capital project accounting guide - tafe nsw · pdf file1.4 financial reporting timeline ......
TRANSCRIPT
Capital Project
Accounting Guide
TAFE Finance Page 1 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
Contents
1. Compliance Reporting ............................................................................................................................... 2
1.1 Capital Expenditure Program - Authorisation Limits ............................................................................... 2
1.2 Capital Funding ........................................................................................................................................ 2
1.3 Capital Planning Timeline ........................................................................................................................ 3
1.4 Financial Reporting Timeline ................................................................................................................... 3
1.5 Internal Consultation Process .................................................................................................................. 4
2. Operational Requirements ........................................................................................................................ 5
2.1 Creation of Capital Projects in SAP .......................................................................................................... 6
2.2 SAP Terminology ...................................................................................................................................... 6
2.3 Recording Capital Projects ....................................................................................................................... 7
2.4 Project Structures .................................................................................................................................... 8
2.5 Project Data Elements ........................................................................................................................... 10
2.6 Transaction Postings .............................................................................................................................. 11
2.7 Budgets and Forecasts ........................................................................................................................... 13
2.8 Settlement Process ................................................................................................................................ 14
2.9 Reporting ............................................................................................................................................... 15
Appendices ...................................................................................................................................................... 16
Appendix 1: TAFE NSW Minor Works Proposal Template........................................................................... 16
Appendix 2: SAP Project Settlement (Capitalisation) .................................................................................. 17
TAFE Finance Page 2 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
The objective of this guide is to provide information to assist with the management and reporting of capital projects. It is critical that capital expenditure is monitored accurately and consistently to provide accurate reporting and manage potential risks.
1. Compliance Reporting
1.1 Capital Expenditure Program - Authorisation Limits The capital expenditure program and projects are reported in Budget Paper No. 2
Infrastructure Statement for all Government agencies. It provides a four year plan for the Major Capital Works projects i.e. current financial year and three out years for new and work in progress (WIP) Capital Projects
TAFE has a total capital expenditure limit from all funding sources.
NSW Treasury encourages accurate and timely forecasting – April/May, August, October and June are key reporting dates.
TAFE is required to report the TAFE balance sheet on a monthly basis to NSW Treasury and provide a reconciliation to TAFE’s audited financial statements each year. This includes capitalisation of all assets.
TAFE must comply with Treasury approved capital expenditure authorisation limits and seek approval for any adjustments.
The NSW Treasury requirements for changes to major capital works are as follows:
Approval for new major capital works under $5M Ministerial approval is required. A business case, economic appraisal and financial
appraisal must be completed.
Approval for new major capital works over $5M NSW Treasury approval is required. A business case, economic appraisal and financial
appraisal must be completed. If the project is over $10M, it must go through the NSW Treasury Gateway Process.
Changes to an approved Estimated Total Cost (ETC) of under 10 per cent Ministerial approval is required. An updated business case, economic appraisal and
financial appraisal need to accompany the request. The Minister informs the Treasurer.
Changes to an approved ETC of over 10 per cent NSW Treasury approval is required. An updated business case, economic appraisal
and financial appraisal are required. For additional information refer to the Treasury Circular at the link below: TC12-20_Budget_Controls_-_Capital_Expenditure_Authorisation_Limits_dnd.pdf
1.2 Capital Funding TAFE is required to fund capital works from revenue sources. A levy on the business for
future investment should align with the Institute strategic investment plans at any point in time.
Decisions around minor and major capital works should be based on financial viability metrics over the medium to longer term. For example, will the new/enhanced asset support an acceptable return on that investment (ROI) and other financial viability measures?
Regions must generate cash flow from business margins to fund capital projects and state-wide capital projects.
For state-wide capital projects, there may be a requirement for either a contribution from Regions or funding to be held corporately.
Refer to the following Treasury Circulars and Policy Guidelines for further information: o NSWTC15-08_Agency_Carry_Forwards.pdf o NSWTC14-29_Management_of_Contingency_Provisions_for_Major_Projects.pdf o Accounting Policy - Guidelines for Capitalisation of Expenditure on Property Plant &
Equipment o Additional NSW Treasury Guidelines have been published on the TAFE Strategy
and Finance SharePoint site at NSW Treasury Guidelines - All Documents
TAFE Finance Page 3 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
1.3 Capital Planning Timeline The Total Asset Management (TAM) Timeframe is an annual process which includes:
A 10 year Strategic Asset Management Plan (SAMP)
Capital works priorities for the next 10 years (10 Year TAM Plan)
Major Works Business Cases
The timeframes and other useful information for Major Capital Works has been published on the
TAFE Strategy and Finance SharePoint site at the link below:
Asset Management - Major Capital Works
1.4 Financial Reporting Timeline The monthly reporting cycle to NSW Treasury against the current year budget includes tracking against the Estimated Total Cost (ETC) in the Original State Budget. The table below details the monthly reporting cycle and other reporting requirements:
Timing Requirement Responsibility Items
Monthly – 7 days prior to the end of the month.
Reports distributed to Regional Program Managers to confirm cashflows
TAFE Property & Logistics
YTD Expenditure Estimated Total Cost (ETC) Monthly Forecast Forecast Beyond the Current Year by Year
Monthly – approx. last day of the month
Regions submit cashflows Regional Program Managers
YTD Expenditure Estimated Total Cost (ETC) Monthly Forecast Forecast Beyond the Current Year by Year
Monthly-1st Working Day
Monthly Settlement TAFE Finance Expenses transferred from P&L to AUC
Monthly – 3rd Working Day
Extract YTD actuals from SAP and update reports
TAFE Finance YTD Expenditure
Monthly-3rd Working Day
Update SAP BPC TAFE Finance Current Year Monthly Forecast Forecast Beyond the Current Year by Year
Monthly-5th Working Day
SAP BI Reporting published on the TAFE Strategy & Finance SharePoint site
TAFE Finance Current Year Budget Current Year Forecast Forecast Beyond the Current Year by Year YTD Expenditure Estimated Total Cost (ETC)
Monthly-8th Working Day
Report to NSW Treasury TAFE Finance Current Year Budget Current Year Forecast Forecast Beyond the Current Year (consolidated amount) YTD Expenditure Estimated Total Cost (ETC)
Periods 4, 8, 10 and 13 i.e. October, February, April and July.
Requests to Treasury for Carry Forward Adjustments
TAFE Finance Data returns based on YTD expenditure & cash flows
TAFE Finance Page 4 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
1.5 Internal Consultation Process The following consultation process must be undertaken when capital program changes are
required:
Assess business and 1. Identify additional or amendments to
financial viability requirements
2. Review Business Case Scope/Contract
arrangements
3. Sign off from Regional General Manager
Decision to proceed
Email Request
`
Assess impact on ETC limits Assess Business Scope/Contract
and possible variation requirements
Decision to proceed
Inform Institute
TAFE Regional General Manager
TAFE Regional Program Manager
YES NO
TAFE Finance TAFE Property &
Logistics
YES NO
TAFE Finance Page 5 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
2. Operational Requirements The table below summarises the operational requirements to enable accurate management and reporting:
Timing Requirement Responsibility
Once approved Create Projects and WBS elements.
Refer to Section 2.1
TAFE Finance
Monthly Review and update of the status of works in progress.
Refer to Section 2.5
TAFE Finance
Last day of the month
(MANDATORY)
Final transactions to SAP WBS Elements i.e. journals for the month.
All
Day 1 of each month
(MANDATORY)
Monthly Settlement in SAP.
Refer to Section 2.8.
TAFE Finance
Project Completion Final Settlement (Capitalisation) in SAP:
TAFE Finance to capitalise centrally managed
major works projects
Regions to capitalise Institute managed major and
minor works projects.
Refer to Section 2.8.
TAFE Finance & Regions
TAFE Finance Page 6 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
2.1 Creation of Capital Projects in SAP When funding is allocated for Capital Projects and Capital Equipment Purchases, a project and Work Breakdown Structure (WBS) code is established in SAP to comply with budgeting and reporting requirements. SAP Capital Projects are used for the construction of capital assets and encompasses the purchase of land and/or the construction of a building or facility. All types of projects are required to be advised to TAFE Finance prior to commencement to be included in the forecasting and reporting cycle. Types of projects are detailed in the table below:
Project Type Description Process Responsibility
Major Works Projects with an ETC of more than $500,000 listed in the Budget Papers.
Created directly in SAP using the Project Accounting module.
TAFE Finance
Minor Works Projects with an ETC of less than $500,000 approved by the Minister. The template for Minor Works Proposals is included at Appendix 1 and an editable version is located on the TAFE Strategy and Finance SharePoint site at 2016_17 TAFE NSW Minor Works Proposal Template.docx.
Projects are created directly in SAP following the guidelines in this document in compliance with naming conventions etc.
TAFE Finance
Asset Purchase Projects
Purchases of individual assets over $10,000 as per accounting policy
Created directly in SAP using the Project Accounting module.
TAFE Corporate Units and Institutes
2.2 SAP Terminology Project – a framework used to track the cost of an activity or program over a period of time.
Project Mask – a coding system that has been created to quickly identify different types of projects and to support reporting e.g. CTP – Capital TAFE Project.
Project Definition – (or project ID) is at the top of the project structure and contains key details about the project. WBS Element – work breakdown structure which contains critical financial data to capture the cost of the project.
Settlement rules – an instruction for the system to transfer amounts to an Asset Under Construction (AUC) and subsequently to a final asset.
TAFE Finance Page 7 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
2.3 Recording Capital Projects The Project System within SAP Finance is used to maintain and monitor all aspects of a project.
Project creation can be undertaken by: 1) Creating manually –
The work instructions at the link below will assist with the manual creation of Capital Projects in SAP: Work Instruction: FIN5026 - CJ20N Create Capital Project
2) Copying from an existing capital project –
o Follow the Work Instruction linked above but at Step 6 select “Copy project”. The following screen will display:
o After selecting the next available Project Definition code, this option allows you to enter a new description, the Project Profile i.e. DEC Capital Project and the Project Definition code that you wish to copy. The Finish Date can be entered at this stage or it will default to the current date which will need to be amended or deleted on the project.
o Once created, fields i.e. cost centre will need to be updated and existing settlement rules deleted.
3) Using a template –
Templates can be created for projects that use the same hierarchical structure. These need to be created with no settlement rules but the data elements applied i.e. cost centres will need to be edited.
The status of the project needs to be changed to Release from the top level after a project is created, checked and ready for use. Releasing and saving a Capital project will prompt the system to automatically create an AUC for this project. Once released, the project can’t be changed.
TAFE Finance Page 8 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
Use the guidelines in this document to ensure consistent reporting. Specific naming conventions (Project Masks) are used for Projects and WBS elements:
CTP – Capital TAFE Projects – captures costs of major and non AMU minor works projects. Major Works Projects are created through TAFE Finance.
CTM – Capital TAFE Projects (AMS) – used for capital minor works interfaced from the Asset Management System through Asset Management Directorate (AMD).
CTA – Capital TAFE Assets – for purchase of TAFE assets that are not constructed or developed and are valued at or over $10,000.
RTP – Recurrent (Operational) TAFE Projects – captures costs of specific operational projects. These must be tagged as for statistical i.e. for reporting purposes only and do not require settlement.
2.4 Project Structures WBS elements are used to separate expenditure components in the project structure, for example:
Planning costs
Building works
Contracted Fees
Furniture and equipment. A project structure can consist of WBS with different project masks i.e. can include CTP and RTP.
TAFE Finance Page 9 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
The structure for TAFE Major and Minor Capital Projects (CTP) in SAP is below:
Project Definition: CTP/00XXXX – Project
WBS Elements: CTP/00XXXX-01 – Project
CTP/00XXXX-01-01 – Building Work
CTP/00XXXX-01-01-01 – Construction
CTP/00XXXX-01-01-02 – Offsite Infrastructure
CTP/00XXXX-01-01-03 – Works Insurance
CTP/00XXXX-01-01-04 – Other Works
RTP/00XXXX-01-01-05 – Demolition
RTP/00XXXX-01-01-06 – Make Good
CTP/00XXXX-01-02 –Contingency
CTP/00XXXX-01-03 – Other Costs
CTP/00XXXX-01-03-01 – Statutory Fees
CTP/00XXXX-01-03-02 – Disbursements
CTP/00XXXX-01-03-03 – Relocation costs
CTP/00XXXX-01-03-04 – ICT
CTP/00XXXX-01-04 – Fees – Consultants
CTP/00XXXX-01-04-01 - Architect
CTP/00XXXX-01-04-02 – Interior Designer
CTP/00XXXX-01-04-03 – Project Management
CTP/00XXXX-01-04-04 – Quantity Surveyor
CTP/00XXXX-01-04-05 – Engineers
CTP/00XXXX-01-04-05-01 – Structural
CTP/00XXXX-01-04-05-02 – Mechanical
CTP/00XXXX-01-04-05-03 – Hydraulic
CTP/00XXXX-01-04-05-04 – Electrical
CTP/00XXXX-01-04-05-05 – Fire
CTP/00XXXX-01-04-05-06 – Civil
CTP/00XXXX-01-04-06 – IT Consultants
CTP/00XXXX-01-04-07 – BCA Consultant
CTP/00XXXX-01-04-08 – Access Consultants
CTP/00XXXX-01-04-09 – Landscape Architect
CTP/00XXXX-01-04-10 – Planning
CTP/00XXXX-01-04-11 – Heritage
CTP/00XXXX-01-04-12 – Legal
CTP/00XXXX-01-04-13 – Other
CTP/00XXXX-01-04-13-01 – Traffic
CTP/00XXXX-01-04-13-02 – Acoustic
CTP/00XXXX-01-04-13-02 – Audio Visual Consultant
CTP/00XXXX-01-04-13-02 – Graphic Designer
CTP/00XXXX-01-04-13-02 – ESD Consultant
CTP/00XXXX-01-06 – Fees - Forward Planning
CTP/00XXXX-01-07 – Furniture and Equipment
CTP/00XXXX-01-07-01 – Capital Furniture and Equipment
RTP/00XXXX-01-07-02 – Recurrent Furniture and Equipment
TAFE Finance Page 10 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
Projects can be created with a combination of CTP and RTP WBS Elements as shown in the structure on the previous page. The structure for assets (CTA) projects requires a Project Definition and at least one WBS Element, for example:
2.5 Project Data Elements The Project Definition level of each Project is set up with the following:
Company – TAFE is 1020.
Plant – specific for TAFE Corporate and each RTO.
Location – specific for TAFE Corporate and each RTO.
Profit Centre – specific for TAFE Corporate and each RTO.
User Status – will default to INIT i.e. Initial but must be amended to NEW, WIP and COMP as the project progresses:
Every WBS elements is set up with the following attributes to support reporting.
Basic Data includes: o Project Type i.e. Major Capital, Minor Capital, ICT Projects, Recurrent Operational,
etc. o Person Responsible – not mandatory. o Responsible Cost Centre – same as the requesting cost centre for Capital Projects. o Requesting Cost Centre – drives postings and workflow. o Operative indicators – check boxes to specify postings allowed on the WBS.
Defaults to Acct asst elem which can’t be deselected. No other items are required for Capital projects. The Billing element is only allowed on stand-alone Recurrent projects.
Assignments: o Object Class – should be Investment o Investment profile (only required on Level 1 WBS Elements) – determines the AUC
category and allows for reporting of categories of assets, including: Z00002 – DEC: Intangibles Z00005 – DEC: Land Z00006 – DEC: P&E Z00007 – DEC: Building
Not required to be entered on the lower level WBS Elements. o Investment reason – defaulted from the selection of the Investment profile. o Recurrent WBS Elements must be flagged as “Statistical”.
TAFE Finance Page 11 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
DEC Specific Fields: o Local Govt Area and State Electorate o Program & Sub Programs specify the nature of the project, for example:
Program Code Program Name
Sub Program Code Sub Program Name
8024 Non PMM Major Building Projects (TAFE) 9030 Major Works Central (TAFE)
9031 Major Works Institute (TAFE)
9032 Online Projects (TAFE)
282 TAFE Minor Works (from AMS) 283 Minor Building Projects
284 Sites
285 Building Equipment
286 General Equipment
287 Architectural Services
288 Computers
289 National Art School
297 ICT Infrastructure
8028
Non PMM Minor Works (TAFE)
9035 9036 9037 9038 9038 9040
Minor Building Projects Sites Building Equipment General Equipment Architectural Services Computers
8025 Other Funded Works 290 Other Funded Works
o Product Line – used for reporting Major and Minor works, including: 1500 = Major Construction – State Fund 900 = Major IT – State Fund 700 = Other Minor – State Fund
o Fund - fund codes are assigned to each WBS Element, including: 400 = State Funded Projects (TAFE Funded Majors and Minors) 302 = Equipment 842 = Commercial Activities Accumulated Funds
o Funding Year – year the project funding started o Project Region – codes for each Institute and State Office.
2.6 Transaction Postings Postings to Capital WBS elements i.e. shopping cart and journals default to the Cost Centre
and Fund Code set up in the Project.
Monthly settlement is run on the day after the last day of the month. There must be no postings to WBS elements i.e. journals after the last day of the month.
Journal processing - all Transfer Intra and Operating Expenses accounts (i.e. 500084-88 & 528799) should not be used when transferring expenses to Capital projects (WBS). Capital Expenses must be charged against Capital GL accounts (e.g. 522869 Construction Non Contract).
Expenditure captured by capital projects in SAP must comply with project accounting
standards in AASB138 regarding capital and recurrent expenditure.
Capital transactions should use the following tax codes:
o C1 Capital expenditure (includes GST)
o C2 Capital expenditure GST-free
TAFE Finance Page 12 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
All expense accounts can be used with Capital WBS Element.
Institute should regularly review the transactions against the specific construction related
GL Accounts listed below:
o 522861 – Construction Fees Regular
o 522862 – Construction Fees Forward Plan
o 522868 – Construction Costs – Contract
o 522869 – Construction Costs – Non Contract
o 522901 – Construction Fees – Non Contract
o 522902 – Construction Contract Contingency
o 522903 – Client Contingency
o 522904 – Master Planning Fees
o 522905 – Construction - Siteworks
o 523580 – Equipment - Items
o 523581 – Furniture – Items
The table below details the end to end of a capital transaction:
Transaction
Document Types
GL Postings
Reporting Elements
Cost Centre
Profit Centre
Purchases/expense postings made against a Capital Project i.e. Capital WBS Element at any level of the project can be used.
WE
SA
ZA
IS
DR
CR
Relevant expense account 5xxxxx
Vendor/Bank
Yes Yes
Monthly Settlement moves all costs from the P&L to the AUC
AA DR AUC accounts -152520 157501 157502 180020
No Yes
(Note: all settlement is posted to the top level WBS element)
CR Expense account 5xxxxx
Not reported if
not entered in
the PO
Yes
Final Settlement moves the costs from the AUC to the settlement object i.e. asset, cost centre
AA CR AUC accounts - 152520 157501 157502 180020
No Yes
(Note: all settlement is posted to the top level WBS element)
DR Asset accounts- 152501 155001 to 155005
No Yes
TAFE Finance Page 13 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
2.7 Budgets and Forecasts In year Budgets and Forecasts as well as the Original Estimated Total Cost (ETC) in the State Budget and the Revised ETC are entered for each Capital Project in SAP BPC by TAFE Finance.
The web based training and work instructions at the links below provide instructions for entering Capital ETCs and Budgets in SAP BPC:
Business Planning and Consolidation Solution
How to input Original ETC and Budget
How to revise Original ETC and Budget
How to run CAPEX budgeting reports
All capital expenditure is required to be within the TAFE Authorisation Limit, notwithstanding revenue sources.
These can be entered at the top level WBS element or on each WBS element for a project.
Budget version BTC and Forecast version FTC are used. They do not roll up into the cost centre budgets and forecasts but are reported separately. The SAP BI Project Cash Flow report located in the SAP Portal Reports tab can be used to monitor actuals against the ETC, budgets and forecasts of specified projects.
Forecasting is critical in the cash management of the TAFE capital program. Accurate and timely information is required to monitor capital expenditure.
Each month templates are distributed to each Region listing both major and minor works projects. This has been designed to capture the forecast for each project by month for the current financial year and each full year onwards for the life of the projects.
The following timeline will be implemented for current Major and Minor Capital Works:
Timing at month end Requirement Responsibility
Minus day 7 Cash flow templates update and circulation TAFE Property & Logistics
Minus day 3 Return template to TAFE Property & Logistics Institutes and TCS
Day 5 Finalise capital report with updated forecasts TAFE Finance/TAFE Property & Logistics
TAFE Finance Page 14 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
2.8 Settlement Process Expenses need to be settled monthly to transfer costs to the AUC. Final settlement must be
performed when the project is completed.
Monthly Settlement: All capital projects are automatically set up with the first level settlement rule that transfers
all costs from the Profit & Loss area to the AUC. The rule will debit the AUC and credit the
expense account. This rule is run at the end of each month and is the rule that can be seen
in the project. Do not alter this rule in any way. This process is run by TAFE Finance.
Final Settlement (capitalisation) This process transfers the costs from AUC to the final asset when projects are completed
and/or the asset or equipment are ready for use. It is run to:
o Capitalise the costs of a component of a large/long term project e.g. a section of a large
building project
o End and close a project - it is important to clear completed projects from AUC as soon
as a project is completed. Assets cannot start depreciating until the Project or WBS is
settled. Refer to the Capitalisation Guideline on the TAFE Intranet for more information.
The status of Capital Projects can be changed to Technically Completed (TECO) to avoid
further transactions posting against the project.
The steps for final settlement are:
1. Ensure that there are no open purchase orders by running and reviewing SAP report
CJI5.
2. Asset creation – the asset creation process is critical to the settlement process as any
inaccurate information input during asset creation will cause the settlement of the asset
to be affected. Create the asset using the SAP Asset and equipment maintenance
request form located on the Finance Tab of the SAP Portal.
3. Establish settlement rule – a rule is created for final settlement of the project to the
newly created asset using CJ20N. The rule can be allocated to the asset by percentage
or amount. Status must be set to Technically Complete otherwise system will not
perform the final settlement.
4. Finalise settlement – perform final settlement to transfer costs from the AUC using
transaction code CJ88. The total dollar amount must be settled to a Fixed Asset by
allocating a dollar value or a percentage against it, either to:
A building Asset already created in SAP
An Asset Record – for asset purchases. Ensure that separate assets are created for
each equipment item and a settlement rule created for each asset, for example:
TAFE Finance Page 15 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
5. Close the project – when the project has been completed and settlement finalised the
status of the project is changed to Closed at the Project Definition level in CJ20N.
This process can be completed by officers with the SAP Project Manager role.
Refer to Appendix 2 for detailed procedures for final settlement.
2.9 Reporting SAP GUI Reports:
CJI3 – Project Actual Cost Line Items
Displays line items that have been posted against projects and WBS elements.
CJI5 – Project Commitment Line Items
Displays commitments against projects and WBS elements.
CN41N – Project Structure Overview
Displays the structure of a project.
CN43N – Overview: WBS Elements
Displays the WBS elements and levels set up for a project and the assigned data elements.
ZAM_AS_EQ_DET – Assets and Equipment Detail Report.
Lists asset master details.
ZRFI_AUC_RECON – Asset Under Construction Reconciliation Report.
Displays opening and closing balances, postings i.e. additions in the current financial year and settlement values for assets under construction. You can drill down from the reports listed above to the original posting document by double clicking the line items display on the screen.
SAP BI Reports: The reports in the screen shot below are listed in the SAP Portal Reports Tab under Projects and Assets:
For further information refer to the SAP Finance Training at the link below: FIN5031_WBT_Reporting v0.2
TAFE Finance Page 16 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
Appendices Appendix 1: TAFE NSW Minor Works Proposal Template
TAFE NSW Minor Works Proposal – 2016/17 TAM
Institute: {insert Institute name}
Campus: {insert campus name}
Project Name: {insert a short project name}
Institute Priority: {insert Institute priority}
e.g. Priority 1 of 4 minor works
Estimated Total Project Cost:
{insert the estimated cost of construction plus fees up to a limit of $500,000, not including furniture and equipment}
e.g. $300,000 (plus $75,000 furniture and equipment)
Project Description: {insert a project description}
Project Rationale: {insert the rationale of the project}
Strategic Priority(ies):
{tick relevant strategic priority(ies) that is being address }
NOTE: It is anticipated that each project will meet some of the criteria for Strategic Priority 1. All projects must meet at least one of the two criteria for Strategic Priority 2. In addition, one or more of Strategic Priorities 3 to 6 may be met.
□ SP1: Implementing improvements that increase utilisation, efficiency, service and customer satisfaction
□ SP2: Demonstrating that the demand for training services cannot be met efficiently with the assets (facilities, ICT and plant) available and an assessment of nearby assets from third parties (industry, employers or other providers) indicates that they do not meet requirements or are unavailable
□ SP3: Supporting Institute specialisation in line with Institute and TAFE NSW business directions
□ SP4: Delivering industry-standard assets (facilities, ICT and plant) to meet demand for training
□ SP5: Developing more partnerships with third parties (industry, employers or other providers) to support skill needs and pathways to higher education or employment opportunities
□ SP6: Delivering safe and sustainable training assets (facilities, ICT and plant)
{describe and provide evidence on how the proposed project will meet and address the nominated strategic priority(ies) and align with the TAFE NSW Statement of Owner Expectations}
Relation to other nominations:
{Does this relate to, or has it been included in, another major or minor capital works nomination (for example, is this project part of a series of related capital works on the college site?}
Site Ownership: {Is the site owned by TAFE?}
Proposal Prepared by:
{insert the author of this proposal and contact phone number/email}
Proposal Approved by:
{Insert the name of the Institute approving officer and date approved}
Date:
Regional Asset Planner:
{insert the name of the relevant Regional Asset Planner}
Date: {insert the date of this proposal}
TAFE Finance Page 17 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
Appendix 2: SAP Project Settlement (Capitalisation) This process transfers the costs from AUC to the final asset. It can be run at any time during the
project but particularly to:
Capitalise the costs of a component of a large/long term project e.g. a section of a large
building project
End and close a project - it is important to clear completed projects from AUC as soon as a
project is closed. Assets cannot start depreciating until the Project or WBS is settled.
The steps for final settlement are:
1. Ensure that there are no open purchase orders by running SAP report CJI5:
o Enter the Project code.
o Change the posting date to blank for the first box.
o Select a layout e.g. 2SAP to display project commitments. Additional fields or
alternate layouts can be used to provide further information i.e. document numbers.
The report will be displayed:
Open items will need to be cleared before settlement.
TAFE Finance Page 18 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
2. Asset creation – the asset creation process is critical to the settlement process as any
inaccurate information input during asset creation will cause the settlement of the asset to
be affected.
o Determine if an asset already exists i.e. existing building. Open report
ZAM_AS_EQ_DET, enter company code 1020, enter the Plant i.e. TAXX which will
define the Institute/TAFE Corporate. Run Report. This will generate a list of all
assets at the selected Plant. The layout can be changed to display the required
information.
o Create the asset using the SAP Asset and equipment maintenance request form
located on the Finance Tab of the SAP Portal.
A form is to be completed for each asset. Shared Services will advise the asset number
when created.
3. Establish the settlement rule – when the asset number has been created, a new settlement
rule needs to be created in the project. The settlement rule will be used to move the project
TAFE Finance Page 19 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
funds from the AUC to the asset. At this stage it is wise to check the project balance in SAP
report CJI3 as this is the amount that will be capitalised.
To set up the final settlement rule, go to the project builder screen CJ20N and open the
project by entering the WBS number.
The screen will open the project at the top level. You need to select the lower level WBS
and then right click on the screen. Select “Settlement rule”.
The settlement rule screen will display. All capital projects with expenditure are
automatically set up with the first level settlement rule that transfers costs from the P&L to
the AUC when monthly settlement is run at month end. The lower levels are set up with a
rule to settle to the upper levels. Do not alter these rules in any way.
TAFE Finance Page 20 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
A new rule needs to be created on the next row. Enter or select from the drop down list:
The relevant data will need to be entered as the Settlement Receiver i.e. type in the cost
centre, asset number, GL account or WBS element in the second box in the row. Press
enter and the remainder of the line will populate. Note that the description of the asset has
been entered and the % field is 100%, settlement is FUL and the sequence is No 2. Check
these details and edit if required e.g. edit the percentage or enter an amount instead of a
percentage. Select the green back arrow and, on the next screen, press the Save icon.
Reselect the lower level WBS element.
Ensure that separate assets are created for each equipment item and a settlement rule
created for each asset, as shown above. Building costs and equipment costs should be
settled to separate assets.
Change the status of the project to Technically Complete by selecting he menu item Edit,
Status, Complete Technically, Set and then the Save icon. The status of Capital Projects is
changed to Technically Completed (TECO) to avoid further transactions posting against the
project.
TAFE Finance Page 21 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
4. Finalise settlement – perform final settlement to transfer costs from the AUC using
transaction code CJ88. Enter the Project or WBS element, select the appropriate settlement
period and fiscal year and check the Detail List check box and select Execute.
You will get yellow error messages. Accept them and move on. If successful, the following
screen will appear. Go back via the green back icon, uncheck the Test Run check box and
run the job as final. The icon can be selected for further information.
TAFE Finance Page 22 of 21 July 2017 TSAF-Finance/TAFEFin/Procedures & Manuals/SAP/Project Accounting
5. Close the project – The costs have now been transferred from AUC to the final asset. The
final step is to go back to the project and set the status to Closed. Select project builder
CJ20N, open the project by entering the WBS element. The screen will open the project at
the top level. Select the lower level and change the status of the project to Close by
selecting the menu item Edit, Status, Close, Set and then the Save icon.
Select the top level of the project and repeat the selection to close the project.