Business Blueprint Submitted To X GROUP By KPIT CUMMINS INFOSYSTEMS a KPIT CumminsDOCUMENT RELEASE NOTICE Customer: x Company6roup Project + 1900 Documant deta: Name | Version No, Description “his document outne the Fiance cootngbusiess processes Document deal: Reviion ‘tion taken receding [New | Revikion Number (d/l) PageNo. | Page. _Deseistion 00 ni at 10 Peale cr al DocomentPREFACE Purpose ofthis Document ‘he purpose of this document isto recordthe business process requirements of X CompanyGroupand ‘outline the requirement mapping in SAP. Intended Audience “he intended audience forthe Financial Blueprints the employes of X CompanyGroup and ether persons uthorzed by X Company who arein any way related to Business Processes involving Financial Accounting. elated Documents/ References Documents refered to prepare Finacil Accounting Business Blueprint Document area olows: ‘mo, | Tite Version | AuthorSigno ole ame Sienature ate Functional consutant | Me Gojononankeshwarker Project Manager PIT Me Rovian Cumminsinfsysters i. Ausiness Process Omer | Melayapralach Project Manager evens Me, Padma Kumar‘ORGANIZATION OF THIS DOCUMENT ‘Te FinancalsBuprint consists of 10 chapters inthe order as mentioned below 10, (organization Structure: That describes the organization strcture tobe conigured in SAP. ‘Master Dota: It deseribes the master dat in Financials. It ineludes creation and maintenance of aster record GGL Accounting: This process describes various GL Accounting tasks done by accounting department ‘Accounts Payable Accounting: This part described various acts, business transactions in ‘onnertion with customer postings [Accounts Receusle Accounting: This part described various activites, business tansetions in connection with customer potings. Assetaccounting: This section talks about asset life cycle management per legal entty. I describes the accounting treatment for acqustion of assets, captaliation, depreciation and ‘aloof aes deta Cash and bank accounting: Cash and Bank Accounting details describe procedures serosal ‘ocatons to manage Cash and Bank transactions Proft center accountng: Ths section describes the processes af profit centr acounting. The profit center accounting helps an enterprise to analyze the proftabilty or draw financial -atement bated onthe intemal ares of respons. Pracess mapping: This section summarizes the AS'S business process and corresponding TO BE business processes Reports: This section covers the reporting requirements. It includes how all reporting requicemeots would be full with the TO BE process,Table of Contents Aeon ° ‘GENERAL EXPLANATION.. SAP ORGANIZATION STRUCTURE WITH REFERENCE TO FI MODULE a 1.2. COMPANY CODE. a 1.3, CHARTOF ACCOUNTS. 3 4.4, CREDIT CONTROL AREA, 3 1.5. SEGMENTS a 1.6, PROFIT CENTERS. 16 1.7. FINANCIAL ACCOUNTING GLOBAL SETTINGS 15 2a, 22. 23. 24. 25. [MASTER DATA FOR Fi. 19 GENERAL LEDGER... 19 ASSET. 23 BANK MASTER.. 3 MATERIAL MASTER... 26 VENDOR MASTER... 27as. 36. 4a, 42. 43, 44. 4s. 46. 5a, 52. 53, 5a. 55. 56. 6a, GAP ANALYSIS: INTEGRATION CONSIDERATIONS. ACCOUNTS PAYABLE... (GENERAL EXPLANATIONS (AS-5 SOLUTION IN SAP (TO. ‘CHANGES TO EXISTING ORGANIZATION PROCESS: SPECIAL ORGANISATION CONSIDERATIONS: GAP ANALYSIS: INTEGRATION CONSIDERATION: BUSINESS PROCESSES - ACCOUNTS RECEIVABLES .. (GENERAL EXPLANATIONS (AS): SOLUTIONIN SAP(TO.Bt (CHANGES TO EXISTING ORGANIZATION PROCES SPECIAL ORGANISATION CONSIDERATIONS: GAP ANALYSIS: INTEGRATION CONSIDERATION: ASSET ACCOUNTING... (GENERAL EXPLANATIONS (AS7a, 72, 73, 74. 75. 76. aa, 82. 83. 8a. 26. 10. GENERAL EXPLANATIONS- (AS IS}. SOLUTIONIN SAP... (CHANGES TO EXISTING ORGANIZATION PROCESS: SPECIAL ORGANISATION CONSIDERATIONS: GAP ANALYSIS: INTEGRATION CONSIDERATION: PROFIT CENTER ACCOUNTING... GENERAL EXPLANATIONS. (AS IS). SOLUTION IN SA\ (TOBE (CHANGES TO EXISTING ORGANIZATION PROCESS: SPECIAL ORGANISATION CONSIDERATIONS: GAP ANALYSIS: INTEGRATION CONSIDERATION: PROCESS MAPPING... 888 8 8 8 BB B REPORTS.ACRONYMS ode Description Mnepany | ¥ComPanyGroun Tai] ater anagem GM | Quality onagement ca Pradction Marina Pa] Plant maintenance vw | Wendormaster 7 Purchase Order Pe Purchase Requisition w Sales and Ditrbaion ra Togs Bxcation ‘uit ater aterGENERAL EXPLANATION ‘Company Profile Company Group is ene ofthe leaing paint manufacturers in india based at Chennai “Tami Nau This 35er organization fin the industry for more than 5 decades. The product range includes paints for Architecture, Automotives and wood fishes. The brand “x Company” & quite famous in India ‘he organisation split into multiple legal enttes which manufactures and markets Pants/ wood fishes 210 Inde. Ths orgaization has around 450 employees ints group. They have operations in Se Lenka a. Business Blue int This le the document where we define the business proceses and operating procedures for your company to support the corporat growth itativs and aso to adopt to the new SAP system that willbe implemente. SAP Blueprint isthe architectural oundation forthe success of our project. Ths Is where we define your business requirement, set expectations from the neve system and gan aiment of the key business stakeholders withthe capabilites and expected output rom the new SAP system. In a Busines Blucpont, we ereate @ project structure in which relevant business scenarios, business rocesses and process sles are organized in 2 hierarchical & tabular structure to spec how your business processes should run in your SAP ystems ‘he project documentation aod the project structure that you create during the Business Blurit wl be Integral part inthe configuration and test organization phases.1. SAP ORGANIZATION STRUCTURE WITH REFERENCE TO FI MODULE 1.1. COMPANY LLL. Definition ‘A-company is an organizational unit in Accounting which represents @ business organization according tothe requirements of commercial law in a particular country In the SAP system, consolidation functions in financial accounting are based on companies. A ‘company can comprise one or more company codes. 1.4.2. Application ‘© fan organization uses several clients, the companies which only appear as group- internal business partners, and are not operational n each system, must be maintained in each cent, This s precondition for the account assignment of a group-internal trading partner. 1 Companies must be cataloged ina list of company IDs which is consistent across the {70up. The parent company usualy provides this list of company IDs. ‘= tisalso acceptable to designate legally dependent branches ‘companies! andjoin them together asa legal unit by consolidation ‘= Incase of X Company group, the consolidation is required for all 9 legal entities. And this is required only at group level. Therefore 1 company would be set up in the system, 111.3, Naming Convention company DeScRIPTION | 1000 ‘X Company Group |12.2. Application ‘The Company Code isthe smallest Organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external parting Balance sheets and Profit and Loss statements, required by law, are created at company code level \We can set up several company cades in one cient in order to manage various separate legal entities simultaneously, each with thelr own balanced set of financial books. Diflerent Currency cequtement will need addtional company code. In case of X Company group, it consists of 9 legal entities t indvidual entity prepares and fles ‘the financial statements and income tax returns. Therefore 9 company codes would be set up Inthe system. 11.2.3, Naming Convention Sr.No. | Company Code Description 1 1000 Company Pant Corpration itd 2 1100 X Company Financ servess 3 1200 Sphinx Organi & research P Ud 4 1200 Sphinx nf ystems 5 1400 TechServices 6 1500 Company Auto Solutions 7 1600 ‘Sreenword Services UP 2 1700 Sphinax Chemis Pvt. Lid 3 5000 X Company Lanka Pant. Ld ‘Company1000) X Company, heme,1.3. CHART OF ACCOUNTS 12:1, Definition “hiss the dassification scheme consisting ofa group of general ledger (G/t) accounts A chart of accounts provides a framework forthe recording of values to ensure an orderly rendering of accounting data. The G/L accounts it contains are used by one or more company codes. 13.2, Application For each G/L account, the chart of accounts contains the account number, account name, and ‘the information that controls how an account functions and how a G/L account is crested ina company code. We have to asign a chart of accounts to each company code. This chart of accounts isthe ‘operating chart of accounts and is used forthe dally postings inthis company code, In case of X Company group, all the 9 legal entities use same chart of accounts for day to day ‘operation, Therefore 1 chart of accounts would be would be set up and assigned to all 9 legal entities. The same chart of accounts would be used forthe purpose of consoldation at the company level [Naming Convention ‘Char of Accounts Description Yan ‘company Chart of Accounts 1.4. CREDIT CONTROL AREA LAL, Definition ‘he credit contol area san organizational unt that specfis and checks a credit mit fr customers. A credit imi is set per business partner record. Within a rest contol ares, the credit limits must be specified inthe same curency14.2, Naming Convention ‘S.No. | Credit Control Area Description 1 3000 |X Company Paints Crete Contra rea 2 1500 X company Auto Credit Control ares 3 1600 Sheenword Services GeditContol sea 4 1700 Sphingx Chemicals Credit Control oes 5 5000 X Company Lanka Credit Control rea 1.5. SEGMENTS 1.4.2, Definition Proftablity Segment corresponds to market segment. The market segments canbe defined as products, product groups, customers, customer groups, geographic areas. For example, 8 company may wish to analyze profitability fora particular geographical area 15:1. Application ‘his organization unit wuld be set up based onthe geographical bifurcation present inx Company. The X ‘Company group has East, Wes, South and North regions and distribution chains Based on that, Segments’ would be sot up 25 East, West, South and North regions. Among al the lgal entities, only X Company Pints Corporation Lt, Sphnax Chemicals Pv. Lid, Sheenworld Services LUP.X Company Auto Solutions ‘asthe regional segments 115.2. Naming Convention e & a correc 1.6. PROFIT CENTERS1.62. Application ‘+ X.COMPANY wil have proft centre accountng taking into consideration of location wise til balance requirement 1.63. Naming Convention Sheerioe Prof Centers. xix 1.7. FINANCIAL ACCOUNTING GLOBAL SETTINGS: Posting of Transactions in SAP requires the following setings 4 Currency Stings 1+ sca yar and Fiscal year variant + Posting period variant + Document Tpes + Document Numbering 1+ Posting Keys currency: X Company group wll us inian Rupees INR) 35 te local and base currency The local and base currency {or all ndion Lega Entites would be Indan Rupees (IR). n case of legal entity in Sei Lanka the base curreney would be Si Lankan Rupees (LK). Other currencies would be define in relation to INR. The {actors for curency transitions willbe based onthe direct quotation method thats Le. 1: n, where one unit of foreign currency willbe equal ton unisof INR.Snteon periods wil be defined inthe system. The fst period wil be April and the twelth perod wil be March. The four entra periods wil be used fr posing year-end /eosing adjustment entries. Special ‘estictons wil be made on the acounts that canbe posted ton the 4 special periods 1 Posting Period Variant is defined & assigned to one or more company codes. This varant contras ‘opening and dosing of one or more posting period in Financial counting Ie ie further desired by X Company, thatthe controling the posting period should be possible at the Indidal location level. Le. a posting pviod canbe opened ony fr Hyderabad branch. To cater this need, authorization groups would be create per various locatons. Users fom thelecatons would be asigned to ‘the respective authorization groups. Sr.No. | Posting period variant Description 1 3000 X Company Pants Posting period variant 2 100, X Company Finanea Posting period variant 3 1200 ‘sphinax Organ Posting period variant 4 3300, Sphinae nf Pasting period variant 5 1400) Techservices Posting period variant 5 3500, X Company Ato Pasting rod variant 7 1600 ‘Sheenword Serves Posting pei variant 8 3700 ‘Sphinn Chemicals Poting period variant ° 000 X Company Lanka Posting period variant Posting Periods *+ One posting period should generally be kept open forthe current month ‘+ Atthemonth end nox posting period shoul be opened ‘+The previous month should be closed ater the month end closing procedures are cared out ++ One or more posting periods may be Kept open for certain accounts on elective bass requires. However the authorization fr this willbe maintained avery Nh evel ‘+A document is uniquely identified by the combination of fiscal year, company code and documentarchived. In SAP, a document conssts ofa document header an alin item, both of which are controlled bby document types an posting kes. Document types: Document types ae required inthe SAP system to create and post nancial documents, suchas (eg. Bark Payment Voucher, Bank Receipt Voucher and, Joumal Etc} Document types ar aso used to distinguish between the various Fl documents In ation, Document types also controls, Document Numbering (external or intemal, Account Types {Debtor Materials Assets, G/L accounts and Creltrs] that can be entered inthe document. ‘Apart fom the key controls mentioned above ew other defistions are made at the Document type level {forthe purpose of processing transactions, which ar driven by the Busines proves needs X Companywould use the standard SAP document types forthe varius types of transactions across al agl ents, Document numbering: Each ofthe document types defined wl have an identification number. The SAP system uses predefined ‘umber anges fr this purpose The number ranges are assigned tothe document types. The number ‘anges may be defined as interna, thats. automaticaly generated by the system in chronological order ‘or as enteral that enterable atthe te of he transaction, X Company has decided to have internal numbering forall the documents. The number range would be year dependent The folowing Document Types are identified fr use from SAP Standard, Docu. Description No. | Rom | To Nomber | External | Reverse Doe. Type Range Number Type ‘AA Asset posting ‘01 | Yoo000000 | 199889009, ry [AB | Accounting document [01 | 100000000 _| 199953999 ra ‘AF | Dep. Postings 13 | 300000000 | 399888099, BF 1DG__| Customer eeditmema | 16 1600000000 | 1693999559 oa oR | customer invoice 18 | 1800000000 | 899830999 oR Z| Customer payment | 14 4400000000 | 1493090909 oa xc | Vendor eredit memo 117 | 1700000000 | 1799999999 7 i‘Account ype i 2 key that specifies the accounting area to which an account belongs Examples of account types are Asset accounts “+ customer accounts -D 1+ Vendor accounts -K + Gftaccounts-s 4+ acerns accounts Posting Key ‘The posting Keys 8 two digit numeric Key that controls the entry of document neem. pecies whether the line tem i a debit ora credit entry, the account ype that canbe posted (Vendors, Customers and General Ledger et) andthe screen Layout For posting spell G/L transactions special posting keys, are used which ave supplemented by 2 ‘pecal G/L indicator. The sytem uses the specfieations(gosting key and special G/L indkcatr) to determine the ateratvereconeltion acountMASTER DATA FOR FI 2.1, GENERAL LEDGER 2a. Def General Ledger Accounting allows you to perform parallel accounting by managing several parallel ledgers. I is ust the extend version of classic general ledger. Also Segment wise reports are alzo possible. Following are the features of New GL ‘+ Realtime integration between Fland CO 1+ Integrated Pca + Document spitting G/L account master records contain the data that is alvays needed by the general ledger to determine the account's function. The G/L account master records control the posting of accounting transactions to G/L accounts and the processing ofthe posting data, Business transactions are posted to accounts and managed by GL accounts. You must create a master record for each account that you need. This contains information that controls the entry of business transactions in an account andthe processing of data 2.1.2. Application In X Company Group, new GL willbe used to support the internal management reporting and ‘to have financial statements for segments and profit centers. Ii New General Ledger Accounting, you can perform internal management reporting.in parallel with legal reporting. For this purpose, the Segment and Profit Center Accounting functions are Integrated with General Ledger Accounting. Furthermore, you can generate financial statements for any dimension (such as profit center).Example: Repairs Afc..Dr (Cost Centre 100001) -Rs-2000, Repairs Ae. Or (Cost Centre 200001) - Rs 1000 ‘To Bank Me (Cost Centre 100002) -Rs.2000, ‘To Bank Ne (Cost Centre 100001) -Rs.1000 New General Ledger Accounting comprises the following functions for entering and evaluating posting data ‘+ Automatic and simultaneous posting of al sub ledger items in the appropriate jeneral ledger accounts (reconciliation accounts) ‘© Simultaneous updating of the parallel general ledgers and of the cost accounting ‘+ Realtime evaluation of and reporting on current posting data, in the form of account displays, financll statements with diferent balance sheet versions, and adattional analyses. losing: 1+ The new general ledger has significantly simplified and accelerated period-end closings. For document spitting, the data in the new Gt siready moet the reprtng requirements rom the time of posting. You can make a zero balance setting for the coresponding characterises (segment, proft center, and customer fields) in each document. In tis manner, you can create a (nonconsalidated) balance sheet a the lve ofthese characteristics at any time, You no longer need adstonal program runs to split the character. ‘+ Reconciliation between controling functions and the new general ledger aso do not require adtional program runs. nthe case of crossentity controling postings such a transfer postings for cots fom one cost center or profit center to anther, ether manvaly or with allocations the values are updated tothe general ledger in realtime. ths manner, the controling area and (ganeral ledger are synchronized for the transactions. Your longer neecladkitionsl reconciliation‘The company code specific area contains data that may vary from ane company code to another, suchas the currency in which the account may be posted G/L account master records are divided into two areas so that company cades with the same chart of accounts can use the same G/L accounts. In order to organize and manage a large number of G/L Accounts better, they are arranged in account group. So when creating a G/L account, you must specifyan account group. ‘The accounts of an account group normally have similar business functions. You could, for example have an account group for cash accounts, ane for Expenses accounts, one for revenue accounts, and one for other balance sheet accounts etc ‘+ The account group determines: ~The interval in which the account number must be Which fields are required and optional entries when creating and changing master records Which fields are suppressed when creating and changing master data? te enables you to control the layout of screens. ‘You use account groups to combine accounts according to the above criteria (for example, 3 P&L account group, asset account group and material account group) ‘Account groups for G/L accounts ae based on the chart of accounts . Chartof accounts area ‘The chart of accounts area contains the data that is valid forall company codes, such as the account number. The following is the data in Chart of account ‘+ Specifies the account number and aceount name (short and long text) foreach G/L. account master record‘+ Can group G/L account master records in the chart of accounts when you specify number intervals. You enter the numberof the master record in the company code in the chart of accounts and use the account group to control and check the number assignment. To do this, you define corresponding number intervals using the account group. [CREATION OF GL ACCOUNT MASTER RECORD =DYou must define your account graups outside ofthe chart of accounts. First specify the key Under which you have stored these definitions in the char of accounts Then create a G/L account master record: specify the account rumber ofthe sample account in the required ‘master recordin the chartof accounts. Following account groups would be created for x Company: wo [Ey ean m= YAH [uns [Sine she A: Labaes [0m | 155958 Yat —[ Picross erdor—[ e000 | 55959 ‘ant [been — [Acad Begrecton ott | 255 ‘va [ware | Materia Management Inventories | 22000000 | 22000000 ‘YANN |cou | Recondiotions Aczount - Customer | 23000000 | 23995999 YAN [cash | Cash and bark Accounts 24000000 | 24900099 TYAN [set | Balance sheet aecounts Assets | 25000000 | 25995999 ‘a [evn | pat a/cs Revenues 31000000 | 29999999 YAN [CONS | Material Management Consumption | ¢0100000 | 40198999, YAN [exen | Pat a/cs- Expenses ‘so00000 | 49999999 2.2. ASSET 2.24. Definition ‘The "master data maintenance" component is used for recording the master data of organization fixed assats on an individual asset basis. A fixed asset Is defined as an Individual economic good that its recognized inthe balance sheet atthe time of closing andisin the long-term service of the enterprise 22.2. Application ‘Traditional asset accounting encompasses the entire lifetime of the asset from purchaseTime-independent management of organizational units If you set this indicator, the system ‘manages the organizational unit and ‘cost center (and thereby ‘profit center) as nat time dependent in the asset master records inthis company code, 2.2.4 General Master Data ‘his part of the master record contains concrete information about the fixed asset. The following field groups exist: + General information (eserption, quantity, ete) + Account aztgnment + Posting information (for example, captaization date) + Time-dependent assignments (for example, cost center) + Userfields/evaluation groupsete. In addition, you can create long texts for the individual field groups belonging to the general data part of the asset master record. You can simplify the creation of long texts by Using freely-definable long text templates. 22.5, Data for Calculating Asset Values You can specify depreciation terms in the asset master record for each depreciation area in the chart of deprecation. In order for you to make these specications, the master record contains an overview of the deprecation areas. In addtion, there is a detailed display available for each depreciation area. Group asset wil be created to group the asset as per Tact. But depreciation valve forFT department mill be calculated out of system Internal Number Range willbe used forthe Asset Clas. 22.6 Asset Classes & Account DeterminationEach asset class is maintained with diferent depreciation areas as required by X COMPANY. Once the asset classes are defined aifferent asset master records will be created under the asset classes. Each dass wil be assigned a ifferent number range to Bive ifferent numbers to assets. Following asset classes would be setup in the system: Details ‘arst Ce Land and buidngs 3000 Plant and Machinery ‘00 Fixtures and tinge "3000 Office Equipments 4000 Vehicles ‘sooo ‘Computer equipments ‘00 Lowvalue seats “700 2.3. BANK MASTER 23, Definition Bank s used to handle accounting transactions that process with bankers, Bank accounting includes the management of bank master data; cash balance management (check), and the creation and processing of incoming and outgoing payments Bank Master Data s required for bank transaction lke Bank Reconciliation and payments; thismaster records also known as you're House Bank. 2.3.2, Application ‘Ahouse bank refers tothe bank a company uses for receivables and/or payments. Itis any bank with which your company code does business. Each house bank contains a|AG/L account master record must be created for each bank account. The house bank and ‘account 1D must be entered in the GL account master record to ensure the accounting transactions involving the bank account willbe reflected in the general ledger ‘The following bank accounts would be setup inthe system per legal entity: X Company Paints Pt tt Bank name “Recount No. aieType Te South ngsn bank (0138083000001620 | Cash crew. HOFC Bank ts ~00040530012166 | Current ale | a bank Ltd 9902002821056 | Cash Credit ‘banked 9102005601252 | Current Ale Iie bank td ‘00805018304 | current Ae Sphinax Chemicals ut. Ls ‘Sank name ‘ecount NO MeTwpe HOFC Bank ‘0040330002962 | Current Ae “The South ina Bank ‘138075000001792 | current Ae “The South indian Bank (013807500000173 | Curent Ae “The South indian Bank (0127073000001413 | Curent Ne “The South naan Bank ‘se07s000c01791 | Eurent Ne “The Sauth incon Sank (0133073000003328 | Curent Ne “The South indian Bani '037407300000008 | Curent Ae The South naon Bank (0414073000000117 | current Ve 1G Bence "000905028635 | Current Ae ‘is Bank Ls 931020055957657 |Current A/c State bank ind 30861566143 |Current A/c 2.4, MATERIAL MASTER 241. Definition The material master contains information on all the materials that a company procures orproduces, stores, and sels tis the company’s central source for retrieving material-Accounting unit of This view of material has details regarding how the material is accounted. measure, currency et. Below are important fields Valuation class: Determines the G/L account that is updated if there is impact on accounting. Price control Determines whether material is valuated on standard price base or moving average price bass, Prices: displays the pie of materia Accounting? This view only o display ferent prices ke tax prices ete if maintained 243. Data Maintenance OC/ASMW will be created to upload material master File format wil be provided o upload material mater using BDC/ISMW. Fields tobe maintained for Valuation class, Price control 25. VENDOR MASTER ‘The vendor master record will have thee data segments: = General data segment: Information such as name, address, post box. communication details of vendors will be maintained, In adaition to this, ifthe vendor is aso a customer, the customer number wil be entered, ‘© Company cade data segment: Information such as econaiition account, sort key, terms of payment, nk particulars and other correspondence details will be maintained, © Purchasing area data sesment: Information such as vendor sroup, shipping details.It is necessary that the reconciliation account for the vendor is correcty Mentified and defined in the master data, Vendor master consist of three views: General view This is data that applies to every company code and every purchasing organization in your company. The general area includes, for example, the vendor's name, address, language, andtelephone number. ‘Company code view: ‘This is data that s specific to an individual company code. Company code data indudes, for ‘example, the reconciliation account number, payment method and payment terms. Purchasing view: This is data relevant to the purchasing organization of your company. For example, requests for quotations, purchase orders, and invoice verifications are stored in this section Data in vendor master records controls how transaction data is posted and processed fora vendor. The vendor master record also contains all the data you require to da business with your vendors Each master record has a unique number. You need this number to display or change the master record andto post to the vendor account Vendors are generally classified as General vendor: General vendor means 2 regular supplier who will be rendering either goods or service from within the country or outsce country. Since he is very frequent vendor with whom ‘company ts willing 10 have long time relationship, In SAP f/3, all the master informationThe account group isa cassfying feature within vendor master records. It determines the faliowing ‘+ Which screens and fies are necessary fo entering master data ‘+ Flelds can be defined as optional or mandatory atcreation of master data 4+ How master record numbers ae assigned (externally by you or internally by the system) and the number range from which they are assigned ‘© Which partner functions are valid ‘+ Whether the business partners a one-time vendor The following vendor account group will be maintained. sn. Vendor Account rau from | To | Vendors Domestic RMA 000000 | 39999900 2 | Vendors Domestic o0oa000 | 29999938 3__| Vendors imports RN 30000000 | 39999939 4 | Vendors imports PM 0000000 | 48998985 5 | Vendorsservece 0090000 | $9999999 6 | Vendors tories 0000000 | 69999995 7 [lone Tne vendors oonec00 | 74999909 8 | VendorstEmployee ‘75000000 | 79999990 9 | Vendors Others ‘0000000 | #9999900 2.6. CUSTOMER MASTER Customer Master The customer master record contains all the data required to do business with the Set TW reSAP provides the following transactions for maintaining Accounts Receivable master records: . Create anew acount . Create new account with template . ‘change an account . Display an account . Block/¢nblock an account . Setthe deletion inicator The above operations may be undertaken at the general/company code level, the sales area level, or centrally against both levels It Is anticipated that the X COMPANY accounts receivable account maintenance will be centralved, andthe creation of any new accounts wil go through an approval process. ‘Account Groups. The account group is 2 dassfying feature within customer master records. It determines the following: . Which screens and flelds are necessary for entering master data . Fields can be defined as optional or ‘mandatory at creation of master data ' How master record numbers are assigned (externally by you or internally by the system) and the number range from hich they areassigned . Which partner functions are valid‘Account Groups: Sr.No. | Customer Aunt Group From Te 1 | Customer eames 10000000 | 15999989 2 [customer export 20000000 | 25999959 3 | Onertime customer "30000000 | 39959999 4 | Projet customers 40000000 | 49959999 Data inthe customer masters stored in 3 views: General Data: Data that applies to all company codes and sales areas (eg. customer's name, addresses, language and telephone data) Company Code/Accounting Data: Data that is specific to a company code (e.g. the reconciliation account number, payment terms and dunning area) Sales Area Data: Data specific tothe sales area of the company (e4. sales office, sales istrict, pricing information, as wel s information relating to shiping and biting). ‘customer Reconciliation Account Customer Reconciliation account isthe G/L account for a group of customers in FL-AR ‘module, The number of Customer Reconciliation accounts wil depend on the grouping of the customers in F ‘The following reconcliation accounts are tobe used by X COMPANY. account eserption 23000000 | Accounts receivable Domestic customers 25100000 | accounts recehvable-Export Customer 73200000 | accounts receivable One time customers 2300000 | Accounts ecruabe Projet curtomersEntered when the logistics documents (in the purchase order / sales order and incoming Invoice orn the order and the outgoing involce, for example) are created (or changed) ‘Terms of payment include settings for the payment terms, the day limit, the baseline date for payment, and instalment payments. Baseline date determines the date from which ‘payment terms wil be calculated, The final deadline for payments can be summarized in a formula Payment Deadline = Baseline Date + Payment Terms Payment terms will be defined in system and will maintain in Customer master. Standard SAP payment terms ae: Key Description oot | Payabieimmediate ror | Peyabiein7 das NNTa5 | Payablein 15 days NT30___| Payablein30 days NaS | Payablein as days ‘Téo | Payablein 0 days customer Gedit Master customer Credit processing includes risk and credit exposure management, It provides levels and mechanisms to handle credit limits. Cedit Management enables to minimize the creditrskby specifying a specifi creit limit for customers Using Credit Management module credit mit can be granted to customers by setting up Credit Master Data. The sytem controls transactions of each customer's on basis of this raster data, ‘The Credit Management function provides the following functions: . Create/Edit/Display Credit Master Data ‘Wei Rideeeers. Violet teil (ele Teele merhlistelBUSINESS PROCESSES- GL ACCOUNTING 3.1. GENERAL EXPLANATION-(AS IS): Company accounting team performs following activities under GL Accounting 1. Posting Journal Enties: As 2 part of day to day accounting settles and month) year end Closing oural entries are posted by the accounting department The entries are reviewed by the supervisor pevidically and necesary corrections are made if required. Printout fo the Journal entry vouchers ae taken and ae fils time ta time. Some entries ofrecuring nature ate posted during monthly losing. Salar posing is also done by pasing a jounal entry. Also Journal entries are passed to aust the CENVAT cre, b. GLaccounting futher functions: To meet business requirements X Company team des foreign curreny valuation or intrest ealeuations manvaly. Aso as 2 part of process the GIVIR accounts and other provision accounts re cleared periodically, © GLreporting: The accountng team uses GL Ae balance tem Wise reports for nteral analysis 1. Financial statements: “+ The accountng team drave financial statements at legal entity level. Depending upon the ‘egal statuses ofthe legal entities, the financial statement reporting format is changed. The Limited and Private ited companies use new schedule Vi Format for statutory reporting. And ‘other proprietary and partnership fms use cifferent formats, + Alia some reports ave generated to analyse the prafitabllty per locaton/dvsion As om dite the consolidated financial statements are prepared for X Company soup ‘manwlly sing excel Summarized expectations kom the new system: ‘+ Abcy © manually proces Journal entries ‘+ system to fiat the parking of transaction and tobe posted on specie approvals‘+ system tofaitate the automatic posting af recurring entries “+ Tofecitate the smooth and proper closure of aks atthe end of the accounting year and carry forward of balances to new counting year 3.2. SOLUTION IN SAP (TO BE): Overview: General ledger is «comprehensive financial management solution that dramatically enhances financials contol, data coletion, information access and financial reporting Uaugh the organization. (General lager i the central reponiary ofall the accounting information ofthe organization. Mast ofthe transactions will be handled in respective sub-ledgers and subsequent consolidated and posted to General Ledger. However the module shall provide specific Lnetions of passing joural enties (Manual, Provisional, Recurring and Reversal Journals) and posting ther, which wil be purely rection and provisional in nature “he objectives to maintain accurate and complete books of accounts in compliance with the provisions of Indian GAAP 2s Leading Ledger and IFRS 25 non Leading Ledger Aso ensuring compliance with statutory {guidelines with the provisions of the Companies Act, 156. ‘he General Ledger i integrated with al other madves in SAP and thus serves a 2 complete record ofall business transactions. This means that all postings that originate in ether sub-nodules of SAP vl be automaticaly transfered to GL during day toda processing thus considerabiy reducing the amount ef manual joumals. For example, when a purchasing oie records a receipt of goods that ‘was purchacedin the Purchasing module, the Inventory vale is updated nthe GL immediately. Each ‘wanssction updates the GL atthe indvidval taneaction level and summary level by account, debit of edit total and period total Allthese items canbe displayed antine. ‘he SAP ECC 60 wes the document principle as Is reference for entering and posting business ‘wansections. Each business transaction is stored as 2 document form and remains @ complete unit within ‘the system tilts archived. The folowing oe the commen documents that willbe use within the General Ledger posting area # Adjustment entries‘+ Thelineitem only contains information, which wl be specfco that line tem. t always hasan amount {and one account number. It may also contin ether specications, such asthe terms of payment, cost Centr or an explanatory txt, depending onthe transaction being posted 3.2.1, DOCUMENT | document consists ofa docoment header and ine tems Document header isthe part ofa document tht contains information vai! forthe whole document, or ‘example, document date and number. leo contains contalig infomation such ae the document type, Une tems are the part of document that contains information aout an fem. Tis incades an amount, an account number, the creditor debit 2s\anment, and actions deta specifi to the transaction being posted. For example you can enter termsof payment, acostcenre, ran explanatory textinaline tem. You can esplay the ne items for one or more acounts Line items are document items that were posted toa spectc account. In contrast to a document tam, 2 line item only contains the information from the document that i relevant frm the acount view You can asplay the lowing line tems in GL acount balances: + Openitems + Glare items + Noted tems + Parkes tame ‘+ Ttems with special G/L transaction in Accounts Receivable BAccounts Payable) 4+ ttemswith customer /vendortemsin counts Receivable Accounts Payable) ‘the SAP system adheres to the document principle. This means that each posing is always star in the {form of @ document; each document has @ document type, which is generally used to identity the sourceprocessing aftr you have corrected the eror. These system checks & validates that all the require datas ‘enter into the system in complete and in erortre form, if you ae interrupted on entering 2 document and want to save the information youhave aeady entered, yew can do so by using the Hold function. On the other hand, you cannat post the document as account _asslgnments are missing, or something i unclear you can use the preliminary posting function to park the document until you are ready to complet it 3.2.2. PARK AND POST GENERAL LEDGER DOCUMENT ‘An incomplete document may be parked and then posted at alate date; this may be dane by the same oF different ver. Generally the documents ate parked when the user Is waiting or an approval from the superior Subsequenty the user can book the same as 2G. document. ‘one advantage of parking is that you can evaluate the data in documents online for reporting purposes ‘rom the moment they are parked, rather than having to wait utthey have been completed and posted. 2 st of parked documents can be generated inthe SAD for the benft ofthe supensor/manager. The cument can then be checked and corrected by the user. This document can then be posted in the General ledger Parked dcumants ean be modified o deleted before posting. ‘he documents ae entered into the systom and depending onthe authorizations; the documents are parked and posted atx ‘The user wil park al the documents in R/3. Then the designated aporover wil view the Ist of ll the parked documents and pst the parked documents before the an of the dy. 3.2.3, POST/DISPLAY/CHANGE GENERAL LEDGER DOCUMENT Document Posting ‘+ Header information ike company code, posting date, document date currency isentered, + ems details tke general edger acount, amount, tax code, cost assignment wil ao be centered foreach tne RemPost gnera ledger documents ‘To make general ledger business transaction avaiable, you must post them to the general edger account The system createsthe document and makes the deta avalabe in acount, When you carryout the postings to G/L accounts, you enter the document header data and line Items data. Upon simulation of the document, the system caries out the consistancy checks before posting the data the error ests, the data wil at be posted and proposes error information, Once the datais err free, then the system updates the document fl and G/L accounts amount may be posted, The expanse GL accounts made mandatory toinput a cost entre Joural cretion wil be mainly used for adjustments of incorrect postings, ad-hoc entries, or period fend adlustmant. AGL transactions from ather module wl be generated automaticaly with thelr ‘wn document types and number ranges. In addtion, the standord journal creation program provides for the creation of an Account ‘sslanment Template, At any time during the creation of a document, the user may sve the document as template for future use. The template may contain any number of individual line Items (up to the SAP maximum of 998, and any combination of GL account assignments and individual tne tem values ‘The values posted to the G/L secounts appear in the Tra Balance whieh will proude financial statements ik Balance Sheet, Profi and loss StatementFlow diagram:Document parking and posting3.2.4 DOCUMENT REVERSAL 118s possible for a user to make an input error. AS a result the created wil contain incorect Infermation. In order to provide an audit of the comection, the user mutt fst reverse the cumentin error, and then capture the document correctly 1+ Thesystem provides a function to reverse G/L, YR and AP documents both ndvidualy or in mas. + When cversing a document, a raversl reason code must be entered ta explain the reversal. The reason cade alo canto ifthe reversal date is allowed tbe ferent frm the orginal posting date. + Documents wit cleared ems cannot be reversed. The document must ist be reset. However, itneedto be noted that reversal of any document wil fect the allocation eyes incase these processes are completed. It wll be required to re-run all these cycles once again after reversing the document, 3.2.5, OPENITEM CLEARING 4 Open items relect unfinished transactions. For example, 2 Uablty that has not been setied renainsin the abt acount as an opentem unt tis sete ‘+The open items of an account canon be cleared once you pest an identical offsetting amount 19 the account Inother words, the balance of he tems assgned Yo each other most equal ero *+ During deerng the system enters 2 clearing document number and the clering date in these + Open items ean only be cleared if they ae posted to acounts that are managed on an open item bass. Open item management is automaticaly set for customer and vendor accounts. For GL. accounts, however, you have ose the open item management option inthe maser record *+Openitem maragernent woutdbe set forthe fllowing GL accounts: © Check dearng account (bank clearing accounts)‘Users wil clear open items from GL accounts by running the caring program, This program uses predefined criteria to group together open tems per account the talance ofthe group of open item equals 2er in local or foreign currency, the tems ae marked as cleared. ‘+The clearing program is used to sutomatialy clear open items based on predetined enter [Manual dearng of open items is therefore nt usual necessary + Automatic clearing (Le clearing based on SAP-defined feds such @s assignment, amount, ref fet) 4+ Manual clearing (ie matching of amount performed by users ‘+ Within the general ledger module, acount clearing shall be performed using the following functions: 12 Aecount learng (ad he). © Automatic clesring part of closing activites © Post with clearing during the course of posting a document) 3.2.6 POST RECURRING DOCUMENT For postings that recur on a regular bass, such as payments for rent or interest legal fees, and property taxes, the recurring entry program can be used to have the necessary documents generated auteratcaly. The recurring business trancactions must be stored in the sytem as recuring entry rial Each ecuring entry orginal document contains the date ofthe ist ands posting the frequency at which posting shoul be made, andthe date of the next planned posting The recurring entry program must be started at reglor intervals within a specified period. The program selects all recurring entey original documents ia whieh the date ofthe next posting falls ‘within the specified period, and then generates a batch input session.3.2.7. SAMPLE DOCUMENTS Sample documents wal be used as reference documents entered specicaly for» purpose. Semple documents wil have 2 separate number range. When such documents are entered and posted asa sample document, the system stores the document, but doesnot update any transaction gure During document entry, data could be fom arother document defautted. The items rom thi reference document wil be ‘+ Transferred without changes 4 Used for reverse postings Changed In contiast to an accounting document, sample documents donot update transaction Figures. They serve ‘merely date sources for an accounting document Their advantage will be that change or enhancements sre pousble, Therefore 2 sample document will be wed rather than an accounting document when a ‘eference document has tobe define. Sample documents willbe used 3¢ a reference document when allocation to more than one cost centers elined. Wf allocation sto be made to other cost enters, the values inthe sample document need to be changes, Sample documents will be entered with a special function to ensure that these documents cannot be accidentally posted as accounting documents 32, FIXED DEPOSITS WITH BANKS Making Breaking/Maturt of Fixed Depostsinvestments “he company operates fixed deposits of various values with several banks. Tough the deposits made fora ‘xed period witha defined maturity date these willbe broken based onthe business needs ‘son the date of maturity, 2 manualerty willbe posted for recording the interest due on the depos.3.2.10, PERIODIC PROCESSING losing Procedures Apart from the normal day-to-day transaction procesing tat is undartakan within SAP, there are many processes that requite completion ona period bass. These include the regrouping of customer credits and vendor debits, and unmatched invoice receipts and material receipts, revaluing of foreign currency "tems, nd month-end accu and deferrals Ustof period dose opeationsin SAP Description ‘Busines Process Description 1 | Book all provisions Depreciation Run Enter Acrsal/ Deferral Document forthe period This process involves execition of monthly deprecation run and wil be cenirally executed in X COMPANY on a re defined date. tt has to be ensred tht before execution of this process, all asset capitalization entries must be completed, Bonk Reconcitation This process is for running automatic bank Reconliaion for Clearing of Gi/customer/ vendor The program (T-code ~ F}when execited at the required perocty wil clear al the matching open items inthe GRR ‘secount 20 2 ta retain tem which wil be the open Gaede Receipt Credits fr which the voice Verification has nt yet bbeen done for Invoice not yet received). This Process (T Code-F44 Vendor & F32 Customer) voles clearing. of Vendor invoice against unmatched payments / advance / debi credit note oF IV passed inthe Vendor acount. Withholding Tax Provision This process dscuss abost Proviion of withtolding Tax against the each Goods Receipt Note (GAN for whch Ince not yet postedCustomer & vendor Balance cary Forward, These transactions carry forwards the Vendor & Customer balances to next fscal year For carry forwards of Balances the selection of data wil be Company Code & Year. Sefore running the cary forward it ean be run in Test made oy ula 61 Balance Carry forward Asset Balance Corry Forward These transactions cary forwards the GeneraLedger blancs to next sal year. For cary forwards of Balances the selection of data wal be Company Code Br. Before running the cary forward it ean be run in Test made [The process wil cose the asset master entries for the | relevant fiscal year. After this process, SAP does not permit any postings to Fixed Assats for the closed fiscal year This process should be caried out only when the final Fed Asses Scheduleiscomplete ala Foreign Currency Revaluation Revaluation fe dane forall curentexsts (cept soc) and current labiities scounts Foreign currency revaluation wil bbe manually caleulted and posted or automatialy Caleuated and postes by SAP. For automate caleuation and pestng the standard valuation method i used, 3.3. CHANGES TO EXISTING ORGANIZATION PROCESS, 3.4. SPECIAL ORGANISATION CONSIDERATIONS: NA. 3.5. GAP ANALYSIS:FSO integration (General dats, Company cde, Distrbution Chain) AMM Integration (General data, Company code, Purchase area) and F-AA FR integration (Company code)ACCOUNTS PAYABLE 4.1, GENERAL EXPLANATIONS (AS-IS) Ccurrenty x Company accounting team along wit the purchasing team performs folowing etvtes under Accounts payable Accounting PO based Bills processing (Revenue & Service): X company purchases the raw mates fed assets, production consumables, series ete by placing 2 purchase order to the vendor. The centralized purchase department caters to the need ofall 9 legal entities. As per the process, the ordered goods are delivered tothe plant-store o deste place. The stores ‘ereon books the goods receipt. Usually the invoice is accompniag with the goods delivery. In case the Invoice document avried at plant the stores people send the invoice copies to Purchase department ia head office, The purchase department verifies the imice and pastes it on to accounts department for {further processing. The accounting department posts the vendor ality and processes fr payment Sometimes, ifthe expenses incurred at invidual branch, the invoices forwarded to purchase department In head office. The purchase department verifies the invoice and pases tonto account department for ‘ayment. XCompany alo imports some materials, In these cases the invoices are booked in INR. fin case any cscrepancy seen between delivered quantity and inveice quantity above tolerance limit, subsequent debit note is issued to the vender. The vendor is paid only for quantity actualy received + allowable tolerance quantity. Unplanned delivery costif any sented as separate expenses ‘Accounting for Purchase -Other Than PO ‘+ Incase of Vendor invoices without Purchase Order Service Order / Contract would be booted by the France vendor inves. And ink with the elvan! department at the teat tansacton “+ Inthe F vendor imoic, GL acount i tobe entered forthe debit posting. Due date payment term ie picked up from the vendor master but ths canbe modified required at the transaction level Payment to vendors: the vendors are usually paid through checks, Some times RTGS or OD are use forSalary payments As on date the nt salaries fo athe egal entitles ae pald from Sphinx Chemicals bank account. A consolidated fle is uploaded to bank portal A this point other legal enttis are considered as acevables in the Sphinax chemicals books of accounts, Later on each legal entity reimburses the amount te sphinax Chemials Pv. Ld Payment cash'Some minor expenses are paid in cash ‘Communications with vendors:x Company sends payment advices tothe vendors along with the check ‘This contains the information about the ivoiees paid. As on date the ether formal correspondence with vendorsisnot flowed particulary. However, as and when required requests for balance confrmationsare sent vendors ‘Accounts payable reports:x Company team uses reports Ike vendor open invoices, due date analss, vendor balances ete for nays purpose Taxes and dutiesx Company deals with excise, VAT/ CST, service tax, customs duty, GTA input taxes. ‘he Input taxes, where ever applicable, for eligible expenses are booked as current aset to aval the CCENVAT credit. And the expenses which ae not lige for ered, the taxes ae loaded tothe expenses account, Ao if applicable the withholding taxi deducted at the time of invoice posting or payment whichever i ear. 4.2, SOLUTION IN SAP-{TOBE): ‘Overview: The Accounts P2yable application component records and administers accounting data fr all vendors. is also an integral part of the purchasing system, Deliveries and invoices are managed acording to vendors The system automaticaly makes postings in respons tothe operate transactions. Payables are paid with the payment program. The payment program supports all standard payment methods Postings made in Accounts Payable are simultareousty recorded inthe General Ledger where eiferent GL accounts are updated based on the transaction imoWved (payables and down payments for example). The system contains due date forecasts and ether standard reports that you can use to help you manor open You can design balance confirmations, account statements, and other forms of reports to sut yourMaterial document willbe for accounting stock nto stores and Fenty will Inventory /Stock Ne Or. GRR Clearing Ale Cr Here GR / IR clearing account is» clearing acount and gets knocked off a the time posting the voice (MIRO evecato) All the Incoming Invoices ae verified in terms of thelr content, prices and arithmetic and the invoice is posted the data saved inthe system. The system updates the data saved in the invoice documents ia Materials Management and Financial Accounting after the invoke hs been poste, the document appears a an open iter inthe vendor account. (Payment Proposal st) -secouning nes when invoke pote Al be: oun ne om CENVATCenrng Ae OF (apoeabl) Var eoing AveOr —(fapoliable Vendor Account 1m seo Service PO folowing entry wl be gga pense afe oe Serica GR/ MANE CR Invoice Posting:Planned Delivery Cost: Panne delivery cst are entered at temevel nthe purchase order. Planned delivery costs canbe vided nt: + Freitas + custome relevant + Insurance Panned delivery costs can be invoiced inthe following ways 1+ Fxedamount, independent of sope of supply 4 Quantity-dependent amount 1+ Percentage of value of goodst be delivered For planned delivery costs, the Sjstem mates postings toa dearing account at goods recip. Ifthe delivery costs inthe invoice dtfer from the planned delvery costs, he System post the differences In the sme way as posts normal price and quant variances tn cae of planned elvery cost such as Freight Freight clearing Ve Or FreghtvendorNe cr incase of planned delivery cost for Cstoms dy (ill of Entry items), Cunoms leaning Ale Or customs offeers AYe Cr (Govt Vendor) Unplanned Delivery Cont Enter the unplanned delivery costs onthe Extras tab page The System distributes unplanned delivery costs amore the items it teats ther inthe sameway as price differences. However, it dows rot check te pice ‘after distributing the delivery costs. does net ist them seperately in the purchase order history. They areDomestic Purchases (material) ~ which includes fight VAT Dating or: ram clearing ale Freight Geaing Ve During voce Verifeston: ccesng Ale Frege eang Ve ware oe enor Ae Frei vender fe o During ok: Motel (Asset) Ale Grancteacing Ae ornare Vendor Poyable aeMaterial Stock o cori alc o Custom dearng Ye cr (The custom duty portion of wale is loaded to the inventory ond the Customs clearing a/e wil get life) During noice Verification: cam Ne o Vendor Ne o 4.2.2, DIRECTBILLS PROCESSING (NON PO BASED) ‘Accounting Documents generated manual by debting the expense ad crediting the vendor. WHT isalso deducted at this stage which willbe called up automaticaly 1+ Vendo invoices without MM purchase order would te Booked though F vendor invoke and has no impacton the stock ‘+ In the Fi vendor ivsiee, GL account i 19 be entered forthe debit posting. Due date, payment termsisto bementoned inthe invoice 4.2.3, VENDOR DOWN PAYMENT & CLEARING Payment / Receipt process (Advance & Regular): *+ Advance Payment: Once the APR (Advance Payment Request) feceWved fom Purchase / Intending department, AP user willerss check the request with PO for compliance 4+ For all the purchase based advances, PO numbers willbe reerrdjattached to prepayment \ouchar. So sstam wil allow to pay the advance always less than or equal tothe advance mount ‘mentioned in the PO. Mave than one PO can be referrd fora single pre payment agains exch muna4 Make final vendor payment, the balance of the imo. ‘he accounting entry fr making the down payment wil be Vendor account (Spl G/: Down Payment) Dr Bankafe cr 4.2.4, INVOICE BOOKING & SETTLEMENT OF ADVANCE ‘Te concept of authoring the document entry can be achieved by the standard SAP funcional creating and authoring the payment request. Payinent request wil he created by ane person and authorized by another parson ta keep the conta. tes ab possibeto post invoices rom Fl without the necessity of purchase order. Tat can be used to full the requirement of postings tke mcelaneous payments, employee related payments, travel agent payments, hotels and consultancy payments ‘Settlement of down paymentsto the vendor account and clearing fInoice agains. Oown Payment Vendor Ne oe Vendor A/e{Sp. Git: Dowa Payment} Ce Wherever, WHT is applicable, the WHT willbe deducted atthe time of down-payment tothe vendor and wil be adjusted atthe timeof settlement of advances 4.2.5, CREDIT PERIOD FOR VENDOR PAYMENTS: ‘Terms of Payment wil be defined by the Company, which wil be updated inthe Vendor Master fr each ‘vendor and wil be defaulted in the PO and invoice lve. Wheve the payment terms have been changed ia the invoice level, he due dates will overide the orignal de date (aledated bared on Purchase Order). ‘Terms of payment wil define the credit period, ue date and cash discount, if applicable, The dve date wil be calculated froma baseline date aperthe payment terms, which willbe ether ofthe following dates:42.6, VENDORNORMAL PAYMENT 2 using the SAP standard functionality all the check payments can be managed. The typical procedure unde SAP with respect to check willbe: 2) Defring the check ts for house bank of «COMPANY ) Entering the vendor invoice Emtorng the vendor payent by clearing the open tem creat by voice 6) Auach check to the payment document umber generated instep (C} «) Check the check ester to se the check updated Vendor Payments can be manual or automatic. The general aspects related to vendor payment are Terms of Payment, Method / Media of Payment, manual payment & Automatic Payment X COMPANT has to make payments to vendors during their couse of transactions, vendors invoice due date is checked and its due, then the payment process begins. Prior to mang any payment down ‘payments if any are tobe checked and cleared against the invoices. Only then Payent process can be cred out. ‘The payment can be ful payment oF part payment or residual payment. Incase of ful payment, the system ‘dears the open item. Incase of part payment, the pen item i not cleared and has to be cleared manually subsequently, when the entire amount i paid Incase of residual payment, te orignal invoice is leared and the balance amount is reateds fresh open tem, ‘valabity ofthe funds is checked before making the payment n case funds ae not availabe, ater ‘making the funds avalible, the payment haste carried out. Payments canbe made through automatic payment program or through manual payment. ‘check payment can be made through automatic payment program or through post pls print option ‘wansacion. In case of automatic payment program, the parameters have tobe entered and the sytem prints the checks oral the vendors who are due as per spectied parameters. n bath cases, the check wid.‘+ Itdetermines the open items 1 be paid according tothe parameters entered and creates a proposal lst. You then have the ability to eat the proposed payments before the transactions ae posted. Any items that you do not want 1o pay canbe Blocked for payment, however, if you need addtional tems ‘be inched in the proposal st the previos proposal most be deleted, the parameters change to lek up the selina! waneactone ar the ayinent progrem nun. ‘+ The payment program makes the payments based on the edited proposal lit. Only the open items contained in the proporal ist ae taken into consideration, The payment program posts documents, sets up data for the form printout (ehec), the remitarce advice, and the payment summary 35, require, ‘+ Payment program wil automaticaly update the check register used) a the relevant general edger accounts and alse clear the vender invoice or which payment run sexccute, Considering the need of paying multiple vendors at atime and generating “cs fl, automatic payment program would be wed for x Company, ‘he payment parameters that ncedt be specified include + Company Code 1+ Vendors tobe paid and customers for refunds) ‘+ Posting and document date for open transacton items that mst be include inthe proposal Ist + Defining the bank from which the payments willbe made ‘+ Payment methods that are permited fg Check, FT) + currency During the payment run accounting document i generated clearing the vendor apen tem. 4.2.8, MANUALPAYMENT \weth manual payments you can print checks without running automatic payment program. There are 149 waysof doing ths‘Then ater payment of subsequent duis, goods would be released from the customs area, Goods receipt would be booked once the goods are ‘eceved in company's storage location. Then import vendors ‘commercial invoice woul be booked inthe system 1 goods received are as per the PO order quantity, Goods capt wl be posted with relerence to purchase ‘order when materials ahysieally received Invoice verficaton wil be processed wit reterence to goods ecipt and vendor invoice receipt a pr the payment trmsstaed in purchase order. Vendor payment wil ‘be processed with reference invoice verification posted in Materals Management by Financial Accounting, For such a the exchange rat spiced up fam the POin which we have defined a fixed exchange rate [Allimport purchase orders ae to be raised in forcgn curreney but the transactions ae to be recorded in IN. The import vendor invoice would be booked in the system in foreign currency. Sytem would pick up the exchange rates maintained in the system fr the currency par fore. USD to INR The exchange rate can be changed inthe document, f required, At the time of payment, the stem would automatically ‘akelate the exchange gale/oss and book ito eleva GL Ae 4.2.10, DEBIT NOTE & CREDIT NOTE ‘lthe support/elevant documents wll be subrstted by purchase to generate the debit/credit note onthe ‘ented process ke discounts onthe atypurchase. ‘roe Funtional with MMi red Memo [A credit memo can be entered with reference to a purchase order or a goots receipt. Purchase Dept/AccountsDept enter a credit mera fora purchase order tem when the goods are returned ta the vendor. Fst MIGO isto be posted forthe return quantity and then credit memo to be posted in MIRO for the return PO. Accounting Entries wll be fr Crest Memo [returned goods) Goods Receipt MiG Gane or Inventory Ae cr“© Open items reflect unfinished transactions. For example, 2 Labltythat has nat been sete remains Inthe Uabilty accounts an open tem unt itis sete. ‘+ Theopen items ofan account can only be cleared once you post an identi offsetting amount to the acount. In ether words, the balance ofthe items assigned to eachother must equal zero 1+ During clearing, the system enters a ceaing document number and the eearng date in these tems. 1+ Open items cam only be cleared if they are posted to accounts that are managed on an open item basis. Open item management i automatically set for customer and vendor accounts. For GL _acouns, however, you haveto set the open item management option in themastr record ‘open items ef an account can be deated manually using the Aecount Clearing function, oF they can be Cceared automatically by the system, Automatic clearing is especially useful for clearing account inthe GL “+ Users wil clear open tems from GL accounts by running the casing program. This program uses redefined citeria to group together open items per atcount. If the balance of the group of open ems equals 0 inocal or foreign currency, the items are marked a cleared. ‘+The clearing program s used to automaticaly clear open items based on predefined criteria, Manual clearing of open tems is therefore not usualy necessary. ‘+ Automatic clearing. clearing based on SAP-defined feds such as assignment, amount, ret el ‘+ Manual leaing (Le. matching of amount performed by users). 4.2.12, CORRESPONDENCE ‘Alletauatons and reports sent to business partners are considered as correspondence. Correspondence {or bath customers and vendors ines: 4+ Account statements and open tems it in eter form niu eters and stand eters + Balance confimstionsPark and post vendor invoice: X COMPANY requis day to day accounting ofthe tansactions that take place inthe organization. This application components required for entering vendor invoices that arse inthe accounts payable module of incl accountng. Incas, where materials management is iwoled, the entering ofthe invoice i done nthe lpstics invoice ‘verication of the materials management.ulVendor down Payment X COMPANY hat to pay, during thei course af transactions, advance payments tothe vendors. Advance ‘payments are known as down payments in SAP. Down payment request canbe created by the materials ‘management department and the some can be Viewed bythe accounts payable person. Alter checking the purchase order terms, the down payments made by the accounts payable person ‘he system posts the down payment transaction 3 specal general ledger transaction in the vendor account, Hence, twill not appear inthe regular balance but only in special genera edger bance. Once, ‘the down payment i cleared against an ivoice, the balance is ehfte from the special general edger balance tothe regular vendor account balonce [tthe time of document entry, the appropriate special general edge indicator needs tobe chosen, Flow diagram for vendor down paymentFlow dlagram Vendor Payment Process 4.3. CHANGES TO EXISTING ORGANIZATION PROCESS: 4.4, SPECIAL ORGANISATION CONSIDERATIONS:5, BUSINESS PROCESSES - ACCOUNTS RECEIVABLES 5.1. GENERAL EXPLANATIONS (ASIS}: ‘The folowing table summaries the sales busines lines ofthe individual egal entities. As 2 business practice usually the sales invoice created by the sales team, Based on that the accountng team ost the accounting entry peioccaly = No. | Name ofthe company Existing Line of business X Company Pains Corporation ua 2 | sphinax chemicats Pvt °X Company Pants Corporation 15 the manufacturer and Sellers of pants, thinners, wood fishes, puties a other materials. As on date * CompanyPant sales thelr products through Sphinax ChemialeX CompanyPainte eacn the Brimary revenue through this sale Howeversoon x Company is going to sale thelr products decly Into the markt. Ts on date Sphinax Ohomikals Pvt Ud acisas marketing Company for X Company Paints. The acts as caring and forwarding agent for X Company Paints Ltd Sohinax Chemicals sales the finshed products of Company Paints in the market Sphinax raises invoice on X Company Painsfor commision. A monthly invoice is raised by the france depaament 2 | sheenword Services LP Shesnworld team promotes the sales for Sheenworkd dion of XCompany Pants Lt, Based on the sales revenue recognized forthe division for 2 particular period for 2 ‘month; an invoice i razed on X Company Paints Corporation Ltd. Thi invoice ie currently rated by the France team. However, management is of the view the Shenworld senices would have ther own branch ofces ‘coe: @uhinay Phuricale put Lard) at different locations,branches S| Teensences “Tech Serica” are manufacturers of some material They have a contract executed with % Company Paint, under which they sale the material to X Company Paints Corporation Le. Tech Services rases invoices forthe sale of ‘material and ears thei revenue. As on date they the sales Ismade only Company Paints Corporation Li’ 6 | Sphinaxinfo Systems "Spina nfo Systems an sevies company They ender TT services to other sister concem companies in the X Company Group. sevice fees ae charge to each ster hosed on the number of users. Iti they posible that Sphinax woul ste some computer peripherals to the sister concerns companies a part of service contract Sphinax Organic & research P. "Sphinae Organic and research PLAds nto agate sctities. They have procured some farming land and they 7 la, cultate exops there. The food gain thus famed are sold inta local marke, Revenue is earnedthrough cop ale. "Sheeiae Financial Services” are into business of lending | company snancatzeres | dt othe ster cone eompanisin the grup. They ‘charge interest to the loan provided and the revenue Is recognize. 9 | xcompany Lanka Paint P. Ltd °% Connpany Lanka Pals PU” Tn the Wading Bsns, Te imports paint from X Company Paints Lt, India and sale them Into local markets of Sx Lanka. They earn their revenue trough the trading activites inthe SriLankan lea marke. ‘Among the entities sted above, almost al the entities post thir invcces through Sales and Distribution seupslich ‘asdiclecaunncalltishecmmennrdiremet di axutlienstlt hrenmmerentan towiidiegtemtinenstimediet raneieIn case of ether legal entties depending upon business requirement the credit notes ae isued tothe fend customers. The sales team post the credit nates into the sytem, Usually a the month end the accounting team posts the accounting entry forthe same, [AR Sundry Invoees:Other ate sles invoices other sundry Invleesike sale ef an asset and serap, iscolaneous receipts etc would be posted irecty through financial Accounting. In case of strap sales, Tesisnot coleted, Incoming payment receipts: In case of Sphinax chemicals Pit. Ldthe customer payments are usualy colectedthraugh check Smet other medium like DD, RTGS or very rarely cath ae acepted. The customer payment is cllected by the loal branch tear ard deposited into Sphinax chemicals Pt. td {CMS {Cash Management System) HOFC bank Ac. Each branch has a CMS bank Afccade. The branch alo Informs the accounting tam in the head office about the detail of payments receive. The credits for ‘the payments deposited by the branches are reflected inte HO HOFC Bank A/c. Based on the credits in the bank AVe and the information recehad fom the branches the accounting department posts the payment receipt tothe customer account In cate of other lga etic inthe group the customer payments ae ually collected through checks, ‘Sometimes other medium ike 0D, RTGS or very aly cash ae accepted. Based onthe payment ecelps, ‘the accounting team posts the customer payment receipt inthe ste. Ie sls practice that customer payments ae ecelvedin advances, And sometimes in partial amounts X Company alee holds some security deposi forthe dstibutors, This deposit isnot acusted against the Invoice outstanding Correspondence with the customerX Company accountng team sends reminders to the customer Informing the outstanding invoices. Besides this asa part of year end clsirg, balance confirmation requests area sent to customers. Interest caleulatins: Currently the X Company accounting tearm dots nat fllw the practice to calelate Ierest on customer outstancing Credit limitx Company customers enjoy some credit as business partners. The credit limit may fer ‘tom customer to customer, Fr dealers the cet init starts rom Rs 50K ad goes in multiple ofR SOK Incase of SKU, x Company holds a depos for a partalar amount. Credit mits fered tothe extent of “h tive sof thes cloner arnotsnt tho trast Yinsie ne baal onthe cenocahe the ssyehpermy samenapanp trop rhe.5.2. SOLUTION IN SAP ~ (TOBE): ‘Overview: The Accounts Receivable module records and adinistre accounting data of al customers, and ‘also an intara par of sales management. All postings in Accounts ReceWvable are also update inthe General Ledger. Dilferent G/L accounts ave ‘dated depending on the transation involved {for example regular invoice posting, advance payments. “he system contains a range of tools that can use to monitor open Rems, customer account balance analysis, acing analysis Th correspondence linked to these tools can be individually formulated to suit the requirements. This eaters to the requirement of sending payment notices, balance confieations, account statements and interest caleulations Accounts receivable ako provides the data required for effective crit management, (as 2 result ofits ‘dove integation withthe Sales and Distribution component Accounts receivable sub module of financial accounting also enables to post customer invoices directly ‘through financial accounting. ‘This also caters tothe requirement of dealing wth outgoing taxes on customer invoices 1+ Accounts Recowvable isnot merely one of the branches of accounting that fos the basis of Adequate and orderly accounting. It also provides the data required for effective creat ‘management, (8 result os close integration with the Sales and Distribution component) + Al postines in Aesounts Receivable are alto recorded direct inthe General Ledger. Diflerent Gl. accounts are updated depending on the transaction involved (for example, recevabies, down payments, and bls of exchange. The system contain range of teks that you can use to monitor ‘open items, such as acount analyses alarm reprts, due date lists. The correspondence inked to ‘ese tak can be individu formulated to suit X COMPANY'S requirements. Tiss ako the case for payment nties, balance confimations account statements, and interest aleulatons ‘+ There are ranges of tools avaliable for documenting the transactions that cur in Accounts Receivable, including tatance Hiss, journals, balance aut tals, and other standard reports, When Grawing up financial statements, the items in foreign curency are re-valued; customers who areIn X Company Customer wil be created through Sales and Distibution Module & FI Module join customer Master is erated centrally in Sales and distbution and fnancll acouating with ther respective views Flow dagram for customer master <=> congo nti] [- . > [orem] « — <>However, In some circumstances, the Invoice is ralsed in acounts recenable module self, Accounting ‘execute enters the invoice and parks the iwoice. The parked invoice is checked by Aecourtant/accounting ‘manager and if he is authored, he wil complete the document and poss tn ase he snot authorized, ‘then he vill compte the documenta hissuperor wil pos the document. Parkand Post Customer invoiceLOCAL SALES PROCESS 4. Release iling Document to Accounting (VEO1/VFO2}- If there 2 Posting Block activated to the [Document Tye then it wil ot get released to Accounts automaticaly. In that ease, an authored person wil go to change Biling Document and release it to Accounting. As a result of which Customer Account wil gt debited and Revenue Accounts wil get credtadinthe system, customerVe or soles We o VAT Payable co other taes payable o (The obove process same for Row Material / crap Sales Process) 5.2.3, DEBIT MEMO & CREDIT MEMO + Price ference can be addressed rectly in SD by creating Debit Memo reques/Debit mera by refereeing sales orderfnvoice '+X-company team desies to have a too to post the debit or credit notes to the dstibutor Ae. A flatfile woul! be imported into SAP systom which would automaticaly post the debtor rect notes into respective customer AY. This att is usually done at the month end. A customized tool would be given fr ths process, + Besides the tol option i alas salable tthe finance department to pass manuallyentry forthe 5.2.4, DOWNPAYMENT RECEIVED AND CLEARING[Advances ae receive from the customer Bank Account o Advanced Payments CustemerCe ‘These advances are later adjusted against the Final invoice raised on the parties and advance can be adjusted against more than one invoke a the tne of larng ofthe iavoces aginst advances, Adjustment of vances fs done 2 follows Advanced Payments Customer Dr. 5.25. COLLECTION PROCESS (POST INCOMING PAYMENT) ‘This function allows user to ecerd receipts fom customers in the system and ast them aginst imoces and debt memes. 1+ nthe case of receipts received agsinst invoices, the user can enter the invoices tobe adjusted, Else, he can record the receipt as “On Account” recent, a Ink to one ar more invoices ltr. But this wil lead to manual clearing 1 Invoies, advances and debit memos can be settled to the extent ofthe outstanding amount + Incoming payment can be eared partly or rexualy depending onthe situation. 1+ Incase the receipt currency e not the local currency, the sme ie converted int local currency for accounting purposes. The exchange rater maintained a¢ on the value date wil be used for conversion. However, the receipt details are stored inthe entered currency but can be view in oal and foregn curency as and when require.Ccstomer Incoming Payment Process (Regular/Advance/Adhoe) = l w |5.2.6 CUSTOMER INCOMING PAYMENT PROCESS (DIRECT DEPOSIT INTO BANK) Collections received from customers in two ways. The fst one is check or draft directly received fom ‘customer and depost inte Bank, Second one is Customer directly deport into our species bank account, Further enties are tobe updated based on the Bankstatement and the RIGS /E-et receipts Customer incoming payment process (iret deposit into bank)‘Automatic Incoming payment processing facty can be used to process incoming payments Standard incoming payment methods such as Check Deposits, Sank transfers shalbe avaiable. The Incoming payment however needs to match the ince for a ciearance to be effected by the posting rule for such clearances nthe event af an exact match not being avaiable, an on account esting can take place through separate statement & posting rule fr such on account payments 5.2.8 CREDIT CONTROL PROCESS ‘rat control reais an oxgoizationl unit that represents the area where customer credits awarded and ‘monitered.Credt control area wil be defined at company coe lvel and would be updated in customers master record, ‘ret iit can normaly be specified inthe inavidual customer master record tsales organization level “he credit ins atthe controlar level are chacked during sales order processing. ‘Simple Credit check is estabshed during sles order by maintalning Crit master Data wil be captured in 50. Te customer canbe blocked forthe bling by wsng delivering blk fet in sales order. Its eo desired by the x Company team to have customer processing block based onthe days of overdue 5.2.9, RESTATEMENT OF FOREX RECEIVABLES. ‘This process performs the revaluation of ail foreign curency open items, primary in customer and vendor accounts, using the month end exchange rate maintained. ‘his process cartes out foreign currency valuation for accounts managed on an open tem basis. Valuation ‘takes place acorting tothe singe valuation principe. This means that indvial open tem onthe key date only are taken into consideration forte vation, ‘SAP selects open items for customers, vendors, and G/L arcourts posted in foreign currencies. Based on the exchange rate on the Key date, exchange rate ference is caleuated automaticaly and valuation documents posesSAP enables sending the reminder letters to the customer based for oustanding invoices. The system ‘would be configured ae per the X Comtny team requirement for sending the reminder letters 5.2.12, CORRESPONDENCE SAP system would enable X Company to generate customer correspondences Ike document extract, balance cnfimtion ete. 5.3. CHANGES TO EXISTING ORGANIZATION PROCESS: NA 5.4. SPECIAL ORGANISATION CONSIDERATIONS: NA. 5.5. GAP ANALYSIS: 5.6. INTEGRATION CONSIDERATION:ASSET ACCOUNTING 6.1. GENERAL EXPLANATIONS (AS-S) ‘Asst acqulstions/capitazation:Ilegl entities of K Company groups hold fied assets and are managed per legal eny. ‘Te asset procurement proces starts with equistion. The requisitions are approved by concern authority. Based onthe requirement, the quotations are calle. After finalizing the best quotation, @ purchase orders released, lhe assets ae procured through purchase order oy the new fined asset noes installation, erection ete to put to usethe aset ke considered as under onstruction. The asset would be capitalized onceitis put to use ‘Amini att tag allotted per sce ands tracked accordingly. Based an the location ofthe ed 2sset tis denied as offce equipment or plant and machin. gir conltone ted onthe shop lori ented as plat and machinery. An ona condtioner fied inthe production aceon the shop floors identified a office equipment. Depreciation:The fined asset register is maintained in Excel and the Depreciation is eakusted in ‘excl. Usually the depreciation calculation and posting takes place at financial yearend dosing activity. ‘Asset srapThe scenario of asset scrapping of wie of snot yet taken place. Assets are owned ane managed per legal entity. Theres no eros company or sharing ownership in the assets Asses of one legal entity may be used by other legal entity for which ent or raqurad charge ae pad tothe owing company code. ‘+X company would tke to have depreciation calculations as per company’s act and income tax et onl. They reauirements post deprecation as per company act into GL NE, 6.2, FUNCTIONS AND EVENTS (TOBE): aii car shasiteeenliietlicnicomaeli meemeangnanscudicntiesitillie, plain‘The deprecation cakulation process sao automat, and depreciation I posted to the books of accounts at pre defined peiodeal intervals (generally monthly. Depreciation can be calculated according t0 goods sue > bling document By faut takes the proitcenter fom the material master, ‘Therefore the dominant lnk inthe SAP system that willbe used by X COMPANY isthe one between ‘material and profit center. Through this assignment, the majorty ofthe PCA postings wil ocur. With 2 single assignment on the material master recor, for each material / plant combination, you wil have ‘enti for SAP the defauit profit center forall sales orders, process orders, goods movements, material ‘transfers and phys inventory adjustments \When creatinga proces order fr finished goods, materia costs willbe posted tothe process order and at the same time to the Proft Center ofthe material confirmation of activities wl ceaita manufacturing cost conter and debit the process order and the Profit contr of the material. Goods receipt ofthis ished product into warehouse will eit the process order andthe Profit center ofthe materal. fa balance ‘exists on the process order due to more than budgeted wsage of raw materials for example, then ths ‘balance wil ao be wsible onthe profit center ofthe materia ePORTING REQUIREMENTS feports predefined by SAP are avalable for Prof Center Accounting. The predefined reports ae arranged ‘na Standard report twee. Therepets enable you to evaluate the posted data according to various ere ‘The report shows enable to draw Profit loss account, balance sheet; GL account balances per profit 8.3. CHANGES TO EXISTING ORGANIZATION PROCESS: NA 8.4. SPECIAL ORGANISATION CONSIDERATIONS: 8.5. GAP ANALYSIS: NA.9. PROCESS MAPPING 1) Gt- accountng aa pa sReaparoldyte | GAlemster dite | NA sar Acountnoocu |” scountng and ment processing | monthly closing mined Company + bocument pking sccounting tem tts some oura |» Document posting voucher ne, eres | « bocument ing BroMeon et | «osama ren + Sample Document + Voucher seine 32 | Gl: Accntng’ + Tomeetbusaes + Pood end dosing) WAL AP Teuremensx funertincins | SOMEONES | ering document dose emitend | onigerency cle oregn | “TOS coe olution rest | «erst clltins ‘stations Seeieton aga | Openiton deaine ert of prcesthe count balances clearneone ceenngea [Taxes and dies |» Pang Wior [> Excise 7 CCENVAT ered set on ‘Journal voucher erty 2 | Recounts pavabie 2: | Vendoriwoice |» Vendorinvize [+ Vendor masterrecord | NA. SAP document verification posing: reference FO | * PO based noice vesteation Vendor inviee Ventstonnen. | *Mendorinwoie parting reference FO | vendor invoke posting + Vendor iwc | anding devey cots posting + Vendor rede notes vendor Debired note + Vendor cet period ZE_| Vendor pawnent |» Depending won|» Pament tems NK AP eeditperiod understanding with businessparner, the crea limiis tized or releasing the payments 23 | Oataoine ‘= Manusichest |» Manaalpaymententy | NAL SAP payments povment entry 1 Chock ot tracking + Reguar payment ‘* Payments in foreign* Vendor open em clearing 2a | Communications |» Vendorbalance |» Recount statements Na SAP withvendors | canfimation later + Balance confirmations ‘+ Poyment achices | * Payment aies 25 | Accounts payable |» XCompany team |» Vendor Account balance | NAL SAP reports uses vendor report balances, vendor Qocninvakes and | * Vendor Accounting tem vendor ageing ‘revert analvsre9ORS | vendor Account master data report 26 | put ‘input taxes Excke, | «Tax codes ForInput oxen | WAL a ‘Tesidutios | VAT, CST, service | Exe, VAT, ST service tax customs duty, | ta, customs duty, GTA mA + Automatic posting of input sinputtaxcredt | taxestocurentassets + No inputs cred | « Automate looding of int taxes to expenses * witthnlding es ‘+ winholng taxes at invoke posting or payment posting 3 | Accounts recelvable32 | Customer credit | Creditiimt based |» Credit management NK AP its con theseunty Seooee + Processing Bock + Automatic ret checks 33 | eistomer credit + 7 daysand 30days |» Payment tems NA ‘SAP peti’ credit period 3a | Gastomer ‘ Regular payments» Incoming payments NK ‘SAP payment reccgts = Partislpayments | «Partial incoming payments ‘Advance payments | « Advance incoming payment + customer Afecearing 35 | Customer inorest |» Notfolowed |» Customerbalance interest | NAL SAP caeuatons ceutrentty «aleitions + customeritem Interest caleitions 36 | Commaniations | Balance = Dunning Na SAP witheustomer | confirmation + Balance conirmation ‘Payment reminders + Poyment advices 37 | Accounts ‘Customer alances | Customer Account balance | WAL SAP receivable report cmanaiee‘output anes to current labities ‘withholding taxes ert @ | Asset Accounting 42 | Assettaster | Assets are Tse dass Na ‘AP record ‘managed in excel sate set Master record individual tags “4a | Asset acuiition | Procurement ‘Asset acguiiton Na SAP andretement | though PO ‘Asset under constructions + capitalization from Grenattocee | Asset retirement Asset crap “aa | asset ‘= Manal Planned deprecation NA SAP depreciation | deprecation aaersnwethe | Schedled depreciation can vyearendand Depreciation as por posting into system | companys net Depreciation as per income Teact “43 | Assetrepot |» Assetbalances | Asset elorer NA SAP + Depreciation Asset balances balance Depreciation schedule © | Cosh and bent52 | Sank accounting | Individual banka/e | Bank masterrecard Na AP for each egal ent PY ouse banks CMS Wetor Sphinak Chemicals | Chestlot management ‘+ Fundiransfer | Chskreiter ‘Balance trachingfor | Teekcaneetavion 10s branches 33 "= Manual bani ‘Manual bank econaiiaon | WAL SAP reconciliation 5 | Proficenter ‘Accounting 64 | Comalocation | Postingexpenses | Profitcenterassignment | NAL SAP perunitof er leaton-branch responstilty 62 | Proftabity |» income expenses | Profitability analsisveport | NAL SAP analysstor analysis forvarious branch cations | lecations/branches10. REPORTS Gt Accounting Sans70ni%¢ | chee Asouts iced sa apt SARL iToming | eLearn Det ofteier sins | Pando SARA701I08 —_|wwychnioctaccuns [RIMES | srstndes Sivatsed Rw sansronar — |Shactdoaacn mrovecon” |Samnest04bnesbet 8 | sy sondug a retAcot nae Tan sma | CARRE HRER TOBE | Ceo TE [sr sang cx sumer Sones) aieuece SAR-e7oM——| 6 ineens inet Sande ‘statements for GL Accounts, ae SRACHORT | Dexrertoors ocertiural [Sando S-Am701291 | uneitem ura! a ste Sando ly ToT Sansmonm —_[owavetomestooumens —_| Bsns sao sordoe S.AUR 702341 Invoice Numbers assigned Twice {voice Numbers astimmed | 40 secant ” = Twice SARa7on ——_[rsangToieonamen pein | PEE “Hosta A ie | ern Doane Tarn yan Sd Sra wooo |. Aout tuies Gitxcomisaiones | st? stundwe rs ee SARADI72 | GatonerBubnrinieatGrensy | Same “A Snes a awae pera aya sansvonae ——_[oceree croc rants | io stntee s.xn.sriee | traactenfgwesaccunt tance | FGDSAen FEE AEM sap anda SAR ania [uit Casein ene {it Faster ere SAP Sard ‘Accounts payable AiR. 7012007 | vendor ase tt Verdot SAP Sie S.A 7012077 | vendor riomation Se Vendor nema ten [SA Ste ‘AiR 701208) [veo tances enor anes SAP Sie Sanaa | oie ote ana tr openitame | DORIS EOF | sap anda SAR sToRIO] | overdo me Ui ofvendr tenes | SA? Sand Sam svonaer | vnsoroebifrate nemanagi | EEEDUEIEMETE |p antag S.A s7on0s | oop chargsto vedo Diep ingeto nde | SAP Sand Sin simoioi | rece heer Chester a0 Se Spi samoio: [beck miter trees chen Rnges | A Stun ‘Asset scouring ANoin Tt per st re a Sanda S_AIR 87011963 Asset Galance by Asset Number oe SAP Standard S.ALR 87022865 ‘Asset Balance by Business Area ‘Asset Balance By Business | 64 candace Sain s7ouacs | aust asanceby cost Center Ast ereevet | gee sanda SIAR 7011967 [Ast ane by Pa reset alceby Pant | SA? Sand Sansone [Ast ale bycontocaton | MER EPEYEO | sup anda