sap kirloskar blue print

D1007TBP/FICO 06/09/2000

FICO TO BE document for KBL e-MAD

L&T Information Technology Limited

1.0PH022T/1.0/15.09.99

DOCUMENT RECORD LIST

Ver/Rel.No

Release Date

Mod.By Mod. Dt

Rev. By Rev. Dt.

Auth By Auth Dt.

Approved byAppv Dt

Remarks

1.0 06/09/2000 VRK, MRR, RRK,SSK06/09/2000

MGL, RSG06/09/2000

MMN06/09/2000

Sudha SanthanamMentor (FICO)

D1007TBP/FICO /1.0/06/09/2000 Financial Accounting & Controlling D1007 KBL e-MAD

Table of Contents

ORGANIZATION STRUCTURE...................................................................................................................3

COMPANY CODE...........................................................................................................................................3BUSINESS AREA............................................................................................................................................3CHART OF ACCOUNTS...................................................................................................................................3CONTROLLING AREA.....................................................................................................................................4OPERATING CONCERN...................................................................................................................................4

MASTER DATA.............................................................................................................................................5

GENERAL LEDGER........................................................................................................................................5CUSTOMER....................................................................................................................................................5VENDOR........................................................................................................................................................6COST CENTRES..............................................................................................................................................7COST CENTRE STANDARD HIERARCHY........................................................................................................7COST CENTRE GROUP (ALTERNATE HIERARCHIES).....................................................................................7PROFIT CENTRES...........................................................................................................................................8PROFIT CENTRE STANDARD HIERARCHY......................................................................................................8PROFIT CENTRE GROUPS (ALTERNATE HIERARCHIES).................................................................................9COST ELEMENTS (PRIMARY AND SECONDARY)............................................................................................9REVENUE AND COST ELEMENT GROUP........................................................................................................9ACTIVITY TYPES.........................................................................................................................................11STATISTICAL KEY FIGURES (SKF).............................................................................................................12

GENERAL LEDGER..................................................................................................................................13

G/L POSTING – STANDARD.........................................................................................................................13G/L POSTING – OFFSETTING.......................................................................................................................15G/L PLANNING ( STANDARD )....................................................................................................................17MANUAL CLEARING (STANDARD)..............................................................................................................19

ACCOUNTS RECEIVABLE......................................................................................................................20

CUSTOMER INVOICES (SD AND SM MODULE RELATED)...........................................................................20CUSTOMER INVOICES (FI GENERATED)......................................................................................................22CUSTOMER DOWN PAYMENT (STANDARD)...............................................................................................24MANUAL ACCOUNT CLEARING (CUSTOMER).............................................................................................26MANUAL INCOMING PAYMENTS.................................................................................................................28MANUAL OUTGOING PAYMENTS................................................................................................................30POSTING OF PARKED DOCUMENTS ( STANDARD ).......................................................................................32CUSTOMER DOWN PAYMENT CLEARING....................................................................................................34CUSTOMER CREDIT MEMO (FI GENERATED).............................................................................................36

ACCOUNTS PAYABLE..............................................................................................................................38

VENDOR INVOICES......................................................................................................................................38VENDOR CREDIT MEMO (INVOICE RELATED)............................................................................................40VENDOR DOWN PAYMENT (STANDARD)....................................................................................................42MANUAL CLEARING (VENDOR)..................................................................................................................44VENDOR INVOICE ( STANDARD ) (DIRECT FI INVOICES)............................................................................46VENDOR CREDIT MEMO ( STANDARD ) (DIRECT FI RELATED)..................................................................48MANUAL OUTGOING PAYMENTS................................................................................................................50POSTING OF PARKED DOCUMENTS ( STANDARD ).......................................................................................52VENDOR DOWN PAYMENT (CLEARING).....................................................................................................54

L&T Information Technology Limited 1 of 84


CLOSING OPERATIONS..........................................................................................................................55

FOREIGN CURRENCY VALUATION (BALANCES)...........................................................................................55FOREIGN CURRENCY VALUATION – OPEN ITEMS........................................................................................57REGROUPING OF RECEIVABLE AND PAYABLES...........................................................................................59BUSINESS AREA ADJUSTMENT....................................................................................................................60CUSTOMER / VENDOR BALANCE INTEREST CALCULATION.........................................................................61MAINTAIN GR/IR CLEARING ACCOUNT......................................................................................................63PERIODIC REPORTING.................................................................................................................................65BALANCE CARRIED FORWARD (FI).............................................................................................................67MATERIAL DEBIT / CREDIT.........................................................................................................................68MATERIAL PRICE CHANGE..........................................................................................................................69WITHHOLDING TAX....................................................................................................................................70

PERIODIC PROCESSING.........................................................................................................................72

DUNNING NOTICE (CUSTOMER)..................................................................................................................72AUTOMATIC CLEARING...............................................................................................................................74DUNNING NOTICE (VENDOR)......................................................................................................................75

PROFIT AND COST PLANNING.............................................................................................................76

STATISTICAL KEY FIGURES........................................................................................................................76COST CENTRES............................................................................................................................................76ACTIVITY PRICES........................................................................................................................................77PROFIT CENTRES........................................................................................................................................77PROFITABILITY SEGMENTS.........................................................................................................................77

ACTUAL POSTING (REGULAR AS WELL AS PERIOD-END).........................................................79

STATISTICAL KEY FIGURES........................................................................................................................79COST CENTRES............................................................................................................................................79INTERNAL ORDERS.....................................................................................................................................80PROFIT CENTRES........................................................................................................................................80SERVICE ORDERS........................................................................................................................................80SALES ORDERS WHICH ARE COST OBJECTS (OTHER THAN MAKE TO STOCK)..............................................81PROFITABILITY SEGMENTS.........................................................................................................................81

MANAGEMENT REPORTING.................................................................................................................83

COST CENTRE ACCOUNTING......................................................................................................................83INTERNAL ORDERS......................................................................................................................................83PROFIT CENTRE ACCOUNTING...................................................................................................................83SALES ORDERS / SERVICE ORDERS............................................................................................................84PROFITABILITY ANALYSIS..........................................................................................................................84



Organization Structure

Company Code

Minimum one company code is required in SAP R/3 system. Audited Accounts for KBL e-MAD will be required to include the same in the accounts of Kirloskar Brothers Limited (KBL). KBL e-MAD shall present its financial statements as per the requirements of Schedule VI to the Companies Act, 1956 so that consolidation process with KBL accounts will be smooth.

Code NameKB10 Kirloskar Bros Ltd. E-MAD

Business Area

As explained by KBL, the company is required to disclose its segments as based on product groups (8 Segments) and geographic locations i.e. about 30 segments (India and all other countries). R/3 will provide segmental data based on product groups (defined as business areas), while geographic location wise information will be available through Profit Center Accounting. Additional balance sheet related data such as fixed assets, bank balances etc. need to be compiled by the accounts department.

Code Name

BA01 Industrial Pumps GroupBA02 Project and Engineered Pumps GroupBA03 Valves GroupBA04 Machine Tools GroupBA05 Agricultural and Domestic Pumps GroupBA06 Printing Press GroupBA07 Anti-Corrosion Products GroupBA08 Other ProductsBA09 Common Services

Chart of Accounts

One company code can use only one Chart of Accounts and hence only one will be defined.

Code NameKBCA Kirloskar Bros Chart of Accounts



Controlling Area

At least one controlling area is required to activate the CO Module and one company code can be assigned to only one controlling area.


Operating Concern

At least one operating concern is required to be defined to activate Profitability Analysis. A decision in taken by the project management to activate Profiatbility Analysis module at a later date. Therefore it will not be activated but the TOBE document contains the procedure for future. The operating concern when activated will be Costing Based .




Master Data

General Ledger

The G/L master will be of 6 digits as in the legacy system. It will help in maintaining the user comfort. These G/L accounts will be logically grouped into account groups within chart of account (KBCA). The account groups and number ranges for the G/L masters are as follows:

Type of GL Account Group Number RangeLiabilities LIAB 100000 to 199999Assets ASST 200000 to 299999Income INCO 300000 to 399999Expenses EXPS 400000 to 499999

Creation of new G/L account and changes thereto in Chart of Account will be controlled centrally by Corporate Finance and Accounts Department, Pune. Display authority should be available to all the users.

The entire general ledger accounts except for control (Reconciliation) accounts will be subject to line item management. Most of the balance sheet accounts will be subject to open item management. EEFC accounts are to be maintained in foreign currency.

Customer

Customer master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, whether registered dealer or unregistered, in case of registered dealer his registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act, type of customer, whether he is a vendor also.

Customers should be bifurcated into various types such as: Dealers, Direct Customers, Industrial Sector, Government / Semi Government Undertakings, Original Equipment Manufacturers, Turnkey Project Customers, Associate Concerns, Overseas Clients, One Time (Stray) Customer.

The range of accounts numbers will be of 6 digits which is allocated as under:

Customer Group Code

Customer Group Name

Number Range Reconciliation Account

KBEX Exports – KBL 151000 to 170000 240200KBIN Inland – KBL 100000 to 150000 240100KBOT One-time cust.- KBL 171000 to 171100 240100

Every customer will have unique account number for E-MAD operations.



Whenever new customer master is to be opened the requiring department will forward a requisition in specific format to concerned department. On the basis of such requisition, new customer master will be opened. In case of change it will be informed to the concerned department to effect the changes in master record.

Vendor Vendor master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act. It should also be mentioned whether he is small-scale industrialist, type of vendor, whether he is a customer also.

Vendors should be bifurcated into various types such as: Employee, Factories and offices of KBL, Ancillary Units, Small Scale Industries, and Overseas Suppliers, Contractors, Associate Concerns and others.

The range of accounts numbers will be of 6 digits which is allocated as under:

Factories and offices of KBL 200001 to 200200-KBFAAncillary Units 200201 to 210000-KBAUSmall Scale Industries 210001 to 220000-KBSSOverseas Suppliers 220001 to 225000-KBOSContractors 225001 to 230000-KBCTAssociate Concerns 230001 to 231000-KBACOthers 231101 to 240000-KBOTCapital Goods 231001 to 231100-KBCGEmployees 000001 to 200000 - KBEM(Employee’s ticket number will be his account number in AP Ledger)

Following will be the respective Reconciliation Accounts in General Ledger for above range of accounts:

140300 – Depot Ledger Controlling Account for range of accounts with numbers 200001 to 200200.140400 – Advance Ledger Controlling Account for range of accounts with numbers 1000 to 200000140500 – Accounts Payable Controlling Account for all the remaining accounts.

Every vendor will have unique account number for E-MAD operations. Whenever new vendor is to be opened, the requiring department will forward a requisition in specific format to concerned department. On the basis of said request, new account will be opened.

In case of change it will be informed to the concerned department to effect the changes in master record.



Cost Centres

Cost centres will be defined to reflect location and product group. The cost centre numbers will be numeric of five digits. The numbering logic will be as follows:

First two numbers Location (e.g. Pune, Mumbai)Last three numbers Product group (e.g. DB, KPD, and Mini)

For each location, common cost centres will also be created to collect costs, which are not directly allocable. One additional common cost centre will also be created at locations with service centres for service management.

Combination of product groups will form a product division (e.g. industrial pumps, valves). Product division will not form part of cost centre numbering logic but will be reflected through sub-groupings (nodes) in cost centre standard and alternate hierarchies.

Cost Centre Standard Hierarchy

Standard hierarchy will be maintained location wise, product division wise. The node names will be KBC00 + location code + Product division code. The hierarchy structure will be as follows:

KBC00

KBC00 + location code

KBC00 + location code + product division code

The cost centres will be attached to the lowest level node.

Cost Centre Group (Alternate Hierarchies)

Additional cost centre groups will be maintained product division wise, product group wise as follows:

KBC10

KBC10 + product division code

KBC10 + product division code + product group code



Profit Centres

Profit centres will be defined to reflect location, product group and SBU. The profit centre numbers will be numeric of seven digits. The numbering logic will be same as that of cost centres for location and product group:

First two numbers - Location (e.g. Pune, Mumbai)Next three numbers - Product group (e.g. DB, KPD, Mini)Last two numbers - SBU

The cost centres will be attached to the respective profit centres.

Combination of product groups will form a product division (e.g. industrial pumps, valves). Product division will not form part of profit centre numbering logic but will be reflected through sub-groupings (nodes) in profit centre standard and alternate hierarchies.

Profit Centre Standard Hierarchy

Standard hierarchy will be maintained location wise, product group wise. The node names will be KBL00 + location code. The hierarchy structure will be as follows:

KBP00

KBP00 + location code

KBP00 + location code + product division code

The profit centres will be attached to the lowest level node.



Profit Centre Groups (Alternate Hierarchies)

Additional profit centre group will be maintained as follows:

KBP10

KBP10 + product division code

KBP10 + product division code + product group code

KBP20

KBP20 + SBU

Cost Elements (Primary and Secondary)

The necessary income and expenditure GL accounts will be created as primary cost and revenue elements. The number range has to be of same as that of GL accounts i.e. 300000 to 499999. The following primary cost element categories will be used:

1 - Primary costs/cost-reducing revenues4 - Accrual/deferral per debit = actual11 - Revenues12 - Sales deduction22 - External Settlement

The secondary cost elements will be created with a number range of 500000 to 599999. The following secondary cost element categories will be used within the given number ranges.

Category Number range21 - Internal settlement 500000 to 51999931 - Order/project results analysis 520000 to 53999941 - Overheads 540000 to 55999942 - Assessment 560000 to 57999943 - Internal activity allocation 580000 to 599999

The secondary cost elements will be created with an interval of 100. E.g. Cost elements of category 21 will be 500100, 500200,500300 and so on.

Revenue and Cost Element Group

The following revenue and cost element grouping will be maintained. This will be first maintained in CCA and then will be copied to PCA.



KBL000 Revenue and Cost element group

KBL100 Sales

KBL101 Sale of main productsKBL102 Sale of servicesKBL103 Sale of spares

KBL200 Other income

KBL201 Income from investmentsKBL202 Miscellaneous receiptsKBL203 Income from agricultureKBL204 Profit on sale of assetKBL205 Recovery of bad debtsKBL206 Profit on sale of investmentsKBL207 Royalty received

KBL300 Material cost

KBL301 Cost of goods soldKBL302 Stores and spares consumed KBL303 Processing charges

KBL400 Personnel related expenses

KBL401 Salaries, wages & bonusKBL402 Payment under VRSKBL403 Contribution to PF & state insuranceKBL404 Contribution to superannuation fundKBL405 Workmen & staff welfare expensesKBL406 Provision for gratuity

KBL500 Brokerage and commission

KBL501 BrokerageKBL502 Commission

KBL600 General expenses

KBL601 Power & fuelKBL602 Repairs to buildingsKBL603 Repairs to machineryKBL604 RentKBL605 Rates & taxesKBL606 InsuranceKBL607 Excise duty paidKBL608 Travelling & conveyanceKBL609 Advertising & publicityKBL610 Postage & telephone



KBL611 TransportationKBL612 Lease rentKBL613 General ExpensesKBL614 DonationsKBL615 Directors’ feesKBL616 Directors’ travelling expensesKBL617 Directors’ remunerationKBL618 Managing director’s remunerationKBL619 Bad debts written offKBL620 Royalties & feesKBL621 Agricultural expensesKBL622 Loss on sale / scrapping of fixed assetsKBL623 Provision for doubtful debts / advancesKBL624 Loss on sale of investments

KBL625 Services Received from PressKBL626 Services Received from Head OfficeKBL627 Excess Provision

KBL700 Depreciation

KBL800 Interest Paid

KBL900 Cash Discount

KBL990 Other secondary costs

KBL991 Internal settlementKBL992 Order / project result analysisKBL993 OverheadsKBL994 AssessmentKBL995 Internal activity allocation

The following balance sheet group will be created for reporting of inventory, accounts receivable and accounts payable in PCA.

KBLBS Balance sheet accounts

KBLBS-INV Inventory KBLBS-AR Accounts receivableKBLBS-AP Accounts payable

Activity Types

Activity types will be used for service activity for service management module. The activity type names will be alphanumeric. Common activity types will be created for all product divisions. These are as follows:



Code Name Unit Cost ElementAT01HR Upto & Including Superviosors Hour 580100AT01DY Upto & Including Superviosors Day 580200AT02HR Above Superviosors, upto & incl.

ManagersHour 580300

AT02DY Above Superviosors, upto & incl. Managers

Day 580400

AT03HR Above Managers Hour 580500AT03DY Above Managers Day 580600

Statistical Key Figures (SKF)

SKFs will be created for each location to act as a base for assessment of common cost centre costs. The units of measures to be used are

% - PercentageEA – Each (number of people, sales value)M2 - Sq. meter (floor space).

The SKFs name can be of 6 character alphanumeric. It will start with 2 digit location code used in cost centre numbering logic followed by four characters to reflect the purpose of SKF. The data in SKFs will be reviewed every quarter to incorporate changes, if any. Only actual SKFs will be maintained for first year and will be extended to plan data subsequently.

Refer Annexure – 1 for flow chart on master data



General Ledger

TO-BE DocumentFor SAP R/3 Implementation at Kirloskar Brothers Limited

Date : 23rd Aug 2000Sr. No of TO BE document FI001AS-IS Business Process Name: General Ledger

Page no.: 10 to 18Name of Business Process : G/L Posting – StandardModule: FICO Sub-module : GLFlow Chart of Business Process : Annexure - 2Detailed description of Business Process:

Requirement:

Generate accounting documents Facility to display and change (limited extent) the accounting document Facility to park the document and subsequent posting/cancellation of the parked

document Location specific document numbers to be generated internally Facility for document entry with reference to predefined entries Facility to account multi currency transactions. Control facility at the time of data entry such as that particular user should enter only

particular types of voucher

Process: Every business transaction (journal vouchers, debit / credit advice, asset accounting,

cash/bank, period end provisions ) not generated through any module of SAP will be accounted on the basis of manually prepared vouchers duly approved, checked by the appropriated personnel

Based on such vouchers, accountants will enter the data in the system using direct posting, account assignment model, fast entry or sample document facility

The appropriate document type will be used based on location While entering he will check whether debit amount is equal to credit amount. In case it

is not equal it will be corrected and will post the document. In case user is not having authorization, he will park the document and senior user

having authorization will post / cancel the parked document.

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Document Register based on document type, posting date, period etc.

Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation and for facilitating the audit process and for the purpose of statutory compliance.



Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable

If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Cost Center

Inputs/ data received from other function for this process, ( if any ) : No

Output from this business process sent to other functions, ( if any ) : No

Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature

M M Naik KBL - Kirloskarvadi S Shreekrishnan KBL - Dewas V R Kulkarni KBL - Pune Head Office M R Rajwade KBL - Pune Projects R R Kittur KBL - Pune Area Office




Date : 23rd Aug 2000Sr. No of TO BE document : FI002AS-IS Business Process Name: General Ledger

Page no.: 10 to 18Name of Business Process : G/L Posting – OffsettingModule: FICO Sub-module: GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Generate accounting documents and clear the same with reference to open items Facility to display and change (limited extent) the accounting document Facility to park the document and subsequent posting/cancellation of the parked

document Location specific document numbers to be generated internally Facility to account multi currency transactions Control facility at the time of data entry such as that particular user should enter only

particular types of voucher

Process:

Every business transaction not generated through any module of SAP will be accounted on the basis of manually prepared vouchers duly approved, checked by the appropriate personnel

Based on such vouchers, accountants will enter the data in the system using direct posting, account assignment model, fast entry or sample document facility

While entering the data, user will offset (clear) the transaction by selecting the open items

In case open item and the amount to be cleared is not equal, it can be treated as partial payment against particular open item or open item will be cleared with the payment amount and open item for balance amount (residual) will be created

While entering he will check whether debit amount is equal to credit amount. In case it is not equal it will be corrected and will post the document

In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document

Gaps: NilAny reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Document Register based on document type, posting date, period etc.

Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation and for facilitating the audit process and for the purpose of statutory compliance.Any document/output would be printed for this business process: No



If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Cost Center.








Date : 23rd Aug 2000Sr. No of TO BE document : FI002AS-IS Business Process Name: General Ledger

Page no.: 10 to 18Name of Business Process : G/L Planning ( Standard )Module: FICO Sub-module: GLFlow Chart of Business Process : Annexure - 3Detailed description of Business Process:

Requirement:

Budgeted financial data for each Segment / G/L account / on period basis i.e. monthly, quarterly, yearly.

Accumulate budget data from CCA module for expense accounts to FI module

Process:

Get information of plan data from all the concerned departments / cost centers at Company Code Level, Business Area Level, G/L Account Level and amount

Information for cost center will be for expense accounts only Transfer all the expense after summing up for all the cost centers Get information of plan data bifurcated into periods such as monthly / quarterly, etc. Compare actual versus plan

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Actual versus plan – financial statements Variance and percentage

Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of decision making and management information.





Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, G/L account

Inputs/ data received from other function for this process, ( if any ) : Yes. The data is received from CO-CCA.

Output from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :

Name of Team member Organization/Bus. Unit Signature M M Naik KBL - Kirloskarvadi S Shreekrishnan KBL - Dewas V R Kulkarni KBL - Pune Head Office M R Rajwade KBL - Pune Projects R R Kittur KBL - Pune Area Office




Date : 23rd August 2000Sr. No of TO BE document : FI003AS-IS Business Process Name: General Ledger

Page no.: 10 to 18Name of Business Process :Manual Clearing (Standard)Module: FICO Sub-module : GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

System should facilitate scrutiny of General Ledger Accounts Facility of clearing open items should be available In case of part clearing, option of both partial and residual clearing should be available

Process:

Transaction in General Ledger will be verified with original vouchers and cleared against respective open line items

Gaps: Nil

Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: Not ApplicableAny document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business AreaInputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :




Accounts Receivable


Date : 24th August 2000 Sr. No of TO BE document : FI004AS-IS Business Process Name: Accounts Receivable

Page no.: 23 to 89Name of Business Process : Customer Invoices (SD and SM Module Related)Module: FICO Sub-module : ARFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

User defined Age wise, payment terms wise, group wise, region wise classification of invoices/ balances.

Profit center wise bifurcation of balances appearing to the account of customer Due date wise classification of dues from customers (Segment wise) Customer account to display the different order wise unadjusted advances and

particulars of pending Sales Tax declarations Facility to view the customer balances as a whole together with all the branches Customers debit notes if any will come to Accounts Department directly. Accounts

Dept. will exercise control on Customer’s debit notes Generate accounting Documents Facility to Display and change(Limited extent) the accounting document Location specific document numbers to be generated internally Automatic calculation of overdue interest, liquidated damages and cash discount Tracking of forms Maintenance of various registers mandatory as per Sales Tax Acts Accounting in multiple currencies. Report of Running Account (RA) Bills

Process:

After the billing process done in SD module, accounts department will verify the accounting documents generated on daily basis

Gaps: Nil Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer Information to arrive at the amount of sales tax payable Report on user defined Age wise, payment terms wise, group wise, region wise

classification of invoices and credit notes on / to customers Document Register based on document type, posting date, period etc. Customer Trial Balance



Report of Running Account (RA) Bills

Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area

Inputs/ data received from other function for this process, (if any): SD module will release invoice for accounting after all the processes of inquiry, order, despatch and billing.







Date : 24th August 2000Sr. No of TO BE document : FI005AS-IS Business Process Name: Accounts Receivable

Page no.: 23 to 89Name of Business Process : Customer Invoices (FI Generated) Module: FICO Sub-module : ARFlow Chart of Business Process : Annexure - 4Detailed description of Business Process:

Requirement:

Facility to raise invoice for sale that does not pertain to products and which is not routed through SD module

User defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers and balances.

Profit center wise bifurcation of balances appearing to the account of customer Due date wise classification of dues from customers Customer account to display the different order wise unadjusted advances and

particulars of pending Sales Tax declarations Facility to view the customer balances as a whole including special G/L balances

together with all the branches Generate accounting Documents Facility to Display and change(Limited extent) the accounting document Facility to park the document and subsequent posting/cancellation of the parked

document Location specific document numbers to be generated internally Automatic calculation of cash discount

Process:

The requests to raise invoices will come to Accounts Dept. directly from concerned departments (e.g. sale of miscellaneous items like scrap etc.), complete in all respects.

Accounts Dept. will raise the invoice and account for Accounts Dept. will receive the cheque / cash from the customer against the invoice and

account for the same In case user is not having authorization, he will park the document and senior user

having authorization will post / cancel the parked document

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer Sales Invoice Sales Tax register Report on user defined Age wise, payment terms wise, group wise, region wise



classification of invoices and credit notes on / to customers Document Register based on document type, posting date, period etc. Customer Trial balances




Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center

Inputs/ data received from other function for this process, (if any): Nil

Output from this business process sent to other functions, ( if any ) : Nil







Page no.: 23 to 89Name of Business Process : Customer Down Payment (Standard)Module: FICO Sub-module : ARFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Accounting in multiple currency Information regarding down payment received, such as sales order number, reference

of commercial policy, details of earnest money deposit etc. Down payments received from customers should be accounted to Special General

Ledger Account Provision for calculation and accounting of interest on down payments Information regarding bank guarantees given.

Process:

Down payments will be received from customers in accordance with the terms of sales order, commercial policy etc.

This will contain the name of the customer, nature of payment and information of tax deducted by the customer.

In case bank guarantees are given to the customer, it will be accounted as statistical information.

Based on this information, the down payment received from customer will be entered into books of accounts, net of TDS. Credit for TDS will be given to the customer only on receipt of TDS certificate before due date of filing our return

The system should generate money receipt while accounting such down payments. Such vouchers will be entered into the books of accounts through location specific

document type “ Bank / Cash Journal” Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: NADescription of reports to be used i.e. purpose of such report: NAAny document/output would be printed for this business process: Yes If Yes mention name of such document: Money Receipt.If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable



Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center.Inputs/ data received from other function for this process, (if any): Down Payment RequestOutput from this business process sent to other functions, (if any): Yes. Money receipts will be sent to the customer, pay in slip will be used for bank transactions, advices for interest will be mailed to customer.







Page no.: 23 to 89Name of Business Process : Manual Account Clearing (Customer)Module: FICO Sub-module : ARFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

System should facilitate scrutiny of customer Accounts. Facility of clearing open items should be available. In case of part clearing, option of both partial and residual clearing should be available.

Process:

Transaction in customer Ledger and Special General Ledger will be verified with original vouchers and cleared against respective open line items

Open items in customer ledger with be verified with each other and cleared against respective open line items

Gaps: Nil

Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: No

Description of reports to be used i.e. purpose of such report: N A









Page no.: 23 to 89Name of Business Process : Manual Incoming Payments Module: FICO Sub-module : ARFlow Chart of Business Process : Annexure - 5Detailed description of Business Process:

Requirement:

Accounting in multiple currency Details of payment received, such as invoice number, date, amount, nature of

deductions made and amounts deducted on each count, overdue interest paid etc. Information regarding deduction of Income Tax Payments received from customers should be accounted to their account in Accounts

Receivable Ledger Provision for clearing payments received from customers fully / partially / residually

against open items in customer’s account Provision for calculation and accounting of overdue interest and cash discount on down

payments

Process:

Payments will be received from customers in accordance with the terms of sales order, commercial policy etc.

This will contain the name of the customer, details of payment, details of deductions made and amounts deducted on each count, overdue interest paid, information for deduction of tax at source etc.

Based on this information, the payment received from customer will be entered into system

The system should generate money receipt while accounting such down payments. Such vouchers will be entered into the books of accounts through location specific

document type “ Bank / Cash Journal “ Payments received from customers will be cleared against open items in the customer’s

accounts Calculation and accounting of cash discount will be made at the time of accounting of

payments received from customers.

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer. Report on age wise classification of customers, due date-wise analysis of dues from



customers, Profit center-wise information on dues from customers. Document Register based on document type, posting date, period etc.













Page no.: 23 to 89Name of Business Process : Manual Outgoing Payments Module: FICO Sub-module : ARFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Accounting in multiple currency Information regarding customers to whom payment is to be made Payments made to customers should be accounted to their account in Accounts

Receivable Ledger as well as to his account in Special General Ledger Provision for clearing manual payments against open items in respective accounts

Process:

Payments will be made to customers in accordance with instructions received from appropriate authorities

This will contain the name of the customer, reason for payment. Based on this information, FI should generate Remittance Letter through SAP R/3

system Based on this information, cheque will be prepared in the name of the customer and

payment made Such vouchers will be entered into the books of accounts through location specific

document type “ Bank / Cash Journal “ Payments made to customers will be cleared against open items in his account in

Accounts Receivable Ledger as well as in Special General Ledger, automatically either in full / part / residual

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer. Report on Age wise classification of customer, due date-wise analysis of dues from

customers, Profit center-wise information on dues from customers. Document Register based on document type, posting date, period etc.




Any document/output would be printed for this business process: Yes If Yes mention name of such document : Remittance Letter

If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable









Date : 24th August 2000Sr. No of TO BE document : FI010AS-IS Business Process Name: Not in As-IS

Page no.: Name of Business Process : Posting of parked documents ( Standard ) Module: FICO Sub-module : ARFlow Chart of Business Process : Annexure – 4 & Annexure - 5Detailed description of Business Process:

Requirement:

Facility to park the document and subsequent posting/change/display of the parked document.

Location specific document numbers to be generated internally.

Process:

In case user is not having authorization, he will park the document and senior user having authorization will post / change / cancel the parked document.

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer. Report on Agewise classification of customers, due date-wise analysis of dues from

customers, cost center-wise information on dues from customers. Document Register based on document type, posting date, period etc.

Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information and for facilitating the audit process and for the purpose of statutory compliance.

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business AreaInputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : No





Page no.: 23 to 89Name of Business Process : Customer Down Payment ClearingModule: FICO Sub-module : ARFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Facility of clearing open items in customer Account with Special General Ledger Account

On clearing of open items in Special General Ledger Account with those in customer Account, the system should generate accounting entry with location specific document type.

Process:

Transaction in customer Ledger and Special General Ledger will be verified with original vouchers and cleared against respective open line items

Open items in customer ledger will be verified with each other and cleared against respective open line items

Down payments received from customers will be cleared against open items in the customer’s accounts as well as in accounts in Special General Ledger

Gaps: Nil

Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: No

Description of reports to be used i.e. purpose of such report: N A

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit CenterInputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : No





Page no.: 23 to 89Name of Business Process : Customer Credit Memo (FI Generated) Module: FICO Sub-module : ARFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

User defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers and balances.

Profit center wise bifurcation of balances appearing to the account of customer. Due date wise classification of dues from customers. Customer account to display the different order wise unadjusted advances and

particulars of pending Sales Tax declarations. Facility to view the customer balances as a whole together with all the branches

including special G/L balances. Customers debit notes if any will come to Accounts Department directly. Accounts

Dept. will exercise control on Customer’s debit notes. Generate accounting Documents Facility to Display and change(Limited extent) the accounting document Facility to park the document and subsequent posting/cancellation of the parked

document. Location specific document numbers to be generated internally. Automatic calculation of overdue interest, liquidated damages and cash discount.

Process:

Accounts Dept. will receive debit note from customer, if any. After verification of the debit note, if it is observed that the customer has raised the debit

note for excess amount, Accounts Dept. will raise a debit note on customer. In such case correct amount will be debited to Income Account, excess amount will be debited to the customer’s account and total amount of debit note will be credited to the customer’s account. If he has raised debit note for fewer amounts, the customer’s debit note will be passed for correct amount using location specific document type.

In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document.

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer. Sales Tax register



Report on user defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers.

Document Register based on document type, posting date, period etc.





Inputs/ data received from other function for this process, (if any): Nil

Output from this business process sent to other functions, ( if any ) : Nil





Accounts Payable


Date : 24th August 2000Sr. No of TO BE document : FI013AS-IS Business Process Name: Accounts Payable

Page no.: 91 to 97Name of Business Process : Vendor Invoices Module: FICO Sub-module : APFlow Chart of Business Process : Annexure - 6Detailed description of Business Process:

Requirement:

Accounting in multiple currency. Invoice from vendor with complete details such as reference of purchase order, date,

description of material, quantity, rate, discount, value, details of duties and taxes, terms of payment etc.

Open items in vendor account should appear. Line items in vendor account should appear. Age-wise classification of dues to vendors. Due date-wise classification of dues to vendors. Facility for two-way (i.e. without GRN) and three-way invoice verification. Generate accounting Documents Facility to Display and change (Limited extent) the accounting document Facility to park the document and subsequent posting/cancellation of the parked

document. Location specific document numbers to be generated internally.

Process:

The invoices of vendors will come to accounting clerk and will be posted with reference to Purchase Order and GRN posted (if any) in MM module.

Sometimes FI also will receive invoices of vendors directly from them (e.g. supply of stationery etc. items).

Invoice verification activity will be done by FI only. Invoice verification will be two-way as well as three-way. Two-way means invoice verification without GRN. Three way means invoice verification with GRN. It will be accounted using location specific document types.

If on invoice verification it is observed that the vendor has raised the invoice for excess amount, a debit note will be raised on vendor. In such case correct amount will be debited to Inventory Account, excess amount will be debited to the vendor’s account and total invoice amount will be credited to the vendor’s account. If he has raised invoice for fewer amounts, the vendor’s invoice will be passed for correct amount.




Gaps: NilAny reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available. Report on Agewise classification of creditors, due date-wise analysis of dues to vendors,

product group/ location wise payables. Document Register based on document type, posting date, period etc. Vendor Trial Balance. Vendor wise purchases.



If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system: Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center.

Inputs/ data received from other function for this process, ( if any ) : Purchase Order, GRN. Output from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :






Page no.: 91 to 97Name of Business Process : Vendor Credit Memo (Invoice related)Module: FICO Sub-module : APFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Accounting in multiple currency. FI will exercise control on Vendor credit memo. Facility for verification and adjustment against original invoice of the vendor. Generate accounting Documents Location specific document numbers to be generated internally.

Process:

Vendor Credit Memo with complete details (such as reference of Purchase Order, Date, Vendor’s Invoice, Description of material, Quantity, Rate, Discount, Reason for credit memo, details of duties and taxes) will come to Accounts Department, who will verify based on supporting and other documents available.

If on verification it is observed that the vendor has issued the credit memo for excess amount, a credit note will be issued to vendor. In such case total amount of credit memo will be debited to the vendor account, excess amount will be credited to the vendor’s account and balance amount will be credited to the respective Inventory/Expenses account. If he has issued the credit memo for lesser amounts, the vendor’s credit memo will be passed for correct amount using location specific document types.


Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available. Report on Age wise classification of creditors, due date wise analysis of dues to

vendors, product-group/ location wise payables. Document Register based on document type, posting date, period etc.





If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system: Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center.

Inputs/ data received from other function for this process, ( if any ) : Purchase Order, GRN and vendor Credit Memo request from MM. Output from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :






Page no.: 91 to 97Name of Business Process : Vendor Down Payment (Standard)Module: FICO Sub-module : APFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Accounting in multiple currency. Information regarding vendors to whom down payment is to be made. Information regarding deduction of Income Tax. Advances paid to vendors should be accounted to Special General Ledger Account. Balances of vendor accounts in Reconciliation Account as well as Special General

Ledger Account should be shown individually and also in totality.

Process:

Cashier will receive Payment request containing the name of the vendor, reason for payment and instructions for deduction of tax at source from Purchasing Department for Advances in accordance with Purchase order after duly verified by the appropriate authority.

Cashier will prepare the cheque and voucher on the basis of Payment Request. It will be verified and signed by the authorized personnel.

Accounting document will be posted in SAP R/3 for the Advance payment and FI will generate Remittance Letter through SAP R/3 system.

Such vouchers will be entered into the books of accounts through location specific document type “ Bank / Cash Journal “.

In case letter of credit, bank guarantee given, it will be accounted as statistical information.

Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: NADescription of reports to be used i.e. purpose of such report: NAAny document/output would be printed for this business process: YesIf Yes mention name of such document : Remittance Letter If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit CentreInputs/ data received from other function for this process, ( if any ) : No





Page no.: 91 to 97Name of Business Process : Manual Clearing (Vendor)Module: FICO Sub-module : APFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

System should facilitate scrutiny of Vendor Accounts. Facility for clearing debit items against credit items and vice versa should be available. In case of part clearing, option of both partial and residual clearing should be available. Facility of clearing open items in Vendor Account with Special General Ledger open

items. On clearing of open items in Special General Ledger Account with those in Vendor

Account, the system should generate necessary accounting document using location specific document type.

Provision for clearing at the time of entering manual payments against vendor invoices / credit notes.

Process:

Transaction in Vendor Ledger and Special General Ledger will be verified with original vouchers and cleared against respective open line items.

Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: N AAny document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center Inputs/ data received from other function for this process, ( if any ) : No





Page no.: 91 to 97Name of Business Process : Vendor Invoice ( Standard ) (Direct FI Invoices)Module: FICO Sub-module : APFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Accounting in multiple currency. Provision for two ways (i.e. without GRN) and three ways invoice verification. Generate accounting Documents Location specific document numbers to be generated internally.

Process:

Purchase orders will be created using MS-word and will not be entered in MM-purchasing.

The invoices of vendors will come to accounts department. (e.g. supply of stationery etc. items) with complete details such as reference of purchase order, date, description of material, quantity, rate, discount, value, details of duties and taxes, terms of payment etc.

Confirmation for receipt of material will also come to accounts department. Document confirming receipt of material / service with reference to Purchase / Sales Order against which the material is purchased and serial numbers of the products purchased.

Invoice and receipt document will be matched. Accounts department will do invoice verification activity on the basis of available

supporting documents such as purchase order, material receipt document. If on invoice verification, it is observed that the vendor has raised the invoice for excess

amount, a debit note will be raised on vendor. In such case correct amount will be debited to respective purchase account, excess amount will be debited to the vendor’s account and total invoice amount will be credited to the vendor’s account. If he has raised invoice for lesser amounts, the vendor’s invoice will be passed for correct amount through location specific document types.


Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available. Report on Agewise classification of creditors, due datewise analysis of dues to vendors,



cost centre wise information on dues to vendors. Document Register based on document type, posting date, period etc.













Page no.: 91 to 97Name of Business Process : Vendor Credit Memo ( Standard ) (Direct FI related)Module: FICO Sub-module : APFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Accounting in multiple currency. Document confirming approval to vendor credit memo from authorized officer. Provision for verification and adjustment against original invoice of the vendor. Generate accounting Documents Location specific document numbers to be generated internally.

Process:

The credit memo of vendors with complete details (such as reference of purchase order, date, vendor invoice, date, description of material, quantity, rate, discount, value, reason for credit memo, details of duties and taxes, terms of payment etc.) will come to accounts department duly approved by appropriate authority with required supporting documents.

This credit memo will be verified with original invoice of the vendor and supporting as referred above.

After verification, the vendor credit memo will be accounted for in the System. If on verification it is observed that the vendor’s credit memo is for excess amount, a credit note will be issued to vendor. In such case correct amount will be debited to appropriate General Ledger Account, excess amount will be credited to the vendor’s account. If he has raised credit memo for lesser amount, the vendor’s credit memo will be passed for the amount stated in credit note and the debit note will be raised for the differential amount through location specific document types.


Gaps: Nil

Any reports required related to current business process : Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available. Report on Agewise classification of creditors, due date-wise analysis of dues to vendors,

product group / location wise, segment wise information on dues to vendors. Document Register based on document type, posting date, period etc.

If Yes , whether required format of such report is attached: Yes





Page no.: 91 to 97Name of Business Process : Manual Outgoing Payments Module: FICO Sub-module : APFlow Chart of Business Process : Annexure - 7Detailed description of Business Process:

Requirement:

Accounting in multiple currency. Information regarding vendors to whom payment is to be made. Information regarding deduction of Income Tax. Payments made to vendors should be accounted to their account in Accounts Payable

Ledger.

Process:

Payments will be made to vendors only on receipt of payment request containing name of the vendor, reason for payment and instructions for deduction of tax at source from Purchasing Department.

The Payments will be made to vendors in accordance with the terms of Payment as stated in Purchase Order.

Based on this information, cheque will be prepared in the name of the vendor. Accounts Department will enter the above payment in the system specifying against

which invoice (through location specific document type “ Bank / Cash Journal “) and Remittance Letter will be generated through SAP R/3 system.

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Report on Agewise classification of creditors, due date-wise analysis of dues to vendors,

profit center-wise information on dues to vendors. Document Register based on document type, posting date, period etc.


Any document/output would be printed for this business process: Yes If Yes mention name of such document : Remittance Letter



If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable









Date : 24th August 2000Sr. No of TO BE document : FI020AS-IS Business Process Name: Not in As-Is

Page no.: Name of Business Process : Posting of parked documents ( Standard ) Module: FICO Sub-module : APFlow Chart of Business Process : Annexure – 6 & Annexure – 7Detailed description of Business Process:

Requirement:

Facility to park the document and subsequent posting/change/display of the parked document as referred in Vendor invoices / credit memo process.

Location specific document numbers to be generated internally.

Process:

In case user is not having authorization, he will park the document and senior user having authorization will post / change / cancel the parked document.

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Report on Agewise classification of creditors, due datewise analysis of dues to vendors,

cost centrewise information on dues to vendors. Document Register based on document type, posting date, period etc.


Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center.Inputs/ data received from other function for this process, ( if any ) : Vendor invoice, Purchase Order, GRN and vendor Credit Memo from MM. Output from this business process sent to other functions, ( if any ) : No





Page no.: 91 to 97Name of Business Process : Vendor Down Payment (Clearing)Module: FICO Sub-module : APFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement: Provision for clearing down payments against vendor invoices.

Process: Down payments made to vendors will be cleared after invoice verification activity. Generate accounting documents using location specific document types.

Gaps: Nil

Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NA

Description of reports to be used i.e. purpose of such report: NA

Any document/output would be printed for this business process: YesIf Yes mention name of such document : Remittance Letter If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Centre.Inputs/ data received from other function for this process, ( if any ) : No





Closing Operations


Date : 22rd August 2000Sr. No of TO BE document : FI022AS-IS Business Process Name: General Ledger – Closing Operations

Page no.: 18Name of Business Process : Foreign currency valuation (balances)Module: FICO Sub-module : GL – ClosingFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Valuation of balances in foreign currency (G/L accounts) at the end of each quarter and creation of required accounting document

Process:

Foreign currency rates (buying, selling, average) for the purpose of valuation will be maintained at each quarter

Valuation of G/L balances and generating accounting documentDr./Cr. Exchange difference account Dr./Cr. Respective G/L accountForeign currency - Nil, Local currency – Difference amount

In case of debit balances (assets) it will be valued at buying rate and in case of credit balances (liabilities) it will be valued at selling rate

Gaps: Nil

Any reports required related to current business process : Yes Report showing the details of calculationIf Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report: N A





Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : No






Date : 24th August 2000Sr. No of TO BE document : FI023AS-IS Business Process Name: General Ledger – Closing Operations

Page no.: 18Name of Business Process : Foreign currency valuation – Open itemsModule: FICO Sub-module : GL – ClosingFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Valuation of open items in foreign currency (customer / Vendor) at the end of each quarter and creation of required accounting document

Exchange difference should be accounted in respective purchase / sale account

Process:

Foreign currency rates (buying and selling) for the purpose of valuation will be maintained at each quarter

Valuation of open items at quarter end date and generating accounting documentDr./Cr. Respective Purchase / Sale account Dr./Cr. Clearing accountThis accounting document will be generated with posting date of end of the quarterThe aforesaid accounting document will be reversed on 1st of the next quarter

In case of debit balances (assets) it will be valued at buying rate and in case of credit balances (liabilities) it will be valued at selling rate

Gaps: Exchange difference will be accounted to exchange difference account instead of respective purchase / sale accountAny reports required related to current business process : Yes Report showing the details of calculationIf Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report: N AAny document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area. Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : No




Date : 24 August, 2000Sr. No of TO BE document : FI024AS-IS Business Process Name: General Ledger – Closing Operations

Page no.: 18Name of Business Process : Regrouping of Receivable and PayablesModule: FICO Sub-module : AR/AP – ClosingFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Regrouping of credit balances of customers and debit balances of vendors for the purpose of schedule VI reporting requirement

Process:

At the year-end, accounting document will be generated to regroup the balances of customer having credit balance and vendors having debit balances

Proper accounting document will be generated through the system

Gaps: Nil

Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: N AAny document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area. Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :





Date : 24 August, 2000Sr. No of TO BE document : FI025AS-IS Business Process Name: General Ledger – Closing Operations

Page no.: 18Name of Business Process : Business Area AdjustmentModule: FICO Sub-module : GL – ClosingFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement: Business Area wise Financial Statement for Segmental Reporting

Process: At the period-end, profit & loss account adjustment posting will be executed in test

mode. After analysis of the result the same will be executed in production run At the period-end, balance sheet account adjustment will be executed in test mode first

for calculation and then for posting. After analysis of the result the same will be executed in production run

Gaps: Nil

Any reports required related to current business process : Adjustment posting calculationsIf Yes , whether required format of such report is attached: No - StandardDescription of reports to be used i.e. purpose of such report: N AAny document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Cost Center, Profit Center Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :






Page no.: 18Name of Business Process :Customer / Vendor balance interest calculation Module: FICO Sub-module : GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

To calculate interest on customer and vendor invoices for delay in payment To generate accounting document for accounting of interest To calculate interest on business deposits and advances received from customers To Print Letter for interest (Business Deposit) and TDS deducted thereon.

Process:

At the month-end, appropriate authority will decide to whom to charge the interest, based on which customers will be selected

At the month-end, accounting document will be generated for interest in case of all the selected customers as stated aforesaid

Interest on business deposit and advances received from customers will be calculated on annual basis

Interest will be calculated for each invoices In case of Small-Scale vendors, it will be calculated at the year-end for overdue invoices Necessary accounting documents will be generated

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report: It is required for sending information to the customer.Any document/output would be printed for this business process: YesIf Yes mention name of such document : Credit Note for interest If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area






Page no.: 18Name of Business Process : Maintain GR/IR clearing account Module: FICO Sub-module : GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

To generate the information of goods received but not invoiced and invoiced but goods not received.

To adjust the aforesaid differences if quantity differences are smaller than particular percentage or purchase order is older than particular time period.

Process:

At the year-end, accounts department will determine GR’s which are not invoiced based on aforesaid criteria

At the year-end, accounts department will determine invoices for which goods are not received

After proper authorization the said unadjusted GR/invoices will be adjusted Necessary accounting documents will be generated

Gaps: NilAny reports required related to current business process : Yes Report showing GRs and invoices that are not settled

If Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report:

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : No





Page no.: 18Name of Business Process : Periodic Reporting Module: FICO Sub-module : GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

To generate the Reports at the month/year end

Process:

At the month end as well as year-end following reports will be generated on paper as well as in electronic form

Gaps: NilAny reports required related to current business process : Yes

1. Balance Sheet and Profit and Loss Account in Schedule VI format on quarterly basis at Company as well as Segment level.

2. Balance Sheet and Profit and Loss Account in Management Reporting Format on monthly basis.

3. Balance Sheet and Profit and Loss Account in both the above formats with actual versus actual of previous year and actualize versus planned on quarterly and monthly basis.

4. Data retention should be for a minimum period of eight years. 5. Daily and monthly cash flow statement actual versus planned and variance. 6. Trial balance for each ledger i.e. General Ledger, Accounts Receivables, Accounts

Payables etc. 7. Statement of account for each accounts with line items showing details of open items

and cleared items. 8. Balance confirmation of customers and Vendor. (separately for special G/L accounts)9. List of schedules attached to Balance Sheet and Profit and Loss Account. 10. Journal Listing for each document type on monthly basis 11. Facility to print all the documents12. List of bills of exchange13. Directory of chart of accounts at Business Area level 14. Directory of chart of accounts at company code level15. Account assignment manual 16. G L Account List ( Query )17. Document of duplicate invoice numbers 18. Recurring entry original documents19. Tax Related Reports 20. FOB Value of Exports of Goods and Services (Product-wise and Country-wise). As per

schedule VI of the Companies Act, and as per Section 80HHC of the Income Tax Act.21. C. I. F. Value of Imports (Raw Materials and Capital Goods)



22. Earnings and expenditure in foreign currency.

If Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report:

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : No








Page no.: 18Name of Business Process : Balance carried forward (FI) Module: FICO Sub-module : GL - ClosingFlow Chart of Business Process : NIlDetailed description of Business Process:

Requirement:

To carry forward the balances of customer, vendor, G/L accounts to the next fiscal year

Process:

At the year-end after finalization of accounts, i.e. after signing the audit report, the balances of customer and vendors will be carried forward to next fiscal year

At the year-end after finalization of accounts, i.e. after signing the audit report, the balances of G/L accounts will be carried forward to next fiscal year

Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: Not Applicable

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business AreaInputs/ data received from other function for this process, ( if any ) : No








Page no.: Name of Business Process : Material Debit / Credit Module: FICO Sub-module: GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Subsequent accounting of debit / credit to material account

Process:

On the basis of external document, such as vendor credit note, duly verified and authorized by appropriate authority necessary document for material debit/ credit will be entered

System will generate the necessary accounting documentGaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: Not Applicable

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : No








Page no.: Name of Business Process : Material Price Change Module: FICO Sub-module : GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

To account for the differences in prices of material for the purpose of valuation

Process: It will be carried out at the every quarter end Based on the authorization, material price changes will be done Necessary accounting document will be generated

Dr ./ Cr. Price Difference accountDr. / Cr. Inventory account

Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: Not Applicable

Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business AreaInputs/ data received from other function for this process, ( if any ) : No








Page no.: 91 to 97Name of Business Process : Withholding Tax Module: FICO Sub-module : GLFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

To deduct the TDS at the time of advances and at the time of booking invoices which ever is earlier

To print / reprint the TDS certificates and Annual Return To print the location wise (not segment wise) serial numbers on TDS certificate and

separate annual return for each location

Process:

At the time of down payment necessary tax is to be deducted At the time of booking invoices tax is to be deducted TDS at the time of invoices should be net of the TDS deducted at the time of down

payment On due date payment will be made to the account of Government Only after making payment to the Government, TDS certificate will be printed At the year-end annual return will be filedGaps: To print the location wise (not segment wise) serial numbers on TDS certificate and separate annual return for each location.Any reports required related to current business process : Yes Annual ReturnIf Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report: Not ApplicableAny document/output would be printed for this business process: Yes If Yes mention name of such document : TDS Certificate Duplicate TDS certificate If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : No



Periodic Processing


Date : 24th August 2000 Sr. No of TO BE document : FI032AS-IS Business Process Name: Not in As-Is

Page no.: Name of Business Process : Dunning Notice (Customer)Module: FICO Sub-module : ARFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

To provide facility for creating and printing dunning notices to customers for transactions in AR and special general ledger accounts

The dunning notice will be in three levels

Process:

Dunning letters will be sent to customers for reminding for overdue invoices and recovery of debit balances including earnest money deposits.

Dunning program will be executed on user decided time intervals. In case of invoices of dealers overdue for 5 days, dunning letters will be sent. If recovery

is not made and it is overdue for 20 days one more letter will be sent. Another letter will be sent after 35 days. Afterwards no letters will be sent. Based on the information stored in master record, personal follow up will be done. Similar rule will be followed for earnest money deposit.

Format of dunning notices for various reasons are enclosed. Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoAny document/output would be printed for this business process: Yes If Yes mention name of such document : Dunning Notice If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable







Page no.: Name of Business Process : Periodic Processing Module: FICO Sub-module: AR/APFlow Chart of Business Process : NilDetailed description of Business Process:Automatic Clearing Requirement: To provide facility for automatic clearing of open items.

Process: Transaction in customer Ledger, vendor ledger and Special General Ledger will be

verified with original vouchers and cleared against respective open line items. Open items in customer ledger will be verified and cleared against respective open line

items. Open items in vendor ledger will be verified and cleared against respective open line

items. Open items in special general ledger account will be verified and cleared against

respective open line items.

Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: No Description of reports to be used i.e. purpose of such report: Not ApplicableAny document/output would be printed for this business process: No If Yes mention name of such document : No If Yes, whether required format of document / output is attached: No Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area.Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :






Page no.: Name of Business Process : Dunning Notice (Vendor)Module: FICO Sub-module : APFlow Chart of Business Process : NilDetailed description of Business Process: Requirement: To provide facility for creating and printing dunning notices to vendors for recovery of

debit balances, The dunning notice will be in three levels.

Process: Dunning letters will be sent to vendors for reminding for payment of debit balances,

deposits and advances. Dunning program will be executed on user defined time intervals. In case of balances due from vendors, dunning letters will be sent. Maximum 3 letters

will be sent with time interval of 15 days. Afterwards no letters will be sent. Based on the information stored in master record, personal follow up will be done.

Format of dunning notices for various reasons are enclosed. Gaps: NilAny reports required related to current business process : NoIf Yes , whether required format of such report is attached: No Description of reports to be used i.e. purpose of such report: Not ApplicableAny document/output would be printed for this business process: Yes If Yes mention name of such document : Dunning Notice If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not ApplicableWhich hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area.Inputs/ data received from other function for this process, ( if any ) : NoOutput from this business process sent to other functions, ( if any ) : NoSign-off (Approval) for this document :




Profit and Cost Planning


Date : 24th August 2000Sr. No of TO BE document : CO001AS-IS Business Process Name: Not in As-Is

Page no.: Name of Business Process : Profit and Cost PlanningModule: FICO Sub-module : COFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Budgeted ( planned) data for each cost centre / profit centre and for each revenue / cost element should be available in the system for comparison with actuals

Budgeted ( planned) data of Sales qty, Revenues, Cost of Goods Sold, Direct Costs and Overheads should be available for a combination of customer group and material group for comparison with actual

The time spent by service departments should be posted to various service orders and these should be valuated at a pre-determined price. The prices will differ for each cost centre for same type of service rendered for each financial year

The planning data in finance and controlling should be uniform for expense accounts

Process:

Statistical Key Figures

Planned SKF data will be entered every year These will be used as a basis for allocation of common cost centre planned costs to

other cost centres

Cost Centres

Budgeted data i.e. revenue expenses will be compiled cost centre wise and cost element wise externally through. the normal annual budgeting process carried out in the organization

The annual budgeted figures should be broken up into month-wise figures only in case the month wise break-up is not equal

The data will be compiled in MS-Excel. The data will include figures in rupees, its month-wise distribution and explanation for the expense, if any

The data will be uploaded to SAP system through a program The data will then be copied to FI-GL planning Any change in the planned figures will not be given retrospective effect. For this the

planning transactions will be locked after the period ( month) is over The common cost centre costs will be allocated (through assessment) to other cost



centres based on applicable Statistical Key Figures

Activity Prices

The hourly prices will be determined externally for each activity type / cost centre combination for each financial year. The prices will be calculated externally will be uploaded through a program.

Profit Centres

Expenses planned (budgeted) on Cost Centres will automatically get transferred to Profit centres attached to the cost centres

Revenue elements and Balance Sheet accounts ( AR, AP and Inventory) will be planned externally. The data will be uploaded through a program

Profitability Segments

Data for Sales Quantities, Revenues, Cost of Goods Sold, Direct costs and overheads will be calculated externally and will be uploaded into profitability segments (customer group + material group) through a program

The planned overheads will not be allocated to a particular product This planning process will be done after one year of going live on the basis of actual

data available for the first year

Gaps: Nil

Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: No as the standard SAP report is meeting the requirement

Description of reports to be used i.e. purpose of such report : Report to compare planned Vs. actual data

Any document/output would be printed for this business process: NoIf Yes mention name of such document :

If Yes, whether required format of document / output is attached: Whether data records of current business process would be transferred to system other than SAP R/3 : NoIf Yes, Describe in details and attach the format in which data would be stored in the other system :

Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Controlling Area , Cost Centre , Profit Centre

Inputs/ data received from other function for this process, ( if any ) : The data is received from budgeting process in MS-Excel



Actual Posting (Regular as well as Period-end)


Date : 24th August 2000Sr. No of TO BE document : CO002AS-IS Business Process Name: Cost Center & Order Accounting

Page no.: 101 to 103Name of Business Process : Actual Posting ( Regular as well as Period-end)Module: FICO Sub-module : COFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

On line real time posting to various controlling objects from all other modules Costs/ Revenues should be accurately posted to the cost object where it belongs Allocation, distribution of costs Corrections to wrongly posted cost objects

Process:

Statistical Key Figures

Actual SKF data will be entered / revised every quarter These will be used as a basis for allocation (assessment) of common cost centre costs

to other cost centres

Cost Centres

Actual costs will be posted to the cost centres by following sources : FI-GL posting Goods receipts and invoice verification for revenue purchases Goods issue for free delivery / free samples Goods issue for scrapping of material and sale of scrap Settlement of non-billable service orders. These costs will be analyzed and costs

which are resulted from factory will be transferred to factory cost centres through. debit advices.

Settlement of internal orders (if any) Reposting of costs from one cost centre to another Accrual costs using Target = Actual method Cost centre assessment from common cost centres

The activity allocation from cost centres to service orders will post credit entries for services rendered by the cost centre under secondary cost elements

The over/under absorption on cost centres will be assessed to profitability segments i.e. a combination of customer group and product group



Internal Orders

Internal orders will be created to capture specific type of expenses such as trade fair, sales promotion, tendering etc.

Actual costs will be posted to the cost centres by following sources : FI-GL posting Goods receipts and invoice verification for revenue purchases Reposting of costs from one cost centre

The cost booked on internal orders will be settled (transferred) to relevant cost object i.e. cost centre or sales order

Profit Centres

Actual data flows in profit centre accounting from all other modules through profit centre assignments. The following objects of other modules are assigned to profit centres:

Cost centre : - in basic data Internal order :- in basic data Material master:- for each plant in either sales general/plant view or costing2

view Sales order: - in account assignment of sales order item. This can be entered

manually or through substitution rules at the time of sales order creation

Service order:- in additional data, assignments

Actual Revenues /costs will be posted to all the profit centres by following sources : Costs booked on cost centres will automatically get posted to the profit centres

attached to the cost centres Sales revenues / deductions and cost of goods sold will be posted through. Sales

Orders / billing documents based on the profit centres assigned to the sales orders. The sales order assignment to profit centre will be either through substitution rule or through direct input in the sales order

Balance sheet items (AR, AP and Inventory) will be posted to Profit Centres on periodic basis i.e. it will not be online and will be transferred after period end process in FI and CO Accounts receivable will be transferred to the profit centre assigned in the sales order

/ line item Accounts payable will be transferred to the profit centre of the material purchased

with reference to plant. The Profit centre is assigned for a material at plant level. In case of account assigned purchases ( i.e. directly debiting cost centre / internal order / sales order ) AP will be transferred to the Profit Centre assigned to the cost object

Inventory will be transferred to the profit centre assigned to the material in a particular plant

Service Orders

Actual costs will be posted to service orders by following sources : Goods issue to a service order FI-GL posting with cost assignment of service order Activity allocation from cost centres through. service order confirmation



These orders will be settled to the profitability segment for billable or to cost centre(s) for non-billable type

Sales orders which are cost objects (other than make to stock)

Actual revenues / costs will be posted to service orders by following sources : Revenues will get posted through billing document Cost of goods sold will get posted through a goods issue to sales order / item Direct costs will get posted through FI-GL posting with cost assignment of sales

order / item The profit / loss of the sales order will be settled to a profitability segment of the sales

order / item

Profitability Segments

Actual revenues / costs will be automatically transferred to profitability segments as follows In make to stock scenario ( sales order not a cost object), Revenues , sales

deductions and cost of goods sold will be automatically transferred on the basis of billing document to a profitability segment determined in the sales order

In make to order scenario ( sales order is a cost object), Revenues , sales deductions, direct costs and cost of goods sold will be transferred to a profitability segment determined in the sales order through result analysis and settlement

Cost centre costs will be transferred to Profitability Analysis for a customer group / product group combination through cost centre assessment

Gaps: Nil


Description of reports to be used i.e. purpose of such report : Report to compare planned Vs. actual

Any document/output would be printed for this business process: NoIf Yes mention name of such document :

If Yes, whether required format of document / output is attached: Whether data records of current business process would be transferred to system other than SAP R/3 : NoIf Yes, Describe in details and attach the format in which data would be stored in the other system :




Inputs/ data received from other function for this process, ( if any ) : The data is received from budgeting process in MS-Excel






Management Reporting


Date : 25th August 2000Sr. No of TO BE document : CO003AS-IS Business Process Name: Information System

Page no.: 105Name of Business Process : Management ReportingModule: FICO Sub-module : COFlow Chart of Business Process : NilDetailed description of Business Process:

Requirement:

Profitability at following levels: Location Product group Product division SBU Customer group Sales Order

Expense control up to activity level i.e. Marketing, Warehousing etc. Location wise, product group wise bifurcation of vendors (AP)and customer(AR)

balances as well as inventory values

Process:

Cost Centre Accounting

CCA will give information on planned vs. actual comparison of expenses for each cost centre and cost element. The cost centre and cost elements are grouped as standard and alternate hierarchies. The complete details will be available through. drill down. This will facilitate expense control up to activity level.

Internal Orders

Internal orders will give information on cost element wise costs booked on internal orders along with the settlement cost centre and cost element.

Profit Centre Accounting

PCA will give information on planned vs. actual comparison of revenues as well as costs for each profit centre and cost element. The profit centres and cost elements are grouped as per user requirements. It will also provide information on balance sheet items of AR, AP and Inventory.This will give net profitability for any combination of location, product group / product division and SBU. This will also provide necessary information for meeting statutory requirement of



segmental reporting based on geographical locations.

Sales Orders / Service Orders

Sales orders of make to order scenario / projects and service orders will give profitability for each sales order / item or service order.

Profitability Analysis

PA will give profitability follows :

Profitability for any combination of characteristics e.g. Customer group , Product Group , Industry, Product hierarchy etc at contribution level ( Sales – COGS – Direct Costs)

Profitability for any combination of Product Group / Customer group at net profit level ( Sales – COGS – Direct Costs – Overheads )

Gaps: Nil


Description of reports to be used i.e. purpose of such report :

Any document/output would be printed for this business process: NoIf Yes mention name of such document : If Yes, whether required format of document / output is attached: Whether data records of current business process would be transferred to system other than SAP R/3 : NoIf Yes, Describe in details and attach the format in which data would be stored in the other system :





