Unit 8 - Internal Orders, Fixed Assets, and Enterprise Asset Management (EAM)

The transaction type in an addition to the asset posting keys _________________ (debit) and _______________ (credit) must be included when posting to an asset account. The transaction type is necessary for asset accounting because it specifies exactly where the asset posting is listed on the asset history sheet.

1) 70 2) 75

During a settlement, the _____________ incurred on an internal order are allocated to one or more _____________. The system automatically generates offsetting entries to credit the ____________.

1) Actual Costs 2) Receivers 3) Internal Orders

Within a fixed asset record:

1) All postings made for the asset (acquisition, retirements, depreciation, etc.) are applied in the assigned company code and business area. 2) You can assign the asset to various controlling (CO) objects (cost center, internal order, activity type, etc.) and logistic organizational units (for selection purposes only).

Some asset postings are as follows:

1) Buying and selling 2) Credit memos 3) Acquisitions from internal productions 4) Adjustment posting 5) Retirements without revenue 6) Depreciation and appreciation

In internal order settlements, there are the following options for settlements:

1) By cost element or settlement cost element 2) Settlement rule for all cost elements or differentiated based on origin layout 3) Distribution percentage / amount / equivalence / number

The structure indicator for a functional location consists of the following input fields:

1) Coding template (used to control the characters that may be used for identification) 2) Hierarchy levels (used to define which level ends at which character)

By recording _____________ and _______________, you can compare the funds you have allocated to your planned or budgeted costs to determine funds availability.

1) Commitments 2) Actual costs

The features of a commitment are as follows:

1) Commitments for future costs is created in the purchasing function of the Material Management (MM) component. A commitment is automatically recorded when you assign an overhead cost to a purchase requisition or a purchase order line item. 2) Commitments can be reduced by posting a goods receipt against the purchase order. Actual costs are posted to the internal order. This process continues until the purchase order is closed and the commitment is reduced to zero. 3) Commitment management needs to be activated in Management Accounting for each controlling area.

In an asset class, you can define certain ______________ and _____________ for depreciation and other master data.

1) Control parameters 2) Default values

To create a material BOM, you must perform the following tasks in this sequence:

1) Create a material 2) Create a material BOM for the material 3) Assign a BOM to one or more technical objects (equipment or functional location)

You can ensure integrations between asset accounting (FI-AA) and plant maintenance (PM) by synchronously creating or changing ____________ and _______________.

1) Equipment 2) Asset

What are the views within an equipment master record in the standard system?

1) General 2) Location 3) Organization 4) Structure

What are the following views within a functional location master record?

1) General (classification, object, reference data, or manufacturer data) 2) Location (location data, or address) 3) Organization (account assignment such as company code and cost center or organizational responsibilities such as maintenance planning plant) 4) Structure (structure indicator, higher-level functional location, or equipment)

Describe the process between Internal Orders, Fixed Assets and Enterprise Asset Management (EAM):

1) Internal orders can be used to collect costs for different classes of assets 2) In the internal order settlement, the system transfers the costs from the internal order to the asset master record (balance sheet). 3) At final settlement, these costs represent the acquisition value of the assets (fixed asset) 4) Once a fixed asset record is created or saved, an equipment record can be created in Enterprise Asset Management (EAM)

During fixed asset integration the following happens:

1) Internal orders that were temporary cost collector for costs pertaining to either the purchase of a fixed asset or the construction of a fixed asset. - in Management Accounting All these costs, or in some cases, a percentage of these costs, represent the acquisition value of the fixed asset. 2) Through order settlement these costs are transferred from the internal order to the asset master record (fixed asset). - to Financial Accounting

You can link a piece of equipment with a ______________ so inventory will be in place. If you want to create an equipment using MM you can create a material with ________________.

1) Material 2) Serial Number

The categories of maintenance BOMs are as follows:

1) Material BOM 2) Equipment BOM 3) Functional Locations BOM

Describe the maintenance notification structure:

1) Notification Header 2) Notification item (Damage location, Damage, Cause of damage) 3) Activities (the work performed for the notification) 4) Tasks (describe the activities that are pending or haven't started yet - also can be used for planning purposes to monitor the execution)

What are the steps within the maintenance notifications process?

1) Notifications (malfunctions and other requirements are recorded) 2) Planning (orders are created and planned based on requirements) 3) Control (Order run through checks, such as material availability checks and capacity planning) 4) Execution (Order is executed and material is withdrawn) 5) Completion (partial steps are executed)

Internal orders can be grouped into the following general categories:

1) Overhead orders 2) Investment orders 3) Accrual orders 4) Orders with revenue

In the SAP standard, various standard workflows (workflow models and tasks) are provided for enterprise asset management (EAM, which is the _________ component. You can activate, configure, or use the workflows in their standard version. However, they can also be adapted and expanded according to ___________________.

1) PM (Plant Maintenance) 2) Customer requirements

Internal orders can be used for the following?

1) Planning 2) Collecting 3) Monitoring 4) Allocating costs

Maintenance planning and execution may occur in the same plant or in a different plant in the following ways:

1) Plant-specific planning 2) Cross-plant planning 3) Other constellations

You can structure a functional location according to the following criteria:

1) Spatial (such as building 1 and building 2) 2) Technical (such as press frame, press hydraulics or conveyor belt) 3) Functional or process-oriented (such as computer room or a pump room)

The maintenance BOM has the following important functions:

1) Structuring of the objects 2) Spare parts planning in the order 3) Spare parts planning in the task list

What are examples of partial steps within the completion step in the Maintenance notification process?

1) Time confirmation 2) Technical confirmation 3) technical completion

You should always create an equipment master record for a technical object in the following situations:

1) To manage individual data for an object 2) To breakdown, planned, or preventive maintenance tasks for an object and need to record them 3) To collect an evaluate technical data for an object over a long period of time 4) To monitor the cost of maintenance task for an object 5) To record the usage time of an object at functional locations

You should use functional locations to structure your system in the following manner:

1) To represent the structures of the technical systems in your company according to functional criteria 2) To perform and record maintenance tasks for certain parts of your technical system 3) To store technical data for certain parts of your technical system and evaluate this data over a long period of time 4) To monitor the cost of maintenance tasks for certain parts of your technical systems 5) To analyze the effects of usage conditions on the likelihood of damage to the installed equipment

What can be viewed within Asset Explorer?

1) Transactions that have been posted to the asset 2) Depreciation parameters 3) Book values 4) Planned values 5) Overview of posted / planned depreciation per depreciation area, per period, for each fiscal year

Assets that do not appear in the same line item of the balance sheet (such as building and equipment) must be assigned to different asset class. There is at least one special asset class for assets ____________________ and one asset class for __________________ assets.

1) Under construction 2) Low-value

What is a difference between a technical object and an assembly?

A technical object refers to one object (Functional location or Bill of material) whereas the assembly is a series of technical objects.

______________________ are used to offset postings of accrued costs (costs calculated in CO) to cost centers.

Accrual orders

In the ______________ master record, different data for valuation areas are stored.

Asset

_________________ is the main criterion for defining an asset.

Asset Class

_____________ offers an overview of the activity for an asset.

Asset Explorer

Define Depreciation Areas:

Because there are often various valuation options used, depreciation areas are created within SAP to support this need. Transactions figures can then be kept in each area per asset and depreciation area as well as individual value components (such as balances, depreciation, and the remaining book value).

A ______________________ identifies costs that are incurred in the future for materials and services requested or ordered.

Commitment

What is a plant called at which the operational systems of a company are installed?

Correct Answer: Maintenance Plant

In which of the following ways can a maintenance order be completed? a) Complete the maintenance order and notification separately b) Complete the maintenance order together with assigned notifications c) Complete the maintenance order with outstanding tasks

Correct Answer: a) Complete the maintenance order and notification separately b) Complete the maintenance order together with assigned notifications

You have created a bill of material for similar pieces of equipment. In the equipment master record, which field do you use to assign the bill of material to the piece of equipment? a) Construction type b) Evaluations c) Usage d) Counter

Correct Answer: a) Construction type

Which of the following elements are examples of possible receivers of an internal order settlement? a) Cost center b) Cost element c) Asset

Correct Answer: a) Cost center c) Asset

After a user creates and saves a fixed asset record, an ______________ record can be created in SAP Enterprise Asset Management (EAM). a) Equipment b) Internal c) Order settlement d) Asset

Correct Answer: a) Equipment

For which reference objects can a maintenance notification be created? a) Functional location (with or without an assembly) b) Equipment (with or without an assembly) c) Material without a serial number

Correct Answer: a) Functional location (with or without an assembly) b) Equipment (with or without an assembly)

Which of the following are used to confirm the time required to work on a maintenance order? a) Individual entry b) Book entry c) Overall completion confirmation

Correct Answer: a) Individual entry c) Overall completion confirmation

Which of the following are true statements regarding internal orders? a) Internal orders can settle costs to Financial Accounting (FI) b) An internal order can be true or statistical c) A statistical order requires a settlement rule d) Internal orders collect costs

Correct Answer: a) Internal orders can settle costs to Financial Accounting (FI) b) An internal order can be true or statistical d) Internal orders collect costs

Creating an internal order allows which of the following options? (3 correct answers) a) Monitor overhead costs incurred for a particular purpose b) Offset postings of accrued costs to cost centers c) Monitor costs incurred in the production of a fixed asset d) Replace the managerial accounting parts of Sales and Distribution (SD)

Correct Answer: a) Monitor overhead costs incurred for a particular purpose b) Offset postings of accrued costs to cost centers c) Monitor costs incurred in the production of a fixed asset

Which of the following data can be found in the maintenance history of equipment? a) Order data b) Data from maintenance notifications c) Depreciation data d) System data

Correct Answer: a) Order data b) Data from maintenance notifications

Which of the following elements are included in a maintenance order? a) Order operation b) Settlement rule c) Object list d) Activity report

Correct Answer: a) Order operation b) Settlement rule c) Object list

An internal order is created to collect costs for a fixed asset. Which of the following processes transfers these costs to the fixed assets? a) Order settlement b) Order release c) Order creation

Correct Answer: a) Order settlement

Which of the following activities can be performed after you release a maintenance order? a) Print shop papers b) Post goods issue c) Release payment for goods d) Enter time confirmations

Correct Answer: a) Print shop papers b) Post goods issue d) Enter time confirmations

Commitments are created for an internal order when which of the following documents are created? a) Purchase order b) Accounting document c) Material document d) Purchase requisition

Correct Answer: a) Purchase order d) Purchase requisition

A non-stock item is assigned to a maintenance order, the order is released. Which of the following is created? a) An inventory reservation b) A purchase requisition c) A purchase order d) A material document

Correct Answer: b) A purchase requisition

Which step comes after creating the purchase order in the nonstock material procurement process flow? a) Technical completion b) Goods receipt c) Invoice

Correct Answer: b) Goods receipt

In addition to the posting key, what other value is necessary when posting to an asset account? a) Order type b) Transaction type c) Account type

Correct Answer: b) Transaction type

Which of the following are technical objects? a) Functional location b) Work center c) Bill of material d) Cost center

Correct Answer: a) Functional location c) Bill of material

In the corrective maintenance process, which is the phase after the control phase? a) Planning b) Execution c) Completion

Correct Answer: b) Execution

An action log displays the changes to ____________, _____________, ______________, and _____________________ in chronological order. This enables this to track who has changed the data and the status of which fields and when. a) Notifications b) Orders c) Functional locations d) Value category e) Equipment

Correct Answers: a) Notifications b) Orders c) Functional locations e) Equipment

The depreciation run can be in the _______________ or batch mode.

Direct

A piece of ______________ is an individual physical object that is to be maintained as an autonomous unit.

Equipment

TRUE OR FALSE: During an internal order settlement, the system transfers the costs from the internal order to the equipment record.

False

TRUE OR FALSE: Several pieces of equipment can be assigned to an asset and a piece of equipment can belong to multiple assets.

False: A piece of equipment can belong only to one asset.

TRUE OR FALSE: A piece of equipment must be assigned to a functional location.

False: It does not have to be assigned to a functional location based on the type of equipment.

TRUE OR FALSE: The settlement must specify that all of the costs on the order are settled to a single receiver or split to multiple receivers.

False: The settlement rule may specify to a single receiver or may be split to multiple receivers.

TRUE OR FALSE: The depreciation is posted in Asset Accounting (AA) and the General Ledger (GL) before the depreciation posting run is completed.

False: it's after the depreciation posting run is completed

The aim of creating a _____________ is to structure a technical system or building into units that are relevant to plan maintenance.

Functional Location

You can install equipment at ____________.

Functional Locations

What are the organizational levels in Enterprise Asset Management (EAM)?

General - Client - Company code - Plant Location Based - Maintenance Plant - Location - Maintenance Work Centers Planning Based - Maintenance Planning Plant - Maintenance Planner Groups

An ___________________ is a flexible Controlling (CO) tool that can be used for a variety of purposes (to track costs and revenues within a controlling area, for example).

Internal Order

___________________ are used to monitor costs incurred in the production of a fixed asset, such as building a storage facility.

Investment orders

Pieces of equipment usually represent single objects, such as pumps, motors, and vehicles for which you need to perform and record _____________ tasks.

Maintenance

The planners within a maintenance planning plant are defined by _______________.

Maintenance Planner Groups

A ____________ is the organizational unit in which maintenance requirements are planned. These requirements either come from your plant or from another maintenance plant assigned to this maintenance planning plan.

Maintenance Planning Plant

If maintenance work is planned at the plant, the maintenance plant is also the _________________.

Maintenance Planning Plant

A plant at which the operational system of a company is called a ______________.

Maintenance Plant

_____________ are subdivided according to location-based criteria and based on responsibility for production (work centers).

Maintenance Plant

A __________________ is created for a material independent of a technical object.

Material BOM

_________________ are always used in plant maintenance when a number of similarly constructed objects have to be maintained.

Material BOMs

What field is most important in Internal Order data?

Order type

________________ field allows you to specify the default values for the different master data fields. It also allows you to define certain order characteristics, such as setting for settlement, planning, and budgeting, depending on what the order is used for.

Order type

_____________________ are used to replace the cost accounting parts of Sales and Distribution (SD) Sales Orders if SD is not being used. This category is used to track both costs and revenues.

Orders with revenue

__________________ are used to monitor overhead costs incurred for a particular purpose, such as conducting a trade fair or tracking costs for maintenance and repair work.

Overhead orders

The person responsible for a plant section is called the ______________, and they are the contact persons who coordinate production and maintenance.

Plant Engineers

The maintenance BOMs only contain items relevant to ________________.

Plant Maintenance

You can use _________________________________ to represent business processes in the SAP system and process them repeatedly using the workflow system.

SAP Business Workflow

A ____________ will occur at the end of each period or at the end of the life of an order.

Settlement

Internal orders are usually used as an interim collector of costs and aid the planning, monitoring, and reporting processes. When a task is complete, the cost have to be passed on to their final destination, such as cost center, fixed assets, and profitability segment. This process is called ______________. It is another form of periodic cost allocation.

Settlement

____________ can be structured flexibly by using one of the many available settlement options.

Settlement

A ____________ must be defined for each order. This rule is defined in the order master record.

Settlement Rule

The aim of using a material BOM is to assign it to the _______________.

Technical Object

The settlement of the order by Controlling (CO) can be performed before or after the ______________________________.

Technical completion

The ____________ is the distinguishing characteristic of various asset postings.

Transaction Type

TRUE OF FALSE: Functional locations are hierarchically ordered structures and could be used, for example, to represent a technical system, building, or part thereof.

True

TRUE OR FALSE: A maintenance planning plant is the organizational unit in which maintenance requirements are planned.

True

TRUE OR FALSE: An asset master record is always assigned to one company code for a given time period.

True

TRUE OR FALSE: Asset balances and transactions often need to be valuated differently for various purposes.

True

TRUE OR FALSE: Depreciation areas in a fixed asset master record allow multiple valuation bases.

True

TRUE OR FALSE: Each asset has to be assigned to an asset class.

True

TRUE OR FALSE: Internal order settlement can occur periodically or at the end of the life of the order.

True

TRUE OR FALSE: The data controls the calculation of normal and special depreciation for the respective valuation areas. Therefore, you can use a different depreciation method for general business procedures as compared to the depreciation method that the tax authorities required.

True

TRUE OR FALSE: You can setup the system to automatically create an equipment master record whenever you create an asset master record.

True