Professional Documents
Culture Documents
Record of Release
Version No. 1.0 2.0 2.1 Modified By Reviewed By Authorized By Release Date Modifications Done
IT CO LOGO
CLIENT LOGO
TABLE OF CONTENTS......................................................................................................................... 1 ORGANIZATION STRUCTURE...................................................................................................................7 Chart of Account...................................................................................................................................................9 Company Code......................................................................................................................................................9 Ledger 10 Fiscal year variant...............................................................................................................................................10 Posting period Variant........................................................................................................................................10 Document number range for Company Code.................................................................................................10 Document type & number range.......................................................................................................................10 Field status Group ..............................................................................................................................................10 Tolerance group for users..................................................................................................................................10 Currency...............................................................................................................................................................10 Posting Keys.........................................................................................................................................................10 2 MASTER DATA..............................................................................................................................................10 a) General Ledger Accounting ........................................................................................................................10 General Ledger master .....................................................................................................................................10 Account Group....................................................................................................................................................10 Reconciliation account .......................................................................................................................................10 Retained earning account ..................................................................................................................................10 Number Range.....................................................................................................................................................10 b) Accounts Receivable Accounting................................................................................................................10 Customer Master data .......................................................................................................................................10 Terms of payment...............................................................................................................................................10 c) Accounts payable accounting........................................................................................................................10 Maximum exchange rate difference..................................................................................................................10 Vendor Master data............................................................................................................................................10 Tax calculation procedure .................................................................................................................................10 Tax codes..............................................................................................................................................................10 Terms of payment...............................................................................................................................................10
2 of 194
Chart of Depreciation .......................................................................................................................................10 Asset Class............................................................................................................................................................10 Asset Master........................................................................................................................................................10 Asset sub number...............................................................................................................................................10 Depreciation Key.................................................................................................................................................10 e) Bank Accounting............................................................................................................................................10 3 BUSINESS PROCESS.....................................................................................................................................12 GENERAL LEDGER ACCOUNTING...........................................................................................................12 3.1.1 Cash Transactions......................................................................................................................................12 3.1.2 Bank Receipt...............................................................................................................................................14 3.1.3 Funds Transfer...........................................................................................................................................19 3.1.4 Dishonor of Instruments...........................................................................................................................21 3.1.5 Bank payment ............................................................................................................................................23 3.1.6 Electronic Payments..................................................................................................................................25 3.1.7 Demand Draft/ Pay order.........................................................................................................................27 3.1.8 Reversal Entries.........................................................................................................................................29 3.1.9 Bank Reconciliation Statements...............................................................................................................31 3.1.10 Bank Deposits...........................................................................................................................................34 3.1.11 Term Loans / Cash Credit......................................................................................................................36 3.1.12 Journal Entries Intra Branch..............................................................................................................38 3.1.13 Journal Entries-Inter Branch.................................................................................................................40 3.1.14 Taxes-Excise............................................................................................................................................42 3.1.15 Taxes-Sales Tax........................................................................................................................................47 3.1.18 Taxes-TDS.................................................................................................................................................51 3.1.19 Tax Deducted at Source (Asset).............................................................................................................55 3.1.22 Job Work Accounting..............................................................................................................................57 3.1.24 Stock Transfer-Raw Material................................................................................................................59 3.1.25 Stock Transfer-Finished Good...............................................................................................................61 3.1.26 Accruals.....................................................................................................................................................63
3 of 194
3.1.31 Marketing Compensation.......................................................................................................................67 3.1.32 Prepaid expenses......................................................................................................................................69 3.1.33 Proof Sheets..............................................................................................................................................71 3.1.34 Valuation - Raw Material/Packing Material/Fuels & Lubricants.....................................................73 3.1.35 Stock Valuation - Finished Goods..........................................................................................................75 3.1.36 Stock Valuation - Depot Stocks..............................................................................................................77 3.1.37 Stock Valuation - Stock in Transit.........................................................................................................79 3.1.38 Stock Valuation - Obsolete / Damaged Stock.......................................................................................81 3.1.40 Excise Differential (RTP) XYZ LIMITED...........................................................................................83 3.1.41 Cash Flow Statement...............................................................................................................................85 3.1.42 Payroll.......................................................................................................................................................87 3.1.43 Issue of Bank Guarantee.........................................................................................................................89 3.1.44 RBI Return for Foreign Investments....................................................................................................91 3.1.45 Transactions with Associated Concerns................................................................................................93 3.1.46 Security Deposits Received or Paid in excess of Rs.20, 000................................................................95 3.1.47 Sample documents...................................................................................................................................97 3.1.48 GL document parking & posting...........................................................................................................99 3.1.49 Document Split functionality................................................................................................................101 3.1.50 Valuation of Foreign Currency item...................................................................................................104 3.1.51 Clear GL accounts ................................................................................................................................106 ACCOUNTS RECEIVABLE:-.......................................................................................................................108 3.2.1 Advance Receipts.....................................................................................................................................108 3.2.2 Receipts against Credit Supplies............................................................................................................111 3.2.3 Bank Guarantee / Letter of Credit for Credit Supplies......................................................................115 3.2.4 Bill Discounting (BOE)...........................................................................................................................117 3.2.5 Inter Branch Receipt Accounting..........................................................................................................119 3.2.6 Interest on Delayed Payments................................................................................................................121 3.2.7 Debit & Credit Notes..............................................................................................................................124 3.2.8 Sales Returns............................................................................................................................................126
4 of 194
Business Blue Print- Finance CLIENT LOGO 3.2.9 Bad Debts & Provisions...........................................................................................................................128
IT CO LOGO
3.2.13 Customer Invoice document holding & posting.................................................................................130 ACCOUNTS PAYABLE.................................................................................................................................132 3.3.1 Purchase of Material Bill Processing.....................................................................................................132 3.3.2 Payment Process.......................................................................................................................................135 3.3.3 Bank Guarantee from Vendors..............................................................................................................139 3.3.4 Letter of Credit.........................................................................................................................................141 3.3.5 Payment against Document....................................................................................................................143 3.3.7 Inter Office Payments..............................................................................................................................146 3.3.8 Purchase Bill Processing Imports.......................................................................................................148 3.3.9 Payment processing Imports after credit period...............................................................................150 3.3.10 Exchange Fluctuations - Capital / Revenue........................................................................................152 3.3.11 Payment of Duty on Imports................................................................................................................155 3.3.12 Service Vendor Payments:-...................................................................................................................158 3.3.13 Capital Vendor Payments.....................................................................................................................161 3.3.14 Invoice processing without Purchase order........................................................................................163 3.3.15 Credit Memo/Note with Purchase Order............................................................................................165 3.3.16 GR/IR account maintenance................................................................................................................167 3.3.17 Bill of Exchange......................................................................................................................................169 3.3.18 Vendor Invoice document holding & posting.....................................................................................171 ASSET ACCOUNTING..................................................................................................................................173 3.4.1 Acquisition Process..................................................................................................................................173 3.4.2 Depreciation Accounting.........................................................................................................................177 3.4.3 Transfer of Assets....................................................................................................................................180 3.4.4 Disposal of Assets.....................................................................................................................................182 3.4.5 Physical Verification of Assets...............................................................................................................184 3.5 Month End Process....................................................................................................................................186 YEAR END PROCESS...................................................................................................................................189 3.6.1 Year End Process FY...........................................................................................................................189 3.6.2 Year End Process CY...........................................................................................................................192
5 of 194
IT CO LOGO
CLIENT LOGO
6 of 194
IT CO LOGO
CLIENT LOGO
Organization structure
Attached below is the Organization structure:-
7 of 194
IT CO LOGO
CLIENT LOGO
8 of 194
IT CO LOGO
CLIENT LOGO
Chart of Account
Chart of account serves the following two purposes:1. Permits recording of transactions to the level of detail required by business. 2. Preparation of Balance sheet & Profit and loss statement in compliance with the statutory regulations. One Chart of Account will be created for BPE. Below values will be defined while configuring Chart of Account: Field Chart of Account Description Maint. Language Length of GL account Controlling integration Name BPE BPE Chart of Account English 6 (Numeric) Manual creation of Cost element
Cost element can be created in SAP in two ways:1. Automatic creation of cost element:-Whenever a GL account is created, cost element will be created automatically in the background. 2. Manual creation of Cost element:-Once GL account is created, cost element will be created manually through a separate process. For BPE, Cost element will be created manually, to have control over creation of cost element.
Company Code
Company code is the basic organizational unit in SAP FI for which the balance sheet and profit & loss can be drawn from the legal requirement point of view. One Company code will be created for BPE.
9 of 194
IT CO LOGO
CLIENT LOGO
Below values will be defined while configuring Company code: Field Company Code Company Name City Country Currency Language Address Value BPE Bull Power Electronics Limited Mumbai India INR English
Company code created will be assigned to the Chart of Account created in above step.
Ledger
Ledger Concept: 1. Possible to perform parallel accounting for different accounting principles 2. Separate ledgers can be defined for the different accounting principles 3. Documents can be posted in these ledgers or group of ledgers to fulfill the accounting requirement 4. All company codes are assigned to a leading ledger 0L for each client. Only one leading ledger for each client. 5. Only values from leading ledger are posted to CO New GL accounting will be implemented for BPE. Below mentioned Ledger will be created for BPE:Ledger 0L H1 L1 U1 I1 Description Leading Ledger Colas reporting ledger Local GAP Ledger US GAP Ledger IFRS Ledger
Accounting for the BPE financial year April to March will be done through Leading ledger 0L and non leading ledger H1 will be used for reporting as per the Colas, France financial year January to December. Fiscal year variant V3 (April to March) will be assigned to leading ledger 0L, and non leading ledgers except H1. Fiscal year variant K4 (Jan to Dec) will be assigned to the non leading ledger H1. Above Ledgers are created to report according to different accounting principle requirements. Ledger 0L is the leading ledger. Ledger L1 is the non leading Ledger which represents the Local GAP reporting requirements. All the Finance postings in the Leading ledger 0L will flow automatically to all the other non leading ledgers. Posting specifically made to any of the non leading ledger to adhere to the respective accounting principle requirements will not flow to any of the other ledger.
10 of 194
IT CO LOGO
CLIENT LOGO
11 of 194
IT CO LOGO
CLIENT LOGO
3.1.1 Cash Transactions Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.1 Ref. Sr. No. of AS-IS document 3.1.1 Cash transactions Name of Business Process : General Ledger Accounting Module Finance Version no of document: 2.1 Flow Chart of Business Process :
Process Step
FB01 / FB50
Potential Gaps:
None
12 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No
Business Benefits
Even without maintaining the cash register separately, the cash expenses will be accounted in a proper way. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
13 of 194
IT CO LOGO
CLIENT LOGO
3.1.2 Bank Receipt Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.2 Ref. Sr. No. of AS-IS document 3.1.2 Bank Receipt Name of Business Process : General Ledger Accounting Module Finance Version no of document: 2.1 Flow Chart of Business Process :
14 of 194
IT CO LOGO
CLIENT LOGO
Receipt like EMD for tenders will be handled in SAP with the help of special GL indicator. If the customer deposit the amount in to bank directly, in that case the amount deposited will be credited to customer account on receipt of the bank statement. Following entry will be passed:Bank. A/c... .Dr Customer A/c Cr If the post dated cheque is received from the customer, a statistical entry will be passed. On due date, receipt accounting will be done as follows:Bank Clearing (receipt) Account Dr Customer A/c .... .Cr Once the cheque is deposited in to the bank on the due date, upon receipt of credit for the same, below mentioned entry will be passed:Bank A/c.. .Dr Bank Clearing (receipt) Account. Cr If the payment receipt entry is passed wrongly, that entry will be reversed through transaction code FB08. Post date cheques can be eneterd in the below mentioned two ways in to the system: 1.Posting as statistical entry:- Cheques will be posted into the system immediately on the receipt of the cheque. The document date will be entered as cheque date with the posting date as the current date. On the due date bank deposit slip will be generated by the system automatically (through development), actual posting will be done manually for the payment received. This will ensure factual credit position of the customer as well as MIS reporting. During period closures, the cheques in hand which are not deposited in to the bank, will be accounted and the credit will be given to the Customer. The cheques in transit from depots will be considered as cheques in hand and will be accounted into the system. During BDS generation, those cheques will be excluded from the Bank deposit slip by selecting the same. An option will be provided in the bank deposit slip report to display the exclusion list. 2.Actual credit to the customer immediately after receipt of the cheque:If the post dated cheque is received from the customer, credit will be given to customer through below mentioned entry:Bank Clearing (receipt) Account Dr Customer A/c .... .Cr Once the cheque is deposited in to the bank on the due date, upon receipt of credit for the same, below mentioned entry will be passed:-
15 of 194
IT CO LOGO
CLIENT LOGO
Bank A/c.. .Dr Bank Clearing (receipt) Account. Cr The original entry and the reversal entry will be knocked off through open item clearing functionality. If the item is already cleared then it will be reset using FBRA. Bank statement upload functionality:For uploading the bank statement in to SAP, the bank has to provide the bank statement in the SAP acceptable format. For this a format will be provided to the bank. Bank will send the bank statement through the agreed media like through E-mail. Bank statement will be uploaded in to SAP using the transaction code FF_5. Below mentioned entry will be passed by the system automatically on upload of the Bank statement :Bank A/c.. .. .Dr Bank Clearing (receipt) Account. Cr The above entry will have the reference of the Cheque number. Bank clearing account is maintained as open item managed account. The above mentioned entry will automatically clear the respective open entry passed at the time of accounting the receipt of the cheque from the Bank (Entry is mentioned below again for ready reference):Bank Clearing (receipt) Account Dr Customer A/c ...... .Cr All the Cheques and Invoices received from the depot will be accounted at the respective parent locations. At the month end, those Invoices & Cheques can be entered in the previous period, if previous period is open. Process Step FF_5 FB01 F-28 FB08 FBRA FCHN FF67 FF68 Explanation, variations and exceptions Import Bank Statement Enter G/L account document Post Incoming payments Reverse document Reset items Cheque register Manual bank statement entry Manual check deposit
Potential Gaps:
1. System does not provide a report for the number of days for delayed credit by considering the
difference of date of deposit and actual clearing date. 2. For depositing the cheques received from customer, there is no standard advice slip available in the SAP. 3. In case of Post dates cheques, on the due date the bank deposit slip is not printed automatically
16 of 194
IT CO LOGO
CLIENT LOGO
considering the difference of Date of Deposit and actual clearing date. 2. Bank deposit slip report will be created in SAP. 3. Functionality will be developed to generate the bank deposit slip automatically on the due date for the post dated cheques along with the option of exclusions for in transit receipts accounted.
2. FBL3N-GL line item report 3. FS10N-GL balance summary 4. FBL1N-Vendor line item report 5. FBL5N-Customer line item report
17 of 194
IT CO LOGO
CLIENT LOGO
18 of 194
IT CO LOGO
CLIENT LOGO
19 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No
Business Benefits
We will have better control & utilisation on Inter branch fund transfer. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
20 of 194
IT CO LOGO
CLIENT LOGO
3.1.4 Dishonor of Instruments Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.4 Ref. Sr. No. of AS-IS document 3.1.4 Dishonor of Instruments Name of Business Process : General Ledger Accounting Module Finance Submodule GL- Dishonor of Instruments Version no of document: 2.1 Date : Flow Chart of Business Process :
Process Step
FB08 FBRA FB01 / FB50
21 of 194
IT CO LOGO
CLIENT LOGO
FBL5N
Potential Gaps:
Dishonored cheques are not attached to the document as part of correspondence in standard SAP.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No
Business Benefits
Dishonoured instrument can be accounted for and tracked in SAP. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
22 of 194
IT CO LOGO
CLIENT LOGO
3.1.5 Bank payment Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.5 Ref. Sr. No. of AS-IS document 3.1.5 Bank payment (Non Vendor) Name of Business Process : General Ledger Accounting Module : Finance Version no of document: 2.1 Flow Chart of Business Process : Submodule GL- Bank payment (Non Vendor) Date :
IT CO LOGO
CLIENT LOGO
4. Destroyed/Unusable 5. Stolen Process Step F-07 FCH5 FCH1 F110 Explanation, variations and exceptions Post outgoing payments Manual check creation Display cheque information Automatic Payment Run
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No
Business Benefits
Non vendor expenses can be booked separately than the vendor transactions. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
24 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
IT CO LOGO
CLIENT LOGO
If the bank statement upload functionality is not used, then the above entry will be passed manually. Process Step FB01/FB50 F-07 Explanation, variations and exceptions Enter G/L account document Post outgoing payments
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No
Business Benefits
Through separate document type, all the E payments can be identified in the system separately. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
26 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
Process Step
F-07 FB01/FB50
Potential Gaps:
Generation of Bank wise serially numbered DD/Pay order requests through system is required. Standard SAP does not provide this request form.
27 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
28 of 194
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
FBRA
Potential Gaps:
None
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
IT CO LOGO
CLIENT LOGO
Business Benefits
Reversal transaction will always have the track of the original transaction and vice versa. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
GL-
Bank
Reconciliation
Date :
31 of 194
IT CO LOGO
CLIENT LOGO
Process Step
F-32 F-53 FB01/FB50
Potential Gaps:
1. No functionality is available in SAP for preparing the bank reconciliation statement directly from the
system in the traditional format. 2. No SAP standard report is available to provide a list of instruments of stale nature pending clearance over 6 months for deposits both for payment & deposits.
IT CO LOGO
CLIENT LOGO
1. Main Bank Account 2. Incoming payment clearing account 3. Outgoing payment clearing account.
Bank reconciliation statement can be prepared by combining the above mentioned three accounts. Also, a new report can be developed to provide the bank reconciliation in the traditional (Legacy) format.
2. A new report will be developed to provide a list of instruments of stale nature pending clearance over
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Bank reconciliation statement can be prepared through SAP using the three accounts mentioned above.
33 of 194
IT CO LOGO
CLIENT LOGO
Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
34 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB01/FB50 FF_1
Potential Gaps:
None
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
IT CO LOGO
CLIENT LOGO
Business Benefits
A better control on Term deposit accounts will be possible through SAP. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
IT CO LOGO
CLIENT LOGO
Process Step
FB01/FB50 FF_1
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
37 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Accounting for Term loan and & interest there on will done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
38 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB01 / FB50
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
39 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Wrongly booked transactions will be corrected using the Journal entry feature of SAP. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
40 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB01 / FB50
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
41 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Inter branch transactions can be recorded and controlled through Profit center functionality in a better way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
3.1.14 Taxes-Excise
Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.14 Ref. Sr. No. of AS-IS document 3.1.14 Taxes-Excise Name of Business Process : General Ledger Accounting Module Finance Version no of document: 2.1 Flow Chart of Business Process :
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
Cenvat Account..Dr. Cenvat ClearingCr. During Invoice Verification:Cenvat Clearing.Dr. GR/IR Clearing.Dr. Vendor Payable Cr. For Excise Duty Reversal through Excise JV Cenvat Clearing.Dr. Cenvat Account.Cr. Below mentioned accounting entries are passed at the time of domestic procurement of Capital Goods:During GR:Material Stock Dr. GR/IR clearingCr. During Excise Invoice Credit:Cenvat Account ..Dr. Cenvat On-hold. Dr. Cenvat Clearing. Cr. During Invoice Verification:Cenvat Clearing..Dr. GR/IR Clearing.. Dr. Vendor Payable . Cr In the next year, below mentioned entry will be passed by the system for transfer of Cenvat on Hold to Cenvat account:Cenvat Account. Dr. Cenvat On-hold. Cr. (50%) (50%) (50%) (50%)
Below mentioned accounting entries are passed for Import Procurement of Raw Material:During Customs Duty Clearing invoice Custom Clearing.Dr. Custom Payable..Cr. During GR Material Stock Dr.
44 of 194
IT CO LOGO
CLIENT LOGO
GR/IR clearing.. Cr. During Excise Invoice Credit Cenvat Account. Dr. Custom Clearing Cr. During Invoice Verification GR/IR Clearing. Dr. Vendor Payable Cr. Below mentioned accounting entries are passed at the time of Sale of Finished Goods from Plant:During Billing Document Customer AccountDr. Sales Account..Cr. Cenvat Suspense AccountCr. Sales Tax Payable account..Cr. During Excise Invoice Creation Cenvat Suspense AccountDr. Cenvat payable..Cr. For GAR-7 Challan PLA Account.Dr. PLA on hold Account.Cr. During monthly Utilization Cenvat payable.. Dr. Cenvat Account. Cr. PLA Account Cr. Below mentioned accounting entries are passed at the time of Stock Transfer through SD:No Accounting entry is passed for Performa Billing Document During Excise Invoice Creation Cenvat Suspense Account Dr. Cenvat payable.Cr. For GAR-7 Challan PLA Account. Dr. PLA on hold Account Cr.
45 of 194
IT CO LOGO
CLIENT LOGO
During monthly Utilization Cenvat payable.. Dr. Cenvat Account. Cr. PLA Account.. Cr. The excise liability would be set off against service tax credit available in the service tax receivable account through excise JV. All the required detail for filling up the ER-1 return will be provided, return will be prepared manually. On the basis of the Vendor Masters, a report consisting of the Vendor Name, ECC number, Manufacturer or Dealer category, Product Name, CETH number, Qty etc needs to be generated through the SAP system. The tax movement summary with details such as Opening Balance, Credits debits during the period and Closing Balance will be provided for individual locations for the individual months through the Excise GL accounts. More detailed explanation will be provided during the User testing & User training phase of the Project.
Potential Gaps:
None
46 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Through CIN all the excise accounting will be done in close integration of MM, SD & FI module. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
IT CO LOGO
CLIENT LOGO
Detailed Process Description, Process Variations and Exceptions Output Tax:Sales Tax related posting will automatically flow in to FI module through SD module after doing the required configuration in SD & FI module. Separate GL accounts will be defined and configured in SAP. Various applicable Sales Tax codes will be created in SAP to calculate the sales tax at different state rate and for the concessional tax, for example in case of C form. The sales tax will be calculated at the rate defined in the Tax codes in SAP. Sales Tax liability will be calculated in SAP as per the below mentioned formula:-Output tax liability of Sales tax- Opening Credit balance of Sales Tax-Current months credit = Liability or Nil Liability. Input tax credit will be derived from the purchasing module and output tax credit will be derived from Sales and distribution module. Separate GL accounts will be created for Local Sales tax & Central Sales Tax. SAP has provided standard Sales Tax register. This can be generated any time from the system using transaction code J1I2. In the case of Deferment of Sales tax (IFST) liability for a specified period and specified amount will be accounted in a separate GL account IFST Deferral A/c. It will be paid as per the due dates. Tracking of the due date will be manual. Sales tax register showing all the credits availed during the period with details such as Vendor Name, Tax Invoice No, TIN Number, Assessable Value, Tax Rate, Tax Amount and percentage will be generated from SAP. Sales Tax registers will be maintained as depot in similar way as maintained at the plant, however it will be only the output tax liability at depot. The Sales tax movement summary with details such as Opening Balance, Credits and Debits during the period and Closing Balance will be provided by SAP for individual locations for the individual months. All the required detail for filling up the Sales tax return will be provided, returns will be prepared manually. Sales tax code for both the input & output tax will be created. Sales tax eligible for set off will be accounted in separate GL account. The amount which is not eligible for set off will be included in the Inventory cost. A certain percentage of vat credit will be reversed on purchase of fuels and added to the cost as per the resp. state acts which is ineligible. Below mentioned accounting entries are passed at the time of Sale of Finished Goods from Plant:During Billing Document Customer AccountDr. Sales Account..Cr.
48 of 194
IT CO LOGO
CLIENT LOGO
Input Tax:Input tax is calculated as per the tax code mentioned in the purchase order. If a part or the entire input tax is nondeductible, you can post the tax amount to a separate expense account or distribute it to the G/L account. You enter the tax percentage rates for the input tax portion and the nondeductible portion to a shared tax code. If the entire input tax is nondeductible, you must specify for the tax code that zero percentage input tax is to be calculated. You have to post an incoming invoice amounting to INR 1,200. The tax amount of INR 200 (20 percent) comprises 12 percent input taxes (INR 120) and a nondeductible portion of eight percent (INR 80). You can now post the nondeductible portion to a separate account (see the following figure, example A) or distribute it to the G/L account (see the following figure, example B). If the entire input VAT amount is non-deductible, no input VAT posting is made; the non-deductible input tax can be posted to a separate account (see the following figure, example C) or be distributed between the G/L account and assets line items.
Sales Tax liability will be paid as per the due date. There will be no automatic prompt for payment of liability on the due date. Sales tax receivable (excess credit) at the end of the FY will not
be carried forward to the subsequent FY. The receivable amount will be transferred to Sales Tax Receivable A/c and shown in the BS.
More detailed explanation will be provided during the User testing & User training phase of the Project.
Potential Gaps:
None
49 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Sales tax related accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
50 of 194
IT CO LOGO
CLIENT LOGO
3.1.18 Taxes-TDS
Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.18 Ref. Sr. No. of AS-IS document 3.1.18 Taxes-TDS Name of Business Process : General Ledger Accounting Module Finance Version no of document: 2.1 Flow Chart of Business Process :
IT CO LOGO
CLIENT LOGO
accounts will have the separate limit and separate rates. Below mentioned are the few of the examples:Key 194A 194C 194D 194I 194J 195 Description Income other than Securities Payment to Contractors Insurance Rent Professional services Other Payment residents to Non-
TDS will be accounted in to the system as TDS payable at the time of booking the vendor invoice or at the time of payment whichever is earlier, through configuration. TDS will be calculated at the rate mentioned in the tax code. Tax code is maintained in the vendor Master data. Tax code maintained in the master data is defaulted to the document automatically. Employee whose TDS has to be deducted will be created as Vendor in SAP. TDS amount for NRI payments (Colas) will be grossed up and the liability will be accounted. The calculation for the same will be done outside the system. TDS certificates for the vendor will be generated from the SAP. PAN number detail of the vendor will be defaulted from the Vendor master. For each withholding tax type, two entries will be created as follows:Recipient type CO OT Text Companies Others
If, after you have entered and cleared a vendor invoice and you have discovered that you have posted the wrong amount of tax or that you have posted the tax using the wrong official tax key, you have to enter a Journal voucher (JV) to correct the error. Type of change Tax refund to vendor (tax already remitted) Tax refund to vendor (tax not yet remitted) Tax increase, payable by vendor Debit Loss account Credit Vendor account Tax payable Vendor account account Vendor account Tax payable
TDS (Work Contract Tax) for Service Orders will be calculated and deducted. The following entry will be passed on booking the Vendor Invoice:Expenses Account..Dr Vendor Account.Cr
52 of 194
IT CO LOGO
CLIENT LOGO
TDS payable Account Cr SAP will provide a report on TDS payable for the deductions made during the month for all locations with a clear segregations under various category of deductions with details such as Voucher reference no, Date of Deduction, Vendor Name, PAN Numbers. TDS will be paid as per the due date. TDS codes will be defaulted in the Invoice from the master data. TDS defaulted can be compared with the Vendor actual invoice. Appropriate action can be taken for the differences, if any. TDS Certificates will be generated and printed through SAP for various categories of services at the year end for all the Vendors. More detailed explanation will be provided during the User testing & User training phase of the Project.
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
53 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
1.TDS related transaction and outstanding liability detail can be derived from the SAP quickly.
2. TDS certificates will be generated from SAP. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
54 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
FB01 / FB50
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
TDS receivable accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
56 of 194
IT CO LOGO
CLIENT LOGO
BPE will avail tax credit of Excise on stock transfer made by XYZ LIMITED for duty paid Bitumen as Job work input. Duty paid on excisable modifier will be availed as input credit. On the finished product Modified Bitumen the excise duty will be paid by BPE. The differential duty will be recovered by BPE from XYZ LIMITED.
The Job Work Processing Charges will be calculated and accounted in the system for individual manufacturing location by multiplying the Job work sale quantity in Metric Tons for the month with the agreed process charges per MT. TDS will be deducted by XYZ LIMITED on job work. The job work qty. information will be available from the SD module. The excise differential workings would be provided by MM. The below mentioned accounting entry will be passed in to the system through SD module:XYZ LIMITED Job work Reimbursible A/c .Dr Job Work Charges A/c ...Cr More detailed explanation will be provided during the User testing & User training phase of the Project.
Potential Gaps:
Job work differential duty calculation will not be done by the system automatically.
57 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Job work related accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
58 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Cenvat credit receivable GL account will be configured. Excise payable GL account will be configured.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 :
59 of 194
IT CO LOGO
CLIENT LOGO
No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Proper accounting treatment will be given in SAP of the Stock transfer. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
60 of 194
IT CO LOGO
CLIENT LOGO
Date :
Potential Gaps:
None
Excise payable GL account will be configured. Expense on stock transfer GL account will be configured.
61 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
Business Benefits
Proper accounting treatment will be given in SAP of the Stock transfer. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
62 of 194
IT CO LOGO
CLIENT LOGO
3.1.26 Accruals
Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.26 Ref. Sr. No. of AS-IS document 3.1.26 Accruals Name of Business Process : General Ledger Accounting Module Finance Version no of document: 2.1 Flow Chart of Business Process :
Process Step
FBS1
IT CO LOGO
CLIENT LOGO
Potential Gaps:
Accrual upload functionality is not available in SAP.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Audit trail of accrual transactions and their Reversal status can be maintained. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
64 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
Process Step
FB60
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
For automatic calculation of foreign exchange gain / loss, Foreign exchange gain/loss account will be configured in the system.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
System will automatically convert the amount in foreign currency in the document to the INR amount. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
66 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
Electronics
Process Step
FB60
Potential Gaps:
None
67 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
68 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB01/FB50
Potential Gaps:
None
69 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
70 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FS10N FBL3N
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
Business Benefits
1. Balance confirmation can be done easily for any accounts. 2. Incorrect entries can be tracked down easily. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
72 of 194
IT CO LOGO
CLIENT LOGO
Process Step
MCBA
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Accounting will be done in SAP in proper manner. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
74 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
MCBA
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
76 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
MCBA
Potential Gaps:
None
77 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
78 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
MCBA
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 :
79 of 194
IT CO LOGO
CLIENT LOGO
No If 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 ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
80 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
MB1A (551 Movement type)
Potential Gaps:
None
Data Interface
81 of 194
IT CO LOGO
CLIENT LOGO
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
82 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
J1IH
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Correct excise duty will be entered in the SAP. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
84 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
Cash Flow statement is not readily available in the SAP systems.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
85 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
86 of 194
IT CO LOGO
CLIENT LOGO
3.1.42 Payroll
Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.1.42 Ref. Sr. No. of AS-IS document 3.1.42 Payroll Name of Business Process : General Ledger Accounting Module Finance Version no of document: 2.1 Flow Chart of Business Process :
The payment entry in SAP will be as mentioned belowSalary BPE Payable A/c. Dr Bank A/c.. Cr If the payments to some of the employees are to be done through system generated cheques, then vendor code will be created for those employees. Payment will be generated for them as per the process explained in section 3.2.2
87 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB01 / FB50
Potential Gaps:
SAP does not provide the functionality of Payroll upload.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Salary will be accounted in to the system along with all the components like TDS, EPF, ESIC etc. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
88 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
Electronics
Process Step
FB01 / FB50
Potential Gaps:
None
89 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No If 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 ) : Output from this business process sent to other functions, ( if any ) :
90 of 194
IT CO LOGO
CLIENT LOGO
Date :
Potential Gaps:
No option in available in SAP to generate the form of return as required by RBI notification giving information of Foreign Direct Investments & Other Investments like Trade Credit..
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
RBI return will be generated through SAP. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
92 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
FBL1N FBL5N
Potential Gaps:
No report is available in SAP which shows the comparison of the item sold by associated concern to any other concern in India with the Item sold to BPE.
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) :
Business Benefits
All the Foreign currency transactions & reports can be viewed through SAP. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics
94 of 194
Signature
IT CO LOGO
CLIENT LOGO
Date :
Process Step
FB01 / FB50 FBL3N
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
96 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB01 / FB50
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Using the sample document functionality repetitive efforts in putting the similar type of data can be avoided. Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
98 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
Electronics
Date :
The data entered in the parked document is available for evaluation. Park document can be deleted using the SAP transaction code FBV0. But once park document is posted, it cannot be deleted. User preparing the Journal voucher entries, Bank payments & Bank receipts entries will have authorization for the Parking the documents only. They will not have the authorization for posting those documents. Postings will be done by the authorized users only.
99 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FV50
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
IT CO LOGO
CLIENT LOGO
None
Business Benefits
Using the park document functionality, the entered data will be saved and while posting the document, there is no need to enter all that data again. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
GL-
Document
split
101 of 194
IT CO LOGO
CLIENT LOGO
Passive Split -During clearing the account assignments of the items to clear are inherited to the clearing line items. Eg during payment Active Split - System splits the documents on the basis of document Splitting Rules Zero Balance indicator - The System creates clearing lines automatically to achieve a split.
Financial accounting document has two views Entry view How a document also appears in the subledger Vendor Invoice Expenses.Dr Pctr01 1000 Expenses.Dr Pctr02 VendorCr 500 1500
General Ledger View How a document appears only in GL view. Vendor Invoice Expenses.Dr Pctr01 1000 Expenses.Dr Pctr02 500 VendorCr Pctr01 1000 VendorCr Pctr02 500 Profit Center is assigned in the Cost center master data. In the above example, the profit center in the line item will be derived through the cost center mentioned in the Expense line item. The Vendor line item will automatically derive the profit center from the expense line item profit center.
102 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Business Benefits
Each of the line item of the document will have the profit center. Profit center wise Balance sheet and Profit & loss can be easily derived through this functionality. Sign-off (Approval) for this document :
103 of 194
IT CO LOGO
CLIENT LOGO
Date :
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
105 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
106 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB1S
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
IT CO LOGO
CLIENT LOGO
None
Business Benefits
GL accounts can be cleared on periodic basis. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
IT CO LOGO
CLIENT LOGO
An accounting entry will be passed in the system by debiting the Bank a/c and crediting the Customer a/c with special GL indicator as follows: Bank clearing A/c ...Dr Customer A/c Cr The Customer a/c will show a credit balance till the delivery of material is made by BPE by way of an invoice. When the supply will be made, the advance cash receipt punched earlier will be adjusted against the invoice delivered. Once the Invoice is entered in to the system through SD module, both the documents (Payment and Invoice document) will be open. Both the open item can be cleared using transaction code F-32. The customer ledger will show the advance receipt document and the Invoice entered subsequently. Once both the items are cleared, the advance receipt document will be updated with the Invoice document number and the Invoice document will be updated in the advance receipt document in the reference field. Customer aging report will also be available from the system.
Process Step
F-29 VA01 VF01 F-32
Potential Gaps:
None
109 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
1. Down payments are identified separately from the normal payment. 2. System prompts the message while entering the Invoice, that down payment is already received. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics
110 of 194
Signature
IT CO LOGO
CLIENT LOGO
Date :
111 of 194
IT CO LOGO
CLIENT LOGO
Process Step
F-28
IT CO LOGO
CLIENT LOGO
F-32 FB1D
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
IT CO LOGO
CLIENT LOGO
Business Benefits
Open Invoice documents can be cleared immediately at the time of posting the incoming payments. After clearing the open item, only the Invoices against which the payment is due can be seen in the system by selection the option open items only in the customer line item report. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
114 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
FD32 FBL3N FBL5N FD10N
Potential Gaps:
1. Interest factor consideration for credit limit check without passing the Interest entry in the system is not possible in the SAP. 2. Before the due date of the bank guarantee, prompt message is not provided by the SAP.
IT CO LOGO
CLIENT LOGO
1. Interest factor consideration for credit limit check without passing the Interest entry in the system is not possible in the SAP. Credit limit has to be checked manually in that case. 2. Development needs to be done to provide the early message of the bank guarantee expiry due date.
defined in standard SAP can be used for Bank Guarantee & Letter of Credit respectively. 2. Alternative GL account is to be configured for Customer.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No
Business Benefits
SAP will always check the Credit limit of the customer before releasing the delivery. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics
116 of 194
Signature
IT CO LOGO
CLIENT LOGO
Process Step
F-28 F-32
Potential Gaps:
None
117 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Customer account will be managed in better way through Bill discounting related postings and clearing of outstanding. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
118 of 194
IT CO LOGO
CLIENT LOGO
Inter
Branch
Receipt
Date :
Process Step
F-28 FB01 / FB50
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
FS10N-GL balance summary FBL5N-Customer line item report FBL1N-Vendor line item report
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Customer will receive the credit even if the payment is received at some other location and net balance of the inter branch adjustment account will always be nil. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
120 of 194
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
Interest will be entered in to the system only when it is received :Customer A/c ...Dr Interest received A/c .Cr Interest calculation can be done for single customer or for all the customer together. Interest rates are time bound i.e. Interest rates are defined in the system with respect to the validity date.
Process Step
FINT
Potential Gaps:
SAP provides the interest calculation output format in the standard format.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
IT CO LOGO
CLIENT LOGO
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
123 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB75 FB01 / FB50 FB65
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
1. Appropriate accounting treatment will be given to the customer & vendor account. 2. Appropriate accounting treatment will be given to the CST. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics
125 of 194
Signature
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
127 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB01 / FB50
Potential Gaps:
None
128 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
129 of 194
IT CO LOGO
CLIENT LOGO
Process Step
FB70
130 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) :
Business Benefits
131 of 194
IT CO LOGO
CLIENT LOGO
Using the hold document functionality, the entered data will be saved and while posting the document, there is no need to enter all that data again. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
Date :
132 of 194
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
discrepancy is resolved, the system removes the block and the invoice becomes free for payment. Since parked documents are not posted in FI, a list of parked documents will be extracted from the system at the end of each accounting period and the relevant expenses accrued. Any variances, which occur during Invoice verification, will result in the following a. b. Debit/Credit to the Stock accounts Debit/Credit to the Price Difference account in case of inadequacy of Stocks
Subsequent Debit note to vendors are adjusted with the original Invoice. A new report will be developed in MM module to provide the information w.r.t Purchase order v/s Invoice qty & value information Please refer MM BBP document for detailed explanation.
Process Step
F-53 F-48 F.13 FB65
Potential Gaps:
Requirements of 145A of IT Act for grossing up of CENVAT, excise duty & VAT
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
134 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Streamlining the process of Invoice booking Adherence to the Purchase Order rates is maintained through the 3 way matching process. Variances if any, get routed to the stock or Price Difference accounts Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
135 of 194
IT CO LOGO
CLIENT LOGO
Enter parameter specification this includes inputs for company codes, vendors etc. to include in the payment run. This also includes the desired posting date, payment methods and date of the next payment run. Creating the payment proposal The system proposes a Listing of invoices for payment which meet the specified parameters. Editing the payment proposal This is a control step in the process wherein the proposal generated by the system is scrutinized by a Supervisor. Editing can take the form of adding or deleting invoices/vendors from the proposal, changing the bank, payment method etc. Executing the payment run and payment media programs The system posts the payments in FI i.e. the individual Vendor accounts and the Bank account is up-dated. The system also
136 of 194
IT CO LOGO
CLIENT LOGO
prints the cheque and remittance advice. Simultaneously the Cheque register is also updated in the system. Down Payment:The down payments (advance payment) will be booked in the system through special GL indicator using the transaction code F-48. Advance/down payment to Vendors is treated as Special G/L transactions in SAP. The Vendor control account in the General Ledger is split into two one for the regular transactions and another for down payments. The control account for Down Payments can be classified as a Current Asset in the Balance Sheet and the normal control account as a Current Liability. All transactions including down payments are posted to the individual vendors accounts; but these transactions are linked to two GL accounts, depending upon the nature of the transaction. The total of the Vendor sub-ledger balances will agree with the total of the two control accounts in the GL. Down payments can either be made manually or automatically. A down payment request has to be created in the system if they have to be automatically included in the payment run. No accounting entries are generated in FI whenever a Down payment request is posted in the system. After the proposed payment is authorized, it can be converted into an actual payment at which point accounting entries are posted. When the invoice received from the Vendor is entered, the system displays a message that a down payment has been made to the vendor. The user has to then decide whether to adjust the down payment against the current invoice or not. If the down payment is set-off against the invoice value, the net amount of the invoice is included in the subsequent payment run. Advance payment clearing:The down payment with the invoice can be cleared directly when payment is made. The payment program clears by subtracting the down payment amount from the corresponding invoice amounts and paying the difference. The program clears the down payment automatically. If the payment to Vendor is only partial, then both the Invoice document & the partial payment document will be open till the further payment is done. The Vendor Ledger/Statement will be generated through the SAP system showing the details of all the Invoices & payment made. A register for total cheques (lot) received from the respective banks, utilisations and unused cheques in hand will be generated through the SAP system. Cheque register is automatically updated through every cheque payment entry. Void cheque is also automatically updated in the cheque register and is shown separately. Cheques will be printed automatically on the predefined stationary.
Process Step
F-47 F-48
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
138 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Bulk printing of cheques through the system Automatic selection of Invoices by the system based on user defined criteria like Vendor codes, due dates amount or date limits etc. Alternate payees can be used in case if the cheques are to be printed in the name of a vendor other than the main vendor. Alternative payee is defined in the vendor master data. Priorities of banks in the Payment Run can be specified so that the appropriate bank gets selected.
Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
IT CO LOGO
CLIENT LOGO
Ref. Sr. No. of AS-IS document 3.3.3 Bank Guarantee from Vendors Name of Business Process : Accounts Payable Module Finance Submodule
Vendors
AP-
Bank
Guarantee
from
Date :
Potential Gaps:
System prompt is not available for the Bank guarantee expiry notification.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
140 of 194
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
Sr. No of To-BE document 3.3.4 Ref. Sr. No. of AS-IS document 3.1.39 Letter of Credit Name of Business Process : Accounts Payable Module Finance Version no of document: 2.1 Flow Chart of Business Process :
Process Step
F-53
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 :
142 of 194
IT CO LOGO
CLIENT LOGO
No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
IT CO LOGO
CLIENT LOGO
Sr. No of To-BE document 3.3.5 Ref. Sr. No. of AS-IS document 3.3.5 Payment against Document Name of Business Process : Accounts Payable Module Finance Submodule AP- Payment against Document Version no of document: 2.1 Date : Flow Chart of Business Process :
Process Step
F-53 F-44 F110
Potential Gaps:
LC Authorisation letter with the serial number is not available in SAP.
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Effective Audit trail of the Bills of exchange liability to Bank. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
145 of 194
IT CO LOGO
CLIENT LOGO
Process Step
F-53 F-28
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
147 of 194
IT CO LOGO
CLIENT LOGO
Date :
Potential Gaps:
None
148 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
149 of 194
IT CO LOGO
CLIENT LOGO
Date :
Process Step
F-53
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
151 of 194
IT CO LOGO
CLIENT LOGO
Date :
IT CO LOGO
CLIENT LOGO
according to the GL account maintained in the customization. Whenever the Foreign currency items are paid off, the gain/loss is booked in to the realized gain/loss account maintained in the configuration. The exchange rate is maintained in the exchange rate table on the monthly basis as per the rates published by the RBI. The balance in the customer accounts at the end of each month will be revaluated using SAP standard program and gain/loss on foreign exchange valuation will be accounted accordingly. The revaluation entry will be reversed at the start of the next month since the revaluation is done just for the month end reporting. This process is continued until the balance is cleared. On clearance of the balance actual gain/loss will be booked into the system. The payment to vendors will be done through the procedure explained in the process 3.3.2-Payment process.
Process Step
F.05 F-53
Potential Gaps:
Separate GL accounts for the exchange gain/loss on the capital purchases should be available from the system
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
153 of 194
IT CO LOGO
CLIENT LOGO
154 of 194
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
Bank clearing A/c..Cr. On receipt of the bank statement or on the Bank upload, as the case may be following entry is passed:Bank clearing A/c..Dr. Bank A/c...Cr. Basic Custom duty & cess thereon is added to the Inventory cost through condition types in purchase order in the Material Management module. Similarly CHA charges and port expenses are added to the inventory. The detail of CHA charges & port expenses will be available through respective GL accounts. Detailed process is explained in the MM BBP document. More detailed explanation will be provided during the User testing & User training phase of the Project.
Process Step
F-53 F-41
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
156 of 194
IT CO LOGO
CLIENT LOGO
157 of 194
IT CO LOGO
CLIENT LOGO
3.3.12 Service Vendor Payments:Business Blueprint Document For SAP R/3 Implementation at BPE Date : Sr. No of To-BE document 3.3.12 Ref. Sr. No. of AS-IS document 3.3.12 Service Vendor Payments Name of Business Process : Accounts Payable Module Finance Submodule AP- Service Vendor Payments Version no of document: 2.1 Date : Flow Chart of Business Process :
The process will be as under: The contract will be created with freight vendor with validity. This would be quantity contract. Service order will be created against contract Purchase order will be placed on vendor for material. Inbound delivery will be created. Shipment document will be created after goods receipt against inbound delivery. The goods receipt will be automatically posted. The shipment cost document will be created. The service PO will be entered. Service entry sheet will get automatically created against service order as per the price maintained in condition record. Transporter vendors payment will be processed against service entry sheet. Material Inventory Valuation:
158 of 194
IT CO LOGO
CLIENT LOGO
Freight, will be defined as condition type and will be part of Pricing procedure to be used for material procurement. The price will be copied from the same price condition record used to calculate Freight cost . There will be three types of payment process which need to be maintained for the transporter in the System. 1. Per Kilometer / Per Ton 2. Per Metric Tone 3. Per Truck Full Load In case of BPE arranging the transporter for delivering material to their customer, system will automatically copy the price from the price master and the same price will be transferred to the purchase order for transporter payment. In case of price change, if service order is settled with old rate, a separate debit/credit memo will be accounted through FI module. In case of loss of material in transit, the transporter is debited for the loss of material and at the same time the customer will get credit with the amount which is derived by proportionate the total invoice value. The invoice submitted by the Transporter would be matched & knocked off with the system number and then the payment is released. Applicable TDS would be deducted while releasing the payment. The other service vendor payments like security, CFA, contract labour etc would be done as per the process explained in earlier business process. The procedures of Quantity tracking, shortages, revision of the prices are covered in MM & SD BBP documents. For detailed explanation on the transportation functionality, please refer the MM & SD BBP document. More detailed explanation will be provided during the User testing & User training phase of the Project.
Process Step
F-43 F-53 F110
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Accounting will be done in SAP in proper way. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
160 of 194
IT CO LOGO
CLIENT LOGO
Process Step
F-53 FB01 / FB50 FB65
161 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
162 of 194
IT CO LOGO
CLIENT LOGO
Date :
Since blocking is a manual process, there is no control to prevent an inadvertent/deliberate omission. Parking an invoice is the same as logging the invoice in the system. It does not create any accounting entries, however, but all parked documents are visible in the system. It is preferable to block the invoices when parking them, to prevent accidental posting of un-approved invoices. After parking, the invoices can be sent to the relevant managers for approval. When the invoices are received back after approval, an authorized employee can remove the block and post the invoices. At month-end, a listing of Parked invoices needs to be extracted and necessary accruals made for expenses covered by these invoices Please refer MM BBP document for detailed explanation.
Process Step
FB60 F-48 F-53
IT CO LOGO
CLIENT LOGO
F.13
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Streamlining the process of Invoice booking Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
164 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
Electronics
Date :
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Credit memos can be linked to the original vendor invoice. At the time of payment, the net outstanding will be paid-off. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
166 of 194
IT CO LOGO
CLIENT LOGO
At the time of Invoice GR/IR account is debited with the credit to Vendor Account. An Automatic Clearing Program should be executed periodically to set-off the matching debits and credits in the GR/IR account. The open items in the account will then represent either of the following: Invoice posted, but goods not received- For BPE this is not applicable, as Invoice is entered only after GR. Goods received, but invoice not posted. Goods received and invoice posted; but there is a discrepancy between the two. Invoices paid, but goods not received- For BPE this is not applicable, as Invoice is entered only after GR. A GR/IR account represents a Provision made in the books in respect of goods received pending receipt of Vendor Invoices. The liability gets created soon after posting a goods receipt transaction in the MM Module. It gets nullified when the Vendor Invoice is booked against the Purchase Order. The GR/IR accounts are credited no sooner a Goods receipt is entered by the MM personnel. A corresponding debit to the GR/IR account will be generated during Invoice verification. At the year-end, a program needs to be executed so as to clear the open Debit and Credit balances.
Potential Gaps:
None
167 of 194
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
No need to make any provision at the month-end in respect of goods received pending receipt of invoices. This entry is automatically generated by the system. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics
168 of 194
Signature
IT CO LOGO
CLIENT LOGO
Process Step
F-40 FBW6
169 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Sign-off (Approval) for this document : Name of Team member Organisation/Bus. Unit Signature
170 of 194
IT CO LOGO
CLIENT LOGO
M Harikrishna
Electronics
General Requirements/Expectations Description While entering the Vendor Invoice directly through FI , you may be interrupted, or you may not have all the data you need for entering a document, functionality should be available in SAP to store the entered data in SAP, without giving the financial impact. Detailed Process Description, Process Variations and Exceptions In this case, you can temporarily save the data you have entered, and then continue with the document entry at a later time. If you want the system to hold a document, it does not have to be complete. Account balances are not updated and the document data is not available for evaluation. A document number is not assigned.
Potential Gaps:
None
171 of 194
IT CO LOGO
CLIENT LOGO
Reports required related to business process Outputs required for this business process
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) :
Business Benefits
Using the hold document functionality, the entered data will be saved and while posting the document, there is no need to enter all that data again. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
172 of 194
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
Direct capitalization refers to asset acquisitions that do not have an asset under construction phase. Instead, they are capitalized and begin depreciation immediately. For example: -External Asset Acquisitions through FI -Processing Asset Acquisitions in Purchasing (FI-AA/MM) -Account assignment to an Internal Order -Account assignment to a clearing account, and transfer from this account to the final asset. An external asset acquisition is a business transaction resulting from the acquisition of an asset from a business partner (in contrast to an acquisition from in-house production). The blocking indicator can be indicated in the asset master record. Once the blocking indicator is set, one can no longer post acquisitions to this asset. The idea behind this, for example, is to prevent future postings to an asset under construction once the project is complete. Subsequent capitalization will be done through separate AUC order. Block can be set at the internal order level also. If the Internal order is blocked, then no further acquisition can be booked to that order, until block is removed. Low value assets will be defined in the system. Low value assets will not be capitalized and will be expensed in the year of purchase. Spares procured to stock can be accounted in two ways:1. If material master is created for the spares then spares will be issued from Inventory to Internal order. 2. If material master is not created for the spares, then it will be directly debited to the internal order. Fixed asset register is updated automatically on each asset postings. Existing Asset Tag number for respective Assets will be captured in the system for easy identification with the legacy system. All the Capital Procurements & Capital Projects will be identified by an AR number. Hence the series for the same would be external numbering.
Process Step
F-90 AIBU ABUMN
Potential Gaps:
As per the Income tax rule, the exchange gain/loss on sale of asset should be capitalized and the corresponding effect should be given to the Asset block.
IT CO LOGO
CLIENT LOGO
added to the Asset block in the report so that ready information will be available in SAP for Income tax reporting.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Asset acquisition will be properly identified and accounted as AUC or direct capitalization. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics
175 of 194
Signature
IT CO LOGO
CLIENT LOGO
176 of 194
IT CO LOGO
CLIENT LOGO
IT CO LOGO
CLIENT LOGO
If the Asset is acquired during the year, then depreciation will be calculated as per the depreciation start date mentioned in the asset master data. On addition to the existing asset also, the depreciation will be calculated as per the depreciation start date mentioned in the asset master data. On sale/disposal of the asset, appropriate depreciation effect will be given by the system and gain/loss will be booked accordingly. A new report will be developed to provide the depreciation as per the Block concept of Income Tax.
Process Step
AFAB
Potential Gaps:
SAP does not provide the depreciation report as per the Income Tax act Block concept.
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
IT CO LOGO
CLIENT LOGO
Business Benefits
Procedure for Calculation of depreciation is automated Simulation of Depreciation into future periods can be made
Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Electronics Limited Signature
179 of 194
IT CO LOGO
CLIENT LOGO
An asset was created in the wrong asset class. Split up an asset or move part of an asset (transfer from asset to asset). Settle an asset under construction and transfer it to a finished asset.
Asset transfer will be done in SAP using the transaction code ABUMN (transfer within company code). Excise Invoice for transfer of asset will be prepared through MM module. Cost Center will be updated in the Asset master data. The Invoice carries the Excise Duty for the specified Asset which is the reversal of initial credit availed (on transferred Asset) less 2.5% per quarter. The Excise Duty so paid by the sending location is claimed as Input tax credit by the receiving location. Once the Asset is received by the receiving location, the Asset register is updated with the adjustment accommodating the movement of the Asset and the transfer of Gross Block of Assets and Accumulated Depreciation at the date of transfer in the books of accounts of the respective Locations. Physical verification of the Asset will be done as per the process explained in the section 3.4.5 More detailed explanation will be provided during the User testing & User training phase of the Project.
Process Step
ABUMN
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Proper treatment in the books of accounts will be given for asset transfer. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
181 of 194
IT CO LOGO
CLIENT LOGO
The Capital Profit or Loss arising due to the retirement of an Asset is automatically calculated and Posted by the system. Asset can be retired with revenue (T code F-92) or without revenue (T. Code ABAVN). On asset retirement, appropriate entry will be passed for the depreciation and loss or gain on sale/scrap of asset will be booked. Asset will be scraped in case of theft or loss due to natural calamity. Gain/Loss on sale of asset will be booked as per the Companies Act only Calculation as per the Income tax will be done separately in the report developed as per the Income tax act rules.
Process Step
F-92 ABAVN
Potential Gaps:
None
IT CO LOGO
CLIENT LOGO
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
Business Benefits
Profit/Loss on retirement of an asset is automatically calculated by the system Flexibility for Complete/Partial Retirement and single/Mass disposals Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
183 of 194
IT CO LOGO
CLIENT LOGO
Date :
Potential Gaps:
Only Fixed asset register is available in the system, which will display the asset detail along with value as per the books. There is no separate report for tagging the assets as per the books against the physical assets.
184 of 194
IT CO LOGO
CLIENT LOGO
Business Benefits
Through new report the assets as per the books can be compared against the physical assets and appropriate action can be taken for the differences. Sign-off (Approval) for this document : Name of Team member M Harikrishna Organisation/Bus. Unit Bull Power Limited Electronics Signature
185 of 194
IT CO LOGO
CLIENT LOGO
186 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
187 of 194
IT CO LOGO
CLIENT LOGO
188 of 194
IT CO LOGO
CLIENT LOGO
2. Posting Accruals or Provisions entries at month end 3. Complete all postings related to expense booking, payments, stock transfer, inter office adjustments, Job work, Hospitality, Interest from customers, Taxes, Contingent liability etc. 3. Managing the GR/IR Account-Run the GR/IR Automatic Clearing 4. Foreign Currency Open Item Revaluation-Revalue Open Items in GL ,AR & AP 5. Maintain Exchange Rates 6. Reclassify Payables and Receivables if necessary 7. Run the Depreciation Calculation 8. Transfer of Prepaid expenses to Expenses 9. Calculation of XYZ LIMITED marketing compensation 10.Calulation of Income tax, FBT & Deferred Tax 11. Remittance of Dividends 12. Run Financial Statement Version-Balance Sheet and Profit & Loss reports 13. Open Next Financial year period 14. Fiscal Year Change of Asset Accounting 15. Carry forward the balances to next year of General Ledger (Balance sheet items), Customers, Vendors & Assets, Transfer of P&L balances to retained earning. 16.Maintenance of number range for the next year Below mentioned month end activities/reports will also be done:1.Physical verification of report 2.Cash verification 3.Cash flow statement 4.Related party transaction disclosures
189 of 194
IT CO LOGO
CLIENT LOGO
5. Bank Reconciliation 6.Customer/Vendor reconciliation 7.Proof sheets 8. Statutory returns 9. Tax movement related reports All the details for Schedule VI requirements like Capex Commitments, Contingent Liabilities, Earnings in Foreign Currency, Expenditure in Foreign Currency etc will be provided by SAP.
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
190 of 194
IT CO LOGO
CLIENT LOGO
191 of 194
IT CO LOGO
CLIENT LOGO
2. Posting Accruals or Provisions entries at month end 3. Complete all postings related to expense booking, payments, stock transfer, inter office adjustments, Job work, Hospitality, Interest from customers, Taxes, Contingent liability , transfer of prepaid exp. 3. Managing the GR/IR Account-Run the GR/IR Automatic Clearing 4. Foreign Currency Open Item Revaluation-Revalue Open Items in GL ,AR & AP 5. Maintain Exchange Rates 6. Reclassify Payables and Receivables if necessary 7. Run the Depreciation Calculation 8.Transfer of Prepaid expenses to Expenses 9. Run the Bank Reconciliation 10 Run Financial Statement Version-Balance Sheet and Profit & Loss reports 11. Open Next posting period Below mentioned month end activities/reports will also be done:1.Physical verification of report 2.Cash verification 3.Cash flow statement 4.Related party transaction disclosures 5. Bank Reconciliation 6.Customer/Vendor reconciliation 7.Proof sheets 8. Statutory returns 9. Tax movement related reports 10. Colas Monthly Income Statement 11. Colas B1 & B2 Budgeting 12. Manufacturing Report for COLAS 13. COLAS investment Budget 14. Activity Report All the details for Schedule VI requirements like Capex Commitments, Contingent Liabilities, Earnings
192 of 194
IT CO LOGO
CLIENT LOGO
Potential Gaps:
None
Data Interface
Whether data records of current business process would be transferred to system other than SAP R/3 : No Inputs/ data received from other function for this process, ( if any ) : Output from this business process sent to other functions, ( if any ) :
193 of 194
IT CO LOGO
CLIENT LOGO
194 of 194