RD.

050 BUSINESS REQUIREMENTS SCENARIOS

ORAERP INC.
Fixed Assets

Author:
Creation Date:

02-June-13

Last Updated:

02-June-13

Document Ref:

RD050_FA

Version:

1.0 Final

Approvals:
NAMES

FOR CORE BUSINESS PROCESS

RD.050 Business Requirements Scenarios

Doc Ref: RD.050
Ver.1.1 Final

Document Control

Change Record
1
Date

Author

29May-13

Versi
on

Change Reference

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

RD.050 Business Requirements Scenarios

Doc Ref: RD.050
Ver.1.1 Final

Name

Position

Distribution
Copy
No.

Name

Location

1
2

Note to Holders:
If you receive an electronic copy of this document and print it out, please
write your name on the equivalent of the cover page, for document control
purposes.
If you receive a hard copy of this document, please write your name on the
front cover, for document control purposes.

RD.050 Business Requirements Scenarios

Doc Ref: RD.050
Ver.1.1 Final

DOCUMENT CONTROL.......................................................................................2
1

BUSINESS PROCESS IDENTIFICATION.........................................................4

1.1 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

FIXED ASSETS PROCESS FLOW DIAGRAMS.................................................17

2.1 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

.................................................................................................................

RD.050 Business Requirements Scenarios

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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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Scope
The 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 Information
A 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

special issues

on requirement of standard functions,

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

Mapping Team: ORAERP COM INC

Business Function: Fixed Assets structure

Date: June-02-2013
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

Proces
s ID #

Description

Type

FA001.0
1

ADCB will have multiple Corporate

Asset Books basing on the business
unit

Internal System
Assisted

FA001.0
2

Asset will be categorized into Company,

Major Category and Minor Category.
This division will be based on the
subsidiary company and asset type

FA001.0
3

Asset will be located based on

Company, Branch, Location, SubLocation, Department and cost centre.
(Fro instance)

Elementary
Business
Function

Result

Agent

Status

Asset Book

One Corporate
assets book is
created

Finance
Team

Active

Internal System
Assisted

Asset
Addition

Categorization of
Asset

Finance
Team

Active

Internal System
Assisted

Asset
Addition

Location of asset
details

Finance
Team

Active

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1.2 Asset Addition (FA002)

Process: Asset Addition

Business Function: Fixed Assets

Mapping Team: ADBC Company

Librarian:

Date: June-02-2013
Process Owner: Finance Team

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

Process
ID #

Description

Type

Elementary
Business
Function

FA002.01

Raise a Purchase Order for purchase

of Fixed Assets

Internal System
Assisted

FA002.02

Receive the Asset from the Vendor.

Internal System

Result

Agent

Status

Asset
Addition

Purchase Order
issued for
required asset.

Purchase
Team

Active

Asset

Material

Purchase

Active

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Process
ID #

Description

Type

Elementary
Business
Function

Result

Agent

Assign Asset Number and Tag

number.

Assisted

Addition

Received Note

Team

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

Capitalization asset or CIP asset.

Internal System
Assisted

Asset
Addition

Type of Asset

Finance
Team

Active

FA002.11

Identify the Employee to which the

asset would be attached.

Internal System
Assisted

Asset
Addition

Asset is created
and asset id is

Finance
Team

Active

Status

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Process
ID #

Description

Type

Elementary
Business
Function

Result

Agent

Status

generated
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

1.3 Asset Depreciation (FA003)

Process: Asset Depreciation

Business Function: Fixed Assets

Mapping Team: ADBC Company

Librarian:

Date: June-2-2013
Process Owner: Finance Team

Priority (H, M, L): High

Core (Y/N)Yes

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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

Elementary
Business
Function

Result

Agent

Status

FA003.01

ADBC follows monthly depreciation

calendar

Internal Manual

Asset
Depreciation

Calendar

Finance
Team

Active

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

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Ver 1.1 Final

Process
ID #

Description

Type

Elementary
Business
Function

Result

Agent

Status

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

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

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

FA003.08

Active

Active

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1.4 Asset Transfer (FA004)

Process: Asset Transfer

Business Function: Fixed Assets

Date: June.02.2013

Mapping Team: ADBC Company

Librarian:

Process Owner: Finance Team

Priority (H, M, L): High

Core (Y/N)
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

Mechanisms: System Assisted

Type: Transaction

Source Agent: Finance Team

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Process
ID #

Description

Type

Elementary
Business
Function

Result

Agent

Status

FA004.01

System should allow Reclassification

of Asset from one category to
another category

Internal System
Assisted

Asset
Reclassification

Reclassificati
on 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 Center

Internal System
Assisted

Asset Transfer

Transfer of
Asset

Finance
Team

Active

1.5 Asset Retirement (FA005)

Process: Asset Retirement

Business Function: Fixed Assets

Mapping Team: ORAERP COM INC

Librarian:

Date: June-02-2013
Process Owner: Finance Team

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

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Event

Description:
When the assets life is completed and cant be used anymore/ damaged/ theft...
Number:FA.005

Type: Transaction

Source Agent: Finance Team

Mechanisms: System Assisted

Process
ID #

Description

Type

Elementary
Business
Function

Result

Agent

Status

FA005.0
1

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 system

Finance
Team

Active

FA005.0
2

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

FA005.0
3

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

FA005.0
4

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

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Process
ID #
FA005.0
5

Description

Elementary
Business
Function

Type

Create Journal Entries for the

retirement of the Asset and post it to
General Ledger.

Internal System
Assisted

Asset
Retirement

Result
Records the
Journal
Entries into
System

Agent
Finance
Team

Status
Active

1.6 CIP Capitalization (FA006)

Process: CIP Capitalization

Business Function: Fixed Assets

Mapping Team: Wipro Team

Librarian:
NASS Project Manager

Date: August 26, 2010

Process Owner: Finance Team

Priority (H, M, L):

High

Core (Y/N)
Yes

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

Mechanisms: System Assisted

Type: Transaction

Source Agent: Finance Team

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Ver 1.1 Final

Proces
s ID #

Description

Type

Elementary
Business
Function

Result

Agent

Status

FA006.
01

Identify the CIP Assets that are to be

capitalized

Internal Manual

CIP
Capitalization

Assets are
identified for
capitalizatio
n

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

1.7 Asset Inquiry (FA008)

Process: Asset Enquiry

Business Function: Fixed Assets

Mapping Team: ORAERP COM INC

Librarian:

Date: June-2-2013
Process Owner: Finance Team

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:

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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

Proces
s ID #

Description

Type

Elementary
Business
Function

Result

Agent

Status

Finance Team
FA008.
01

Enter enquiry criteria in terms of Asset

detail /Books/assignment etc

Internal System
Assisted

Asset Enquiry

Criteria
entered to
query the
assets

Active

Finance Team
FA008.
02

Listing Assets basic information

Internal System
Assisted

Assets Enquiry

Assets
details are
listed based
on entered
criteria

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.

Asset source line enquiry, PO, Invoice

Internal System

Asset source line

Asset source

Finance Team

Active

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Proces
s ID #

Description

Type

Elementary
Business
Function

Result

04

and supplier

Assisted

details enquiry

line details
are listed

FA008.
05

Asset book enquiry, Cost and

depreciation

Internal System
Assisted

Asset assigned
book details
enquiry

Asset book
details are
listed

Agent

Finance Team

Status

Active

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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

2.1 Fixed Assets Configuration

RD.050 Business Requirements Scenarios

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2.2 Mass Additions Process Flow

RD.050 Business Requirements Scenarios

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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

RD.050 Business Requirements Scenarios

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2.6 Depreciation and Month end Process

RD.050 Business Requirements Scenarios

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RD.050 Business Requirements Scenarios

Doc. Ref: RD.050

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3. Open and Closed Issues for this Deliverable

Open Issues
ID

Issue

Closed Issues

Resolution

Responsibility

Target Date

Impact Date

RD.050 Business Requirements Scenarios

Doc. Ref: RD.050

Ver 1.1 Final

ID

Issue

Resolution

Responsibility

Target Date

Impact Date