G CONNECT

Process Code
BBP_CO_001_02
Business Blueprint Process Owner: Mr. Anil Jhajharia
Core Team Member: Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Controlling Business Blue Print Document
CO()*%+(T*A, Page 1 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Document change control
version document name date author reviewed by
01 Con#roll"ng 20.0&.2010 Ch"nma!a B"swal
02 Con#roll"ng 0&.0'.2010 Ch"nma!a B"swal
CO()*%+(T*A, Page 2 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Contents
Business blueprint overview...........................................................................................6
1. Sap controlling overview.........................................................................................7
2. Controlling area....................................................................................................8
3. Profit centers.......................................................................................................8
. Cost element accounting.......................................................................................12
4.1. Process overview............................................................................................................ 12
!. Cost center accounting.........................................................................................14
5.1. Process overview............................................................................................................ 15
5.2. Cost centre master......................................................................................................... 16
5.3. Cost center creation....................................................................................................... 17
5.4. Cost center categories.................................................................................................... 17
5.5. Cost centre planning....................................................................................................... 17
". #nternal orders...................................................................................................22
$. Profit center accounting........................................................................................27
7.1. Profit center assignment................................................................................................. 27
7.2. Profit center numbering.................................................................................................. 29
%. Product costing...................................................................................................32
8.1. Process overview............................................................................................................ 32
8.2. Standard cost estimates................................................................................................. 33
8.3. Cost components............................................................................................................ 33
8.4. Costing wit production orders....................................................................................... 36
8.5. Settlement of production orders..................................................................................... 38
&. Profitability analysis.............................................................................................46
CO()*%+(T*A, Page 1 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
1'. (aps............................................................................................................. 49
11. Sign)off..........................................................................................................50
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G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
*n#roduc#"on
2u#a ower "n-ras#ruc#ure l"m"#ed "s an es#abl"shed name "n #he manu-ac#ur"ng
o- conduc#ors and cables. An *3O /001:2000 cer#"-"ed coman"es4 2P*, o5er #he -"5e
decades4 #hrough "#s s#r"ngen# 6ual"#! con#rol4 cus#omer sa#"s-ac#"on and d"5ers"-"ed roduc#
m"7 has reached a grow#h o#en#"al e7ceed"ng rs.800 cores "n #he !ear 20009200/.
*#s gamu# o- roduc#s "ncludes o5erhead conduc#or4 h#:"# ower cables4 con#rol
cables4 "ns#rumen#a#"on cables4 m"n"ng cables4 and sec"al cable and P3C oles. 2P*, has
crea#ed "#s own +PC d"5"s"on -or rural elec#r"-"ca#"on wor; under B"ju 2ram"n <!o#"
=ojana and Raj"5 2andh" $"d!u#" >aran =ojana "n remo#e areas o- Or"ssa #hereb! add"ng #o
#he "n-ras#ruc#ure de5elomen# o- #he s#a#e.
*n order #o handle cus#omer da#abase and ach"e5e e--ec#"5e sales 2P*, broadl! class"-"ed
#he"r cus#omer as go5ernmen# and nongo5ernmen# organ"?a#"ons. go5ernmen# organ"?a#"on
"ncludes ubl"c sec#or coman"es l";e ower gr"d corora#"on o- *nd"a4 s#a#e elec#r"cal
boards and nongo5ernmen# organ"?a#"on "ncludes r"5a#e sec#or coman"es4 dealers e#c.
2P*, has major sales -rom go5ernmen# organ"?a#"on #rough #ender rocess"ng4 -ur#her sales
class"-"ed "n #o domes#"c sale4 e7or# sale4 -ree o- charge del"5er!4 re#urns4 cred"#:deb"#
memo. A -ur#her e7or# sale "s segrega#ed as deemed e7or#4 d"rec# e7or#4 e7or# #hrough
#h"rd ar#! @ e7or# under c#1.
CO()*%+(T*A, Page & o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Business blueprint overview
Th"s documen# summar"?es #he -"nd"ngs o- #he >P*T consul#"ng #eam and 2P*, #eam4 w"#h
resec#s #o sa rocesses #o be "mlemen#ed a# 2P*,.
The "n-orma#"on was ga#hered #hrough documen#s4 lan# 5"s"#s4 and d"scuss"on w"#h core
#eam members.
The urose o- bus"ness bluer"n# documen# "s #o reare #o mo5e -orward w"#h #he
"mlemen#a#"on o- 2P*,As sa r:1 s!s#em. A# #he conclus"on o- #he bluer"n#4 #he >P*T
consul#an#s w"ll de#erm"ne #he sa -unc#"onal"#! re6u"red #o run #he 2P*, bus"ness.
The bluer"n# resen#s a summar"?ed ersec#"5e o- all -unc#"onal bus"ness rocesses #ha#
w"ll be "mlemen#ed. As such4 #he bluer"n# documen# w"ll ser5e 9 -rom #h"s o"n# -orward
#he dual role o- bo#h o--"c"al rojec# scoe as well as s!s#em acce#ance cr"#er"a.
The bod! o- #h"s documen# descr"bes #he organ"?a#"onal s#ruc#ure4 mas#er da#a4
re6u"remen#s g"5en b! 2P*, and r:1 -unc#"onal rocess -lows #o be "mlemen#ed.
The bluer"n# re"#era#es #he r:1 organ"?a#"onal s#ruc#ures #ha# ha5e been "den#"-"ed and
w"ll ser5e as #he bas"s -or #he "n"#"al con-"gura#"on ac#"5"#"es.
The "n-orma#"on ga#hered and documen#ed "n #he bluer"n# "s su--"c"en# -or #he #eam #o go
-orward "n#o #he real"?a#"on hase. Bowe5er4 "# "s cr"#"cal #ha# bo#h #he >P*T and 2P*, #eam
agree on #he scoe o- #he rojec# as resen#ed "n #h"s documen#. Acce#ance 9 b! bo#h
#eams 9 "s re6u"red #o mo5e #he rojec# "n#o #he ne7# hase.
CO()*%+(T*A, Page ' o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
1. Sap controlling overview
Th"s cha#er br"e-l! descr"bes #he os# sa "mlemen#a#"on scenar"o a# 2P*,. *# broadl!
ou#l"nes #he ma"ng and changes o- #he e7"s#"ng rocesses4 wh"ch need #o be e7ecu#ed #o
ensure more e--"c"en#4 e--ec#"5e and s#reaml"ned rocesses. 3ome o- #he changes
recommended are dr"5en b! sa4 wh"le some o- #he changes are an e--or# #owards a
"ns#"#u#"onal"?"ng #he rocess or -or be##er con#rol.
Con#roll"ng CcoD con#a"ns all accoun#"ng -unc#"ons necessar! -or e--ec#"5e con#roll"ng. *- an
organ"?a#"on d"5"des accoun#"ng "n#o "n#ernal and e7#ernal 5"ewo"n#s4 co reresen#s #he
"n#ernal accoun#"ng ersec#"5e4 because "# ro5"des "n-orma#"on -or managersE 9#hose who
are "ns"de an organ"?a#"on and are charged w"#h d"rec#"ng and con#roll"ng "#s oera#"ons. Co
"ncludes cos# and re5enue accoun#"ng.
Co r"mar"l! d"5"des #he en#"re rocess "n#o #hree bas"c areas:
*verhead cost controlling 9 ro5"des #ools #o answer #he 6ues#"on how do we
control our overhead costs+
Product cost controlling 9 ro5"des #ools #o answer #he 6ues#"on what is the
manufacturing cost of a product+
Profitability management 9 ro5"des #ools #o answer #he 6ues#"on how profitable
are individual mar,et segments+
These #hree rocesses are closel! l"n;ed and hel "n ro5"d"ng comrehens"5e manager"al
accoun#"ng "n-orma#"on w"#hou# be"ng l"m"#ed #o legal re6u"remen#s.
The organ"?a#"on and loca#"on s#ruc#ure o- 2P*, needs #o be maed #o #he organ"?a#"on
en#"#"es "n sa r:1.
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G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
2. Controlling area
A con#roll"ng area "s an organ"?a#"onal un"# w"#h"n co module. *# "s used -or cos# accoun#"ng.
*# "s w"#h"n #he con#roll"ng area #ha# cos# cen#er h"erarch"es "s de-"ned and cos# cen#ers are
ass"gned #o #hese. A con#roll"ng area ma! be ass"gned #o one coman! or #oo man!
coman"es. *- !ou ass"gn a con#roll"ng area #o man! coman"es #hen !ou can do cross9
coman! cos# accoun#"ng.
Bowe5er4 each coman! mus# ha5e #he same currenc! "n order #o be able #o do cross
coman! cos# accoun#"ng and also same -"scal 5ar"an# C".e. same accoun#"ng er"odD.
Fha# are #he ;e! dec"d"ng -ac#orsG
Cos# accoun#"ng me#hod4 "n5en#or! 5alua#"on4 cos# cen#er s#ruc#ure "s d"--eren#
across legal en#"#"es.
char# o- accoun# and -"scal !ear 5ar"an#
3. Profit centers
Pro-"# cen#er "s an organ"?a#"onal un"# "n accoun#"ng #ha# re-lec#s a managemen#9or"en#ed
s#ruc#ure o- #he organ"?a#"on -or #he urose o- "n#ernal con#rol. The ma"n d"s#"nc#"on
be#ween a ro-"# cen#er and cos# cen#er "s #ha#4 #!"call!4 cos# cen#ers w"ll ha5e onl! cos#
comonen#sH ro-"# cen#ers ha5e re5enue as well as cos# comonen#s. Thus reor#"ng can
done a# ro-"# cen#er le5el "n l"ne #he coman!Es P@, accoun#. The ro-"# cen#er grou
reor#s w"ll also reresen# #he lan# le5el P@, a:c. ro-"# cen#ers are crea#ed under a
con#roll"ng area. Cos# cen#ers are l"n;ed #o ro-"# cen#ers. +n#r"es "n a ro-"# cen#er and
coman! code are der"5ed #hrough #he l"n; #o cos# cen#er. An en#r! os#ed #o a cos# cen#er
w"ll au#oma#"call! ge# dul"ca#ed "n ro-"# cen#er "- ro-"# cen#er "s a##ached #o a cos#
cen#er.
Fha# are #he ;e! dec"d"ng -ac#orsG
ro-"# and loss accoun# and cer#a"n balance shee# "#ems -or e7amle s#oc;s4
rece"5ables4 a!ables and asse#s are #o be reor#ed -or managemen# reor#"ng as well as
segmen#al reor#"ng as er #he as.
CO()*%+(T*A, Page 0 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010

(P#- e.pectations/ re0uirements from controlling module1
Ac#ual cos# o- "n5en#or! a# each s#age "n roduc#"on. e7amle ac#ual cos# o-
conduc#or:cable "n w"re draw"ng s#age4 s#rand"ng s#age4 "nsula#"on s#age4 armor"ng s#age4
shee#"ng s#age4 re -"n"sh"ng s#age4 e#c.
Manu-ac#ur"ng cos# o- conduc#or and cable.
*den#"-"ca#"on o- dear#men# w"se labor cos#4 -ac#or! o5erheads4 adm"n"s#ra#"on
o5erheads4 sell"ng and d"s#r"bu#"on o5erheads. Con#rol o5er #hese cos#s b! wa! o- -ormal
lann"ng and budge#ar! con#rol s!s#em.
*den#"-"ca#"on o- ma#er"al4 labor 5ar"ances a# each s#age "n roduc#"on rocess
comared #o s#andards and -"7"ng u #he resons"b"l"#! and accoun#ab"l"#! a# each le5el.
cus#omer w"se4 d"5"s"on w"se ro-"#ab"l"#!4 mach"ne w"se ro-"#ab"l"#!
seara#e cos# "den#"-"ca#"on o- cer#a"n e7enses such as #elehone4 5eh"cles4
"nsurance cla"ms4 "nd"genous o- ma#er"als
seara#e "den#"-"ca#"on o- ma"n#enance cos#
Reconc"l"a#"on o- ro-"#:loss as er -"nanc"al accoun#s and as er cos# accoun#s.
Produc# cos#"ng "s re6u"red seara#el! -or #he #enders -or 6uo#"ng #he r"ce.
Pro-"#ab"l"#! anal!s"s reor# "s re6u"red b! #a;"ng "n #o cons"dera#"on o- sales orders
"n hand and also re6u"red a reor# b! #a;"ng "n#o cons"dera#"on o- -u#ure orders ".e.
e7ec#ed orders.
CO()*%+(T*A, Page / o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3.1. *rgani2ational Structure
CO()*%+(T*A, Page 10 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
CO()*%+(T*A, Page 11 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
. Cost element accounting
.1. Process overview
Cos# elemen# accoun#"ng class"-"es #he cos#s and re5enues #ha# are os#ed #o co4 and
ro5"des #he caab"l"#! -or reconc"l"a#"on o- cos#s "n co w"#h #he -"nanc"al accoun#"ng C)*D
module.
3aster data
Cost elements
A cos# elemen# descr"bes #he na#ure o- cos#. *# ser5es #he -ollow"ng uroses:
Pr"mar! cos# elemen#s are 2, accoun#s4 wh"ch would re6u"re a comulsor! cos#
objec# whene5er #hese accoun#s are cred"#ed or deb"#ed.
The cos# cen#er : "n#ernal order #ransac#"ons shall be anal!?ed cos# elemen# w"se.
3econdar! cos# elemen#s are used -or alloca#"ons and se##lemen#s. These are no#
reresen#ed b! 2, accoun#s "n )*. Based on #he #!e o- ac#"5"#! alloca#"ons4 #he
secondar! cos# elemen#s shall be se# u a-#er #he alloca#"on log"c "s -"nal"?ed.
2P*, has -"nal"?ed r"mar! cos# elemen#s w"#h #he )* re6u"remen#s -or ensur"ng #ha# #he
cos# brea; u as re6u"red -or cos#"ng as well as reor#"ng re6u"remen#s could be ob#a"ned
#hrough #he 2, "#sel-. These ha5e been segrega#ed "n#o d"rec# o5erheads4 -ac#or!
o5erheads4 adm"n"s#ra#"5e4 sell"ng and d"s#r"bu#"on o5erheads so #ha# #hese could be os#ed
#o #he rele5an# cos# cen#ers -or o5erhead cos#s reor#"ng.
Cost element groups
Cos# elemen# grous can ser5e 5ar"ous uroses. )or e7amle4 #he! can be used #o crea#e
reor#s or #o rocess se5eral cos# elemen#s "n one bus"ness #ransac#"on.
CO()*%+(T*A, Page 12 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
The cos# elemen#s are groued "n#o
Consum#"on
%"rec# rojec# e7enses
)ac#or! o5erheads
Adm"n"s#ra#"on o5erheads
3ales and d"s#r"bu#"on o5erheads
Re5enue
Cost element creation
Cos# elemen# "s crea#ed "n a con#roll"ng area
Cos# elemen#s are #"me deendan# da#a. *n"#"al cos# elemen#s w"ll be crea#ed 5al"d
-rom 01.0..200/
The au#hor"?a#"on -or crea#"ng and chang"ng #he cos# elemen# mas#er shall be w"#h
#he accoun#s @ cos#"ng dear#men# a# head o--"ce
Cos# elemen# code w"ll be e7#ernall! ass"gned dur"ng crea#"on
Cos# elemen# ca#egor"es
Pr"mar! cos# elemen#s ha5e been class"-"ed "n#o #he -ollow"ng ca#egor"es: 9
Pr"mar! cos#s 9 os#"ngs -rom )*
Accrual I ro5"s"ons "n co
3ales re5enue I os#"ngs -rom 3% #o ro-"#ab"l"#! anal!s"s
3ales deduc#"on 9 os#"ngs -rom 3% #o ro-"#ab"l"#! anal!s"s
3econdar! cos# elemen#s ha5e been class"-"ed "n#o #he -ollow"ng ca#egor"es: 9
Assessmen# I alloca#"ons -rom cos# cen#ers #o cos# cen#ers
*n#ernal se##lemen# 9 alloca#"ons -rom "n#ernal orders #o cos# cen#ers
*n#ernal ac#"5"#! alloca#"on I d"rec# alloca#"ons -rom cos# cen#ers #o roduc#
O5erhead I "nd"rec# alloca#"ons -rom cos# cen#ers #o roduc#
CO()*%+(T*A, Page 11 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
!. Cost center accounting
Organisational Structure
or Cost Center
CO()*%+(T*A, Page 1. o- ./
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G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
!.1. Process overview
Con#roll"ng ro5"des cos# "n-orma#"on -or managemen# dec"s"on9ma;"ng. *# -ac"l"#a#es
coord"na#"on4 mon"#or"ng and o#"m"?a#"on o- all rocesses "n an organ"?a#"on. Th"s "n5ol5es
record"ng bo#h #he consum#"on o- roduc#"on -ac#ors and #he ser5"ces ro5"ded b! an
organ"?a#"on.
As well as documen#"ng ac#ual e5en#s4 #he ma"n #as; o- con#roll"ng "s lann"ng. $ar"ances
w"ll be reor#ed b! comar"ng ac#ual da#a w"#h lan da#a.
Pr"mar! #as;s re6u"red -or cos# cen#er accoun#"ng "nclude:
Ma"n#a"n"ng cos# cen#er4 cos# elemen#4 and ac#"5"#! #!e mas#er da#a
Plann"ng dear#men#al and area cos#s b! cos# elemen# and cos# cen#er
Process"ng alloca#"ons o- cos#s b! means o- assessmen#s4 d"s#r"bu#"ons4 and
o5erhead cos# calcula#"ons
Mon"#or"ng lan 5ersus ac#ual cos# e7end"#ures
Cos# cen#ers and a cos# cen#er s#ruc#ure w"ll be crea#ed #o sa#"s-! #he dear#men#al
and organ"?a#"on s#ruc#ure o- #he coman!. (umerous cos# cen#er grous w"ll be
de-"ned
Au#oma#ed ro-"# cen#er os#"ngs
3#andard sa ro-"# @ loss reor#"ng
3#andard sa reor#s w"ll mee# 2P*, reor#"ng re6u"remen#s
The cos# cen#er accoun#"ng comonen# Cco9m"ca9ccaD #rac;s where cos#s occur "n #he
organ"?a#"on. The cos# cen#er "s an organ"?a#"onal un"# "n a con#roll"ng area. Cos# cen#ers
can be de-"ned -or each low9le5el organ"?a#"onal un"# #ha# has resons"b"l"#! -or manag"ng
cos#s. As cos#s are "ncurred4 #he! are ass"gned or os#ed #o #he aror"a#e cos# cen#er.
CO()*%+(T*A, Page 1& o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3aster data
!.2. Cost centre master
A cos# cen#re reresen#s #he loca#"on o- cos# occurrence. *# can be se# u based on
-unc#"on4 geograh"cal loca#"on4 area o- resons"b"l"#!4 ac#"5"#"es : ser5"ce ro5"ded or
alloca#"on cr"#er"a.
The cos# cen#re s#ruc#ure should ser5e #he -ollow"ng uroses:
All reor#"ng re6u"remen#s wh"ch re6u"re cos#s #o be d"sla!ed seara#el! -or a
dear#men#: -unc#"on.
all alloca#"on re6u"remen#s #ha# re6u"re cos#s #o be "den#"-"ed seara#el! and u# "n
seara#e buc;e#s such #ha# #he! could be d"rec#l! "c;ed u -or d"--eren# bas"s o-
alloca#"on
The s#andard h"erarch! "s #he organ"?a#"on s#ruc#ure -rom #he cos# con#roll"ng o"n#
o- 5"ew.
The cos# cen#er h"erarch! "s class"-"ed "n#o: 9
Produc#"on
Ma"n#enance
Ma#er"als
Jual"#!
,og"s#"cs
Projec#s
CO()*%+(T*A, Page 1' o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
!.3. Cost center creation
Cos# cen#er "s crea#ed "n a con#roll"ng area and ass"gned #o a coman! code. *n"#"al cos#
cen#ers w"ll be crea#ed 5al"d -rom 01.0..200/.#he au#hor"?a#"on -or crea#"ng #he cos# cen#er
mas#er shall be w"#h #he cos#"ng dear#men#. Cos# cen#er code w"ll be e7#ernall! ass"gned
a# #he #"me o- crea#"on. +ach cos# cen#er w"ll be a##ached #o one ro-"# cen#er.
!.. Cost center categories
Cos# cen#ers ha5e been class"-"ed "n#o #he -ollow"ng ca#egor"es: 9
A adm"n"s#ra#"on
B branches
C e7ecu#"5e
% -"nance and accoun#s
+ log"s#"cs
) ma"n#enance
2 mar;e#"ng @ sales
B ma#er"als
* rea"rs
< roduc#"on
> rojec#
, 6ual"#! assurance
!.!. Cost centre planning
The objec#"5e o- o5erhead lann"ng: 9
Cos# con#rol #hrough 5ar"ance anal!s"s
Calcula#"on o- roduc# cos# -or lann"ng urose
CO()*%+(T*A, Page 18 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Comu#a#"on o- #he budge#ed ro-"#ab"l"#!
A# resen#4 2P*, does no# ha5e -ormal budge#ar! con#rol s!s#em. Fe are recommend"ng #he
-ollow"ng s#es -or o5erhead cos# lann"ng: 9
14 5ctivity Planning
The ac#"5"#"es o- roduc#"on cos# cen#ers such as labor hours and mach"ne hours w"ll be
lanned a# #he beg"nn"ng o- #he !ear based on #he roduc#"on lan. The lanned ac#"5"#! -or
labor and mach"ne w"ll be en#ered manuall! "n #he s!s#em.
24 Cost Planning
The "nd"5"dual cos# cen#ers mus# lan #he cos# #o be "ncurred b! #hem -or #he lann"ng
er"od. Cos#s "nclude #he labor cos#4 -ac#or! o5erheads4 adm"n"s#ra#"on o5erheads4 sell"ng
and d"s#r"bu#"on o5erheads. The ac#ual o5erheads w"ll be comared w"#h #he lan #o
calcula#e #he 5ar"ance.
The lann"ng e7erc"se w"ll be carr"ed ou# a# #he beg"nn"ng o- e5er! !ear.
34 6ormula Planning
,abor cos# w"ll be lanned -or cos# cen#er based on #he a5erage labor cos# -or each
ca#egor! o- emlo!ee.
4 5llocation *f Planned Costs
The lanned o5erheads are alloca#ed #o #he roduc#"on cos# cen#ers. Alloca#"ons "nclude
r"mar! cos# alloca#"ons 5"?. d"s#r"bu#"on and secondar! cos# alloca#"ons 5"?. assessmen#s.
!4 Planned 5ctivity Price Calculation
The oera#"ng ra#e "s calcula#ed based on #he lanned labor cos# and mach"ne cos#. Th"s
labor ra#e and mach"ne ra#e "s used "n roduc# cos# lann"ng #o arr"5e a# #he lanned cos#
o- roduc#"on.
Primary postings
CO()*%+(T*A, Page 10 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Fhen #he ac#ual e7ense "s accoun#ed "n #he -" module4 #he cos#s are s"mul#aneousl!
uda#ed -rom #he con#roll"ng ersec#"5e. *n case o- derec"a#"on #he asse# "s ass"gned #o a
cos# cen#er and derec"a#"on "s deb"#ed #o "# a# #he er"od end.
CO()*%+(T*A, Page 1/ o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3anage cost center accounting
CO()*%+(T*A, Page 20 o- ./
Begin
Process
Maintain
Cost centers
Master Data
Maintain
Activity types
codes/Rates
Master Data
Maintain Cost
center/Cost
element plan
values
Receive
Postings
from Other
Modules
!
!
Correct
miscoded
epenses
!nd
Process
Maintain
Cost
!lements
Primary/"ec
ondary
Maintain
Assessmen
t Cycles
"econdary
Maintain
Distri#ution
Cycles
Perio
d
!nd
Closi
ng
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3aintain cost center master
data
Crea#e cos# cen#er4 change4
d"sla! 4 dele#e 4d"sla!
change
>3014 >3024 >3014 >30.4
>30&
Cost center master Data
hierarchy
Diplay/3entanance
Crea#e s#andard h"erarch!4
d"sla!
O>+O(
3aintain cost element
master data
Crea#e4change4d"sla!4
dele#e4d"sla! change
documen#s
>,014 >,024 >,014 >,0.4
>,0&
3aintain assessment cycles Crea#e ac#ual assessmen#
c!cle
3_A,R_0800&8.2
3aintain distribution cycles Crea#e ac#ual d"s#r"bu#"on
c!cle
3_A,R_0800&8&8
3aintain cost center/cost
element plan values
Change cos# elemen#
:ac#"5"#! "nu# lann"ng4
d"sla!
>P0'4 >P08
CO()*%+(T*A, Page 21 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
". #nternal orders
Process overview
*n#ernal orders are cos# objec#s w"#h"n sa #he urose o- wh"ch "s #o ac# as a cos# collec#or
#o collec# cos#s and anal!?e #hem aga"ns# a budge#. The cos#s can #hen ul#"ma#el! be
se##led #o ano#her cos# objec#4 a g:l accoun#4 e#c.4 deend"ng uon #he bus"ness rocess
re6u"remen#.
2P*, w"ll be us"ng "n#ernal orders as cos# collec#ors -or #he -ollow"ng bus"ness rocesses.
Ca"#al "n5es#men#s
Mar;e#"ng and sales
Re rojec#s
$eh"cles
O#her
3#andard sa reor#s w"ll mee# 2P*, reor#"ng re6u"remen#s
An "n#ernal order "s an e7#remel! -le7"ble co #ool #ha# can be used -or a w"de 5ar"e#! o-
uroses #o #rac; cos#s w"#h"n a con#roll"ng area. *n#ernal orders ro5"de caab"l"#"es -or
lann"ng4 mon"#or"ng4 and alloca#"on o- cos#s.
Cos#s are budge#ed -or each e5en# : ac#"5"#! and a5a"lab"l"#! chec; w"ll be ac#"5a#ed. Ac#"5e
a5a"lab"l"#! con#rol means #ha# #he s!s#em re5en#s #he os#"ng o- #ransac#"ons #ha# e7ceed
#he budge#.
Broadl! #he "n#ernal orders w"ll be class"-"ed "n#o
Ca"#al "n5es#men#s
Telehone
$eh"cles
Re rojec#s
CO()*%+(T*A, Page 22 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Ca"#al e7enses order w"ll be crea#ed as Ks#a#"s#"calL #o con#rol #he ca"#al budge#s.
$eh"cles 9 seara#e orders w"ll be crea#ed -or each 5eh"cle where"n #he en#"re 5eh"cle
rela#ed cos# would be accumula#ed.
Telehones 9 seara#e orders w"ll be crea#ed -or #elehones where"n #he mon#hl! e7ense
could be os#ed.
The #o#al cos# o- #elehones and 5eh"cles on accoun# o- #he abo5e can be accessed b!
crea#"ng "n#ernal order grous.
Planning
A# #he !ear beg"nn"ng #he "n#ernal orders -or 5eh"cles and #elehone w"ll be crea#ed and
#he lanned cos# -or #he !ear w"ll be en#ered. Budge# a5a"lab"l"#! con#rol w"ll no# be used.
Settlement of internal order
A# #he er"od end #he cos# collec#ed "n #he "n#ernal orders w"ll be se##led #o #he cos#
cen#er.
Decisions1
All loca#"ons w"ll use "n#ernal orders.
All ca"#al urchases and "n5es#men#s w"ll be made us"ng "n#ernal orders #o allow
budge#"ng4 use o- a5a"lab"l"#! con#rol #o a5o"d an! o5erruns on ca"#al rojec#s
Plan#4 ro-"# cen#er @ -unc#"onal area w"ll be re6u"red #o be en#ered when crea#"ng
an "n#ernal order
Release rocedure ma#r"7 -or ca"#al urchases w"ll be "mlemen#ed "n ma#er"als
managemen# -or aror"a#e aro5al le5els
)or "n5es#men# orders4 asse# under cons#ruc#"on w"ll be crea#ed -rom #he "n#ernal
order when a new "n#ernal order "s crea#ed
)ollow"ng "n#ernal order #!es w"ll be crea#ed "n #he s!s#em:
Ca"#al "n5es#men#s
Mar;e#"ng and sales
CO()*%+(T*A, Page 21 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
O#her o5erhead
Re rojec#s
$eh"cles
Ma"n#enance wor;
Re rojec#s w"ll be con-"gured #o allow os#"ng o- re5enues #o #he "n#ernal order
AMC w"ll be ma"n#a"ned #hrough "n#ernal order on Nca"#al "n5es#men#E order.
(umber ranges are ma"n#a"ned a# "n#ernal order #!es4 and w"ll be commun"ca#ed
#o accoun#"ng BPOs. Recommenda#"on on number ranges -or "n#ernal orders -rom
accoun#"ng BPOs I "- number ranges could s#ar# w"#h same number as cos# cen#er ca#egor!.
*n#ernal order numbers w"ll be "n#ernall! genera#ed b! #he s!s#em C "n#ernal
number ass"gnmen#D
AMC clear"ng accoun# w"ll be used -or cos#s collec#"ons on "n#ernal orders. Par#"al
se##lemen# -rom "n#ernal orders #o AMCs w"ll clear AMC clear"ng accoun# CP@, accoun#D.
3e##lemen# rules can be ma"n#a"ned "n ercen#ages or amoun#. )ull : -"nal se##lemen# rules
w"ll be ma"n#a"ned on "n#ernal orders #o mo5e AMCs #o -"7ed asse#s -rom one or mul#"le
asse# classes.
AMC clear"ng accoun# w"ll be de-aul#ed on urchase re6u"s"#"on : urchase order
l"ne "#ems based on accoun# ass"gnmen# -or "n#ernal order.
)ollow"ng 5al"da#"on rules w"ll be bu"l# around "n#ernal order : urchase re6u"s"#"ons
Curchase ordersD:
(o#e:
*- "n#ernal order used on urchase re6u"s"#"on CorderD "s Nca"#al "n5es#men#E order
#!e4 #hen onl! NAMC clear"ng accoun#E w"ll be used on accoun# ass"gnmen#
*- "n#ernal order used on urchase re6u"s"#"on CorderD "s no# Nca"#al "n5es#men#E
order #!e4 #hen NAMC clear"ng accoun#E canno# be used on accoun# ass"gnmen#.
CO()*%+(T*A, Page 2. o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3anagement of internal orders flow
7o

8es

CO()*%+(T*A, Page 2& o- ./
Beg"n Process
Crea#e *n#ernal
Order
(ormal
Or
3#a#"s#"
cal
Crea#e
3e##lemen#
Rules
+n#er
Plan:Budge#
$er"-! da#a
@
Release
Commun"ca
#e #ha#
order "s
released
Pos# Ac#"5"#"es #o
*n#ernal Orders
$ours//O$
Re5"ew Cos#s
On *n#ernal
Orders
!
!
3e##le *n#ernal
Orders
+7ecu#e
*n#ernal Order
Reor#s
Close
Comle#ed
*nternal
Orders
+nd
Process
%nternal
Order
Reports
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3anagement of internal orders description
*n#ernal order Crea#e "n#ernal order >O01
*n#ernal order Change4 d"sla!4 lann"ng
cos# elemen#s:ac#"5"#! "nu#
change
>O024 >O014 >P)'
*n#ernal order +n#er budge#s -or "n#ernal
order
>O22
Ac#"5"#! alloca#"on +n#er d"rec# ac#"5"#!
alloca#"on
>B21(
Ac#"5"#! alloca#"on %"sla! ac#ual cos# l"ne
"#ems -or orders
>OB1
$ar"ance Orders ac#ual:lan:5ar"ance 3_A,R_08012//1
Ac#ual alloca#"on Orders: ac#ual l"ne "#ems >OB1
$ar"ance Budge#:ac#ual:comm"#men#s 3_A,R_0801101/
*n#ernal order Change "n#ernal order >O02
CO()*%+(T*A, Page 2' o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
$. Profit center accounting
Process overview
Pro-"# cen#ers are areas o- resons"b"l"#! w"#h"n a coman! -or re5enues and e7enses4 as
well as cer#a"n asse#s and l"ab"l"#"es "n some cases. All ro-"# cen#ers are arranged "n#o a
s#andard h"erarch! reresen#"ng #he en#"re organ"?a#"on.
A# #he end o- each mon#h4 #he ro-"# and loss s#a#emen# @ balance shee# are reor#ed -or
#he segmen#s as er #he segmen#al reor#"ng.
$.1. Profit center assignment
Pro-"# cen#er "s no# en#ered dur"ng e7enses and re5enue #ransac#"on "# "s alwa!s der"5ed
-rom #he co objec#s such as cos# cen#er4 roduc#"on order.
Standard sap reports will meet (P#- reporting re0uirements
A ro-"# cen#er "s an organ"?a#"onal un"# "n -"nanc"al accoun#"ng #ha# re-lec#s a managemen#9
or"en#ed s#ruc#ure o- #he organ"?a#"on -or #he urose o- "n#ernal con#rol. Pro-"# cen#ers are
organ"?ed "n a s#andard h"erarch!H howe5er4 al#erna#"5e h"erarch"es can be es#abl"shed -or
reor#"ng urose.
2P*, w"ll ha5e ro-"# cen#ers based on re6u"remen#s -or P@, and B@3 s#a#emen#s. +ach
coman! w"ll ha5e #he"r own s#ruc#ure o- ro-"# cen#ers wh"ch w"ll -ollow #he s#andard
nam"ng con5en#"ons.
2P*, w"ll oula#e segmen# as a re6u"red -"eld4 so #ha# reor#"ng b! segmen#s w"ll also be
oss"ble.
2P*, w"ll ge# #he ro-"# and loss s#a#emen# a# #he ro-"# cen#er le5el. Comle#e
balance shee#s w"ll also be a5a"lable -or each ro-"# cen#er.
2P*, w"ll use documen# sl"##"ng -unc#"onal"#! #o der"5e ro-"# cen#ers when os#"ng
-"nanc"al documen#s #o crea#e comle#e -"nanc"al s#a#emen#s a# #he ro-"# cen#er
le5el
CO()*%+(T*A, Page 28 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
$.2. Profit center numbering
2P*, has dec"ded #o crea#e and name ro-"# cen#ers b! a comb"na#"on o- lan# loca#"on and
#he roduc# l"ne. Please re-er #o #he Norgan"?a#"on s#ruc#ureE sec#"on #o see #he ro-"#
cen#er h"erarch! -or 2P*,. )ollow"ng ro-"# cen#er number"ng con5en#"on has been used:
BARM(+*: CAB11
BARM(+*: CO(11
>A3B*PMR: CAB12
>A3B*PMR: CO(12
2MMMA%*PM(%*: CAB11
2MMMA%*PM(%*: CO(11
RMRA, +,+CTR*)*CAT*O(: R+1.
CO()*%+(T*A, Page 20 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3anage profit center accounting process flow



>e! dec"s"ons:
2P*, w"ll be us"ng "n#egra#ed PCA w"#h new general ledger
Cable
Conduc#or
CO()*%+(T*A, Page 2/ o- ./
Begin
Process
Ma"n#a"n
Pro-"# cen#er
Mas#er da#a
Plan cos# @
Re5enue
$alues
Mon#h +nd
Close
Ma"n#a"n
3ubs#"#u#"on Rules
CMa"n#a"n MM:CO
o5err"desD
Rece"5e
Pos#"ngs
-rom O#her
Modules
Planned
Cos#
+lemen#
Mload
CBudge#D
!nd
Process
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
ro-"# cen#er crea#e ro-"# cen#er grou >CB1
Pro-"# cen#er Pro-"# cen#er d"sla! 4 >CB'(
Pro-"# cen#er Crea#e ro-"# cen#er4
change 4d"sla! 4dele#e
>+&14 >+&24 >+&14 >+&.
Pro-"# cen#er Change s#andard h"erarch! >CB&(
Pro-"# cen#er Change lan cos#s:re5enue4
d"sla!
8>+14 8>+2
Pro-"# cen#er Trans-er lan da#a #o PCA 1>+0
Pro-"# cen#er Change >+&2
CO()*%+(T*A, Page 10 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
%. Product costing
%.1. Process overview
Produc# cos#"ng module "n sa allows crea#"on and e7ecu#"on o- roduc# cos# es#"ma#es
based on arame#ers and mas#er da#a objec#s -rom ma#er"als managemen#4 roduc#"on
lann"ng4 and con#roll"ng modules o- sa.
The s#andard cos# es#"ma#e a##em#s #o calcula#e #he cos# o- goods manu-ac#ured or cos# o-
goods sold us"ng #he 6uan#"#! s#ruc#ure and 5alua#"on s#ruc#ure w"#h"n #he r:1 s!s#em and
uda#es #he s#andard r"ce o- #he roduc# "n #he ma#er"al mas#er. The s!s#em uses a cos#"ng
5ar"an#4 wh"ch 'holds #he arame#ers o- how #he roduc# "s #o be cos#ed and uda#ed.
The s!s#em shows d"--eren# 5"ews o- #he cos# sl"# us"ng #he cos# comonen# s#ruc#ure and
"#em"?a#"on 5"ews.
The roduc# cos# can be bro;en u "n#o #he -ollow"ng comonen#s:
%"rec# ma#er"al
%"rec# labor
+7#ernal rocess"ng Co5D
)"7ed o5erheads C"ncludes -"7ed o5erheads and derec"a#"on o5erheadsD
$ar"able o5erheads
3#andard cos# es#"ma#e based on #he re6u"remen#s "s r"mar"l! "n l"ne w"#h #he 2P*,
con-"gura#"on. All ma#er"als regardless o- whe#her manu-ac#ured "n house or rocured
e7#ernall! w"ll be 5alued a# s#andard. )u#ure cos# es#"ma#es w"ll be rolled ou# once "n
e5er! !ear re5alu"ng #he"r s#andards.
Curren# rocess
3#andard sa reor#s w"ll mee# 2P*, reor#"ng re6u"remen#s
The roduc# cos#"ng w"ll co5er #he -ollow"ng bus"ness rocesses:
CO()*%+(T*A, Page 11 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
For;"ng ou# cos# es#"ma#es based on s#andard b"ll o- ma#er"al and rou#"ngs -or
conduc#ors and cables.
wor;"ng ou# #he cos# o- "n#ermed"ar! and -"n"shed roduc#s
F*P 5alua#"on
*n-orma#"on Re6u"remen#s
%.2. Standard cost estimates
The s#andard cos# es#"ma#es shall be used -or #he -ollow"ng uroses:9
$alua#"on o- -"n"shed roduc#s #"ll "# "s re5alua#ed based on ac#ual cos#s.
+ach roduc# shall ha5e a b"ll o- ma#er"al : rou#"ng wh"ch shall con#a"n #he s#andard
ma#er"al re6u"remen# and rocess -or roduc#"on o- a s#andard 6uan#"#!.
As re6u"red4 #he s!s#em shall ro5"de mul#"le cos#"ng runs on #he bas"s o- #he
selec#"on o- al#erna#"5e b"ll o- ma#er"al : rou#"ngs w"#hou# an! re-erence #o an!
sec"-"c roduc#"on order.
3#andard cos# es#"ma#es w"ll be calcula#ed a# #he beg"nn"ng o- #he !ear -or all #he sem"
-"n"shed and -"n"shed ma#er"al. The s#andard cos# es#"ma#es w"ll be re5"sed e5er! !ear.
The lo# s"?e -or s#andard cos# calcula#"ons w"ll be dec"ded dur"ng real"?a#"on hase.
%.3. Cost components
9aw material cost
The BOM con#a"ns #he s#andard ma#er"al -or manu-ac#ur"ng an "n#ermed"a#e or -"n"shed
roduc#. The RM ra#es w"ll be ma"n#a"ned "n lanned r"ce 1 "n ma#er"al mas#er -or
calcula#"on o- 3T% ma#er"al cos#.
9aw material costing for imported material
CO()*%+(T*A, Page 12 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
*n case o- "mor#ed ma#er"al raw ma#er"al cos#"ng w"ll be carr"ed ou#4 #he urchas"ng "n-o
records w"ll be used #o arr"5e a# #he RM r"ce.
-abor cost
,abor cos# based on #he lanned ac#"5"#! ra#es and s#d. hours -rom oera#"ons. The wor;
cen#ers "n roduc#"on are maed w"#h #he cos# cen#er "n con#roll"ng -or charg"ng #he labor
cos#.
+7amle o- wor; cen#er and cos# cen#er ass"gnmen#
,abor cos# "ncludes cos#s such as
Fages 9 bas"c : %A
Casual wages
Bonus
+79 gra#"a a!men#
3alar"es 9 bas"c : %A
2ra#u"#!
Bouse ren# allowance
,ea5e salar!
,ea5e #ra5el ass"s#ance
3ec"al allowance
P.-. +m con#
P.-. Ad charges
3achine cost
Mach"ne cos# w"ll be calcula#ed based on #he lanned ac#"5"#! ra#es and s#d. hours -rom
oera#"ons -or conduc#ors and cables.
The -ollow"ng cos# w"ll be cons"dered -or calcula#"on o- mach"ne cos# "n cos# cen#er
lann"ng.
+lec#r"c charges 9 lan#
CO()*%+(T*A, Page 11 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
)uel4 o"l and gas
%erec"a#"on
,"cense -ees
Direct overheads
%"rec# o5erheads w"ll be charged #o roduc# based on #he lanned ercen#age o- ma#er"al
consum#"on.
%"rec# o5erheads "nclude cos#s such as:
+lec#r"c"#! charges 9 -ac#or!
)uel 4 o"l and gas
6actory overheads
)ac#or! o5erheads w"ll be charged #o roduc# based on #he lanned ercen#age o- ma#er"al
cos# and labor cos#. The ercen#age w"ll be arr"5ed ou#s"de sa s!s#em and w"ll be en#ered
"n sa.
)ac#or! o5erheads "nclude cos#s such as:
,ab #es#"ng charges
Tes# charges 9 #h"rd ar#! "nsec#"on
Rea"rs @ ma"n#enance 9 @ m
*nsec#"on 9 -"n"shed goods
*nsec#"on 9 raw ma#er"als : s#ores
%erec"a#"on9 ma#er"al handl"ng e6u"men#
:he percentage will be arrived outside sap system and will be entered in sap
5dministration overheads
Adm"n"s#ra#"on o5erheads w"ll be charged onl! -"nal roduc# based on #he lanned
ercen#age o- ma#er"al cos#.
CO()*%+(T*A, Page 1. o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
:he percentage will be arrived outside sap system and will be entered in sap.
%.. Costing with production orders
3eara#e roduc#"on order w"ll be crea#ed -or each -"n"shed and "n#ermed"a#e s#oc;.
*n#ermed"ar! s#oc; re-ers #o s#oc; #ha# has been roduced and "s ma"n#a"ned "n s#oc; -or
use "n ano#her rocess.
Planned costing of production orders
Fhen #he roduc#"on order "s released4 #he lanned cos# "s calcula#ed as -ollows:9
cost component 0uantity rate value
Ma#er"al 3#andard BOM lanned r"ce -rom ma#er"al
mas#er Clanned 1D
6uan#"#! 7 ra#e
,abour cos# 3#andard ac#"5"#"es "n
rou#"ng
lanned ac#"5"#! r"ce 6uan#"#! 7 ra#e
Mach"ne cos# 3#andard ac#"5"#"es "n
rou#"ng
lanned ac#"5"#! r"ce 6uan#"#! 7 ra#e
%"rec# o5erheads (A lanned ercen#age ra#es Cma#er"al
consum#"onD7
lanned O
)ac#or! o5erheads (A lanned ercen#age ra#es ma#er"al P labour
cos# 7 lanned O
Adm"n"s#ra#"on
o5erheads
(A lanned ercen#age ra#es ma#er"al cos# 7
lanned O
The lanned cos#s w"ll be a5a"lable -or comar"son w"#h #he ac#ual cos#s "n #he roduc#"on
order.
5ctual cost in production orders
CO()*%+(T*A, Page 1& o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3aterial cost
The ma#er"al cos#s are calcula#ed s"mul#aneous w"#h #he sho -loor ac#"5"#"es. *n case o-
conduc#ors:cables manu-ac#ur"ng #he s#andard 6uan#"#! o- ma#er"al w"ll be con-"rmed "n
roduc#"on order. C3T% 6#!QmaD w"ll be charged #o roduc#"on order. #he d"--erence
be#ween #he h!s"cal 6uan#"#! and boo; 6uan#"#! w"ll be charged #o Nh!s"cal 5er"-"ca#"on
d"--erence accoun# N or "# w"ll be "ssued #o cos# objec# and d"s#r"bu#ed #o roduc#"on orders
"n roor#"on #o #arge# 6#! o- ma#er"al consumed
-abor cost
3T% labor hours w"ll be con-"rmed "n all #he roduc#"on orders. The labor cos# Clanned ra#e
Q 3T% hoursD w"ll be charged #o roduc#"on order
3achine cost
*n case o- conduc#or:cable roduc#"on order4 3T% mach"ne hours w"ll be con-"rmed. The
mach"ne cos# Clanned ra#e Q 3T% hoursD w"ll be charged #o roduc#"on order.
Direct overheads; factory overheads; administration overheads
Per"od"call! #he ac#ual o5erheads w"ll be calcula#ed -or #he roduc#"on order based on #he
lanned ercen#age. The roduc#"on order w"ll be deb"#ed w"#h o5erheads and #he
o5erhead cos# cen#er w"ll be cred"#ed.
<aluation of finished production
On comle#"on o- roduc#"on4 #he same shall be del"5ered #o s#oc;. The s!s#em shall
uda#e #he 6uan#"#"es o- #he -"n"shed roduc# a# #he 3T% ra#e -rom #he ma#er"al mas#er.
=or, in process
All #he roduc#"on orders w"ll be comle#ed a# #he er"od end. The F*P w"ll be calcula#ed
onl! "n case o- roduc#"on orders where "n #he s#a#us "s Kar#"al comle#eL ".e. "n case o-
m"ss"ng ar#s.
CO()*%+(T*A, Page 1' o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
The F*P w"ll be os#ed "n )" based on #he ac#ual cos# boo;ed "n #he order a# #he er"od
end.
<ariance calculation
$ar"ance calcula#"on ro5"des !ou w"#h #he "n-orma#"on #o #a;e s#es #o "mro5e !our cos#
s"#ua#"on.
$ar"ances are calcula#ed onl! on comle#"on o- #he roduc#"on order. There-ore #he
roduc#"on orders mus# be comle#ed a# #he er"od end. The 5ar"ance ".e. ac#ual cos#
collec#ed "n roduc#"on order and s#d cos# o- roduc# w"ll be #rans-erred #o r"ce d"--erence
accoun# "n )* and ro-"#ab"l"#! anal!s"s "n co.
%.!. Settlement of production orders
All #he roduc#"on orders w"ll be se##led a# #he er"od end. The 5ar"ance w"ll be #rans-erred
#o co9a and #he d"--erence be#ween #he ac#ual cos# and s#andard cos# w"ll be #rans-erred
#o Kr"ce d"--erence accoun#L #he con#ra en#r! w"ll be shown "n Kchange "n s#oc; accoun#L
5ctual costing
%ur"ng se##lemen# a# #he mon#h end4 #he s!s#em shall de#erm"ne #he s#oc; on hand and
accord"ngl! uda#e s#oc; 5alues. The balance amoun# er#a"n"ng #o -"n"sh goods s#oc; #ha#
has alread! been sold shall be deb"#ed #o a seara#e r"ce d"--erence accoun#. Th"s r"ce
d"--erence accoun# would be al"ed -or "n#ermed"ar! roduc#s also4 and #here-ore4 #he
cos#"ng o- #he -"n"shed roduc# con#a"n"ng #he "n#ermed"ar! s#oc; "s re5alued. The "n5en#or!
w"ll be deb"#ed :cred"#ed and #he Kr"ce d"--erence accoun#L w"ll be %r: Cr. accord"ngl!.
Summari2ed analysis of production orders
The ac#ual roduc#"on orders need #o be summar"?ed a# #he end o- #he er"od. The
summar"?a#"on shall be -or a lan# : ma#er"al comb"na#"on. The "n-orma#"on re6u"red "s #he
ac#ual cos# and #he 5ar"ance anal!s"s.
>ighlights
CO()*%+(T*A, Page 18 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Raw ma#er"als are 5alued a# s#andard ra#e due #o () me#al r"c"ng.
*n9house manu-ac#ured "n#ermed"ar! and -"n"shed goods are 5alued a# s#andard ra#e
w"#h er"od"c 5alua#"on o- ac#ual cos#.
,abor cos# a# lanned ra#e
%"rec#4 -ac#or!4 adm"n"s#ra#"on o5erheads a# lanned ercen#age der"5ed ou#s"de
sa s!s#em.
Product Cost Planning ? @stimating 6low



CO()*%+(T*A, Page 10 o- ./
Begin
Process
Crea#e
@
Ma"n#a"n
BOMEs
Crea#e
@
Ma"n#a"n
Rou#"ngs
Mar; Cos#
+s#"ma#es
Ma"n#a"n
Ac#"5"#!
@ O5erhead
Ra#es
Crea#e Cos#
+s#"ma#es
Release
Cos#
+s#"ma#es
!nd Process
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Product Cost Planning ? @stimating 6low
cost planning ma"n#a"n ac#"5"#! ra#es >P2'
cos# es#"ma#e crea#e cos# es#"ma#e C>11(
cos#"ng run ed"# cos#"ng run C>.0(
cos#"ng run mar; cos# es#"ma#es C>2.
cos#"ng run release cos# es#"ma#es C>2.
3onth @nd Process A 3:* ? 3:S Production *rders
3onth @nd Process A 3:* Sales *rders
CO()*%+(T*A, Page 1/ o- ./
3#ar#
Change
F*P
3e##lemen
# Per"od
Calcula#e
@
Pos# F*P
Calcula#e
$ar"ances -or
Produc#"on
Orders
3e##le
Produc#"on
Orders
+nd
3#ar#
Change F*P
3e##lemen#
Per"od
Calcula#e
@
Pos# F*P @ Resul#s
Anal!s"s
3e##le 3ales
Orders
+nd
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
3onth @nd Close
Mon#h end wor; "n rocess Change and se# #he er"od
con#rol -or wor; "n rocess
>>AO
Mon#h end wor; "n rocess Calcula#e @ os# F*P -or
roduc#"on orders.
>>AO
Mon#h end wor; "n rocess Calcula#e 5ar"ances on
roduc#"on orders
>>31
3e##le roduc#"on 3e##le roduc#"on orders CO00
Calcula#e @ os# F*P Calcula#e @ os# F*P -or
sales orders
>>A>
3e##le sales 3e##le sales orders $A00
Mon#h end wor; "n rocess Change and se# #he er"od
con#rol -or wor; "n rocess
>>A0
Mon#h end wor; "n rocess Calcula#e @ os# F*P -or
roduc# cos# collec#ors
>>3&
Mon#h end wor; "n rocess Calcula#e 5ar"ances on
roduc# cos# collec#ors
CO00
Bey 6actors1
The 5alua#"on 5ar"an# #o crea#e cos# es#"ma#es w"ll -"rs# loo; a# #he lanned r"ce 1
-"eld "n #he cos#"ng 2 5"ew o- ma#er"al mas#er4 #hen #he urchase "n-o record when
calcula#"ng new s#andards -or raw ma#er"als.
3#andard cos#s o- sem"9-"n"shed and -"n"shed ma#er"als w"ll be calcula#ed b!
e7lod"ng #he BOM and #he rou#"ng -or #he ma#er"al
O5erhead w"ll be al"ed us"ng cos#"ng shee#.
)ollow"ng ac#"5"#! #!es w"ll be crea#ed "n #he s!s#em:
3e#u
Mach"ne
CO()*%+(T*A, Page .0 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
,abor
Ac#"5"#! ra#es -or cos# cen#ers w"ll be calcula#ed ou#s"de and ma"n#a"ned manuall!
"n #he s!s#em
3#andard cos#"ng 5ar"an# #o calcula#e #he s#andard cos# #o release and 5alua#e #he
"n5en#or!
Curren# cos#"ng 5ar"an# #o calcula#e #he curren# s#andard cos# #o uda#e #he
lanned r"ce or #a7 r"ce -"eld "n #he ma#er"al mas#er
Comb"na#"on o- ac#ual "ssues and bac; -lush"ng w"ll be used -or ca#ur"ng ma#er"al
consum#"on on roduc#"on orders
,abor hours con-"rma#"ons 9 s#andard hours Ccould be bac; -lushed -rom rou#"ngsD
-or all 2P*, loca#"ons.
2P*, w"ll u#"l"?e cos# objec# con#roll"ng w"#h roduc#"on orders w"#h comle#e
rocesses con-"gured -or wor; "n rocess calcula#"ons4 5ar"ance anal!s"s and
se##lemen#s.
$ar"ance calcula#"ons : se##lemen#s w"ll be scheduled #o run e5er! wee; -or
anal!s"s
F*P calcula#"ons : se##lemen#s w"ll be carr"ed ou# wee;l!:mon#hl!
All roduc#"on 5ar"ances w"ll be anal!?ed and se##led #o ro-"#ab"l"#! anal!s"s
MR21 Cmanual r"ce changesD #ransac#"on access w"ll be res#r"c#ed
Crecommenda#"on "s no# #o use mr21 #ransac#"onD. All ma#er"al s#andard r"ces w"ll
be based on s#andard cos# rollu.
CO()*%+(T*A, Page .1 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
:ender price
Juo#a#"on r"ce w"ll be dec"ded based on #he cos#"ng and subm"#s #he #ender.
Pr"ce "n 6uo#a#"on "s ;e! -ac#or "n #ender rocess"ng4 2P*, re-ers #he -ollow"ng
o"n#s wh"le dec"d"ng #he 6uo#a#"on r"ce:
Raw ma#er"al r"ce
Con5ers"on cos#
)re"gh#
)"nanc"al cos# CB2 and o#hersD
Ad5ances Cw"#h "n#eres# or w"#hou# "n#eres#D
%el"5er! er"od
B"d 5al"d"#!
Mode o- a!men# C,C or d"rec#D
(o o- da!s -or a!men# collec#"on
O#her adm"n"s#ra#"5e cos#
(o#e: reor# "s re6u"red ha5"ng all #he abo5e "n-orma#"on -or #a;"ng #he dec"s"on on 6uo#e
r"ce.
Price1 firm/variable
)ollow"ng are #he "n-luen#"al -ac#ors "n #a;"ng dec"s"on abou# #he r"ce e7ec#ed #o be
6uo#ed "n #he #ender -or 5ar"able order.
Base da#e
Pr"ce o- raw ma#er"al
*n#eres# on RM C-rom )2 hold"ng da#e #o a!men# collec#"onD.
Par#!Es a!men# collec#"on #"me. C#erms o- a!men#9-or calcula#"on o- "n#eres# on
raw ma#er"alD
CO()*%+(T*A, Page .2 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
)or s"gh# ,C4 "n#eres# on raw ma#er"al "s ?ero and -or Msance ,C4 "n#eres# charges
are deend"ng on #erms and cond"#"ons.
Pa!men# #erms C,C or d"rec#D
*- "# "s ,C Msance ,C or s"gh# ,C
Msance ,C4 #hen wha# "s er"od C '0 da!s or /0 da!sD
Fho w"ll bear ad5anceG
)"nanc"al cos# I ban; guaran#ee cos#
Ad5ance "s g"5en w"#h "n#eres# or w"#hou# "n#eres#.
3ecur"#! deos"# I ban; guaran#ee I oen"ng -ee4 "n#eres#
Comm"ss"on "- 2P*, need #o g"5e.
%el"5er! er"od
Aar# -rom abo5e -ac#ors o#her -ac#ors need #o judge area as -ollows
A. O#her rosec#"5e come#"#or r"ce -or #ha# same or s"m"lar ma#er"al.
B. ,as# #ender r"ce -or same "#em an!where "n *nd"a.
C. ,as# #ender -or #ha# same roduc# or s"m"lar roduc# o- #ha# ar#"cular
cus#omer:des#"na#"on.
3"m"larl! -or #ender bus"ness under -"rm order all abo5e "ssues should be #a;en "n #o
cons"dera#"on e7ce# base da#e. 3"nce #he bus"ness 2P*, "s go"ng #o ge# "s -or -"rm order
r"ce 5ar"ance does no# comes "n #o "c#ure hence base da#e "s no# re6u"red.
Bowe5er del"5er! er"od and 5al"d"#! should be re-erred wh"le #a;"ng dec"s"on on r"ce.
)ollow"ng are #he "n-luen#"al -ac#ors "n #a;"ng dec"s"on abou# #he r"ce e7ec#ed #o be
6uo#ed "n #he #ender -or -"rm order.
Pr"ce o- raw ma#er"al
Manu-ac#ur"ng and adm"n"s#ra#"on e7enses.
Pa!men# #erms C,C or d"rec#D
*- "# "s ,C Msance ,C or s"gh# ,C
Msance ,C4 #hen wha# "s er"od C '0 da!s or /0 da!sD
CO()*%+(T*A, Page .1 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
Fho w"ll bear ad5anceG
Ad5ance "s g"5en w"#h "n#eres# or w"#hou# "n#eres#.
Par#!Es a!men# collec#"on #"me. C#erms o- a!men#D
*n#eres# on raw ma#er"al
3ecur"#! deos"# "s #here or no#.
Comm"ss"on "- 2P*, need #o g"5e.
%el"5er! er"od
B"d 5al"d"#!
$al"d"#! -or 6uo#a#"on
Aar# -rom abo5e -ac#ors o#her -ac#ors need #o judge are as -ollows:
O#her rosec#"5e come#"#or r"ce -or #ha# s"m"lar "#em.
,as# #ender r"ce -or same "#em an!where "n *nd"a.
,as# #ender -or #ha# ar#"cular cus#omer.
CO()*%+(T*A, Page .. o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
&. Profitability analysis
Pro-"#ab"l"#! anal!s"s Cco9aD enables !ou #o e5alua#e mar;e# segmen#s4 wh"ch can be
class"-"ed accord"ng #o roduc#s4 cus#omers4 orders or an! comb"na#"on o- #hese4 or
s#ra#eg"c bus"ness un"#s4 such as sales organ"?a#"ons or bus"ness areas4 w"#h resec# #o !our
coman!As ro-"# or con#r"bu#"on marg"n.
The a"m o- #he s!s#em "s #o ro5"de !our sales4 mar;e#"ng4 roduc# managemen# and
corora#e lann"ng dear#men#s w"#h "n-orma#"on #o suor# "n#ernal accoun#"ng and
dec"s"on9ma;"ng.
Two -orms o- ro-"#ab"l"#! anal!s"s are suor#ed: cos#"ng9based and accoun#9based.
Cos#"ng9based ro-"#ab"l"#! anal!s"s "s #he -orm o- ro-"#ab"l"#! anal!s"s #ha# grous
cos#s and re5enues accord"ng #o 5alue -"elds and cos#"ng9based 5alua#"on
aroaches4 bo#h o- wh"ch !ou can de-"ne !oursel-. *# guaran#ees !ou access a# all
#"mes #o a comle#e4 shor#9#erm ro-"#ab"l"#! reor#.
Accoun#9based ro-"#ab"l"#! anal!s"s "s a -orm o- ro-"#ab"l"#! anal!s"s organ"?ed "n
accoun#s and us"ng an accoun#9based 5alua#"on aroach. The d"s#"ngu"sh"ng
charac#er"s#"c o- #h"s -orm "s "#s use o- cos# and re5enue elemen#s. *# ro5"des !ou
w"#h a ro-"#ab"l"#! reor# #ha# "s ermanen#l! reconc"led w"#h -"nanc"al accoun#"ng.
CO()*%+(T*A, Page .& o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
9e0uirements
6uture profitability Cbusiness forecast4
)u#ure ro-"#ab"l"#! w"ll be -orecas#ed based on curren# orders on hand wh"ch are no#
e7ecu#ed and #he e7ec#ed orders wh"ch are 6uo#a#"ons subm"##ed.
)u#ure ro-"#ab"l"#!
1. Orders on hand C sales ordersD
2. +7ec#ed orders C 6uo#a#"on D
3ales orders "n hand ".e. 3ales orders 6#! C-"n"shed goodsD R 7777
+7ec#ed orders 6uan#"#! R 6#! #o be der"5ed -rom 6uo#a#"ons
To#al re6u"red raw ma#er"al R deend"ng on #he BOM4 need #o arr"5e #he Rm
6uan#"#! -or #he e7ecu#"on o- #o#al orders Csales orders Pe7ec#ed ordersD
(eed #o cons"der #he resen# s#oc; o- raw9ma#er"als and sa-e#! s#oc; #o arr"5e #he
raw ma#er"al #o be rocured.
Raw9ma#er"als re6u"red #o be rocured R #o#al raw ma#er"al re6u"red I raw ma#er"al
s#oc; I sa-e#! s#oc;.
Raw ma#er"al r"ce R Craw ma#er"als #o be rocured 7 curren# r"ceD
)"nance cos# R ,C or B2 or )%R charges.
Produc#"on cos# C"nclud"ng #he o5erheadsD R arr"5ed -rom roduc# cos#"ng o- #he
-"n"shed goods
M"scellaneous e7enses R user need #o en#er #he e7enses
To#al e7enses R roduc# cos# P -"nanc"al cos# P m"scellaneous e7enses
To#al re5enueR sales 6#! 7 r"ce P 6uo#a#"on 7 r"ce
Pro-"#: loss R d"--erence be#ween #o#al e7enses and #o#al re5enues.
(o#e: co9c "s no# a caable #ool #o de5elo reor# o- abo5e re6u"remen#s

Profitability for the sales order
)or each and e5er! e7ecu#ed sales order4 needs #o der"5e roduc#"on order. And also arr"5e
#he ac#ual cos# o- #he roduc#"on order and "nclude #he ac;ag"ng cos#. Mser has #o en#er
CO()*%+(T*A, Page .' o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
#he sell"ng and d"s#r"bu#"on e7enses or needs #o de-aul# #he ercen#age. )"nanc"al cos# l";e
,C4 B2 cos# also #o be "ncluded. %"--erence be#ween #o#al cos# o- #he sales order and #he
sales order 5alue de#erm"nes #he ro-"#:loss o- #he order.
Aba de5elomen# re6u"remen#s
Produc# cos#"ng calcula#"on -or #ender 6uo#"ng r"ce
Produc# cos#"ng -or arr"5"ng #he ro-"#ab"l"#! o- #he sales order
Pro-"#ab"l"#! anal!s"s -or #he sales order
)u#ure ro-"#ab"l"#! reor# "s re6u"red -or #he men#"oned er"od
CO()*%+(T*A, Page .8 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
1'. (aps
Produc# cos#"ng calcula#"on -or #ender 6uo#"ng r"ce
Produc# cos#"ng -or arr"5"ng #he ro-"#ab"l"#! o- #he sales order
Pro-"#ab"l"#! anal!s"s -or #he sales order
)u#ure ro-"#ab"l"#! reor# "s re6u"red -or #he men#"oned er"od
CO()*%+(T*A, Page .0 o- ./
G CONNECT
Process Code
BBP_CO_001_02
Business Blueprint
Process Owner: Mr. Anil Jhajharia
Core Team Member:
Mr. Mundra
Mr. Rajesh Agarwal
Preared b!: Mr.Ch"nma!a B"swal
T"#le: Con#roll"ng $ers"on:2 %a#e:0&.0'.2010
11. Sign)off
role name signature date
g"l core #eam member Mr. Mundra
Mr. Rajesh Agarwal
;"# consul#"ng #eam
member Mr. Ch"nma!a B"swal
g"l rojec# manager
Mr. >aush"; Madh!a!
;"# rojec# manager
Mr. Meghna#h
%eshande
g"l rocess owner
Mr. Anil Jhajharia
g"l d"rec#or
Mr. Abh"she; 2u#a
CO()*%+(T*A, Page ./ o- ./