RD.050 BUSINESS REQUIREMENTS SCENARIOS FOR CORE BUSINESS PROCESS
ORAERP Inc. COMAPNY
Oracle Accounts Payables
Author: Creation Date:
02-June-13
Last Updated:
02-June-13
Document Ref:
RD050_AP
Version:
1.0 Final
Approvals:
Doc Ref:
RD.050 Business Requirements Scenarios RD.050
Ver.1.1 Final
Document Control
Change Record 4
Date
Author
29-May13
Versio n
Change Reference
1.0
No Previous Document
References Document Name
Ref.
MOM & AS-IS flow charts recorded Accounting policies and procedure manual by D&T Business plans for unbundled companies by D&T Proposed Organizational Chart for 10 companies Sector Law
-AP ---
RD.050 Business Requirements Scenarios RD.050
Doc Ref: Ver.1.1 Final
Note To Holders: If you receive an electronic copy of this d ocument and print it out, please write your name on the equivalent of the cover page, for document control purposes. If you receive a hard copy of this document, please write your name on the fron t cover, for document control purposes.
RD.050 Business Requirements Scenarios RD.050
Doc Ref: Ver.1.1 Final
1. BUSINESS PROCESS IDENTIFICATION BOOKMARK NOT DEFINED.
ERROR!
1.1 Supplier Creation (AP001) .................................................................................................................. 8 1.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002) ................................... 8 1.3 Creating Standard Invoice – Without Purchase Order (AP003) ...................................... 10 1.4 Creating Prepayment Invoice (AP004) ....................................................................................... 12 1.5 Entering Credit Memo (AP005) ...................................................................................................... 14 1.6 Payment (AP006) .................................................................................................................................. 15 2. BUSINESS PROCESS DIAGRAMS BOOKMARK NOT DEFINED.
ERROR!
2.1 Invoice WorkBench................................................................. Error! Bookmark not defined. 2.4 Invoice Processing For Assets ............................................ Error! Bookmark not defined. 2.5 Payment Process ...................................................................... Error! Bookmark not defined. 2.6 Month End Process .................................................................. Error! Bookmark not defined. 3. OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE BOOKMARK NOT DEFINED.
ERROR!
RD.050 Business Requirements Scenarios
Doc Ref: RD.050 Ver.1.1 Final
Objectives The objective of this document is to outline the Business Requirements, in as much d etail as possible, related to General Ledger business processes in ORAERP COM INC., Abu Dhabi, to facilitate implementation of Oracle Accounts Payables. BASIC GUIDELINES TOWARDS FINALISATION OF BUSINESS REQUIREMENTS/CURRENT BUSINESS BASELINE DOCUMENT SHALL BE TO ENSURE AN EFFICIENT, SMOOTH AND EFFECTIVE IMPLEMENTATION, BY OBSERVING THE FOLLOWING: 1. The objective is to utilize to the best possible extent, the flexibility and facilities of Oracle General Ledger. 2. Flexibility, therefore, will be the norm and will be ‘Built – In’ at every stage to the best possible extent, based on available current information on the Business Processes given by the users. 3. Reduction of the gaps will be ensured as far as possible.
RD.050 Business Requirements Scenarios
Doc Ref: RD.050 Ver.1.1 Final
Scope The scope of this study is limited to the functions pertaining to Accounts Payble based on the Business Requirements information provided by ORAERP COM INC.. The focus of the study and this document is to identify and outline the processes involving the management of the Accounts Payable functions in the Oracle Application. Business requirements Information A combination of the following methods were used for collecting data on current business scenario and future requirement for the 10 new companies
Standard questionnaire based discussions with purchasing and stores departments on requirement of standard functions, special issues Visit to all all major stores and study of all processes, procedure, documents Overview of current IT systems being used Current forms and reports used for purchasing, contracts and inventory functions Document review of proposed Business plans, Statement of Accounting policies and procedures by Deloitte & Touche with reference to inventory & purchasing function (SAPP 3 & 12) Study of proposed draft organization structure for the 10 companies and sector law Information collected from Function Heads and their team on various dates during the Requirements Analysis in Jan 2003, through meetings and discussions at various locations. Discussions with user departments like Services, Generation, T&C, Projects etc Discussions with General Managers of new companies. Validation of requirements specified in the tender documents.
AS-IS Processes
Based on above and various Minutes of Meetings all the ‘AS -IS’ processes as understood were drawn. TO-BE Processes
Doc Ref: RD.050 Ver.1.1 Final
RD.050 Business Requirements Scenarios
Abbr.
Detail
AP INV
Accounts Payable Invoice
CUR
Currency
INT
Invoice Type
SEQ
Sequence
Amt
Amount
DR
Debit
CR
Credit
LT
Ledger Type
CUR
Currency Code
INB
Invoice Batch
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
1.1 Supplier Creation (AP001)
Process: Supplier Creation Mapping Team: ORAERP COM INC. Librarian:
Business Function: Accounts Payable
Date :May 30,2013 Process Owner: Finance Team Core (Y/N) : Yes
Priority (H, M, L): High
Process Number: AP001
Description: This process explains the process of creating supplier
Assumptions
ADBC Company, Supplier master data is created at corporation level and the respective sites are created in each legal entity/operating unit
Event
Description: This process is triggered when we want to purchase any material from the suppliers. Number:AP.001 Type: Master
Source Agent: Finance Team
Mechanisms: System Assisted
Process ID #
Elementary Business Function
Description
Type
AP001.01
Check whether the supplier exists in the system or not.
Supplier Account
AP001.02
Inquire a Supplier record in the system with appropriate information such as Name or Number or etc.
Internal – System Assisted. Use PIN number to be unique. Field should be mandatory Internal – System Assisted
AP001.03
If the supplier is not defined, enter necessary details such as Supplier name, supplier type, Bank account etc Supplier details created with automatic supplier number.
AP001.04
Agent
Status
Query and Check
Finance Team
Active
Supplier Account
Result of Supplier query
Finance Team
Active
Internal – Manual
Supplier/Employ ee Account
Supplier details entered
Finance Team
Active
Internal – System Assisted
Supplier/Employ ee Account
Record Created
Finance Team
Active
1.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002)
8
Result
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
Process: Standard Invoice –With Purchase Order (PO) Mapping Team: ORAERP COM INC. Librarian:
Business Function: Accounts Payable
Date : June-2-2013
Priority (H, M, L): High
Process Owner: Finance Team Core (Y/N) Yes
Process Number: AP002
Description: This Process explains creation of standard invoice, which has approved purchase order/ Receipt.
Assumptions:
In ORAERP COM INC. invoices are created at operating unit level and are either matched with the PO or receipt.
Event
Description: This process is triggered when we receive the material from the supplier. Number:AP.002
Type: Transaction
Source Agent: Finance Team
Mechanisms: System Assisted
Process ID #
Description
Type
Elementary Business Function
AP002.01
Receive the Invoice from Supplier.
Internal – Manual
Standard Invoice – With PO
AP002.02
Enter the Invoice transaction into the system.
Internal – System Assisted
Standard Invoice – With PO
AP002.04
If it is a foreign currency invoice, enter the invoice amount in foreign currency. System should be able to convert it into functional currency automatically based on corporate/user/spot rates. Invoice currency should be same as PO/GRN Currency. Payment currency should be same as Invoice currency. Matching of the Invoice with PO and Receipt based on 2-way/3-way/4-way. The matching
Internal – System Assisted
Internal – System Assisted Internal – System Assisted Internal – System Assisted
AP002.05 AP002.06 AP002.07
9
Result
Agent
Status
Finance Team
Active
Finance Team
Active
Standard Invoice – With PO
Invoice is available for entering into the system. Invoice available for matching to PO and receipt Invoice entered in the system
Finance Team
Active
Standard Invoice – With PO Standard Invoice – With PO Standard Invoice – With PO
Invoice entered in the system Invoice entered in the system Matched Invoice with PO /
Finance Team
Active
Finance Team
Active
Finance Team
Active
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
Process ID #
Description
Elementary Business Function
Type
will be based on the supplier. AP002.08
AP002.09
AP002.11
Result
Agent
Receipt.
Validate the Invoice. System would validate whether the invoice quantity and amount are same as PO /GRN If some information is needed for the invoice, place a hold manually till receiving the information. Create Accounting for the Invoice and transfer the journal entries in detail to General Ledger.
Internal – System Assisted
Standard Invoice – With PO
Invoice is validated
Finance Team
Active
Internal – System Assisted
Standard Invoice – With PO
Hold placed manually.
Finance Team
Active
Internal – System Assisted
Standard Invoice – With PO
Accounting entries Created.
Finance Team
Active
1.3 Creating Standard Invoice – Without Purchase Order (AP003)
Process: Standard Invoice –Without Purchase Order Mapping Team: ADBC Company
Business Function: Accounts Payable
Librarian:
Priority (H, M, L): High
10
Status
Date : June-2-2013 Process Owner: Finance Team Core (Y/N) Yes
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
Process Number: AP003
Description: This Process explains creation of Standard Invoice, which does not have purchase order.
Assumptions:
In ADCB supplier invoices are created at operating unit level and the invoice lines and distributions are created manually. Description: This process is triggered when the services are received/any expenses incurred
Event
Number:AP.03
Type: Transaction
Source Agent: Finance Team
Mechanisms: System Assisted
Process ID #
Description
Type
Elementary Business Function
AP003.01
Receive the invoices from supplier or other concerned department.
Internal – Manual
Standard Invoice – Without PO
AP003.02
Record a Standard Invoice details into the system with the correct expense account.
Internal – System Assisted
Standard Invoice – Without PO
AP003.03
If it is a foreign currency invoice, enter the invoice amount in foreign currency. System should be able to convert it into functional currency automatically based on corporate/user/spot rates. Payment currency should be same as Invoice currency.
Internal – System Assisted
Standard Invoice – Without PO
Internal – System Assisted
Standard Invoice – With PO
AP003.05
Validate the Invoice in the System.
Internal – System Assisted
Standard Invoice – Without PO
AP003.07
Create Accounting for the Invoice and transfer the Journal Entries to General Ledger
Internal – System Assisted
Standard Invoice – Without PO
AP003.10
System should allow defining distribution sets and assigning them to Supplier/Invoice.
Internal – System Assisted
Distribution Sets
AP003.04
11
Result
Agent
Status
Invoice is available for recording into system Invoice entered in the system Invoice entered in the system
Finance Team
Active
Finance Team
Active
Finance Team
Active
Invoice entered in the system Invoice is available for approval Accounting entries generated Distribution Sets defined and assigned
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050 Ver 1.1 Final
12
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
1.4 Creating Prepayment Invoice (AP004)
Process: Prepayment Invoice
Business Function: Accounts Payable
Date : June-2-2013
Mapping Team : ADBC Company
Process Owner: Finance Team
Librarian:
Priority (H, M, L): High
Core (Y/N) Yes
Process Number: AP004
Description: This Process explains the creation of prepayments, which are treated as advance payment to suppliers/ employees.
Assumptions:
ADBC pays advances to the suppliers and employees.
Event
Description: This process is triggered when there are any advance payments to be made to the suppliers/ employees Number:AP.04
Type: Transaction
Source Agent: Finance Team
Mechanisms: System Assisted
Process ID #
Description
Type
Elementary Business Function
AP004.01
Receive contractual agreement for making the advance payment
Internal – Manual
Advance Payment
AP004.02
Enter a Advance / Prepayment Invoice into the system
Internal – System Assisted
Advance Payment
AP004.03
Internal – System Assisted
Advance Payment
AP004.04
Provide a Descriptive Flex field to capture PO, Reference details. The list should link to the PO, If it is to be referred to PO. Validate the Prepayment Invoice.
Internal – System Assisted
Advance Payment
AP004.05
Approve the Prepayment in the system
Internal – System Assisted
Advance Payment
13
Result
Agent
Status
Prepayment Invoice is available for recording into the system. Prepayment invoice is created. DFF data is captured.
Finance Team
Active
Finance Team
Active
Finance Team
Active
Prepayment is validated Prepayment is available for
Finance Team
Active
Finance Team
Active
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
Process ID #
Description
Elementary Business Function
Type
AP004.06
Create Accounting for Prepayment
Internal – System Assisted
Advance Payment
AP004.07
Record a payment transaction into the System
Internal – System Assisted
Advance Payment
AP004.08
Apply the prepayment upon receiving the invoice from Vendor. Create the Accounting and transfer the entire to General Ledger
Internal – System Assisted
Advance Payment
Internal – System Assisted
Prepayment
AP004.09
Result payment Prepayment Liability Clearing is created. Prepayment Available for application Prepayment Applied Alert is sent
Agent
Status
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
1.5 Entering Credit Memo (AP005)
Process: Entering Credit Memo
Business Function: Accounts Payable
Date : June-2-2013
Mapping Team: ORAERP COM INC. Librarian:
Priority (H, M, L): High
Process Owner: Finance Team Core (Y/N) Yes
Process Number: AP005
Description: This process explains entering Credit memo.
Assumptions:
Standard invoice/material is returned to the supplier
Event
Description: This process is triggered if any purchase returns are there. Number:AP.005 Mechanisms: System Assisted
14
Type: Transaction
Source Agent: Finance Team
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
Process ID #
Description
Elementary Business Function
Type
AP005.01
Receive details of Credit t note from the supplier or the concerned department
Internal – Manual
Entering Credit Memo
AP005.02
Internal – System Assisted
AP005.03
Create a Credit Note transaction into the system with negative value and match to a PO if there was a PO Validate the Credit Note in the system.
AP005.04
AP005.05
Result
Agent
Status
Finance Team
Active
Entering Credit Memo
Credit memo is available for recording into the system Credit Memo is created.
Finance Team
Active
Internal – System Assisted
Entering Credit Memo
Credit Memo Validated
Finance Team
Active
Approve the Credit Note in the system
Internal – System Assisted
Entering Credit Memo
Finance Team
Active
Create Accounting and Transfer to GL
Internal – System Assisted
Entering Credit Memo
Credit note is available for refund/adjust ment Accounting is created
Finance Team
Active
1.6 Payment (AP006)
Process: Entering Payments
Business Function: Accounts Payable
Mapping Team: ADBC Company Librarian:
Date : June-2-2013 Process Owner: Finance Team
Priority (H, M, L): High
Core (Y/N) Yes
Process Number: AP006
Description: This explains the processing of supplier/employee payments for making invoice payments.
Assumptions: Event
ADBC makes payments in different types like cash, check, bank transfer, L/C Description: This process is triggered when the invoices are to be paid Number:AP.006 Type: Transaction Mechanisms: System Assisted
15
Source Agent: Finance Team
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
Process ID #
Description
Type
Elementary Business Function
AP009.01
Enter the payment details of the supplier like payment amount, bank etc.
Internal – System Assisted
Payment
AP009.02
System should be able to print Checks (Pre printed running stationery) on payment.
Internal – System Assisted
Payment
AP009.03
ADBC does payment by Check Payments mostly and cash payments very rarely.
Internal – System Assisted
Payment
AP009.04
Payment currency should be same as Invoice currency.
Internal – System Assisted
Standard Invoice – With PO
AP009.05
Create accounting and Transfer to GL. It updates the Bank Accounts and Realized Gain/Loss System should allow users to void/cancel a payment. System should print remittance advice on payment.
Internal – System Assisted
Payment
Internal – System Assisted
Payment
Internal – System Assisted
Payment
AP009.06 AP009.07
2. BUSINESS PROCESS DIAGRAM
16
Result
Agent
Status
Payment voucher is created Payment voucher is created
Finance Team
Active
Finance Team
Active
Payment voucher is created Invoice entered in the system Accounting is created.
Finance Team
Active
Finance Team
Active
Finance Team
Active
Payment is canceled/void. Remittance advice is printed.
Finance Team
Active
Finance Team
Active
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
2.1 Invoice Creation:
Process for Asset
Start
Receive the Invoice from Supplier
Match the Invoice Information with GRN
17
Approve the Invoice
Create Accounting & Run Transfer to GL Program
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050 Ver 1.1 Final
2.2 Invoice Payment Process:
18
Doc. Ref: RD.050
RD.050 Business Requirements Scenarios
Ver 1.1 Final
Payments to voided
Payment
YES
Void Payments (B) Actions
Select Invoice for Payment
Generate Payments
Match Payments to invoices Payment Delivery Report Cheques
19
Payments Approved?
NO
Correct and Reapprove
