisition cost 1,000 
Dr. Accumulated depreciation 100 
Dr. Clearing account for asset disposal 1,100 
Cr. Gain/loss of fixed asset disposal 200 
The posting date of the retirement posting will also be updated into the field "deactivation date" in the asset master as the retirement date. 

Asset Disposal – Scrap without Revenue ABAVN 
Asset Retirement by Scrapping Instead of selling, an asset could be disposed as a scrap. In this case, no revenue is expected and a loss will be realized in the P&L if the fixed asset being scrapped still carries a net book value. For the same asset with historical cost $1,000 and accumulated depreciation of $100, the posting of the scrapping will be as follows: 
Cr. Fixed asset – acquisition cost 1,000 
Dr. Accumulated depreciation 100 
Cr. Gain/loss of fixed asset disposal 900 

Asset Transfer within a Company  
Reclassification The NBV of an existing asset master record could be transferred to another asset within the same company. The transaction could be used in the following scenarios: Reclassify an existing asset to a new class or to correct an error Transfer an asset to a new one with the same class. This may be necessary to execute the change of the remaining useful life of an asset but still spread the net book value evenly throughout the remaining life without allowing the system to catch up the postings of the missing or extra depreciation of the past periods For an asset with historical cost $1,000 and accumulated depreciation of $100, the posting of the intra-company transfer posting will be follows: 
Cr. Fix asset – acquisition cost (old asset) 1,000
Dr. Accumulated depreciation (old asset) 100 
Dr. Fix asset – acquisition cost (new asset) 1,000 
Cr. Accumulated depreciation (new asset) 100 
The old asset being transferred will become a retired asset and the transfer posting date will be updated as the retirement date in the asset master record. For the new receiving asset, the transfer will be the same as if it is being acquired. The transfer posting date will be used as the capitalization date. 

Month End Processing – Depreciation Run AFAB 
Dr. Depreciation expense 
Cr. Accumulated depreciation 
Note that the above posting to G/L will be done in a summary level by G/L accounts and cost center levels because the depreciation expense has to be charged to cost center in CO. However, the detailed depreciation amount of each asset will also be stored in Asset Accounting such that each unique asset master record will also have its unique posted depreciation amount. Besides, after each depreciation run, the system will issue a report which list out the depreciation posting amount of each individual assets as a record. This is advised that this report should be kept as an additional audit trail. 


Asset Under Construction (AUC) Config & Process Steps: Internal Order as Investment Measure: 
Post the amounts to IO - FB01
Dr. Material supplied to Asset (Expenditure)
Cr. Cash account 
Settle the amounts to AuC from IO (Prcg type: Automatic) - KO88
Dr. Asset Under Construction account
Cr. Contra Capitalized 
Settle the amounts to Main Asset from AuC (Prcg type: Full) - KO88 
Dr. Final Asset account 
Cr. Asset Under Construction account 

Asset - Legacy Migration Guidelines

Asset Migration should be handled carefully, as real time integration does not exist with FI module. Generally, assets are classified into 2 -

Assets acquired/capitalized in the previous year
Assets acquired/capitalized in the current year
The latter is generally uploaded at item / transaction level, while the former at balance level.
AUC / CIP should be uploaded at transaction level. Else, settlement will not be possible
Pre-requisites:

Asset master data configurations should have been completed like asset classes, depreciation area, depreciation key etc
Take over date (Transfer date) should be configured. 
The date is of importance from depreciation perspective.
It is NOT the actual data entry date. It represents the value date.
There are 2 types of take over date - End of last closed FY or during FY (Mid year take over)
Implementation:
Asset migration t-codes like AS91/92/93/94 and AS81/82/83/84 will be used extensively
There are two programs that can be utilized to automatically process legacy assets. They are RAALTD01 and RAALTD11.
RAALTD01: Uses dialog programming and hence will be slow, but predictable
RAALTD11: Users direct input and hence will be faster. Most of the implementation uses this option
BDC recording of AS91 t-code: This is done for current year acquisition and AuC Assets. The transaction level data are entered by clicking the 'Transactions' button in the application tool bar

Mandatory Fields:
All mandatory fields as defined in the screen layout rule - Asset class, cost center, description, Plant, quantity, depreciation key, useful life etc
Acquisition amount, Accumulated depreciation value till PY, Accumulated depreciation value in the CY till take over date for all depreciation areas.

From FI View
The migration programs will create Asset data only and no FI documents are generated.
FI postings are to be manually created using t-code OASV or ABF1
Former will be used normally, while latter will be used for uploading asset values in multiple currencies
The asset GL account properties should be changed to 'Non-reconciliation' account ('Set/Reset reconciliation account' option in IMG screen). The same should be changed after migration
GL accounts for Acquisition Production Cost( APC), accumulated depreciation GL accounts will be posted manually. The difference (Net Book Value) gets posted to the conversion account created for assets. This is later reverse posted during TB upload
After migration, asset values at Current book value should match with the FI values

SAP FI Assets: Configuration of Asset Accounting

Step 1 – COPY CHART OF DEPECIATION
T Code: EC08
IMG-->Financial Accounting ----> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organizational Structures and Master Data --> Copy reference chart of depreciation/depreciation area

Step 2 – ASSIGN COMPANY CODE TO CHART OF DEPRECIATION
T Code: OAOB
IMG --> Financial Accounting --> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organizational Structures and Master Data --> Assign chart of depreciation to company code

Step 3 – ASSIGN FINANCIAL STATEMENT VERSION TO EVERY DEPRECIATION AREAT Code: OAYN
IMG -->Financial Accounting --> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organizational Structures and Master Data --> Specify statemement version for asset reports

Step 4 – IDENTIFY YOUR ASSET CLASSES

Step 5 – IDENTIFY YOUR ACCOUNT DETERMINATION & SCREEN LAYOUT FOR YOUR ASSET CLASSESSPRO – IMG --> Financial Accounting --> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organizational Structures and Master Data --> Asset Classes --> Specify required entries for asset master data

Step 6 – IDENTIFY YOUR GL ACCOUNTS FOR YOUR ASSET CLASSES

Step 7 - DEFINE YOUR NUMBER RANGET Code: AS08
IMG --> Financial Accounting --> Asset Accounting --> Organizational Structures --> Asset Classes --> Define number range interval

Step 8 - DETERMINE DEPRECIATION AREAS IN ASSET CLASSES AND SCREEN LAYOUTT Code: A021
IMG --> Financial Accounting --> Asset Accounting --> Master Data --> Screen Layout --> Define screen layout for asset depreciation areas
T Code: OAYZ
IMG --> Financial Accounting --> Asset Accounting --> Valuation --> Determine depreciation areas in the asset class

Step 9 – GENERATE ASSET CLASSES FROM GL ACCOUNTST Code: ANKL
IMG – Financial Accounting --> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organizational Structures and Master Data --> Asset Classes --> Generate Asset Classes from G/L Accounts

Step 10 – COMPLETE DATA FOR ASSET CLASSES SETTING REQUIRED ENTRY FIELDSSPRO – IMG --> Financial Accounting --> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organization Structures and Master Data --> Asset Classes --> Specify requires entries for asset master data
T Code: OAYZ
IMG --> Financial Accounting --> asset Accounting --> FI-AA Implementation Guide (Simplified Version) Organizational Structures and Master Data --> Asset Classes --> Enter default values in asset classes
T Code: AO90
IMG --> Financial Accounting --> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organizational Structures and Master Data --> Assign additional G/L accounts for transactions/depreciation

Step 11 – SETTING UP SPECIAL ASSET CLASSEST Code: OAYK
IMG --> Financial Accounting --> Asset Accounting --> Valuation --> Specify max amount for LVA + asset classes --> Specify amount for low value assets
T Code: OAY2
IMG --> Financial Accounting --> Asset Accounting --> Valuation --> Specify max amount for LVA + asset classes --> Specify LVA asset classes

Step 12 – SPECIFY INTERVALS AND POSTING RULET Code: OAYR
IMG --> Financial Accounting --> Asset Accounting --> FI-AA Implementation Guide (Simplified Version) --> Organizational Structures and Master Data --> Specify intervals and posting rules