Alok Industries Limited
Financial Accounting Business Blueprint
Version 2.0
11th
Floor, Air India Building
Nariman Point um!ai " 21
#AN$A%& 200'
(on)identialit* +tatement
This document contains information that is proprietary and confidential to Tata Consultancy Services, which shall not be disclosed outside Alok Industries Ltd., transmitted, or duplicated, used used in whole whole or in part part for any purp purpose ose other other than than its inten intende ded d purp purpose ose.. Any Any use or disclosure in whole or in part of this information without express written permission of Tata Consultancy Services is prohibited. Any other company and product names mentioned are used for identification purposes only, and may be trademarks of their respective owners.
Copyri!ht "##$, Tata Consultancy Services %TCS&.
This is a hard copy of a document document maintained on electronic media. It may not be the latest version. 'lease ascertain the latest version from the (ocument )aster list available with the 'ro*ect )ana!er.
(on)identialit* +tatement
This document contains information that is proprietary and confidential to Tata Consultancy Services, which shall not be disclosed outside Alok Industries Ltd., transmitted, or duplicated, used used in whole whole or in part part for any purp purpose ose other other than than its inten intende ded d purp purpose ose.. Any Any use or disclosure in whole or in part of this information without express written permission of Tata Consultancy Services is prohibited. Any other company and product names mentioned are used for identification purposes only, and may be trademarks of their respective owners.
Copyri!ht "##$, Tata Consultancy Services %TCS&.
This is a hard copy of a document document maintained on electronic media. It may not be the latest version. 'lease ascertain the latest version from the (ocument )aster list available with the 'ro*ect )ana!er.
Financial Accounting Business Blueprint Ver 2.0ALOK-SAP-FI-BBP-002
DOCUMENT RELEASE NOTICE +otice +o. Customer Alok Industries Limited, Lower 'arel, )umbai 'ro*ect SA' Implementation (ocument details Name
Version No. Desri!"ion
-inancial Accountin! usiness lueprint
".#
usiness lueprint (ocument of -in -inanci ncial Acco ccountin! tin! )odule
/evision details A"ion "a#en $A%%&%e'&()*
Pree%in) Ne+ Re,ision Pa)e No. Pa)e No. Desri!"ion
Chan!e /e!ister serial numbers covered The documents or revised pa!es are sub*ect to document control. 'lease keep them up0to0date usin! the release notices from the distributor of the document. These are confidential documents. 1nauthorised access or copyin! is prohibited. Approved by Authorised by
(ate (ate
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
P%FA(
Purpose o) this ocument The purpose of this document is to record the business process re2uirements of Alok Industries Limited %AL34& and outline the re2uirement mappin! in SA'. Intended Audience The intended audience for the -inancial Accountin! Accountin! usiness lueprint are the employees of AL34 and other persons authorised by AL34 who are in any way related to usiness 'rocesses in -inancial Accountin!. %elated ocuments %e)erences (ocuments referred to prepare -I usiness lueprint (ocument are as follows
+. No. 3itle 5 As0Is and To0e documents
Version +ot Specified
(on)idential $ncontrolled /hen printed
Author AL34
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Financial Accounting Business Blueprint Ver 2.0-
A!!re4iations and Acron*ms The followin! abbreviations and acronyms have been used in this document A!!re4iationAcron *m
escription
C3
Controllin!
))
)aterial )ana!ement
-I
-inancial Accountin!
'3
'urchase 3rder
S(
Sales and (istribution
TCS
Tata Consultancy Services Ltd.
T(S
Tax (educted at Source
A1C
Asset under Construction
AA
Asset Accountin!
6L
6eneral Led!er
A/
Accounts /eceivable
A'
Accounts 'ayable
7AT
7alue Added Tax
87
8ournal 9ntry
(r.
(ebit
Cr.
Credit
Alok
Alok Industries Ltd.
6rabal
6rabal Alok Impex Ltd.
T0Code
Transaction Code
6/
6oods /eceipt.
'3:
'artially 3riented :arn
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Financial Accounting Business Blueprint Ver 2.0-
5rgani6ation o) this ocument The -inancial Accountin! usiness lueprint consists of ; chapters. These are as follows
Chapter 5 3r!ani
Chapter " )aster (ata = This chapter !ives the details about the master data re2uired for various components.
Chapter > 6eneral Led!er deals with the 6eneral led!er transactions
Chapter ? Accounts /eceivable deals with the business transactions done with the Customers
Chapter $ Accounts 'ayable deals with the business transactions done with the 7endors.
Chapter @ Asset Accountin! which deals with the maintenance of Assets and transactions pertainin! to -ixed Assets
Chapter ; ank Accountin!, which deals with bankin! transactions, like depositin! of checks, payment transactions and bank reconciliation.
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Financial Accounting Business Blueprint Ver 2.0-
Contents 1
2
5rgani6ation +tructure
1"1
5.5 9xpectation 5." (escription 5.> Special Considerations 5.? Chan!es to 9xistin! 'rocesses 5.$ Solution in SA' 5.@ 6aps 5.; orkaround Solutions 5.B Inte!ration /e2uirements 5. /eportin! /e2uirements 5.5# Authorisation /e2uirements 5.55 )i!ration /e2uirements
505 505 50" 50" 50" 50$ 50$ 50$ 50@ 50@ 50@
aster ata
2"7
".5 9xpectation "." (escription ".> Special Considerations ".? Chan!es to 9xistin! 'rocesses ".$ Solution in SA' ".@ 6aps ".; orkaround Solutions ".B Inte!ration /e2uirements ". /eportin! /e2uirements ".5# Authorisation /e2uirements ".55 )i!ration /e2uirements
8
9eneral Ledger >.5 >." >.> >.? >.$ >.@ >.; >.B >.
"0; "0; "0; "0; "0B "05 "05 "05 "05 "0"# "0"#
8"21
9xpectation (escription Special Considerations Chan!es to 9xistin! 'rocesses Solution in SA' 6aps orkaround Solutions Inte!ration /e2uirements /eportin! /e2uirements (on)idential $ncontrolled /hen printed
>0"5 >0"5 >0"" >0"" >0"> >0>> >0>> >0>> >0>$ 4 o) 1
Financial Accounting Business Blueprint Ver 2.0-
>.5# Authorisation /e2uirements >.55 )i!ration /e2uirements
:
Accounts %ecei4a!le ?.5 ?." ?.> ?.? ?.$ ?.@ ?.; ?.B ?. ?.5# ?.55
;
Accounts Pa*a!le $.5 $." $.> $.? $.$ $.@ $.; $.B $. $.5# $.55
'
9xpectation (escription Special Considerations Chan!es in 9xistin! 'rocesses Solution in SA' 6aps orkaround Solutions Inte!ration /e2uirements /eportin! /e2uirements Authorisation /e2uirements )i!ration /e2uirements
9xpectation (escription Special Considerations Chan!es to 9xistin! 'rocesses Solution in SA' 6aps orkaround Solutions Inte!ration /e2uirements /eportin! /e2uirements Authorisation /e2uirements )i!ration /e2uirements
Asset Accounting @.5 9xpectation @." (escription @.> Special Considerations @.? Chan!es to 9xistin! 'rocesses @.$ Solution in SA' @.@ 6aps @.; orkaround Solutions @.B Inte!ration /e2uirements @. /eportin! /e2uirements @.5# Authorisation /e2uirements (on)idential $ncontrolled /hen printed
>0>$ >0>$
:"8' ?0>@ ?0>@ ?0>; ?0>; ?0>; ?0?? ?0?$ ?0?$ ?0?$ ?0?$ ?0?@
;":7 $0?; $0?; $0?B $0?B $0?B $0$ $0$ $0$ $0@# $0@# $0@#
'"'1 @0@5 @0@5 @0@5 @0@5 @0@" @0@@ @0@@ @0@; @0@; @0@; 4i o) 1
Financial Accounting Business Blueprint Ver 2.0-
@.55
7
)i!ration /e2uirements
Bank Accounting ;." (escription ;.> Special Considerations ;.? Chan!es to 9xistin! 'rocesses ;.$ Solution in SA' ;.@ 6aps ;.; orkaround Solutions ;.B Inte!ration /e2uirements ;. /eportin! /e2uirements ;.5# Authorisation /e2uirements ;.55 )i!ration /e2uirements
(on)idential $ncontrolled /hen printed
@0@;
7"'< ;0@ ;0@ ;0@ ;0@ ;0;5 ;0;5 ;0;" ;0;" ;0;" ;0;"
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Financial Accounting Business Blueprint Ver 2.0-
1
5rgani6ation +tructure
1.1
=pectation The 3r!ani
1.2
escription The 3r!ani
o
o
Alok will be doin! expansion by backward inte!ration. They shall start manufacturin! '3: the raw material that they are now procurin!. This will be mainly for captive consumption. They shall also have the pro*ect for Spinnin!. Alok shall introduce a new division product !roup Terry Towel under their Fome Textile (ivision. (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0o
1.8
Alok shall also start retailin! of their products.
+pecial (onsiderations +one
1.:
(hanges to =isting Processes +one
1.;
+olution in +AP The 3r!anisation structure elements in hierarchical form to be created in AL34 for SA' implementation is explained below
C'ien" ALOK
C(ar" o- De!reia"ion !reia"ion
C(ar" o- Aon"s
CD0/
CA0/
Cre%i" Con"ro' Area A'o#
Com!an Co%e
Com!an Co%e
A'o# In%. L"%
1ra2a' A'o#
� 3A3A (5N+$L3AN(& +1%VI(1+ In confidence from TCS
1. Client It is the hi!hest level in the SA' System hierarchy. Specifications that are made, or data that is entered at this level are valid for all company codes and for all other or!ani
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Financial Accounting Business Blueprint Ver 2.0-
therefore to be maintained only once. This ensures that the data is consistent. AL34 will be at the Client level with a > di!it numerical code.
2. Credit Control Area It is the or!anisational unit in which all the accounts receivable from a customer are totalled. This credit control area can be used in several company codes, which enables tracin! the customer limits across the individual unit. There will be one credit control area. This Credit Control Area will be used for Alok and 6rabal.
Credit Control Area AL34
(escription Alok Credit Control Area
3. Controlling Area The controllin! area is the central or!ani
Controllin! Area
(escription (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
AL34
Alok Industries Controllin! Area
4. Company Code The company code is the central or!ani
Company Code
(escription
AL34
Alok Industries Ltd.
6/L
6rabal Alok Impex Ltd.
Fiscal *ear Variant The fiscal year of both the Company Codes is from 5st April to >5st )arch. Fence the variant 7> will be attached to both the Company Codes, which is 5" postin! periods April to )arch and ? special periods.
5. Chart of Depreciation Charts of depreciation are used in order to mana!e various le!al re2uirements for the depreciation and valuation of assets. These charts of depreciation are usually country0specific and are defined independently of the other or!ani
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Financial Accounting Business Blueprint Ver 2.0-
Chart of (epreciation
(escription
C(#5
1.'
Alok Chart of (epreciation
9aps +one
1.7
>orkaround +olutions +one
1.
Integration %e?uirements Inte!ration with )), S( and AA is done as follows FI" Integration The inte!ration point between )) and -I lie at the followin! levels 'urchasin! 3r!ani
The details of the above linkin! from Alok and 6rabal perspective can be referred to in the )) lueprint document.
FI"+ Integration There are two points of inte!ration between the Sales and (istribution %S(& and -inancial %-I& modules of SA'. These are Sales 3r!ani
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Financial Accounting Business Blueprint Ver 2.0-
FI"AA Integration Asset Accountin! is inte!rated with -inancial Accountin! by the Asset Class and the Account (etermination for the Asset Class.
1.<
%eporting %e?uirements -inancial Statements are to be !enerated separately for Alok Industries Ltd. and 6rabal Alok Impex Ltd. as per the format specified by Schedule 7I of the Companies Act, 5$@.
1.10
Authorisation %e?uirements The authori
1.11
igration %e?uirements +one
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Financial Accounting Business Blueprint Ver 2.0-
2
aster ata
2.1
=pectation The )aster (ata should ensure that all the necessary details about all the business transactions are captured in such a way that it facilitates smooth transactions avoidin! data redundancy and ensures proper reportin!.
2.2
escription The )aster (ata that are re2uired are o
6eneral Led!er )aster = This contains the data relevant to the 6L Accounts.
o
Customer )aster = Customer )aster contains the data re2uired to do business with your Customers
o
7endor )aster = The vendor master record contains all the data you re2uire to do business with your vendors
o
Asset )aster = The Asset )aster record contains all data re2uired to carry out transactions related to -ixed Assets
o
ank )aster = The ank )aster contains all the data relevant to the ank Accounts re2uired to carry out the bankin! transactions.
The functions in the master records are Create, Chan!e, (isplay, lockDunblock and (elete. (eletion however can be done only if there are no values posted for that master.
2.8
+pecial (onsiderations +one
2.:
(hanges to =isting Processes This new scheme of Chart of Accounts E 6L )aster data will consider the future expansion E diversification plans for Alok as a whole thus incorporatin! new 6L accounts that may not be used now but in the future. (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
The Chart of Accounts permits seamless interface between all the modules of SA'. All transactions, which update financial information, are directly carried out when the base transaction is carried out in the other modules. This will also prevent any manual postin! to such an account.
2.;
+olution in +AP General Ledger Chart of Accounts :
The Chart of Accounts aims at providin! a directory of
6L accounts that provides a framework for recordin! of values and ensures an orderly renderin! of accountin! data. It also provides the basis for presentin! financial information for external reportin!. A Chart of Accounts is assi!ned to every company code. )ore than one company code can use the same Chart of Accounts. This chart of accounts is the operatin! chart of accounts and is used for the daily postin!s in this company code.
oth Alok and 6rabal will use the same 3perational Chart of Accounts Code
Chart of Accounts
CA#5
Alok Chart of Accounts
Account 9roups The account !roup is a summary of accounts based on criteria that effects how master records are created. The account !roup also defines the set up when creatin! a 6DL account in the company code and chart of accounts. The Account 6roup determines o
The number interval from which the account number is selected when a 6DL account is created.
o
The screen layout for creatin! 6DL accounts in the company code0 specific area (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
hen creatin! a 6L account in the Chart of Accounts, an Account 6roup must be specified. -ollowin! Account !roups will be created with the defined number ran!es. Account
+ame
6roup
-rom
To Account
Account
A()
Admin E Sellin! 9xp
?>######
?>
CASF
Cash E ank Accounts
";######
";
(9'
(epreciation 9xpenses
?$######
?$
9)'
'ayment E 'rov for
?"######
?"
9mployees -A
-ixed Asset accounts
"5######
">
-I+
-inancial 9xpenses
??######
??
I+7
Inventory Accounts
"$######
"$
I+7T
Investment Accounts
"?######
"?
LEA
Loan E Advances
"B######
"B
LIA
Current Liabilities
5$######
5$
)-6
)anufacturin! E 3peratin!
?5######
?5
9xp 3TF
3ther Income
>"######
>"
'/37
'rovisions
5@######
5@
/9C9
Sundry (ebtors
"@######
"@
/9S
/eserves E Surplus
5"######
5"
SAL9
Sales
>5######
>5
S9CL
Secured Loans
5>######
5>
1+SL
1nsecured Loans
5?######
5?
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Financial Accounting Business Blueprint Ver 2.0-
6eneral Led!er Account )aster /ecords All transaction level data in accountin! is captured within a 6L account. 9ach 6L account is maintained as a master record, which controls the data that can be posted into a particular type of account. The 6eneral Led!er account master records control how business transactions are recorded and posted to the account. In the 6L account master records, a basic distinction is made between information contained in Chart of Accounts level E Company Code specific 6DL account master data in the chart of accounts area contains information about the 6DL account that is valid for all company codes. The chart of accounts contains the information that controls how an account functions and how a 6DL account is created in a company code.
The followin! information is contained in the chart of accounts area of a 6DL account master record The chart of accounts The account number and account name %short and lon! text& The indicator that specifies whether the account is a balance sheet account or a 'EL statement account. The account !roup The Chart of Accounts area also contains a marker that identifies it as a 'rofit and Loss account or a alance Sheet account. 9ach master data record is also assi!ned to an account !roup in the chart of accounts. hen you set up an account, the system ensures that all account numbers are (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
uni2ue. At the start of a new fiscal year, the balance of a balance sheet account is carried forward. -or 'EL statement accounts, you must specify the account to which the profit or loss is carried forward at the end of a fiscal year.
The items that are assi!ned at Company code level are o
Currency
o
Tax cate!ory
o
3pen item mana!ement
o
Line Item (isplay
o
Sort 4ey
o
-ield Status 6roup
The master data record also identifies whether an account is a reconciliation account. These /econciliation accounts !roup to!ether, the value items from the accounts of the individual sub0led!ers in 6eneral Led!er accountin!. -or e.!. Accounts from Accounts /eceivable are a!!re!ated in the GAccount /eceivableH 6eneral Led!er reconciliation account. 'ostin!s to these reconciliation accounts cannot be made directly.
The below table describes fields in the 6L account master record and their si!nificance Sr. -ield
(escription
+o. 5
6DL Account
The 6DL account number identifies the 6DL account in a
+umber
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Financial Accounting Business Blueprint Ver 2.0-
"
Company Code
The company code in which the 6L account will be used. This field will be populated in order to specify company code specific items in the 6L master.
>
6DL account !roup
An ob*ect whose attributes determine the creation of master records. An account !roup must be assi!ned to each master record. It controls account number ran!es and screen layouts.
?
Account is a
Indicates that the 6DL account is mana!ed as a balance
balance sheet
sheet account.
account $
@
'EL statement
Indicates that the 6DL account is mana!ed as a ' E L
account
account.
Account currency
9nter the currency in which the account is to be mana!ed i.e. !enerally the company code currency.
;
Indicator 3nly
Allows you to maintain balances only in local currency
)ana!e alances in Local Currency B
9xchan!e /ate
The system uses this key to find the accounts for !ains and
(ifference 4ey
losses for the valuation of forei!n currency balances
Tax Cate!ory
(etermines whether the account is tax0relevant.
5# 'ostin! without tax Indicates that the account can still be posted to even if a tax allowed 55 /econ Account Type
code has not been entered An entry in this field characteri
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Financial Accounting Business Blueprint Ver 2.0-
5" Indicator 3pen item Settin! this indicator on allows display of the open and mana!ement
cleared items and amounts in an account.
5> Indicator Line Items Indicates that line item display is possible in this account. (isplay
(o not set this indicator for accounts in which the number of postin!s is so !reat that line item display online would not be advanta!eous.
5? Sort 4ey
Specifies a basis on which line item reports of that particular 6L account would be sorted.
5$ -ield status !roup
(etermines the screen layout for document entry. -ields can have the followin! statuses. %5& 3ptional entry 0 you can enter data in the field. %"& )andatory entry 0 you must enter data in the field. %>& Suppressed 0 the field does not appear on the screen.
5@ Indicator 'osted automatically only
This indicator means that the account can be only posted by way of automatic system postin!s. +o manual entry would be possible.
Customer aster The Customer )aster records and mana!es accountin! data of all customers. The A/ component contains master records that control how business transactions are recorded and posted to the account. The master record is used not only in Accountin! but also in Sales and (istribution. Follo/ing (ompan* code details are maintained !* Finance
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Financial Accounting Business Blueprint Ver 2.0o
/econciliation Account for the Customer = This /econciliation Account is the 6eneral led!er for the Accounts /eceivable sub0 led!er.
o
'ayment Terms = Terms of 'ayment
o
7endor Code = If the Customer is also a 7endor
!endor aster The A' component contains 7endor master records that control how business transactions are recorded and posted to the account. The master record is used not only in Accountin! but also in )aterials )ana!ement. Follo/ing (ompan* code details are maintained !* Finance o
6eneral (etails = +ame, Address etc.
o
/econciliation Account for the 7endor = This /econciliation Account is the 6eneral led!er for the Accounts 'ayable sub0led!er
o
Check (ouble Invoice = checkbox whether double Invoice check is to enabled
o
ithholdin! Tax (etails = T(S details for the 7endor are maintained here
o
'ayment Terms = Terms of 'ayment
o
Fouse ank = If the 7endor is always paid throu!h the same ank, then this field needs to be maintained.
o
Customer Code = If the 7endor is also a Customer
o
'ayment )ethods = The mode of payment throu!h which the 7endor will be paid.
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Financial Accounting Business Blueprint Ver 2.0-
The Asset Accountin! module contains master records that control how business transactions are recorded and posted to the account. The Asset master record also contains all the data you re2uire to mana!e all your -ixed Assets.
Follo/ing details are maintained in the Asset aster 9eneral etails o
Asset Class = The Asset )aster is created within an Asset Class. The screen layout, depreciation terms, Account (etermination are defaulted from the Asset Class
o
o
Asset (escription = The description of the Asset 'hysical Inventory +umber = This is the Asset Inventory number. The inventory number is output in the standard inventory list
o
uantity
o
Include in Inventory List 0 This indicator ensures that the asset is included in the standard inventory list of Asset Accountin!. Assets without this indicator are not output by the report
3ime ependent etails Cost Center = The Cost Center to which the Asset belon!s. The SA' system uses the cost center assi!nment in the asset master record to determine the cost center affected when the followin! types of asset postin! are made o
-ixed asset depreciation
o
6ainDloss from asset sales
'lant = :ou can use the plant assi!nment in the asset master record to perform plant0specific analyses in Assets Accountin!
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Financial Accounting Business Blueprint Ver 2.0-
Shift -actor = If the Asset is operated in multiple shifts, the depreciation is calculated at an accelerated rate. This rate is calculated from the Shift -actor.
epreciation 3erms The (epreciation terms are maintained here. This include o
(epreciation Area = The different types of (epreciation 7aluations are maintained here
o
(epreciation 4ey = The depreciation key determines the method of calculation of depreciation and the rate of depreciation.
The depreciation terms are defaulted from the Asset Class of the Asset when creatin! the Asset master record. -ollowin! Asset Classes will be created with the respective depreciation rate and number ran!e Asset
(escription
Class LA+(5
-reehold Land
(epr /ate0
(epr /ate0
Asset +umber
ook %J&
IT %J&
/an!e
#.##
#.##
5###### = 5
LA+("
Leasehold Land
#.##
#.##
"###### = "
-ACT5
-actory uildin!
>.>?
5#.##
>###### = >
3'/#5
3ffice 'remises
5.@>
5#.##
?###### = ?
')##5
'lant E )achinery
?.;$
5$.##
$###### = $
')##"
'lant E )achinery =
?.;$
5$.##
(on)idential $ncontrolled /hen printed
@###### = 1' o) 1
Financial Accounting Business Blueprint Ver 2.0-
Leased C3)'5
@
Computer E
5@."5
@#.##
'eripherals C3)'"
;
Computer E
5@."5
@#.##
'eripherals = Leased C3)'>
Computer E
5##.##
3ffice 92uipment
B###### = B
5##.##
'eripherals0Low 7alue 39#5
;###### =
###### =
@.>>
5$.##
5######5 = 5#
39#"
3ffice 92uipment =
@.>>
5$.##
Leased 39#>
55
3ffice 92uipment 0 Low
5##.##
5##.##
7alue -1/+5
55###### =
5"###### = 5"
-urniture E -ittin!s
@.>>
5#.##
5>###### = 5>
-1/+"
-urniture E -ittin!s 0
5##.##
5##.##
Low 7alue 79FI5
5?###### = 5?
7ehicle
.$#
5$.##
5$###### = 5$
79FI"
7ehicle = Leased
.$#
5$.##
5@###### = 5@
T33L5
Tools E 92uipment
?.;$
5$.##
5;###### = 5;
T33L"
Tools E 92uipments 0
5##.##
5##.##
Low 7alue CI'5
5B###### = 5B
Capital ork in
#.##
#.##
'rocess
5###### = 5
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Financial Accounting Business Blueprint Ver 2.0-
These number ran!es can be company code specific or across company codes. -or Alok the number ran!es will be company code specific.
"an# aster The ank )aster contains all the data relevant to the ank Accounts re2uired to carry out the bankin! transactions. The )aster (ata relevant is the Fouse anks and the Account Ids. Follo/ing details are maintained in the Bank aster o
o
Fouse ank = All bank data is determined usin! this key Account Id = This I( to!ether with the I( for the house bank uni2uely defines a bank account
o
(escription = (escription
o
ank Account +umber = This field contains the number under which the account is mana!ed at the bank
2.'
o
Currency = Currency in which the ank Account is maintained
o
Country = The country in which the ank is located
o
6L Account = The 6L Account of the ank
9aps Internal numberin! for 6L )aster records is not possible in SA'.
2.7
>orkaround +olutions +one
2.
Integration %e?uirements
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2.<
%eporting %e?uirements o
-S## = 9dit 6L )aster Centrally
o
-S'# = 9dit 6L )aster in Chart of Accounts
o
-SS# = 9dit 6L )aster in Company Code
o
-(#5D-(#"D-(#> = CreateDChan!eD(isplay Customer )aster
o
-4#5D-4#"D-4#> = CreateDChan!eD(isplay 7endor )aster
o
AS#5DAS#"DAS#> = CreateDChan!eD(isplay Asset )aster
o
A#5+ = (isplay Asset 7alues
o
2.10
-I5" = Fouse anks
Authorisation %e?uirements )aintenance of )aster (ata is recommended to be done centrally by the person responsible for maintainin! )aster data. The authori
2.11
igration %e?uirements Cutover data for )aster records will have to be captured as a part of data mi!ration. The formats for the same will be finali
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8
9eneral Ledger
8.1
=pectation The 6eneral Led!er forms the backbone of all the financial systems. It will provide a comprehensive picture of the transactions and accounts. It would capture all business transactions throu!h seamless inte!ration with other operational areas of the company to ensure that accountin! data is always complete and accurate.
8.2
escription The processes in 6eneral Led!er are o
6eneration of accountin! documents either automatically or manually
o
6eneration of periodic reports at various hierarchical levels.
o
Capture of all transactions in 6L
o
'ostin! of sub led!ers to 6L
o
/econciliation and finali
o
Cash Transactions
o
'ayroll 9ntries
o
Loan Transactions and (eposits
o
Investment transactions
o
-orei!n Currency 7aluation
o
7AT
o
Sales Tax
o
Inventory 7aluation
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8.8
+pecial (onsiderations +one
8.:
(hanges to =isting Processes o
A number of accountin! transactions will be carried out by way of automatic account assi!nments. -or example, inventory account is updated and a provision created in 6L at the time of raisin! a 6/ in )aterials )ana!ement.
o
All transactions, which update financial information, are directly carried out when the base transaction is carried out in the other modules. This will also prevent any manual postin! to such an account.
o
Cash 8ournal will be used for postin! cash transactions. There will be no need of maintainin! petty cash and main cash book separately and there will be one cash *ournal for each location where a separate cash balance is maintained.
o
In the current system there is a facility of chan!in! the fields in the document after it is posted e.!. account, amount. In SA' once a document is posted, it cannot be chan!ed with respect to the Account, amount, only the text and assi!nment fields can be chan!ed. If it is discovered later that the postin! was incorrect the document has to be reversed and then reposted.
o
In the le!acy system, there is no functionality for parkin! and then postin! a document. In SA' the documents will be parked first and then posted.
o
'ostin!s in previous periods in -I can be done to the extent the postin! periods are open. Fowever in )), S( postin!s can only be done for maximum two months that are open.
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8.;
+olution in +AP 9eneral Ledger Postings@ Any *ournal entry can be posted in SA' throu!h transaction code -0#" or -$#. The debit and credit postin!s to the 6L Accounts can be made usin! the postin! keys ?# and $# respectively. -or transactions involvin! other types of Accounts, relevant postin! keys to be used. The system carries out consistency checks before savin! the data. hen the debits e2ual the credits and the data is complete, document !ets posted. If errors exist, the data is not saved, and the system proposes ad*ustments. )anual postin!s cannot be done for 6L Accounts, which are reconciliation accounts, or which are marked for postin! automatically only. In Alok, the documents will be parked first and then posted into the 6eneral Led!er. Fence, the 6DL postin! transaction will encompass i- Parking the ocument@ (ocument parkin! enables user to enter and save %park& incomplete -I documents in the SA' system without executin! extensive entry checks. 'arked accountin! documents may be completedD checked and then posted at a later date by the supervisor ii- Posting Parked ocument 'arked documents can be posted either individually or via a list. To post several parked documents via a list, the system issues a list of parked document for 1ser to choose from. -rom this list, 1ser can then carry out any necessary post0processin! to parked documents that could not be posted due to missin! information such as a cost accountin! assi!nment. -or Alok, all entries to be posted are to be authenticated by the internal auditorK hence workflows will be created so that the internal auditor has the ri!hts to post the document. Throu!h the workflow mails can be send to the person in whose worklist the activity is pendin! throu!h SA' mail. (on)idential $ncontrolled /hen printed
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Pa*roll ntries Salary 'ayment is done either throu!h direct bank transfer to the 9mployeeHs bank account or in some cases che2ues are !iven. Till the Fuman /esources module !ets implemented payroll entries will be passed throu!h a 87. In the le!acy system development is re2uired to be done to assi!n a cost center to employee master. Information will be provided from the le!acy system for the cost center wise amounts of salary expense. 3ne consolidated 87 will be passed with separate line items per cost center. Later on it will be done throu!h the F/ )odule and Accountin! entries will be passed to 6eneral Led!er throu!h automatic postin!s. Any Salary advance or loan taken by an employee is ad*usted a!ainst the salary. 8ournal 9ntries A& -or bookin! the Salary expense (r. Salaries ADc (r. a!es ADc (r. 3vertimeD3ther Incentives ADc Cr. Statutory (eduction ADc Cr. Salaries 'ayable ADc Cr. Staff AdvanceD Loan ADc
& -or payment (r. Salaries 'ayable ADc Cr. ank ADc.
C& -or depositin! the statutory deductions.
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(r. Statutory (eductions ADc Cr. ank ADc
Loan 3ransactions and eposits Alok accepts loans from various banks and institutions and deposits from public. -or these types of transactions, sub0led!er will be created. The anks, Institutions and the lenders from whom deposits are accepted will be created as 7endors. Calculation of Interest on Loan is done manually. In SA' 7endors will be created for these so interest calculation will be automated by usin! the Interest Calculation functionality and by assi!nin! the interest calculation indicator to the 7endor master. -low of 8ournal 9ntries in SA' A& At the time of takin! the Loan (r. ank ADc Cr. 7endor %Loan& ADc
& -or Interest on Loan (r. Interest on Loan ADc Cr. 7endor %Loan& ADc
C& -or 'ayment of Interest (r. 7endor %Loan& ADc Cr. ank ADc
In4estment 3ransactions
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Investment transactions include the transactions pertainin! to the purchase and sale of e2uities, etc. Alok re2uires the entries to be passed throu!h the rokerHs ADc throu!h which the investments are purchased or sold. The roker will be created as a 7endor and also a Customer and both Accounts will be linked. 'urchase of investments will be posted throu!h the brokerHs 7endor ADc and the sale will be posted throu!h the brokerHs Customer ADc The entries will be A& -or 'urchase of Investments (r. Investment ADc Cr. %broker& 7endor ADc.
& -or Sale of Investments 3n sale of Investments, there will be a !ain or loss involved. The !ain or loss on sale of investment will be calculated manually. (r. %broker& Customer ADc (r.DCr. 6ainDLoss on Sale of Investment ADc Cr. Investment ADc
C& -or Interest or (ividend /eceived (r. ank ADc Cr. Interest Income ADc Cr. (ividend Income ADc
(ash 3ransactions@
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Cash transactions are handled throu!h Cash 8ournal in SA'. Cash 8ournal is a feature in SA', which permits separate trackin! of cash transactions in a sin!le0screen. This means that user can enter, display, and chan!e cash *ournal documents on one screen. 9ach cash *ournal should be assi!ned to one 6DL account, which represents the cash *ournal in the !eneral led!er. It is however possible, to connect multiple cash *ournals with one 6DL account. Cash transactions are saved separately in the cash *ournal and are transferred periodically %for example, daily& to the !eneral led!er. usiness transactions will be created for different types of cash transactions. The Cash 8ournal also permits !eneration of daily balance statements for tallyin! physical cash with the books of account. -or Alok, a separate cash *ournal and 6L account would be maintained for each location handlin! cash. Staff Advances other than salary advance will be handled throu!h the 6L Account for Staff advance. hen the details of the expenditure andDor cash are received from the employee, the expense will be posted to the respective expense ADc and the staff advance will have to be cleared manually. 3ther functions available in Cash *ournal are o
9nterin!, savin! and postin! business transactions
o
(isplayin! follow on documents
o
'rintin! Cash *ournal
o
'rintin! receipts
o
(eletin! saved %but not posted& entries
o
(isplayin! deleted entries.
Foreign (urrenc* Valuation
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At the year0end closin! all the 6L balances, Customer and 7endor open items in forei!n currency will be revalued at the closin! rate as maintained in the exchan!e rate table. The difference is posted to the related valuated Account and an offsettin! entry is posted to 9xchan!e /ate differences ADc. The balance of the forei!n currency balance sheet account, that is, the balance of the 6DL account mana!ed in a forei!n currency, forms the basis of the valuation for 6L Accounts. -or Customer and 7endor Accounts the individual open items of an account in forei!n currency form the basis of the valuation, that is, every open item of an account in forei!n currency is valuated individually.
VA3 7AT is payable on Sales and a set0off is available on 7AT paid on purchases. The difference between the two is the amount of 7AT payable. -or some cases, set0off is not available, for these kind or purchases the 7AT amount will not be posted separately and will be added to the Inventory value. At the period end when 7AT is paid to the !overnment, the balance in 7AT on purchases ADc is transferred to 7AT on Sales ADc throu!h a 87. The balance in 7AT on Sales ADc is the amount payable. -low of *ournal entries in SA' A& -or 7AT on purchases at the time of Invoice 7erification (r. 6/DI/ ADc. (r. 7AT on 'urchases ADc Cr. 7endor ADc
& At the time of Sales, a liability is created for 7AT on Sales (r. Customer ADc
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Financial Accounting Business Blueprint Ver 2.0-
Cr. Sales /evenue ADc Cr. 7AT 'ayable ADc.
C& At period end for payment of 7AT %i& (r. 7AT 'ayable ADc Cr. 7AT on 'urchases ADc
%iii& -or payment of 7AT (r .7AT 'ayable ADc Cr. ank ADc
%iv& In case there is a refund of 7AT (r. ank ADc Cr. 7AT 'ayable ADc
+ales 3a= In States where 7AT is not applicable Sales Tax is levied on Sales and a set0off is available on the tax paid on purchases. The difference between the two is the Sales Tax payable to the !overnment. -or some cases, set0 off is not available, for these kind or purchases the tax amount will not be posted separately and will be added to the Inventory value. -low of *ournal entries in SA' A& -or tax paid on purchases at the time of Invoice 7erification (r. 6/DI/ ADc. (r. Sales Tax on 'urchases ADc (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
Cr. 7endor ADc
& At the time of Sales, a liability is created for Tax on Sales (r. Customer ADc Cr. Sales /evenue ADc Cr. Sales Tax 'ayable ADc. C& At period end set0off will be calculated manually and a 87 will be passed. The balance in the Sales Tax payable ADc is the amount to be paid. %i& -or postin! 87 for set0off (r. Sales Tax 'ayable Cr. Sales Tax on 'urchases
%ii& -or payment of Sales Tax (r. Sales Tax 'ayable ADc Cr. ank ADc
%iv& In case there is a refund of Sales Tax (r. ank ADc Cr. Sales Tax payable ADc The tax codes have not yet been finalised and will be finalised in the realisation phase.
In4entor* Valuation@ Currently inventory valuation is done as a month end activity on a -I-3 basis. In SA' inventory valuation will be real time. All procured materials (on)idential $ncontrolled /hen printed
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will be valued at )ovin! avera!e price and semi finished and finished !oods will be valued at Standard price. ith the inte!ration of -I and )) throu!h account assi!nments, all transactions involvin! i nventory movements will automatically update inventory value and no manual workin!s will be re2uired. In SA' in every material master in the accountin! view for every 'lant we enter a 7aluation Class. To this valuation class for every scenario of material movement we assi!n 6DL accounts. henever any transaction relatin! to material takes place, based on the valuation class and movement type, an accountin! entry is created. henever the standard price of material is revised, the stock for that plant !ets revaluated and an -I entry is passed automatically.
ocument 3*pes@ A key that is used to classify accountin! documents and distin!uish between business transactions to be posted. The document type is entered in the document header and applies to the whole document. -unctions of (ocument Type are o
(ifferentiatin! between business transactions.
o
(etermines which account types that particular document can be posted to.
o
Assi!nin! document numbers.
ocument Num!er %anges A number ran!e must be assi!ned to each document type in SA'. 7ia the document types, you distin!uish the postin!s accordin! to the different business transactions, for example customer payment, vendor credit memo, and so on. To store documents separately accordin! to document types, you must assi!n a separate number ran!e to each document type,
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for example to invoices or to credit memos. (ocument number ran!es can be defined as -iscal :ear (ependent or across -iscal :ears.
Posting e*s 'ostin! keys control the entry of line items in accountin! documents. A postin! key is entered for each line item. They are defined at the client level and therefore apply to all company codes. They determine o
Account type of the line item
o
(ebit D credit postin!
o
Layout of entry screens
'ostin! keys are differentiated by customer, vendor and 6L accounts. There are also postin! keys for asset and material accounts.
+pecial 9L Indicators Special 6DL transactions are special transactions in accounts receivable and accounts payable that are displayed separately in the !eneral led!er and the sub led!er. This may be necessary for reportin! or for internal reasons. -or example, down payments must not be balanced with receivables and payables for !oods and services. Conse2uently, they are treated as special 6DL transactions in the 6eneral Led!er %-I06L& Accounts 'ayable %-I0A'& and Accounts /eceivable %-I0A/& application components. These can be distin!uished into the followin! cate!ories 3ffsettin! entries = entries impactin! the financial statements. -or example, down payments. Statistical postin!s = postin!s with a preset offsettin! entry or a noted item. -or example, bank !uarantees.
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8.'
9aps o
Calculation of various ratios at the year0end will not be possible in SA'. 7alues can be extracted from SA' for calculation of these ratios.
o
Similarly annexures re2uired for Audit reports will not provided throu!h SA', however the data re2uired for preparin! these annexures and statements can be extracted from SA' usin! the reports in SA'.
o
Calculation of profitDloss on sale or revaluation of investments will have to be calculated manually outside SA'. There will be no sub led!er for investments.
These functionalities are available in the advanced modules like S9), C-).
8.7
>orkaround +olutions +one.
8.
Integration %e?uirements Chart of Accounts: The operatin! chart of accounts is shared by -inancial Accountin! as well as Controllin!. The accounts in a chart of accounts can be both expense or revenue accounts in -inancial Accountin! and cost or r evenue elements in costDrevenue accountin!. General Ledger Account : Automatic account determination D postin! is one of the most powerful methods to determine the correct 6DL account to post to by considerin! the type of transactions and other factors. This feature provides a lot of flexibility and eliminates the need to hard code the 6DL account in the source code. (on)idential $ncontrolled /hen printed
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$% & C' %ntegration: All 6L0'EL accounts are maintained as cost elements in Controllin!. -urther these cost elements are linked to cost centers and 'rofit Centers. The creation of cost elements and revenue elements ensures that all transactions posted to those 6L Accounts in -I also have a correspondin! entry in C3. -or alance sheet Accounts a default 'rofit Center will be attached to the 6L Account so that all transactions flow to 'rofit Center and this allows to create a trial balance at a 'rofit Center level.
& $% %ntegration: )) and -I are inte!rated by way of automatic account assi!nments to 6L accounts for material movements types, which have an impact on financial information. 7aluation classes are entered in the material master for the purpose of providin! automatic account postin!. -or all movement types, internal transaction key is assi!ned and 6L Accounts are assi!ned a!ainst the valuation class for the transaction key.
(D & $% %ntegration:
S( account assi!nments depend on the condition tables E access se2uences to determine the correct 6DL account. 3ne can set up condition tables D types to use different characteristics such as o
Customer class
o
'lant
o
)aterial !roup
Throu!h pricin! procedure, the values of condition types are posted to the respective 6L accounts. Therefore inte!ration between S( and -I happens
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by assi!nin! the account keys in the pricin! procedure for account determination like for 9/L for sales revenue, 9/S for sales deductions.
8.<
8.10
%eporting %e?uirements o
-#> = (isplay Accountin! (ocument
o
-S5#+ = (isplay 6L Account alances
o
-L>+ = (isplay 6L Line Items
o
-C8 = Cash 8ournal
Authorisation %e?uirements The authori
8.11
igration %e?uirements Cutover data for 6L master recordsK balances E open line items will have to be captured as part of data mi!ration. The formats for the same will be finali
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:
Accounts %ecei4a!le
:.1
=pectation Accounts receivable would record and mana!e the accountin! data relatin! to all customers. It would also be closely inte!rated with the Sales and (istribution module. Any transaction in sales, which has a financial implication, would have to automatically be reflected in accounts receivables as well as the !eneral led!er. Also, different 6L accounts should be affected based on the nature of the transaction, for example, advance receipts, bank !uarantees, security deposits and bills of exchan!e. Alok would look at trackin! and monitorin! open items, analysis of outstandin!, and balance confirmation letters. It would also r e2uire bein! able to settle receipts a!ainst appropriate outstandin!.
:.2
escription The processes in this component are o
6eneration of accountin! document for receivables based on an invoice, or debit memo or credit memo.
o
/eceipts of advances D deposits D bank !uarantees.
o
)onitorin! of outstandin! in customer accounts.
o
Accountin! of the receipt a!ainst the appropriate outstandin!.
o
9xports %includin! deemed exports&
o
/eceipts of export incentives
o
3ther income, for example, interest on deposits
o
Customer D 7endor cross clearin! transactions
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:.8
+pecial (onsiderations +one
:.:
(hanges in =isting Processes Advance payments from Customers will be treated differently as down payments usin! special 6L indicator.
:.;
+olution in +AP The Accounts %ecei4a!le application component records and mana!es accountin! data of all customers. 'rocess -low in SA' -or Accounts /eceivables throu!h Sales %-6& o
Sales order will be created in SA' based on the customer purchase order.
o
(elivery will be done in SA' by pickin! the material and doin! a post !oods issue. An -I entry is automatically !enerated which debits the finished !oods chan!e account and credits the finished !oods inventory account.
o
6eneration of an invoice based on the sales order and delivery challan. This process also results in an -I document, which debits the customer and credits revenue account.
o
hen the che2ue is received from the customer, the same is entered into the system alon! with clearin! of outstandin! invoice. A deposit slip format will be defined for the same. The bank clearin! account will also be posted and the customer outstandin! cleared. Any interest on overdue received from the customer is also accounted for here.
o
1pload the bank statement. This clears all the open items in the bank clearin! account and debits the main bank account.
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Flo/ o) #ournal entries in +AP A& At the time of (elivery challan (r. Cost of 6oods Sold aDc Cr. -6 Inventory aDc
& At the time of Invoice !eneration (r. Customer aDc %A/& Cr. /evenueDSales aDc Cr. Sales Tax 'ayable aDc
C& If advance settlement is carried out (r. Customer = Advance aDc Cr. Customer aDc
(& At the time of 'ay0in0Slip (r. ank Sub aDc Cr. Customer aDc
9& At the time of ank Statement 1pload (r. ank aDc Cr. ank sub aDc.
(ustomer Vendor (ross clearing transactions
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If you select a customer who is also a vendor when processin! a clearin! transaction, such as an incomin!Dout!oin! payment or account maintenance, the system also selects the open vendor items automatically, provided that o
The vendor number was entered in the customer master record and
o
The Clearin! with vendor indicator has been set.
The same rule applies if you select a vendor that is also a customer durin! a clearin! transaction.
Process Flo/ in +AP For (ustomer Ad4ances Advances or (own 'ayments received from Customers will be posted usin! a Special 6L indicator. This Special 6L indicator posts the transactions to Customer Advances 6L ADc rather than the Customers ADc.
9ntry in SA' A& 3n receipt of (own 'ayment (r. Customer Advances ADc Cr. ank Clearin! ADc
& -or clearin! (own 'ayment (r. Customer ADc Cr. Customer Advances ADc
Process )lo/ in +AP )or =ports o
Sales order will be created in SA' based on the customer purchase order. (on)idential $ncontrolled /hen printed
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(elivery will be done in SA' by pickin! the material and doin! a post !oods issue. An -I entry is automatically !enerated which debits the finished !oods chan!e account and credits the finished !oods inventory account.
o
6eneration of an invoice based on the sales order and delivery challan. This process also results in an -I document, which debits the customer and credits revenue account.
o
hen the bill of exchan!e is received from the customer, the same is entered into the system. This clears the outstandin! and creates a special 6L line item under the customer account for bill s receivable. Any exchan!e rate differences between the time of invoicin! and the time of receipt of bill of exchan!e will be accounted for. 9xchan!e rates would be accounted for, based on rates maintained in the currency master table.
o
hen the bill is discounted, the item is cleared from the customer account alto!ether and discount char!es of the bank !ets accounted in the relevant bank sub account. Any exchan!e rate differences would also be accounted here.
o
1pload the bank statement. This clears all the open items in the bank clearin! account and debits the main bank account.
-low of 8ournal entries in SA' A& At the time of (elivery challan (r. Cost of 6oods Sold aDc Cr. -6 Inventory aDc
& At the time of Invoice !eneration
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(r. Customer aDc %A/& Cr. /evenueDSales aDc
At the time of receipt of bill of exchan!e %throu!h Special 6L indicator& (r. Customer %D9& aDc Cr. Customer aDc
(& At the time of bill discountin! (r. ank sub aDc (r. 'ackin! Credit loan ADc (r. Interest on 'ost shipment ADc (r. ill discountin! char!es (r.DCr. LossD6ain on -orei!n 9xchan!e /ate fluctuation Cr. Customer %D9& aDc
-or short reali
Process Flo/ in +AP )or +ales %eturns In cases where the customer returns !oods, the same will be handled in the SA' as follows o
hen the !oods are returned by the customer the same are checked for its condition as to whether they are re0saleable or not. If
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Financial Accounting Business Blueprint Ver 2.0-
yes, a return Sales order is prepared, return delivery is taken and material 2uantity is the -I records are updated. o
A credit note is raised in the name of customer for the value of sales 2uantity returned E simultaneously reversin! the Sales revenue aDc.
o
here the material is partly dama!ed E can be processed a!ain, it is taken back into -6 stocks as a separate return type. This material can further be issued to process order, packin! order or any other re0work *ob necessary to make the !oods re0saleable.
-low of 8ournal entries in SA' A& At the time of 6/ for re0saleable material (r. -6 inventory aDc Cr. Cost of 6oods Sold aDc
& At the time of raisin! the Credit note. (r. /evenue D 9xpense aDc (r. Sales Tax 'ayable %if less than @ months& Cr. Customer aDc
C& -or scrap of material (r. Loss on scrapped material aDc Cr. -6 Inventory aDc
(& 1pon issue of returned material to process D packin! order %throu!h return type material issue& (r. )aterial consumption aDc (on)idential $ncontrolled /hen printed
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Cr. )aterial Inventory aDc
Process Flo/ #ournal entries in +AP )or (redit Notes other than sales returns-@ This could arise in the case of price difference, tax difference A& The respective department raises the document for issuin! a credit note after appropriate checks E authori
& At the time of payment In case where it is ad*usted a!ainst receivables it will be cleared throu!h automatic or manual clearin! process.
In case where payment is made (r. Customer aDc Cr. ank aDc
Process Flo/ )or =port Incenti4e @ o
(9' is received as a percenta!e of -3 price as an export incentive for sales of specified products.
o
At the time of actual receipt of (9', the account is ad*usted for the actual amount received.
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Financial Accounting Business Blueprint Ver 2.0o
here the (9' is sold, the loss or !ain upon such a sale is either debited or credited to Income ad*ustment aDc.
-low of 8ournal entries in SA' A& At At the time of makin! application for the (9' (r. (9' /eceivable ADc Cr. (9' ADc
& 3n Approval of part of the Application, reversal to the extent not approved (r. (9' ADc Cr. (9' /eceivable ADc
C& -or Sale of the (9' (r. CustomerD ank ADc (r.DCr. LossD6ain on Sale of (9' Cr. (9' /eceivable ADc
:.'
9aps 'ost0dated che2ues received from the customers will have to be tracked manual manually ly outsid outside e SA'. SA'. These These will will be accoun accounted ted only only when when they they are actually deposited in the ank at the due date.
:.7
>orkaround +olutions +one
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Financial Accounting Business Blueprint Ver 2.0-
:.
Integration %e?uirements The Accounts Accounts /eceivable module is closely inte!rated with the Sales and (istribution module of SA' as well as the ankin! sub0module in -inance. Since the individual applications %!eneral led!er and sub led!ers& all exchan!e data, individual business transactions only have to be entered once. The Accounts Accounts /eceivable component is not merely a basis for correct accountin! procedures. (ue to the close inte!ration with Sales and (istribution, it provides data for effective credit mana!ement. Accountin! data is posted posted for customers in Accounts Accounts /eceivable. /eceivable. -rom there, the data is sorted by customer and made available to other components, for example Sales and (istribution. hen you post data in Accounts /eceivable, /eceivable, the system creates a document document and passes the the data entered to the !eneral led!er. 6eneral led!er accounts are then updated accordin! to the transaction concerned %receivable, down payment, bill of exchan!e, and so on&.
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:.10 :. 10
%eporting %e %e?uirements o
-(5#+ = (isplay Customer alances
o
-L$+ = (isplay Customer Line Items
o
SAL/B;#5"5@B SAL/B;#5"5@B 0 (ue (ate Analysis for 3pen Items
o
SAL/B;#5"5;$ SAL/B;#5"5;$ 0 3pen Items 0 Customer (ue (ate -orecast
Aut utho hori risa sati tion on %e %e?u ?uir irem emen ents ts The authori
:.1 :. 11
igr i grat atio ion n %e? %e?ui uire rem men ents ts Cutover data for customer masters, balances E open line items will have to be captured as part of data mi!ration. The formats for the same will be (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
finali
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
;
Accounts Pa*a!le
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=pectation Accounts payable payable will have to record and mana!e mana!e the accountin! data relatin! to all vendors. It will also need to be closely inte!rated with the procurement and inventory mana!ement system. Any transaction in procurement, which has a financial implication, would have to automatically be reflected in accounts payable payable as well as the !eneral !eneral led!er. Also, different 6L accounts should be affected based on the nature of the transaction, for example, advance payments, bank !uarantees and security deposits !iven.
Alok would look at trackin! and and monitorin! open items, analysis analysis of vendor outstandin! and !eneration of balance confirmation letters. It would also re2uire settlin! payments a!ainst appropriate outstandin! and settlin! advances a!ainst appropriate invoices.
;.2
escription The processes for Accounts 'ayable are o
'ayments for purchases done for material, e2uipments and other items a!ainst purchase order and 6/+ for local and import procurement.
o
'ayments for services
o
'ayments for excise and D or other statutory re2uirements.
o
'ayments made in advance to suppliers and trackin! the same throu!h a separate control account.
o
'ayments made after I7 but before due date and availin! cash discounts. (on)idential $ncontrolled /hen printed
:' o) 1
Financial Accounting Business Blueprint Ver 2.0-
;.8
o
7endor = Customer cross ad*ustments.
o
'artial payments, with or without discounts
o
Che2ue printin!
+pecial (onsiderations +one
;.:
(hanges to =isting Processes Advance 'ayment to 7endors will be treated as down payments made usin! a special 6L indicator.
;.;
+olution in +AP The accounts payable application component records and mana!es accountin! data of all vendors. -ramework of the Accounts 'ayable 'rocess is as follows o
'rocess of A' will start from invoice verification D advance payment.
o
'ayment of advance to the vendor.
o
Invoice verification will be done a!ainst the 6/+ and '3 number by finance.
o
T(S is deducted if applicable
o
3nce the invoice is verified it will be available for payment in finance.
o
If any advance is out standin! a!ainst the vendor system will prompt while doin! the verification.
o
Ad*ustin! of advances paid a!ainst open invoices.
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0o
'ayments can be made by che2ue, ill of 9xchan!e or by ad*ustin! credit notes issued to supplier.
o
'art payments can be made if re2uired.
o
3nce the payment is processed the bank account will !et credited and vendor account will !et debited.
o
T(S is calculated and deducted if applicable and if not deducted already while Invoice 7erification.
3he processes in Accounts Pa*a!le are o
Component wise display of '3 terms durin! I7. -or example, asic rate, 9(, Sales Tax, -rei!ht etc.
o
(own payments to vendors and clearin! of the same.
o
6eneration of accountin! document for payables based on vendor invoice.
o
(ebit notes D /ecoveries for online re*ections.
o
Schedulin! payables to vendors based on payment terms and funds position.
o
'ayment of money to the vendor %with reasons for deductions, if the invoice amount and payment amount do not match&.
o
Accountin! of the payment a!ainst the appropriate outstandin!.
-low of 8ournal entries in SA' A& At the time of 6/ D Service entry sheet update inventory. (r. Inventory %with restricted inventory type& aDc (r. 9xpenses ADc %for expense related purchases& Cr. 6/DI/ aDc (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
& At the time of C check if the material is found as per the ordered 2uality there will be a system entry, which will reverse /estricted Inventory type to 1n0/estricted Inventory type.
C& Invoice 7erification is done by -inance dept after receipt of Invoice from 7endor. Invoice is entered with reference to the '3 and 6/+. Liability to the 7endor is created at this point of time. At the time of Invoice verification the system will prompt the user if any advance payment exists. In case of Service related '3, T(S is also deducted if the 7endor is liable to T(S. Invoice verification will pass the followin! entry (r. 6/DI/ aDc Cr. 7endor %A'& ADc Cr. T(S 'ayable ADc
At the time of makin! payment there are " options a& Automatic payment run = This clears all the open items a!ainst the I.7 E will list down all the cleared items after which automatic che2ue printin! will be done by the system. -inally, the -I postin!s will also be done by the system automatically. b& )anual payment run = Fere, the user will have to manually select the parties to whom payment has to be made. T(S will also be deducted if not already deducted at the time of Invoice 7erification. This transaction will be executed usin! SA' transaction code -0$> or -0$B. The transaction -0$> will be used when the user wants to post the payment transaction but does not want to print che2ue.
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
In SA' there is a feature to record the che2ue number for the payment document in case of manual check preparation. The user will attach the che2ue number to the payment document throu!h -CF$. The transaction -0$B will be used when the user wants to post the payment transaction and also prints checks for the vendor.
The entry passed will be (r. 7endor aDc Cr. ank Clearin! aDc Cr. T(S 'ayable
At the time of upload of the bank statement, the followin! entry will clear the bank sub account. 9ntry will be as follows (r. ank Clearin! aDc Cr. ank aDc
Process Flo/ )or Non 9%N !ased Purchases This process is related to passin! of invoices in finance module where material mana!ement department is not involved. Invoices that will be routed throu!h -I include AuditorHs remuneration, insurance payments, subscriptions, trainin! expenses etc. These invoices will be passed throu!h T0code -0?> or -@#. o
The respective departments will approve the document for expenses.
o
The -inance dept verifies the document E updates the payables aDc i.e. creates a liability.
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0o
The system prompts the user in case an advance exists for the service.
o
-inance processes the payment throu!h the normal bank payments after ad*ustin! the advance.
o
The che2ue printin! process would be manual D automatic based on re2uirements and specifications.
-low of 8ournal entries in SA' A& At the time of bookin! the expense (r. 9xpense aDc Cr. 7endor aDc Cr. T(S 'ayable aDc
& At the time of out!oin! payment (r. 7endor %main& aDc Cr. 7endor %advance& aDc Cr. ank %Clearin!& aDc
C& At the time of upload of the bank statement, the followin! entry will clear the bank sub account. 9ntry will be as follows (r. ank %Clearin!& aDc Cr. ank aDc
Process )lo/ in +AP )or Ad4ance pa*ments
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0o
The advance payment re2uest is approved by the respective department based on the '3 terms E conditions throu!h standard workflows.
o
The finance department verifies the payment approval.
o
The advance payment to vendor is processed as a normal payment with respective entries for T(S in -I.
9ntry in SA' (r. 7endor %(own 'ayment& ADc Cr. ank ADc. Cr. T(S 'ayable ADc.
Process Flo/ In +AP For Imports o
'3 is raised on the forei!n vendor after necessary approvals from the respective departments E heads.
o
+ext step involves payin! up any advance to the forei!n vendor, if the terms of the '3 so state. Alok would re2uest the bank to open a Letter of Credit in favour of the vendor.
o
3nce the LC is opened, the vendor dispatches the !oods to Alok. Simultaneously it sends the set of +on0+e!otiable documents vi<. ill of 9ntry, Shipment documents, etc.
o
At location, 6oods receipt is done. 3nce this is done, an entry is passed in -I to update Inventory E 6/DI/ aDc.
o
The next step is Invoice verification where various expenses are booked E vendor liability created. At this sta!e, the system will prompt in case an advance already exists. At this point exchan!e rate differences between time of 6/ %at ill of 9xchan!e date exchan!e rate& and time of I7 will !et inventorised in case the (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
material is still in inventory. In case the materials have already been consumed, the exchan!e rate difference would be char!ed off to price variance account. o
The bank will remit the amount to the vendor as per the '3.
o
3nce the bank pays the vendor, it debits the account of Alok alon! with its char!es E intimation is send for the same.
o
Alok acknowled!es this payment E makes appropriate entries in -I. 9xchan!e rate differences between date of I7 and date of payment is accounted for at this point.
-low of *ournal entries in SA' A& /elease Advance payment to vendor (r. 7endor %advance& aDc Cr. ank %Clearin!& aDc
& At the time of 6/ D Service entry sheet update 9xcise re!ister /6">A. (r. Inventory aDc Cr. 6/DI/ aDc
C& At the time of Invoice verification the system will prompt the user to notify if any advance payment exists. 9xchan!e rate differences are also accounted for here. (r. 6/DI/ aDc Cr. 7endor %A'& aDc
At the time of makin! payment there are " options -or payments made to vendor for the material (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
The bank directly remits the amount after the usance period E debits AlokHs aDc for basic invoice value E also bank char!es. 3n receipt of intimation, Alok makes appropriate entries in it books includin! impact of exchan!e rate fluctuations.
Automatic payment run = This clear all the open items in the 7endors Accounts E will list down all the cleared items after which automatic che2ue printin! will be done by the system. -inally, the -I postin!s will also be done by the system automatically. The functionin! of the Automatic 'ayment run is explained in the ank Accountin! chapter. )anual payment run = Fere, the user will have to manually select the parties to whom payment has to be made. Also the che2ue printin! E -I postin! will be done manually. The entry would be (r. 7endor ADc Cr. ank %Clearin!& ADc Cr. 7endor %advance& ADc At the time of upload of the bank statement, the followin! entry will clear the bank sub account. 9ntry will be as follows (r. ank %Clearin!& ADc Cr. ank ADc At the period end, entries will be passed as part of forei!n exchan!e items valuation for balances in forei!n exchan!e -or 'ayment throu!h ills of 9xchan!e, the 7endor Invoice is cleared and a Special 6L 3pen Item is created. -or raisin! a liability towards the ank, (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
the ank ills 'ayable is credited and the ank ills 'ayable clearin! ADc is debited as an offsettin! entry. (r. 7endor %A'& ADc Cr. 7endor %illsD9xch& ADc (r. ank ills 'ayable Clearin! ADc Cr. ank ills 'ayable
hen Alok pays off the ills 'ayable on the due date, the special 6L open item is cleared, the ank ADc is credited, the liability towards the ank is cleared and the ank ills 'ayable ADc is credited as an offsettin! entry (r. 7endor %illsD9xch& ADc (r. ank ills 'ayable Cr. ank ills 'ayable Clearin! ADc Cr. ank ADc
>ith holding 3a=es T(S to be deducted from the 7endors will be handled by ithholdin! taxes functionality in Country 7ersion India. The T(S certificates and challans can be printed throu!h CI+ module. ithholdin! Tax codes will be maintained for different rates of T(S. -ollowin! T(S rates are applicable and will be created as ithholdin! tax Codes and will be maintained in the 7endor )aster. 3+ +ection
5?F
%ec. 3*pe
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escription
ed %ate
3a= %ate
+urchar ge
du (ess
Commission or brok %indDhuf&M5#
$.@5
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#.55
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
5?F
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Commission or brok %indDhuf&N5#
$.5
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#.5
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Commission or brokera!e %c&
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Commission or brokera!e %o&
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-ees for prof.Dtech ser0 indDhufM5#
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-ees for prof.Dtech ser0 indDhufN 5#
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-ees for prof. 3r techn. Ser. %c&
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#.$
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-ees for prof. 3r techn. Ser. %o&
$.@5
$
#.$
#.55
+
Int. 3n securities %indDhuf& M 5#
55.""
5#
5
#.""
+
Int. 3n securities %indDhuf& N 5#
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Int. 3th. Than int. 3n security %c&
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Int. 3th. Than int. 3n security %o&
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Int.oth.than int. on sec0 indDhufM5#
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Int.oth.than int. on sec0 indDhufN5#
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Interest on securities 0 %c&
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3ther sums %5$&
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'ay. To contEsub0cont. %indDhuf&M5#
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(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
+
'ay. To contEsub0cont. %indDhuf&N5#
".#?
"
#
#.#?
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'ay. To cont. E sub0cont. Advt. %c&
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'ay. To cont. E sub0cont. Advt. %o&
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'ay. To contractor E sub0 cont. %c&
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'ay. To contractor E sub0 cont. %o&
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'ay. to contEsub0con adv0 indDhufM5#
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'ay. to contEsub0con adv0 indDhufN5#
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/ent %company&
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/ent %indDhuf& M 5#
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/ent %indDhuf& N 5#
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/ent %others&
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C = Company + = +on Company -low of 9ntries in SA' A& hen T(S is deducted durin! the Invoice 7erification (r. 6/DI/ ADc Cr. 7endor ADc Cr. T(S 'ayable ADc
& hen T(S is deducted durin! payment transaction. (on)idential $ncontrolled /hen printed
;7 o) 1
Financial Accounting Business Blueprint Ver 2.0-
(r. 7endor ADc Cr. ank Clearin! ADc Cr. T(S 'ayable ADc
C& -or payin! the T(S deducted. (r. T(S 'ayable ADc Cr. ank ADc
;.'
9aps +one
;.7
>orkaround +olutions +ot applicable
;.
Integration %e?uirements The accounts payable module is closely linked with the materials mana!ement module of sap as well as the bankin! sub0module in finance. Since the individual applications %!eneral led!er and sub led!ers& all exchan!e data, individual business transactions only have to be entered once. The accounts payable component is not merely a basis for correct accountin! procedures. (ue to the close inte!ration with material mana!ement, it provides data for effective payables mana!ement.
Accountin! data is posted for vendors in accounts payable. -rom there, the data is sorted by vendor and made available to other components, for example material mana!ement. hen you post data in accounts payable, the system creates a document and passes the data entered to the !eneral (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
led!er. 6eneral led!er accounts are then updated accordin! to the transaction concerned %payable, down payment, bill of exchan!e, and so on&.
;.<
;.10
%eporting %e?uirements o
-45#+ = (isplay 7endor alances
o
-l5+ = (isplay 7endor Line items
o
SAL/B;#5"#;B = (ue (ate Analysis for 3pen Items
o
SAL/B;#5"#B? 0 3pen Items 0 7endor (ue (ate -orecast
Authorisation %e?uirements The authori
;.11
igration %e?uirements Cutover data for vendor masters, balances E open line items %includin! special 6L items& will have to be captured as part of data mi!ration. The formats for the same will be finali
(on)idential $ncontrolled /hen printed
;< o) 1
Financial Accounting Business Blueprint Ver 2.0-
'
Asset Accounting
'.1
=pectation Asset Accountin! will have to record and mana!e the -ixed Assets and the accountin! data relatin! to all -ixed Assets. It will also need to be closely inte!rated with the procurement and 6eneral Led!er system. Any transaction pertainin! to Assets would have to automatically be reflected in the Asset 7alues as well as the !eneral led!er.
'.2
escription The scenarios for Asset Accountin! are o
o
/etirement with or without /evenue
o
(epreciation Calculation
o
'.8
Ac2uisition of an Asset.
Asset 1nder Construction
+pecial (onsiderations +one
'.:
(hanges to =isting Processes o
o
)aintenance at an Individual Asset Level rather than a 6roup level Asset will be identified for 'lant, Cost Center, which it belon!s to
o
Identification of the Asset at the 'urchase 3rder level
o
Capitali
o
(epreciation will be calculated and posted to Cost Center in SA'
o
Asset 1nder Construction will be used for 'ro*ects.
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
'.;
+olution in +AP The Asset Accountin! application component records and mana!es accountin! data of all -ixed Assets.
Process Flo/ )or Ac?uisition o) an Asset o
o
Approved re2uisition for the purchase of an Asset '3 is released. At this point there will be a reference of the Asset in the '3. Asset )aster will be created by -I and the Asset number will be provided.
o
The asset is received %via 6/& by the stores E excise records are updated
o
The Asset is capitali
o
-inance dept will do the invoice verification for the 6/.
o
At this sta!e the system will prompt in case an advance is already paid to the vendor. 7endor liability is created and the Invoice is available for payment
o
In the next step payment is processed for the -ixed Asset purchased while ad*ustin! the advance already received.
o
/espective bank aDc is updated E vendor liability cleared.
-low of 8ournal entries in SA' At the time of 6/ D service entry sheet update excise re!ister /6">A. (r. Asset ADc Cr. 6/DI/ ADc
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
At the time of invoice verification the system will prompt the user to notify if any advance payment exists. (r. 6/DI/ ADc Cr. 7endor %A'& aDc
At the time of makin! payment there are " options Automatic payment run = This clear all the open items a!ainst the I7 E will list down all the cleared items after which automatic che2ue printin! will be done by the system. -inally, the -I postin!s will also be done by the system automatically.
)anual payment run = Fere, the user will have to manually select the parties to whom payment has to be made. Also the che2ue printin! E -I postin! will be done manually. (r. 7endor aDc Cr. ank %Clearin!& aDc At the time of upload of the bank statement, the followin! entry will clear the bank sub account. 9ntry will be as follows (r. ank %Clearin!& aDc Cr. ank aDc
Lo/ Value Assets In case of ac2uisitions of value less than /s. $###, the Asset is written off in the year of ac2uisition itself, but the Asset inventory has to be (on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
maintained. -or such Assets an Asset Class for Low 7alue Asset will be created. Any ac2uisition for which the value is less than /s. $### will be posted to an Asset under this asset class. The depreciation key assi!ned to this class will be 5##J depreciation and will be posted durin! the next periodHs depreciation run.
Process Flo/ )or %etirement o) an Asset hen the Asset is no lon!er useful it is retired with proper approvals The asset may be sold for /evenue or may be scrapped. 6ainDLoss on /etirement is calculated by the system. Customer 'ayment is received and open item cleared
-low of 8ournal entries in SA' -or /etirement without /evenue, the +et ook 7alue of the Asset is the Loss on Sale of the Asset. (r. Accumulated (epreciation ADc (r.DCr. 6ainDloss on Sale of -ixed Assets Cr. Asset Ac2uisition ADc
-or /etirement with /evenue, the Customer will be debited by the Sale 'roceeds, the Asset (isposal will be credited by the Sales 'roceeds, the Asset ac2uisition ADc and the Accumulated (epreciation ADc is balanced to
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
(r. Asset (isposal Clearin! ADc (r.DCr. 6ainDLoss on Sale of -ixed Assets Cr. Asset Ac2uisition ADc Cr. Asset (isposal ADc
epreciation (alculation (epreciation is calculated in SA' based on the (epreciation keys attached to the Asset. The depreciation keys are assi!ned for the Asset Class and when the Asset is created, these are defaulted for the Asset. (epreciation keys describe the method of Calculation, rate of depreciation. There will be two (epreciation areas = 3ne for ook (epreciation as per Schedule 7I of the Companies Act, 5$@, and one depreciation area for IT depreciation as per rates mentioned in the Income Tax Act. As per the Income Tax Act, depreciation on -ixed Assets is calculated on the lock of Assets. -or this purposes, 6roup Assets will be created for each lock and will be assi!ned to the Asset. (epreciation Area for IT (epreciation will be included for (epreciation at 6roup Asset level.
Process )or Asset $nder (onstruction Asset 1nder construction %A1C& is used for Asset built in0house, or for pro*ects. Currently in Alok, these are bein! created as division and then on completion, transferred to the Asset. In SA' there will be a separate Asset Class called Asset under Construction. -or Assets bein! constructed in0 house, an Asset will be created under the Class of A1C. (urin! the period of construction, all the expenses incurred will be posted to the A1C Asset. 3n completion of the construction, the A1C is settled to the Asset. The settlement posts the values to the Asset to be capitali
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
depreciated hence the depreciation key for
-low of 8ournal entries in SA' A& hen expense is incurred for the A1C (r. A1C Asset ADc Cr. ankD 7endor ADc
& -or Settlement of A1C to final Asset (r. Asset ADc Cr. A1C Asset ADc
C& If some items are not to be capitali
3ransaction 3*pe -or postin! any transaction related to -ixed Assets, a transaction type has to be entered. The transaction type classifies the business transaction %for example, ac2uisition, retirement, or transfer&. The transaction type controls various system activities when business transactions are posted.
'.'
9aps +one
(on)idential $ncontrolled /hen printed
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Financial Accounting Business Blueprint Ver 2.0-
'.7
>orkaround +olutions +one
'.
Integration %e?uirements Asset Accountin! is closely inte!rated to 6eneral Led!er throu!h Account (etermination. Asset Class is assi!ned to Account (etermination and 6L Accounts are assi!ned to the Account (etermination. 6L Accounts for Ac2uisition, (isposal, (epreciation and 6ainDLoss on Sale of Assets Accounts are assi!ned. Asset Accountin! is inte!rated with C3 by assi!nin! a Cost center in the Asset )aster. Throu!h this assi!nment the depreciation !ets posted to the cost center and also to the profit center to which the cost center belon!s.
'.<
%eporting %e?uirements o
SAL/B;#55@> 0 Asset alances by Asset +umber
o
SAL/B;#55@? 0 Asset alances by Asset Class
o
SAL/B;#55@@ 0 Asset alances by Cost Center
o
SAL/B;#55@; 0 Asset alances by 'lant
o
SAL/B;#55; 0 'hysical Inventory by Cost Center
o
SAL/B;#55B5 0 'hysical Inventory by Asset Class
o
SAL/B;#55B" 0 'hysical Inventory by 'lant
o
A#5+ = Individual Asset 7alues
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SAL/B;#5"#"@ 0 (epreciation Current :ear
Authorisation %e?uirements The authori
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Financial Accounting Business Blueprint Ver 2.0-
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igration %e?uirements Cutover data for Asset masters, balances will have to be captured as part of data mi!ration. The formats for the same will be finali
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Financial Accounting Business Blueprint Ver 2.0-
7
Bank Accounting
7.1
=pectation ank Accountin! will have to record and mana!e the accountin! data relatin! to all bankin! transactions and mana!ement of Check Lots.
7.2
escription The functions involved here are
7.8
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ank /eceipts
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3ut!oin! 'ayments
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ank /econciliation
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Check )aintenance
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)aintainin! -orei!n 9xchan!e rates
+pecial (onsiderations +one
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(hanges to =isting Processes o
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ank /econciliation will be done by ank Statement upload Automatic 'ayment 'ro!ram for 'ayments 'ay in slip will be !enerated from SA' and this will post the payment.
7.;
+olution in +AP Bank %eceipts@
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Financial Accounting Business Blueprint Ver 2.0-
Checks received from Customers will be deposited in the bank throu!h the pay in slip !enerated throu!h SA' usin! T0code --@B. This transaction also tri!!ers a payment postin! to the Customer led!er.
5utgoing Pa*ment@ 'ayments can be handled manually or throu!h Automatic 'ayment pro!ram. Automatic 'ayment 'ro!ram %T0Code -55#& selects all the open items due for payment till the next payment date. A proposal is created showin! the list of items selected for payment. This proposal can be edited and open items can be blocked for payment. After runnin! the payment run, the payment is carried out and postin!s are made clearin! the open items. Checks and payment advices are also printed. Activatin! Check printin! for all the anks may become difficult to mana!e at a later sta!e. Fence it is recommended to activate it for anks where the payment transactions are voluminous. Later on based on the comfort level the balance can be brou!ht into SA'.
Bank %econciliation@ The ank reconciliation process is based on the entries passed throu!h the ank sub account and main account. The process is dependent on the ank Statement updation. ank )ain account balance is the actual balance as per the bank statement whereas the ank sub accounts denote the reconciliation items. These sub accounts show entries, which are not cleared in the bank statement. Addin! or subtractin! the ank sub accounts will prepare ank reconciliation statement.
(heck Lot aintenance@
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Financial Accounting Business Blueprint Ver 2.0-
Check lots are maintained for Fouse anks. These check numbers are assi!ned serially internally to the payment documents. Fowever in case of manual payment transactions and for manual check creation check number can be assi!ned manually to the payment document throu!h T0code -CF$ = )anual Checks. If durin! check printin! the check !ets spoiled checks can be reprinted !ivin! appropriate reason codes. The check number !ets void and the next free number is assi!ned to the payment document. In case of misappropriation or loss of checks, unused checks can be voided in SA'. 6ivin! blank checks and checks of type not over a certain amount can be handled by voidin! unused checks and when the check is used, cancellin! the voidin! information.
aintaining )oreign e=change rate ta!le@ -orei!n exchan!e rates are maintained in the exchan!e rate table %T0Code 3#B&. These rates will be used for translatin! transactions posted in forei!n currency. -or transactions posted in forei!n currency, the system picks the exchan!e rate from this table or it can also be entered manually while doin! the postin!.
7.'
9aps +one
7.7
>orkaround +olutions +one
7.
Integration %e?uirements +one (on)idential $ncontrolled /hen printed
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