TMI Blueprint 1-12-2004

TM
International
MySAP ERP Implementation

Business Blueprint
Version 1.0
December 1, 2004
TM
International
TMI Business Blueprint
Table of Contents
1
Introduction and Overview................................................................................................................................................................................................ 7
1.1
Purpose of this Document................................................................................................................................................................................................. 7
1.2
Version Control................................................................................................................................................................................................................. 9
1.3
Summary of Key Features and High Level System Overview......................................................................................................................................... 10
1.3.1 Key Business Features.............................................................................................................................................................................................. 10
1.3.2 Summary of SAP Modules and Functionalities to be Implemented............................................................................................................................ 12
1.3.3 Key Management Considerations.............................................................................................................................................................................. 14
1.3.3.1
Use of a Data Warehousing System to obtain Cross System Information........................................................................................................ 14
1.3.3.2
Implementation of SAP HR............................................................................................................................................................................... 14
1.3.3.3
SAP SD Module to Meet Sales Requirement of Intermediate Customers and not End Customers..................................................................14
1.3.3.4
Possible Enhancements Needed to SAP MM................................................................................................................................................... 15
1.4
Summary of Global SAP Settings Required for TMI........................................................................................................................................................ 16
1.5
Standard SAP Organisation Structure............................................................................................................................................................................. 18
1.6
Overall Systems Maps for Each Country........................................................................................................................................................................ 19
1.6.1 Sri Lanka Site Systems Map...................................................................................................................................................................................... 19
1.6.2 Bangladesh Site Systems Map.................................................................................................................................................................................. 20
1.6.3 Malaysia Site Systems Map....................................................................................................................................................................................... 21
1.7
Flowcharting Convention Used....................................................................................................................................................................................... 22
2
Financial Accounting and Controlling............................................................................................................................................................................ 23
2.1
Scope of Financial Accounting and Controlling............................................................................................................................................................... 23
2.2
Financial and Controlling Organisation Structure............................................................................................................................................................ 24
2.2.1 Organisation Structure Diagram................................................................................................................................................................................. 24
2.2.2 Organisation Structure Definitions............................................................................................................................................................................. 25
2.3
Financial and Controlling Master Data............................................................................................................................................................................ 27
2.3.1 General Ledger.......................................................................................................................................................................................................... 27
2.3.1.1
General Ledger Account................................................................................................................................................................................... 27
2.3.2 Tax Code.................................................................................................................................................................................................................... 29
2.3.3 Accounts Receivable................................................................................................................................................................................................. 30
2.3.3.1
Customer Account Groups................................................................................................................................................................................ 30
2.3.4 Accounts Payable...................................................................................................................................................................................................... 31
2.3.4.1
Vendors Group................................................................................................................................................................................................. 31
2.3.4.2
House Bank...................................................................................................................................................................................................... 32
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2.3.4.3
Bank................................................................................................................................................................................................................. 32
2.3.5 Fixed Assets............................................................................................................................................................................................................... 32
2.3.6 Controlling.................................................................................................................................................................................................................. 32
2.3.6.1
Primary Cost Element....................................................................................................................................................................................... 32
2.3.6.2
Secondary Cost Element.................................................................................................................................................................................. 32
2.3.6.3
Profit Centres.................................................................................................................................................................................................... 33
2.3.6.4
Cost Centres..................................................................................................................................................................................................... 33
2.3.6.5
Internal Order................................................................................................................................................................................................... 33
2.3.6.6
Statistical Key Figure........................................................................................................................................................................................ 33
2.4
Financial and Controlling Business Processes............................................................................................................................................................... 34
2.4.1 General Ledger.......................................................................................................................................................................................................... 34
2.4.2 Accounts Receivable................................................................................................................................................................................................. 40
2.4.3 Accounts Payable...................................................................................................................................................................................................... 45
2.4.4 Fixed Assets............................................................................................................................................................................................................... 54
2.4.5 Cost Centre Accounting / Profit Centre Accounting.................................................................................................................................................... 62
2.4.6 Internal Order................................................................................................................................................................................................................ 71
2.5
Interfaces........................................................................................................................................................................................................................ 73
2.6
List of Customised Reports and Forms........................................................................................................................................................................... 76
3
Project System.................................................................................................................................................................................................................. 77
3.1
Scope of Project System................................................................................................................................................................................................. 77
3.2
Project System Organisational Structure........................................................................................................................................................................ 78
3.2.1 Organisational Structure Diagram.............................................................................................................................................................................. 78
3.2.2 Organisational Structure Definitions........................................................................................................................................................................... 79
3.2.2.1
Project System Organisation Data Definitions.................................................................................................................................................. 79
3.2.2.2
Accounting Organisational Data Definitions...................................................................................................................................................... 81
3.2.2.3
Logistic Organisational Data Definitions........................................................................................................................................................... 82
3.2.3 Proposed Coding Structure for Projects..................................................................................................................................................................... 84
3.2.3.1
Naming Convention for the Coding Structure................................................................................................................................................... 85
3.2.3.2
Coding Structure for Site-Rollout Projects........................................................................................................................................................ 87
3.2.3.3
Coding Structure for Network Development Projects and IT Projects............................................................................................................... 88
3.2.3.4
Coding Structure for Sales & Distribution Projects, Special Projects, Merger & Acquisition Projects, Product Development Projects.............89
3.3
Project System Master Data........................................................................................................................................................................................... 90
3.3.1 Project Definition........................................................................................................................................................................................................ 90
3.3.2 WBS Elements........................................................................................................................................................................................................... 90
3.3.3 Network...................................................................................................................................................................................................................... 91
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3.3.4 Activity....................................................................................................................................................................................................................... 91
3.3.5 Milestone.................................................................................................................................................................................................................... 92
3.3.6 Material Components................................................................................................................................................................................................. 92
3.4
Project System Business Process.................................................................................................................................................................................. 94
3.4.1 Project Business Flow................................................................................................................................................................................................ 94
3.4.1.1
Determine Business Plan (Outside SAP).......................................................................................................................................................... 94
3.4.1.2
Determine Projects for the Year (Outside SAP)................................................................................................................................................ 94
3.4.1.3
Determine Project Business Scenarios (Outside SAP)..................................................................................................................................... 95
3.4.1.4
Project Planning................................................................................................................................................................................................ 95
3.4.1.5
Submit for Board Approval (Outside SAP)........................................................................................................................................................ 95
3.4.1.6
Project Implementation..................................................................................................................................................................................... 95
3.4.1.7
Project Completion........................................................................................................................................................................................... 96
3.4.2 Project Business Scenarios....................................................................................................................................................................................... 96
3.4.2.1
Site-rollout project............................................................................................................................................................................................. 96
3.4.2.2
Network Development project........................................................................................................................................................................... 97
3.4.2.3
IT project........................................................................................................................................................................................................... 97
3.4.2.4
Sales & Distribution project............................................................................................................................................................................... 97
3.4.2.5
Special project.................................................................................................................................................................................................. 98
3.4.2.6
Mergers and Acquisitions project...................................................................................................................................................................... 98
3.4.2.7
Product Development project........................................................................................................................................................................... 98
3.4.3 Project Processes in SAP.......................................................................................................................................................................................... 99
3.4.3.1
Project Planning................................................................................................................................................................................................ 99
3.4.3.2
Project Budgeting........................................................................................................................................................................................... 102
3.4.3.3
Project Materials and Equipment Usage......................................................................................................................................................... 104
3.4.3.4
Project Services Usage.................................................................................................................................................................................. 106
3.4.3.5
Project Monitoring........................................................................................................................................................................................... 107
3.4.3.6
Project Interim Settlement............................................................................................................................................................................... 112
3.4.3.7
Project Final Settlement.................................................................................................................................................................................. 113
3.4.3.8
Project Status Control..................................................................................................................................................................................... 114
3.5
Interfaces...................................................................................................................................................................................................................... 117
3.6
List of Customised Reports and Forms......................................................................................................................................................................... 117
4
Materials Management................................................................................................................................................................................................... 118
4.1
Scope of Materials Management................................................................................................................................................................................... 118
4.2
Material Management Organisation Structure............................................................................................................................................................... 120
4.2.1 Organisation Structure Diagram............................................................................................................................................................................... 121
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4.2.1.1
Materials Management Organisation Structure for Sri Lanka......................................................................................................................... 121
4.2.1.2
Materials Management Organisation Structure for Bangladesh..................................................................................................................... 122
4.2.1.3
Materials Management Organisation Structure for Malaysia.......................................................................................................................... 123
4.2.2 Organisation Structure Definitions........................................................................................................................................................................... 124
4.3
Material Management Master Data............................................................................................................................................................................... 129
4.3.1 Introduction.............................................................................................................................................................................................................. 129
4.3.2 Material Master Data................................................................................................................................................................................................ 129
4.3.3 Serial Number Management.................................................................................................................................................................................... 133
4.3.4 Materials Requirement Planning (MRP) Controller.................................................................................................................................................. 134
4.3.5 Vendor Master Data................................................................................................................................................................................................. 135
4.3.5.1
Vendor Master Data Processing..................................................................................................................................................................... 136
4.3.6 Material Information Records................................................................................................................................................................................... 138
4.4
Material Management Business Processes.................................................................................................................................................................. 139
4.4.1 Procurement............................................................................................................................................................................................................ 139
4.4.2 Procurement of Stock Materials............................................................................................................................................................................... 140
4.4.3 Procurement of Non Stock Materials....................................................................................................................................................................... 145
4.4.4 Procurement for Intra Company Stock Transfers..................................................................................................................................................... 149
4.4.5 Request for Quotation.............................................................................................................................................................................................. 151
4.4.6 Inventory Control...................................................................................................................................................................................................... 153
4.4.7 Goods Receipt for Purchase Orders........................................................................................................................................................................ 154
4.4.8 Transfer Postings..................................................................................................................................................................................................... 157
4.4.9 Goods Issue............................................................................................................................................................................................................. 159
4.4.10 Stock Revaluation.................................................................................................................................................................................................... 161
4.4.11 Physical Inventory.................................................................................................................................................................................................... 163
4.4.12 Vendor Returns........................................................................................................................................................................................................ 166
4.4.13 Materials Planning................................................................................................................................................................................................... 168
4.4.14 Invoice Receipt........................................................................................................................................................................................................ 170
4.4.15 Credit Note and Subsequent Credit/Debit................................................................................................................................................................ 173
4.5
Interfaces...................................................................................................................................................................................................................... 175
4.6
5
Sales and Distribution.................................................................................................................................................................................................... 177
5.1
Scope of Sales And Distribution.................................................................................................................................................................................... 177
5.2
Sales and Distribution Organisation Structure.............................................................................................................................................................. 181
5.2.1 Organisation Structure Diagrams............................................................................................................................................................................. 181
5.2.1.1
Sales Organisation Structure for Sri Lanka..................................................................................................................................................... 181
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5.2.1.2
Sales Organisation Structure for Bangladesh................................................................................................................................................. 182
5.2.3 Sales Area to Sales Office Mapping......................................................................................................................................................................... 186
5.2.4 Organisational Units for Shipping............................................................................................................................................................................. 188
5.3
Sales and Distribution Master Data............................................................................................................................................................................... 190
5.3.1 Introduction.............................................................................................................................................................................................................. 190
5.3.2 Customer Master..................................................................................................................................................................................................... 190
5.3.3 Material Master for Sales Related Processes.......................................................................................................................................................... 191
5.3.4 Pricing Conditions.................................................................................................................................................................................................... 192
5.4 Sales and Distribution Business Processes..................................................................................................................................................................... 193
5.4.1 Free Of Charge Sales Processing........................................................................................................................................................................... 194
5.4.2 Credit Sales Processing............................................................................................................................................................................................ 197
5.4.3 Cash Sales Processing............................................................................................................................................................................................. 200
5.4.4 Consignment Sales Processing................................................................................................................................................................................ 204
5.4.5 Consignment Returns Processing............................................................................................................................................................................. 207
5.4.6 Non-Consignment Returns Processing..................................................................................................................................................................... 209
5.4.7 Credit Memo Request Processing............................................................................................................................................................................. 211
5.4.8 Debit Memo Request Processing.............................................................................................................................................................................. 213
5.4.9 Quotation Processing................................................................................................................................................................................................ 215
5.4.10 Inter Company Sales Processing............................................................................................................................................................................ 217
5.5 Interfaces........................................................................................................................................................................................................................ 219
5.6
6
Plant Maintenance.......................................................................................................................................................................................................... 221
6.1
Scope of Plant Maintenance......................................................................................................................................................................................... 221
6.2
Plant Maintenance Organisation Structure.................................................................................................................................................................... 222
6.2.1 Organisation Structure Diagram............................................................................................................................................................................... 222
6.3
Plant Maintenance Master Data.................................................................................................................................................................................... 225
6.3.1 Functional Location.................................................................................................................................................................................................. 225
6.3.1.1
Functional Location Description...................................................................................................................................................................... 225
6.3.1.2
Functional Location Category......................................................................................................................................................................... 226
6.3.1.3
Functional Location Processing...................................................................................................................................................................... 227
6.3.2 Equipment................................................................................................................................................................................................................ 229
6.3.2.1
Equipment Processing.................................................................................................................................................................................... 231
6.3.3 Maintenance Work Centre....................................................................................................................................................................................... 234
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6.3.3.1
Work Centre Description................................................................................................................................................................................. 234
6.3.3.2
Work Centre Processing................................................................................................................................................................................. 236
6.3.4 Task List................................................................................................................................................................................................................... 238
6.3.4.1
Task List Description....................................................................................................................................................................................... 238
6.3.4.2
Task List Processing....................................................................................................................................................................................... 241
6.4
Plant Maintenance Business Processes....................................................................................................................................................................... 244
6.4.1 Maintenance Plan.................................................................................................................................................................................................... 246
6.4.1.1
Maintenance Plan Description........................................................................................................................................................................ 246
6.4.1.2
Maintenance Plan Processing........................................................................................................................................................................ 247
6.4.2 Preventive Maintenance Processing........................................................................................................................................................................ 251
6.4.2.1
Preventive Maintenance Description.............................................................................................................................................................. 251
6.4.2.2
Preventive Maintenance Processing............................................................................................................................................................... 252
6.4.3 Corrective Maintenance Processing........................................................................................................................................................................ 255
6.4.3.1
Corrective Maintenance Description............................................................................................................................................................... 255
6.4.3.2
Corrective Maintenance Processing............................................................................................................................................................... 256
6.4.4 Work Completion Processing................................................................................................................................................................................... 261
6.4.4.1
Work Completion Description......................................................................................................................................................................... 261
6.4.4.2
Work Completion Processing.......................................................................................................................................................................... 262
6.5
Interfaces...................................................................................................................................................................................................................... 265
6.6
List Of Customised Reports and Forms........................................................................................................................................................................ 265
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1 Introduction and Overview

1.1
Purpose of this Document
The Business Blueprint is a statement of the process design that has been jointly developed by TMI & Atos Origin during the Develop Business Blueprint
phase (also known as Work Package 1) of the mySAP ERP Implementation project. The objectives of the Business Blueprint are to:
1.
2.
Document the transfer of information from TMI to Atos Origin

Serve as reference for the implementation of the mySAP ERP system
Structure of the Document

The document has been segmented into the various modules of mySAP ERP (SAP) and is structured to reflect the key business scenarios within TMIs
business. Each section contains a short description of the scope related to the SAP module, followed by the details of the SAP organisation structures,
master data and business processes that have been identified. These business processes will then be expanded to document the detailed SAP requirements
needed to reflect the business process in the SAP system.
Linkage to Project Implementation
The contents of the document will provide a framework for the implementation of the SAP system, in which the important activities will be:
1. Baseline Configuration, Documentation and Unit Test
The core system will be configured through an iterative process and SAP settings will be made as required. Each business process will be unit tested.
2. Cycle Configuration and Confirmation
Additional configurations to include revised scenarios and processes will be confirmed in a small number of cycles, which may also include interfaces,
reports, and enhancements.
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3. Integrated Systems Testing

Once the above elements have been developed and concluded, Key Users will carry out end-to-end integrated tests before final sign-off.
Sources of Information
Following are the sources of information in the development of the Business Blueprint:
1.
2.
3.
4.
Processes from TMI legal entities - TM International, MTN, TMI Bangladesh

Management and Key Users from TM International, MTN, TMI Bangladesh
Business Blueprint Workshops conducted in October 2004
References to standard mySAP ERP functionality
The Business Blueprint makes a statement as to the design of the SAP system as far as is known at the time of the submission. Further changes to reflect
updates or revisions should be subject to strict change control procedures by TMI in order to control the contents of the document. Section 1.2 Version
Control below has been included for this purpose and should be used to track changes to the document at a high level.
The intended audience for the Business Blueprint include:
Members of the Steering Committee.
Project Managers.
Members of the Project Team.
Key Users.
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1.2
1.3
Version Control
Version
Date
Short Description of Modification
1.0
1/12/04
Original Version by Atos Origin
Summary of Key Features and High Level System Overview
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The following information has been extracted from the Business Blueprint details. The intention is to present an overall view of the system and features of the
SAP system as will be implemented in the following stages of the project. The overall view also serves as an executive summary to the Business Blueprint
document.
1.3.1 Key Business Features

Key Business Features resulting from the development of the Business Blueprint are as follows:
Module
Key Business Feature
Financial and
Controlling
Develop a single set of standards for the processing of financial

information for the TMI group of companies.
Utilize a single operating Chart of Accounts.
Facilitate group consolidation reporting.
Facilitate an accounting environment with local currency as the base
currency for each company code.
Adopt a 12 + 4 period Financial Year that begins on 1st January.
Account for subscribers' sales via interface with external billing system.
Incorporate electronic bank interface for vendor payments and bank
reconciliation.
Incorporate processing of Personal Expenses.
Facilitate the purchase, depreciation and disposal of Fixed Assets on all
company codes.
Facilitate budget control for all purchases.
Project System
Develop a standard process to effectively and efficiently monitor and

control progress, resource requirements, utilisation and
capital/operational expenditure of projects.
Accommodate varying degrees of complexity based on the number of
activities, sub-activities, value and duration of projects.
Ability to identify bottlenecks and prevent budget overruns by identifying
remaining budgets and expected costs to be incurred in the project
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lifespan.
Transfer of capital investment projects to completed Assets
Material Management
Develop a standard set of process flows for procurement and inventory

control for TMI group of companies.
Facilitate centralised procurement control.
Enable online procurement approval request.
Implement workflow based approval routing for purchasing documents.
Tracking of purchase order status and history.
Facilitate vendor evaluation.
Achieve system based matching capability for purchase orders and
vendor invoices.
Tracking of import and export documents.
Provide facility for automated order proposals for stock replenishment.
Provide integrated inventory control across all business areas.
Sales and Distribution
Develop a standard set of process flows for sales and distribution for
TMI group of companies.
Facilitate sales, delivery and billing functions for customers.
Facilitate credit management for sales processes.
Enable direct integration with inventory control.
Plant Maintenance
Develop a standard set of maintenance business processes which will

cater for each type of equipment in TMI.
Provide operations with a common global defect/damage reporting
structure.
Enable direct integration with inventory, purchasing and cost centre
accounting.
Provide operations with a common approach to plan for maintenance of
equipment.
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1.3.2 Summary of SAP Modules and Functionalities to be Implemented

In order to achieve the processes specified in the business Blueprint, the following SAP Modules and Core Functionalities of SAP will need to be included in
the scope of the Implementation project.
SAP Module
FI
CO
PS
SD
Core Functionality
Consolidation
General Ledger
Accounts Receivable
Accounts Payable
Asset Management
Cash Management
Funds Management
Cost Centre Accounting
Profit Centre Accounting
Internal Orders
Project Organization Structure WBS element,
Networks
Planning
Budgeting
Execution
functions.
E.g.
Reservations,
confirmations.
Settlement
Sales Master Data Processing
Sales Order Processing
Credit Management
Delivery Order Processing
Billing
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SAP Module
MM
PM
Core Functionality
Materials Management Master Data Processing
Purchasing
Inventory Management
Materials Planning
Invoice Verification
Equipment and Technical Objects Master Data
Preventive Maintenance Processing
Corrective Maintenance Processing
Maintenance Order Management
Work Clearance Management
Data conversion objects for transaction data and master data for each of the SAP modules that have been proposed for implementation will be identified
through a separate data conversion document, which will be produced at the implementation phase of the TMI MYSAP ERP project. The data conversion
document to be produced will clearly identify the data objects required for conversion and the strategy to be used to convert these identified objects into SAP
data.
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1.3.3 Key Management Considerations

Several key considerations requiring management attention were identified during the Business Blueprint. These considerations are discussed below.
1.3.3.1 Use of a Data Warehousing System to obtain Cross System Information

For MTN and TMIB, most of the revenue and costs related to subscribers are captured via external billing systems. Financial related information from these
external systems will be posted into SAP via an interface program. Additional information such as subscriber records and sales analysis would have to be
determined via the external system.
In order to obtain combined information related to SAP and the external systems, we recommend TMI to implement a data warehousing application such as
SAP Business Warehouse (BW) to manage these requirements and databases. Examples of information from data warehousing would include subscribers
ageing reports, subscribers payment and deposit reports, cost component and usage reports etc. Most of the information required for these reports is in the
external systems with some information from certain components of SAP. Using SAP BW to store such information from various databases would be more
effective than building customised reports that extract data from multiple databases.
1.3.3.2 Implementation of SAP HR

In Project Systems, the cost of Internal Services (i.e. personnel involved in the project) will be handled through the manual posting of journal entries into the
General Ledger with a reference to the project. The amount to be charged will be determined outside SAP due to the fact that employee charge out rates and
time spent on a project cannot be automatically posted to the project without the implementation of the SAP HR module. While this manual procedure has
been accepted during the development of the Business Blueprint, we would like to highlight the potential integration that would be available through the
implementation of SAP HR.
1.3.3.3 SAP SD Module to Meet Sales Requirement of Intermediate Customers and not End Customers
Customers in TMI have generally been categorised as:
1. End Customers Customers who procure cellular or internet services provided by TMIB or MTN either directly or through third parties
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2. Intermediate Customers Customers who act as agents that sell cellular or Internet services to individuals or companies on behalf of MTN or TMIB.
Currently telecommunication specific billing and pre paid solutions have been implemented in Sri Lanka and Bangladesh. An Internet billing solution has also
been implemented in Sri Lanka. These solutions handle all sales transactions for post paid access, pre paid access and Internet access to End Customers.
SAP Sales and Distribution (SD) module will not replace the existing End Customer solutions that have been implemented in Sri Lanka and Bangladesh but
instead complement these existing solutions. Standard SAP SD module does not provide a good fit for telecommunication specific sales requirement for End
Customers but is able to provide a good fit for the sales requirements of Intermediate Customers. As such, SAP SD will only be implemented to meet the sales
requirement of Intermediate Customers.
SAP does not track sales from intermediate customers to end customers. Therefore sales commission reports and sales performance reports of intermediate
customers sale to end customers cannot be generated from SAP. The existing billing system and pre paid system should be used as the platform to generate
such reports and not SAP.
1.3.3.4 Possible Enhancements Needed to SAP MM

The tracking of import and export documents is a key business requirement for Sri Lanka. The import and export of items in Sri Lanka are governed by strict
rules and regulations imposed by the local authorities. All necessary import and export documents must be approved by the relevant authorities before the
import or export of an item is permitted. Import documents are raised for the importation of new items while export documents are raised for returns of faulty
items. Presently the tracking of such documents is performed manually. Sri Lanka is looking into the possibility of automating the tracking of these documents.
SAP Materials Management (MM) provides the basis for tracking these documents. However some level of enhancement is expected in order to handle the
following requirements that have been raised by the Sri Lanka users:
1. The printing of pre formatted import /export documents based on local authority templates.
2. Updating status of an export/import relevant document with reference to a purchasing document.
3. Tracking the different statuses for each different export/import document for a purchasing document.
The enhancements required will not affect the core SAP materials management modules. Instead customised transactions will be developed to meet the
requirements mentioned above.
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1.4
Summary of Global SAP Settings Required for TMI
We have extracted the following in order to provide in an overview of the key SAP settings required for TMI.
Module
Financial and
Controlling
SAP Global Setting

One Company Code for each legal entity.
One Controlling Area for all the six company codes.
One Credit Control Area MTN
One common Chart of Accounts for all the six company codes.
One Chart Of Depreciation for each country.
Four Consolidation Group for four different level of consolidation reporting.
One Financial Management Area for each legal entity.
Operating Concern, Business Area and Functional Area will not be used.
Materials
Management
A Purchasing Organisation to be defined for each of the following company codes.

(LK01, LK02, BD01, MY01, MY02, MY03)
Purchasing Groups to be based on functional buying groups. List to be finalised at

realisation phase.
Plants to represent branches or headquarters.
Multiple Storage Locations for each Plant where required.
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Module
Sales and
Distribution
Project Systems
SAP Global Setting
Three sales organisations for Sri Lanka and one sales organisation for Bangladesh.
One distribution channel.
There sales divisions
Sales office to be mapped to branches
Sales groups to be mapped to sales team at branches
One shipping point per plant.
Seven Coding Structures to represent seven Business Scenarios i.e. Network

Development Project, IT Project, Sales & Distribution Project, Special Project, Merger &
Acquisition Project, Product Development Project, Site Rollout Project.
One Work Breakdown Structure to represent one Task Group.
Network Elements consisting of activities and their relationships.
Milestones to represent phases of completion in the project.
Plant Maintenance
Material Components to raise reservations or requisition of material, equipment and

external services.
One planning maintenance plant respectively for TMI, MTN and TMIB.
Planner group for each planning plant based on the function (ITO, NSS, BSS, M&E, S&F)
Multiple locations for each Maintenance Plant where required
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1.5
Standard SAP Organisation Structure
Following is an illustration of a standard SAP Organisation Structure. Both static data (Materials, Vendors, Customers etc) and transactional data (Sales
orders, Purchase orders etc) are held against these structure elements. The detailed set up of the relevant organisational structures for TMI are provided by
SAP module in the respective organisation structure sections of this Business Blueprint.
SAP System
Client
Credit Control
Area
Operating
Concern
Sales
Organisation
Controlling
Area
Sales Office
Chart of
Accounts
Sales Group
Distribution
Channel
Company
Code
Plant
Purchasing
Organisation
Division
Profit Centre
Maint. Planning
Plant
Shipping Point
Maintenance
Plant
Loading Point
Purchasing
Group
Material
Cost Centre
Storage Location
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1.6
Overall Systems Maps for Each Country
The system map for each country will illustrate the SAP modules to be implemented as well as any interfaces to/from other TMI systems. The arrows indicate
the direction of the interfaced information (ingoing from vs. outgoing to external systems).
1.6.1 Sri Lanka Site Systems Map

Revenue
Summary
Roaming
System
Cost
Summary
Equipment and SIM Data

Post Paid
System
Customs
Declaration Sys.
Customs
Data
Revenue
Summary
Interconnect
System
Revenue and
Cost Summary
Satellite phone
system
Revenue and
Cost Summary
SAP
Materials
Management
Project
System
Plant
Maintenance
Finance and Controlling
Revenue
Summary
Key
Banking
System
Payment &
Bank Statement
Summary
Human Resource
System
Program Interface
General Ledger
Account Payable
Inventory Control
Order Entry
HR Resource
Data
Cost Information
System
ACCPAC
Payroll
System
Payroll
Summary
HR Resource
Data
Revenue Summary
&SIM/Scratch Card Data
Asset Barcode
System
Stock Inquiry
And Reservation
Replace
Pre Paid
System
Project Cost
Data
Balance
Scorecard System
KPI Characteristics
Manual Interface
Site Rollout
System
Asset Master
Sales &
Distribution
Revenue and
Cost Summary
Internet
Billing System
External Gateway
System
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1.6.2 Bangladesh Site Systems Map

Revenue
Summary
Roaming
System
Cost
Summary
External Gateway
System
SIM Data
Post Paid
System
Revenue and
Cost Summary
Revenue
Summary
Interconnect
System
Revenue and
Cost Summary
Satellite phone
system
Sales &
Distribution
Materials
Management
Project
System
Plant
Maintenance
Revenue
Summary
Key
Program Interface
Payroll
Summary
Payroll
System
Banking
System
Payment &
Bank Statement
Summary
Replace
Pre Paid
System
Revenue Summary
&SIM/Scratch Card Data
Stock Inquiry
And Reservation
SAP
Revenue and
Cost Summary
Internet
Billing System
Site Rollout
System
ACCPAC
General Ledger
Account Payable
Inventory Control
Order Entry
Page 20
TM
International
1.6.3 Malaysia Site Systems Map
Payroll
System
Payroll
Summary
SAP
Materials
Banking
System
Management
Payment &
Bank Statement
Summary
Replace
ACCTRACK
General Ledger
Account Payable
Account Receivable
Key
Program Interface
Page 21
TM
International
1.7
Flowcharting Convention Used
The following convention is used for the flowcharts appearing in the Business Process sections. The size of the flowchart elements and the related font may
vary depending on the complexity of the flowchart, in an effort to fit each flowchart within its designated section.
Text
Initiator/Terminator for Scenario
Text
Connector (to another Scenario)
Text
Text
Text
Non-SAP Process
Output
XX
Text
Text
SAP Process (uniquely numbered)
Decision Point
Flow
Page 22
TM
International
2 Financial Accounting and Controlling

2.1
Scope of Financial Accounting and Controlling
Financial Accounting and Controlling manages the processing, reporting and where applicable, interfacing of financial documents and balances. All relevant
aspects of Consolidation, General Ledger, Accounts Payable, Accounts Receivable, Asset Accounting, Cash Management, Funds Management, Cost Centre
Accounting, Profit Centre Accounting and Internal Order are addressed.
For MTN and TMIB, majority of the sales transaction are captured via the external billing system. Interfaces between these external systems with SAP will be
required to capture the financial impact for reporting purposes. However, the level of detail for the data to be posted into SAP will be determined during
implementation where joint efforts between the SAP consultant, key users and external systems consultants will be required.
The recommended SAP Financial Accounting and Controlling module for all the six company codes are: 1.
Consolidation
2.
General Ledger
3.
Accounts Receivable
4.
Accounts Payable
5.
Asset Accounting
6.
Cash Management
7.
Funds Management
8.
Cost Centre Accounting
9.
Profit Centre Accounting
10.
Internal Order
However, for TMIB and MTN where the majority of the billing information are captured externally, the functions of Accounts Receivable will be limited. Please
refer to Section 2.4.2.10: Interface.
Page 23
TM
International
2.2
Financial and Controlling Organisation Structure
2.2.1 Organisation Structure Diagram
CONTROLLING AREA
COMPANY CODE
TMCA
MY01
MY02
MY03
Page 24
BD01
LK01
LK02
TM
International
2.2.2 Organissation Structure Definitions

R/3 structure
Company ID
Definition
A company id is used for the purpose of legal
consolidation within SAP.
Decided Implementation
One company id will be implemented for the TMI Group
of Ccompaniesy
Codes
TMIC
Credit Control Area
A Credit Control Area is an organisational unit

that represents a logical area of responsibility
for granting and monitoring credit.
Only MTN will have credit management check. This is

only possible if MTN uses the Sales and Distribution
module to perform sales function. Otherwise, if sales
are performed out of SAP R/3 system and data are
updated via uploading function, no credit management
will be implemented as sales are already performed in
an external system.
LK01
Credit information is available for

Customer within a Credit Control Area.
Financial Management
Area
each
A Financial Management Area is an

organisational unit that represents an
independent area of cash management
responsibility.
TMIB, TMI, TMI Labuan and TMS will not use credit
management.
Six Ccompany Ccodes will be implemented. They are:
TM International Sdn Bhd
TM International (L) Ltd
Telekom Management Services Sdn Bhd
TM International (Bangladesh) Ltd
MTN Networks (Pte) Ltd
TM International Lanka (Private) Ltd
Page 25
MY01
MY02
MY03
BD01
LK01
LK02
TM
International
R/3 structure
Controlling Area
Definition
A Controlling Area is an organisational unit that
represents a closed-system for management
accounting purposes.
All the six companies will be assigned to one
controlling area.
Company Code
A Ccompany Ccode has its own general

ledger and can generate its own P&L
Statement and Balance Sheet.
Six Ccompany Ccodes will be implemented. They are:

These company codes will be used through out

the business blueprint documentation for
further illustration.
Chart of Accounts
Chart of Depreciation
A Chart of Accounts is a group of general

ledger accounts that provides a framework for
recording and classifying financial values.
A Chart of Depreciation contains a set of rules
for valuating fixed assets and they are usually
based-on the fiscal requirements of each
country.
All the six companies will be using one Chart of

Accounts.
MY01
MY02
MY03
BD01
LK01
LK02
TCOA
Since there are 3 different country locations among the

six companies, hence 3 Chart of Depreciations will be
implemented based on the each country specific
requirements,
Codes
TMCA
Page 26
MY01
MY01
MY01
BD01
LK01
LK01
TM
International
Page 27
TM
International
2.3
Financial and Controlling Master Data
Assumption
For Telekom Management Services Sdn Bhd and TM International (L) Ltd (i.e. Labuan), the master data will be structured according to TM International Sdn
Bhd. While for TM International Lanka (Private) Ltd, the master data will be structured according to MTN Networks (Pte) Ltd.
2.3.1 General Ledger

2.3.1.1 General Ledger Account
General Ledger Accounts classify costs, revenues, assets, and liabilities according to their type. They are used as the primary key when posting a financial
transaction and the balance on each Account is reported within the Financial Statements. Each companys G/L accounts are currently maintain ed with more
than 1000 accounts. Each company uses different accounting systems to maintain the accounting functions. For MY01, the accounts areis maintained in
ACCTRAK while for BD01 and MTN, they are maintained in ACCPAC. The current G/L accounts for all the companies are set up differently set up and this
includes the G/L accounts codes. The Chart of Accounts will be revised to reduce the number of accounts in the SAP system by using cost centres / profit
centres. instead.
Account Maintenance:
1. Each Account is to be maintained in Local Currency. This depends on the companys location and the reporting currency. The following will be the
currency setting for each company code.
Company Code
MY01
MY02
MY03
BD01
SL01
SL02
Local Currency
MYR
MYR
MYR
BDT
LKR
LKR
Page 28
TM
International
However for foreign currency bank accounts, the G/L Account shall be maintained in Foreign Currency. However for reporting purpose, it is required to be
converted into Local Currency.
The current structure and coding of the accounts group and accounts number ranges are as follow: TM International Sdn Bhd
Balance Sheet
Investments
- 1040000 to 1049999
Fixed Assets
- 111000 to 119000
Current Assets
- 120000 to 129999
Current Liabilities
- 130000 to 139999
Capital
- 200000 to 299999
Profit & Loss
Revenue
Cost Of Sales
Other Income
Operating Expense
Retain Earnings
- 310000 to 319000
- 32000 to 32999
- 330000 to 349999
- 349000 to 355199
- 355200 to 355299

Balance Sheet
Fixed Assets
- 100000 to 199999
Pre-Operating Exp
- 477000
Capital WIP
- 200000 to 299999
Current Assets
- 300000 to 399999
Current Liabilities
- 376000 to 390999
Long Term Liabilities
- 450000 to 460999 and
- 500200 to 500399
Equity
- 477000 to 500199 and
- 500400 to 501999
Profit & Loss
Revenue
Expense

Balance Sheet
Asset
- 200000 to 235000
Advance, Deposit
- 236000 to 283000
Current Liabilities
- 460000 to 900000
Non Current Liabilities - 433000 to 450000
Equity
- 400000 to 420000
Profit & Loss
Revenue
Expense
- 380000 to 388000
- 570000 to 581000
- 600000 to 639999
- 645000 to 841999
Page 29
TM
International
The proposed Accounts Group and Accounts Number Ranges are as follow: Accounts Group
Fixed Assets
Investment
Current Assets
Cash & Banks
Liabilities
Capital
Revenue
Cost Of Sales
Expense
Conversion Accounts
Accounts Number Ranges

1000000 to 1399999
1400000 to 1499999
1500000 to 1999999
2000000 to 2999999
3000000 to 3799999
3800000 to 3999999
5000000 to 5999999
6000000 to 6999999
7000000 to 7999999
9990000 to 9999999
On the controlling module, the number ranges from 8000000 to 8999999 will be used for Secondary Cost Elements.
2.3.2 Tax Code

A Tax Code is a 2-character code that represents a unique set of specifications for the calculation and reporting of Sales Ttax and Purchase Tax, where
applicable. These specifications include a description, the tax type (Sales or Purchase) and a tax rate. Each country will have its own sets of tax codes.
The following tax codes will be created based on each country: 1.
Output Tax (Sales Tax)
Sri Lanka
A0
0% Output Tax
A1
15% Output Tax
A2
1% Output Tax
Page 30
TM
International
Bangladesh
A0
0% Output Tax
A1
15% Output Tax
2.
Input Tax (Purchasing Tax)
Sri Lanka
V0
0% Input Tax
V1
15% Input Tax
Bangladesh
V0
0% Input Tax
V1
1% Input Tax
V2
2% Input Tax
V3
3% Input Tax
V4
4% Input Tax
V5
15% Input Tax
For Malaysia, no tax code is required at the moment but this has to be reconfirmed during implementation.
2.3.3 Accounts Receivable

2.3.3.1 Customer Account Groups
A Customer represents any person or company to whom goods/services are delivered/performed and invoices are issued, and from whom payments are
received. The customer account groups are used to determine the interval for the account numbers, whether the number is assigned internally by the system
or externally by the user (type of number assignment), whether it is a one-time account and which fields are ready for input or must be filled when creating and
Page 31
TM
International
changing master records. Currently, for MTN and TMIB, all the customer records and transactions are recorded in an external billing system. Hence no subledgers are maintained for the individual subscribers in the current accounting system.
The proposed customer account groups are: 1)
2)
3)
4)
5)
6)
Network Debtors
Interconnect Debtors
Interco
Associates
Employee
Other Debtors
However, Tthe number ranges for each grouping will be determine during implementation. An additional grouping will be reserved for external billing systemuploaded data. The details of the G/L accounts will be broken downeakdown according to the services rendered. The breakdown of the accounts can only be
determined during implementation as it depends on how much detail can the external billing systems can provides. Theseis reserved accounts are not control
account in nature, as there will be direct transaction posting from the external billing system via an interface program.
2.3.4 Accounts Payable

2.3.4.1 Vendors Group
A Vendor represents any person or company from whom goods/services are issued/performed and invoices are received, and to whom payments are issued.
The vendor account groups are used to determine the interval for the account numbers, whether the number is assigned internally by the system or externally
by the user (type of number assignment), whether it is a one-time account and which fields are ready for input or must be filled when creating and changing
master records.
The proposed vendor account groups are: 1)
2)
3)
4)
Local
Foreign
Others
Employee
Page 32
TM
International
5) Inter company
However, tThe number ranges for each grouping will be determined during implementation.
2.3.4.2 House Bank

A House Bank represents a Bank through which a legal entity processes its financial transactions.
2.3.4.3 Bank
A Bank contains all of the information that is required to carry out a financial transaction with that bank. This information, which includes the bank name,
address, national code, and international code(s), is stored centrally within SAP so that all functional areas as required can refer to a common directory. SAP
contains country-specific validation rules for Bank details (e.g. Malaysian bank account numbers cannot exceed 15 digits) to help improve data accuracy.
Bank master records will be maintained during the maintenance of payment details for Customers and Vendors
2.3.5 Fixed Assets

A Fixed Asset represents an item owned by the legal entity that is intended for long-term use and which should be identified individually within its Balance
Sheet. Each company representative will create and maintain its their own Fixed Asset master records locally.
2.3.6 Controlling
2.3.6.1 Primary Cost Element
Primary Costs Elements correspond to cost and revenue relevant General Ledger Accounts. They are a technical requirement of the Controlling (CO) module
and the balance on each Cost Element is reported against a Cost Object, such as Cost Centres and Internal Orders.
Page 33
TM
International
2.3.6.2 Secondary Cost Element

Secondary cost elements have no corresponding G/L Account and, as such, are used to transfer/allocate costs that have no effect on the financial statements,
e.g. transfers between Cost Objects. Any Secondary Cost Elements required by each company will be set-up as part of the system configuration activity.
2.3.6.3 Profit Centres

A Profit Centre is an organisational unit that reflects management responsibility for the operating results of a discrete area of the business. By incorporating
some Balance Sheet items (i.e. Debtors, Creditors, Stock and Fixed Assets), itthey can be expanded into an Investment Centre. Each company code will use
Profit Centres to segregate their location and department activities, but such an approach has to be reconfirmed during implementation. A single dummy Profit
Centre 9999 is to be created.
2.3.6.4 Cost Centres

A Cost Centre represents a discrete area of cost responsibility and is therefore usually aligned with functions/departments. Each company code will set-up the
Cost Centre required to mimic its internal organisation structure and ensure that the cost centres to be defined can segregate its location and department
activities.
2.3.6.5 Internal Order

Internal Oorders may be used to as temporarily monitor cost and/or revenues. These Overhead Oorders may be used as statistical cost collectors to monitor
actual costs independently of organisational cost centre structures. Capital investment orders are used to monitor investment costs, which can be capitalised
and settled to fixed assets. Each company code will create its own Internal Oorders on an as required basis locally.
2.3.6.6 Statistical Key Figure

Statistical Key Figures represent the bases for assessing (allocating) costs between Cost Objects. They are typically based-on headcount, floor-space, sales
volume, and revenue.
Page 34
TM
International
2.4
Financial and Controlling Business Processes
2.4.1 General Ledger

Ref no.
2.4.1.1
Process
component
Master Data
Process
Owners
FI Users
Business flow description
Detail SAP Requirements
G/L master data creation procedure:

The management has set a directiveon that all the companies
under TMI group shall utilise only one Chart of Accounts.
Hence all the creation of accounts must first be approved at
the head office level i.e. Malaysia.
SAP provides facilities in creation of G/L master

data with two levels of authorisation
maintenance.
Upon approval, the G/L account number will be created in the

Chart of Accounts. The head office personnel will update the
subsidiary accordingly.
Hence, bBased on the business process

requirement, the head office personnel will have
authorisation at the in Chart of Accounts Level
while the subsidiary personnel will only have
Company Code Level authorisation.
i) Chart of Accounts Level

ii) Company Code Level
This authorisation setting will prevent subsidiary

personnel from creating new G/L Accounts
without the approval of head office.
2.4.1.2
Financial
Settings
ConsultantFI
Users
Financial Period
The financial reporting period for all the six company codes is
similar. They are reported from 01 January to 31 December
on each year.
Page 35
All the six Ccompany Ccodes will utilise one

fiscal year variant i.e. K4. This fiscal year
variant allows users to post for 12 normal
periods and additional 4 special periods for any
audit adjustments on the following year.
TM
International
Ref no.
Process
component
Process
Owners
However, currently, TMIB closes the financial period on the

every 25th of the month. This practice is due to time taken by
the manual bank reconciliation process. With Hence, with an
earlier closing date, TMIB will be able to meet the due date for
the management reports submission.
All journal entries are required to be approved before posting
into the ledger. Hence, the system is required to block the
specific users from posting entries directly into the ledger.
Only the authorised user is allowed to make actual postings
into the ledger.
2.4.1.3
Journal
Posting
FI Users
2.4.1.4
Journal
Posting
FI Users
It must also be possible to manually pass journal entries and

automatically create journal entries based on information
uploaded from external systems.
SAP facilitates the manual entry of financial

journals into the ledger. The model supports
direct input of journals, document parking
accruals, and recurring entries.
2.4.1.5
Journal
PostingSub
Ledger
Transactions
FI Users
The system will also facilitate sub ledger transactions.
In SAP, all the sub ledgers such as vendor,

customer or assets are posted via a
reconciliation account (i.e. control account).
This reconciliation account is assigned on each
sub ledger on the master record.
2.4.1.6
Journal
PostingIntercompany
Postings
FI Users
From time to time, there will be inter-company postings

generated in the system. Some of the postings requires
official documents to be generated and some dont depending
on the nature of transaction.
SAP facilitates both printing and non-printing of

documents for each inter-company posting
made. Users are required to provide the types
of nature of the transaction for each selection in
Page 36
There are Park and Post functions available in

the G/L module. Hence the authorisation must
be set to two levels. Once group for parking
document and another group for approving the
parked document for posting. Hence the users
to be assigned for each level shall be
determined during the implementation while
developing the during the authorisation matrix
studies.
TM
International
Ref no.
Process
component
Process
Owners

order to predefine the program whether to for
print ing the ofofficial documents via the SAP
system.
Hence Tthese transactions must be traced for consolidation

purpose.
2.4.1.7
InterfacePayr
oll
Transactions
FI
User
Consultant
All six (6) Company codes have their own payroll system.
They are not directly integrated to the accounting system.
Currently, the month end payroll information is posted either
manually or electronically via an interface program.
The
payroll systems used are: MTN Networks (Pte) Ltd
Paypac system
For the consolidation, each SAP G/L account

master record must be assigned to a Group
Account Number.
Hence wWith this
assignment, the system is able to identify each
account number relationship to the consolidation
Chart of Accounts. Determination of the
elimination rules and procedures will be finalised
at implementation.
These payroll systems will continue to operate
within each company code.
Each payroll
system will require an interface program in SAP
in order to generate the posting. The functional
specification of the program shall be determined
during implementation with the assistance of the
payroll systems consultant / key users.

In-house developed payroll system
Page 37
TM
International
Ref no.
Process
component
Process
Owners
TEGAS system
2.4.1.8
External
Billing
System
Interface
FI User /
Consultant

Currently, all the post paid, prepaid, ISP, equipment sales and
etc are performed in external systems. There are multiple
systems used by MTN. They are: 1.
2.
3.
4.
5.
6.
7.
8.
Prepaid system
CCBS
Sales System
ICCBS
Thuraya System
Roaming Systems
Interconnect Billing
EGO System
Depending on each systems nature, each

external system will require an interface
program in SAP to generate the posting. The
functional specifications of the program and
accounting entries shall be determined during
implementation with the assistance of the
systems consultants / key users.
At month end, reports are generated from the external

systems and the finance personnel will perform manual
journal entries into the accounting system.
Currently, all the post paid and prepaid sales are performed in
the external billing system i.e. CCBS.
Page 38
TM
International
Ref no.
Process
component
Process
Owners
The CCBS system will provides the revenue and

cost elements.
With this information, an
interface program will be required in SAP to
generate the postings.
The functional
specifications of the program and accounting
entries shall be determined during the
implementation with the assistance of the
systems consultants / key users.
2.4.1.9
2.4.1.10
Revaluation
Of Foreign
Currency
Reporting
FI Users
FI Users
At month end, each company code will perform revaluation of

foreign currency for the G/L accounts and sub ledgers such as
Customers and Vendors. Hence, the unrealised gain and loss
shall be posted at month end and reversed on the following
month.
SAP provides facilities to perform revaluation of

foreign currency for both G/L accounts and Sub
Ledgers.
However, Aa different exchange rate currency is required for

this function.
For all foreign currency transactions, exchange

rate type M is used for this purpose. A
separate exchange rate type G shall be
maintained for revaluation functions.
The required list of reports are as follow: 1. Balance Sheet
Standard SAP do provides functions to user to

maintain specific financial statements with
Page 39
TM
International
Ref no.
2.4.1.11
Process
component
Consolidation
Reporting
Process
Owners
FI Users
2. Profit & Loss

Both the reports must have columns breakdown with
information such as Actual, Budget, Forecast, Year-To-Date
and Variances.
various versions for different formats. However,

for the columns required information, it may
require the to use of Report Painter or an ABAP
program to create the report. This shall be
determined during the implementation based on
the required reports format.
There areis a few consolidation reports required based on the

different levels of reporting for the group of companies.
As all the six company codes will be utilising

one Chart of Accounts, the consolidation from 1 st
Set to 3rd Set requirement can be performed
using the Consolidation Module in SAP.
1st Set - Consolidation at MTN Consolidation

Consolidate between
1. MTN Networks (Pte) Ltd and
2. TM International Lanka (Private) Ltd
2nd Set Consolidation at TM International (L) Ltd
Consolidate between
1. MTN Networks (Pte) Ltd
2. TM International Lanka (Private) Ltd and
3. TM International (L) Ltd
3rd Set Consolidation at TM International Sdn Bhd
Consolidate between
4. TM International (Bangladesh) Ltd
5. Telekom Management Services Sdn Bhd and
6. TM International Sdn Bhd
Page 40
However for the 4th Set of consolidation, which

is at Telekom Malaysia Berhad level, a program
will be required in SAP in order to download the
consolidated financial statements based on
Telekom Malaysia Berhads consolidation
system requirements i.e. FRANGO. A group
consolidation chart of account is required to be
maintained in SAP i.e. TMCA.
Each G/L
account in the TMI Chart of Accounts i.e. TCOA
will be assigned to one consolidation Chart of
Accounts i.e. TMCA. Only with this mapping,
the program will be able to download according
to Telekom Malaysia Berhads Chart of
Accounts.
During the blueprint workshop, a combined
effort between the process owner, key users
and consultant has been made to buildt a
consolidated Cart of Accounts at TMI level i.e.
TM
International
Ref no.
Process
component
Process
Owners
4th Set Consolidation at Telekom Malaysia Berhad

Consolidate between
11. Telekom Management Services Sdn Bhd and
TCOA. This Chart of Accounts is provided in

available under ATTACHMENT Appendix 1 of
this Blueprint Document.
Page 41
However, for Tthe mapping of TCOA to TMCA

, this will be performed during implementation
stage.
TM
International
2.4.2 Accounts Receivable

Ref no.
2.4.2.1
Process
component
Customer
Master
Process
Owners
FI Users
Remarks
Customer master data creation procedure:

EachAll
individual company code shall
maintain its own sets of customer master
records.
SAP provides facilities to control detail authorisation. Hence,

users from one company code can be blocked from creating or
changing another company codes customer master record.
For MTN and TMIB, no subscriber master record and transaction
shall be maintained in SAP. Thisese data are to be can either be
obtained from the current external billing system. Otherwise, a
data warehousing system shall be needed (if requested) to
provide a more detailed analysis.
2.4.2.2
Customer
Withholding
Tax
FI Users
For TM International and TM International (L)

Ltd has withholding tax on receivables. Which
Hence they are calculated during collection.
SAP has functions to calculate withholding tax based on different

services rendered. They can be calculated during collection and
a separate automatic posting to withholding tax G/L account will
be posted.
The types of services withholding tax codes and tax rates shall
be obtained from users during implementation.
2.4.2.3
Customer
Agents &
Dealer
Treatment
FI Users
Some of the MTN customers such as Agents

or Dealers have multiple branches all over the
nation. It would be beneficial to provide this
relationship reporting on each transaction
made for analysis purposes.
Page 42
In Tthe customer master record for SAP contains a , it has a

field in the Company Code view i.e. Head Office. This field is
referenced to the customer code. Hence, for each customer of
this customer in this group, the branches customer record shall
be mapped have mapping to the head office customer using this
code in this field. With this mapping, the group of customers
transactions can be reported individually or togethercombine.
TM
International
Ref no.
Process
component
Process
Owners
Remarks
However for MTN, the decision whether to utilise SD Module has

yet to be decided. If all the sales transactions are performed in
external systems, hence no customer master records will be
maintained in the SAP system and this function shall not be
valid.
2.4.2.4
Customer
Reconciliation
Account
FI Users
As most of the customer records and sales

transactions are performed in an external
system, the control account in SAP should
allow direct posting.
Standard SAP reconciliation account (control account) does not

allow direct posting. It can only be posted via a sub ledger entry.
However, since all the sub ledger postings are made in external
systems, hence this reconciliation account shall be created as a
normal G/L account instead of as a a reconciliation account.
Only then direct postings can be made. The breakdown of the
customer control account shall be determined during
implementation. This breakdown will be dependant on how
much detail the external systems can provide and as such, the
help of the external . Hence, this information can only be
provided with the help of the systems consultant / key users are
required.
2.4.2.5
Master
DataCredit
Management
FI Users

Credit management check is required at credit
limit or credit due level.
SAP provides functions via credit control area settings to

manage the credit management of each customer.
The
customer record must be extended to the credit control area
LK01. Configuration with facilities to check based on credit limit
and credit due dates shall be made to PREVENT: -
The system shall stop the users from further

posting once the credit limit or credit due date
is exceeded.
The rest of the five company codes do not
require credit management.
Page 43
Sales Order to be generated,

Financial entry in Accounts Receivable to be generated
If the credit limitsy are exceeded.
TM
International
Ref no.
2.4.2.6
Process
component
Master
DataPayment
Terms
Process
Owners
FI Users
Remarks
There are a few payment terms needed

depending on each company codes
requirement.
As mention in the business organization structure, oOnly if MTN

decides to utilise SD module in SAP will this , this function can
only be utilised. Otherwise, no credit management is required.
In SAP, all the payment terms can be shared across
companiesy. Therefore, no repeat payment terms will be
created unless specifically required. The payment terms are: -

0 day, 30 days
Payment Term
C000
C015
C030

0 day, 15 days and 30 days
Description
Payable immediately Due net
Payable within 15 days

0 day, 15 day and 30 days
2.4.2.7
Debit Note /
Credit Note
FI Users
There are no discounts given for early

settlement. For MTN, If scratch card is given
free of charge, no VAT will be charged, hence
the entire whole aamount will is go point to a
discount account.
No discount setting for early payment is needed in the payment

term.
For MTN, the voided VAT posting to discount account for free
scratch card given can be made only if the external billing
system can provide the information in the interface file.
There are sSome transactions such as Rental

are posted made ddirectly in the Finance
Accounts Receivable module. Example such
as rental is posted in Accounts Receivable
module.
SAP allows users to post sub ledger entries via Accounts

Receivable module. It provides creation of debit note and credit
note via different transaction codes.
Page 44
SAP will need a customised form for each company code for
generating a Debit / Credit Memo documents.
Theseis
TM
International
Ref no.
Process
component
Process
Owners
Remarks
documents will be printed and sentd to customer for their
references.
2.4.2.8
Deposits
FI Users
There are lost of A large amount of deposit is

made by the subscribers in the external
systems. Hence reports to provide the list of
deposits for each subscriber will be beneficial.
Since this information is ese data are maintained in the external

billing system i.e. CCBS, list of deposits by subscriber shall be
obtained from the external billing system instead of SAP.
2.4.2.9
Collections
FI Users
There are several payment methods used for

customer collection: 1. Cash,
2. Telegraphic TransferT
3. Cheque
All the mentioned payment methods shall be maintain in SAP.
Only MTN has credit card payment method of

collection.
C
R
S
T
- Cash
- Credit Card
- Cheque
- Telegraphic Transfer
2.4.2.10
Interface
FI Users
MTN and TMIB

As all the subscriber revenues, cost of sales
and payments are performed in the external
billing systems, interface programs are
required to capture all these information into
SAP for financial reporting.
As mention in General Ledger under interface process

component, eEach external system shall have one interface
program depending on the data provided. Hence the revenue,
cost of sales and collections information must be made available
by the external system in order to post accordingly via an
interface program into SAP.
2.4.2.11
Forms Printout
FI Users

The cCurrent system does not provide
reminder letters to defaulted customers. The
In SAP, reminder letters are represented as dunning letters. A

dunning procedure LK01 shall be created in the system and
assigned to each customer records with settings to provide 3
dunning level.
Page 45
TM
International
Ref no.
Process
component
Process
Owners
Remarks
new system shall generate 3 different levels of

reminder letters based on the days defaulted.
TMIB, TMI, TMI Labuan and TMS do not
require reminder letter functions.
During month end, users will execute the dunning letter printout.
The system will verify all the customers transactions. Any
defaulter found, aA dunning letter should be generated
depending on the level to all defaulters. Theis dunning level
represents the number of dunning letters sent to for each
customer for each on each defaulted invoices.
However, Tthis dunning function is only valid if MTN utilises the
SD module to perform sales function for equipment sales,
scratch card sales and etc.
2.4.2.12
Forms Printout
FI Users
All collection requires a receipt to be printed

out from the SAP system.
These receipts must be performed directly in SAP. One

customised form is required in order to print out the receipts for
each collection from customer.
For those receipts made in external billing systems, the official
receipts shall be printed out using the external billing system and
not from SAP.
2.4.2.13
Reporting
FI Users
List all of customer reports required are: 1.
Debtors Age Analysis with user

definable ageing periods.
2.
Outstanding Iitems by Ccustomer
3.
Location / Item wise sales reports
Page 46
All the requested customer reports can only be obtained if sales

transaction are performed in SAP via the sub ledger module
either SD or AR module.
For Rreport 1 and 2 can be provided through , SAP standard
reports and report painter. can be provided. While forFor report
3 and 4, the related se ttransactions data are performed in an
TM
International
Ref no.
Process
component
Process
Owners

4.
Remarks
Commission Ppayable monthly and

cumulative
external billing system. Hence the information cannot be

generated from SAP since there is no such information made
available in SAP. A data warehousing system such as SAP BW
module would be recommended to populate all the information
into one system.
2.4.3 Accounts Payable

Ref no.
2.4.3.1
2.4.3.2
Process
component
Vendor Master
Data
Process
Owners
FI Users
Remarks
Vendor master data creation procedure:

All individual company code shall maintain its
own set of vendor master records.
SAP provides facilities to control detail authorisation. Hence,

Uusers from one company code can be blocked from creating or
changing another company codes vendor master record.
Vendor
Reconciliation
Account
FI Users
Each vendor sub ledger posting must be

automatically posted in the control account for
financial reporting.
No additional step for
posting or reconciliation is required between
the sub ledger and control account.
All the vendor master records in SAP requires a reconciliation

account to be maintained. This reconciliation account is a
mandatory field. Once a posting is made to the sub ledger, an
automatic posting to the reconciliation account is generated
based on the assignment made in the vendor master records.
The reconciliation accounts breakdown are: 1) Local
2) Foreign
3) Others
4) Employee
5) Inter-company
Currently, all the six companies has about 200 vendors for local
Page 47
TM
International
Ref no.
Process
component
Process
Owners
Remarks
and less than 100 for foreign.
2.4.3.3
Vendor
Withholding
Tax
FI Users
All the six company codes have withholding tax

on payable items, which are . Hence they are
calculated during payment.
SAP has functions to calculate withholding tax based on different

services rendered. They can be calculated during payment and
a separate automatic posting to withholding tax G/L account will
be posted.
The types of services withholding tax codes and tax rates shall
be obtained from users during implementation.
2.4.3.4
Payment
Terms
FI Users
There are few payment terms needed for all

the six company codes. They are: 1.
2.
3.
4.
5.
0 day
14 days
15 days
30 days
60 days
Payment Term
V000
V014
V015
V030
V060
There are no discounts given for early

settlement.
2.4.3.5
Advance
Payment
FI Users
In SAP, all the payment terms can be shared across companies.

Therefore, no repeat payment terms will be created unless
specifically required. The payment terms are: -
Advance payment
It will be possible to generate advance
payments and to later set it off against the
actual supplier invoice when it is received.
Page 48
Description
Payable immediately Due net
No discount setting for early payment is needed in the payment

term.
A Special GL indicator for each type of advances will be created.
The indicator will be posted to different advance account based
on the following breakdown: i)
Supplier
ii) Staff
TM
International
Ref no.
Process
component
Process
Owners
Remarks
iii)
iv)
2.4.3.6
Refunds of
Payment
FI Users
2.4.3.7
Petty Cash
Treatment
FI User
2.4.3.8
Vendor Detail
Analysis
FI Users
Government Agencies
Inter-company
Refund Payments
Outstanding payments are checked against the
customers account and the billing department
calculates the refund. This is checked by
finance operations and upon approval the
payment is made to the customer by the billing
department. The system should be able to
make payment to customer.
The system will facilitate maintaining of petty
cash floats for a few divisions such as the
Admin division. These will be used in case of
ad-hoc payments such as lock repairs, etc
where purchase orders does not apply.
SAP allows users to make payments to customers even with the

usage of system print out cheques.
The system should provide facilities to track

payments to suppliers, contractors and dealers.
The system should provide information on
payments made, pending payments and the
future payment commitments.
SAP facilitates detail analysis of vendor, which includes invoices

posted, advances, pending payments, payment made and future
payment commitments. These are available in the standard
reports.
Page 49
Currently these are the approximate number of petty cashiers in

each company code.
MTN about 15 petty cashier (including branches)
TMI Lanka - None
TMIB about 10 petty cashier
TMI about 3
Labuan and TMS None
The petty cash transaction can be performed using either the
cash journal module or Accounts Payable module.
Both
modules allow functions of posting for each expenses and
reimbursement.
TM
International
Ref no.
2.4.3.9
Process
component
Journal
Posting
Process
Owners
FI Users
Remarks
All non-PO invoices raised in the system must

be verified before the actual posting is made.
There are Park and Post functions available in sub ledger

modules such as Accounts Payable. Hence the authorisation
must be set to two levels. Once group for parking document and
another group for approving the parked document for posting.
Hence the users to be assigned for each level shall be
determined during the implementation while developing the
authorisation matrix.
Hence the users to be assigned for each level shall be
determine during implementation during the authorization matrix
studies.
There will be zero tolerance limits for all the invoice postings.
2.4.3.10
2.4.3.11
Payment
Methods
Outgoing
Payment
FI Users
FI Users
There are various payment methods used for

payment. They are: -
All these payment method shall be created in the SAP system

for payment.
1.
2.
3.
4.
5.
6.
C
D
S
T
Telegraphic Transfer
Cheque
Bank Draft
Cash
Letter of Credit
Bank Guarantee
- Cash
- Bank Draft
- Cheque
- Telegraphic Transfer
For Letter Of Credit (LC) and Bank Guarantee (BG) will be using
special GL indicators as a noted item. This facilitates the user to
track the LC and BG in the system.
In most of the six companies, the accounting

system is able to produce system printout
cheque with payment details (detachable)
along with a separate payment voucher for all
Page 50
This function can be provided in SAP. Hence a customised form

for each bank would be required in order to printout the cheques
with payment details and a payment voucher.
TM
International
Ref no.
Process
component
Process
Owners
Remarks
the payments. The banks that are required to

have this be included for this function for SAP
are: MTN Networks (Pte) Ltd
1. Public Bank
2. Deutsche Bank
3. Standard Chartered Bank
For TM International (Bangladesh) Ltd
1. HSBC Bank
3. Eastern Bank Ltd
For TMI International Sdn Bhd,
and
1. Bank Islam Malaysia Berhad
2. Bumiputra Commerce Bank Berhad
2.4.3.12
Outgoing
Payment
Authorisation
FI Users
Segregation of duty for payment processing is

required. The proposal run will be performed by
an Accounts Clerk. The proposal list will be
printed out for review.
Any changes of
payments, for example blocking of invoice
payments, can only be performed by an
Accounts Executive
Page 51
This requirement can be catered via the authorisation control.

The authorisation module in SAP allows the management to
design accordingly to the job functions with the incorporation of
segregation of dutiesy. Hence during implementation, there will
be a matrix template provided by the consultants for the
management to allocate each user to the specific functions.
This matrix will later be used as the basis for the system
administrator to create the user ids and functions accordingly.
TM
International
Ref no.
Process
component
Process
Owners
Remarks
Upon completion of invoice blocking, only the

Accounts Supervisor can perform the actual
payment run i.e. actual payment posting.
All Tthis segregation of duty is required as an
internal control.
2.4.3.13
Recurring
Entries
FI Users
There are some recurring entries at every

month end. These Hence this entries amount
and journal entries are repeated aton every
month end.

For MTN, there are instance where the
recurring entries value changes every year.
For example, rental for based station sites, the
contract can be signed for 5 years and every
year, the payment amount can be different
based on the contract.
Year 1
Year 2
Year 3
Year 4
Year 5
There is a recurring entry function in all the General Ledger,

Accounts Receivable and Accounts Payable module. Hence,
Uusers can set up the recurring entries with the option of choice
of inserting the start date and end date. An additional setting to
restrict this entry to perform once a month is also included to
prevent for in case of double entries.
For this requirement, since each years rental payment varies,

the. The user would have to set up five different sets of
recurring entries to represent 5 different years. In each set, the
user will define the start date, end date, journal entries, amount
and tHence, to add in the setting for recurring once a month
only. With this, on each period end closing steps, the execution
of all the recurring entries would pick up the sets of recurring
entries accordingly.
USD1000 /mth
USD1100 /mth
USD1150 /mth
USD1200 /mth
USD1250 /mth
Page 52
TM
International
Ref no.
Process
component
Process
Owners
Remarks
2.4.3.14
Rental
Advance
Payments
FI Users
In addition to the above example, MTN would

make advance payment to the rental vendor
that and will be drawn down on each month
payment till until the last payment of the
contract.
During the advance payment, a special GL indicator would need

to be included for this vendor and the reconciliation account
assigned would be a rental advance account (automatically
assigned with the usage of the special GL indicator). However,
this amount SHOULD NOT be pickeds up for payment during
automatic payment run. Instead, the draw down of the advance
will be reflected via the above-mentioned recurring entries
journal entry at every period end.
2.4.3.15
Prohibit
Recurring
Expense
FI Users
Some of the expenses, for example electricity

is paid to the same vendor and for the same
project site related. Sometimes, the vendor
may send 2 different invoice numbers for the
same expense incurred for the month. SAP
must prohibit this same expense to be posted
twice in the same month.
Standard SAP does not prohibit users to post the same G/L
Account twice for the same vendor. However there is a checking
function for double entry of same invoice number for the same
vendor. However, since the invoice number is different, it would
require using a different method to cater for this requirement. In
order to have this blocking facility, we would need to utilise the
recurring entry to capture these invoices. Hence, the journal
entry, start date and end date will have to be set up and this
entry can only be executed once a month using the setting in
Interval in months. Normally, recurring entries are executed
in background mode without the need of user to intervene during
the posting. However, for this set of recurring entries, it must be
executed in foreground in order to allow user to change the
amount for posting.
Do take note that once this entry is posted, you will not be able
to execute again. However, users can still perform journal
entries via Accounts Payable but this is up to the management
discretion.
Page 53
TM
International
Ref no.
2.4.3.16
Process
component
Electronic
Bank Interface
Process
Owners
FI Users
Remarks
Electronic Payment and Electronic Bank

Statement
There are 2 functions that all the TMI group of
companies wants to incorporate into SAP.
They are the electronic interface with the bank
for: -
This function can be provided in SAP. Hence a customised

program to download the text file accordingly to each banks
format would be required. During the implementation, the TMI
group of companies user would be required to arrange the
specific banks personnel to communicate with the our SAP
consultant. This arrangement is vital during the early stage of
the project.
1.
2.
Electronic Payment and

Electronic Bank Statement.
Currently, there are no such functions available

in the accounting system. The banks that are
required to be included for this function for SAP
are: -

1. Deutsche Bank
2. HSBC Bank
3. Sampath Bank
1. HSBC Bank
3. Eastern Bank Ltd
Page 54
TM
International
Ref no.
Process
component
Process
Owners
Remarks
and
1. Bank Islam Malaysia Berhad
2. Bumiputra-Commerce Bank Berhad
2.4.3.17
Reporting
FI Users
List of reports required for Accounts Payable

are: -
For report 1, 2 and 3, SAP has standard reports to provide this

information.
1. Overdue Payments
For report 4 to 7, this report would require an ABAP program to
develop the reports.
2. Aged Payables
3. Outstanding Invoices
4. Purchase Commitment
5. Where Bought
2.4.3.18
Cashflow
Reporting
FI Users
6. What Bbought
7.
Price Vvariances
Cashflow Reporting
The system should be able to provide a
Cashflow statements and forecasts taking into
account of aAccounts Rreceivable, Aaccounts
Ppayable and Ppending Ppurchase Oorder
information.
Page 55
In Cash Management Module, with the integration of each G/L

Aaccount, Cashflow Sstatements, Liquidity Forecasts and Cash
Position reports can be generated as and when required. Hence
Tthe assignment of the G/L account to the cash management
object planning level will be determined during the
implementation.
TM
International
2.4.4 Fixed Assets

Ref no.
2.4.4.1
Process
component
Asset Class
Depreciation
Rate
Process
Owners
FI Users
Remarks
There are various asset classes in each TMI

group of companies. Hence each of the user
clases has different depreciation rate for both
book depreciation and tax depreciation rate.
They are: -
All this These asset classes shall be incorporated into SAP.

Hence Aas described in the Mmaster Ddata section, each country
will have its own Chart Of Depreciation. The depreciation rate for
each asset classes to be configured are: -

1. Building Electrical Installation
2. Building - Structure
3. Telecom Equipment
4. Office Equipment
5. Computer Equipment
6. Motor Vehicle
For MTN Networks (Pte) Ltd
Book
Tax
1. Building Electrical Installation
12.5
6 2/3
2.5
6 2/3
2. Building Structure
10
50
4. Office Equipment
20
50
5. Computer Equipment
20
50 100 *
6. Motor Vehicle
20
25
7. Lease Motor Vehicle (capital lease) To obtain later
7. Computer Software
8. Furniture and Fittings
9. Tools Equipment
For
8. Computer Software
100
50 100 *
9. Furniture and Fittings
20
25
10. Tools Equipment
10
50
11. Asset Under Construction (Projects) Nil
Nil
* - Computer hardware and software purchased after 1 April 2004

will 100% depreciated. Prior to 1 April 2004 the rate is 50%. This
Page 56
TM
International
Ref no.
Process
component
Process
Owners
Remarks
is applicable only to tax depreciation rate.

Book
1. Land
1. Land
Nil
Nil
2. Building - Structure
2. Building Structure
10
10
10
20
4. Billing System
4. Billing System
20
20
5. Furniture & Fixture
5. Furniture & Fixture
10
10
6. Computer
6. Computer
25
20
7. Motor Vehicle
7. Office Equipment
20
20
8. Staff Handset (Tool Equipment)
8. Motor Vehicle
20
20
Tax
9. Lease Motor Vehicle (capital lease) To obtain later

10. Staff Handset (Tool Equipment)

and
50
20
11. Asset Under Construction (Projects) Nil
Nil

Telekom Management Services Sdn Bhd and
Book Tax
Tax
Tax
Yr 1
Yr 2
Yr3 >
1. Computer & Peripherals
1.
Computer & Peripherals
20
60
40
Nil
2. Furniture & Fittings
2.
Furniture & Fittings
12.5
30
10
10
3. Motor Vehicle
3.
Motor Vehicle
20
To obtain later
Page 57
TM
International
Ref no.
Process
component
Process
Owners
Remarks
4. Office Equipment
4.
Office Equipment
12.5
30
10
10
5. Other Mobile Equipment
5.
Other Mobile Equipment
12.5
30
10
10
All the TMI group of companies practices

Straight Line Depreciation method.
However, during the business blueprint workshop, a standard

practice of operation was recommended for computers and
telecom system categories.
They should be further distributed into 2 further categories: 1.
Computer Hardware
2.
Computer Software
3.
Telecom Billing System (Software)
4.
Telecom Equipment (Hardware)
All the depreciation will be configured for Straight Line Basis

method. In additional, each asset master record must have the
Inventory Number open to store the Bar Code of each asset.
This field can be allocated up to 25 characters.
2.4.4.2
Asset
Depreciation
Area
FI Users
Currently, the accounting system in each TMI

group of companies can only provide the book
depreciation reporting for all the assets. It was
requested for that SAP to provide reports for
Tax Depreciation Report
and Group
Depreciation Report
for statutory and
management reporting requirement.
There will be 3 depreciation areas allocated for each chart of

depreciation for all the countries: 1.
Book Depreciation
2.
Tax Depreciation
3.
Group Depreciation
Each depreciation areas will show the different valuation of a
Page 58
TM
International
Ref no.
Process
component
Process
Owners
Remarks
fixed asset. They will be assigned with different depreciation
rates via a Depreciation Key. Only the Book Depreciation will
have financial posting to ledger. The other two depreciation
areas will be utilised for reporting purposes.
The computation of the depreciation varies for each company
code.
For MTN Networks (Pte) Ltd,
TMI International Sdn Bhd,
The depreciation will be calculated immediately upon the date of
purchase / capitalisation.
During the 1st year of the asset being acquired, no depreciation
will be charged against the asset. The depreciation begins only
on the 1st day of the following year. However, during the disposal,
it must be fully depreciated for the year. This is only applicable to
book depreciation. For tax depreciation, the depreciation is
calculated immediately upon capitalisation.
2.4.4.3
Asset
FI User
In TMI practice, all the TELCO assets related
Page 59
In addition, the asset useful life for each asset that falls under the
same asset class is the same.
In the asset master record, there are 5 fields that are used for
TM
International
Ref no.
Process
component
Grouping
Process
Owners
Remarks
has various levels of category grouping. In TMI

group of companies, the grouping can be
broken down up till 3 to 4 level. This grouping
will later be use for reporting analysis.
grouping, which can be utilised for this purpose. These 5 fields

are located in Allocation segment: 1. Evaluation group 1
2. Evaluation group 2
These 3 to 4 groupings can be further translated into these 5
available fields during implementation, joint effort between the
consultant and users.
2.4.4.4
Asset Under
Construction
FI User
Project Work In Progress

During project work in progress, various assets
and inventory will be issued to each project
sites. Upon completion, it will then only be
recognised as assets.
In SAP, all project work in progress are termed as Asset Under

Construction. During every period end, each project object
WBS can be settled to a Balance Sheet Account Work In
Progress account.
Once the WBS status has been set to completion, the settlement
will automatically settle to an asset (based on the asset number
assigned) and will be located for depreciation accordingly at
month end.
2.4.4.5
Transfer Of
FI Users
Transfer of Asset from one location to
Page 60
However this practice is only applicable to MTN Networks (Pte)

Ltd at the moment. TM International (Bangladesh) Ltd would
need to decide the method of valuation for the project work in
progress treatment during implementation.
In the master data record of each asset, there is a Time-
TM
International
Ref no.
Process
component
Assets
Process
Owners
Remarks
another
During the course of usage of each asset,
Ttransferring of asset from one location to
another location is a common practice. Hence,
aAt the moment each company uses various
methods to update the asset system differently.
dependant segment (based on date) where user can utilise to

update the location of each asset accordingly. A report can be
obtained to list out the current location and movement made for
each asset.

Currently, all the engineers are assigned with a
palm device. In addition, since each asset is
are assigned with a bar code. T, the engineer
will use the palm device to scan the bar code
and update the new location accordingly.
For TM International (Bangladesh) Ltd,
and
The update of the asset location is to be
maintained manually.
For MTN Networks (Pte) Ltd

An interface program would need to be created to picks up the
text file provided by the palm device to update the asset master
record accordingly. A study between the palm device consultant
and the SAP consultant would be required to determine the
technical specifications.
For TM International (Bangladesh) Ltd,
Users can manually update the asset master record accordingly
once documentation or information is provided when an asset is
moved from one location to another.
However, Tthe security control of allowing specific user to make
changes on asset master record can be controlled using the
authorisation function.
Page 61
TM
International
Ref no.
2.4.4.6
Process
component
Assets
Business
Transaction
Process
Owners
FI User
Remarks
The asset module should be able to provide

functions such as: -
In SAP, the asset module facilitates various functions of business

transactions. They includes: -
1.
Asset Revaluation
1.
Asset revaluation
2.
Tracking repair cost
2.
Capitalising the upgraded item into the asset
3.
Upgrades
3.
Unplanned depreciation
4.
Suspension of depreciation to specific asset
5.
Transfer of asset from one cost centre to another. With

this, depreciation will be charged to the new cost centre.
6.
Periodic depreciation for all asset
7.
Disposal of Asset with or without revenue
8.
Write Off / Scrap
However, for the repair and maintenance, this cost tracking is

performed via the Pplant Mmaintenance module.
2.4.4.7
Assets
Disposal
FI User
There are times where the assets will be are

being disposed based on management
decision or economical savings. It may or may
not result in a compose of profit element.
As mention, SAP provides functions to perform sales of asset

with or without profit. However, MTN has VAT charges to all the
sales of Fixed Asset while TMIB does not incorporate VAT to
asset sales.
All this These sales transactions would require a debit note
document to be printed. Hence tThe debit note in Accounts
Receivable shall incorporate these sales into the program.
Page 62
TM
International
Ref no.
Process
component
Process
Owners
Remarks
2.4.4.8
Reporting
FI User
There is no specific statutory reporting on

assets. However, there should be a report
made available in the system for the following
items: -
All these reports are available in the standard SAP reporting.

However, the format will be strictly according to the standard SAP
reporting.
1.
Asset master list
2.
Asset value, which includes purchase

value, depreciation value for different
depreciation areas.
3.
2.4.4.9
Interface
FI Users
Asset master list with location

MTN has a customised program to generate
bar codes for asset issues.
The store personnel will issue stocks via this
VB program when received a a material
requisition form is received. He/She will print
out the bar code and attach print onto the
equipment.
Page 63
Upon the generation of a bar code in the customised program, a

file is generated and subsequently (Specific to SAP required
structure) stored into a specified location. SAP will then collect
this file and create the following items: 1. Create an asset code based on the file information.
2. Perform a transfer of material from stock to asset based
on the file information and the asset code that created
in step (a).
TM
International
2.4.5 Cost Centre Accounting / Profit Centre Accounting

Ref no.
2.4.5.1
Process
component
Cost Centre
and
Profit
Centre
Structure
Process
Owners
FI Users
Remarks
For MTN, there must be a balance sheet and

profit & loss for each Business Unit: -
Division or departmental expense reporting can be catered using

Cost Centre Accounting in SAP. Each division will be created as
a cost centre to capture all the expenses.
1.
GSM
2.
Internet Service Provider (ISP)
3.
International Business (IB)
For MTN Networks (Pte) Ltd, there is a legal requirement to

provide Balance Sheet and Profit & Loss reporting for each
Business Unit. Profit Centre Accounting will be able to provide
both the reporting to each business unit.
For the rest of the 5 companies in TMI Group of Companies, the
Balance Sheet will be reported at company code level.
Please refer to the proposed structure for Cost Centres and
Profit Centres in SAP.
Page 64
TM
International
Proposed Structure
1.
MTN NETWORKS (PTE) LTD

COST CENTER STRUCTURE
Company Level
MTN
Business Unit
Area / Location
Division/Department
GSM
ISP
IB
Location 1
Location 2
Location 3
Dept 1
Dept 2
The maximum character available for the profit center coding is 10 alphanumeric. The naming convention for the profit center structure is: Company Level
Business Unit
Area / Location
Division / Department
No. of Character
2
2
3
2
With the above structure in place, there is a balance of 1 character, which can be use for future expansion or restructuring.
This structure should be re-confirmed during implementation.
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TM
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PROFIT CENTER STRUCTURE

Company Level
MTN
Business Unit
GSM
Area / Location
Location 1
ISP
Location 2
IB
Location 3
Business Unit
Area / Location
No. of Character
2
2
3
With the above structure in place, there is a balance of 3 characters, which can be use for future expansion or restructuring.
We recommend using the same number of characters for both cost center and profit center coding. Hence, we recommend
to extend 2 zeroes to be placed immediately after the location in order to expand the above structure up to 9 characters.
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TM
International
Proposed Structure
2.
TM INTERNATIONAL (BANGLADESH) LTD

TMIB
Company Level
Area / Location
Sub-Division / Sub-Department
Location 1
Dept 1
Sub-Dept 1
Location 2
Location 3
Dept 2
Sub-Dept 2
The maximum character available for the cost center coding is 10 alphanumeric. The naming convention for the cost center structure is:
No. of Character
Company Level
2
Area / Location
2
2
Sub-Division / Sub-Department
2
Page 67
TM
International

Company Level
TMIB
Area / Location
Location 1
Location 2
Location 3
Area / Location
No. of Character
2
3
We recommend using the same number of characters for both cost center and profit center coding.
Hence, we recommend to extend 4 zeroes to be placed immediately after the location in order to expand the above structure up to 8 characters.
Page 68
TM
International
Proposed Structure
3.
TM INTERNATIONAL SDN BHD

TMI
Company Level
Country / Location
Company
Country 1
Country 2
Company 1
Company 2
Dept 1
Dept 2
Country 3
The maximum character available for the cost center coding is 10 alphanumeric. The naming convention for the cost center structure is: Company Level
Country / Location
Company
No. of Character
2
2
2
1
With the above structure in place, there is a balance of 3 characters, which can be used for future expansion or restructuring.
Page 69
TM
International

TMI
Company Level
Business Unit
Area / Location
Country 1
Country 2
Company 1
Company 2
Country 3
Country / Location
Company
No. of Character
2
2
2
Hence there is balance of 4 characters, which can be use for future expansion or restructuring.
We recommend using the same number of characters for both cost center and profit center coding.
Hence, we recommend to extend 1 zero to be placed immediately after the location in order to expand the above structure up to 7 characters.
For TM International (L) Ltd and Telekom Management Services Sdn Bhd, both cost center and profit center will be located at company code level.
No detail structure of cost center and profit center is required. This structure should be re-confirmed during implementation.
Page 70
TM
International
Ref no.
2.4.5.2
Process
component
Budget
/
Report
Process
Owners
FI Users
Remarks
The yearly budget amount should be available

in the system to be used as comparison for
variance analysis. In addition, the system
should be able to provide reports to analyse
based the actual sales (flexible budget) and
change the cost of sales accordingly for
comparison purposes in addition to the yearly
budget.
The yearly budget information can be either uploaded using SAP

excel template or keyed in manually. Version 0 will be
assigned to this final version of budget. We will provide another
version 1 in case management decides to have different
budget versions for comparison purposes.
This budget covers both Profit & Loss and

Balance Sheet. Hence there should be reports
for both to provide the comparison for
variances.
2.4.5.3
Budget
Control
FI Users
All operating expenses and capital expenditure

shall have budget control. Whether it is for
company purposes or project related, each
posting shall be checked against the budget
before releasing for payment.
However, for flexible budgeting, since the dependency of the

cost of sales is on the revenue element, either a report painter
report or an ABAP program will be needed to cater for this
requirement in order to capture the comparison analysis.
For the Balance Sheet, the plan data shall be inserted via Profit
Centre Planning.
In order to have the budgetary control for both operating

expense and capital expenditure, Funds Management module
must be activated. Each of the G/L accounts will be mapped to
a Fund Management object i.e. Commitment Item. The Cost
Centre will be mapped to Fund Centre in Funds Management.
Hence, the planning/budget data in the Cost Centre will be
transferred into Funds Management.
With this data located in Funds Management, every posting
made whether in Project System, Material Management or Plant
Maintenance, will be checked against the Fund Centre and
Commitment Item to verify against the availability budget.
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TM
International
Ref no.
Process
component
Process
Owners
Remarks
Through authorisation, Funds Management allows specific users
to perform funds transfer, increase budgets, and release specific
transaction if any transactions are blocked for posting due to the
budget being exceeded.
The mapping of the G/L account and Cost Centre to Funds
Management shall be determined during the implementation
stage.
2.4.5.4
Cost
Allocation
FI User
Certain expenses require to be allocated at

every month end. SAP shall provide functions
to allocate this cost based on either headcount
or floor size as the basis of allocation.
In Cost Centre Accounting, 2 methods of allocation are available

i.e. using distribution or assessment. Both functions provide
various allocation basis (with the use of statistical key figure for
headcount or floor size) to allocate cost from one cost centre to
another.
2.4.5.5
Reporting
FI Users
The system shall be able to provide detail

transaction posting of each division / cost
centre for analysis.
The are various standard delivered SAP cost centre report as

follows:
1. List Of Cost Centre / Profit Centre Report
2. Plan Vs Actual Reporting
3. Planning Report
4. Line Item Reports and etc.
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TM
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2.4.6 Internal Order

Ref
no.
2.4.6.1
Process
component
Internal
Order Type
Process
Owners
FI Users
Remarks
There are various types of costs that need to

be captured for further analysis. They are:
Each of the 6 items will be created as an internal order type.

Hence each of them will havehas different characteristics.
1.
Staff
- To track staff claims
2.
Motor Vehicle
- To track fuel and other expense related

cost
3.
Sales Promotion
- To track sales promotion cost
4.
5.
Project (TMI)
- To track investment projects
Project (MTN)
For Staff and Motor Vehicle order type, they will be created as a
statistical order. There are no settlement steps required at
month end. This order is used merely for analysis purposes.
Hence, during posting, the expense that need to point to this
order will have to insert a real CO Object i.e. Cost Center or
WBS Element together with this statistical internal order.
For Sales Promotion, Project (TMI), Project (MTN) and
Import/Clearing Inventory order, they will be created as this order
are real orders or real CO Objects. The nature of these orders
would require the expenses to be settled to various objects i.e.
G/L Account, Material No. or etc. Hence, settlement would need
to be performed at every month end.
- This is used for tracking site cost after

the base station has beenbeing assetised.
6.
Import/Clearing Inventory
- This is used for tracking all expenses
incurred for a particular inventory. Hence,
at month end, if the order is still pending, it
will be transferred to a balance sheet
account as Import/Clearing account. If the
order is completed, the entire cost will be
settled into inventory.
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TM
International
Ref
no.
2.4.6.2
Process
component
Reporting
Process
Owners
FI Users
Remarks
Reporting of each the internal orders must be

provided as and when required.
Whenever an accounting entry is being posted, immediately

each CO object related will immediately capture the data
accordingly. In the Internal Order module, there are some SAP
standard reports which can be used for further analysis: i)
List of Internal Orders
ii) Actual Line Items

All tThese reports can be exported into Ms Excel for further
analysis.
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TM
International
2.5
Interfaces
No.
2.5.1
Direction
Outbound
External Application
Telekom
Berhad
chart
accounts template
2.5.2
Inbound
Payroll System
of
Description
Report / Program to download the consolidated
financial information using Telekom Berhad Chart of
Accounts.
Remarks
ABAP Program to generate flat file.
Customise Program to upload payroll data for: MTN Networks (Pte) Ltd
Paypac system
ABAP Program.
May require one for each system depending on
the information provided.

In-house developed payroll system
TEGAS system
2.5.3
Inbound
Customer Billing System
Customise Program to upload revenue, cost,

collection and payment data for: -
ABAP Program to interface with SAP for each

system

1.
Prepaid system
2.
CCBS
3.
Sales System
4.
ICCBS
5.
Thuraya System
6.
Roaming Systems
7.
Interconnect Billing
8.
EGO System
Page 75
TM
International
No.
Direction
2.5.4
Outbound
Electronic
Application
Bank
Payment
Description
1.
CCBS System
Remarks
Electronic Payment
ABAP Program
1.
2.
3.
4.
Deutsche Bank
Standard Chartered Bank
HSBC Bank
Sampath Bank

1.
2.
3.
HSBC Bank
Eastern Bank Ltd

1.
2.
2.5.5
Inbound
Electronic
Application
Bank
Statement
Bank Islam Malaysia Berhad

Bumiputra-Commerce Bank Berhad
Electronic Bank Statement

Page 76
ABAP Program
TM
International
No.
Direction
Description
1.
Deutsche Bank
2.
3.
HSBC Bank
4.
Sampath Bank
Remarks

1.
2.
3.
HSBC Bank
Eastern Bank Ltd

1.
2.
Bank Islam Malaysia Berhad

Bumiputra-Commerce Bank Berhad
2.5.6
Inbound
Asset Bar Code System
Interface file between Palm Device to Asset Master

Record to update asset location
ABAP Program
2.5.7
Inbound
Asset Bar Code System
Interface between the customise program VB in

order to picks up the file and create an Asset
Master Record. Immediately, this asset number
and the file will be used for issuing inventory to
asset via Material Management module.
ABAP Program / IDOC
Page 77
TM
International
2.6
No.
List of Customised Reports and Forms

Area
Customer Ageing
Description
Ageing Report for customer
SAPScript / ABAP Program

Report Painter / ABAP Report
Vendor Ageing
Ageing Report for vendor
Actual Vs Flexible
Budget Report
Flexible budget / Actual report analysis
Debit Note / Credit Note
SAPScript
3 different Dunning Letter for 3 different Dunning Level to customer
Customers Receipt
Official Receipts for collections
Cheques
System Printout Cheques and Payment Detail (Detachable)

Payment Voucher
Customer
Credit Note
Debit
Customer
Letter
Reminder
Page 78
TM
International
3 Project System
3.1
Scope of Project System
Project Management is heavily used by MTN and TMIB. 90% of MTN and TMIB projects arewill be related to the building and enhancement of Base Stations,
which are primarily Site Rollout Projects. For TMI, Project Management is occasionally used to manage its Merger & Acquisition Projects and Product
Development Projects.
There are 7 business scenarios identified for TMI, TMIB and MTN. Each business scenario is handled differently in the aspects of project management.
These scenarios are all within the scope of SAP Project System (PS) in their related project management processes
The 7 Business Scenarios identified are: 1. Site-Rollout Project
2. Network Development Project
3. IT Project
4. Sales & Distribution Project
5. Special Project
6. Merger & Acquisition Project
7. Product Development Project
SAP PS, as a tool, will provide TMI, TMIB and MTN with better control of project work scope, shorter timeframe for project implementation and tighter control
on capital and operating expenditures within any project management undertaken.
Terminology
Work Scope
Time Frame
Capital Expenditures (CAPEX) and Operational Expenditures (OPEX)
Description
The task and activities to complete in order to accomplish a project
The start date, end date and duration provided for every task and activity.
The costs incurred for a project, that must be within the limit of a given budget
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TM
International
3.2
Project System Organissational Structure
The purpose of the Organisational Structure for SAP PS is to present a controlled way to define and classify a project organisation structure for PS related
business processes, as well as assignment of Financial, Controlling, Material Management and Project System organisational objects and master data into this
structure. This assignment to other areas of finance and logistics enables the SAP PS to present data in a clear and concise manner.
Description of the purpose of the org structure for PS
Page 80
TM
International
3.2.1 Organisational Structure Diagram

Project Definition
Controlling Area
Company Code
Profit Centre
Plant
WBS Element
Company Code
Profit Centere
Plant
Network
Plant
Profit Centre
Activities
Internally Process Activities
Plant
Profit Centre
Material Component
Purchasing Organisation
Purchasing Group
Storage Location
Plant
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TM
International
3.2.2 Organiszsational Structure Definitions

3.2.2.1 Project System Organisation Data Definitionss
Project Organisation Structure that is created using SAP PS.
R/3 structure
Definition
Codes
Project Definition
The project definition is an outline of all

objects created within a project.
Project Definition is taken to represent the name of the

project undertaken
SAP will generate a code base on

the coding structure. Please refer
to section 3.2.3 Propose
Organizational Coding Structure
WBS
The Work breakdown Structure (WBS) is

a model of the project that organises the
projects tasks into a hierarchical structure
A WBS Element is taken to represent a breakdown of

area of responsibilities. This may be division at higher
level, departments at mid-level, task groups at lower
level.
SAP will generate a code base on

the coding structure. Please refer
to section 3.2.3 Propose
Organizational Coding Structure
Network
A network represents the flow of a project

or of a task within a project
Network is a necessary component as it encompasses

the entire series of activities
For each new Network created,

system will generate a unique
code between the range of 90000
to 90999
Activities
Activities describe the various tasks and

work involved in the project, and the
temporal
and
casual
relationships
between these tasks.
A Task Group (WBS) will need to conduct a series of

activities. Its activities are also inter-related to other
task groups activities, which then form the entire work
scope of a project.
These activities are linked
together in relationships to one another that are either
sequential or parallel.
For each new activity created,

code in the range of 1000 to 9999
Material Codes as created and
defined in Material Management
Page 82
TM
International
R/3 structure
Internally Process
ActivitiesMaterial
Component
Definition
Internally Process Activities are activities

performed or used as objects within the
organisation.
Internally Process Activities are selected in view of its

following characteristics:
Note: There are 4 type of Activities in SAP

Project System but Internally Process
Activity is identified to be suitable for TMI,
TMIB and MTN business needs Material
Components are the different types of
materials that are required for an activity.
Material
ComponentMilesto
nes
Material Components are the different

types of materials that are required for an
activity. Milestones are used to mark the
transition between various phases.
Duration.
Start and a defined finish.
Processed without interruption.
Resources to execute them.
Incur costs.
Codes
These are used to monitor the project progress in the

aspects of schedule and datelines.Within some
activities will be a list of material components needed
to do the job or build the construction.
Within some activities will be a list of material
components needed to do the job or build the
construction.Milestones are needed to mark the
phases of completion within the project. They are
used to control payments vendors.
Page 83
The Material Codes as created

and defined for the materials in
Material Management
For each new activity created,
code in the range of 8000 to 8999
TM
International
Note: The formation of a project organisation structure will be elaborated in more comprehensive detail under Chapter 3.4 Business Processes.
3.2.2.2 Definition not the same as the org structure defined.

3.2.2.3
3.2.2.4 Accounting Organisational Data Definitions
Accounting Organisation Structure that is used for the Project Organisation structure.
R/3 structure
Controlling Area
Definition
Organisational unit within a company. It is
used to represent a closed system for
cost accounting purposes
Decided implementation
Controlling Area code.
Company Code
Legal entity.
A company code has its own general
ledger and can generate its own P&L
Statement and Balance Sheet.
Six company codes will be implemented under one

Controlling area. They are: -
1.
2.
3.
4.
5.
6.

Page 84
Codes
Please refer to Chapter 2:
Financial Accounting and
Controlling Section 2.2.2
Organisation Structure
Definitions
Definitions
TM
International
R/3 structure
Profit Centre
Definition
Organisational unit in Accounting that
reflects a management-oriented structure
of the organisation for the purpose of
internal control.
Optional entry to be decided. The Profit Centre in
which the project belongs to.
Responsible Cost
Centre
A Responsible Cost Centre represents a

discrete area of cost responsibility. It is
aligned with the functions/departments
within an organisation that are involved in
a project.
Optional entry to be decided. The Responsible Cost

Centre that is responsible for the work performed in a
WBS element.
Codes
Definitions
Definitions
3.2.2.5 Logistic Organisational Data Definitions

Logistic Organisation Structure that is used for the Project Organisation structure.
R/3 structure
Purchasing
Organisation
Definition
An organisational unit subdividing an
enterprise according to the requirements of
purchasing. It procures materials and
services, negotiates conditions of purchase
with vendors, and is responsible for such
transactions. The following forms of
procurement available in SAP are as
follow:
Company specific purchasing Organisations will be
established for each company code to be defined.
Codes
Material Management Section
4.2.2 Organisation Structure
Definitions
Corporate-group-wide
A purchasing Organisation procures for
all the company codes belonging to a
client.
Company-specific
Page 85
TM
International
R/3 structure
Definition
A purchasing Organisation procures for
just one company code.
Codes
Plant-specific
A purchasing Organisation procures
for a plant
Purchasing Group
The purchasing Organisation is further

subdivided into purchasing groups (buyer
groups), which are responsible for day-today buying activities.
Purchasing groups will be defined based on functional

buying groups.

Definitions
Storage Location
Storage locations allow the differentiation

of material stocks within a plant. Inventory
management on a quantity basis is carried
out at the storage location level. Physical
inventory is executed at storage location
level.
Storage location codes will be defined based on

physical storage location and functional use of stored
materials.

Definitions
Plant
A plant is a place where either material is

produced, or goods and services are
provided.
The central office for the TMIB, MTN and TMIB will be
represented as plants. All branches will also be
represented as plants.

Definitions
A Country
Country
1. Malaysia
1 character
1. M
Page 86
TM
International
2. Bangladesh
3. Sri Lanka
BBB Strategic Business Units or Companies
Strategic Business Units
1. MTN - IB
2. MTN - GSM
3. MTN - ISP
Companies
3. Telekom Management Services Sdn Bhd
6. TM International Langka (Private) Ltd
2. B
3. L
3 characters
IBL
GSM
ISP
MY1
MY2
MY3
BD1
LK1
LK2
CC Business Scenarios
2. IT Projects
2 characters
1. ND
2. IT
DDD Sub-categories
1. Base Station Sub-System
2. Network Switching Sub-System
3. Value Added Services
4. Transmission
5. Infrastructure
6. Enterprise Business System
3 characters
1. BSS
2. NSS
3. VAS
4. TRN
5. INF
6. EBS
Page 87
TM
International
EE Year Project Approved

NN
eg:
Year 2004
Year 2005
2 numerals
01 to 99
FFF Projects for implementation in running number

NNN
eg:
Project Number 1
Project Number 10
GG Position breakdown (At Level 2 of WBS)
NN
3 numerals
001 to 999
H sub-level of GG (At Level 3 of WBS)

N
1 numerals
1 to 9
04
05
001
010
2 numerals
01 to 99
Page 88
TM
International
3.2.2.6 Sales & Distribution, Special Project, Merger & Acquisition and Product Development
The Business scenarios for Sales & Distribution, Special Project, Merger & Acquisition and Product Development Projects may be assumed to have very
similar project coding structure. They are as proposed below: -
Level 1
<A/BBB.CC.DD.EEE>
e.g. B/TMB.SM.05.001
Level 2
<A/BBB.CC.DD.EEE> <FF>
<A/BBB.CC.DD.EEE><FF>
e.g. B/TMB.SM.05.001-01
Level 3
e.g. B/TMB.SM.05.001-02
<A/BBB.CC.DD.EEE><FF><G>
e.g. B/TMB.SM.05.001-01-1
Page 89
TM
International
Note: The example above has been illustrated to Level 3 but in SAP we have the option to expand the hierarchy down to 99 levels
The Coding structure for the above is as follows

A/BBB.CC.DD.EEE-FF-G
Note: The following are the coding descriptions and sample coding data
These projects do not have sub-categories
A Company
Country
1. Malaysia
1 character
1. M
Page 90
TM
International
2. Bangladesh
3. Sri Lanka
1. MTN - IB
2. MTN - GSM
3. MTN - ISP
Companies
2. B
3. L
3 characters
1. IBL
2. GSM
3. ISP
1.
2.
3.
4.
5.
6.
MY1
MY2
MY3
BD1
LK1
LK2
1. Sales & Marketing Project
2. Special Projects
3. Merger & Acquisition
4. Product Development
2 characters
1. SM
2. SP
3. MA
4. PD
DD Year Project Approved

NN
Eg:
Year 2004
Year 2005
2 numerals
01 to 99
04
05
Page 91
TM
International
EEE Projects for implementation in running number

NNN
eg
Project Number 1
Project Number 10
3 numerals
001 to 999
FF Position breakdown (At Level 2 of WBS)

NN
2 numerals
01 to 99
G sub-level of FF (At Level 3 of WBS)

N
1 numerals
1 to 9
001
010
Page 92
TM
International
3.2.2.7 Site Rollout Project

To be Determined: The following is a proposed coding structure. There is no confirmation made during the workshop and may have to be deferred to during
SAP realization stage.
Level 1
<A/BBB.CC.DDDD.EE.FFF>
e.g. B/ISP.SR.ST01.05.001
Level 2
<A/BBB.CC.DDDD.EE.FFF><GG>
e.g. B/ISP.SR.ST01.05.001-01
Level 3
<A/BBB.CC.DDDD.EE.FFF><GG>
e.g. B/ISP.SR.ST01.05.001-02
<A/BBB.CC.DDDD.EE.FFF><GG><H>
e.g. B/ISP.SR.ST01.05.001-01-1
Page 93
TM
International
Note: The example above has been illustrated to Level 3 but in SAP we have the option to expand the hierarchy down to 99 levels
The Propose Coding structure for Site Rollout Project is as follows

A.BBB.CC.DDDD.EE.FFF-HH-I
Note: The following are the coding descriptions and sample coding data
Site Rollout projects have an additional site-rollout code of 4 alphanumeric
A Country
Country
1. Malaysia
2. Bangladesh
1 character
1. M
2. B
Page 94
TM
International
3. Sri Lanka
1. MTN - IB
2. MTN - GSM
3. MTN - ISP
Companies
3. L
3 characters
o
IBL
GSM
ISP
TML
MY1
MY2
MY3
BD1
LK1
LK2
Site-Rollout Project
2 characters
1. SR
DDDD Site identification

XXXX
eg
They are in 4 characters
4 alphanumeric
0000 to ZZZZ
EE Year Project Approved
2 numerals
ST04
ST05
Page 95
TM
International
NN
Eg:
Year 2004
Year 2005
01 to 99
FFF Projects for implementation in running number

NNN
Eg:
Project Number 1
Project Number 10
GG Position breakdown (At Level 2 of WBS)
NN
3 numerals
001 to 999
H sub-level of GG (At Level 3 of WBS)

N
1 numerals
1 to 9
04
05
001
010
2 numerals
01 to 99
Page 96
TM
International
Project
L/GSM.ND.BSS.05.001
L/GSM.ND.BSS.05.001
WBS
(Level 1)
L/GSM.ND.BSS.05.001-01
3.2.3 Proposed Coding Structure for Projects

The coding structure dictates the naming convention
each project created
in SAP. It helps differentiate each project for the seven business
WBS or reference for
WBS
WBS
scenarios identified for TMI, TMIB and MTN. The
elements within
a project are provided
(LevelWBS
2)
(Level 2)
(Level 2) normally pre-fixed with the code for the project. This provides a
relationship between the WBS elements and with the project to which they belong. In addition the coding, also functions as a reference in determining the
hierarchical level of the WBS Elements within the project organisation structure.
Sample Project Coding Structure
L/GSM.ND.BSS.05.001-01-1
L/GSM.ND.BSS.05.001-02-1
L/GSM.ND.BSS.05.001-02-2 L/GSM.ND.BSS.05.001-02-3
WBS
WBS
WBS
(Level 3)
(Level 3)
(Level 3)
Page 97
L/GSM.ND.BSS.05.001-03-1
WBS
WBS
(Level 3)
(Level 3)
TM
International
3.2.3.1 Naming Convention for the Coding Structure

S/No.
Object Type
Country
Description / Representation
1. Malaysia
2. Bangladesh
3. Sri Lanka
1. MTN - IB
2. MTN - GSM
Naming Convention
1. M
2. B
3. L
1. IBL
2. GSM
Page 98
TM
International
S/No.
Object Type
Companies
Business Scenarios
Network Development and

IT Types
Year Project Approved
Description / Representation
3. MTN - ISP
2. IT Projects
3. Sales & Marketing Project
4. Special Projects
5. Merger & Acquisition
6. Product Development
7. Site-Rollout Project
1. Base Station Sub-System
2. Network Switching Sub-System
3. Value Added Services
4. Transmission
5. Infrastructure
6. Enterprise Business System
Year where the project is planned to start.
Use the last 2 digits for the year. For example, 2005 would be represented
as 05.
Page 99
Naming Convention
3. ISP
1. MY1
2. MY2
3. MY3
4. BD1
5. LK1
6. LK2
1. ND
2. IT
3. SM
4. SP
5. MA
6. PD
7. SR
1. BSS
2. NSS
3. VAS
4. TRN
5. INF
6. EBS
00 to 99
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3.2.3.2 Coding Structure for Site-Rollout Projects

The following is the proposed coding structure for Site-Rollout Projects:
A/BBB.CC.DDDD.EE.FFF-GG-H
Coding Level
Project Definition
WBS Level 1
WBS Level 2
WBS Level 3
Coding Structure
A/BBB.CC.DDDD.EE.FFF
A/BBB.CC.DDDD.EE.FFF
A/BBB.CC.DDDD.EE.FFF-GG
A/BBB.CC.DDDD.EE.FFF-GG-H
Example
L/GSM.ND.BSS.05.001
L/GSM.ND.BSS.05.001
L/GSM.ND.BSS.05.001-01-1
Coding Structure Representation:
Character
Usage
Field Length
Field Type
A
B
C
D
E
F
G
H
Country
Strategic Business Units or Companies
Business Scenario
Site Number
Project to implement for year
Level 2 of WBS element
1
3
2
4
2
3
2
1
Character
Character
Character
Alphanumeric
Numeric
Numeric
Numeric
Numeric
Number
Range
0000 - ZZZZ
00 99
001 999
01 99
1-9
Key Differentiator in the Coding Structure for Site-Rollout Projects: Site Number
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3.2.3.3 Coding Structure for Network Development Projects and IT Projects

Network Development Projects and IT Projects share a similar coding structure. The following is the proposed coding structure:
A/BBB.CC.DDD.EE.FFF-GG-H
Coding Level
Project Definition
WBS Level 1
WBS Level 2
WBS Level 3
Coding Structure
A/BBB.CC.DDD.EE.FFF
A/BBB.CC.DDD.EE.FFF
A/BBB.CC.DDD.EE.FFF-GG
A/BBB.CC.DDD.EE.FFF-GG-H
Example
L/GSM.ND.BSS.05.001
L/GSM.ND.BSS.05.001
L/GSM.ND.BSS.05.001-01-1
Character
Usage
Field Length
Field Type
A
B
C
D
E
F
G
H
Country
Business Scenario
Network Development and IT Types
1
3
2
3
2
3
2
1
Character
Character
Character
Character
Numeric
Numeric
Numeric
Numeric
Number
Range
00 99
001 999
01 99
1-9
Key Differentiator in the Coding Structure for Network Development Projects and IT Projects: Network Development and IT Types
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3.2.3.4 Coding Structure for Sales & Distribution Projects, Special Projects, Merger & Acquisition Projects, Product
Development Projects
Sales & Distribution Projects, Special Projects, Merger & Acquisition Projects and Product Development Projects share a similar coding structure The following
is the proposed coding structure:
A/BBB.CC.DD.EEE-FF-G
Coding Level
Project Definition
WBS Level 1
WBS Level 2
WBS Level 3
Coding Structure
A/BBB.CC.DD.EEE
A/BBB.CC.DD.EE
A/BBB.CC.DD.EE-FF
A/BBB.CC.DD.EE-FF-G
Example
B/ LK1.SD.05.001
B/LK1.SD.05.001
B/LK1.SD.05.001-01
B/LK1.SD.05.001-01-1
Character
Usage
Field Length
Field Type
A
B
C
D
E
F
G
Country
Business Scenario
1
3
2
2
3
2
1
Character
Character
Character
Numeric
Numeric
Numeric
Numeric
Number
Range
00 99
001 999
01 99
1-9
Key Differentiator in the Coding Structure for other Projects: No Site Number and Network Development and IT Types
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3.3
Project System Master Data
3.3.1 Organisation Data

SAP PS uses the Master Data created in SAP FICO in its project organization structure. The master data are stored within the SAP R/3 Accounting
Organisation Structure as listed below: R/3 structure
Controlling Area
Definition
Organisational unit within a company. It is used to represent
a closed system for cost accounting purposes
Controlling Area code.
Company Code
Legal entity.
A company code has its own general ledger and can
generate its own P&L Statement and Balance Sheet.
Six company codes will be implemented under one Controlling

area. They are: -
Profit Centre
Cost Centre
Organisational unit in Accounting that reflects a

management-oriented structure of the organization for the
purpose of internal control.
A Cost Centre represents a discrete area of cost
responsibility and is therefore usually aligned with
functions/departments. Each company code will set-up the
Cost Centre required to mimic their internal organization
structure and ensure that they can segregate their location
and department activities.
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Optional entry to be decided. The Profit center in which the project
belongs to.
Optional entry to be decided. The Cost centre which is responsible
for the work done for the particular WBS element.
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Plant
A plant is a place where either material is produced, or goods

and services are provided.
Optional entry to be decided. As there are no in-house produced

materials
SAP Project Systems Master Data forms the foundation for creating the Project Organisation Structure. In SAP PS, there are two types of Master Data.
Master Data that is predefined in Accounting (Financial and Controlling) and Logistic (Material Management), and defaulted to the Project Organisation
Structure at each Project Creation.
Master Data that is unique to the Projects WBS Elements, Network, Activities, Milestones and Material Components and is manually keyed in to the
Project Organisation Structure at each Project Creation.
3.3.2 Calendar and Time Unit

SAP uses a preset factory calendar (which is usually the Roman Calendar) and time unit (which is usually in days). TMI, TMIB and MTN could have the
option to define their own calendar period and time unit. The settings are explained in clearer details in SAP Material Management blueprint. SAP Project
System uses the preset calendar to set the start and finish dates of activities, the duration as well as the float times.
3.3.3 Operative Indicators

With operative indicators, we can specify the attributes of a WBS element and determine which tasks the WBS element can carry out in the project, whether as
a planning element or an account assignment element. If planning element indicator is set, we will be able to do cost planning for the WBS. And if account
assignment indicator is set we will be able to do posting of actual and commitment costs to the WBS. These indicators are represented as check boxes within
a WBS.
3.3.4 Project Definition

Data Type
Project Definition
Project Profile
Person Responsible
Start Date, End Date
Controlling Area
Description
Project Coding structure for the identified Business Scenario
The Profile describing the project belonging to
The project manager for the project
The initial planned start and completion date of the project
The controlling area for the project
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Company Code
Plant
Profit Centre
Project Currency
Time Unit
The company code where the project belongs to

The plant code where the project is assigned to
The profit centre where the project is assigned to
The currency used by the organisation
The unit of time used for the project e.g. Day, Hour
3.3.5 WBS Elements

Data Type
WBS Element
Project Type
Priority
Operative Indicators
Description
Project Coding structure for the identified Business Scenario
The criteria for a project e.g. Site Rollout Project
Define the urgency for the project e.g. High, Low Medium
Planning Element
Indicator for WBS to be able to plan costs
Account Assignment Element
Indicator for WBS to accept actual and commitment posting
Person Responsible
Responsible Cost Centre
Statistical
Integrated Planning
The team leader, or group leader for the task (or WBS)
Cost Centre of the team or group where the task is assign to
Indicator, if set, will specify the WBS statistical purpose only and cannot accept actual costs.
Note: If this is not set, the WBS can be classified as a CAPEX WBS
When you create or incorporate new WBS elements, the value is taken from the project definition
3.3.6 Network
Data Type
Network Element
Start Date and End Date
Scheduling Type
Description
System generated code for the Network
The initial planned start and completion date of the project
Specifies the scheduling type for detailed scheduling of the project eg Forward Scheduling where all
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activities are planned from start date of the project.
3.3.7 Activity
Data Type
Activity
Note: This is for the Internal Process Activity as
identified for use for TMI, TMIB and MTN in section
3.2.2.1 Project System Organisation Data Definition.
Scheduling:
Description
System generated code for the Activity
Normal Duration
The duration for the activity
Factory Calendar ID
Calendar Period of the organisation
3.3.8 Milestone
Data Type
Milestone
Usage
Release Stop indicator
Offset Activity
Description
System generated code for the milestone
To specify the use of the milestone
Use as a indicator to prevent the next activity from execution without the Person Responsible
knowledge
Indicators to specify that the milestone is offset to the latest dates of the activity
3.3.9 Material Components

Data Type
Material
Plant
Item Category
Description
The material code which is required by project
The plant where the material is located
To indicate if the item is a stock (L) or non-stock (N)
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Data Type
Reservation Number
Requirement Quantity
Requirement Date
Offset
Recipient
Unloading Point
Quantity Withdraw
Commitment Quantity
Reservation for network:
Description
System generated reservation number at project implementation
Note: Reservation number will only be generated for Stock Item
Quantity of material required
Date material is to be issued to project
The follow-up time or the lead time in relation to the requirement date
Specify the recipient for whom the material or service is issued to
Specify a point in which material to be unloaded
Specifies the quantity already withdrawn
Quantity which, according to the availability check, is available
Manual requirements date
Indicator to manually set the requirement date
Align Start Date Comparison
Indicator to align the requirement date to the start date of the activity
Align Finish Date
Indicator to align the requirement date to the end date of the activity
Cost Relevance
Storage Location
Additional Data for Non-Stock Materials
Requisition Number
Purchasing Group
Info Record
Outline Agreement
Vendor
Requisitioner
Requisitioner Tracking No
Price Currency
Indicator determines whether the item is included in costing.

The location where the material is stored
System generated reservation number at project implementation
Note: Requisition number will only be generated for Non-Stock Item
The purchasing group for the material
The purchasing Organisation for the material
Number that uniquely identifies the purchasing information record
Number of the outline agreement with vendor for the purchase of the material
Vendor in which material is procured from
Person requesting the material
Requisition note to keep track of the material requested
The price of the material and its currency used
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Data Type
Description
Price unit
Unit Price of a piece of material
GL Account Number
The General Ledger account number for the material to be posted
GR Procurement Time
Number of workdays required after receiving the material for inspection and placement into storage
Delivery Time
Requested Delivery Time in Days
Note: All these information are captured at the creation of Project Definition and will be continuously reflected downwards to the WBS Element and Network,
Activities and Material Component. These Master Data is explained greater detail in Financial and Controlling Blueprint.
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3.4
Project System Business Process
3.4.1 Project Business Flow

Outside SAP
3.4.1 .1
Determine
Business
Plan
Outside SAP
3.4.1.2
Determine
Projects for
the Year
Outside SAP
3.4.1.3
Determine
Project
Business
Scenarios
SAP
3.4.1.4
Project
Planning
Outside SAP
3.4.1.5
Submit for
Board
Approval
SAP
3.4.1.6
Project
Implementation
SAP
3.4.1.7
Project
Completion
3.4.1.1 Determine Business Plan (Outside SAP)

TMIs, TMIBs and MTNs Directions and Objectives dictate all projects to be implemented for the next financial year. They form the Business Plans of the
companies.
3.4.1.2 Determine Projects for the Year (Outside SAP)

Based on the Business Plan, various divisions within the companies will then identify what projects are to be undertaken the following year. For projects
identified as site rollout projects, the divisional managers will have to further determine the sites for each project undertaken and then consolidate all of them
under the Site Rollout Plan. Meetings are held with Senior Management to ensure that the projects proposed are in line with the Companies Objectives.
These steps form the initial Master Plan.
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3.4.1.3 Determine Project Business Scenarios (Outside SAP)

For all agreed projects listed within the Master Plan, the divisions will then ascertain the Business Scenarios (and the referencing points or codes) of these
projects. They will fall into one of the seven Business Scenarios that has been identified for TMI, TMIB and MTN. Each project is allocated a code based on
the Business Scenarios coding structure. This coding structure is reflected in Section 3.2.3: Proposed Organisational Coding Structure.
3.4.1.4 Project Planning

The next project business process flow is performed using SAP Project System to help in planning projects for the following fiscal year. However this can be
done at high-level since it is still at the planning stage. The areas of preparation at Plan Project stage are: - To decide on which Business Scenario the project belongs to.
- Project work packages i.e. the work scope and timeframe for the project
- Project costs i.e. equipment, material, services (internal and external), incidental charges for each project
3.4.1.5 Submit for Board Approval (Outside SAP)

Planning Division and Finance Division are responsible to ensure that the projects are properly compiled, and together with other non-project operational
costs, consolidated under a Master Plan for submission to the board for approval. Management is responsible to approve the projects submitted and provide a
budget for implementation. This process is performed outside SAP. There are two types of approvals that are required for the identified projects. Namely:
o Approval for project based on scope and overall costs
o
Approval for the budget to be spent for the following fiscal year
3.4.1.6 Project Implementation

At this stage each of the approved Project Plan is updated and detailed out in SAP Project System. Budgets approved from the management will be keyed in
and distributed to the projects. However only a portion of the approved budget will be released for project implementation. The rest is held as reserved for any
unforeseen circumstances. If the reserved is fully utilised for the year and there is a request for more budget, a supplementary budget would be provided, but
only after it has been approved by the board. The released budget is used to control the projects costs at project commencement.
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During Work-In-Progress, required Equipment, Materials and External Services are raised and issued to the projects from either the inventory or purchases
made directly to external vendors. Also at Work-In-Progress phase, all operational expenditures (OPEX) such as Internal Resources Costs and Incidental
Charges will be charged directly to the projects. At every month-end, all capital expenditures (CAPEX) incurred for the month will be settled to an Asset Under
Construction (AUC).
3.4.1.7 Project Completion

Once a capital investment project work has been completed, quality control follows. Should the quality fail, additional work scope, time, resources and budget
are added, if necessary, to improve the quality. Qualify improvement is similar to a sub-project implementation where the process is similar to the Commence
Project stage. Finally, when quality is passed, the project is considered completed. All CAPEX incurred are then settled to an Asset or Assets.
3.4.2 Project Business Scenarios

Following are the 7 project business scenarios identified for TMI.
3.4.2.1 Site-rollout project

Site-rollout projects are most commonly used as almost 90% of MTN and TMIB projects involve building base-stations. The activities would typically involve
setting up and configuring many sub-components such as Antennas, Transmitter, BTS, Battery-banks and Software applications. Such activities would also
involve large number of personnel from many divisions. These operations need very close coordination, as they are interdependent. Costs incurred for SiteRollout Projects have a mixture of OPEX and CAPEX. At completion a typical Site-rollout project can result in a number of distinct assets.
Site-rollout projects are first identified towards the end of a financial year. They are planned in accordance to the companies direction for the development of
sites to improve or enhance telecommunication coverage. For such development, which may take years, these Site-rollout projects will have to be scoped,
scheduled and prioritised for implementation. All Site-rollout projects are compiled into the Site-Rollout Plan in view of the complexities in co-ordinating the
various interdependent operations within the site.
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The project managers for Site-Rollout projects are typically from the technical divisions such as Engineering, Networking and IT.
3.4.2.2 Network Development project

Network Development projects are used mostly by MTN and TMIB for their network projects. The activities would typically involve setting up and configuring
components such as BSS (Base Station Sub-System), NSS (Network Switching Sub-System), VAS (Value Added Services), Transmission and Infrastructure.
Such activities would probably involve personnel from the Engineering and Network divisions. There may be an interdependence of Network Development
Projects to Site-Rollout projects as Network Development projects provide the connection for the base-stations to the Central Servers at Head Quarter. Costs
incurred for Network Development Projects are purely CAPEX. At completion, a typical Network Development project can result in a distinct asset.
Network Development projects are first identified towards the end of a financial year. They are planned in accordance to the companies direction for the
improvement or enhancement of MTNs and TMIBs businesses.
3.4.2.3 IT project
IT projects are used mostly by MTN and TMIB for their information technology projects. The activities would typically involve setting up and configuring
software and hardware such as BSS (Business Support System), EBS (Enterprise Business System), Customer Care and Billing System, Pre-Paid System,
EGO Systems and Roaming System. Such activities would probably involve personnel from the IT and Network divisions. There may be an interdependence
of IT projects to the Network Development projects as IT projects provide the activation, usage and enhancement of the Network systems. Costs incurred for
IT Projects are purely CAPEX. At completion, a typical IT project can result in a distinct asset.
IT projects are first identified towards the end of a financial year. They are planned in accordance to the companies direction for the improvement or
enhancement of MTNs and TMIBs businesses.
3.4.2.4 Sales & Distribution project

Sales & Distribution projects are used by TMI, MTN and TMIB for their product rollout projects. The activities would typically involve setting up billboards,
advertisements and road shows. Such activities would probably involve personnel from the Sales and Marketing divisions. Sales & Distribution projects may
be quite independent of other projects as they involve only personnel from sales and marketing divisions. Costs incurred for Sales & Distribution Projects may
have mixture of OPEX and CAPEX or purely OPEX. At completion, a Sales & Distribution project may or may not result in an asset.
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Sales & Distribution projects are first identified towards the end of a financial year. They are planned in accordance to the companies direction for the
improvement or enhancement of TMI, MTNs and TMIBs businesses.
3.4.2.5 Special project

Special projects are used by TMI, MTN and TMIB for renovation projects of their buildings, sites or warehouse. Such activities would probably involve
personnel from the Construction, Contract and Purchasing divisions. Special projects may be quite independent of other projects as they involve only
personnel that are related to renovation works. Such projects are not typically within the expertise or the business of the companies. Costs incurred for
Special Projects have a mixture of OPEX and CAPEX. At completion, a Special project can result in a distinct asset.
Special projects are first identified towards the end of a financial year. They are planned in accordance to the companies direction for the improvement or
enhancement of TMI, MTNs and TMIBs businesses.
3.4.2.6 Mergers and Acquisitions project

Mergers & Acquisitions projects are typically used by TMI for business projects of acquiring and setting up of companies and subsidiaries. Such activities
would probably involve personnel from the Management division. Mergers & Acquisitions projects may be quite independent of other projects as they involve
only personnel from management. Costs incurred for Mergers & Acquisitions Projects have a mixture of OPEX and CAPEX or purely OPEX. At completion of
a Mergers and Acquisitions project, an investment may or may not be realised.
Mergers & Acquisitions projects are first identified towards the end a financial year. They are planned in accordance to the companies direction for the
expansion and consolidation of TMI, MTNs and TMIBs businesses. Such projects may take a number of years to complete.
3.4.2.7 Product Development project
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Ref no.
Business Scenario
Business Flow Description
3.4.3.1
Network Development Project
Plan Project
1. High Level Work Packages Planning i.e. Work scope and Timeframe
2. High Level CAPEX Planning
Submit for Board Approval
3. Consolidate Project Plans into Master Plan
4. Management Approval of Projects
5. Management Approve Yearly Budget
Commence Project
6. Allocate Budget for Approve Project
7. Release a portion of Budget to Project
8. Update Work and Detailed Packages i.e. Work scope and Timeframe
9. Update and Detailed CAPEX and OPEX requirements
10.Raise Reservation and Requisition for Equipment, Material and External Services
11. Monitor Project Progress
12.Issue Equipment, Material and External Services to Project
13.Settle CAPEX for project periodically to AUC
Project Completion
14.At Project Work Completion conduct QC Inspection
15.Provide additional resources, time and budget for rectification if QC fails
16.When QC pass, settle all Projects CAPEX to Assets
17.Close Project
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Ref no.
Business Scenario
3.4.3.2
IT Project
Plan Project
2. High Level CAPEX Planning
Commence Project
Project Completion
17.Close Project
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Ref no.
Business Scenario
3.4.3.3
Sales & Distribution Project
Plan Project
2. High Level CAPEX and OPEX Planning
Commence Project
13.Post Journal Entries for Internal Services and Incidental Charges
Project Completion
18.Close Project
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Ref no.
Business Scenario
3.4.3.4
Special Project
Plan Project
Commence Project
Project Completion
18.Close Project
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Ref no.
Business Scenario
3.4.3.5
Merger & Acquisition Project
Plan Project
Commence Project
Project Completion
18.Close Project
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Ref no.
Business Scenario
3.4.3.6
Product Development Project
Plan Project
Commence Project
Project Completion
18.Close Project
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Ref no.
Business Scenario
3.4.3.7
Site-rollout Project
Plan Project
3. Consolidate Project Plans into Site Rollout Plan
4. Incorporate Site Rollout Plan into Master Plan
Commence Project
10.Update and Detailed CAPEX and OPEX requirements
11. Raise Reservation and Requisition for Equipment, Material and External Services
12.Monitor Project Progress
Project Completion
19.Close Project
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Product Development projects are used by TMI, MTN and TMIB for their research and development activities to improve service, maintain competitiveness,
and provide leading edge technology. Such activities would probably involve personnel from the IT, Research & Development as well as Engineering divisions.
Product Development projects may be quite independent of other projects although many personnel from many divisions are participating in them. Such
projects may also be typically carried out for more than a year. Costs incurred for Product Development Projects have a mixture of OPEX and CAPEX. At
completion, a Product Development project will result in an investment.
Product Development projects are first identified towards the end of a financial year. They are planned in accordance to the companies direction for the
improvement or enhancement of TMI, MTNs and TMIBs businesses.
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3.4.3 Project Processes in SAP

Plan Project
3.4.3.1 Project Planning

The processes of planning for a project will use all the elements within the Project Organisation Structure i.e.
Project Definition (Project)
WBS Elements
Network
Activities.
All of these have been defined clearly in Section 3.2 Organisational Structure.
Ref no.
3.4.3.1.1
Process
component
Work Scope
Planning
Process
Owners
Project
Managers
Process Description
To determine the personnel, departments

divisions that will be involved in the project
Able to identify person responsible for the project
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and
Create Project and enter person responsible

Create WBS Elements for project and enter persons
responsible for each WBS Element
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Ref no.
3.4.3.1.2
Process
component
Time
Planning
Process
Owners
Project
Managers
Process Description
To monitor the projects work-in-progress based on a

precise timeframe
Update Project with Start and End Date
Able to plan the project timeline.

Able to track the completed projects.
Able to enter actual duration of the projects.
Able to create a GANNT chart for the project
Able to create a critical path for the project
Able to track phases of completion in the project in
preparation for making payment to vendors
3.4.3.1.3
Overall
Planning
Project
Managers
To plan for BODs approval of project and budget for

the year.
Able to plan a project based on cost to be submitted
to the BOD approval for the project as well as the
planned costs that will be incurred for the following
year.
To plan for detail CAPEX and OPEX for project
implementation
Create Activities for the WBS Elements.

Note: Network will be automatically created once an activity is
created.
For each Activity, enter start and end date, duration
Link all Activities together.
Create Milestone for Activity and
Set it to prevent the next activity from starting without the
authorisation of approved personnel
Should it be done on a high-level, enter only lump sum costs
for high level WBS Element.
Should it be done on a detail level,
For CAPEX, the Material Components costs will be

summed up as total plan cost for the WBS Element.
For OPEX, enter a cost amount for each WBS

Element
Able to plan for project based on detail listing of

resource costs to be incurred.
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Ref no.
3.4.3.1.4
Process
component
Detailed
Planning
Process
Owners
Project
Managers
Process Description
To update planned costs when the project and budget

has been approved.
For Equipment, Materials, and External Services:

Enter Material Components that are required for each activity.
For each Material Component
Able to plan projects based on the type of resources,

and the time they are needed.
Set it to either L for stock item or N for non-stock item
Enter the quantity required
Enter the expected price
Enter the date required
Equipment
Materials
External Services
Internal Services
Internal Services are planned at the GL account level for the

WBS element.
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3.4.3.2 Project Budgeting

The budget is the approved cost limit for a project. It differs from project cost planning due to its binding nature. Whereas the project cost need to be estimated
as accurately as possible during the planning phase, the funds may be predetermined as a budget in the approval phase. The budget is the limit set by
management for project costs over a certain period of time.
SAP PS has the following types of budget::
Original Budget
The original budget is the budget that was allocated originally. From a time that it is specified, this budget can only be corrected amended using budget
updates.
Released Budget
In many enterprises, distribution of the budget does not mean that the funds have been released. Therefore, in Project Systems there is a release function with
which you can successfully release the budget. A release is based on the current budget, meaning the original budget that has been changed by supplements,
returns, or transfer postings.allocated budget for the project.
Supplement Budget
Unforeseen events, extra jobs required, such as an increase in material requirements can mean that the original budget needs to be corrected, so budget
supplement s may be required.
Ref no.
3.4.3.2.1
Process
component
Budget
Original
Process
Owners
Project
Mangers,
Divisional
Managers,
Finance
Unit
Process description
To capture the approved project budget for the year.
Enter the approved budget for the year based on:

Amount
Currency
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Ref no.
3.4.3.2.2
3.4.3.2.3
Process
component
Budget
Release
Budget
Supplement
Process
Owners
Divisional
Managers,
Project
Managers
Divisional
Managers,
Project
Managers
Process description
To provide an avenue for reserves based on the BOD

approved project budget.
Release budget for WBS elements
To be able to release a portion of the budget for

project consumption.
Able to capture and distinguish additional project
budget for the year.
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Note: Budget Availability control would be based on the

released budget amount.
Enter the supplementary budget for the year based on amount
and currency to the projects WBS element.
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3.4.3.3 Project Materials and Equipment Usage

Material and Resources requirements can be handled at two different levels i.e. Reservations and Purchase Requisitions.
System Status of the WBS Element is set to Release at a given date.
They are triggered when the
Reservations
In SAP the project manager will be able to know from the Material Component level how much of a material is available in inventory before raising a
reservation to obtain it.
Purchase Requisition
Material required will trigger a purchasing process when requisition is made from the project. In SAP, the project manager is able to raise the Purchase
Requisition when the Material is required, inclusive of quantity and price indifference of its availability. .
Currently MTN obtains all its stocks from Inventory while TIMB do not keep inventory stocks but raises the requisition to purchase the materials when required.
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Ref no.
3.4.3.3.1
Process
component
Request
from
Inventory
Process
Owners
Project
Managers,
Inventory
Unit
Process Description
To provide a facility to request equipment and material

when required from the Store.
Release WBS Element
Able to request for equipment and materials from

Store
System will auto generate a Reservation Number for the

Material Component i.e. the equipment or material
Store will have the Reservation number to act on.
Note: System will check for available stock at inventory and
will stop the generation of a reservation if stock is inadequate.
As such, stock must be replenished before a release can be
made for the WBS Element.
3.4.3.3.2
Purchase
from
External
Vendors
Project
Managers,
Purchaser
Unit
To provide a facility to request equipment and material

when required from the Purchasing Unit.
Able to request for equipment and materials from
Purchasing Unitspecific for the project needs.
Release WBS Element

SRelease WBS Element ystem will auto generate a Purchase
Requisition Number for the Material Component i.e. the
equipment or material
Purchasing will have the Purchase Requisition number to act
on.
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3.4.3.4 Project Services Usage

Internal Resources are handled differently in SAP in view of the absence of the Human Resource module to track resources availability and personnel
performance. Instead it has been agreed that Internal Resources will be posted as journal entries with a reference to the WBS element instead. However the
System Status of the WBS Element must still be set to Release before any reference can be made to it
For External Services, they are handled very similarly to that of the Purchase Requisition processes for materials and equipment as described in section 4.4.3
- Procurement of Non Stock Materials, of this document whereby a Purchase Requisition is only triggered upon the release of the System Status of the WBS
Element.
Ref no.
3.4.3.3.1
Process
component
Internal
Resources
Process
Owners
Project
Managers,
Appropriate
Divisions,
Finance
Unit
Process Description
To provide a facility to monitor requested internal

services from Appropriate Divisions.
Release WBS Element
Able to request for internal resources from

Appropriate Division and monitor related costs
Posting of actual internal resource consumption will be via

journal entries.
Note: WBS Element has to be released before any journal
entries made for Internal Resources can be reference to it.
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Ref no.
3.4.3.3.2
Process
component
External
Services
Process
Owners
Project
Manager,
Contract
Unit,
Purchaser
Unit
Process Description
To provide a facility to request external services when

required from the Contract or Purchasing Unit.
Release WBS Element

Release WBS Element
System will auto generate a Purchase Requisition Number for
the
Material
Component
i.e.
the
equipment
or
materialexternal services required.
Able to request for external services from

Contract or Purchasing Unit
Contract or Purchasing will have the outstanding Purchase

Requisition number to act on.
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3.4.3.5 Project Monitoring

Cost and Budget Comparison
Standard SAP reports have the following features that are described in section 3.4.3.5.1 Project Cost Comparison and 3.4.3.5.2 Comparison.
Project Budget
Progress Monitoring
Monitoring Project Progress is achieved through the monitoring of activities within the Project Organisation Structure. SAP has the following features for its
activities to help the Project Manager track the progress of a project:
Three types of dates for the activities:
Plan Dates Dates that are originally used to plan for the duration of each activity
Actual Dates Dates that are captured by the system when the activity is released and when it ends, and the differences between them shows the
actual duration
Forecast Dates An additional set of dates for us to use as forecasted figures
Four types of Relationships
End Date to Start Date - Relationship from the beginning of an activity to the end of the following activity.
Start Date to Start Date -This is the relationship between the beginning of an activity to the beginning of the following activity.
End Date to End Date This is the relationship between the end of an activity to the end of the following activity.
Start Date to End Date This relationship is seldom used in practice but provided nevertheless.
Project Availability Control

The main feature of Project Budgeting is to set a budget ceiling for the WBS Element. This ceiling will act as a form of control for all the costs initialised at the
Activities level that are related to the WBS Element. The Activities will carry Material Components that are needed for the execution of these activities. These
Material Components will activate the requisition for materials to be issued to a project. Once materials are issued, they will be recognised as costs incurred
for the WBS Element. However the budget ceiling for the WBS Element will prevent the material from being issued if the actual cost exceeds the budget.
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Ref no.
Process
component
Process
Owners
Process description
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3.4.3.5.1
Project Cost
Comparison
Project
Managers
To monitor plan vs. actual costs usage

Able to effectively and efficiently monitor all the costs
incurred in relation to the projects i.e. equipment,
materials, internal and external services as well as any
incidental charges.
For the projects WBS Elements, SAP has a standard report

to show up-to-date cost comparison between Plan,
Remaining Plan, Commitment and Actual costs as well as
variances to gauge the progress of the project in relation to
resources utilisation and consumption.
The following information is provided at various stages as
follows:
At Project Planning
At point of planning Planned Cost
At Resources Usage
For request from Inventory for Equipment and Material
At point of item issue to the Activity Actual Cost
For request from Purchaser for Equipment and Material
At point of orders raised Commitment Cost
For request from Contract or Purchaser for External

Services.
At point of orders raised Commitment Cost
For request from Appropriate Division for Internal Services
At point of posting to journal entries with reference

to WBS Element Actual Cost
For any incidental charges made by Finance Division
Ref no.
Process
component
Process
Owners
At point of posting to journal entries with reference

to WBS Element Actual Cost
Process description
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3.4.3.5.2
Ref no.
Project
Budget
Comparison
Process
component
Project
Managers
To monitor budget vs. plan vs. actual costs usage

Able to effectively and efficiently monitor all the costs
incurred in relation to the projects i.e. equipment,
materials, internal and external services as well as any
incidental charges.
Process
Owners
Process description
For the projects WBS Elements SAP standard report will

show up-to-date cost comparison and variances between
Budget, Plan and Actual to gauge the progress of the
project.
Similar to Section 3.4.3.5.1 Project Cost Comparison
above but with an additional feature of showing budget once
it has been released to the project i.e.:
At point of Budget is released to WBS Element Budget
Cost
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3.4.3.5.3
Project
Progress
Comparison
Project
Managers
To monitor plan vs. actual time usage

Able to monitor the project progress
Able to track the timeline and duration for each activity
within the project.
Able to monitor critical path for the project
SAP standard report will show a comparison of Plan Start

and End Dates and Plan Duration, as well as Actual Start
and End Dates and Actual Duration
At point of Activity Creation
Plan Start and End dates and Plan Duration
At point of Activity Release for execution
Actual Start and End dates and Actual Duration
At point of Activity Completion
Actual End date is updated and the duration is recalculated.
It will also readjust the Actual Start and End dates of all its
predecessor activities.
If the activity lies in the critical path, SAP will recalculate the
whole project timeline and update all the Actual Start and
End dates of the activities that are still active.
Ref no.
Process
component
Process
Owners
Process description
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3.4.3.5.4
Budget
Availability
Control
Project
Managers,
Finance
Unit
To monitor and control available budget for projects

usage.
All OPEX and CAPEX for the project shall have budget
control. Each posting shall be checked against the
budget before recognising the posting as actual cost.
In order to have the budgetary control for both OPEX and

CAPEX, Funds Management module will be used. Each of
the G/L account will be mapped to a Fund Management
object i.e. Commitment Item.
The Cost Centre will be mapped to Fund Centre in Funds
Management. For each WBS element created, the Project
Manager or Finance unit will provide a cost centre. This is
keyed into the WBS as Responsible Cost Centre. Hence,
the planning/budget data from the projects WBS, which is
linked to the allocated Cost Centre, will be transferred into
Funds Management.
With this data located in Funds Management, every posting
made in relation to the Project, the transaction will be
checked against the Fund Centre and Commitment Item to
verify against budget availability.
Please refer to Chapter 2: Financial and Controlling, 2.4.5.3
Budget Control for further details of Budget Availability
Control.
3.4.3.6 Project Interim Settlement
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Costs are collected in projects only temporarily. Settlement is the process where the actual costs incurred for a WBS Element, Network, or Activity is allocated,
in whole or in part, to one or more receivers. They are settled to one or more receivers as part of month-end processing. For capital investment projects, these
receivers are usually AUC, which can or must be capitalised at the end of the project
During the execution of projects, cost information will be captured. These costs resides temporarily in projects till they are settled to their relevant receivers as
part of the month-end process. For TMI, CAPEX are settled to a CWIP to monitor the costs of capital work-s in- progress.
Ref no.
3.4.3.6.1
Process
component
Settlement
to AUC
Process
Owners
Finance
Unit
Process description
To recognise all CAPEX incurred every month for the

project as a Balance Sheet CWIP account.
During the project work in progress, CAPEX incurred are

posted to various accounts, which is reference to the WBS
elements in the project
All project work-in-progress costs i.e. equipment,

materials and external services that have been issued
to the project for the month are to be regarded as
CAPEX. At every month-end, the CAPEX incurred by
the projects WBS elements is to be settled to a Balance
Sheet CWIP account.
At month-end these accounts will be posted as journal

entries to the CWIP account and the reference will be
redirected from the WBS element to an Asset Under
Construction (AUC). The AUC is a temporary asset and has
no depreciation factor.
OPEX transactions (i.e. internal services and incidental
charges) posted as journal entries are reflected as statistical
entries in the WBS Elements and do not need settlement.
Allow settlement rule to be created for AUC.
Note: This practice is only applicable to MTN. TMI and
TMIB will decide on the method of valuation for the project
work in progress treatment during implementation.
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3.4.3.7 Project Final Settlement

As mentioned above the temporary collected costs within the project and the AUC can be or must be capitalised at the end of the project. TMI, MTN and TMIB
require that all CAPEX incurred within the project to be capitalised or rather settle to an asset.
During the execution of projects, all costs are captured to the project AUC. When a project has been completed, a transfer of the AUC to completed assets is
required.
Ref no.
3.4.3.7.1
Process
component
Settlement
to
Completed
Assets
Business
Owners
Project
Managers,
Finance
Unit
Process description
To recognise all CAPEX incurred

completion as an asset. or investment
at
project
A final interim settlement to AUC is required to post all costs

incurred for the project.
Be able to transfer AUC cost to completed Assets at

the completion of project.
At Project Completion there will be an initiation of
asset recognition process to capture all capital
expenditures incurred in the project to an asset or
assets.
Project Manager will request an asset from Finance to link

his or her project. Once this is accomplished, a final
settlement will be conducted all the CAPEX to the asset.
All costs already settled to AUC will be posted via journal
entries to the asset to provide overall cost of the Investment
This asset will be located for depreciation accordingly at the
following month end.
To have a final settlement to completed projects.
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3.4.3.8 Project Status Control

SAP offers two options of control i.e. System Status or a user defined User Status.
System Status
The System Status determines which business transactions we can perform with the WBS Elements. System Statuses are passed from the Project to the
WBS Elements and from the WBS Elements to the Activities. Therefore changing the Projects System Status will result in the overall changing of all its WBS
Elements, Network and Activities. Changing the System Status of the WBS element will result in the automatic changes of all its subordinate WBS Elements.
The System Statuses used are Created, Release, Technically Completed and Close. Created is automatically updateddefaulted when the Project is
created. For others they have to be manually updated to mark the stages of the project.
Certain statuses, such as Technically Completed and Close can be cancelled. However, if you cancel a superior WBS Elements statuses SAP
does not cancel the status in subordinate WBS elements
User Status
The User Status is used as an additional markingscontrol for the status of a project. They do not determine which business transaction that can be performed
with the WBS Elements. However they function likewise as the System Status whereby changing the User Status of the Project will result in the overall
changing of all its WBS Elements, Network and Activities. All User Statuses must be manually updated.It can also be used for additional control of certain
business transactions. As there is a quality check for projects at its completion, the User Status would be required.
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Ref no.
Process
component
Business
Owners
Process description
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3.4.3.8.1
System
Status
Project
Managers,
To monitor and control costs of the project.the project

execution.
Able to mark the stage of planning for costs and time
Able to stop costs from incurring before start of
project
Able to stop resources from adding in after projects
works is completed
Able to stop costs from incurring after project is
completed
Able to define the stage of the projects execution.
Create Project
System Status automatically shows Created (CRTD).
This mark the planning stage of the projectInitial status of
project.
Release Project
Set System Status to Release (REL)
This mark the starting stage as well as cCommencement of
the project
Note: Costs cannot be posted into the project before it is
released
Completes an activity
Set Activitys System Status to Technically Completed
(TECO)
This mark identifiies the end of an activity within the project
Note: No Material Component can be linked to the activity
and no cost can be posted via the activity at TECO
Close Project
Set System Status to Close (CLSD)
This mark identifies the end of the project
Note: No cost can be posted to the project at CLS
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Ref no.
3.4.3.8.2
Process
component
User Status
Business
Owners
Project
Managers,
Quality
Inspection
Team
Process description
To perform
Completion
quality

control
at
Project
Work
Able to set the status to Project Work Completion

once project works have been completed
Able to initiate Quality Control Inspection and
rectificationAble to identify the inspection stage of the
project.
At end of project, when System Status is still at REL

Set Project Definitions User Status to Project Work
Completed
This will markidentifies the start of QC Inspection
Once QC inspection commence
Set User Status to QC Inspection
QC inspection is done manually.,
If QC inspection has failed
Set User Status as either QC Fail
If QC inspection is successful
Set User Status to QC Accepted
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3.5
Interfaces
No.
3.5.1
3.5.2
Direction
Inbound
and
Outbound
Outbound
Human Resources Information
System
Cost Information System (CIS)
Description
The ERP system will extract human resource
requirements for projects and implementation of
projects from the HRIS system. Project related
information could be fed back to the HRIS system
for employee performance evaluation etc
Note: This is a MTN requirement
CIS: A Cost and Tariff Modelling System to
maximise and balance the business objectives for
customer
acquisition,
customer
retention,
competitiveness, capacity utilisation, volumes,
revenues and margins.
CIS will require project and business plan related
cost information including cost of human capital to
be recorded from the ERP system and the HRIS
system.
Remarks
The requirement of extract HR info for SAP into
HRIS system is not possible if the HR system
in SAP is not implemented.
For SAP the internal labour charges will be
passed via journal entries.
Provide information link to CIS
Note: Detail personnel information will not be

able to captured if SAP Human Resources
module is not activated
File structure to be finalised at implementation.
Note: This is a MTN requirement
3.6

There are no customized reports or programs identified to dateTo be discussed in detail if any specific requirements is not met via SAP delivered reports.
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4 Materials Management
4.1
Scope of Materials Management
Materials Management (MM) is the process of managing materials in an organisation. MM covers the areas of Purchasing, Inventory Management, Invoice
Verification and Consumption Based Planning within an enterprise. A purchase request may be generated by a materials planning run, triggered from a
request from project systems, sales, or from an ad-hoc request. Vendor delivery is posted as a goods receipt and material is stored (and managed under
Inventory Management) until it is delivered to intermediate customers (Sales & Distribution).
At present only MTN has an inventory control system in place. No system is available to perform purchase order management, invoice verification and
materials planning for TMI, TMIB and MTN.
SAP Materials Management will be implemented to replace the current inventory control system at MTN and manage all procurement, inventory control,
materials planning and invoice verification processes for MTN, TMIB and TMI. Import and export management will only be partially supported by SAP
materials management. Therefore it is expected that some level of customisation will be required to generate new screens to support the business
requirements for export and import processing especially for Sri Lanka.
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The following diagram illustrates the materials management related processes for MTN, TMIB and TMI, which shall be addressed by SAP Materials
Management.
Purchase
Requisitions
Purchase
Requisitions
Project Systems
And Plant
Maintenance
Consumption
Based Planning
MRP
Reservation
Purchase
Order
Procurement
PR Processing
Vendor
Inventory
Level
Issues
Master
Data
Sales Order
Processing
Inventory
Management
PO Processing
Delivery Note
Picking
AP postings
Invoice
Verification
Sales
Delivery
Processing
Customer
Order
Delivery
Note
Intermediate
Customer
Invoice
Processing
Financial
Transactions
Invoice
Payment
Payment
Accounts
Payable
Accounts
receivable
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4.2
Material Management Organisation Structure
Organisation levels are logical structures that represent the organisational or legal views of an enterprise. An organisation can be structured according to
purchasing, inventory control, sales and accounting views. The key organisational levels defined within materials management are as follow:
Company Code
Plant
Storage Location
Purchasing Group
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4.2.1.1 Materials Management Organisation Structure for Sri Lanka
Company
Codes
LK01
LK02
Purchasing Organisations
LK01
LK02
Refer to
Organisation
Structure Definition
Section 4.2.2
2001
Refer to
Organisation
Structure Definition
Section 4.2.2
2001
Plant
Storage Locations
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4.2.1.2 Materials Management Organisation Structure for Bangladesh
Company codes
BD01
Purchasing organisations
BD01
3001
Plants
Storage
Locations
3001
3002
3003
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3004
3005
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4.2.1.3 Materials Management Organisation Structure for Malaysia
Company codes
MY01
MY02
MY03
Purchasing organisations
MY01
MY01
MY03
4001
4002
4003
4001
4001
4001
Plants
Storage
Locations
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4.2.2 Organisation Structure Definitions

R/3
Structure
Plant
Definition
Codes
An organisational unit serving to subdivide

an enterprise according to production,
procurement, maintenance, and materials
planning aspects. It is a place where either
materials are produced or goods and
services provided.
Plants can be used to represent
manufacturing facilities, storage facilities,
central
distribution
warehouses,
maintenance
facilities
and
corporate
headquarters. Inventory can be valuated at
the company code level or plant level.
Inventoried items will only be applicable for Sri

Lanka and Bangladesh. TMI does not keep
any inventoried items. Stock valuation for Sri
Lanka and Bangladesh will be at plant level.
Sri Lanka
The following plants and storage location codes
have been proposed for company code LK01
A plant or many plants can be assigned to a

company code. The company codes that have
been proposed by finance for implementation
are as follow:
MY01 TM International Sdn Bhd
MY02 TM International (L) Ltd
MY03 Telekom Management Services Sdn
Bhd
BD01 TM International (Bangladesh) Ltd
LK01 MTN Networks (Pte) Ltd
LK02 TM International Lanka (Private) Ltd
Page 151
1000 HQ
Storage Location Code
1001 Central
1004 Damage
1005 Re-export
Negative stock will not be allowed at any

plant.
The central office for the TMI, MTN and TMIB

will be represented as plants. All branches will
also be represented as plants.
1001 L1
1001 Trading
1002 Engineering
1003 Finance and Admin.
1002 L2
1002 Engineering
1003 L6
1001 Trading
1002 Engineering
TM
International
R/3
Structure
Definition
Codes
1004 L7
1001 Trading
1002 Engineering
1005 to 1014 All other branches

1001 Trading
1002 Engineering
The following plant and storage location code

have been proposed for company code LK02
2001
2001 Central Store
Bangladesh
The following plant and storage locations code
have been proposed for company code BD01
3001
3001 Technical
3002 Trading
3003 General
3004 Damaged
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R/3
Structure
Definition
Codes
3005 Re-export
Malaysia
have been proposed for company code MY01
4001
4001 General

4002
4001 General

4003
4001 General
Detailed plant information such as address and

description
will
be
finalised
during
implementation.
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R/3
Structure
Storage
Location
Definition
Codes
Storage locations allow the differentiation of

material stocks within a plant. Inventory
management on a quantity basis is carried
out at the storage location level. Physical
inventory is executed at storage location
level.
Storage location codes will be defined based

on physical storage location and functional
use of stored materials.
Please refer to the storage location codes

specified for the plants codes above.
Purchasing
Organisation
An organisational unit subdividing an

enterprise according to the requirements of
purchasing. It procures materials and
services, negotiates conditions of purchase
with vendors, and is responsible for such
transactions. The following forms of
procurement available in SAP are as follow:
Company specific purchasing organisations

will be established for each company code to
be defined.
Sri Lanka
The following purchasing organisations will be
defined:
Corporate-group-wide
LK02 TM International Lanka
BD01 TM International Bangladesh
Malaysia
defined:
Plant-specific
A purchasing organisation procures for
a plant
Company-specific
just one company code.
LK01 MTN Networks
Bangladesh
defined:

all the company codes belonging to a
client.
Page 154
MY01 TM International Sdn Bhd
MY02 TM International (L) Ltd
MY03 Telekom Management Services Sdn

Bhd
TM
International
R/3
Structure
Purchasing
Groups
Definition
Codes
The purchasing organisation is further

subdivided into purchasing groups (buyer
groups), which are responsible for day-today buying activities.
Purchasing groups will be defined based on

functional buying groups.
Sri Lanka
Purchasing Org LK01
PG 001(Trading)
PG 002(Engineering)
PG 003(Network)
Purchasing Org LK02
PG Code to be supplied by users
Bangladesh
Purchasing Org BD01
PG 301(Technical)
PG 302(Operation)
PG 303(Marketing)
Malaysia
Purchasing Org MY01
PG 401(Operational Supplies)
Purchasing Org MY02
Purchasing Org MY03
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4.3
Material Management Master Data
4.3.1 Introduction
The material master data and the vendor master data are the most important master data for procurement and inventory control in Materials Management.
When purchasing documents are created, the R/3 System facilitates data entry by copying data from existing master records as default values into the
purchasing documents. It also copies data such as units of measure and material short texts from the material master record. The data in the vendor master
record includes addresses and payment data.
4.3.2 Material Master Data

The material master contains information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for
retrieving material-specific data. This information is stored in individual material master records. The material master is used by all components in the SAP
Logistics System. The integration of all material data in a single database object eliminates redundant data storage. The material master is structured
according to views. Various departments within an enterprise use the material master. Each department stores different information in the material master.
Therefore the material master is subdivided into information grouped by user departments. Each user department has a different view of the material master
record and is responsible for maintaining the data to support its function.
Some material data is valid for all organisational levels, while some is only valid for certain levels. The material master is designed to reflect the structure of an
enterprise so that the management of material data in the enterprise can be performed centrally. For example different valuation data can be specified for the
same material code for different plants.
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Material Master Data Processing
No
Fill Maintenance
Request Form
Refer to Data
Charter
Submit Maintenance
Form for Approval
Yes
File Maintenance
Request Form
4.3.2.1
Maintain
Material Master
Inform Requestor
Of Maintenance Completion
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Ref no.
4.3.2.1
Process
component
Maintain
Material
Master
Process
owners
Purchaser
Material master maintenance will be carried out

centrally. The maintenance process can involve
create, change or mark for deletion processes. The
respective departments will supply the information
required for material master maintenance via a
material master maintenance form.
Materials in SAP can be managed on the following basis:
Material master data charters will be documented

during the implementation phase in order to facilitate
determination of the correct data for specification in
the material master maintenance form.
Quantity and Value
Quantity
Material types to be defined are as follows:

Inventoried Items
Trading (to be used for SIM cards, scratch cards, phone
equipment and phone accessories)
Engineering - Valuated (to be used for all network related
spares for Sri Lanka only)
Engineering Non Valuated (to be used for all network related
spares for Bangladesh. Only quantity is tracked. Value of item
is not tracked in SAP)
Administration All valuable administration items such as
computers, laptops and etc will be treated initially as valuated
stock that will be eventually issued out as an asset. However
treatment of such administration materials only applies to Sri
Lanka at the moment. It is possible that Bangladesh will follow
the same treatment of administration items as Sri Lanka in the
future. Sri Lanka also manages office supplies as stock items
Non Inventoried Items
Services All types of services procured for internal
consumption such as building repairs, construction services
etc.
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Ref no.
Process
component
Process
owners
Administration Supplies All other administration supply items

that are not treated as inventoried items
Text based items will also be used for ad hoc purchases. In
such a case no material code is used. Instead a text
description is used instead. An account assignment will be
compulsory for all text-based purchases.
Material valuation for inventoried items will be based on
moving average price.
Internal number assignment will be used for all materials types
to be employed for TMI, MTN and TMIB. The actual number
range for each material type will be finalised during
implementation.
Material groups shall be used to group and segregate
materials according to the needs of TMIB, MTN and TMI. An
intelligent coding structure has been proposed.
The material group field in SAP allows up to eight characters.
For example the first two characters will represent the general
type of product (i.e. Trading, Engineering, Admin), the next
three characters will represent the lower level type of product
(i.e. Scratch Cards, Phone Equipment, ETC) and the last three
characters will represent the lowest level of the product such
as the type of network equipment, type of phone etc.
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Ref no.
Process
component
Process
owners

The actual codes for the material groups to be used for TMIB,
MTN and TMI will be finalised during implementation.
Batch management will not be implemented for MTN, TMIB
and TMI.
4.3.3 Serial Number Management

Serial numbers are used in SAP to enable the identification of a specific unit of a material among the many units of that same material. Serial numbers are
currently attached to SIM cards and scratch cards. Cellular equipment also has serial numbers attached to it. These serial numbers are crucial pieces of
information required by the Billing and Pre Paid Systems but not for SAP.
The volume of SIM cards and scratch cards which are in the tens of thousands units will make the management of serial number data in SAP to be
cumbersome. Therefore serial numbers will not be managed in SAP. Consequently it would not be possible to determine from SAP what is the serial number
attached to each unit of item kept in stock. SAP will only record serial number ranges of SIM cards and scratch cards during material transactions.
For example during a goods issue of SIM cards or scratch cards the serial number range must be specified. The user will scan in the first and last serial
number of the SIM card or the scratch card into a text field in the material document. This serial number information will then be passed onto the billing and pre
paid system for further processing.
Page 160
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4.3.4 Materials Requirement Planning (MRP) Controller

The MRP controllers shall be responsible for the planning of materials within the plant. It is proposed that the MRP controllers be mapped against a material
group or a set of material groups. Such a mapping will facilitate the management of the MRP list.
The MRP controllers to be defined are as follow:
Sri Lanka
MTN
ENG Engineering Items
SCL Scratch Cards
SIM SIM cards
CEL Cellular Equipment
TM international Lanka will only have MRP
controllers for Engineering items. This list is to be
finalised by the users at implementation.
In the case of MTN, the classification of the MRP
controller for Engineering goods will be further
segregated during the implementation.
Bangladesh
TMIB
NSS Network Switch Sub System
BSS Base Station Sub System
MW Microwave Equipment
SIL Local SIM cards
SCB Scratch Cards
SIR Roaming SIM cards
Page 161
Malaysia
No MRP controller will be required for TMI since it
does not keep any stock.
TM
International
4.3.5 Vendor Master Data

The vendor master database contains information about the vendors that supply products and services to an enterprise. This information is stored in individual
vendor master records. A vendor master record contains the vendors name and address, as well as data such as:
The currency used for ordering from the vendor
Terms of payment
Names of important contact persons (sales staff)
SAP divides the vendor master data into the accounting and purchasing views. The purchasing view contains purchasing related data such as purchasing
currency, vendor details while the accounting view contains data such as payment terms and methods.
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4.3.5.1 Vendor Master Data Processing

Vendor Master Data Process Flow
No
Fill Maintenance
Request Form
Refer to Data
Charter
Submit Maintenance
Form for Approval
Yes
File Maintenance
Request Form
4.3.5.1
Maintain
Vendor Master
Inform Requestor
Of Maintenance Completion
Page 163
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Ref no.
4.3.5.1.1
Process
component
Vendor
Master
Maintenance
Process
owners
Purchaser
Vendor account maintenance will be performed

centrally.
The maintenance process can involve create,
change or mark for deletion processes. The
respective departments will supply the information
required for vendor master maintenance via a
vendor master maintenance form.
Only internal numbering will be used. Number ranges will be

defined based on the vendor account grouping that will be
finalised at implementation.
Vendor performance will be measured based on the following
criteria:
Price
Adherence to Shipment Date
Quantity
Quality
Warranty Period
SAP vendor evaluation can be used to measure vendor

performance based on the criteria mentioned above. The
details for vendor performance calculation will be finalised at
implementation. For example in calculating the vendor
performance, should all the criteria mentioned above be
equally weighted or have different weights assigned to each
criteria.
One-time vendors are to be used for one off procurement
needs. The user is expected to update the vendor details in
the purchase order when using one time vendor.
Over delivery or under delivery tolerance for vendors will not
be allowed. Vendors must deliver the quantity specified in the
purchase orders.
Page 164
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4.3.6 Material Information Records

Purchasing Info record provides concise information on a material that is procured from a vendor. The info record thus represents a vendor-material
relationship. Discount and pricing validity dates will be maintained in the pricing info record. Lead-time information, which will be crucial for materials planning,
will also be specified in the vendor info record.
Page 165
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4.4
Material Management Business Processes
Purchasing and inventory control is the business area within TMI and its subsidiaries that includes all supplier related business processes, such as purchase
requisition handling, purchasing, receiving, stock control and invoice receipt. Except for the process of stock control all other supplier related business
processes will apply for stock and non-stock items.
4.4.1 Procurement
The following procurement scenarios will be handled by SAP:
Procurement of Stock Materials
Procurement of Non Stock Materials
Intra Company Stock Transfers
Request for Quotation
Page 166
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4.4.2 Procurement of Stock Materials

Purchase orders for stock items can be created from purchase requisitions triggered by the following:
Ad hoc requirements
System generated proposal
Project requirements
Purchases of stock items will be generally be classified into two main classes:
Project specific stock.

Such stock is managed at work breakdown structure level and can only be issued to the relevant WBS element. Project specific stock procurement will
be triggered from purchase requisitions generated from Project Systems.
General stock
Such stock is not managed at work breakdown structure level and can be issued to any WBS element if required. General stock purchases are
triggered from order proposals generated from the materials planning run or ad hoc purchase requests.
The following purchases are currently used in MTN
Purchases based on Indents - a detailed agreement prepared by the respective division, which the Vendor and MTN sign (usually for Capital Expenditure).
Purchases based on Book PO - Regular PO Book based purchases (purchase order in 3 copies).
Purchases based on Letter PO - a letter prepared by the respective division and signed by MTN management based on price and the guidelines provided
in the FPP.
Purchases based on Tendering and Agreements.
Purchases based on Work Orders.
Letter based PO and book based PO will not be used in MTN. All purchase orders must be generated by SAP. All other current purchases in MTN will be
captured as a purchase order in SAP.
Page 167
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Stock Procurement Process Flow
Ad Hoc
Request
System Generated
Proposal
Project Request
Available
Request Budget
Increment
Reject
4.4.2.1
Budget Check
Refer
To Quotation
Processing
4.4.5
Accept
4.4.2.2
Stock Check
Yes
Insufficient stock
Issue
Quotation
No
Requestor receive
PO rejection
Yes
No
4.4.2.3
Delete PR
4.4.2.4
Approve Purchase
Requisition
4.4.2.5
Create PO
4.4.2.6
Approve PO
Sign PO
Requestor receive
PR rejection
No
Issue PO
To Vendor
Yes
Ensure all Necessary
import Documents
complete if required
Print
PO
Page 168
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Ref no.
Process
component
Budget
Check
Process
owners
Initiator
of
procurement
Purchase requisitions will be immediately subjected

to budget checks.
If the budget is insufficient the purchase requisition will not be

posted into the system. The requestor must then inform the
appropriate party to increase the relevant budget in order to
proceed with the creation of the purchase requisition.
4.4.2.2
Stock
Check
Initiator
of
procurement
Stock availability is determined in SAP.
Using standard SAP stock reports such as warehouse stock on

hand or stock requirement list, the warehouse inventory is
checked.
4.4.2.3
Delete
Purchase
Requisition
Initiator
of
procurement
The purchase requisition is to be deleted to ensure

that unnecessary processing is not undertaken.
Should stock be sufficient or the requirement for the purchase

is not relevant anymore, the purchase requisition will be
deleted.
4.4.2.4
Approve
Purchase
Requisition
Appropriate
Approver
All purchase requisitions must be released by the

appropriate authority before the requisitions can be
subjected to purchase order processing.
Purchase requisitions for all countries will be subjected to

approval procedures. In the event the item to be procured is
new an estimated price is to be specified.
Purchase requisitions will be routed to the necessary individual
for approval via SAP workflow. The concerned individual will
open his/her SAP mailbox to approve or reject the purchase
requisition. The requestor will then receive an e-mail in his or
her SAP mailbox stating the status of his/her purchase request.
4.4.2.1
The purchase requisition to be approved must be

routed through e-mail to the relevant individual for
on line approval.
Whether the purchase requisition is approved or
rejected, an e-mail message will be sent to the
requester to inform of the result of the purchase
request approval process.
Page 169
The limits of approval for purchases currently put in place in Sri

Lanka. Malaysia and Bangladesh will be adopted for the
release strategies to be built into SAP for purchase requisition
approvals.
Any changes recorded on an approved purchase requisition will
be subjected to the approval procedures again.
TM
International
Ref no.
4.4.2.5
Process
component
Create
Purchase
Order
Process
owners
Purchaser
A purchase order will be created with reference to

an approved purchase requisition.
A different purchase order document type will be maintained for

Sri Lanka, Bangladesh and Malaysia respectively.
The number range for each document type will be finalised at
implementation.
The landed cost rule will apply to all stock items. The landed
cost components of stock items are as follow:
CIF or FOB
Freight Charges Usually an estimate. Applicable only

for FOB purchases
Import Duties
Bank Charges Also an estimate
VAT
Insurance
The charges for the different cost components of the landed

cost can belong to different vendors. This need can be
addressed in SAP by specifying a vendor code for each of the
relevant cost component in the line item of the purchase order.
No delivery tolerance will be allowed for stock purchases. The
purchase order will only be considered closed once the delivery
quantity matches the ordered quantity in the PO.
Page 170
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Ref no.
4.4.2.6
Process
component
Approve
Purchase
Order
Process
owners
Appropriate
Approver
All purchase orders for Sri Lanka must be released

by the appropriate authority before the purchase
order can be issued to a vendor.
Purchase orders for Sri Lanka will be subjected to approval

procedures.
Purchase orders will be routed to the necessary individual for
approval via SAP Workflow. The concerned individual will
order. The requestor will then receive an e-mail in his or her
SAP mailbox stating the status of his/her purchase order.
The purchase order to be approved must be routed

through e-mail to the relevant individual for on line
approval.
Whether the purchase order is approved or rejected,
an e-mail message will be sent to the requester to
inform of the result of the purchase order approval
process.
Online purchase order approvals will not be required
for Malaysia and Bangladesh. However the
signatures of the necessary individuals must be
specified in the purchase order before it can be
issued out to a vendor. This requirement also
applies for purchase orders in Sri Lanka.
Page 171

Lanka will be adopted for the release strategies to be built into
SAP for purchase order approvals.
Any changes recorded on an approved purchase order will be
subjected to the approval procedures again. No changes to
material purchase price and quantity are allowed once a
purchase order has been issued out to a vendor.
The tracking of import and re export processing documents will
be handled through a separate customised module in SAP.
TM
International
4.4.3 Procurement of Non Stock Materials

Purchase orders for non-stock items can be created from purchase requisitions triggered by the following:
Ad hoc requirements
Project requirements
Purchases of non-stock items will be classified into the following categories:
Asset
Asset number will have to be obtained from finance before the PR can be processed. Such assets to be procured can include computer equipment,
vehicles and etc.
Project Related
Project related items such as network cards and BTS equipment are not treated as stock as in the case of project related procurement in Bangladesh.
Project related items are considered as consumed at goods receipt.
Operational Supplies
Includes office supplies and other non asset office equipment
Services
Any external services procured such as building maintenance, equipment repair and etc.
Text Based Purchases

Suitable for one-of purchases when material master records are not used.
Contracts will be used for IT equipment maintenance (PC) and services such as cleaning or maintenance contract. A release order will be created as and when
the service for the contract is executed. A goods receipt will be performed for the release order to represent acceptance of the service rendered for the
contract.
Purchase orders with recurring charges such as rental of equipment or properties will not be handled by the invoicing plan functionality in Materials
Management. Instead recurring charges for rental of properties and equipment will be addressed by the recurring payment function in AP.
Page 172
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Non -Stock Procurement Process Flow
Ad Hoc
Request
Request Budget
Increment
Project Request
Reject
4.4.3.1
Budget Check
Accept
Refer
To Quotation
Processing
4.4.5
Yes
Issue
Quotation
No
Requestor receive
PR rejection
Requestor receive
PO rejection
No
4.4.3.3
Create PO
Yes
4.4.3.2
Approve Purchase
Requisition
No
4.4.3.4
Approve PO
Yes
Ensure all Necessary

import Documents
complete if required
Sign PO
Issue PO
To Vendor
Print
PO
Page 173
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International
Ref no.
4.4.3.1
4.4.3.2
Process
component
Budget
Check
Process
owners
Initiator
of
procurement
Purchase requisitions will be immediately subjected

to budget checks.
If the budget is insufficient the purchase requisition will not be

posted into the system. The requestor must then inform the
appropriate party to increase the relevant budget in order to
proceed with the creation of the purchase requisition.
Approve
Purchase
Requisition
Appropriate
Approver
All purchase requisitions must be released by the

appropriate authority before the requisitions can be
subjected to purchase order processing.
Purchase requisitions for all countries will be subjected to

approval procedures. In the event the item to be procured is
new an estimated price is to be specified.
Purchase requisitions will be routed to the necessary individual
for approval via SAP Workflow. The concerned individual will
requisition. The requestor will then receive an e-mail in his or
her SAP mailbox stating the status of his/her purchase request.
The purchase requisition to be approved must be

routed through e-mail to the relevant individual for
on line approval.
Whether the purchase requisition is approved or
rejected, an e-mail message will be sent to the
requester to inform of the result of the purchase
request approval process.
4.4.3.3
Create
Purchase
Order
Purchaser
A purchase order will be created with reference to

an approved purchase requisition.

Lanka. Malaysia and Bangladesh will be adopted for the
release strategies to be built into SAP for purchase requisition
approvals.
Any changes recorded on an approved purchase requisition will
be subjected to the approval procedures again.
The same PO document type for stock purchases will be used
for non-stock purchases respectively for Sri Lanka, Bangladesh
and Malaysia.
All non-stock purchases will require goods receipt to validate
the acceptance of the service rendered or the non-stock item
received. All non-stock purchases will be realised financially at
goods receipt.
Page 174
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Ref no.
Process
component
Process
owners
In the case of procurement of services that the cost is not

known up front an estimate amount is specified on the
purchase order that is issued to the vendor. If the final amount
has been determined to be larger than the amount specified on
the purchase order another line item will be added onto the
purchase order. This purchase order with the new line item will
have to be approved by the relevant individual.
4.4.3.4
Approve
Purchase
Order
Appropriate
Approver
All purchase orders for Sri Lanka must be released

by the appropriate authority before the purchase
order can be issued to a vendor.
The purchase order to be approved must be routed
through e-mail to the relevant individual for on line
approval.
Whether the purchase order is approved or rejected,
an e-mail message will be sent to the requester to
inform of the result of the purchase order approval
process.
Online purchase order approvals will not be required
for Malaysia and Bangladesh. However the
signatures of the necessary individuals must be
specified in the purchase order before it can be
issued out to a vendor. This requirement also
applies for purchase orders in Sri Lanka.
Page 175
Purchase orders for Sri Lanka will be subjected to approval

procedures.
Purchase orders will be routed to the necessary individual for
approval via SAP Workflow. The concerned individual will
order. The requestor will then receive an e-mail in his or her
SAP mailbox stating the status of his/her purchase order.
Lanka will be adopted for the release strategies to be built into
SAP for purchase order approvals.
Any changes recorded on an approved purchase order will be
subjected to the approval procedures again. No changes to
material purchase price and quantity are allowed once a
purchase order has been issued out to a vendor.
The tracking of import and re export processing documents will
be handled through a separate customised module in SAP.
TM
International
4.4.4 Procurement for Intra Company Stock Transfers

This business transaction is used when a stock transfer is required between two plants belonging to the same company code. As both plants belong to the
same company code no billing documents will be generated.
Intra Company Stock Transfers
System Generated
Proposal
Ad Hoc
Request
4.4.4.2
Execute SD
Delivery Due
List
4.4.4.1
Create Stock
Transport Order
4..4.4.3
Post Goods
Issue
4.4.4.4
Post GR at
Receiving plant
Repeat process
To transfer
Additional qty
Or return the
difference
No
Yes
Quantity
Correct
Page 176
END
TM
International
Ref
no.
4.4.4.1
4.4.4.2
Process
component
Create
Stock
Transport
Order
Process
owners
Purchaser
Process
Delivery
Due List
Store
The requesting plant will issue a purchase order to

the supplying plant.
The purchase order type UB

transfer request.
Differences between GI quantities and GR quantities

should be processed in full leaving the stock in transit
empty. An additional STO should be processed to
transfer additional quantities and a return STO should
be processed to return the difference back to the
supplying plant.
The delivery order will be created with reference to
the stock transport order via the delivery due list
processing screen.
will be used to capture a stock
The delivery order created initiates the shipping process.
The delivery order can be used as a pick list.

4.4.4.3
Post Goods
Issue
Store
The completion of the shipping process must be

initiated by the posting of the goods issue.
Posting of the goods issue will result in the following. Goods

will be posted into as stock in transit. Stock in transit will not be
considered as available for use for both the receiving plant and
the issuing plant.
4.4.4.4
Post Goods
Receipt
Store
Goods that are received at the receiving plant will be

posted with reference to the delivery order.
Upon posting the goods receipt with reference to the delivery

order, the stock is transferred from an in transit status to
available status.
Page 177
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4.4.5 Request for Quotation

Quotations are issued to vendors to obtain pricing information. Pricing information and product related specifications received from vendors can be used for
evaluation purposes.
Request for Quotation Processing
Requirement for
Quotation
4.4.5.1
Create
Quotation
Receive Vendor
Quotation
Issue
Rejection
Letter
4.4.5.4
Process
Rejected
Quotations
4.4.5.2
Maintain
Quotation
4.4.5.3
Evaluate
Quotation
4.4.5.5
Process
Accepted
Quotations
Page 178
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Ref no.
Process
component
Create
Quotation
Process
owners
Purchaser
A quotation is issued to a vendor with sufficient

information in order to allow for the vendor to
participate in the quotation process.
A quotation can be created directly or processed from a

purchase requisition.
Document type AN will be used to capture quotations.
4.4.5.2
Update
Quotation
Purchaser
Vendor quotation received is updated into SAP.
Information such as pricing, detailed specification of product,

and delivery dates are updated in the quotation of interest.
4.4.5.3
Evaluate
Quotation
Purchasing
Committee
A purchasing committee will evaluate quotations that

have been completed.
Completed quotations can be evaluated in SAP for price

comparison. Subjective characteristics such as warranty
periods, technological advance, ease of use and etc are not
compared in SAP.
4.4.5.1
The purchasing committee will decide on which

quotation is to be accepted.
4.4.5.4
4.4.5.5
Process
Rejected
Quotations
Process
Accepted
Quotations
Purchaser
Rejection letters are issued to unsuccessful vendors
Unsuccessful quotations are logged for future reference.
Purchaser
Refer to purchase order processing process flows for

accepted quotations.
A quotation that has been accepted can be processed into a

purchase order.
Page 179
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International
4.4.6 Inventory Control

The following inventory control scenarios will be handled by SAP:
Goods Receipt for Purchase Orders
Transfer Postings
Goods Issue
Stock Revaluation
Physical Inventory
Vendor Returns
Page 180
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International
4.4.7 Goods Receipt for Purchase Orders

Goods receipts are posted with reference to a purchase order number. Goods receipts postings without any reference will not be allowed in SAP.
Goods Receipt for Purchase Orders Process Flow
Vendor Deliver
Goods With
Reference To PO
Visual Inspection
Of Shipment
4.4.7.1
Post GR
No
END
Full
Inspection Required
Print
GRN
Yes
Perform
Full Inspection
4.4.7.2
Transfer Block
To Available
for accepted
qty
Page 181
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International
Ref no.
4.4.7.1
Process
component
Post Goods
Receipt
Process
owners
Store
The vendor or the freight forwarder will deliver the

items to the warehouse together with an approved
PO and supplier invoice.
Items that have been received must be reflected financially.

Stock items that require inspection must first be inspected
before they can be released for general use.
A visual inspection of the goods is performed before

the goods receipt process is posted into SAP.
Goods receipt slips must be printed at goods receipt. Three

copies would be required.
The movement type 101 will used for non-stock and stock
receipt.
Stock items that are subjected to full inspection will be received
as blocked stock.
If goods can be returned immediately to the vendor due to non
conformance to purchase order data then no goods receipt
posting will be performed.
The financial postings that results from the GR of stock items
are as follow:
Dr: Stock
Cr: GR/IR
Please note that a different clearing account will be used for
VAT postings.
The financial postings for consumables, text items, asset,
project and services are:
Dr: Expense/WBS/Asset
Cr: GR/IR
Page 182
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Ref no.
Process
component
Process
owners

Should a goods receipt be mistakenly posted a reversal can be
used to rectify the mistake subject to sufficient stock coverage
and valid posting period.
4.4.7.2
Transfer
Block to
Available
Store
Upon the completion of the inspection process the

stock is transferred from the block stock to available
stock.
Page 183
Movement type 343 will be used to transfer stock from block to

unrestricted status.
TM
International
4.4.8 Transfer Postings

Transfer postings can be used to change stock status or can be used to record stock transfers of inventoried items. Sri Lanka and Bangladesh will use transfer
postings for the following scenarios:
Blocking or unblocking of materials
Transfer of project stock to common stock or common stock to project stock
Store transfers
Transfer Posting Process Flow
Transfer of
Project stock to
Available stock
Blocking of
Damage Goods
Transfer of
Available stock
To Project stock
4.4.8.1
Post GR
Unblocking of
Goods that pass
Inspection
Transfer of stock
Between store
locations
Page 184
TM
International
Ref no.
4.4.8.1
Process
component
Transfer
Postings
Process
owners
Store
The transfer posting transaction with the relevant

movement type is posted in SAP.
Blocking or unblocking of materials
Movement Type 343 and 344 will be used for blocking and
unblocking of materials
Transfer of project stock to common stock or common

stock to project stock
Movement Type 411 Q and 412 Q will be used for transfer
of stock between project and common stock
Storage location transfer
Movement Type 313 and 315 will be used for two step
storage location transfers
No accounting documents are created as a result of all the
movement types that have been mentioned above.
Page 185
TM
International
4.4.9 Goods Issue

Goods Issue Process Flow
Sales Issue
Issue to Asset
Vendor Returns
4.4.9.1
Post GI
Inter/Intra
Company
Transfer
Project stock
issue
Scrapping Stock
Internal
Consumption for
Cost Centre
Page 186
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International
Ref
no.
4.4.9.1
Process
component
Goods
Issue
Process
owners
Store
Materials are issued under the following scenarios:
Sales Issue
Sales Issue
Vendor Returns
Scrap
Internal consumption for a cost centre
Project
Returning deliveries to vendors uses movement type 122,

which is a reversal of a goods receipt.
Issue to Asset
Intra/Inter Company Transfer
Movement types 555/556 will be used to scrap materials

from blocked stock to a cost centre. Movement type
551/553 will be used to scrap materials that are not
blocked.
Material issue for sales will be triggered by the goods issue

posting of a delivery order. The movement type 601 will be
automatically selected for sales issue posting.
Vendor Returns
Scrap
Internal consumption for a cost centre
Movement type 201/202 will be use to post internal

consumption for a cost centre.
Project
Movement type 221/222 will be used to issue materials to a

project.
Issue to Asset
Movement type 241/242 will be used to issue materials to

an asset. Stock quantity will be reduced and the moving
average cost of the material will be transferred to the asset
cost.
Intra and Inter Company Transfers
Movement type will be automatically determined via sales

transactions. Movement type 641/642 is for intra company
transfers while movement type 645/646 is for intercompany transfers.
Page 187
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International
4.4.10 Stock Revaluation

Stock revaluation process only applies to Sri Lanka. The stock revaluation process is performed specifically for cellular communication equipment. The rapid
obsolescence of cellular communication equipment necessitates the process of stock revaluation.
Stock Revaluation Process Flow
Obtain Market
Price of Material
Compare
Against book value
Of material
Lower Book Value

END
Higher Book Value

4.4.10.1
Stock
Revaluation
Page 188
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International
Ref no.
4.4.10.1
Process
component
Stock
Revaluation
Process
owners
Finance
The frequency of the revaluation run is at least once

in a fiscal year. The unit price of the cellular
equipment to be revaluated is compared against the
market price. If the unit price is lower than the
market price no revaluation will be done. However
should the unit price be higher than the market
price, a stock revaluation run will have to be
executed.
SAP offers standard functionality that covers this

requirements A new price will have to be specified and the
subsequent posting that will result from a price revaluation
exercise is as follow:
Dr: Gain Loss
Cr: Stock
.
Page 189
TM
International
4.4.11 Physical Inventory

Physical inventory will only be applicable for Sri Lanka and Bangladesh since inventoried items are only managed in these countries. Physical inventory takes
place at storage location level. Consequently each storage location will have its own separate physical inventory document.
Physical inventory for Sri Lanka and Bangladesh will be executed on a continuous basis. Stocks subjected to this method will be counted at least once
throughout a fiscal year.
Physical Inventory Process Flow
Recognize need
For PI
4.4.11.1
Create PI
Counted
PI
4.4.11.2
Update
Count
4.4.11.3
Generate
Dif. List
PI
(Stock Count
Sheet)
Recount
Variance
Acceptable?
No
Yes
Distribute Count
Sheets
4.4.11.4
Update
Count
File Difference
Report
Print Difference
Report
Page 190
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International
Ref no.
4.4.11.1
4.4.11.2
4.4.11.3
Process
component
Create
Physical
Inventory
Update
Physical
Inventory
Generate
Difference
Report
Process
owners
Store
Store
Store/Finance
The store will generate the physical inventory

document.
The physical inventory document is then printed and
issued to the respective counters. The count sheet
will only contain the material number of the item to
be counted.
The physical inventory document will be the basis for the

count.
The physical inventory document can be created manually or
through a batch input process.
The warehouse clerk will then count the materials

and enter the count result in the count sheet.
Count results are keyed into SAP with reference to the

physical inventory document
The count results are then handed over to the store

supervisor for data entry into SAP.
Should an item be found that is not contained in the physical

inventory count sheet a new item can be entered into SAP.
Once the initial count has been completed a

physical inventory difference report will be
generated.
A physical inventory difference report will be generated. It is

expected that this report will display information such as
book qty, counted qty, book value, counted value and
difference between book and counted value
The physical inventory process will block movements of

materials that are subjected to the physical inventory
process. For example if a material A is subjected to the
physical inventory process, no other movements such as
goods receipt or goods issued are allowed for this material
until the completion of the physical inventory process.
A difference report is generated before the inventory

difference is posted into stock. If the initial count
result is not satisfactory a recount will be execute.
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Ref no.
4.4.11.4
Process
component
Post
Physical
Inventory
Document
Process
owners
Store/Finance
The result of the recount is analysed in the inventory

difference report. Upon validating the physical
inventory count results the physical inventory
document is cleared for differences. However this is
subject to approval of the physical inventory
difference report by the responsible manager/s.
The posting of the physical inventory difference will release

the materials that were blocked for movements as a result of
the creation of the physical inventory document.
The financial postings in the case of stock items found during
the stock take:
Dr: Stock
Cr: Inventory Gain
The financial postings in the case of stock items lost during
the stock take:
Dr: Inventory Loss
Cr: Stock
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4.4.12
Vendor Returns
Vendor returns are initiated when faulty goods are to be returned to vendors.
Vendor Returns Process Flow
Refer to Credit
Memo Processing
4.4.15
Requirement to
Return damaged
goods
Identify Original
Import Documents
4.4.12.1
Post Vendor
Returns
Request Finance to
Perform IR reversal
Print Vendor
Return Slip
Refer to Procurement
Process 4.4.2 and
4.4.3
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Ref no.
4.4.12.1
Process
component
Vendor
Returns
Process owners
Purchaser/Finance
The original import documents and additional

technical and financial details are essential for the
re-importation process. When a faulty item needs
to be exported to the vendor and replacement
item re-imported, a similar approval process from
TRC, BOI and Customs need to be followed.
The essential processes that must be addressed for

vendor returns are as follow:
A purchase order reversal will be performed for

the quantity to be returned. The replacement
quantity will have to be specified in a new
purchase order. The item that is re-imported as a
replacement will not be subjected to tax.
Page 194
Returns of Goods to vendor
A purchase order reversal will be used in SAP to

record vendor returns of faulty items. The movement
type 122 will be used to record vendor returns. A
material document slip for vendor returns will be
printed.
Generating Credit Memo for the quantity returned

to vendor
A credit memo will have to be created for the quantity
returned to the vendor in order to balance the clearing
account. However the vendor account for the import
tax payment cannot be cleared because the amount
initially paid will be offset against the next shipment
which is duty free. Therefore an appropriate account
must be identified to offset the tax clearing account.
TM
International
4.4.13 Materials Planning

The central role of MRP is to monitor stocks and in particular, to automatically create procurement proposals for purchasing and production (planned orders,
purchase requisitions or delivery schedules).
Procedures in consumption-based planning do not refer to a master production schedule. That is, the net requirements calculation is not triggered either by
planned independent requirements or dependent requirement. Instead, it is triggered when stock levels fall below a predefined reorder point or by forecast
requirements calculated using past consumption values.
The diagram below provides an overview of the materials planning process flow.
4.4.13.1
View
MRP List
Accept
Process
Order Proposal
Refer to Procurement
Process 4.4.2
Reject
4.4.13.2
Delete
Order Proposal
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Ref no.
4.4.13.1
Process
component
View MRP
List
Process owners
Materials Planner
Reorder point planning with forecasting will be

used to calculate the reorder point and safety
stock levels of materials subjected to planning.
In reorder point planning, procurement is always triggered

when the sum of warehouse stock and fixed receipts falls
short of the so-called reorder point. The reorder point
should cover the expected average material requirements
during the replenishment lead-time.
Order proposals will be generated by a scheduled

system MRP run. Subsequently the purchaser will
process the MRP list. The order proposal will be
converted to a purchase requisition for external
request. Since procurement will be centralised,
only planned orders generated at HQ will be for
external procurement. Order proposals generated
at the branch will be for stock transfers.
The safety stock should cover both excess material

consumption during the replenishment lead-time as well as
the additional consumption caused by delayed deliveries.
The safety stock is therefore part of the reorder point.
With automatic reorder point planning the reorder point
and the safety stock are automatically calculated in the
forecast run.
On the basis of previous material consumption values the
system determines the forecast values for future
requirements. The reorder point and the safety stock are
calculated from these values
4.4.13.2
Delete
Order
Proposal
Materials Planner
Planned orders generated by the system are

evaluated by the materials planner for subsequent
processing.
Page 196
In the case the order proposal is to be rejected; the

purchaser will delete the planned order.
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4.4.14 Invoice Receipt

A vendor invoice is a document from an invoicing party containing the payments to be made based on business transactions performed in Purchasing and
Inventory Management. An incoming invoice can be an invoice or a credit memo.
A vendor invoice contains various information such as:
Who issued the invoice?
Which transaction does the invoice refer to?
How much tax is payable?
One of the basic questions is the invoice reference, which enables the allocation of the invoice to a business transaction. If such a reference exists, the system
uses "knowledge" that it already has and proposes the appropriate values when verifying the invoice, for example:
Agreed terms of payment
Quantities to be invoiced
Amounts expected for each item
If the vendor invoice contains different information, the data proposed can be overwritten. The system checks whether the entries are allowed and displays a
warning or error message if a variance is detected.
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Invoice Receipt Process Flow
Receive Invoice
4.4.14.1
Post
Invoice
No
Variance
Detected
Yes
Yes
Do Not Post
Invoice
Difference due
To unplanned
Delivery
charges
Initiate
Investigation
For differences
Request vendor
To send
Correct invoice
No
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Ref no.
4.4.14.1
Process
component
Invoice
Receipt
Process owners
Finance
Prior to the invoice being entered into the system

the finance user checks the purchase order and
the goods receipt. If there is a variance then
finance will send the invoice to purchasing who
will request for a new invoice with the correct
value and quantity.
3 way invoice matching will be used for all stock items.
The vendor will then either send a new invoice or

send a credit note/additional invoice which is
processed with the original incorrect invoice
Vendor invoices are entered manually into the

SAP system. If the invoice matches the purchase
order and the goods receipt and no variance in
price and quantity is detected for fixed items such
as CIF/FOB prices then the invoice is clear for
payment.
Variances however will be allowed for unplanned
cost in a purchase order such as freight, bank
charges and etc.
Automatic postings for small difference will not be allowed.

Price and quantity variances will be automatically blocked.
The GL postings during IR receipt is as follow:
DR: Clearing Account
CR: Vendor
In the case of unplanned delivery charges the unplanned

cost will be posted to a material account if sufficient stock
coverage exist. In the case of insufficient stock coverage
the unplanned delivery charges will be posted to a price
difference account.
Sales tax, freight and custom duties can be payable to
different vendors for an individual PO
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4.4.15 Credit Note and Subsequent Credit/Debit
Credit Note and Subsequent Credit/Debit Process Flow
Receive
Credit/Debit
Note
Goods
returned to
vendor
No
4.4.15.2
Post
Subsequent
Debit/credit
Yes
4.4.15.1
Post
Credit Note
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Ref no.
4.4.15.1
4.4.15.2
Process
component
Credit Note
Processing
Subsequent
Debit
and
Credit
Processing
Process owners
Finance
Any physical returns of goods to vendors must be

followed up by a credit memo posting in SAP in
order to balance the invoiced quantity against the
received quantity
The GL postings during a credit memo posting is as follow:
Additional charges such as bank charges,

insurance and etc. can be handled via the
subsequent credit/debit function.
A subsequent debit/credit changes the total invoice value

of a purchase order item; the total invoice quantity remains
unchanged.
Finance
DR: Vendor
CR: Clearing Account
An invoice must be entered as a subsequent debit if

a purchase order item has already been invoiced and
further costs are incurred. (For example, a vendor
has inadvertently invoiced you at too low a price and
then sends a second invoice for the difference.)
A credit memo is entered as a subsequent credit if a

purchase order item was invoiced at too high a price.
(For example, a vendor has inadvertently invoiced at
too high a price and then sends a credit memo for the
difference.)
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4.5
No.
4.5.1
Interfaces
Direction
Outbound
Site rollout management
system
4.5.2
Inbound
Site
system
4.5.3
Outbound
CUSDEC
rollout
management
Description
List Inventory Items by Category, Generate Online
Item Requests
The interface will enable external systems such as
a Site-rollout management system, a telecom
industry specific project management system or a
fully integrated customer care and billing system to
view available inventory items.
The interface will enable external systems such as
a Site-rollout management system, a telecom
industry specific project management system or a
fully integrated customer care and billing system to
generate online item requests.
Facility to compare the customs declaration with the
PO to ensure no Discrepancy
Page 202
Remarks
Further clarification required to determine
extend of interface expected.
File structure to be finalised at implementation
File structure to be finalised at implementation.
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International
4.6
No.
4.6.1
4.6.2
4.6.3
4.6.4
4.6.5
4.6.6
4.6.7

Area
GRN
PO
Material Issue Slip for:
Asset Transfer
Internal Consumption
Vendor Returns
Scrap
Project Issue
Stock Aging Report

Import Export Monitoring
Report
Import Export Status Update
Physical Inventory Difference

Report
Description
Customised layouts are required for Sri Lanka, Bangladesh and Malaysia
Remarks
SAP Script
SAP Script
SAP Script
Customised report to provide stock aging by period and quantity.

Customised program for reporting status of import purchase
ABAP Report
ABAP Report
Customised report for new screens required for data capture of import
export document status.
New tables to capture purchase order status must be defined in SAP.
The table links the status of a purchase order and its line items to the
overall status of the relevant import and export documents.
Flexibility should be built into this customised program as to make it easily
adaptable to local country requirements. IE export and import rules in Sri
Lanka and Bangladesh can be totally different.
Purchase order related data would be extracted onto several standardised
templates in order to produce relevant export import documents required.
Customised report to display quantity and value variance for a physical
inventory document.
ABAP Report
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ABAP Report
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5 Sales and Distribution

5.1
Scope of Sales And Distribution
Sales and Distribution processes are only applicable for MTN and TMIB since both of these companies sell telecommunication products and services to
customers. TMI however does not sell any telecommunication products or services. The primary sales revenue of MTN and TMIB is generated through the
sales of airtime to pre paid and post paid customers. Sri Lanka also has sales of Internet connections to customers. Billings systems for post paid customers
dedicated to the specific requirements of the sales cycle process for the telecommunication industry have been implemented in TMIB and MTN. In the case of
pre paid customers, pre paid systems have also been implemented in TMIB and MTN. In addition other systems such as interconnect billing is also used to
track call charges when a customer switches network have been implement for TMIB and MTN. An Internet customer care billing system for tracking Internet
connection charges of customers has only been implemented for MTN.
SAP Sales and Distribution will be implemented not to supplant or replace the systems mentioned but instead act as a complement to the existing systems.
Therefore all end customer interactions will be handled by the current systems in place. End customers are defined as customers who procure cellular or
Internet services provided by TMIB or MTN either directly or through third parties. SAP sales and distribution will only handle the sales related transactions
between intermediate customers and the cellular/internet network provider. Intermediate customers are defined as customers who act as agents who sell
cellular or Internet services to individuals or companies on behalf of MTN or TMIB.
The business requirements for sales to end customers are very specific to the telecommunication industry. Standard SAP Sales and Distribution module
without any substantial changes will be a poor fit to meet the business requirements for sales to end customers. However standard SAP Sales and Distribution
module would be a good fit to cater to the business requirements for sales to intermediate customers. This is due to the generic nature of the sales processes
that involve intermediate customers.
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The diagram below illustrates the implementation scope for the SAP Sales and Distribution Module for TMIB and MTN.
SAP R3
SALES &
DISTRIBUTION
Post Paid System

Pre Paid System
Internet Billing
System
Inter Connect
Billing System
Sales for
Intermediate
Customers
Sales for
End
Customers
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The matrix below identifies the sales processes that will be handled by SAP and other non-SAP systems.
Business Process Description
Sale
of
mobile
phones and
accessories.
Sale of other services such as SMS,

W@P and GPRS.
Deposit collection for mobile phone

connections and other services.
Mobile
network
customer invoices
revenue
Pre Paid Revenue Recognition
from
Area
Sri Lanka
Type Of Customer
End Customer
System
Current
System
Bangladesh
Not Applicable
Not Applicable
Sri Lanka
End Customer
Current
System
Billing
Revenue information will be interfaced to finance in

SAP
Bangladesh
End Customer
Current
System
Billing

SAP
Sri Lanka
End Customer
Current
System
Billing
Deposit information will be interfaced to finance in

SAP
Bangladesh
End Customer
Current
System
Billing
Deposit information will be interfaced to finance in

SAP
Sri Lanka
End Customer
Current
System
Billing

SAP
Bangladesh
End Customer
Current
System
Billing

SAP
Sri Lanka
End Customer
Current
System
Paid

SAP
Page 206
Billing
Pre
Remarks
Sri Lanka does not sell phones and accessories to
intermediate customers
Bangladesh does not sell phones and accessories
TM
International
Business Process Description
Area
Bangladesh
Type Of Customer
End Customer
System
Current
System
Paid
Remarks
SAP
ISP Services
Sri Lanka
End Customer
Current
Internet
Billing System

SAP
Revenue from external gateway

operators.
Sri Lanka
End Customer
External
Gateway
Operations System

SAP
Bangladesh
End Customer
Current
system
SAP

SAP
Sri Lanka
End Customer
TAP files extracted

and interfaced to
billing system

SAP
Bangladesh
End Customer
TAP files extracted

and interfaced to
billing system

SAP
Revenue from DialogSAT and Dialog

Global
Sri Lanka
End Customer
Thuraya system

SAP
Sales of Post Paid Starter Kits
Sri Lanka
Bangladesh
Sri Lanka
Bangladesh
Sri Lanka
Bangladesh
Intermediate Customer
SAP
SAP
SAP
SAP
SAP
SAP
Revenue from roaming services.
Sales of Pre Paid Starter Kits

Sales of Scratch Cards
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Non
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International
5.2
Sales and Distribution Organisation Structure
Organisation structures are logical structures that represent the organisational or legal views of an enterprise. An organisation can be structured according to
purchasing, inventory control, sales and accounting views. The definition of sales related organisation structures employed within an enterprise forms the basis
of all sales and distribution business processes.
5.2.1
Organisation Structure Diagrams
5.2.1.1 Sales Organisation Structure for Sri Lanka
Sales
Organisation
Distribution
Channel
Division
1000
BP
10
2000
3000
BP
BP
20
30
Sales Area = Sales Organisation + Distribution Channel + Division
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5.2.1.2 Sales Organisation Structure for Bangladesh
Sales
Organisation
Distribution
Channel
Division
4000
BP
10
Sales Area = Sales Organisation + Distribution Channel + Division
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R/3
Structure
Sales
Organisation
Definition
Codes
This is the selling unit in the legal sense. Each

sales business transaction is processed within
a sales organisation.
Sri Lanka
The number of company codes has not been finalised.
There will be one company code to handle the cellular
business. Possibility of two more company codes to
handle ISP and IB businesses. The number of company
codes will have to be finalised during implementation.
Sri Lanka
A sales organisation is responsible for

distributing goods and services. Therefore, it is
also liable for the sold products and
responsible for the customers' rights of
recourse.
Each sales organisation is assigned exactly
one company code for which all accounting
details of the sales organization are captured.
Distribution
Channel
A structure, which defines how sales material,

reaches the customer.
1000
2000
3000
Irrespective of the number of company codes to be

defined, three sales organisations will be defined for Sri
Lanka. One each for GSM, ISP and IB business
respectively.
Bangladesh
Only one sales organisation to be defined for Bangladesh
as only one company code is expected to have sales and
distribution transactions in SAP.
One distribution channel for all sales organisations to be
defined.
Bangladesh
4000
BP - Business Partners
The distribution channel BP will be assigned to the

following sales organisations:
1000 MTN GSM
2000 ISP
3000 IB
4000 TMIB
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R/3
Structure
Division
Sales Area
Definition
A way of grouping materials, products, or

services. The system uses divisions to
determine the sales areas for a material,
product, or service.
A division can, for example, represent a
product group. Therefore for example, restrict
price agreements with a customer to a certain
division. Also conduct statistical analysis by
division.
The assignments of the

organisations are as follow:
A sales area is a combination of:
Three sales areas will be defined for Sri Lanka and a

single sales area will be defined for Bangladesh.
Sales organisation
Codes
divisions
to
the
sales
1000 MTN GSM

10 Cellular
2000 ISP
20 ISP
3000 IB
30 IB
4000 TMIB
10 Cellular
Distribution channel
Division
It is a level where sales analysis, specific price
agreements and G/L account determination
can be carried out.
Sales areas are used to control the type of
sales, products or customers that can be used
for sales and distribution transactions in SAP.
Sri Lanka
10 Cellular
20 ISP
30 IB
Bangladesh
10 Cellular
Sri Lanka
1000 MTN GSM
BP Business
Partners
10 Cellular
2000 ISP
BP Business
Partners
20 ISP
3000 IB
BP Business
Partners
30 IB
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R/3
Structure
Definition
Codes
Bangladesh
4000 IB
BP Business
Partners
10 Cellular
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5.2.3 Sales Area to Sales Office Mapping
R/3
Structure
Sales
Office
Sales group
Definition
Codes
A geographical sales unit that can be used to

represent a physical sales channel.
A sales office is to be mapped to each physical branch

defined for Sri Lanka and Bangladesh. A sales office will
also be mapped to the HQ for the Sri Lanka and
Bangladesh operations.
Currently Sri Lanka has about 15 branches and
Bangladesh has only one branch
Sri Lanka
Branch codes to be
finalised at
implementation
Sales group to be represented by sales teams attached to

each sales office.
Sri Lanka
Sales group codes to be
finalised at
implementation
This is the subdivision of the staff within a

Sales office (e.g. Sales group per division).
Every sales group will have to be attached to a
sales office.
Page 213
Bangladesh
Branch codes to be
finalised at
implementation
Bangladesh
Sales group to be
finalised at
implementation
TM
International
5.2.4 Organisational Units for Shipping
R/3
Structure
Plant
Shipping
point
Definition
Codes
Please refer to Material Management Section

4.2.2 Organisation Structure Definition for
Plant definition
A plant will essentially be mapped to branches and the

headquarters.
Sri Lanka
Plant codes to be
finalised at
implementation
This is an independent organisational element

responsible for:
Scheduling the deliveries
Executing Deliveries
Undertaking Replenishments
The shipping point determination is based
according to the following criteria: delivering
plant, type of shipping and loading equipment.
A shipping point will be defined for each branch. A branch

will be represented as a plant in SAP.
Page 214
Bangladesh
Plant codes to be
finalised at
implementation
Sri Lanka
Plant codes to be
finalised at
implementation
Bangladesh
Plant codes to be
finalised at
implementation
TM
International
5.3
Sales and Distribution Master Data
5.3.1 Introduction
The material master data, the customer master data and the pricing conditions are the most important master data for sales and distribution control in SAP.
When sales documents are created, the R/3 System facilitates data entry by copying the data from existing master records as default values into the sales
documents. It also copies data such as pricing records and customer related information required for sales document processing.
5.3.2 Customer Master

The term "customer" is used to define all customers to whom the company has contact. The function that a partner (natural or legal person) fulfils in a business
process is shown in the R/3 system as a partner function. The following are partner functions for partner type customer:
Sold-to Party
Contains data on sales, such as the assignment to a sales office or a valid price list
Ship-to Party
Contains data for shipping, such as unloading point and goods receiving hours
Bill-to Party
Contains the address and data on document printing and electronic communication
Payer
Contains data on billing schedules and bank details.
SAP will not maintain end customer account information. All end customer account information will only be maintained in the Customer Care Billing System or
the Internet Billing System. Open balances of customers from the Customer Care Billing System and Internet Billing System will be transferred to control
accounts in SAP. An example could be that the control accounts in SAP are classified to post paid customers and Internet customers. The classification of the
control accounts will be finalised during implementation.
Only intermediate customers will be maintained in SAP. Intermediate customers are defined as customers who buy products from TMIB for resale to end
customers. The intermediate customers maintained in SAP will have internal number assignment. The system will assign a number to the customer. The
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account groupings which control the number ranges for customers will be finalised during implementation. In the case of intermediate customers, the sold to
party, ship to party, bill to party and payer are all equivalents.
Sales related customer information will be maintained by the marketing department while finance related information will be maintained by the finance
department.
Since only the intermediate customers are maintained in SAP, the customer grouping for sales can be broken down as follow:
Dealers
Franchisees
One-time customers will make use of internal number assignments but have its own number range. The number range for one-time customer is to be finalised
at implementation.
5.3.3 Material Master for Sales Related Processes

The following are the material types relevant for sales related processes in TMIB and MTN.
HAWA to represent all inventoried sales items. This can include scratch cards, sim cards, cellular phones and their associated accessories.
DIEN to be used for all service items sold
Internal numbering will be used for HAWA and DIEN materials. Number ranges to be defined and assigned for HAWA and DIEN will be finalised at
implementation.
Material master maintenance will be carried out centrally. The maintenance of material master can involve create, change or mark for deletion processes. The
marketing department will supply the information required for material master maintenance via a material master maintenance form.
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5.3.4 Pricing Conditions

A condition type is a representation in the system of some aspect of daily pricing activities. For example a different condition type for each kind of price,
discount or surcharge that occurs.
Examples include the following:
Discount (% / Value)
Surcharge (% / Value)
Service Tax (% / Value)
Material Cost (moving average cost)
Gross Selling Price
The following condition types for Sri Lanka and Bangladesh have been identified:
Gross Selling Price
VAT on net selling price
VAT on commission for dealers in the case of Bangladesh
Material Cost Price should not be displayed in sales order
Dealer Commission (Discount Given)
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5.4 Sales and Distribution Business Processes

Only sales transactions involving intermediate customers will be tracked in SAP. The sales transactions captured in SAP for intermediated customers will
include order entry, delivery processing and invoice processing. All other sales to end customers will not be recorded in SAP. However material issues for sales
to end customers involving inventoried items such as cellular equipment and accessories captured on non-SAP systems will be interfaced to SAP in order to
reduce inventory since inventory control will be managed through SAP.
The following sales scenarios will be handled by SAP.
Free of Charge Sales
Credit Sales
Cash Sales
Consignment Stock Sales
Consignment Returns
Non Consignment Returns
Credit Memo Request Processing
Debit Memo Request Processing
Quotation Processing
Inter Company Sales
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5.4.1 Free Of Charge Sales Processing

Free of charge sales only applies to the sales of post-paid starter kits in Sri Lanka. In free of charge sales, billing documents are not generated.
Free Of Charge Process Flow
Receive
Cus. Order
5.4.1.1
Capture FOC
sale
5.4.1.2
Generate
Delivery
Interface SIM
Card Info to CCBS
Print
DO.
Obtain Goods
From Store
Release
Goods to Cus.
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Ref no.
5.4.1.1
Process
component
Capture
FOC Sale
Process
owners
Marketing
Sales orders for post-paid starter sales can be

received via fax, phone or captured directly.
Order type FD will be used to capture FOC sales.
Customer orders received are captured into SAP as a

FOC sale.
An availability check of post paid starter kit stock will be

undertaken in SAP during the creation of the sales order. The
availability check will validate whether the delivery date and
quantity committed to a dealer can be fulfilled.
FOC sales are not billable.

The SIM card number of a post paid starter kit will be scanned
into the line item text of the sales order. Typically the first and
the last number of a SIM card are scanned into the line item of
the sales order. The SIM card serial number must be included
in the invoice or delivery order issued to the dealer.
5.4.1.2
Generate
FOC
Delivery
Marketing
Delivery order will be generated in SAP with

reference to a FOC sales order.
The delivery document will be used as a pick list. The
delivery document is issued to the storekeeper who
will then pick the goods specified on the delivery
document.
Upon completion of the picking process a goods issue
transaction will be posted.
Only full deliveries are allowed to be processed for post-paid

starter sales. Full deliveries will be controlled through settings
specified in the customer master data.
A delivery order will be generated against the sales order. No
invoice will be issued to the dealer. It is expected that the layout
of the delivery order would have to be customised to meet the
local requirements of customers in Sri Lanka who could still
demand an invoice with zero value.
The financial postings generated as a result of the goods issue
process for post paid starter sales are as follow:
DR Cost of Goods Sold
CR Stock Account
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Ref no.
Process
component
Process
owners

A customised SAP program will be used to extract information
from line items for sales orders which have been fully delivered.
The information to be extracted will be exported to CCBS for
dealer commission calculation. The exact file structure of the
information to be transferred to CCBS will be finalised at
implementation.
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5.4.2 Credit Sales Processing

Credit sales processing applies only for Sri Lanka. Credit sales involve the sales of pre paid starter kits to intermediate customers. Credit limit checks will be
imposed for all customers who buy on credit in Sri Lanka.
Credit Sales Process Flow
Rejected
Receive
Cus. Order
5.4.2.1
Capture credit
sale
Credit Check
Sales Order
Blocked
Approved
Interface SIM
Card Info to CCBS/PP
Print
Invoice
Obtain Goods
From Store
5.4.2.3
Generate
Invoice
5.4.2.2
Generate
Delivery
Inform Credit
Manager for
Follow Up
Action
Print
Delivery
Release
Goods to Cus.
Page 222
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Ref no.
5.4.2.1
Process
component
Capture
Credit Sale
Process
owners
Marketing
Sales orders for credit sales can be received via fax,

phone or captured directly.
Order type OR will be used to capture credit sales.
Customer orders received are captured into SAP as a

credit sale.
Credit check will be activated during sales order entry.
If the customer credit is above his or her allowable
limit the credit sales will be blocked in SAP. The
blocked sales order cannot be processed for delivery
unless the sales document is unblocked for
processing by the appropriate person responsible for
releasing block sales documents.
It is proposed that the credit limit check for customers be based

on a maximum value which is made up of the following items:
Open orders items which have not been delivered
Open deliveries items which have been posted as a GI but
not billed
Open billing documents Billing items not passed to accounts
receivable
Open items Billing items that are reflected in accounts
receivable
Should the credit limit of a customer be above the maximum
value defined for the credit limit of a customer, subsequent
sales transaction will not be allowed until an authorised person
has released the blocked sales document.
An availability check of pre paid starter kit stock will be
undertaken in SAP during the creation of the sales order. The
availability check will validate whether the delivery date and
quantity committed to a dealer can be fulfilled.
The SIM card number of a pre paid starter kit will be scanned
into the line item text of the sales order. Typically the first and
the last number of a SIM card are scanned into the line item of
the sales order. The SIM card serial number must be included
in the invoice or delivery order issued to the dealer.
Page 223
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Ref no.
5.4.2.2
Process
component
Generate
Delivery
Process
owners
Marketing
Delivery orders will be generated in SAP with

reference to a credit sales order.
Only full deliveries are to be processed for pre paid starter

sales. Full deliveries will be controlled through settings
specified in the customer master data.
The delivery document will be used as a pick list. The

delivery document is issued to the storekeeper who
will then pick the goods specified on the delivery
document.
Upon completion of the picking process a goods issue
transaction will be posted.
5.4.2.3
Generate
Invoice
Marketing
Invoice documents will be generated with reference to

delivery documents

process for pre paid starter sales are as follow:
CR Stock Account
from line items for sales orders which have been fully delivered.
implementation.
The entry to be generated during posting of the invoice for a
pre paid starter kit sales is as follow:
DR Customer
CR Provision account
The provision account will be cleared through postings received
from the Pre Paid System. The account postings into SAP are
as illustrated below
DR Provision
CR Revenue
Page 224
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Ref no.
Process
component
Process
owners

A debit balance would always exist in the provision account
because the monetary amount realised from the end customer
is always lower than the monetary amount posted into the
provision account. This debit balance will have to be cleared
manually through a journal entry process.
5.4.3 Cash Sales Processing

Cash sales will be applicable for the sales of the following products in Bangladesh:
Post Paid Starter Kits
Pre Paid Starter Kits
Scratch Cards
In the case of Sri Lanka cash sales will be applicable for the following products:
Scratch Cards
It is also possible to also use cash sales for pre paid starter kit sales. However the decision to use cash sale or credit sale for pre paid starter kit sales will be
dependent on the marketing manager.
Page 225
TM
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Cash Sales Process Flow
Receive
Cus. Order
Interface SIM
Card Info to CCBS/PP
5.4.3.1
Capture cash
sale
Print
Invoice
Obtain Goods
From Store
Obtain Goods
From Store
Page 226
TM
International
Ref no.
5.4.3.1
Process
component
Capture
Cash Sale
Process
owners
Marketing
Sales orders for cash sales can be received via fax,

phone or captured directly. However before a cash
sale can be processed, the payment from customer
must either have been paid in cash or deposited into
a bank account
The sales order type BV will be used to capture sales cash

sales.
Customer orders are captured into SAP as a cash

sale.
For every post paid starter kit that Bangladesh sells
the SIM card number must be mapped to the IME
number of a handset.
In the case of Sri Lanka only the SIM card number
must be captured in sales documents.
The scratch card serial number must be captured on
the sales document for scratch card sales.
An availability check will be undertaken in SAP during the

creation of the sales order. The availability check will validate
whether the delivery date and quantity committed to a dealer
can be fulfilled.
It is proposed that only the SIM/scratch card number be
captured in the sales order. The IME number is only specified in
the billing system. SAP only captures the sales of SIM/scratch
cards to dealers and not end customer.
The sales order printed for cash sales will be treated as an
invoice to the customer. The delivery document will be
generated automatically by SAP.
from line items for sales orders that have been fully delivered.
implementation.
Posting of the goods issue and generation of the billing items
will be scheduled in SAP for cash sales.
Page 227
TM
International
Ref no.
Process
component
Process
owners

process for cash sales are as follow:
CR Stock Account
The financial postings generated by an invoice for a post paid
cash sale is as follow:
DR Cash/Bank
CR Revenue
The financial postings generated by an invoice for a pre paid/
scratch card cash sale is as follow:
DR Cash/Bank
CR Provision
The provision account will be cleared through postings received
from the Pre Paid System. The account postings into SAP are
as illustrated below
DR Provision
CR Revenue
A debit balance would always exist in the provision account
because the monetary amount realised from the end customer
is always lower than the monetary amount posted into the
provision account. This debit balance will have to be cleared
manually through a journal entry process.
Page 228
TM
International
Ref no.
Process
component
Process
owners
5.4.4 Consignment Sales Processing

Customer consignment sales processing is used in SAP when stock is transferred and kept on consignment at a customer location. The customer will only pay
what he/she has consumed. Only Sri Lanka currently has this practise of keeping stock on consignment at customer location.
Consignment Sales Process Flow
Page 229
TM
International
Receive
Cus. Order
5.4.4.1
Capture fill up
sales
5.4.4.2
Generate
Delivery
Print
Delivery
Receive Customer
Consumption Report
5.4.4.3
Capture cons
Issue sales
5.4.4.5
Post
Invoice
Ref no.
5.4.4.1
Process
component
Consignment
Fill Up Sales
Process
Owner
Marketing
Validate Customer
Consumption Report
5.4.4.4
Generate
Delivery
The fill up order is used in SAP to capture the

transfer of stock to a customer location. This will
likely involve consignment sales of pre paid starter
kits for Sri Lanka only.
Sales order type KB is used to capture fill up orders for

consignment stock in SAP.
Page 230
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International
Ref no.
Process
component
Process
Owner
5.4.4.2
Generate
Delivery
Store
The delivery order is generated with reference to the

consignment fill up order.
Goods issue of the appropriate stock is posted from the

unrestricted-use stock to consignment stock (special stock).
The quantity to be transferred is removed from plant inventory
and added to the special stock for the customer. The total
valuated stock for the plant remains the same.
A subsequent goods issue is then posted for the

delivery order generated to transfer stock to
customer location.
Stock that is transferred to the customer location still
belongs to the company. Such transfer of stock
captured via a consignment fill up order is not
billable.
The delivery for consignment stock fill up is not relevant for

billing due to the fact that ownership of stock remains in the
custody of the vendor.
5.4.4.3
Consignment
Issue Sales
Marketing
A consumption report will be received from the

customer for stock that has been consumed. The
quantity remaining at customer location is then
compared against system records to validate the
customer consumption report.
Sales order type KE is used to capture consignment issue

sales in SAP.
5.4.4.4
Generate
Delivery
Marketing
The delivery order is generated with reference to the

consignment issue sales order.
When goods issue is posted, the relevant quantity is deducted

from both the customers special stock and own total valuated
stock.
The delivery order is relevant for billing since the goods now
become the property of the customer
5.4.4.5
Post Invoice
Marketing
Invoices for consignment issue sales will be

generated against delivery orders.
The financial postings generated by an invoice for a

consignment issue sales is as follow:
DR Cash/Bank
CR Provision
Page 231
TM
International
Ref no.
Process
component
Process
Owner
5.4.5 Consignment Returns Processing

Consignment returns are used to capture sales returns from consignment stock. Consignment stock can also be returned from customer location to a branch
or headquarter location via consignment returns processing.
Page 232
TM
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Consignment Returns Process Flow
Accept Customer
Returns
Receive Customer
Returns Request
No
Inform Customer
Of rejection
Yes
5.4.5.3
Release
Sales returns
5.4.5.4
Generate
Credit Memo
5.4.5.2
Generate
Returns delivery
5.4.5.1
Capture returns
sales
Return Consignment
Stock
Yes
5.4.5.5
Capture
Sales Pick up
5.4.5.6
Generate
Returns Pick up
No
Credit Memo
Leave stock
At customer location
Page 233
TM
International
Ref no.
Process
component
Capture
Returns
Sales
Process
owner
Marketing
Customer will submit a request for consignment

return. If the customer request is accepted a
consignment sales return order is captured in SAP.
If the customer wishes to claim on consignment goods which

have already been issued, a consignment return order (order
type KR) can be created.
5.4.5.2
Generate
Returns
Delivery
Marketing
A returns delivery will be created with reference to

the consignment returns sales order.
When goods issue is posted, the relevant quantity is added to

the customers special stock at the plant where the goods are
returned.
5.4.5.3
Release
Sales
Returns
Marketing
The returns sales document must be released before

a credit memo can be generated.
SAP automatically block sales returns for credit memo

processing. To credit a return, the returns order must be
released by removing the billing block in the return header.
5.4.5.4
Generate
Credit Memo
Finance
Credit memo will be generated against

appropriate consignment sales return order.
the
Since the ownership of the goods is passed from the customer

back to the company, the transaction is relevant for billing. In
this case, the customer receives a credit memo for the
returned goods.
5.4.5.5
Capture
Sales Pick
Up
Generate
Returns Pick
Up
Marketing
Transfer of stock from customer location to branches

or HQ.
Customer returns of consignment stock to branches or HQ will

be captured via a consignment pick-up order (order type KA).
Marketing
Returns delivery pick up will be created with

reference to the consignment sales pick up order.
When goods issue is posted, the relevant quantity is deducted

from the customers special stock and is added back into
regular stock at the plant where the goods are returned.
5.4.5.1
5.4.5.6
This transaction is not relevant for billing.
Page 234
TM
International
5.4.6 Non-Consignment Returns Processing

Non-consignment returns include any sales return process for non-consignment sales. This can include returns of post paid and pre paid starter kits from
customers.
Non-Consignment Returns Process Flow
Receive Customer
Returns Request for
Returns
Accept Customer
Returns Request
Incorrect Goods
Issue
Yes
Customer
Complaint
5.4.6.1
Create Returns
Order
5.4.6.2
Create Returns
Delivery
No
Inspect
Stock
Inform Customer
Of rejection
5.4.6.4
Remove Billing
Block
5.4.6.5
Generate
Credit Memo
5.4.6.3
Transfer stock
To available
Credit Memo
Page 235
TM
International
Ref
no.
5.4.6.1
Process
component
Create
Returns
Order
Process
owner
Marketing
A customer return order is manually entered into SAP.

When creating the returns order the user references
the original sales order and indicates the reason for
the return in the order reason data field.
Order type RE is used to capture non-consignment returns

from customers.
5.4.6.2
Create
Returns
Delivery
Marketing
Returns delivery will be generated against a returns

order.
In the case of a genuine customer return (as opposed to goods

issue errors), when the goods physically arrive at the
site/warehouse the goods are posted into the stock status
Customer Returns.
A goods issue is then posted with reference to the

returns delivery in order to post stock returns.
Upon verification that the stock returned by the
customer
can be posted into available stock a
transfer posting is executed.
5.4.6.3
Transfer
Stock
to
Available
Marketing
Materials management movement type 453 is used to transfer

the stock from customer returns into own stock.
5.4.6.4
Remove
Billing
Block
Marketing
The returns sales document must be released before

a credit note can be generated.
The returns order is then processed by the credit manager who

will release the billing block in the returns order before credit
memo processing can be initiated.
5.4.6.5
Generate
Credit
Memo
Finance
Credit memo will be generated against the returns

sales order.
Credit memo generated for returns order is anticipated to have

the following financial postings.
DR: Provision account
CR: Customer account
Page 236
TM
International
5.4.7 Credit Memo Request Processing

Credit memo request processing will be used to handle customer complaints, which do not involve any stock returns. Credit memos are issued when a
customer is overcharged.
Credit Memo Request Process Flow
Customer
Complaint
Pricing Error
Manager Approval
Review Credit
Memo Request
No
Yes
Verify
5.4.7.2
Remove Billing
Block
5.4.7.1
Generate Credit
Memo Request
5.4.7.3
Generate Credit
Memo
Investigate
Credit Memo
Page 237
TM
International
Ref no.
5.4.7.1
Process
component
Generate
Credit
Memo
Request
Process
owner
Marketing
If the process is invoked as a result of a customer

complaint then the complaint will be referred to an
Account Manager for approval prior to a credit memo
request being created in SAP.
Order type CR is used to capture credit memo requests.
If the process is invoked as a result of a pricing error

then a credit memo request is created without
approval from an account manager.
If the request cannot be verified, then further
investigations are required to determine what the
next actions are and this may result in the credit
memo request being changed or even deleted.
5.4.7.2
Remove
Billing Block
Marketing
5.4.7.3
Generate
Credit
Memo
Finance
A credit memo request that has been created will be

automatically blocked. In order to process the credit
memo request to a credit memo, the billing block in
the credit memo request must be removed.
Credit memo will be generated against the credit
memo request.
If the request can be verified then the billing block is removed

and a credit memo processing can be initiated.
Credit memo generated for returns order is anticipated to have

the following financial postings.
DR: Provision account
CR: Customer account
Page 238
TM
International
5.4.8 Debit Memo Request Processing

Debit memo request processing will be used to handle customer complaints, which do not involve any stock returns. Debit memos are issued when a customer
is undercharged.
Debit Memo Request Process Flow
Additional Charges
Pricing Error
Manager Approval
Review Debit
Memo Request
5.4.8.1
Generate Debit
Memo Request
No
Yes
Verify
5.4.8.2
Remove Billing
Block
5.4.8.3
Generate Debit
Memo
Investigate
Debit Memo
Page 239
TM
International
Ref no.
5.4.8.1
Process
component
Generate
Debit Memo
Request
Process
owner
Marketing
If the process is invoked as a result of a customer

complaint then the complaint will be referred to an
Account Manager for approval prior to a debit memo
request being created in SAP.
Order type DR is used to capture debit memo requests.

The reason code data field is used to record the reason for the
debit memo request.
If the process is invoked as a result of a pricing error

then a debit memo request is created without
approval from an account manager.
If the request cannot be verified, then further
investigations are required to determine what the next
actions are and this may result in the debit memo
request being changed or even deleted.
5.4.8.2
Remove
Billing Block
Marketing
A debit memo request that has been created will be

automatically blocked. In order to process the debit
memo request to a debit memo the billing block must
be removed from the debit memo request document.
If the request can be verified then the billing block is removed

and a debit memo will be created.
5.4.8.3
Generate
Debit Memo
Finance
Debit memo will be generated against the debit

memo request.
Debit memos generated for returns order are anticipated to

have the following financial postings.
DR: Customer account
CR: Provision account
Page 240
TM
International
5.4.9 Quotation Processing

Customers request for product pricing and information will be handled by using quotation processing within Sales & Distribution. A quotation presents the
customer with a legally binding offer for delivering a product within certain fixed conditions.
Quotation Process Flow
Receive customer
Request for Quotation
5.4.9.1
Capture
Quotation
Refer to process flow

For cash sales(5.4.3)
and Credit sales
(5.4.2)
Quotation
No
Yes
Manager
Approve Quotation
Customer Accept
Quotation
No
Yes
Issue Quotation to
Customer
5.4.9.2
Reject
Quotation
Page 241
TM
International
Ref
no.
5.4.9.1
Process
component
Capture
Quotation
Process
owner
Marketing
Customer request for pricing and product information

is captured as a quotation.
The quotation type QT will be used to capture customer

quotations.
The quotation details can be manually printed once the
quotation is complete for the customers attention.
A validity date in quotations by which time the quotation should
be accepted must be specified in the quotation. The
documents can then be monitored and evaluated according to
this validity date.
When creating a quotation it is possible to record the
probability that the customer will buy. The estimate is
expressed as a percentage. Based on the resulting probability,
the system calculates an expected order value.
5.4.9.2
Reject
Quotation
Marketing
Customer decision on a quotation previously issued

is updated in SAP.
Page 242
Customer decision is updated and can be used for analysis

purposes. A listing of quotations processed within a period and
a listing of quotations that were rejected can be produced by
the system.
TM
International
5.4.10 Inter Company Sales Processing

The transfer of stock between plants belonging to different company codes will be treated as inter company sales. In this procedure, the stock is transferred in
the form of a sale between two plants. This is only possible if the plants involved belong to different company codes. With the delivery function in shipping, the
whole transaction - from the delivery through billing and invoice verification - is reflected in the system.
Inter Company Sales Process Fow
Vendor
Customer
Receive Transport
Request
5.4.10.1
Raise Interco
Transport Order
5.4.10.2
Process
Delivery due list
5.4.10.4
Post Goods
Receipt
5.4.10.3
Post Goods
Issue
5.4.10.6
Post Invoice
Receipt
5.4.10.5
Generate
Billing Doc
Account
Payable
Account
Receivable
Page 243
TM
International
Ref no.
5.4.10.1
5.4.10.2
Process
component
Raise Inter
company
Stock
Transport
Order
Process
Delivery
Due List
Process
Owners
Purchaser
The requesting plant will issue a purchase order to

the supplying plant.
The purchase order type UB

transfer request.
Marketing
The delivery order will be created with reference to

the stock transport order via the delivery due list
processing screen.
The delivery order created initiates the shipping process.
The delivery order can be used as a pick list.

The completion of the shipping process must be
initiated by the posting of the goods issue.
will be used to capture a stock
5.4.10.3
Post Goods
Issue
Store
5.4.10.4
Post Goods
Receipt
Store
Goods that are received at the receiving plant will be

posted with reference to the delivery order.
Upon posting the goods receipt with reference to the delivery

order, the stock is transferred from an in transit status to
available status.
5.4.10.5
Generate
Billing
Document
Marketing
Billing document will be generated with reference to

the delivery order.
The financial postings generated from the billing document for

inter company stock transfer is as follow:
DR: Customer
CR: Revenue
5.4.10.6
Post
Invoice
Receipt
Finance
An invoice receipt will be posted with reference to the

delivery order.
The financial postings generated from the invoice receipt for

inter company stock transfer is as follow:
DR: Clearing Account
CR: Vendor
Page 244
Posting of the goods issue will result in the following. Goods

will be posted as stock in transit. Stock in transit will not be
considered as available for use in both the receiving plant and
the issuing plant.
TM
International
5.5
Interfaces
No.
5.5.1
Direction
Inbound
Post Paid Billing System
Description
Reduction of stock for equipment and accessory
sales captured through billing system for end
customers.
Remarks
To make use of the IDOC message type
WMMBXY for stock postings from external
systems
Also to be used to capture equipment or accessory

returns information from billing system.
IDOC exception handling will be documented at

implementation
Only expected for Sri Lanka, as Bangladesh does

not have phone and accessory sales.
5.5.2
Outbound
Post Paid Billing System
5.5.3
Outbound
Pre Paid Billing System
File structure to be finalised during implementation.

Standard IDOC for material posting available in
SAP
To past SIM card number range to billing system.
To past SIM card number range to pre paid system

for activation
Page 245
A new ABAP program will have to be developed

to extract information from sales orders.
A new ABAP program will have to be developed

to extract information from sales orders.
TM
International
5.1
No.
5.6.1
5.6.2
5.6.3
5.6.4
5.6.5
Area
Delivery Order
Invoice
Credit Memo
Debit Memo
Cash Sale Invoice
5.6.6
Post Paid Starter Kit Sales

Report
5.6.7
Pre Paid Starter Kit Sales

Report
Scratch Card Sales Report
5.6.8
Description
Customised layouts would be required for Sri Lanka and Bangladesh
Customised layout for cash sale invoice. Would require separate layouts for
Sri Lanka and Bangladesh
To track SIM card serial number sales by dealer and period.
Remarks
SAPScript
SAPScript
SAPScript
SAPScript
SAPScript
To track SIM card serial number sales by dealer and period.
ABAP Report
To track scratch card serial number sales by dealer and period.
ABAP Report
Page 246
ABAP Report
TM
International
6 Plant Maintenance
6.1
Scope of Plant Maintenance
The Plant Maintenance process is primarily used to manage the maintenance of technical objects within TMI, TMIB and MTN. They are:
1.
2.
3.
4.
5.
Site/Location where the network equipment is placed/installed, i.e. building, cabin or outdoor-cabinet.
Network Equipment, i.e. BSC, BTS, MSC, etc.
Supporting Tools and Test Gear equipment
Vehicles
IT/Office equipment, i.e. PC, printer, photocopier, etc.
The Plant Maintenance process is heavily used by TMIB and MTN to do maintenance for all the above technical objects, while TMI only uses Plant
Maintenance process to maintain its IT/Office equipment.
SAP Plant Maintenance will be used by TMI, TMIB and MTN to provide better control for the following areas of maintenance: 1.
2.
3.
4.
5.
Improve planning of maintenance for equipment

Optimise the maintenance cost
Optimise the resources usage in the maintenance process
Standardise the task and activities needed to be carried out in maintenance
Standardise the maintenance process as much as possible for the equipment
Page 247
TM
International
6.2
Plant Maintenance Organisation Structure
Plant Maintenance Organisation Structure

100
Client
Company Code
MY02
MY01
BD01
MY03
LK01
LK02
Maintenance Plant
MY01
BD01
LK01
Planning Plant
MY01
BD01
LK01
Planner Group
Location
ITO
MY1
MY2
ITO
NSS
MY3
BSS
BD1
Page 248
M&E
S&F
BD2
BD3
ITO
LK1
NSS
LK2
BSS
M&E
S&F
LK3
TM
International

R/3 structure
Definition
Codes
Client
Client in SAP R/3 represents the highestlevel element of all the organisational units.
It corresponds, for example, to a corporate
group with several subsidiaries. Within a
client, the system always accesses the
same database.
For TM International (TMI), it will be only one client

with several subsidiaries/company codes.
100: TM International
Company code
The company code in SAP R/3 represents

an independent accounting unit for which a
balance sheet and profit & loss statement
are prepared. It is recommended that a
company code be used to represent a legal
entity.
The naming convention is important
especially if all company is on one SAP
client. SAP provides a four-character field
for the company code name.
Six company codes will be implemented. They are:
Plant
Plant is an organisational unit within

Logistics, serving to subdivide an enterprise
according to production, procurement,
maintenance, and materials planning.
The Central office for TMI, MTN and TMIB will be

represented as plants. All branches will also be
represented as plants

Material Management, Section
4.2.2. Organisation Structure
Definition
Maintenance Plant
The plant, at which the operational systems

of a company are installed and where
maintenance activity will be performed, is
called the maintenance plant.
Maintenance Plants will be mapped to the plants

defined for Malaysia, Sri Langka and Bangladesh.

Material Management, Section
4.2.2. Organisation Structure
Definition
1.
2.
3.
4.
5.
6.

Page 249
1.
2.
3.
4.
5.
6.
MY01
MY02
MY03
BD01
LK01
LK02
TM
International
R/3 structure
Definition
Maintenance
Planning Plant
A maintenance planning plant is the

organisational unit in which maintenance
requirements
are
planned.
These
requirements can either come from this own
plant or from another maintenance plant
assigned to this maintenance planning
plant. Maintenance planner groups define
the planners within a maintenance planning
plant.
One Maintenance Planning Plant per Company Code.
Location
A location is used to classify maintenance

plant according to location criteria, for
example, site, building, or coordinates.
Locations are used for informative
assignment only. Location is configured at
plant level.
Each office area will represent a Location
Page 250
Codes
1. MY01
2. BD01
3. LK01
Location codes to be finalised at

implementation.
TM
International
6.3
Plant Maintenance Master Data
Plant Maintenance (PM) is used to manage equipment maintenance. Equipment is a physical object that is maintained independently for the purpose of work
planning and history tracking. In TMI it is categorized into 6 categories, i.e. IT/Office, Network, Transmission, Facilities, Vehicles and Test and Tools. 3 of the 6
categories, i.e. Network, Transmission and Facilities are installed at a Functional Location. Functional location is used to represent the site/location within the
plant according to functionality.
A Work Centre is used to represent the employee or group of employees who will be performing the maintenance tasks. A Work Centre serves as a basis of
work accountability in all maintenance orders. However, a maintenance order can be further assigned to more than one work centre for execution.
Equipment may have recommended maintenance guidelines proposed by the manufacturer or vendor. Based on this recommendation, an appropriate task list
or job plan is used to standardize the maintenance work steps.
6.3.1 Functional Location

6.3.1.1 Functional Location Description
Functional locations are hierarchically ordered structures that represent a technical system, building, or part thereof. In TMI, it will be used to represent a
site/location whereby the equipment is installed. It is categorized into 2 categories, i.e. Data Centre and Network. PM Orders can be raised against the
Functional Location. When the Functional Location is linked to a Cost Centre, OPEX related costs would be rolled up to that Cost Centre, providing total cost
transparency.
In the system, Functional Location is formed by:
1. Structure Indicator which is used to:
Specify and monitor the generic structure of the Functional Location
Portray the hierarchy levels within the Functional Location structure
In SAP the total length of the Structure Indicator is up to 40 characters, using Numerical (N), Alpha (A) or alphanumeric (X) characters.
2. Edit Mask represents the coding convention for the relevant Functional Location.
3. Hierarchy Levels is the number of hierarchy levels of the Edit Mask that are represented by the numbers below the Edit Mask.
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The example here is for TMI Bangladesh, i.e. Country followed by Region, Office and Sites Name
Structure Indicator
: 00001
Edit Mask
: AA.AAA.XXXX.XXXXXXXXXX
Hierarchy Levels
: 1 2
3
4
Example:
BD.DHK.BRAC.MSC: MSC site in BRAC Dhaka Bangladesh
6.3.1.2 Functional Location Category

Functional
Category
Location
A
B
Functional
Location
Category Description
Functional
Category
Location
ID
for
the
Functional Location Description
IT Data Centre
BD.DHK.BRAC.DATACTR
IT Data Centre in BRAC Dhaka Bangladesh
BD.DHK.BRAC.BTSED6001A
BTS ED6001A in BRAC Dhaka Bangladesh
BD.DHK.BRAC.BTSED6001B
BTS ED6001B in BRAC Dhaka Bangladesh
BD.DHK.BRAC.MSCDM01
MSC DM01 in BRAC Dhaka Bangladesh
BD.DHK.BRAC.MSCDH02
MSC DH02 in BRAC Dhaka Bangladesh
BD.DHK.MASC.MSCDM03
MSC DM03 in Mascot Dhaka Bangladesh
BD.DHK.MASC.MSCDM04
MSC DM04 in Mascot Dhaka Bangladesh
BD.CTG.FARK.MSCCM02
MSC CM02 in Faruk Chitagong Bangladesh
BD.CTG.FARK.MSCCM05
MSC CM05 in Faruk Chitagong Bangladesh
Network
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6.3.1.3 Functional Location Processing
New MSC/
BSC site
BTS/
MSC/ BTS/ BSC

site reclassification
6.3.1.3.1
Create Functional
Location
6.3.1.3.2
Change Functional
Location
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Ref No.
Process
Component
Process
Owner
6.3.1.3.1
Create Functional
Location
Planner
When the coverage area is expanded with a

new site or new location, a new functional
location is required to reflect the latest site
structure.
Create one or many functional locations as needed.

Information entered in a functional location are: 1. Functional location ID
2. Description
3. Planning plant
4. Maintenance plant
5. Company code
6. Equipment installation allowed indicator
7. Measurement Point (if any)
6.3.1.3.2
Change Functional
Location
Planner
When the existing site is moved to another

location, or the description of the location is to
be changed, this information need to be
updated in the system.
Change the affected function location with the updated

information:
1. Latest Description
2. Latest Location
If the location is no longer valid due to the

reclassification, the data has to be set for
deletion.
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Before the deletion flag is set, all equipment currently

installed under the location have to be moved to
another location first. The system will give a warning if
the data with deletion flag is being retrieved.
TM
International
6.3.2 Equipment
Equipment is a uniquely identifiable physical asset, upon which work can be carried out and where costs and history can be recorded. Equipment will be
installed at a site/location defined by a Functional Location. More than one piece of equipment can be installed at a site/location.
PM work orders can be raised against a piece of Equipment with the following consequences:
Planned costs, commitments and actual costs associated with the Work Order will be collected automatically against the Equipment.
History data can be collected.
Costs and history will be retained for Equipment.
Ref no.
Equipment Data
Definition
6.3.2.1
Number Range
Equipment numbers are systemgenerated and the number ranges

are based on the equipment
category. It is generated by the
system every time an equipment
record created.
TMI accepts SAP standard in defaulting the number range

for equipment based on an equipment category.
The field holds the description of

the Equipment. It can have a length
up to of the 40 characters.
Equipment Description
6.3.2.2
Description
Equipment Categories:
A: IT/Office Equipment
B: Network Equipment
C: Transmission Equipment
D: Facilities Equipment
E: Vehicles
P: Test Equipment and Tools
Page 255
Codes
A: 10000000-19999999
B: 20000000-39999999
C: 40000000-59999999
D: 60000000-69999999
E: 70000000-79999999
P: 80000000-89999999
Router
Projector
Plotter
Mobile Switching Centre
Home Location Register
TM
International
Ref no.
Equipment Data
Definition
Codes
6.3.2.3
Object Type
This is used to combine pieces of

equipment that have the same use
into groups. It can be used for
evaluating equipment master data
or maintenance data.
In TMI, Object Types will be assigned to Equipment

master data.
A: Billing System
B: Mediation
C: Provisioning
D: Contact Centre
E: CRM
F: Fraud Management
G: Credit Control
H: GSM - Network
I: ISP - Network
J: Microwave
K: Fibre
L: Satellite
M: Laser
N: Building
O: Cabin
P: Tower
Q: Outdoor Cabinet
R: 4-wheels
S: 2-wheels
T: Van
U: Motorcycle
V: GSM - Tools
W: ISP - Tools
X: Transmission
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6.3.2.1 Equipment Processing

Equipment Process Flow
Goods Receipt for

Purchase Order
Equipment move
location
Equipment
worn out
6.3.2.1.1
Create Equipment
6.3.2.1.2
Change Equipment
fully
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Ref No.
Process
Component
Process
Owner
6.3.2.1.1
Create Equipment
Purchase
requisition
originator
In the process of procuring new equipment, PR

will be created, and budget is checked and
approved before a PO is issued. Once the
goods arrive, the requestor will verify the
equipment and receive the goods.
The requestor will perform an additional step of
creating the equipment master after receipt of
equipment.
Equipment is an important technical object in the

system. All activities and history are recorded per
equipment.
Information crucial to equipment are:
1. Equipment number which is system-generated
based on equipment category
2. Equipment category (refer to equipment master
data section)
3. Description
4. Object type (refer to equipment master data)
5. Acquisition date
6. Manufacturer
7. Manufacturer serial number
8. Manufacturer model number
9. Maintenance plant
10. Company code
11. Planning plant
12. Cost centre
13. Planner group
14. Functional Location
15. Measurement Point (if any)
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Ref No.
Process
Component
Process
Owner
6.3.2.1.2
Change Equipment
Equipment
Owner
Equipment may be moved, relocated or restructured.
The system needs to be updated with the latest

information. Data to be changed are: 1. Acquisition date
2. Cost centre
3. Functional location
Equipment no longer valid in the plant.
Page 259
The equipment is to be set for deletion. The deletion

status will disallow any changes in the equipment
master and work order raised. The equipment history
will be in SAP as long as the data is not archived.
TM
International
6.3.3 Maintenance Work Centre

6.3.3.1 Work Centre Description
A Work Centre is an organisational unit capable of performing work and can be defined as who or what carries out an operation or activity. It may represent a
person or a group of people as well as a machine or a group of machines.
The business objectives to be met using Work Centres are:
Efficient utilisation of manpower resources and machines
Management of selected resources
Cost allocation for consumed resources to the receiving cost object i.e. the work order.
Work Centre Structure
Plant
NSS
BSS
M&E
Fleet
Support
IT/Office
The Work Centre structure above is represented as work centre hierarchy. The hierarchy only shows the relationship between work centres.
Whenever there is the need to create a new Work Centre, a decision is required on the Work Centre name. This is because the Work Centre name is a key
data requirement to clearly identify it within the plant.
The SAP field for Work Centres allows 8 alphanumeric characters.
The naming Convention is vital for efficient use of search engines for Work Centres.
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Work Centre coding will be made up of a 4 digit office/region + a 3-4 digit code abbreviating the activity type or group.
Examples:
BRACNSS
BRAC = BRAC office in Dhaka Bangladesh
NSS
= Network Switching Subsystem
MASCBSS
MASC = Mascot office in Dhaka Bangladesh
BSS
= Base Station Subsystem
BRACFLEE
BRAC = BRAC office in Dhaka Bangladesh
FLEE = Fleet or Vehicles
Work
Data
Centre
Configuration
decision
Definition
Codes
For a Work Centre to be equipped with charge rates, it

must be linked to a Cost Centre. This cost centre is the
sender of costs when the Work Centre performs work.
Cost Centre will be used as a cost object for

all internal maintenance cost incurred during
performing maintenance work.
List of Cost Centres and

Activity types to be
finalised at
implementation.
The rate charged by a Work Centre is determined via

assignment of an activity type.
Activity type is assigned to work centre to

determine the tariff/charge rate.
Work Centre
Category
Key that distinguishes the work centres by their

category.
The work centre category determines which data can
be maintained in the master record for the work centre.
TMI will use work centre category for Plant

Maintenance.
0005: Plant Maintenance
Capacity
Category
Work Centre capacity is the ability to do work and

defines the quantity of services that people and
machines can provide concurrently within a certain
time period. The category specifies what type of
capacity is available. Only people or machines will be
used.
TMI will use person capacity category for the

work centre
002: Person
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6.3.3.2 Work Centre Processing

Work Centre Process Flow
New addition requirements to

schedule, capacity plan or cost a
group of resources
Changing
the existing?
NO
6.3.3.2.1
Create Work
Centre
YES
Replacing the
existing name
or
responsibility?
YES
6.3.3.2.3
Replace Work
Centre
NO
6.3.3.2.2
Change Work
Centre
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Ref No.
Process
Component
Process
Owner
6.3.3.2.1
Create
Centre
Work
Department
head
When there is a new addition to the organisation

or requirements to schedule, capacity plan or
cost a group of resources.
During performance of work, the personnel are assigned

as the executor. Information entered are:
1. Work centre ID
2. Description
3. Work centre category 0005 Plant Maintenance for all
work centres
4. Standard key value
5. Base unit of measure
6. Person responsible
7. Cost centre
Activity type used to capture the duration of time spent
in performing a work.
6.3.3.2.2
Change Work
Centre
Department
head
When there is the need to change existing data

for work centre, i.e. capacity, working time, etc.
Information that can be changed are:

1. Description
2. Capacity
3. Working hours
4. Cost centre
6.3.3.2.3
Replace Work
Centre
Department
head
When there is the need to change existing name

for work centre or due to responsibility changes,
i.e. sub-dividing one work centre into two.
Page 263
The system has functionality where it allows changing the

work centre name.
TM
International
6.3.4 Task List

6.3.4.1 Task List Description
Maintenance task lists describe the sequence of individual maintenance activity that is performed repeatedly within a company. Task lists are used to
standardize these recurring work sequences and to plan them more effectively, to save time when creating orders and recurring activity plans and to assist in
ordering materials required. Examples of task lists include inspections, routine / preventive maintenance, frequently recurring repairs and certain regular
activities. Furthermore, task lists may contain information on the spare parts and tools required for the work steps and the time required in performing the work.
Most manufacturers deliver the equipment together with maintenance task lists.
Task Lists can be accessed from a PM work order directly. Operations or sub-operations are selected from the Task List to define the work required.
Operations can be selected from more than one Task list in order to define the work for a single PM Work Order. This facility helps to speed up and standardize
work order processing.
Ref. No
Maintenance
Task List Data
Definition
Codes
6.3.4.1.1
Task List Type
Type of task list
TMI will use General Task Lists for their

Network, Vehicles and IT/Office Equipment and
their related Functional Location.
A General Task List

E Equipment Task List
T Functional Location Task List
Equipment and Functional Location Task List

will only be used, if in case there is a unique
requirement
for
that
particular
equipment/functional location.
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International
Ref. No
Maintenance
Task List Data
Definition
Codes
6.3.4.1.2
Number Range
General Task List

As per standard SAP
external number range
General Task List will be externally defined

based on the agreed naming convention.
Maximum is 8 alphanumeric characters. The 1st
2nd character will represent company, i.e. BD
for Bangladesh and 2nd 2 character will
represent the area/function, i.e. Network,
IT/Office and Vehicles and the rest 4 character
will represent the sub-specific area/function,
i.e. MSC, BSC, Printer, Plotter, Toyota,
Mitsubishi, etc.
A - General Task List:
Equipment/Functional Location Task List will be

defined internally by the system and attached
to the specific Equipment/Functional Location.
T Functional Location Task List:
using
Equipment Task List

As per standard SAP using internal
number range
Functional Location Task List
As per standard SAP using internal
number range
BDNT-MSC: Task List Group for MSC

in Bangladesh
E Equipment Task List:
10000000 19999999
20000000 - 29999999
6.3.4.1.3
Group Counter
Combination of this key and task

list group uniquely identifies the
task list. It is used to make a
distinction between similar task
lists.
TMI uses this counter to distinct the task list in

the task list group based on the brand of the
technical object that could have a different task
to be carried.
This field is maximum 2 alphanumeric
characters. The description is up to 40
characters.
01 : Sri Lanka Alcatel Server Subrack
6.3.4.1.4
Task List
Operation
Description
Description for operation in the

task list
TMI decided that description in operation task

list would be prefixed with the frequency
indicator; for example 3M-Change Oil Filter, if
the operation is to be executed every 3
months.
3M Change Oil Filter
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Ref. No
Maintenance
Task List Data
Definition
Codes
6.3.4.1.5
Maintenance
Strategy
A maintenance strategy contains

the maintenance packages that
define the cycle in which the
individual
tasks
should
be
performed (for example, every two
months, every 5,000 km, every
500 operating hours.
TMI will use two scheduling indicators, i.e.

Time and Activity/Performance based. They
have a 5-cycle length time-based maintenance
strategy
and
11-cycle
length
activity/performance-based
maintenance
strategy.
Time-based:
1. Daily
2. Weekly
3. Monthly
4. Every 3 Month
5. Every 6 Month
Activity/Performance-based:
1. Every 3500 km
2. Every 4000 km
3. Every 5000 km
4. Every 8000 km
5. Every 10000 km
6. Every 15000 km
7. Every 20000 km
8. Every 25000 km
9. Every 60000 km
10. Every 90000 km
11. Every 100000 km
For naming convention, TMI uses the first 2

characters for country; the second 2 characters
are for unit/dimension and the third 2
characters for cycle.
Page 266
BDTMWK:
Bangladesh-Time-Weekly
LKTMMN:
Sri Lanka-Time-Monthly
TM
International
6.3.4.2 Task List Processing

Task List Process Flow
New Functional
Location/
Equipment Type
Manufacturer
Recommendation
6.3.4.2.1
Create
Maintenance
Strategy
6.3.4.2.3
Create Task List
6.3.4.2.2
Create
Measurement
Points
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Ref No.
Process
Component
Process
Owner
6.3.4.2.1
Create
Maintenance
Strategy
Planner
A new equipment type is purchased or a new site/location is

built/set and this equipment/functional location has a different
maintenance/job plan from the existing one.
A new set of task list is required.
Create
Measurement
Point
Planner
Measurement Point is created for equipment for performance

measurement. This is taken as counter readings to analyse the
efficiency of the equipment.
Create a new measurement point and

attach to equipment/functional location.
6.3.4.2.2
For each task list, define the sequence and

frequency
of
maintenance
in
the
maintenance strategy, i.e. time-based and
performance-based strategy.
Information needed:
1. Measurement
Position
i.e.
speedometer in vehicles or run hour
readings in generator set.
2. Measurement
Point
Object
i.e.
Equipment or Functional Location
3. Measurement Point Category
4. Measurement Point Counter
5. Description
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Ref No.
Process
Component
Process
Owner
6.3.4.2.3
Create Task
List
Planner
A new set of tasks is required for the new equipment/functional

location if they are different from the existing one.
Maintenance task lists describe the

sequence of individual maintenance activity
that must be performed repeatedly.
Important data in task list are:
1. Task list name
2. Description
3. Work centre
4. Maintenance strategy
5. Operation or job steps
6. Materials required for the job
7. Sequence
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6.4
Plant Maintenance Business Processes
Basically, Plant Maintenance processes can be divided into the following categories: 1. Preventive Maintenance
This maintenance is fixed at certain intervals, using a maintenance strategy and triggered by a maintenance plan. The maintenance plan is created and
scheduled in order to monitor the maintenance due dates and generates work orders with relevant work steps automatically based on the parameters set-up in
the maintenance plan.
In TMI, the following Preventive Maintenance order types are identified:
PR01: System Maintenance

This order type is used for maintenance of the network systems, i.e. BSC, MSC, BTS, Transmission, etc.
PR02: Infrastructure Maintenance

This order type is used for maintenance of the infrastructure in the network systems, i.e. building, site whereby the equipment is installed
PR03: Fleet Maintenance

This order type is used for maintenance of Fleet/ Vehicles that are used to support their operations.
PR04: Tools & Test Gear Maintenance

This order type is used for maintenance of tools that are used in operations.
PR05: IT/Office Maintenance

This order type is used for maintenance of IT/Office tools/equipment, i.e. PC, printer, notebook, photocopier, etc.
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2. Corrective Maintenance
This maintenance is triggered by the user and not by the maintenance plan.
If there is a breakdown or malfunction condition to the equipment/functional location, SAP is able to support the maintenance process by raising a notification
and creating the work order directly without a maintenance plan.
In TMI, the following Corrective Maintenance order types are identified:
CO01: System Maintenance

This order type is used for maintenance of the network systems, i.e. BSC, MSC, BTS, Transmission, etc.
CO02: Infrastructure Maintenance

This order type is used for maintenance of the infrastructure in the network systems, i.e. building, site whereby the equipment is installed
CO03: Fleet Maintenance

This order type is used for maintenance of Fleet/ Vehicles that are used to support their operations.
CO04: Tools & Test Gear Maintenance

This order type is used for maintenance of tools and test gear that are used in the operations
CO05: IT/Office Maintenance

This order type is used for maintenance of IT/Office tools/equipment, i.e. PC, printer, notebook, photocopier, etc.
When work is completed, the activities and history are kept in the system. History such as chronological activities in the work order, spare parts consumed,
actual maintenance costs incurred, actual time spent in performing the work and technical findings will be in the system. This information is crucial for reporting
and analysis.
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6.4.1 Maintenance Plan

6.4.1.1 Maintenance Plan Description
Maintenance plan is used to define time and scope of the work in advance. It is used in the maintenance of Vehicles, Network Equipment, IT/Office Equipment,
Tools Equipment and Site/Functional Location in TMI.
All equipment in TMI plant has a maintenance plan. The maintenance planning for Facilities/Infrastructure and Vehicles are time and performance based such
as every three months, six months, every 3500 km, and 5000 km. The rest will utilise time-based strategies only such as daily, weekly, monthly.
The Maintenance plan is also used as a reminder to maintain/calibrate tools and test equipment.
If two or more equipment share the same work scope and scheduled to be maintained simultaneously, a maintenance plan with many types of equipment will
be created. The plan will then generate a work order for equipment maintenance.
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6.4.1.2 Maintenance Plan Processing

Maintenance Plan Process Flow
New Equipment/
Functional Location
6.4.1.2.1
Create Maintenance
Plan
6.4.1.2.2
Create Maintenance
Item
Change in date and

work scope
6.4.1.2.5
Schedule Maintenance
Plan
6.4.1.2.3
Change Maintenance
Plan
6.4.1.2.4
Change Maintenance
Item
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Ref No.
Process
Component
Process
Owner
6.4.1.2.1
Create
Maintenance
Plan
Planner
When new equipment is purchased/ new functional

location is set, or existing equipment requires periodic
maintenance, maintenance plan can be created.
Maintenance plan requires the following data to be

ready before the plan can be created:
1. Equipment/Functional Location
2. Task list
3. Maintenance strategy
Maintenance plan is a complete plan, which schedules
the equipment to be maintained and define the work
scope required for that particular period of time. The
plan allows a different work scope to be performed for
the same equipment for different period.
Information needed to create a maintenance plan:
1. Maintenance category
2. Description
3. Equipment/Functional Location
4. Work centre
5. Planner group
6. Cycle set / maintenance strategy
7. Task list
8. Scheduling parameter
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Ref No.
Process
Component
Process
Owner
6.4.1.2.2
Create
Maintenance
Item
Planner
Create Maintenance Item for new equipment/functional

location purchased. Assign Task List to maintenance
item to determine what needs to be done. Assign
Maintenance Item to Maintenance Plan.
Order Type, Priority, Planner Group and Maintenance

Activity Type need to be defined first in the system
before the process can be carried out.
Order Type:
Priority:
High: Should be done within a 1 day period
Medium: Should be done within a 2 day period
Low: Should be done within a 7 day period
Planner Group:
ITO: IT/Office
NSS: Network Switching Subsystem
BSS: Base Station Subsystem
Maintenance Activity Type:
Inspection
Cleaning
Rectification
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Ref No.
Process
Component
Process
Owner
6.4.1.2.3
Change
Maintenance
Plan
Planner
If equipment/functional location is scrapped or no

longer operational, the plan needs to be changed
accordingly. Or else, the system will continue to create
work order for invalid equipment/functional location.
Maintenance Plan set for deletion.
6.4.1.2.4
Change
Maintenance
Item
Planner
If equipment/functional location is scrapped or no

longer operational, it needs to be removed from
maintenance item accordingly.
Equipment/functional
maintenance item.
6.4.1.2.5
Schedule
Maintenance
Plan
Planner
When a maintenance plan is to be activated, the plan

needs to be scheduled for the first time.
Maintenance Plan with Maintenance Item attached has

to be created completely and ready to be scheduled.
location
removed
from
Scheduling a maintenance plan means entering the

start date to trigger the maintenance cycle.
Then the system can start the automatic deadline
monitoring. When a plan is due, work order for the
appropriate equipment and job scope will be
automatically created by the system.
Information needed to start a plan:
1. Maintenance Plan number
2. Start date
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6.4.2 Preventive Maintenance Processing

6.4.2.1 Preventive Maintenance Description
Preventive maintenance refers to regular or periodic maintenance work in order to pre-empt any breakdowns. The Maintenance plan generates work orders
once equipment is due for maintenance. SAP generates one work order for each piece of equipment. The work scope or operations proposed by SAP is based
on the task list in the equipment.
There are five order types of preventive maintenance in TMI. They are IT/Office, Network, Infrastructure, Tools and Vehicles.
Dateline monitoring is automatically executed by the system daily. If a plan is due, the system will automatically create a work order. An administration staff can
print the work order summary report and pass it to the head of an area. The head will then assign the job to the relevant persons responsible. The process
thereafter is similar to Corrective Maintenance.
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6.4.2.2 Preventive Maintenance Processing

Preventive Maintenance Process Flow
6.4.2.2.1
Dateline Monitoring
Due?
Yes
6.4.2.2.2
Create & Release
Work Order
No
Require
Material?
No
Require
subcontract
work?
No
Perform
Work
Yes
Yes
Stock?
No
6.4.2.2.3
Create PR
6.4.4
Work
Completion
Yes
MM. Goods
Issue Material
Ref. to 4.4.9
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Ref No.
Process
Component
Process
Owner
6.4.2.2.1
Dateline
Monitoring
System
Dateline monitoring is a scheduled maintenance plan.

Dateline monitoring is used to check for maintenance
plans that are due and to generate relevant work
orders.
The automatic execution is set in a batch job that will

be scheduled to run at a predefined cycle.
Work orders generated by the system are based on the

frequency and job plan specified for that frequency.
The system will automatically release the work order

and create a settlement rule based on a cost centre
defined in an equipment to be maintained.
6.4.2.2.2
Create
Release
Order
and
Work
System
Page 279
The order types generated by the system will be

grouped as follow:
TM
International
Ref No.
Process
Component
Process
Owner
6.4.2.2.3
Create PR from
Work Order
System
Due to resources and skills constraint, some work

required external contractor to performed. In this case,
a PR will be created.
Since the PR is created from the work order, the two

documents are linked. In the PR, the maintenance
required may include:
Services needed
Desired vendor
Estimated value
Cost element
Purchasing group or buyer
The buyer will then proceed to create the PO after the

appropriate approval process.
All PR created from work order will have the account
assignment as Order. This sends the costs incurred
from the PR back to the work order.
If the vendor is an on-site contractor, no PR is required.
On-site contractor submit timesheet on a weekly basis.
Maintenance team will monitor the timesheet outside
the system. Once the work is completed, the
maintenance team will perform an accounts payable
posting directly into the system. The posting will be
done on a line item basis i.e. if there are 10 work
orders, there will be 10 line items with the value equally
distributed.
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6.4.3 Corrective Maintenance Processing

6.4.3.1 Corrective Maintenance Description
Corrective maintenance is unplanned maintenance. The triggering point for unplanned maintenance is when a piece of equipment is not performing as
expected. The operation users usually report the malfunction as they are on site and have the first hand information. The users will create a maintenance
request describing the faulty equipment, location of equipment, observation or details of the problem. The maintenance job will then be assigned to an
individual who is responsible for the job. With real-time information, the maintenance team is able to check for any new requests on the system.
From the request and details entered by the user, the maintenance personnel can act on the problem. He or she will know who raised the request and hence
know who to go to for more information. The next step is to go to the site/location and verify the problem. Sometimes, the problem can be wrongly classified.
For example, it can be an instrumentation problem as opposed to an earlier concluded mechanical problem. If this happens, the personnel will change the
person responsible in the request to the appropriate personnel. This scenario applies for all equipment types i.e. IT/Office, Network, Infrastructure, Tools and
Vehicles.
After inspection, the maintenance personnel will determine the next course of action. If the problem reported is not a real problem, or the problem is fixed
easily during the inspection, the personnel will update the activities on action taken and the equipment history. If the problem is a real problem, the personnel
will create a work order with reference to the maintenance request. The documents (maintenance request and work order) are dynamically linked in the
system. The Work order serves as an instruction and preparation to proceed with the work. This means the maintenance personnel can withdraw spare parts
from the warehouse and procure external services if needed. It is also possible for maintenance personal to check whether a contract with a vendor exists or if
an existing vendor is qualified the job. Should a suitable vendor be selected, there may be no need to seek internal resources.
If material is required for the work, the material can be reserved from the work order. The spare parts can be issued to the order directly. If no spare parts or
external services are available, then a Purchase Requisition can be raised from the work order. Once all work preparation is completed, actual work execution
can begin.
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International
6.4.3.2 Corrective Maintenance Processing

Corrective Maintenance Process Flow
6.4.3.2.1
Create
Notification
Maintenance
Request
Equipment
malfunction
Go to site/
location verify
problem
Inform
Maintenance
Team
Requir
e
Work?
No
6.4.3.2.2
Close Notification
& Update History
Yes
Perform
Work
6.4.4
Work Completion
6.4.3.2.3
Create, Update &
Release Work
Order
No
6.4.3.2.4
Create PR
Yes
Requir
e subcontrac
t work?
No
Require
Material
?
Yes
MM. Goods
Issue Ref.
To 4.4.9
Yes
Stock
?
No
Page 282
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International
Ref No.
Process
Component
Process
Owner
6.4.3.2.1
Create
Notification
Maintenance
Request
Operation
User
When the operation users detect an equipment

malfunction, the users will proceed to create a
notification type maintenance request. Here, the users
will key-in the equipment number and detail
description of the problem. The users will also enter
Job assignments to specific maintenance personnel.
Create a notification type maintenance request. This

has been predefined in SAP Standard as M1
Sometimes, operations users perform troubleshooting.

The findings by the operations users are also
documented in the notifications.
The users will then communicate with the assigned
personnel to inform him or her of the latest work. At
the same time, the maintenance personnel can proactively check any new maintenance request from the
system.
The maintenance personnel who receive the job will
then go to the site and do an inspection to verify the
correctness and rectify the problem reported.
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Ref No.
Process
Component
Process
Owner
6.4.4.2.2
Close
Notification &
Update
History
Maintenance
Team
Sometimes, the problem is too minor and can be

rectified immediately. Other times, it requires some
preparation before work can be performed.
If the problem is rectified immediately, there is no need

to create work order. The maintenance personnel will
update the history and close the request. The work is
then considered as completed.
History captured are:
1. Activities
2. Tasks
3. Cause
4. Damage
5. Component changed
6. Drawing if any
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International
Ref No.
Process
Component
Process
Owner
6.4.3.2.3
Create,
Update &
Release Work
Order
Maintenance
Team
Creating a work order is part of the job preparation.

The maintenance personnel will create a work order to
indicate that there is work to be done.
Maintenance personnel will create a work order with

reference to the maintenance request. Information in
the request such as equipment number, functional
location, and description will be copied to the work
order. The two documents are linked.
The work order needs to be specified with the tasks to
be performed based on the problem description. SAP
provides the option to type the operations manually or
select from a list of available tasks defined in the
system.
If any material is needed, a reservation can also be
generated from a work order. The maintenance
personnel will just enter the material code and
quantity. The system will automatically create a
reservation.
After all the work preparation and planning, the work
order needs to be released, Only then, goods can be
issued against the work order.
Releasing the work order will automatically create the
settlement rule for the receiver to the cost centre. This
receiver to the cost centre is set-up in the equipment
master.
Page 285
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International
Ref No.
Process
Component
Process
Owner
6.4.3.2.4
Create PR
from Work
Order
Maintenance
Team
Due to resources and skills constraint, some work

requires the work of external contractors. In this case,
a PR will be created.
Since the PR is created from the work order, the two

documents are linked. In the PR, the maintenance
may describe:
1. Description of services needed
2. Desired vendor
3. Estimated value
4. Cost element
5. Purchasing group or buyer
The buyer will then proceed to create the PO after the
appropriate approval process.
All PR created from work order will have the account
assignment as Order. This sends the costs incurred
from the PR back to the work order.
If the vendor is an on-site contractor, no PR is
required. On-site contractors submit timesheet on a
weekly basis. Maintenance team will monitor the
timesheet outside the system. Once the work is
completed, the maintenance team will perform an
accounts payable posting directly into the system. The
posting will be done on a line item basis i.e. if there
are 10 work orders, there will be 10 line items with the
value equally distributed.
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TM
International
6.4.4 Work Completion Processing

6.4.4.1 Work Completion Description
Work completion is the process of updating the work status and history. Upon finishing the work, the maintenance personnel enters the time spent on
performing the job. This is to track time spent in repairing the equipment/functional location. Next, the maintenance personnel updates the work orders work
scope if there are any changes made. He or she will then proceed to close the work order to indicate that the work is technically completed. Once the
completion indicator is set, no PR or material can be issued against the work order, and no changes can be made in the work order.
Preventive maintenance orders do not have any notification. During the course of maintenance, if there is a desire to keep track of any historical work orders
for the equipment/functional location, a notification can be created from work order to capture the history. Any notification created must be updated and closed.
The Settlement Rule in the work order is defaulted to the cost centre specified in the equipment/functional location. Settlement Rule defines the receiver of the
maintenance costs collected in the work order. At month end, a settlement program will be executed automatically by the system using a batch job. Settlement
is a process where the system transfers the costs collected in the work order to the respective cost centres.
Once the settlement is complete, a business completion can be set to the work order by the system. Business completion indicators bar the work order from
receiving any additional costs. This completes the cycle of maintenance.
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International
6.4.4.2 Work Completion Processing

Work Completion Process Flow
Work
Completed
6.4.4.2.1
Completion
Confirmation
6.4.4.2.2
Close Work
Order
With
Notificatio
n?
Yes
6.4.4.2.3
Update History &
Close Notification
No
Keep
History?
No
Month-End
Yes
6.4.4.2.4
Create Notification
& Update History
6.4.4.2.5
Run Settlement
6.4.5.2.6
Business Completion
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International
Ref No.
Process
Component
Process
Owner
6.4.4.2.1
Completion
Confirmation
Maintenance
Team
One of the steps after the actual work completion is to

update the system on actual duration spent on
performing the work. The information is needed for
reporting purpose.
The information is entered into the system either by:
Per operation per work order
Total duration per work order in an operation.
Data entered are:

1. Work order number
2. Operation number
3. Duration
4. Final completion indicator
6.4.4.2.2
Close Work
Order
Maintenance
Team
Once the maintenance personnel has completed the

work, and entered the time spent, the work order can
be closed technically.
This indicator prevents additional costs from being

posted to a work order. It also disallows any changes
to the work order.
6.4.4.2.3
Update
History and
Close
Notification
Maintenance
Team
Equipment history is updated into the system after the

job is completed. Notification it then closed to indicate
that the request has been attended to.
The maintenance personnel enters the following

information:
1. Activities
2. Damage code
3. Cause code
4. Object/component
5. Tasks/follow up actions for in-depth analysis
6. Additional comment in text form
7. Breakdown end time if any
This information is necessary for breakdown analysis
and reporting.
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International
Ref No.
Process
Component
Process
Owner
6.4.4.2.4
Create
Notification
and
Update
History
Maintenance
Team
If the work orders are triggered by the system via a

maintenance plan, there is no notification. When there
is a need to keep the history of the preventive
maintenance, a notification can be created for the
equipment from the work order.
The notification for the equipment is generated as a

notification activity report
(SAP standard for such notification type - M3).
6.4.4.2.5
Run
Settlement
System
Settlement is a process where the cost collected in a

work order is transferred to cost centres or internal
order. The costs collected are from goods issued from
warehouse or goods received from procurement of
external services
Settlement rule in work order is defaulted for all orders

during order release. The rule specifies the cost
receivers. The cost centre is taken from the cost
centre in the equipment/functional location master
data.
Note: Work order serves as a temporary cost collector

until the work is completed. Once completed, the
costs have to be transferred to cost centres or internal
orders.
A batch job will be scheduled to run at month end. The

program will post all actual costs in the work order to
the receiver stated in the settlement rule.
If the maintenance work goes across two months, the
costs collected for the current month will be posted
first. In the following month, additional costs will be
subsequently posted. If there is a reversal after the
first posting, the system will credit the accounts
accordingly.
6.4.4.2.6
Business
Completion
System
Business completion is the last step in maintenance

processing. Business completion is only possible once
all costs in work orders are settled and the work order
has a status technically completed.
Page 290
Business completion indicators disallow any activities

from or to the work order. No PR or goods issue can
be raised from the work order. Also, no goods receipt
to work order is allowed.
TM
International
6.5
No.
6.5.1
6.6
No.
6.6.1
Interfaces
Direction
Outbound
Key
Performance
System
Indicator
Description
Plant maintenance related data for KPI reporting to
be extracted from SAP.
Remarks
File structure of plant maintenance data to be
finalised at implementation.
List Of Customised Reports and Forms

Area
Order Print Set (Form)
Notification
(Form)
6.6.3
Cost of Running by SelfDriven Vehicles

Cost of KM by Vehicles
Print
Description
PM Orders will require Print Sets (Work Shop Paper, layouts) which
would include the standard information requirements, and include:
6.6.2
6.6.4
Set
Work Order Header / Operation information (Job Sheet)
Operation Confirmation List
Material Pick Lists (including Bar Coded Label for material

identification)
Document Lists
Etc.
PM Notifications would require a different output as these could be

used for quick jobs that do not need planning. These Print Sets
would be set up to provide the basic information i.e. Header data,
possible long text, Equipment or Functional Location, etc.
SAP standard/ABAP program

SAP has pre-set standard forms.
Should TMI require predefined formats, SAP
script will be utilised to develop the required
layouts.
Cost report for cost of maintenance by self-driven vehicle
SAP has pre-set standard forms.

Should TMI require predefined formats, SAP
script will be utilised to developed the required
layouts
ABAP program to create the report
Cost report for cost of maintenance per KM by vehicle
ABAP program to create the report
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TM

MySAP ERP Implementation

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

1 Introduction and Overview

Purpose of this Document

Document the transfer of information from TMI to Atos Origin

Structure of the Document

TMI Business Blueprint

TMI Business Blueprint

3. Integrated Systems Testing

Processes from TMI legal entities - TM International, MTN, TMI Bangladesh

Members of the Steering Committee.

Members of the Project Team.

TMI Business Blueprint

TMI Business Blueprint

Short Description of Modification

Original Version by Atos Origin

Summary of Key Features and High Level System Overview

TMI Business Blueprint

TMI Business Blueprint

1.3.1 Key Business Features

Key Business Feature

Develop a single set of standards for the processing of financial

TMI Business Blueprint

Develop a standard process to effectively and efficiently monitor and

TMI Business Blueprint

Develop a standard set of process flows for procurement and inventory

Sales and Distribution

Develop a standard set of maintenance business processes which will

TMI Business Blueprint

TMI Business Blueprint

1.3.2 Summary of SAP Modules and Functionalities to be Implemented

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

TMI Business Blueprint

1.3.3 Key Management Considerations

1.3.3.1 Use of a Data Warehousing System to obtain Cross System Information

1.3.3.2 Implementation of SAP HR

TMI Business Blueprint

TMI Business Blueprint

1.3.3.4 Possible Enhancements Needed to SAP MM

TMI Business Blueprint

TMI Business Blueprint

Summary of Global SAP Settings Required for TMI

SAP Global Setting

TMI Business Blueprint

A Purchasing Organisation to be defined for each of the following company codes.

Purchasing Groups to be based on functional buying groups. List to be finalised at

Plants to represent branches or headquarters.

Multiple Storage Locations for each Plant where required.

SAP Global Setting