Business Process Review

Version No. 1.0

Business Process Review

MSTL SAP Rollout
Version No.: 1.0

Release Date: 1/19/2015

AUTHOR/ OWNER

REVIEWED BY

APPROVED BY

Name

Pramod Garg

Rajiv Gupta

Madhav Mukund

DESIGNATION

Manager-Business
Consulting

General Manager

Head Business Consulting

REVIEWED BY

APPROVED BY

Name

Mr. Thiyagesh

Mr. Thiyagesh

DESIGNATION

Dy. GM

Project Manager

SIGNATURE

SIGNATURE

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Business Process Review

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Scope of SAP FI
Following modules are in scope

a.)
b.)
c.)
d.)
e.)

General Ledger
Account Payable
Account Receivable
Bank Account
Assets Accounting

In General, functionalities/reports as available in standard SAP and/or implemented by MSPS will be available for
MSTL SAP rollout Phase 1.

MSTL Organization structure

Controlling Area
Controlling provides with information for management decision making.
In MSTL:
Controlling Area
MS01

Description
MSTL Controlling Area

In MSPS:
Controlling Area CA01 is used in SPAIN. Since Fiscal Year Variant used by MSPS is different from MSTL, a new
Controlling Area MS01 has been proposed and created.
GAP: There is no GAP

Company Code
Company code is the central organizational unit for external reporting within the SAP system.
In MSTL:
Company Code
9090

Description
MSTL Pondicherry

GAP: There is no GAP

Profit Center
Profit Center is a unit for which a balance sheet and income statement can be created. In MSTL, single plant is
corresponded to a profit center.
In MSTL:
Profit Center
IN10

Description
MSTL Pondicherry

GAP: There is no GAP

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Fiscal Year Variant

Fiscal year is generally a period of 12 months for which a company creates financial statement.
In MSTL:
Fiscal Year Variant
V3

Description
April to Mar

In MSPS:
Fiscal year starting from Feb to Jan is used.

Posting Period Variant

Posing Period Variant is used to control posting for a particular period. Posting to financial books can be control using
posting period variant.
In MSTL:
Posting Period Variant
MS01

Description
MSTL Posting Period

Document Type and Number Range

Document type determines the nature of FI entry. Number ranges are assigned to the document type.
In MSTL:
SAP standard document type and number range is used. Number range for Excise record is extra for MSTL.
Credit which has not yet be passed
In SPAIN:
SAP standard document type and number range is used.

Chart of accounts
Chart of Account group together all the GLs including Balance Sheet and Profit & Loss accounts.
In MSTL:
Chart of Account
COCA

Description
Global Chart Of Account

In MSPS:
Chart of Account
COCA

Description
Global Chart Of Account

Mapping of MSTL GL to MSPS GLs. File attached

< File has to be provided >

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Field Status Variant

Field Status Variant groups together several Field Status Groups. Field Status Group determines which fields are ready
for input, which are required and which are suppressed during document posting
In MSTL:
Field Status Variant
MS01

Description
MSTL Field Status Variant

GAP: There is no GAP

Account Group
Account group classify the nature of G/L. It determine the number ranges and data relevant for the master records.
In MSTL:
Char of Account
COCA

In MSPS:
Char of Account
COCA

Account Group

Description

From

To

ALL

ALL

ZZZZZZZZZZ

Account Group

Description

From

To

ALL

ALL

ZZZZZZZZZZ

GAP: There is no GAP

Taxes on Purchases and sales.

Business process of calculating tax is automated in SAP.
Standard tax procedure TAXINN conditions are used for calculation of tax on input, output and additional tax. Input tax
automatically calculated based on net invoice amount. Output tax can be automatically calculated based on net price in
the invoice & charged to the customer. Different taxes are levied at different levels and at different rates based on
geographical location of the customer/vendor and also the plant.
In MSTL:
SAP provided standard Indian taxation procedure will be used. MSTL can select the respective tax rates. Input and Output
taxes are discussed with MSTL. File attached.

MM Pricing
Proceedure.xlsx

SD Pricing
Proceedure.xlsx

MSTL: For Capital assets procured locally from Pondicherry, VAT credit is available in 36 installments.

With Holding Tax

As per Indian income tax act 1961, for all the sections like 194C (contractors), 194J (Professional services) and 194I
(Rent) tax codes will be created in the system. Tax codes will be created separately for invoice deduction and advance
payment deduction.
In MSTL:
SAP provided standard Indian taxation procedure will be used. MSTL can select the respective tax rates.

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Tax Collected at Source (TCS):

In case of TCS, it will be mapped like TDS and the same will be applicable only for customers.
In MSTL:
SAP provided standard Indian taxation procedure will be used. MSTL can select the respective tax rates.

Service Tax
In MSTL:
SAP provided standard Indian taxation procedure will be used. MSTL can select the respective tax rates.

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Accounts Payable
Vendor Groups
Vendor Group classifies similar type of vendor.
In MSTL:
Vendor Group
Material Vendor Domestic
Material Vendor Foreign
Service Vendor Domestic
Service Vendor Foreign
Government Vendor
Employee Vendor
One Time Vendor
Capital Vendor Domestic
Capital Vendor Imported

Code

From

To

MS01
MS02
MS03
MS04
MS05
MS06
MS07
MS08
MS09

0001000000
0002000000
0003000000
0004000000
0005000000
0006000000
0007000000
0008000000
0009000000

0001999999
0002999999
0003999999
0004999999
0005999999
0006999999
0007999999
0008999999
0009999999

In MSPS: Following Account Groups are being used

Vendor Group

Code

From

To

ES PLANT
ES SUPPLIER
ES - TRAVEL EXPENSES
ES - TRAVEL EXPENSES
One-time vend.(int. no. assgnmt)

E501
E502
E503
E504
ZCPD

0005000000
0005000000
0005000000
0005000000
0005000000

0005999999
0005999999
0005999999
0005999999
0005999999

GAP: SPAIN team is using single number range for all type of vendor accounts. MSTL proposed to have separate
number range for different type of vendor account.

Vendor Reporting
In MSTL: SAP provided standard reports will be used in Phase 1.

Other Account Payable Functionality

In MSTL: SAP provided standard functionalities and/or implemented in MSPS will be used in Phase 1.

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Accounts Receivable
Customer Groups
Customer Group is used to define similar type of Customer.
In MSTL:
Customer Group
Material Customer - Domestic
Material Customer - Foreign
One Time Customer

Code

From

To

MS01
MS02
MS07

0001000000
0002000000
0007000000

0001999999
0002999999
0007999999

In SPAIN: Following Account Groups are being used

Customer Group
One-time cust.(int.no.assgnmt)
FR : EC customer
DE : Local SP
DE : Local SH
DE : Local PY
DE : Local BP
FR : One time customer
FR : Non EC customer

Code

From

To

ZCPD
ZEC1
ZEE1
ZEE2
ZEE3
ZEE4
ZEEC
ZEF1

0001000000
0001000000
0001000000
0001000000
0001000000
0001000000
0001000000
0001000000

0001999999
0001999999
0001999999
0001999999
0001999999
0001999999
0001999999
0001999999

GAP: SPAIN team is using single number range for all type of customer accounts. MSTL proposed to have separate
number range for different type of customer account.

Customer Reporting
In MSTL: SAP provided standard reports will be used in Phase 1.

Other Account Receivable Functionality

In MSTL: SAP provided standard functionalities and/or implemented in MSPS will be used in Phase 1.

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Assets Accounting
Chart of Depreciation
Chart of Depreciation group together the various depreciation areas. Depreciation Area is used to define valuation of fixed
assets for particular purpose. It could be for financial reporting, taxation or for management reporting.
In MSTL:
Chart of Depreciation

Description

Z0ES

Peguform

In MSPS:
Chart of Depreciation

Description

Z0ES

Peguform

GAP: No Gap

Assets Class
Assets Class classify various type of assets.
In MSTL:
Assets Class
MSBD
MSLB
MSPM
MSLP
MSLQ
MSTD
MSEI
MSLE
MSOE
MSFF
MSSW
MSCH
MSVH
MSTH
MSLV
MSCW

Description
Building
Leasehold Building
Plant and Machinery
Leasehold P&M
Lab Equipment
Tools and Dies
Electrical Installations
Leasehold Elect. Instl.
Office Equipment
Furniture and Fittings
Computer Software
Computer Hardware
Vehicles
Intangible Assets
Low value assets
CWIP

In SPAIN:
Assets Class
160200

From
11000
12000
13000
17000
18000
20000
25000
28000
29000
31000
35000
36000
39000
41000
42000
43000

To
11999
12999
16999
17999
19999
24999
27999
28999
30999
34999
35999
38999
40999
41999
42999
44999

Description

From

To

ALL

000000100000

000000149999

GAP: SPAIN team is using single number range for all type of assets accounts. MSTL proposed to have separate number
range for different type of assets account.

Assets Reporting
In MSTL: SAP provided standard reports will be used in phase - 1.

Other Assets Accounting Functionality

In MSTL: SAP provided standard functionalities and/or implemented in MSPS will be used in phase - 1.

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Bank Accounting
House Bank
Following House Banks have been identified.
In MSTL:
House Bank
State Bank of India (SBI)

Ratnakar Bank Ltd

Branch Detail

Type of
Account

ThirubhuvanaiPuducherry
Capital Point - New Delhi

Current

33415683561

Current

409000127502
9120200115498
97

Axis Bank Ltd

Sector 16 - Noida

Ing Vysya Bank Ltd

Connaught Place - New

Delhi

Current
Current

Account Number

503011040196

GAP: No Gap

Other Bank Accounting Functionality

In MSTL: SAP provided standard functionalities and/or implemented in MSPS will be used in phase -1.

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Scope of SAP CO
Following modules are in scope

f.)
g.)
h.)
i.)

Cost Element Accounting

Cost Center Accounting
Product Costing
Profit Center Accounting (Classical Profit Center. New GL functionality is not active)

In General, functionalities/reportss as available in standard SAP and/or implemented by MSPS will be available for
MSTL SAP rollout Phase 1.

MSTL Organization structure

Cost Centers
Cost Center is a unit of organization where cost can be collected and reporting for management decision making.
In MSTL: Cost Center structure were discussed. Attached cost center structure is proposed by MSTL team.

MSTL FICO - Cost

Center Detail.xls

Cost Center Reporting

In MSTL: SAP provided standard reports will be used in phase - 1.

GAP: There is no GAP

Controlling Document Type and Number Range

Document type determines the nature of controlling entry. Number ranges are assigned to the document type.
In MSTL:
SAP standard document type and number range is used.
In SPAIN:
SAP standard document type and number range is used.

Activity Type
Activity Type is used for production planning, plant maintenance and product costing.
In MSTL: Two activity type has been proposed and created.
a.) Machine Time (MC01)
b.) Labour Time (LB01)

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Product Costing
In MSTL: Key business decision for product costing in MSTL.

a.) Inventory valuation

a. Moving Average Price (V) for all type of procurement items including raw material, packaging
material and consumables.
b. Standard Price (S) for all type of Semi-Finished and Finished Goods.
b.) Frequency to calculate standard cost of semi-finish and finish goods can be determined on need basis. It
could be monthly, quarterly, half-year and/or year. However, it is mandatory to run once in a year.
c.) Process Cost calculation sheet
< File has to be completed and return back by business >
d.) Overhead has to be loaded on the material as a percentage of process cost calculated in the attached file.
< File has to be completed and return back by business >
e.) Product cost has to be calculated using the BOM and Routing defined in the system.
f.) Below Cost Component Structure is proposed and used for MSTL.
Cost Component

10
20
30
40
50
60
70
80

Description

Raw Material & Component

Packaging Material
Machine Cost
Labor Cost
Material Handling OH
Indirect Production OH
Administrative OH
Selling & Distribution OH

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Inventory Valuation

Included
Included
Included
Included
Included
Included
Included
Excluded

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