The flowchart illustrates the CAPEX (Capital Expenditure) Process in SAP, integrating modules such as Plant Maintenance (PM), Materials Management (MM), and Financial Accounting & Controlling (FICO). This process is crucial for managing large-scale investments in assets or equipment. Let’s break down the process in detail:

🛠️ Plant Maintenance (PM) Activities

• Capital Work New Asset Build or Enhancement of Existing Equipment: The process begins with the decision to either build a new asset or enhance an existing one. This step is critical as it determines the scope of the CAPEX project and its impact on the organization’s asset base.
• New Asset or Enhancement Decision: A decision point is reached to determine whether the project involves a new asset or an enhancement of an existing one. This decision affects subsequent steps in the process, including asset creation and maintenance planning.
• Creation of Functional Location for Asset Build: If it’s a new asset, a functional location is created in the SAP system (Transaction: IL01). This serves as a reference technical object, providing a hierarchical structure for the new asset within the organization’s equipment landscape.
• Maintenance Team Intimated about AUC: The maintenance team is informed about the Asset Under Construction (AUC). This step ensures that the maintenance department is aware of the upcoming asset and can plan for its future maintenance needs.
• Maintenance Identified about FXA: The maintenance team is also informed about the Fixed Asset (FXA) aspects. This step helps in aligning the maintenance planning with the financial aspects of the asset.
• Existing Equipment Number with Fixed Asset Identified: For enhancement projects, the existing equipment number and associated fixed asset are identified in the system. This step links the CAPEX project to the existing asset records.
• If Required Assign Permits & Go for Approvals: Necessary permits are assigned, and approvals are sought. This step ensures compliance with internal policies and external regulations.
• Create Capex Maintenance Order (Transaction: IW31): A specific maintenance order for the CAPEX project is created. This order will track all activities and costs associated with the project.
• Order Planning for Spares/Services: The required materials and services for the CAPEX project are planned. This step involves determining what resources are needed and when.
• Internal Services/Spares Required Decision: A decision point to determine if internal services or spares are needed. This affects subsequent procurement and resource allocation steps.
• Confirm the Operations (Transaction: IW41): As work progresses, operations are confirmed in the system. This step tracks the completion of various stages of the CAPEX project.
• Technical Completion for Order (Transaction: IW32): Once all work is complete, the order is marked as technically complete in the system.

📦 Materials Management (MM) Actions

• Reservation for Stock Material (Transaction: MB21): If stock materials are required, reservations are created to ensure availability.
• Goods Issue against Reservation (Transaction: MB1A): Reserved materials are issued from stock for the CAPEX project.
• PR for Not Stock Material & External Service: For non-stock items and external services, purchase requisitions are created.
• Create PO against Non-stock Material/Service PO (Transaction: ME21N): Purchase orders are created for non-stock items and external services.
• Service Entry Sheet (Transaction: ML81N): For service POs, service entry sheets are created to record the services provided.
• Goods Receipt Process (Transaction: MIGO): For material POs, goods receipts are processed when items are received.

💰 Finance/Controlling (FICO) Steps

• AUC Created by FI Team: The Finance team creates the Asset Under Construction in the financial records.
• In Case FI Team Asset Build Settle the AUC, FXA: The Finance team settles the AUC to the Fixed Asset account once the asset is complete.
• Invoice Verification Vendor Payment (Transaction: MIRO): Invoices for materials and services are verified and processed for payment.
• Business Completion for Order: The CAPEX project is marked as complete from a business perspective.
• Settlement for Order (Transaction: KO88): All costs associated with the CAPEX project are settled to the appropriate accounts.

This CAPEX process demonstrates the complex interplay between different SAP modules in managing large-scale asset investments. It ensures proper planning, execution, and financial control of capital expenditures, aligning technical implementation with financial processes.