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06/09/2000
FICO TO BE document for KBL e-MAD L&T Information Technology Limited 1.0
PH022T/1.0/15.09.99
D1007TBP/FICO /1.0/06/09/2000
Table of Contents
ORGANIZATION STRUCTURE......................................................................................................................3 COMPANY CODE...............................................................................................................................................3 BUSINESS AREA................................................................................................................................................3 CHART OF ACCOUNTS........................................................................................................................................3 CONTROLLING AREA.........................................................................................................................................4 OPERATING CONCERN........................................................................................................................................4 .....................................................................................................................................................................4 .....................................................................................................................................................................4 MASTER DATA ..................................................................................................................................................5 GENERAL LEDGER.............................................................................................................................................5 CUSTOMER.......................................................................................................................................................5 VENDOR..........................................................................................................................................................6 .....................................................................................................................................................................6 COST CENTRES.................................................................................................................................................7 COST CENTRE STANDARD HIERARCHY.................................................................................................................7 COST CENTRE GROUP (ALTERNATE HIERARCHIES)................................................................................................7 PROFIT CENTRES...............................................................................................................................................8 PROFIT CENTRE STANDARD HIERARCHY...............................................................................................................8 PROFIT CENTRE GROUPS (ALTERNATE HIERARCHIES)............................................................................................9 COST ELEMENTS (PRIMARY AND SECONDARY)......................................................................................................9 REVENUE AND COST ELEMENT GROUP.................................................................................................................9 ACTIVITY TYPES.............................................................................................................................................11 STATISTICAL KEY FIGURES (SKF)....................................................................................................................12 GENERAL LEDGER ........................................................................................................................................13 G/L POSTING STANDARD..............................................................................................................................13 G/L POSTING OFFSETTING............................................................................................................................15 G/L PLANNING ( STANDARD )..........................................................................................................................17 MANUAL CLEARING (STANDARD).....................................................................................................................19 ACCOUNTS RECEIVABLE............................................................................................................................20 CUSTOMER INVOICES (SD AND SM MODULE RELATED)......................................................................................20 CUSTOMER INVOICES (FI GENERATED) .............................................................................................................22 CUSTOMER DOWN PAYMENT (STANDARD).........................................................................................................24 MANUAL ACCOUNT CLEARING (CUSTOMER ).......................................................................................................26 MANUAL INCOMING PAYMENTS .......................................................................................................................28 MANUAL OUTGOING PAYMENTS .......................................................................................................................30 POSTING OF PARKED DOCUMENTS ( STANDARD ) ................................................................................................32 CUSTOMER DOWN PAYMENT CLEARING.............................................................................................................34 CUSTOMER CREDIT MEMO (FI GENERATED) .....................................................................................................36 ACCOUNTS PAYABLE....................................................................................................................................38 VENDOR INVOICES ........................................................................................................................................38 VENDOR CREDIT MEMO (INVOICE RELATED).....................................................................................................40 VENDOR DOWN PAYMENT (STANDARD).............................................................................................................42 MANUAL CLEARING (VENDOR).........................................................................................................................44 VENDOR INVOICE ( STANDARD ) (DIRECT FI INVOICES).......................................................................................46 VENDOR CREDIT MEMO ( STANDARD ) (DIRECT FI RELATED)..............................................................................48
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MANUAL OUTGOING PAYMENTS .......................................................................................................................50 POSTING OF PARKED DOCUMENTS ( STANDARD ) ................................................................................................52 VENDOR DOWN PAYMENT (CLEARING)..............................................................................................................54 CLOSING OPERATIONS.................................................................................................................................55 FOREIGN CURRENCY VALUATION (BALANCES).......................................................................................................55 FOREIGN CURRENCY VALUATION OPEN ITEMS...................................................................................................57 REGROUPING OF RECEIVABLE AND PAYABLES......................................................................................................59 BUSINESS AREA ADJUSTMENT..........................................................................................................................60 CUSTOMER / VENDOR BALANCE INTEREST CALCULATION ......................................................................................62 MAINTAIN GR/IR CLEARING ACCOUNT .............................................................................................................64 PERIODIC REPORTING ......................................................................................................................................66 BALANCE CARRIED FORWARD (FI) ...................................................................................................................68 MATERIAL DEBIT / CREDIT ............................................................................................................................69 MATERIAL PRICE CHANGE .............................................................................................................................70 WITHHOLDING TAX .......................................................................................................................................71 PERIODIC PROCESSING...............................................................................................................................73 DUNNING NOTICE (CUSTOMER )........................................................................................................................73 AUTOMATIC CLEARING ...................................................................................................................................75 DUNNING NOTICE (VENDOR)............................................................................................................................76 PROFIT AND COST PLANNING...................................................................................................................77 STATISTICAL KEY FIGURES...............................................................................................................................77 COST CENTRES ..............................................................................................................................................77 ACTIVITY PRICES ...........................................................................................................................................78 PROFIT CENTRES ...........................................................................................................................................78 PROFITABILITY SEGMENTS .............................................................................................................................78 ACTUAL POSTING (REGULAR AS WELL AS PERIOD-END)..............................................................80 STATISTICAL KEY FIGURES...............................................................................................................................80 COST CENTRES ..............................................................................................................................................80 INTERNAL ORDERS.........................................................................................................................................81 ...................................................................................................................................................................81 PROFIT CENTRES............................................................................................................................................81 SERVICE ORDERS ..........................................................................................................................................81 SALES ORDERS WHICH ARE COST OBJECTS (OTHER THAN MAKE TO STOCK)................................................................81 PROFITABILITY SEGMENTS ..............................................................................................................................81 MANAGEMENT REPORTING.......................................................................................................................83 COST CENTRE ACCOUNTING ...........................................................................................................................83 INTERNAL ORDERS..........................................................................................................................................83 PROFIT CENTRE ACCOUNTING..........................................................................................................................83 SALES ORDERS / SERVICE ORDERS...................................................................................................................84 PROFITABILITY ANALYSIS.................................................................................................................................84
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Organization Structure
Company Code
Minimum one company code is required in SAP R/3 system. Audited Accounts for KBL eMAD will be required to include the same in the accounts of Kirloskar Brothers Limited (KBL). KBL e-MAD shall present its financial statements as per the requirements of Schedule VI to the Companies Act, 1956 so that consolidation process with KBL accounts will be smooth. Code KB10 Name Kirloskar Bros Ltd. E-MAD
Business Area
As explained by KBL, the company is required to disclose its segments as based on product groups (8 Segments) and geographic locations i.e. about 30 segments (India and all other countries). R/3 will provide segmental data based on product groups (defined as business areas), while geographic location wise information will be available through Profit Center Accounting. Additional balance sheet related data such as fixed assets, bank balances etc. need to be compiled by the accounts department. C BA01 BA02 BA03 BA04 BA05 BA06 BA07 BA08 BA09 Name Industrial Pumps Group Project and Engineered Pumps Group Valves Group Machine Tools Group Agricultural and Domestic Pumps Group Printing Press Group Anti-Corrosion Products Group Other Products Common Services
Chart of Accounts
One company code can use only one Chart of Accounts and hence only one will be defined. Code KBCA Name Kirloskar Bros Chart of Accounts
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Controlling Area
At least one controlling area is required to activate the CO Module and one company code can be assigned to only one controlling area. Code KB10 Name Kirloskar Bros Ltd. E-MAD
Operating Concern
At least one operating concern is required to be defined to activate Profitability Analysis. A decision in taken by the project management to activate Profiatbility Analysis module at a later date. Therefore it will not be activated but the TOBE document contains the procedure for future. The operating concern when activated will be Costing Based . Code KB10 Name Kirloskar Bros Ltd. E-MAD
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Master Data
General Ledger
The G/L master will be of 6 digits as in the legacy system. It will help in maintaining the user comfort. These G/L accounts will be logically grouped into account groups within chart of account (KBCA). The account groups and number ranges for the G/L masters are as follows: Type of GL Liabilities Assets Income Expenses Account Group LIAB ASST INCO EXPS Number Range 100000 to 199999 200000 to 299999 300000 to 399999 400000 to 499999
Creation of new G/L account and changes thereto in Chart of Account will be controlled centrally by Corporate Finance and Accounts Department, Pune. Display authority should be available to all the users. The entire general ledger accounts except for control (Reconciliation) accounts will be subject to line item management. Most of the balance sheet accounts will be subject to open item management. EEFC accounts are to be maintained in foreign currency.
Customer
Customer master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, whether registered dealer or unregistered, in case of registered dealer his registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act, type of customer, whether he is a vendor also. Customers should be bifurcated into various types such as: Dealers, Direct Customers, Industrial Sector, Government / Semi Government Undertakings, Original Equipment Manufacturers, Turnkey Project Customers, Associate Concerns, Overseas Clients, One Time (Stray) Customer. The range of accounts numbers will be of 6 digits which is allocated as under:
Customer Group Name Exports KBL Inland KBL One-time cust.- KBL
Every customer will have unique account number for E-MAD operations.
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Whenever new customer master is to be opened the requiring department will forward a requisition in specific format to concerned department. On the basis of such requisition, new customer master will be opened. In case of change it will be informed to the concerned department to effect the changes in master record.
Vendor
Vendor master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act. It should also be mentioned whether he is small-scale industrialist, type of vendor, whether he is a customer also. Vendors should be bifurcated into various types such as: Employee, Factories and offices of KBL, Ancillary Units, Small Scale Industries, and Overseas Suppliers, Contractors, Associate Concerns and others. The range of accounts numbers will be of 6 digits which is allocated as under: Factories and offices of KBL 200001 to 200200-KBFA Ancillary Units 200201 to 210000-KBAU Small Scale Industries 210001 to 220000-KBSS Overseas Suppliers 220001 to 225000-KBOS Contractors 225001 to 230000-KBCT Associate Concerns 230001 to 231000-KBAC Others 231101 to 240000-KBOT Capital Goods 231001 to 231100-KBCG Employees 000001 to 200000 - KBEM (Employees ticket number will be his account number in AP Ledger) Following will be the respective Reconciliation Accounts in General Ledger for above range of accounts: 140300 Depot Ledger Controlling Account for range of accounts with numbers 200001 to 200200. 140400 Advance Ledger Controlling Account for range of accounts with numbers 1000 to 200000 140500 Accounts Payable Controlling Account for all the remaining accounts. Every vendor will have unique account number for E-MAD operations. Whenever new vendor is to be opened, the requiring department will forward a requisition in specific format to concerned department. On the basis of said request, new account will be opened. In case of change it will be informed to the concerned department to effect the changes in master record.
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Cost Centres
Cost centres will be defined to reflect location and product group. The cost centre numbers will be numeric of five digits. The numbering logic will be as follows: First two numbers Last three numbers Location (e.g. Pune, Mumbai) Product group (e.g. DB, KPD, and Mini)
For each location, common cost centres will also be created to collect costs, which are not directly allocable. One additional common cost centre will also be created at locations with service centres for service management. Combination of product groups will form a product division (e.g. industrial pumps, valves). Product division will not form part of cost centre numbering logic but will be reflected through sub-groupings (nodes) in cost centre standard and alternate hierarchies.
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Profit Centres
Profit centres will be defined to reflect location, product group and SBU. The profit centre numbers will be numeric of seven digits. The numbering logic will be same as that of cost centres for location and product group: First two numbers Next three numbers Last two numbers Location (e.g. Pune, Mumbai) Product group (e.g. DB, KPD, Mini) SBU
The cost centres will be attached to the respective profit centres. Combination of product groups will form a product division (e.g. industrial pumps, valves). Product division will not form part of profit centre numbering logic but will be reflected through sub-groupings (nodes) in profit centre standard and alternate hierarchies.
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The secondary cost elements will be created with a number range of 500000 to 599999. The following secondary cost element categories will be used within the given number ranges.
Category
21 31 41 42 43 - Internal settlement - Order/project results analysis - Overheads - Assessment - Internal activity allocation
Number range
500000 520000 540000 560000 580000 to to to to to 519999 539999 559999 579999 599999
The secondary cost elements will be created with an interval of 100. E.g. Cost elements of category 21 will be 500100, 500200,500300 and so on.
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KBL000
Revenue and Cost element group Sales Sale of main products Sale of services Sale of spares
KBL100
Other income Income from investments Miscellaneous receipts Income from agriculture Profit on sale of asset Recovery of bad debts Profit on sale of investments Royalty received
Material cost Cost of goods sold Stores and spares consumed Processing charges
Personnel related expenses Salaries, wages & bonus Payment under VRS Contribution to PF & state insurance Contribution to superannuation fund Workmen & staff welfare expenses Provision for gratuity
General expenses Power & fuel Repairs to buildings Repairs to machinery Rent Rates & taxes Insurance Excise duty paid Travelling & conveyance Advertising & publicity Postage & telephone
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KBL601 KBL602 KBL603 KBL604 KBL605 KBL606 KBL607 KBL608 KBL609 KBL610
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KBL611 KBL612 KBL613 KBL614 KBL615 KBL616 KBL617 KBL618 KBL619 KBL620 KBL621 KBL622 KBL623 KBL624 KBL625 KBL626 KBL627 KBL700 KBL800 KBL900
Transportation Lease rent General Expenses Donations Directors fees Directors travelling expenses Directors remuneration Managing directors remuneration Bad debts written off Royalties & fees Agricultural expenses Loss on sale / scrapping of fixed assets Provision for doubtful debts / advances Loss on sale of investments Services Received from Press Services Received from Head Office Excess Provision Depreciation Interest Paid Cash Discount
KBL990
Other secondary costs Internal settlement Order / project result analysis Overheads Assessment Internal activity allocation
The following balance sheet group will be created for reporting of inventory, accounts receivable and accounts payable in PCA.
KBLBS
Balance sheet accounts KBLBS-INV KBLBS-AR KBLBS-AP Inventory Accounts receivable Accounts payable
Activity Types
Activity types will be used for service activity for service management module. The activity type names will be alphanumeric. Common activity types will be created for all product divisions. These are as follows:
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Code
AT01HR AT01DY AT02HR AT02DY AT03HR AT03DY
Name
Upto & Including Superviosors Upto & Including Superviosors Above Superviosors, upto & incl. Managers Above Superviosors, upto & incl. Managers Above Managers Above Managers
Unit
Hour Day Hour Day Hour Day
Cost Element
580100 580200 580300 580400 580500 580600
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General Ledger
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 23rd Aug 2000 Sr. No of TO BE document FI001 AS-IS Business Process Name: General Ledger Page no.: 10 to 18 Name of Business Process :
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and for the purpose of statutory compliance. Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Cost Center Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 23rd Aug 2000 Sr. No of TO BE document : FI002 AS-IS Business Process Name: General Ledger Page no.: 10 to 18 Name of Business Process :
Sub-module: GL
D1007TBP/FICO /1.0/19/08/2000
Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Cost Center. Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 23rd Aug 2000 Sr. No of TO BE document : FI002 AS-IS Business Process Name: General Ledger Page no.: 10 to 18 Name of Business Process :
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Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, G/L account Inputs/ data received from other function for this process, ( if any ) : Yes. The data is received from CO-CCA. Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 23rd August 2000 Sr. No of TO BE document : FI003 AS-IS Business Process Name: General Ledger Page no.: 10 to 18 Name of Business Process :
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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Accounts Receivable
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI004 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
Sub-module : AR
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Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, (if any): SD module will release invoice for accounting after all the processes of inquiry, order, despatch and billing. Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI005 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
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Sales Tax register Report on user defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers Document Register based on document type, posting date, period etc. Customer Trial balances Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance. Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center Inputs/ data received from other function for this process, (if any): Nil Output from this business process sent to other functions, ( if any ) : Nil Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI006 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
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Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center. Inputs/ data received from other function for this process, (if any): Down Payment Request Output from this business process sent to other functions, (if any): Yes. Money receipts will be sent to the customer, pay in slip will be used for bank transactions, advices for interest will be mailed to customer. Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI007 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
Sub-module : AR
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Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI008 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
Sub-module : AR
D1007TBP/FICO /1.0/19/08/2000
Report on age wise classification of customers, due date-wise analysis of dues from customers, Profit center-wise information on dues from customers. Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI009 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
Sub-module : AR
D1007TBP/FICO /1.0/19/08/2000
Any document/output would be printed for this business process: Yes If Yes mention name of such document : Remittance Letter If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI010 AS-IS Business Process Name: Not in As-IS Page no.: Name of Business Process :
Sub-module : AR
D1007TBP/FICO /1.0/19/08/2000
Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI011 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
Sub-module : AR
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Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI012 AS-IS Business Process Name: Accounts Receivable Page no.: 23 to 89 Name of Business Process :
Sub-module : AR
D1007TBP/FICO /1.0/19/08/2000
Sales Tax register Report on user defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers. Document Register based on document type, posting date, period etc. Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance. Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center Inputs/ data received from other function for this process, (if any): Nil Output from this business process sent to other functions, ( if any ) : Nil Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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Accounts Payable
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI013 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Vendor Invoices
Module: FICO Flow Chart of Business Process : Annexure - 6 Detailed description of Business Process: Requirement: Accounting in multiple currency. Invoice from vendor with complete details such as reference of purchase order, date, description of material, quantity, rate, discount, value, details of duties and taxes, terms of payment etc. Open items in vendor account should appear. Line items in vendor account should appear. Age-wise classification of dues to vendors. Due date-wise classification of dues to vendors. Facility for two-way (i.e. without GRN) and three-way invoice verification. Generate accounting Documents Facility to Display and change (Limited extent) the accounting document Facility to park the document and subsequent posting/cancellation of the parked document. Location specific document numbers to be generated internally. Process: The invoices of vendors will come to accounting clerk and will be posted with reference to Purchase Order and GRN posted (if any) in MM module. Sometimes FI also will receive invoices of vendors directly from them (e.g. supply of stationery etc. items). Invoice verification activity will be done by FI only. Invoice verification will be two-way as well as three-way. Two-way means invoice verification without GRN. Three way means invoice verification with GRN. It will be accounted using location specific document types. If on invoice verification it is observed that the vendor has raised the invoice for excess amount, a debit note will be raised on vendor. In such case correct amount will be debited to Inventory Account, excess amount will be debited to the vendors account and total invoice amount will be credited to the vendors account. If he has raised invoice for fewer amounts, the vendors invoice will be passed for correct amount. In case user is not having authorization, he will park the document and senior user
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Sub-module : AP
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having authorization will post / cancel the parked document. Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available. Report on Agewise classification of creditors, due date-wise analysis of dues to vendors, product group/ location wise payables. Document Register based on document type, posting date, period etc. Vendor Trial Balance. Vendor wise purchases. Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information and for facilitating the audit process and for the purpose of statutory compliance. Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system: Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center. Inputs/ data received from other function for this process, ( if any ) : Purchase Order, GRN. Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI014 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Process: Vendor Credit Memo with complete details (such as reference of Purchase Order, Date, Vendors Invoice, Description of material, Quantity, Rate, Discount, Reason for credit memo, details of duties and taxes) will come to Accounts Department, who will verify based on supporting and other documents available. If on verification it is observed that the vendor has issued the credit memo for excess amount, a credit note will be issued to vendor. In such case total amount of credit memo will be debited to the vendor account, excess amount will be credited to the vendors account and balance amount will be credited to the respective Inventory/Expenses account. If he has issued the credit memo for lesser amounts, the vendors credit memo will be passed for correct amount using location specific document types. In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document. Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available. Report on Age wise classification of creditors, due date wise analysis of dues to vendors, product-group/ location wise payables. Document Register based on document type, posting date, period etc. Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information and for facilitating the audit
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process and for the purpose of statutory compliance. Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system: Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center. Inputs/ data received from other function for this process, ( if any ) : Purchase Order, GRN and vendor Credit Memo request from MM. Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI015 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Process: Cashier will receive Payment request containing the name of the vendor, reason for payment and instructions for deduction of tax at source from Purchasing Department for Advances in accordance with Purchase order after duly verified by the appropriate authority. Cashier will prepare the cheque and voucher on the basis of Payment Request. It will be verified and signed by the authorized personnel. Accounting document will be posted in SAP R/3 for the Advance payment and FI will generate Remittance Letter through SAP R/3 system. Such vouchers will be entered into the books of accounts through location specific document type Bank / Cash Journal . In case letter of credit, bank guarantee given, it will be accounted as statistical information. Gaps: Nil Any reports required related to current business process : No If Yes , whether required format of such report is attached: NA Description of reports to be used i.e. purpose of such report: NA Any document/output would be printed for this business process: Yes If Yes mention name of such document : Remittance Letter If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
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Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Centre Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI016 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Sub-module : AP
D1007TBP/FICO /1.0/19/08/2000
Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI017 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Process: Purchase orders will be created using MS-word and will not be entered in MMpurchasing. The invoices of vendors will come to accounts department. (e.g. supply of stationery etc. items) with complete details such as reference of purchase order, date, description of material, quantity, rate, discount, value, details of duties and taxes, terms of payment etc. Confirmation for receipt of material will also come to accounts department. Document confirming receipt of material / service with reference to Purchase / Sales Order against which the material is purchased and serial numbers of the products purchased. Invoice and receipt document will be matched. Accounts department will do invoice verification activity on the basis of available supporting documents such as purchase order, material receipt document. If on invoice verification, it is observed that the vendor has raised the invoice for excess amount, a debit note will be raised on vendor. In such case correct amount will be debited to respective purchase account, excess amount will be debited to the vendors account and total invoice amount will be credited to the vendors account. If he has raised invoice for lesser amounts, the vendors invoice will be passed for correct amount through location specific document types. In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document. Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available.
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Report on Agewise classification of creditors, due datewise analysis of dues to vendors, cost centre wise information on dues to vendors. Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI018 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Process: The credit memo of vendors with complete details (such as reference of purchase order, date, vendor invoice, date, description of material, quantity, rate, discount, value, reason for credit memo, details of duties and taxes, terms of payment etc.) will come to accounts department duly approved by appropriate authority with required supporting documents. This credit memo will be verified with original invoice of the vendor and supporting as referred above. After verification, the vendor credit memo will be accounted for in the System. If on verification it is observed that the vendors credit memo is for excess amount, a credit note will be issued to vendor. In such case correct amount will be debited to appropriate General Ledger Account, excess amount will be credited to the vendors account. If he has raised credit memo for lesser amount, the vendors credit memo will be passed for the amount stated in credit note and the debit note will be raised for the differential amount through location specific document types. In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document. Gaps: Nil Any reports required related to current business process : Yes Statement of account of the vendor. Information to arrive at the amount of Purchase set off available. Report on Agewise classification of creditors, due date-wise analysis of dues to vendors, product group / location wise, segment wise information on dues to vendors. Document Register based on document type, posting date, period etc. If Yes , whether required format of such report is attached: Yes
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Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center. Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI019 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Process: Payments will be made to vendors only on receipt of payment request containing name of the vendor, reason for payment and instructions for deduction of tax at source from Purchasing Department. The Payments will be made to vendors in accordance with the terms of Payment as stated in Purchase Order. Based on this information, cheque will be prepared in the name of the vendor. Accounts Department will enter the above payment in the system specifying against which invoice (through location specific document type Bank / Cash Journal ) and Remittance Letter will be generated through SAP R/3 system. Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: Yes Statement of account of the vendor. Report on Agewise classification of creditors, due date-wise analysis of dues to vendors, profit center-wise information on dues to vendors. Document Register based on document type, posting date, period etc. Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance. Any document/output would be printed for this business process: Yes If Yes mention name of such document : Remittance Letter
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If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area, Profit Center. Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI020 AS-IS Business Process Name: Not in As-Is Page no.: Name of Business Process :
Sub-module : AP
D1007TBP/FICO /1.0/19/08/2000
Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI021 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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Closing Operations
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 22rd August 2000 Sr. No of TO BE document : FI022 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
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Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI023 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
Sub-module : GL Closing
D1007TBP/FICO /1.0/19/08/2000
Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24 August, 2000 Sr. No of TO BE document : FI024 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects
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R R Kittur
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24 August, 2000 Sr. No of TO BE document : FI025 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
D1007TBP/FICO /1.0/19/08/2000
M R Rajwade R R Kittur
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI026 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
Process: At the month-end, appropriate authority will decide to whom to charge the interest, based on which customers will be selected At the month-end, accounting document will be generated for interest in case of all the selected customers as stated aforesaid Interest on business deposit and advances received from customers will be calculated on annual basis Interest will be calculated for each invoices In case of Small-Scale vendors, it will be calculated at the year-end for overdue invoices Necessary accounting documents will be generated Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: Yes Description of reports to be used i.e. purpose of such report: It is required for sending information to the customer. Any document/output would be printed for this business process: Yes If Yes mention name of such document : Credit Note for interest If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
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Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI027 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
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Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI027 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
Periodic Reporting
Module: FICO Flow Chart of Business Process : Nil Detailed description of Business Process: Requirement: To generate the Reports at the month/year end Process: At the month end as well as year-end following reports will be generated on paper as well as in electronic form Gaps: Nil Any reports required related to current business process : Yes 1. Balance Sheet and Profit and Loss Account in Schedule VI format on quarterly basis at Company as well as Segment level. 2. Balance Sheet and Profit and Loss Account in Management Reporting Format on monthly basis. 3. Balance Sheet and Profit and Loss Account in both the above formats with actual versus actual of previous year and actualize versus planned on quarterly and monthly basis. 4. Data retention should be for a minimum period of eight years. 5. Daily and monthly cash flow statement actual versus planned and variance. 6. Trial balance for each ledger i.e. General Ledger, Accounts Receivables, Accounts Payables etc. 7. Statement of account for each accounts with line items showing details of open items and cleared items. 8. Balance confirmation of customers and Vendor. (separately for special G/L accounts) 9. List of schedules attached to Balance Sheet and Profit and Loss Account. 10. Journal Listing for each document type on monthly basis 11. Facility to print all the documents 12. List of bills of exchange 13. Directory of chart of accounts at Business Area level 14. Directory of chart of accounts at company code level 15. Account assignment manual 16. G L Account List ( Query ) 17. Document of duplicate invoice numbers 18. Recurring entry original documents 19. Tax Related Reports 20. FOB Value of Exports of Goods and Services (Product-wise and Country-wise). As per schedule VI of the Companies Act, and as per Section 80HHC of the Income Tax Act. 21. C. I. F. Value of Imports (Raw Materials and Capital Goods)
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22. Earnings and expenditure in foreign currency. If Yes , whether required format of such report is attached: Yes Description of reports to be used i.e. purpose of such report: Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable If Yes, whether required format of document / output is attached: Not Applicable Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI028 AS-IS Business Process Name: General Ledger Closing Operations Page no.: 18 Name of Business Process :
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI029 AS-IS Business Process Name: Not in As-Is Page no.: Name of Business Process :
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI030 AS-IS Business Process Name: Not in As-Is Page no.: Name of Business Process :
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects
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R R Kittur
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 25th August 2000 Sr. No of TO BE document : FI031 AS-IS Business Process Name: Accounts Payable Page no.: 91 to 97 Name of Business Process :
Withholding Tax
Module: FICO Flow Chart of Business Process : Nil Detailed description of Business Process: Requirement: To deduct the TDS at the time of advances and at the time of booking invoices which ever is earlier To print / reprint the TDS certificates and Annual Return To print the location wise (not segment wise) serial numbers on TDS certificate and separate annual return for each location Process: At the time of down payment necessary tax is to be deducted At the time of booking invoices tax is to be deducted TDS at the time of invoices should be net of the TDS deducted at the time of down payment On due date payment will be made to the account of Government Only after making payment to the Government, TDS certificate will be printed At the year-end annual return will be filed Gaps: To print the location wise (not segment wise) serial numbers on TDS certificate and separate annual return for each location. Any reports required related to current business process : Yes Annual Return If Yes , whether required format of such report is attached: Yes Description of reports to be used i.e. purpose of such report: Not Applicable Any document/output would be printed for this business process: Yes If Yes mention name of such document : TDS Certificate Duplicate TDS certificate If Yes, whether required format of document / output is attached: Yes Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Sub-module : GL
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Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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Periodic Processing
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI032 AS-IS Business Process Name: Not in As-Is Page no.: Name of Business Process :
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Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 24th August 2000 Sr. No of TO BE document : FI033 AS-IS Business Process Name: Not in As-Is Page no.: Name of Business Process : Periodic Processing Module: FICO Sub-module: AR/AP Flow Chart of Business Process : Nil Detailed description of Business Process:
Automatic Clearing
Requirement: To provide facility for automatic clearing of open items. Process: Transaction in customer Ledger, vendor ledger and Special General Ledger will be verified with original vouchers and cleared against respective open line items. Open items in customer ledger will be verified and cleared against respective open line items. Open items in vendor ledger will be verified and cleared against respective open line items. Open items in special general ledger account will be verified and cleared against respective open line items. Gaps: Nil Any reports required related to current business process : No If Yes , whether required format of such report is attached: No Description of reports to be used i.e. purpose of such report: Not Applicable Any document/output would be printed for this business process: No If Yes mention name of such document : No If Yes, whether required format of document / output is attached: No Whether data records of current business process would be transferred to system other than SAP R/3: No If Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Company code, Business Area. Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects
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R R Kittur
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 27th August 2000 Sr. No of TO BE document : FI034 AS-IS Business Process Name: Not in As-Is Page no.: Name of Business Process :
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects
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R R Kittur
Cost Centres
Budgeted data i.e. revenue expenses will be compiled cost centre wise and cost element wise externally through. the normal annual budgeting process carried out in the organization The annual budgeted figures should be broken up into month-wise figures only in case the month wise break-up is not equal The data will be compiled in MS-Excel. The data will include figures in rupees, its monthwise distribution and explanation for the expense, if any The data will be uploaded to SAP system through a program The data will then be copied to FI-GL planning Any change in the planned figures will not be given retrospective effect. For this the
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planning transactions will be locked after the period ( month) is over The common cost centre costs will be allocated (through assessment) to other cost centres based on applicable Statistical Key Figures
Activity Prices
The hourly prices will be determined externally for each activity type / cost centre combination for each financial year. The prices will be calculated externally will be uploaded through a program.
Profit Centres
Expenses planned (budgeted) on Cost Centres will automatically get transferred to Profit centres attached to the cost centres Revenue elements and Balance Sheet accounts ( AR, AP and Inventory) will be planned externally. The data will be uploaded through a program
Profitability Segments
Data for Sales Quantities, Revenues, Cost of Goods Sold, Direct costs and overheads will be calculated externally and will be uploaded into profitability segments (customer group + material group) through a program The planned overheads will not be allocated to a particular product This planning process will be done after one year of going live on the basis of actual data available for the first year Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: No as the standard SAP report is meeting the requirement Description of reports to be used i.e. purpose of such report : Report to compare planned Vs. actual data Any document/output would be printed for this business process: No If Yes mention name of such document : If Yes, whether required format of document / output is attached: Whether data records of current business process would be transferred to system other than SAP R/3 : No If Yes, Describe in details and attach the format in which data would be stored in the other system :
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Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Controlling Area , Cost Centre , Profit Centre Inputs/ data received from other function for this process, ( if any ) : The data is received from budgeting process in MS-Excel Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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Process:
Cost Centres
Actual costs will be posted to the cost centres by following sources : FI-GL posting Goods receipts and invoice verification for revenue purchases Goods issue for free delivery / free samples Goods issue for scrapping of material and sale of scrap Settlement of non-billable service orders. These costs will be analyzed and costs which are resulted from factory will be transferred to factory cost centres through. debit advices. Settlement of internal orders (if any) Reposting of costs from one cost centre to another Accrual costs using Target = Actual method Cost centre assessment from common cost centres The activity allocation from cost centres to service orders will post credit entries for services rendered by the cost centre under secondary cost elements The over/under absorption on cost centres will be assessed to profitability segments i.e. a combination of customer group and product group
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Internal Orders
Internal orders will be created to capture specific type of expenses such as trade fair, sales promotion, tendering etc. Actual costs will be posted to the cost centres by following sources : FI-GL posting Goods receipts and invoice verification for revenue purchases Reposting of costs from one cost centre The cost booked on internal orders will be settled (transferred) to relevant cost object i.e. cost centre or sales order
Profit Centres
Actual data flows in profit centre accounting from all other modules through profit centre assignments. The following objects of other modules are assigned to profit centres: Cost centre : - in basic data Internal order :- in basic data Material master:- for each plant in either sales general/plant view or costing2 view Sales order: - in account assignment of sales order item. This can be entered manually or through substitution rules at the time of sales order creation Service order:- in additional data, assignments Actual Revenues /costs will be posted to all the profit centres by following sources : Costs booked on cost centres will automatically get posted to the profit centres attached to the cost centres Sales revenues / deductions and cost of goods sold will be posted through. Sales Orders / billing documents based on the profit centres assigned to the sales orders. The sales order assignment to profit centre will be either through substitution rule or through direct input in the sales order Balance sheet items (AR, AP and Inventory) will be posted to Profit Centres on periodic basis i.e. it will not be online and will be transferred after period end process in FI and CO Accounts receivable will be transferred to the profit centre assigned in the sales order / line item Accounts payable will be transferred to the profit centre of the material purchased with reference to plant. The Profit centre is assigned for a material at plant level. In case of account assigned purchases ( i.e. directly debiting cost centre / internal order / sales order ) AP will be transferred to the Profit Centre assigned to the cost object Inventory will be transferred to the profit centre assigned to the material in a particular plant
Service Orders
Actual costs will be posted to service orders by following sources : Goods issue to a service order
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Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: No as the standard SAP report is meeting the requirement Description of reports to be used i.e. purpose of such report : Report to compare planned Vs. actual Any document/output would be printed for this business process: No If Yes mention name of such document : If Yes, whether required format of document / output is attached: Whether data records of current business process would be transferred to system other than SAP R/3 : No If Yes, Describe in details and attach the format in which data would be stored in the other system : Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Controlling Area , Cost Centre , Profit Centre Inputs/ data received from other function for this process, ( if any ) : The data is received from budgeting process in MS-Excel Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit
Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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Management Reporting
TO-BE Document For SAP R/3 Implementation at Kirloskar Brothers Limited Date : 25th August 2000 Sr. No of TO BE document : CO003 AS-IS Business Process Name: Information System Page no.: 105 Name of Business Process :
Management Reporting
Module: FICO Flow Chart of Business Process : Nil Detailed description of Business Process: Requirement: Profitability at following levels: Location Product group Product division SBU Customer group Sales Order Expense control up to activity level i.e. Marketing, Warehousing etc. Location wise, product group wise bifurcation of vendors (AP)and customer(AR) balances as well as inventory values Process: Sub-module : CO
Internal Orders
Internal orders will give information on cost element wise costs booked on internal orders along with the settlement cost centre and cost element.
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and SBU. This will also provide necessary information for meeting statutory requirement of segmental reporting based on geographical locations.
Profitability Analysis
PA will give profitability follows : Profitability for any combination of characteristics e.g. Customer group , Product Group , Industry, Product hierarchy etc at contribution level ( Sales COGS Direct Costs) Profitability for any combination of Product Group / Customer group at net profit level ( Sales COGS Direct Costs Overheads ) Gaps: Nil Any reports required related to current business process : Yes If Yes , whether required format of such report is attached: No as the standard SAP report is meeting the requirement Description of reports to be used i.e. purpose of such report : Any document/output would be printed for this business process: No If Yes mention name of such document : If Yes, whether required format of document / output is attached: Whether data records of current business process would be transferred to system other than SAP R/3 : No If Yes, Describe in details and attach the format in which data would be stored in the other system : Which hierarchy levels would be associated with this business process ( please mention about all scenarios ) : Controlling Area , Cost Centre , Profit Centre Inputs/ data received from other function for this process, ( if any ) : No Output from this business process sent to other functions, ( if any ) : No Sign-off (Approval) for this document : Name of Team member Organization/Bus. Unit Signature
KBL - Kirloskarvadi KBL - Dewas KBL - Pune Head Office KBL - Pune Projects KBL - Pune Area Office
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