PROJECT REPORT

ON
WORKING WITH SAP-
CHALLENGES & OPPORTUNITIES
AT
RELIANCE COMMUNICATIONS LTD.

SUBMITTED BY:
SUMEDHA SINGH
RD
BBA-3 YEAR
Enrolment no: A7006408107
Specialization: Finance

UNDER THE GUIDANCE OF:

INDUSTRY GUIDE: FACULTY GUIDE:
Mr.ANUPAM KUMAR Dr FATIMA BEENA
Manager Accounts Asst.Prof
Reliance communications ABS, Lucknow

(SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME

BACHELOR IN BUSINESS ADMINISTRATION (2008-11)

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH ,LUCKNOW

RELIANCE
COMMUNICATIONS

2
COMPANY CERTIFICATE

3
 DECLARATION
I hereby declare that the project entitled” WORKING
WITH SAP-CHALLENGES AND OPPORTUNITIES”
under guidance of Faculty Dr. FATIMA BEENA is
submitted for my 5th semester as a part of my Bachelor of
Business Administration

The data collected in this report has been collected from

authentic sources. I also affirm this study is not plagiarized.

Signature:

(SUMEDHA SINGH)

4
 Faculty guide certificate
This is to certify that Miss Sumedha Singh a student of
BBA –V semester batch of 2008-2011 of AMITY
UNIVERSITY (Amity business school) has undergone
project report with us under my guidance. The project titled
Working with SAP-Challenges and opportunities has been
completed by the student to my entire satisfaction.

Signat
ure:
Name: Dr.Fatima Beena
Asst.Prof
Faculty Guide

5
 Student’s certificate

Certified that this report is prepared based on the summer

internship project undertaken by me inRELIANCE

COMMUNICATION. LTD.from 16 JUNE 2010 to 8th

July 2010, under the able guidance ofAsst. Prof Fatima

Beena in partial fulfillment of the requirement for award of

degree of Bachelor of Business Administration (BBA) from

Amity University, Uttar Pradesh.

Date.______________

Signature Signature Signature

Sumedha singh Dr.Fatima Beena Mr.R.P Singh

Student Faculty Guide Director (ABS)

6
 TABLE OF CONTENTS

Page No

Preface
6

Acknowledgement
7

1. Introduction 9-
14
1.1 About the company
1.2 Mission
15

2.Abstract
Working with SAP 16-
25
• ACCOUNTS PAYABLES 26-36
• ACCOUNTS RECEIVABLES 37-47
• Challenges & opportunities 48-52

7
3. Conclusion
53
4. BIBLOGRAPHY
54

Preface

Practical and theory are two aspects of

management education.The practical theory is
the domain of management courses has
received vital information .It exposes to the
potential manager towards actual work
situation and give a student rich insight into
what practically is going on inside the
industries , infact it is the implementation of
theory into practices which is the life force of
management.
There have been considerable changes in the
technology, operation and structure of the
industry into globalization, mergers and new
challenges being imposed by the changing
customer satisfaction levels and multiple
market requirements are forcing industry to
adopt new solutions.

8
 ACKNOWLEDGEMENT
I would like to take this opportunity to
sincerely thank RELIANCE COMMUNICATIONS
for providing me internship in such a reputed
organization.

I would also like to thank my guide Mr. Anupam

kumar who has helped me in every possible
way .I would like to thank him for giving me
invaluable suggestions and guidance without
which my project would have been incomplete.
His contributions extends beyond my project.

I take this opportunity to thank the staff of

RELIANCE COMMUNICATIONS for creating an
extremely informal , responsible and flexible
work enviournment.

Lastly my sincere thanks to my friends,my aunt

Mrs Seema Singh and other members for
constantly helping me in my project.

9
10
INTRODUCTION

ABOUT THE
COMPANY

11
The company RELIANCE COMMUNICATIONS
is the flagship company of the Anil Dhirubhai
ambani group(ADAG) of companies.It is India’s
largest private sector information and
communication company with over 40 million
subscribers.Reliance infocomm is the outcome
of late Shri Dhirubhai Ambani’s dream of
bringing about a digital revolution in India that
will bring to every Indian’s doorstep an
affordable means of information and
communication.
Looking back , looking forward

Reliance – Anil Dhirubhai Ambani Group, an

offshoot of the Reliance group founded by Shri
Dhirubhai H Ambani (1932-2002), ranks among
India’s top three private sector business
houses in terms of net worth. The group has
the business interests that range from
telecommunications to financial services and
the generation and distribution of power.

Reliance – ADA Group’s flagship

company,Reliance communication, is India’s

12
largest private sector information and
communications company, with over 40 million
subscribers.It has established a pan- India, high
capacity,integrated(wireless and
wireline),convergent(voice,data and
video)digital network, to offer services
spanning the entire infocomm value chain.

Other major group companies – Reliance

capital and Reliance energy – are widely
acknowledged as the market leaders in their
respective areas of operation.

13
A DREAM COME TRUE……….
The late Dhirubhai Ambani dream of digital
India – an India where the common man would
have access to affordable means of
information and communication .Dhirubhai,
who single- handedly built India’s largest
private sector company virtually from
scratch,had stated as early as 1999: “Make the
tools of information and communications
available to people at an affordable cost .They
will overcome the handicaps of illiteracy and
lack of mobility.”

It was this belief in mind that Reliance

communications (formely Reliance Infocomm)
started laying 60,000 routes kilometers of pan-
India fibre optic backbone. This backbone was
commissioned on 28 December 2002, the
auspicious occasion of Dhirubhai’s 70th
birthday, though sadly after his unexpected
demise on 6 July 2002.

14
Reliance communications has a reliable, high
capacity,integrated(both wireless and wire line)
and convergent (voice ,data and video) digital
network .It is capable of delivering a range of
services spanning the entire infocomm
(information and communication) value chain ,
including infrastructure and services - for
enterprises as well as individuals, applications
and consulting.

Today, Reliance Communications is

revolutionizing the way India communicates
and networks, truly bringing about a new way
of life.

15
 MISSION

To attain global best practices and become

a world class utility.

 To provide uninterrupted, affordable,

quality, services, reliabile and clean power
to millions of customers.

 To achieve excellence in quality, service,

reliability, safety and customer care.

To earn the trust and confidence of all the

customers and stakeholders.

 To work with vigor, dedication and

innovation towards achieving the ultimate
goal of total customer’s satisfaction.

16
 To be technology driven, financially sound
organization.

 To contribute towards community

devolpment and nation bulding.

ABSTRACT

WORKING WITH SAP-

CHALLENGES AND
OPPORTUNITIES

17
SAP MODULES- OVERVIEW

18
 SALES
&
DISTRIBUTI
ON

MATERIALS
HUMAN
MANAGEME
RESOURCE
NT

SAP

PRODUCT PROJECT
PLANNING SYSTEM

FINANCIAL
ACCOUNTIN
G

CHART OF ACCOUNTS
The chart of accounts –

 Contains the definations of all G/L

accounts in an ordered form.

19
  Each general ledger is set up according
to a chart of accounts.
 Many company codes may use the same
COA.
 All A Grp.organizational units use the
same chart of accounts.

COMPANY CODE

 It is an independent accounting entity.A

company code is assigned to a chart of
accounts.
 Each company code in A group uses the
G/L accounts from only one chart of
accounts for account validation. This is
called the operating chart of accounts.
 A chart of accounts can be used by
multiple companies provided they have the
same basic requirements.

20
 SAP DATA
Types of data in SAP:

 Master
 Transactional
21
  Configuration

KEY CONCEPTS:

COMPANY CODE: Company code has

been used to represent a legal entity as per the
companies act (for which prescribed set of
books and external financial statements-
Balance Sheet, P/L Statement are required).

22
Controlling area: The highest
organizational unit in SAP for which
independent management accounting can be
performed.

FINANCIAL MANAGEMENT
AREA: is an organizational unit within
accounting which structures the business
organization from the perspective f Cash
Budget Management and Funds management.

Business Area : A business area

represents a seprate area of operations or
responsibility within an organization or
strategic business unit.

FISCAL YEAR VARIANT: Fiscal year

represents the financial accounting year for a
company code.Fiscal year variant defines the
relationship between the calendar and fiscal
year.It specifies the number of periods and
special periods in a fiscal year and how the

23
system is to determine the assigned posting
periods.

OPEN ITEM MANAGEMENT: Determines

that opens items are managed for the GL
Codes.

PROFIT CENTER: “Profit Center” is an

organizational unit in controlling that reflects a
management-oriented structure of the
organization for the purpose of internal control.

COST CENTER: Organizational unit within

a controlling area that represents a defined
location of cost occurrence.

INTERNAL ORDER: Internal orders are used

to monitor cost and , in some instances ,
revenues for an organization.Internal orders
are used to-

• Monitor the cost of short-term

measures.
• Monitor the cost and revenues
related to a specific service.
• Monitor ongoing costs

24
CHART OF ACCOUNTS

FINANCIAL ACCOUNTING

25
 1 2 3 4 5

ASSETS EXPENSE REVENUE

LIABILTIES EQUITY ACCOUNTS

9
1 2 4 SECOND-
3 8
MATERIA ARY
CURRENT NON- PRIMARY COST
L REVENUE
FINANCIA OPERATIN INVENTO-
COST ELE-
L G ELEMENT ELEMENT
RY S MENTS
ASSETS COST AND S
AND REVENUE
SHORT
TERM
CAPITAL

TRANSACTION
PROCESSING

SAP R/3 supports the following transactions:

26
Journal (JV) Processing.
• Document principle
• Document structure

Foreign currency documents.

Parked documents.

Posting with refrences.

Reversing/Canceling documents

THE ACCOUNTING DOCUMENTS

He
ader

27
 DOCUMENT NO:123456
DATE:6/5/2008
COMPANY CODE:5200
CURRENCY:US$

Line items

THE DOCUMENT’S HEADER

28
 DATES:
 Document date.
 Posting date
 Transaction date
 Entry date(automatic)
 Period

 Document Type.

 Company Code

 Currency

 Additional information
 Reference.
 Short text

LINE ITEMS

29
 • During documents entry, certain fields
need to be filled in.
For example: when posting expenses, cost
center and tax information is usually
required.

• Tax fields are only ready for entry if the

general ledger account is set up as tax-
relevant.

30
SAP IN ACCOUNTS PAYABLES

Terms related to account payable

Accounting document: An accounting

document is created to record a financial
transaction in the general ledger. Accounting
documents are posted to GL accounts.
Documents can be generated automatically
from the processing of business transaction in
other SAP modules.

Chart of accounts: A structured grouping

of GL accounts to facilitate the reporting of
financial data.The COA represents the highest
level of consolidated reporting of GL account
data.GL accounts of the same nature are
grouped into types of number range.GL
accounts are created within a company and are
duplicated across all companies with COA.

31
CLIENT: A single SAP database.For example,
the devolpment client or integration test client.

COMPANY CODE: The code used to

uniquely identify a company within SAP
company codes are used to group transactions
for the legal entity.

Examples of company codes available in SAP at

Reliance are:

RPTL- Reliance ports and terminals Ltd

RUPL- Reliance utilites and power Ltd.

RCPL- Reliance infocomm Ltd

RICL- Reliance communications &

infrastructures Ltd.

Controlling area: Identifies an independent

organizational element for which costs and
revenues are calculated.Each controlling area
can have one or more company codes assigned
to it.

32
Credit memo: Reduces payables and
recieveables .Vendor credit memos are used to
reduce the amount owing to a vendor due to
the return of goods or because of overcharging
etc.

Down payment: An advance payment for

goods and services .Down payments are shown
separately from other reciveables and payables
on the balance sheet.

INVOICE: A Reliance or vendor document

requesting payment for goods for goods
supplied or service performed.

Invoice verification: A procedure in which

invoices are processed with reference to a
purchase orders.The verification occurs when
the invoice is matched against the respective
purchase order and goods receipt during
document entry.If system tolerances are not
exceeded, the invoice is automatically blocked
for payments until the appropriate issues(s)
have been resolved .If system tolerances are
exceeded, SAP will not allow the invoice to be
posted.

33
Payment run: A periodic process used to
pay all required vendor services. When the run
is executed , SAP identifies and lists all vendor
invoices that are not blocked and due for
payment. Once the run is completed ,the
cheques for the payment are printed.Payment
run can also be used for making payments to
customers against credit notes issued.

Payment terms: Arrangement made with a

business partner concerning payment
settlement of goods or services supplied e.g
payable within 30 days of delivery.

Reconciliation account: A G/L account to

which transactions in the subsidiary ledgers
are automatically updated .Reconciliation
accounts in the general ledger provide the
integrity between modules and ensure correct
ledger postings.

34
Scrolling: Scrolling vendor invoices includes
the receipt, logging and monitoring of invoices
received by Reliance. Vendor invoices are
received at centralized Reliance scrolling
departments .These are logged and
acknowledgement is handed or forwarded to
the vendor .When the invoices are logged in
SAP ,a unique scroll number for each invoice is
generated .This enables the monitoring of the
invoices status through various stages,until
settlement of the invoice.

VENDOR: A business partner who Reliance

owes money for goods or services delivered.

35
Scroll process at reliance

This business process covers the scrolling of

vendor invoices at Reliance sites and
forwarding the same to the respective
Certification of Accounts Payable Department.
Scrolling vendor invoices includes the receipt,
logging and monitoring of invoices received by
Reliance. Vendor invoices are received at
centralized Reliance scrolling departments.
These are logged and acknowledgement is
handed or forwarded to the vendor. When the
invoices are logged in SAP, a unique scroll
number for each invoice is generated.This
enables the monitoring of the invoice is
generated.The enables the monitoring of the
invoice status through various stages,until
settlement of the invoice.

1) Bill processing would be decentralized,

however all the payments would be
centralized expecting those of cash, and
sales tax and inter-connect payments.
2) Decentralized location means “Circle
Offices”.
3) The scrolling process would be carried
on by circle Accounts-Bill passing incharge.
4) Scrolling incoming invoices. This refers to
the process of maintaining a record of all

36
 the invoices received and the objective is
to ensure the status of bill that can be
tracked.

5) This enables a central record of receipt

of a vendor invoice to be kept by Reliance.
6) Generate Acknowledgement slip: This is
generated to pass on the confirmation of
receipt of invoice from vendor.
7) Generate daily scroll list: This list provides
list of scrolled invoices for a particular
period.

37
ACCOUNT PAYABLE-FLOW CHART

38
 INVOICE SCROLLING

INVOICE
PROCESS

TDS RUN

VOUCHER
PRINTING

INVOICE
RELEASE

MANUAL PAYMENT
AUTO PAYMENT

PAYMENT-MANUALLY
PAYMENT-AUTO

ASSIGN MANUAL CHEQUE

PAYMENT VOUCHER PRINTING

BPV/ADVICE PRINTING

PRINT CHEQUE
CHEQUE
PRINTING

39
ACCOUNTS PAYABLE-FLOW CHART(Down
payment)

DOWN PAYMENT REQUEST/RELEASE

F-42/YR02

DOWN PAYMENT
(WITH Ref OF REQUEST)
F-48

PAYMENT VOUCHER PRINTING

YFBP

INV SCROLLING/SCROLL PROCESS

YSCM

TDS-(YTD2)

VOUCHER PRINTING

DOWN PAYMENT CLEARING

ZFA8

BALANCE PAYMENT
F-53/F110

40
 Sap in accounts receivable

AR Overview

Sub Processes
 Master data
 Credit Management
 Invoice Processing
 Cash Receipting/Payments
 Accounts Analysis/Reconcilation
 Periodic Processing
 Reporting

41
FINANCIAL ACCOUNTS MODULES

G
L
AR
S
L
L FI AP

C C
m
T
M AM
&
IM

42
Master data

Maintenance
 Creating 3 levels
 General data(name, address)
 Company data(reconciliation
acct,payment term)
 Sales Data(SO currency,incoterms)
 Change
 Block
 Delete

Account Groups
Intercompany
One-time customers

43
 Master data: structure

Client Customer
GENERAL DATA master
230
• Address
• Control data
• Marketing
Company • Export data
code • Contact persons
9100
A Ltd
COMPANY CODE DATA
 Account management
 Payment Transactions
Sales  Correspondence
organization  Insurance
9100
SALES AREA DATA
 Sales
 Shipping
 Billing document
 Partner functions

44
 Components of a customer master

Customer Master Data contains:

General data

• Does not depend on the company code

or the sales and distribution
organization.
• Applies to one business partner for all
company codes, and in all sales area,
and includes:
 Company name
 Address
 Telephone number
• Data that is unique to a customer, and
shared by all the departments.

45
 COMPONENTS OF C.M 2

Company code data

• Company code data only applies to one
company code (Legal business).This data is
only relevant to Financial Accounting.
• If you edit a master record, you must
specify the customer number and company
code to access the screens containing
company code data.
• You can only invoice a Payer (partner
function) if you have entered the data in
the financial accounting view.

46
 COMPONENTS OF C.M 3

Sales and Distribution data

• The data for one customer can differ
for each sales area. The sales area is
a combination of Sales
organization, Distribution
Channel and Division. Some data
is only relevant to sales and
distribution, and includes:
o Pricing data
o Delivery priority
o Shipping conditions

• If you edit customer master

records, you must enter the
customer number and the
sales area in order to access
screens containing sales and
distribution data.
• You can only process sales
and distribution transactions,
e.g a sales order, after
entering the sales and
distribution data for a
customer.

47
 INVOICE PROCESSING

SAP R/3 supports the following transactions:

Sundry
• Invoice
• Credit/Debit Notes.
• Down Payment
• Bill of exchange Receivable

Parked Documents
Foreign Currency
SD Billing
Inter- company postings

48
CASH RECEIPTING/ PAYMENTS

Business Transactions includes in Process:

CUSTOMER PAYMENTS
 Manual Cheques
 Clear customer accounts
 Post processing transactions

INTER COMPANY PAYMENTS.

 I doc’s

49
Accounts analysis /reconciliation

Business Transactions included in process:

Display Customers account balance and

line items.

Clear outstanding items on customer’s

Post Customer’s documents with clearing

Perform automatically clearing procedures

Reverse documents.

REPORTING
50
SAP system offers a number of reports that
helps analyzing entered business
transactions:
• Open item list.
• Cleared items list.
• Account list
• Account Balance list

Customized Reports.
• Aged open item lists

Report can be:

• Printed out directly to the printer.
• Saved as a local file (txt format, Excel
file etc).
• Sent by e-mail.

51
SAP Opportunities:

1. Integration
Integration can be the highest benefit of them
all. The only real project aim for implementing
ERP is reducing data redundancy and
redundant data entry. If this is set as a goal, to
automate inventory posting to G/L, then it
might be a successful project. Those
companies where integration is not so
important or even dangerous tend to have a
hard time with ERP. ERP does not improve the
individual efficiency of users, so if they expect
it, it will be a big disappointment. ERP improves
the cooperation of users.

2. Efficiency
Generally, ERP software focuses on integration
and tend to not care about the daily needs of
people. I think individual efficiency can suffer
by implementing ERP. the big question with
ERP is whether the benefit of integration and
cooperation can make up for the loss in
personal efficiency or not.

3. Cost reduction

52
It reduces cost only if the company took
accounting and reporting seriously even before
implementation and had put a lot of manual
effort in it. If they didn't care about it, if they
just did some simple accounting to fill
mandatory statements and if internal reporting
did not exists of has not been fincancially-
oriented, then no cost is reduced.

4. Less personnel
Same as above. Less reporting or accounting
personnel, but more sales assistants etc.

5. Accuracy
No. People are accurate, not software. What
ERP does is makes the lives of inaccurate
people or organization a complete hell and
maybe forces them to be accurate (which
means hiring more people or distributing work
better), or it falls.

53
Challenges with SAP:

1. Expensive

This entails software, hardware,

implementation, consultants, training, etc. Or
you can hire a programmer or two as an
employee and only buy business consulting
from an outside source, do all customization
and end-user training inside. That can be cost-
effective.

2. Not very flexible

It depends. SAP can be configured to almost

anything. In Navision one can develop almost
anything in days. Other software may not be
flexible.

54
 CONCLUSION

During this project I fully realized this and

came to know about the procedure and
working in commercial department RELIANCE
COMMUNICATIONS since it involves all the
activites related to FINANCIAL DEPARTMENT,I
am very pleased to know about the working in
this department with SAP
The subject of my study is Working on sap and
what are its challenges and opportunities in
commercial department.I really enjoyed a lot in
studying various challenges of SAPand how to
face the challenges in all the activities.I also
came to know about the various opportunities
of SAP.SAP is really very useful for Reliance as
it woks very smoothly and it creates many
opportunities for Reliance.

BIBLOGRAPHY

55
• http://investing.businessweek.com
/research/stocks/private/snapshot.
asp?privcapId=25538304
• http://www.rcom.co.in/Rcom/perso
nal/home/privacypolicy.html
• http://www.rcom.co.in/Rcom/rworl
d/infotainment/finance_nse.html
• http://www.scribd.com/doc/136409
12/A-Brief-Study-about-reliance-
communication.

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