Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Fixed Assets Accounting

IFC Process Document

STT GDC India Pvt. Ltd.

Prepared by : Pradeep Panda

Reviewed by : Gautam Jain

Approved by : Harsh Gupta

Approved date : XX XX XXXX

Version : 2
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

INDEX

 Introduction Slide No - 1

 Index Slide No - 2

 Overview of the process Slide No - 3

 Organizational Chart Slide No - 4

 IFC Organization Chart Slide No - 5

 Process Scope Slide No - 6

 Summary Process Map Slide No - 7

 Process Details Slide No - 8 to 28

 Journal Entries & GL codes Slide No- 29 to 30

 Abbreviations Slide No- 31

Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Overview

Business Overview:
Fixed Assets Accounting process describes the procedures for direct additions for Fixed Assets, for disposal / transfer of
Fixed Assets, calculation of depreciation of Fixed Assets

Location: Mumbai

Entity: STT GDC India Pvt Ltd

Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Organization Chart

Harsh Gupta
Financial Controller

Gautam Jain
Senior Manager
Finance

Pradeep Panda
Fixed Assets Accounting
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

IFC Organization Chart

Sub-Process Level 1 (L1) Officer Level 2 (L2) Officer

Transfer of balances from CWIP Pradeep Panda Harsh Gupta/ Gautam

Jain

Capitalization of Fixed Assets Pradeep Panda Harsh Gupta/ Gautam

Jain

Depreciation of Fixed Assets Pradeep Panda Harsh Gupta/ Gautam

Jain

Decommissioning of Fixed Assets Pradeep Panda Harsh Gupta/ Gautam

Jain

Sale of Fixed Assets Pradeep Panda Harsh Gupta/ Gautam

Jain

Write-off of Fixed Assets Pradeep Panda Harsh Gupta/ Gautam

Jain

Physical Verification of Fixed Assets Pradeep Panda Harsh Gupta/ Gautam

Jain

Transfer of Fixed Assets Pradeep Panda Harsh Gupta/ Gautam

Jain
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Scope and overview

IN SCOPE Process:

17.1.1 Transfer of balances from CWIP

17.1.2 Capitalization of Fixed Assets

17.1.4 Depreciation of Fixed Assets

17.1.6A Decommissioning of Fixed Assets

17.1.6b Sale of Fixed Assets

17.1.6c Write off of Fixed Assets

17.1.9 Physical Verification of Assets

8b.5 Transfer of Fixed Assets

Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Summary Process Map

Function Processes Application

17.1.1
Transfer of 17.1.9
17.1.2 17.1.4
17.1 balances from Physical SAP
Capitalisation Depreciation
Fixed Assets CWIP Verification of
of Fixed Assets of Fixed Assets
Accounting expenses to Fixed Assets
Process CWIP A/c

17.1.6A 17.1.6C
17.1.6B
Accounting for Accounting for 8b.5
Accounting for
Decommissioning Write off of Transfer of Fixed MS Excel
Sale of Fixed
of Fixed Assets Fixed Assets Assets
Assets
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Monitoring process

Listed below are the higher level Management activities/reports that provide additional controls over the Fixed Assets process. These controls have been
considered by management as part of its overall evaluation of the Fixed Assets process.

Management Activities / Reports-Current

1 Monthly MIS
 Major Capitalization
 Value of CWIP at month end
 CWIP – Analysis
 Board approved AOP
 Fixed Assets Schedule – Companies Act
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.1 Transfer of Balances from CWIP expenses to CWIP

Major Process :
Fixed Asset Accounting Process

Major Sub-Process :
Transfer of balances from CWIP expense to CWIP account

Beginning and End points of the Process :

Test run to post entries from CWIP Expenses to CWIP account
Balances of CWIP Expenses Account will be minimum and the CWIP report will be generated after completion of the transfer of balance.

IT System Used : SAP – FA Module

Location : Mumbai

Purpose and Description :

To ensure completeness and accuracy of the balances lying in the fixed assets ledger and CWIP ledger

Process owners :
Harsh Gupta (Director)
Pradeep Panda (Fixed Asset Accounting)

Inputs :
Test run to post entries from CWIP Expenses to CWIP account

Outputs :
Accounting entry for transfer of CWIP expense to CWIP account
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.1 Transfer of Balances from CWIP expenses to CWIP

SR-97, 98, 293 17.1.1.C1, C2

Final run to post entries

L1 officer performs test from CWIP-Expenses
run to post entries from Send mail to SAP team
Start Errors? Yes to CWIP Account
CWIP-Expenses to to Correct Errors
carried out by L1 officer
CWIP Account 1 2&3

No

SR-701 17.1.1.C3

SAP generates entries for

transfer of balances from
End
CWIP expenses A/c to CWIP
A/c

Process Narratives :

1. SAP does not allow the L1 officer to proceed with the Final run before rectification of the ‘Error Messages’ to transfer the balance of CWIP expenses
2. All CWIP-Expense accounts are mapped against their corresponding CWIP account codes in SAP. e.g. Any items appearing in the CWIP Plant & Machinery
Expense Account can only be transferred to CWIP-Plant & Machinery Account.
 The L1 officer generates the CWIP after transferring the balance from CWIP expense account.
3. Exception if any is approved by L2 Officer

Accounting entry for Transfer to CWIP

CWIP A/c Dr
CWIP Expense A/c Cr

Control : 17.1.1.C2 --
The Accounting entry for transfer to the CWIP account/depreciation/sale of assets/decommissioning /write-off and accelerated depreciation of assets is generated by
SAP.
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17.1 Fixed Asset Accounting

17.1.2 Capitalization of Fixed Asset

Major Process :
Fixed Asset Accounting Process

Major Sub-Process :
Capitalisation of Fixed Assets

Beginning & End points of the process :

STT GDC - L1 officer receives the PCN/PEN/mail confirmation from Project owner for the confirmation of the RFS date based on which Capitalization is
done. In case a project for which PCN has been received and could not be capitalized during the month, same will be covered through provisional
capitalization.

If the project manager does not respond till last day of the month on the additional information on the PCN/ PEN for the due RFS projects
then L1 officer may proceeds for the provisional capitalization. Incase confirmation has been received from Project owner the L1 officer will
scrutinize the PCN/PEN/Confirmation and in discussion with L2 officer will decide for the final/provisional capitalization of that month.

Based on the confirmation of the RFS date from the project managers, assets are capitalized and Asset Addition Report (T-code – ZASSET_REP) is
generated at month end.

Capitalization is done either through system or provisional as per the provisional capitalization guidelines.

IT System Used : SAP – FA Module

Location : Mumbai

Purpose and Description :

To ensure timely Capitalization of fixed assets.

Process owners :
Harsh Gupta (Director - Finance)
Pradeep Panda (Fixed Assets Accounting)

Inputs :
Downloading CWIP a/c

Outputs :
Accounting entry for Capitalisation of Fixed Asset
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.2 Capitalization of Fixed Asset

? SR-293 17.1.2.C1

L1 officer reviews the CWIP and if

L1 officer receives the PCN/
L1 Officer downloads revenue items are incorrectly
PEN/Mail Confirmation details
Start the CWIP a/c from SAP appearing in CWIP account ,the same A1
from Project owner for the
(T-Code – ZPS_CWIP) will be reviewed by L2 officer before
confirmation of the RFS date 1
transferring to P & L GL

? SR-293 17.1.2.C1

L1 officer selects L1 officer creates the L1 officer performs

A1 CWIP line item for Asset ID in SAP for the test run for Errors? Yes Correct Errors
asset capitalisation. asset to be capitalized capitalization

No

? SR-100 17.1.2.C2

L2 officer reviews the

SAP generates
L1 officer performs capitalization for the month,
entry for
final run for CWIP balance and signs the End
capitalization of the
Capitalisation5 checklist containing monthly
asset
activities to be performed 6,7
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.2 Provisional Capitalization

? SR-101 17.1.2.C3 ? SR-101 17.1.2.C3

L1 Officer posts the JE for

L1 officer prepares
L1 officer L1 officer reviews L1 officer computes provisional capitalization
Monthly
downloads open due projects based the amount to be and provisional
Start provisional file & End
CWIP from SAP (T- on Project Manager capitalised depreciation and L2 Officer
file is reviewed by
Code – ZPS_CWIP) confirmation provisionally reviews the same through
L2
checklist
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.2 Capitalization of Fixed Asset

Process Narratives:

1. Capitalization is done on a monthly basis. L1 officer receives the PCN/PEN details from Project owner for the confirmation of the RFS date of the Major Projects.
Capitalization is done based on receipt of PCN. In case a project for which PCN has been received and could not be capitalized during the month, same will be
covered through provisional Capitalization.
However Assets like PC/Laptop for which PCN is not required as these are ready to use Assets and same are capitalized as & when issued.
If the project manager does not respond till last day of the month on the additional information on the PCN/ PEN for the due RFS projects then L1 officer may
proceeds for the provisional capitalization. In case confirmation has been received from Project owner, the L1 officer will scrutinize the PCN/PEN/Confirmation and
in discussion with L2 officer will decide for the final/provisional capitalization of that month. Capitalization date will be the month of RFS date.
2. Provisional Capitalization – a. In case the project manager does not respond with the PCN/ PEN even after reminder, provisional capitalization is done for due RFS
Projects based on the information available. If any project is not capitalized in SAP FA module due to late receipt/non availability of PCN, further information required for
capitalization, CWIP hit on or after the cut off date & time constraint or any other reason such amount is capitalized provisionally.
3. Depreciation rate is picked up by SAP based on the type of asset selected. The same is reviewed and approved by the L2 Officer via a sign-off on the checklist on
sample basis.
4. The final run for capitalization cannot be performed without rectifying the errors thrown up by SAP during the test run.
Accounting for Capitalization of Fixed Assets
Asset A/c Dr.
CWIP A/c Cr.
5. Control -- 17.1.2.C2 - A checklist along with all the necessary supporting for all activities to be performed is prepared by L1 Officer and reviewed by L2 Officer.
The checklist comprises the following activities, which is reviewed by L2 officer on sample basis :
a) To ensure that the asset master is created accurately in SAP
b) To ensure capitalization is done as per RFS date and appropriate supporting received from the project owners/managers.
c) To ensure only appropriate CWIP items are capitalized.
d) Reviewed the CWIP Expense GL A/cs to ensure appropriate balances are reflected (Post Capitalization)
6. The checklist is signed by L1 officer and reviewed by L2 Officer.
7. Depreciation Cost Centre is taken from Location master and in case of any changes is reviewed & approved by L2 Officer.
8. On a Monthly basis, revenue items incorrectly hitting to CWIP account are reviewed by L1 officer and approved by L2 officer, via sign-off on monthly checklist.
9. In case any OPEX item is identified in the CWIP A/C , then it is transferred to Opex account and is expensed off.
Accounting entry in case any Opex item appears in the CWIP Account
Expenditure A/C Dr
To CWIP A/C Cr
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17.1 Fixed Asset Accounting

17.1.4 Depreciation of Fixed Assets

Major Process :
Fixed Asset Accounting Process

Major Sub-Process :
Depreciation of Fixed Assets

Beginning & End points of the process :

Monthly depreciation run in SAP
Accounting entry generated for depreciation

IT System Used : SAP – FA Module

Location : Mumbai

Purpose and Description :

To calculate depreciation of all Fixed Assets in the FA register

Process owners :
Harsh Gupta (Director – Finance)
Pradeep Panda (Fixed Assets Accounting)

Inputs :
Master Data created in SAP at the time of Capitalization of Fixed Assets

Outputs :
Accounting entry for depreciation of Fixed Assets
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.4 Depreciation of Fixed Assets

? SR-100 17.1.2.C2

Test run the depreciation

L1 officer runs final
Start posting in the fixed asset Errors? No SAP generates entries
depreciation run in SAP
module 1, 2

Yes

L2 Officer reviews and signs

the checklist containing
? SR-100 17.1.2.C1
Correct errors monthly activities to be
performed by him 3, 4, 5

End

Process Narratives :
1. At the time of the depreciation run carried out by the L1 Officer, SAP automatically calculates the depreciation based on depreciation key & remaining useful life of
the assets defined in Asset Master.
2. There are two kinds of messages that may be displayed after carrying out the test run-errors and warnings. Depreciation of assets can be done without resolving the
warning messages, however, error messages need to be resolved before performing the final depreciation .
3. The checklist includes the following activities:
a) To ensure that the asset is created accurately in SAP
b) To ensure the correctness and accuracy of the depreciation entry passed in the system
4. On a test check basis, the depreciation calculation is verified by L2. Depreciation of provisional capitalization is covered along with provisional capitalization.

Control : 17.1.4.C2 – At the time of the depreciation run carried out by the L1 Officer, SAP automatically calculates the depreciation based on depreciation key &
remaining useful life of the assets defined in Asset Master. SAP does not pick up asset for depreciation if the assets are fully depreciated or the assets have reached
the end of life.
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17.1 Fixed Asset Accounting

17.1.4 Change in Asset Master / Asset Life

Change in Asset Master (Non-Financial Impact)

? SR-100 17.1.2.C3

Any change in Asset Master

Start not having a financial impact, End
is approved by L2 Officer

Change in Asset Master data (EV5 creation & updation)

SR-100 17.1.2.C3 ? SR-100 17.1.2.C3a

?

Post L2 Officer approval, L1 SAP team will make the

Any new creation of asset
officer sends details to SAP changes in SAP & send mail
Start category (EV5) needs to be End
team with approval for confirmation for updation in
approved by L2 officer.
creation/ changes in EV5 EV5 to L1 officer.

Process Narratives :
1. Changes in asset master which impacts depreciation can be due to below illustrative reasons:
A. Depreciation key change
B. Change in Useful life of asset
C. Change in EV5 group
D. Change in depreciation start date
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17.1 Fixed Asset Accounting

17.1.6A Decommissioning of Fixed Assets

Major Process :
Fixed Asset Accounting Process

Major Sub-Process :
Decommissioning of Fixed Assets

Beginning & End points of the process :

Decommissioning details received from the Divisional Functional Managers (DFMs) or concerned departments
Decommissioning of the asset in the system

IT System Used : SAP – FA Module

Location : Mumbai

Purpose and Description :

To ensure decommissioned assets are accordingly updated in the FA register

Process owners :
Harsh Gupta (Director – Finance)
Pradeep Panda (Fixed Assets Accounting)

Inputs :
Decommissioning details received from the concerned departments

Outputs :
Accounting for Decommissioning of Fixed Assets
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.6A Decommissioning of Fixed Assets

Concerned departments ? SR-103 17.1.6.C1

send the decommissioning
details to DFMs or Fixed DFM prepares a list of assets to be
Asset Team Decommissioning details
decommissioned and along with L1 Officer identifies the
along with Approval for
Start the necessary approval as per asset to be A2
decommissioning
Technical/ Network DOP forwards the same to FA decommissioned
received.
personnel identifies the Team for passing journal entry.
assets required to be
decommissioned and sends
the list to DFM or FA team
?
? SR-104 17.1.6.C1
SR-97, 98 17.1.1.C1

Asset details (i.e. System generates L2 officer reviews the For sale of asset after
revised life) for entries for assets decommissioning
A2 End
decommissioning accelerated decommissioned via Refer 17.1.6B Sale of
entered in SAP depreciation 2 monthly checklist Fixed Assets

Process Narratives :
1. The DFMs/ User Department sends information which will enable the FA team to locate the asset. The information may include
a. Description of the Asset
b. Quantity
c. Manufacturer/Make
d. Model No
e. PO No & Date
f. Date of Installation/Put to use
g. Supplier Details
h. Original Location of asset-(User Dept/Section).) to the FA team along with the approval for decommissioning

2. At the time of decommissioning an asset, the WDV of the asset is brought down to 5% of the Original Cost or zero as the case may be, by changing the estimated
life of the Asset. An accelerated depreciation entry is passed in the system leaving 5% or Zero as the case may be of the asset value in the Asset A/c. The same is
done by changing the estimated life of the Asset
Accounting for Decommissioning of Fixed Assets
Depreciation A/c Dr.
Accumulated Depreciation A/c Cr.
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17.1 Fixed Asset Accounting

17.1.6B Sale of Fixed Assets

Major Process :
Fixed Asset Accounting Process

Major Sub-Process :
Sale of Fixed Assets

Beginning & End points of the process :

Sale details received from the Concerned User Department
Accounting for sale of the asset in the system

IT System Used : SAP – FA Module

Location : Mumbai

Purpose and Description :

To ensure assets sold are accurately updated in the FA register

Process owners :
Harsh Gupta (Director – Finance)
Pradeep Panda (Fixed Assets Accounting)

Inputs :
Sale details received from the Concerned User Department

Outputs :
Accounting for sale of Fixed Assets
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17.1 Fixed Asset Accounting

17.1.6B Sale of Fixed Assets

? ?

SR-103 17.1.6.C1 SR-97, 98 17.1.1.C1

Concerned/ User Concerned/ User System

Asset details for
department takes department sends asset L1 Officer verifies whether the generates entries
Start Yes sale entered in
asset sales approval sales details with sale approval is as per DOP for removal of
as per DOP SAP
approval to L1 officer asset

No
?

SR-104 17.1.6.C1

List of assets sold is

reviewed L2 Officer on a
End
monthly basis via monthly
checklist4

Process Narratives :

1. The user department/M&L team sends details to identify the asset along with the necessary approval to pass necessary entries. The details may include the following type of details:
a. Description of the Asset e. PO No & Date
b. Quantity f. Date of Installation/Put to use
c. Manufacturer / Make g. Supplier Details
d. Model No h. Original Location of asset-(User Dept/Section).)
to the FA team along with the approval for sale.
2. Upon receipt of the sale proceeds respective team will pass the necessary entry of collection as follow:
Accounting for Receipt of Sale Proceed
Bank Account Dr.
Sales Clearing Account Cr.
Accounting for Sale of Fixed Assets
Sales Clearing account Dr.
Accumulated Depreciation Dr.
Loss on sale of Fixed Assets A/c Dr.
Profit on sale of Fixed Assets A/c Cr.
Asset A/c Cr.
3. The Sales Clearing Account is reviewed by the L1 Officer on a monthly basis. In case details of sale are not already received, the L1 Officer follows up with concerned User
Department to obtain the corresponding details along with approvals
4. The L1 officer comes out with a monthly MIS report detailing the sold assets. This report is reviewed by L2 officer.
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.6C Write off of Fixed Assets

Major Process :
Fixed Asset Accounting Process

Major Sub-Process :
Write off of Fixed Assets

Beginning & End points of the process :

Approval for write off of Assets obtained from DOP forwarded by the concerned department/DFM/(M&L/Facilities)
L2 Officer reviews the Asset written off from the books

IT System Used : SAP – FA Module

Location : Mumbai

Purpose and Description :

To ensure assets written off are accurately updated in the FA register

Process owners :
Harsh Gupta (Director – Finance)
Pradeep Panda (Fixed Assets Accounting)

Inputs :
Approval for write off received from the concerned department/ DFM/(Facilities/M&L)

Outputs :
Assets written-off from the books
 Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

17.1.6C Write off of Fixed Assets

?
Concerned departments SR-104 17.1.6.C1
send the write off details to
DFMs, if any
DFM prepares a list of assets to be
written off and along with the L1 Officer verifies if the Asset details entered in
Start necessary approval as per DOP approval is received As SAP for write off by L1
forwards the same to FA Team for per DOP Officer
Technical/ Network accounting.
personnel identifies the
assets required to be
written off and sends the list
to DFM ?

SR-104 17.1.6.C1

L2 officer reviews the write System generates

End off done via monthly entries for write off of
checklist asset

Process Narratives:
1. The user department/ DFM sends details of assets to FA team which will enable the team to locate the asset. The details may include following:
a. Description of the Asset b. Quantity
c. Manufacturer/Make d. Model No
e. PO No & Date f. Date of Installation/Put to use
g. Supplier Details h. Original Location of asset-(User Dept/Section)

2. JE For write off of asset –

1. 579000 – Loss on sale of FA Dr
320300 – Acc Dep Dr
260300 - Fixed Assets GB (P&M) Cr
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17.1 Fixed Asset Accounting

8b.5 Transfer of Fixed Assets

? ?
SR-702 8b.5.C1 8b.5.C1
SR-702

L1 Officer receives asset L1 officer updates the asset

Transfer invoice is generated
transfer form/ request duly L1 officer verifies the accuracy location in FAR. L2 officer
and asset is transferred by
approved by the of information of transfer form. verifies the list of assets which
Start User Dept. Receiving End
concerned department L1 officer calculates the Net got transferred during the
department intimates FA team
(transferring the asset) and Book Value (NBV)2 month (Asset Transfer Report)
on receiving the asset
receiving department 1 as part of Monthly Checklist 3

Process Narrative:

1. Transfer implies transfer of asset to different locations

2. Asset Transfer list is maintained as part of Monthly Checklist
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17.1 Fixed Asset Accounting

17.1.9 Physical verification of assets

Major Process :
Fixed Asset Accounting Process

Major Sub-Process :
Physical verification of assets

Beginning & End points of the process :

Scope sheet for physical verification of assets sent to the external agency.
Head of FA reviews the asset report sent by the agency

IT System Used : SAP – FA Module

Location : Mumbai

Purpose and Description :

To ensure assets written off are accurately updated in the FA register

Process owners :
Harsh Gupta (Director – Finance)
Pradeep Panda (Fixed Assets Accounting)

Inputs :
Scope sheet

Outputs :
PV report
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17.1 Fixed Asset Accounting

17.1.9 Physical verification of assets

SR-105 17.9.1.C1

L1 officer prepares the scope Physical Verification is

sheet/ Note of Physical conducted as per scope
FA Team reviews
Start Verification and L2 officer sheet/ Note and the Discrepancies? Yes A5
the report1
review and get necessary verification report is
approval forwarded to FA Team3

?
17.9.1.C1 No
SR-105

L2 officer reviews each discrepancy L1 officer passes necessary

and take action appropriately and entries for write off/
L1 officer makes a final
A5 obtain approval for write off/ accelerated depreciation the End
list of discrepancies
accelerated depreciation, if any, as asset in the books based on
per DOP the approval

Process Narratives:

1. The L1 officer analyses the report. Discrepancy report shared by external agency is reviewed by L1/L2 officer and incase of any deviation final call is taken for
necessary action.
2. Approval as per DOP is mandatory to write-off/ decommissioning of any asset.
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Journal Entries:

Control 17.1.6C JE For write off of asset –

Loss on sale of FA Dr
Accumulated Dep Dr
Fixed Assets GB (P&M) Cr

Sundry Fixed Assets W/off Dr

Loss on Sale of FA Cr

Control 17.1.6B Accounting for Sale of Fixed Assets Control 17.1.2 Accounting for Capitalization of Fixed Assets
Sales Clearing account Dr. Asset A/c Dr.
CWIP A/c Cr.
Accumulated Depreciation Dr.
Loss on sale of Fixed Assets A/c Dr.
Profit on sale of Fixed Assets A/c Cr.
Asset A/c Cr.

Bank Account Dr.

Sales Clearing Account Cr.

Control 17.1.1 Accounting for Capitalization of Fixed Assets Control 17.1.6A Accounting for Depreciation/Decommissioning of Fixed Assets
Asset A/c Dr.
CWIP A/c Cr. Depreciation A/c Dr.
Accumulated Depreciation A/c Cr.

Control 17.1.1 Accounting entry for Transfer to CWIP

CWIP A/c Dr.
CWIP Expense A/c Cr.

Control 17.1.1 Accounting entry in case any Opex item appears in the CWIP Account
CWIP Clearing A/C Dr.
CWIP A/C Cr.

Expenditure GL A/c Dr.

CWIP clearing A/c Cr.
Internal Financial Controls – STT GDC India Pvt Ltd.

17.1 Fixed Asset Accounting

Fixed Assets GL Code List:

320100 AccDepreciation-Land 600100 Depreciation - Land

320200 AccDep-Building 600200 DepreciationBuilding
320300 AccDep-Plant & Machinery 600300 Depreciation - Plant & Machinery
320400 Acc Dep-Furniture & Fixtures 600400 Depreciation - Furniture & Fixtures
320500 Acc Dep-Office Equipment 600500 Depreciation - Office Equipment
320600 Acc Dep-Computer 600600 Depreciation - Computers
320700 Acc Dep-Vehicles 600700 Depreciation - Vehicles
321200 Accumulated Depreciation - Lease Hold Improvement 601200 Depreciation - Lease Hold Improvement
321300 Acc Dep - Computer Softwares 601300 Depreciation - Computer Software
321400 AccDep-Cables 601400 Depreciation - Cables
321500 AccDep-Internally Devp Computer Software 601500 Depreciation - Internally Devp Computer Software
321600 Acc Dep Leasehold Land 601600 Depreciation - Lease Hold Land
322000 Fixed Asset - Accumulated Depreciation 602000 Depreciation on Manual Capitalisation
321000 AccDep-CustRelationship 601000 Depreciation - Intangible Assets
320900 Acc Dep-Goodwill 600900 Depreciation - Goodwill
601100 Depreciation - Inventory
329900
480500 Sale of Fixed Assets - Clearing Account 486100 Excess Depreciation
579000 Loss on sale of Fixed assets
578800 Fixed Assets W/f
481200 Profit on Sale of Fixed Assets
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17.1 Fixed Asset Accounting

Abbreviations

ARO : Asset Retirement Obligations

PO : Purchase Order
CER : Capital Expenditure Request
PR : Purchase Requisition
WIP : Work In Progress
PCN : Project Closure Notice
PEN : Project Extension Notice
SER : Special Expenditure Request
LOB : Line of Business
Sr. : Senior Manager
FP&A : Financial Planning and Analysis
PO : Purchase Order
DOP : Delegation of Power
M&L : Material and Logistics
RFQ : Request for Quotations
GRN/SRN : Goods Received Note/ Service Received Note
DFM : Divisional Finance Manager
LOI : Letter of Intent
C&F : Custom & Freight
OSP : Outside Plant
LC : Letter of Credit
Sr.MGR : Senior Manager
MGR : Manager
ASM : Assistant Manager
EXE : Executive

Flowchart Legend :

?
Risk
Control
Databas Process Decision Docume On-page Predefined Terminator
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