Gain Efficiency and Transparency in Capital Investments Approval Using Appropriation Requests

  • by Siva Prasad Ramachendruni, Senior Consultant
  • May 28, 2009
See how to perform approval with SAP workflow for capital investments and execution steps using appropriation requests.
Key Concept

In SAP systems, you can use workflow to move projects to different levels of approval. This is an alternative option to performing tasks manually. With projects such as capital investments, which often involve significant levels of money and various levels of approval, using SAP workflow allows you to track the project’s approval process within the system.

Because the stakes involved in capital investments are usually high, upper-level executives need to approve investment proposals with a method that provides transparency and accountability. Generally, approval levels are fixed based on investment limits. For example, up to US$1,000,000, a general manager must approve, from US$1,000,000 to US$5,000,000 both a manager and a director must approve, and above US$5,000,000, a general manager, director, and CEO must approve. However, the requirements and limits change from business to business.

In my article, “Streamline Your Capital Investment Process with Appropriation Requests,” which was posted to the Financials Expert knowledgebase in April 2009, I gave an overview of appropriation requests, how to plan cash flows, and how to carry out pre-investment analysis to justify the investment. I used appropriation request number 10020 as an example and recommended variant 0010 as the best one for approval. In this article, I will look into the investment approval and implementation (i.e., execution) steps using the same appropriation request. I recommend you read that article before moving forward with this one.

Siva Prasad Ramachendruni

Siva Prasad Ramachendruni is a senior consultant (SAP Financials) working for a multinational corporation in the IT sector with 12 years of functional and SAP experience. He helps companies streamline business processes and gain efficiency through effective cost management. He is an Indian Cost and Management Accountant and has a master’s degree in financial management.

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