Question

Include all appropriate artefacts such as flow diagram, structured table, and others. For Asset Management Process (Acquire-to-Retire)

Answer 1

Asset management is the process of planning and controlling the acquisition, operation, maintenance, renewal, and disposal of organizational assets. This process improves the delivery potential of assets and minimizes the costs and risks involved. Adequate maintenance and proper deployment of systems, people, and processes ensure a positive enhancement of capital over the asset lifecycle. Acquire-to-Retire is a term describing the collection of processes a company has implemented between the acquisition of fixed assets and the disposition of these assets at the end of their usable lifetime for the company.

To mirror the Asset Management application's major processes, this user guide is divided into main parts: Setup, Processing, and Analysis and Reporting. This big picture flow illustrates Asset Management's three main processes, breaks the processes down into sub-processes, and serves as a reminder of where you are in the user guide.

Asset Management Process Flow

The Asset Management application can be broken down into three main processes: setup, processing, and creating reports.

Setup Tasks

Before using the Asset Management application, you must consider your financial and tax reporting needs and determine the asset management structure or architecture that best fits those needs.

When setting up the Asset Management application, you will define the following elements:

• Depreciation books

• Accounts

• Reporting elements

• Depreciation calculation methods

• Addition templates

Processing Tasks

Adjustment Processing

The Asset Management application lets you adjust asset and asset book information for multiple assets. You can adjust some information by asset, including:

• Work in process

• Simulated

• Tax exempt

• Used

• Type

• Account group

• Accounting unit

You can adjust other information by asset book, including:

• Method

• Life

• Remaining Life

• In-service date

• Convention

• Status

• Life years

Transfer Processing

Asset Management lets you transfer whole or partial individual assets. You can also transfer multiple assets in one operation.

You can transfer individual assets to another:

• Company

• Asset group

• Location

• Location detail

• Division

• Type (or type and subtype)

• Account group

• Accounting unit group

• Default accounting unit

You can transfer multiple assets at one time to another:

• Company

• Location

• Division

• Type (or type and subtype)

• Asset group

Disposal Processing

Asset Management lets you dispose of whole or partial individual assets. You can also dispose of multiple assets using a mass approach. You can allocate the total proceeds based on the net asset value or based on the original depreciable basis of the assets.

You can reinstate any disposed assets within the year in which it is disposed. You cannot reinstate an asset disposed in the previous year.

Conclusion:

Asset management is the process of developing, operating, maintaining, and selling assets in a cost-effective manner. Most commonly used in finance, the term is used in reference to individuals or firms that manage assets on behalf of individuals or other entities.