FI

Combined-Process Harmonization Results- Finance-
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Process Harmonization Results - FI
Index
FINANCIAL ACCOUNTING.................................................................................................................................. 5 FINANCIAL ACCOUNTING MASTER DATA ................................................................................................................ 5 Chart Of Accounts and Master Data/Manual creation ....................................................................................... 5 Subledger Procedure-Accounts Receivable......................................................................................................... 6 Sub ledger Procedure Accounts Payable............................................................................................................ 8 Sub Ledger Procedure Bank Accounting........................................................................................................... 10 Foreign Currencies ........................................................................................................................................... 11 Banks-Bank Directory Manual .......................................................................................................................... 13 Account Groups ................................................................................................................................................. 14 FINANCIAL ACCOUNTING................................................................................................................................ 17 FINANCIAL ACCOUNTING MASTER DATA .............................................................................................................. 17 Screen Layout .................................................................................................................................................... 17 Field Status Group ............................................................................................................................................ 18 Fiscal Year ........................................................................................................................................................ 19 Fiscal Year - Posting Period Variant ............................................................................................................... 20 Tolerances ......................................................................................................................................................... 22 Credit Management ........................................................................................................................................... 23 Texts .................................................................................................................................................................. 24 Dunning Interest and Program.......................................................................................................................... 25 STANDARD POSTING TRANSACTIONS ..................................................................................................................... 26 Fiscal Year Proposal......................................................................................................................................... 26 Document and Line Item Display ...................................................................................................................... 27 Document Type.................................................................................................................................................. 28 Document Number Ranges ................................................................................................................................ 30 Recurring Entries .............................................................................................................................................. 31 Texts keys........................................................................................................................................................... 32 Vendor Bill Of Exchange................................................................................................................................... 33 Special General Ledger Transaction................................................................................................................. 34 Account Assignment Model ............................................................................................................................... 35 Customer Down Payments................................................................................................................................. 36 Vendor Down Payments .................................................................................................................................... 37 Customer Bill Of Exchange ............................................................................................................................... 38 Payment Grouping............................................................................................................................................. 41 Automatic Clearing ........................................................................................................................................... 42 Payment Grouping-Payment programme.......................................................................................................... 43 Asset Accounting Integration............................................................................................................................. 44 Materials Mgt. Purchase Integration ................................................................................................................ 45 Foreign Currency Valuation ............................................................................................................................. 46 Foreign Currency Valuation Level.................................................................................................................... 47 PAYMENTS ............................................................................................................................................................. 48 Reasons forPayment Block ................................................................................................................................ 48 Payment Terms .................................................................................................................................................. 49 Check Management ........................................................................................................................................... 52 Payment advice.................................................................................................................................................. 54 INTEREST CALCULATION ........................................................................................................................................ 55 Overdue Items.................................................................................................................................................... 55 Balance Interest Calculation ............................................................................................................................. 56 Special General Ledger Interest Calculation .................................................................................................... 57 Interest Posting.................................................................................................................................................. 58 Planning ............................................................................................................................................................ 59
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Plan Data Integration with Controlling ............................................................................................................ 60 Correspondence/Financial calendar ................................................................................................................. 61 FINANCIAL ACCOUNTING................................................................................................................................ 62 REPORTS/FINANCIAL ACCOUNTING ....................................................................................................................... 62 Standard Report List, Additional ABAP/4 ......................................................................................................... 62 Ratios................................................................................................................................................................. 63 Migration Financial Accounting ....................................................................................................................... 64 Tax calculation-sales tax other countries.......................................................................................................... 65 Stamp Tax .......................................................................................................................................................... 66 TAX VALUATION AND A/C DETERMINATION............................................................................................ 67 TAX ........................................................................................................................................................................ 67 Withholding Tax ................................................................................................................................................ 67 Taxing-specific VAD Tax rules.......................................................................................................................... 68 REVALUATION........................................................................................................................................................ 69 Price Control..................................................................................................................................................... 69 ACCOUNT DETERMINATION FI/MM....................................................................................................................... 71 Account Determination, Transaction Keys for posting transactions. ................................................................ 71 ACCOUNT DETERMINATION FI/MM....................................................................................................................... 73 Account Determination, Transaction Keys for posting transactions. ................................................................ 73 ACCOUNT DETERMINATION FI/SD......................................................................................................................... 75 Revenue Accounting, Customer Account Group, Materials Account Group..................................................... 75 LOWEST VALUE VALUATION ................................................................................................................................. 78 Valuation Procedure for Balance Sheet Valuation............................................................................................ 78 BANK ACCOUNTING/CASH MANAGEMENT................................................................................................ 82 CASH MANAGEMENT ............................................................................................................................................. 82 Cash Management ............................................................................................................................................. 82 Cash Forecast.................................................................................................................................................... 83 Origin-payment.................................................................................................................................................. 84 Manual Planning ............................................................................................................................................... 85 Account Clearing............................................................................................................................................... 86 Cash Journal ..................................................................................................................................................... 87 Electronic Account Statement............................................................................................................................ 89 Degree Of freedom in cash Forecast................................................................................................................. 91 Complex cash Management............................................................................................................................... 92 Origin ................................................................................................................................................................ 93 Planning Group ................................................................................................................................................. 94 Cheque Deposit ................................................................................................................................................. 95 Electronic Account Statement/Manual .............................................................................................................. 96 ASSET ACCOUNTING .............................................................................................................................................. 98 Limited Base Value............................................................................................................................................ 98 Asset Class....................................................................................................................................................... 100 Default Settings for Asset Class....................................................................................................................... 102 Outline Categories-Asset Number, Sub Number ............................................................................................. 104 Validation Rules .............................................................................................................................................. 105 Default Values ................................................................................................................................................. 106 Long Text Template ......................................................................................................................................... 107 Evaluation Groups........................................................................................................................................... 109 Property Indicator ........................................................................................................................................... 110 ENVIRONMENT AND VALUATION ......................................................................................................................... 111 Unplanned Depreciation. ................................................................................................................................ 111 Insurance Types............................................................................................................................................... 112
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FINANCIAL ACCOUNTING-AA....................................................................................................................... 113 REPORTS/LISTING IN ASSET ACCOUNTING ........................................................................................................... 113 Standard Report List, Additional ABAP/4 ....................................................................................................... 113 Asset Accounting data migration..................................................................................................................... 114 Business Area Assignment Revenues/Expenses. .............................................................................................. 115
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Main Process
Level 1 Sub Process
Financial Accounting
Financial Accounting Master Data
Chart Of Accounts and Master Data/Manual creation
Level 2 Sub Process
Process required for: India: Japan: Scala Countries:
Description: The Chart Of Accounts is a listing of the Account Codes as required by one or more company codes. For each G/L account, the chart of accounts contains the account number, account name, and the information that controls how account functions and how a G/L account is created in a company code. Chart Of Accounts is a 4 digit code and has a description. You need to assign Chart of Accounts to a company code. Menu Path: FinancialAccounting GeneralLedgerAccounting G/LAccounts MasterRecords Preparations Chart Of Accounts.
Results: Chart Of Accounts: It was decided to name the Damstardt chart of accounts as YCCA. The length of the g/l account would be 6 digits. The general ledger accounts within Chart of Accounts (COA) will be created in 2-step procedure: The Chart of accounts view shall be created first for all G/L Accounts in the MDA Chart of Accounts. The company code view shall be created for only the relevant accounts for the respective companies. This would help in not extending certain accounts to certain CMGs for which the account codes are not relevant. Also it will prevent an erroneous posting into an account that need not be used for a particular company code. See annexure:1 Excel sheet for the master data. The master data needs to be prepared by users of the respective countries and submitted for uploading into the R/3 system. Date of Discussion: 14.05.2001 Participants: Japan: E- India: Darmstadt: Singapore: SISL: Mr. Harito, Mr. Mito. Ms. Aruna, Mr. Magar, Mr. Ashwin Mrs. Bettina. Mr. Milind Nerurgaonkar Mr. Abhyuday Rao, Ms. Sharmila
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Main Process Level 1 Sub Process

Level 2 Sub Process
Subledger Procedure-Accounts Receivable
Description: The master record contains data that controls how business transactions are recorded and processed by the system. It also includes all the information about a customer that you need to be able to conduct business. Customer Master Record is divided in three parts: General Data Accounts Data Sales Area Data. General Data is common across company codes. Menu Path: Financial Accounting Accounts Receivable
Master records
Maintain centrally
Create.
Results: The accounting view of the customer master data requires a required field, which is the reconciliation account number. The following customer reconciliation account will be used in the template, which are as per the Darmstadt Chart of Accounts: Trades Receivable 3rd Parties Trades Receivables Group However the reporting requirements in India require classification of receivables as follows: Pharma: Local Exports Chemical: Local Exports Diagnostics ISD The above needs to be available location wise. This would be available through reports from sales and Distribution module See annexure: 2 Excel sheet for the master data.
Date of Discussion: 14.05.2001
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Participants: Japan: E- India: Darmstadt: Singapore: Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Sub ledger Procedure Accounts Payable
Description: The master record contains data that controls how business transactions are recorded and processed by the system. It also includes all the information about a vendor that you need to be able to conduct business. Vendor Master Record is divided in three parts: General data: This is data that applies to every company code and every purchasing organization in your company. General Data is common across company codes. Company code data: This is data that is specific to an individual company code. Company code data includes, for example, the reconciliation account number and payment terms. Purchasing organization data: This is data relevant to the purchasing organization of your company. For example, requests for quotations, purchase orders, and invoice verifications are stored in this section. You need the Materials Management (MM) application component in order to enter this data Menu Path: Accounting Financial Accounting Accounts Payable Master Records Centrally Create. Results: The master data needs to be prepared by users of the respective countries and submitted for uploading into the R/3 system. Only the account data needs to be prepared by the FI-Users. See annexure: 3 Excel sheet for master data. The communications data was discussed with users of Japan. It was decided that Name and Address would be maintained in both the languages- English and Japanese for local vendors of Japan. For import vendors, it is sufficient to maintain the name and address data in English. To meet this requirement, it has been decided that in case of local vendors, the address data in the Basic Data view will be maintained in Japanese language. The name and address in English will be captured in text maintained for correspondence. The vendor reconciliation accounts as applicable to the template are: Accounts Payable Trade, Third Parties Accounts Payable Trade, Group Companies Accounts Payable Trade, Associate Companies (This is applicable for Japan)
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However, information relating to outstanding is required for the following categories of vendors: Local Suppliers Materials Local Suppliers Others Import Vendors Materials Import Vendors Duties Freight Vendors One Time Vendors Employee Vendors FI-Vendors The above would be provided through reporting.
Date of Discussion: 14.05.2001 Participants: Japan: E- India: Darmstadt: Singapore: Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Sub Ledger Procedure Bank Accounting
Description: Each house bank of a company code is represented by a bank ID in the SAP system, every account at a house bank has a G/L account code. In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications are used, for example, for automatic payment transactions. A house bank is in each company code and created for a country. Menu Path: Financial Accounting Bank Accounting Bank Accounts Define House Banks. Results: For domestic banks, the bank number should be entered in the "bank key" field and for foreign banks, enter the SWIFT code in this field. House banks are needed for automatic payment transactions, bank reconciliation. The length of the g/l account would be 6 digits. The bank general ledger account will be coded as follows: First two digits will define that it is a bank account. Next three digits will define the various bank accounts within a bank possibly differentiated by currency. The last one digit deciding the transaction i.e. Transaction for main bank account. Transaction for incoming checks. Transaction for outgoing checks. Transaction for transfers etc. The above would be necessary for Bank Reconciliation. Please also refer Annexure: 5 for Bank Master Template. Date Of Discussion: 23.05.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Foreign Currencies
Description: Exchange Rate Types Exchange rates for different purposes for the same date are defined in the system with help of exchange rate types. E.g. M Standard translation at average rate. G Standard translation at bank buying rate. B Standard conversion at bank selling rate. Exchange Rate Exchange rates are required to be able to: Translate foreign currency amounts when posting or clearing or to check an exchange rate entered manually. Determine the gain and loss from exchange rate differences. Evaluate open items in foreign currency and the foreign currency balance sheet accounts. E.g. Standard translation rates for most of the currencies to USD is maintained M 30.04.1998 100 JPY = 0.78454 USD Menu Path: IMG General Settings Currencies Check Exchange Rate Types. Results: Only the following exchange rate types will be used: Average Rate Bank Buying Rate Bank Selling Rate The conversions for the following currencies need to be maintained for EMIL: USD EURO DEM JPY GBP CHF FRF SGD
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AUD
Apart from the above, the conversion factors need to be maintained for the following currencies for Japan: INR HKD Korean WON
Participants: Japan: India: Darmstadt: Singapore: Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Banks-Bank Directory Manual
Description: The bank directory contains the bank master data. This includes the bank address data and control data, such as the SWIFT code and Bank Groups. The post office bank details should be specially identified. There are two ways to create the bank directory: Automatically Using program RFBVALL_0, you can import a bank directory from an ASCII file into the SAP system. You usually get a national bank directory on a data medium at a banking organization in your country. Manually.
Menu Path: IMG Accounting Financial Accounting Banks Master Data Bank Master Record Transfer Bank Data. Results: The bank master shall be created manually. Date Of Discussion: 15.05.2001
Participants:
Japan: India: Darmstadt: Singapore:
Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
FI Accounting Master Data
Account Groups
Description: The account group determines: the interval in which the account number must be. which fields are required and optional entries when creating and changing master records. which fields are suppressed when creating and changing master data.
Menu Path: General Ledger: IMG Financial Accounting G/L Master Records Preparation Define Account Group. Accounts Receivable: IMG FinancialAccounting FinancialAccountingGlobalSettings AccountsReceivable/Payable Custo merAccounts Master Records Define Account Groups. Accounts Payable: IMG Financial Accounting Global Settings Accounts Accounts Master Records Define Account Groups.
Receivable/Payable Vendor
Results: General Ledger: All the companies within the scope of the EMERALD project shall follow the MDA Chart Of Accounts. Chart Of Accounts being common, it was felt by the team that the account groups as followed by Darmstadt can be followed for the other countries also. The Account Groups are to be received from MDA. Accounts Payable: Account Groups are defined independent of the company code. If vendor masters in both India and Japan are created with the same account group (to which a number range is attached) they will follow one number range. Hence it was decided to create the account groups separately for each country. Vendor Account Groups: The vendor reconciliation accounts as applicable to the template are: Accounts Payable Trade, Third Parties Accounts Payable Trade, Group Companies Accounts Payable Trade, Associate Companies (This is applicable for Japan)
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However, information relating to outstandings are required for the following catgories of vendors: Local Suppliers Materials Local Suppliers Others Import Vendors Materials Import Vendors Duties Freight Vendors One Time Vendors Employee Vendors FI-Vendors It was decided that this information will be provided by creating account groups for the above mentioned categories. Coding logic for the account group: The account group code in SAP can accommodate maximum four characters. It was decided that the logic existing for the codification of company code can be followed for defining account groups also. This means that the first two characters of the account shall represent the country codes alloted for the Asia-Oceania region. This number shall be between 60 and 79. The third character shall be an alpha character representing the number of the company code within a country, for e.g A could mean CMG 1 and B could mean CMG2 within the same country. In cases where there is only one company code in a country, only A will be used as the third character. The last character shall be a running number identifying the category of the vendors. This would have the values as: Category of Vendor Local Suppliers Materials Local Suppliers Others Import Vendors Materials Import Vendors Duties Freight Vendors One Time Vendors Employee Vendor Running Number 1 2 3 4 5 6 7
Thus account group 62A1 could mean local suppliers of materials in company code EMIL, (country India for EMIL assumed as 62, 69A1 could mean local suppliers of materials in company code Singapore, (country Singapore for Singapore assumed as 69, and 69B1 could mean local suppliers of materials in company code Santoku Ltd., (country Singapore for Santoku Ltd. assumed as 69. Thus by the alphabet we distinguish between 2 companies within the same country. Regarding number ranges, it was decided that there shall be a unique number interval for vendors for every CMG. Accounts Receivable: Customer Account Groups: Account Groups are defined independent of the company code. If customer masters in both India and Japan are created with the same account group (to which a number range is attached) they will follow one number range. Hence it was decided to create the account groups separately for each country.
Following account groups will be required for customer:
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Ship-to-party ) Sold-to-party ) country specific number ranges for customers Payer ) Bill-to-party ) Customers-FI One Time customers General-External number range. Excel template for the number ranges is given.
Date of Discussion: 14.05.2001 Participants:
Japan: India: Darmstadt: Singapore: Mrs. Bettina.
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Main Process
Level 1 Sub Process
Screen Layout
Level 2 Sub Process

Description: In this step you determine, depending on the company code, which company coddependent master record fields or document level fields: are ready for input require an entry Are hidden. Menu Path: General Ledger Master: IMG FinancialAccounting GeneralLedgerAccounting G/LAccounts MasterRecord Preparation Additional Activities Define Screen Layout. Receivable/Payable Master: IMG Financial Accounting Accounts Receivable/Payable Master Records Preparations Define Screen Layout Results: The screen layout depends on the field status group (document posting) or account groups (master creation). The field status group chosen is copied from the SAP standard for regional template and the account group has been configured as discussed. Date of Discussion: 14.05.2001 and 25.06.2001 Participants:
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Main Process
Level 1 Sub Process
Level 2 Sub Process Process required for: India: Japan: Scala Countries:
Field Status Group
Description: Field status group controls the status of field during document entry. Field status is attached to the g/l account. It controls whether field is to have either of the following characteristics: Suppress Required Optional. In other words, the field status group determines which fields are ready for input, which are required entry fields, and which are hidden during document entry. Menu Path: IMG Financial Accounting Global Settings Document Line Item Controls Maintain Field Status Variant. Results: Standard field status group was shown and will be used in the template. The standard field status variant shall be adopted initially. The EMIL , Japan, Singapore team shall revert back about the different field status groups that are required before the second session of the workshop. Standard field status variant: 0001 Field status for 0001
Field status group for a field status variant 0001: G001 General (with text, allocation) G003 Material consumption accounts G004 Cost accounts G005 Bank accounts (obligatory value date) G006 Material accounts G007 Asset accts (w/o accumulated depreciation) Date of Discussion: 14.05.2001 Participants: Japan: India: Darmstadt: Singapore: Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Fiscal Year
Description: A fiscal year consists of several posting periods and if necessary, special periods that can be posted to after a temporary year-end closing. One can define the following characteristics for a fiscal year variant: how many posting periods a fiscal year has. how many special periods you need. how the system is to determine the posting periods when posting.
Menu Path: IMG Financial Accounting Financial Accounting Global Settings Fiscal Year Maintain Fiscal Year Variant. Results: The fiscal Year to be used by the respective countries are as follows: EMIL: Calendar year with 4 special posting periods. Japan: Calendar year with 4 special posting periods. Scala Countries: Calendar year with 4 special posting periods. K4- Standard fiscal year variant in R/3. Note: India also has April to March period for tax reporting.
Participants:
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Fiscal Year - Posting Period Variant
Process Required for: India: Japan: Scala Countries: Description: Signifies which periods can be kept open or closed for posting in FI. Thus when a document is to be posted the system checks whether the period specified in the document is open for posting. You can have as many periods simultaneously open for posting as you like.
Variant Acct From Type Account 0001 + 0001 A ---0001 D ---0001 K ---0001 S ----
To Account ZZZZZZZZZZ ZZZZZZZZZZ ZZZZZZZZZZ ZZZZZZZZZZ
From Year To Year From Period Period Period 3 2000 12 2002 13 3 2000 12 2002 13 3 2000 12 2002 13 3 2000 12 2002 13 2 2000 12 2002 13
2000 2000 2000 2000 2000
To Period 16 16 16 16 16
Year 2000 2000 2000 2000 2000
You define which periods are open by specifying two intervals, both of which have an upper and a lower limit. Each of the interval having a posting period and a fiscal year. Specific period can also be kept open for certain accounts. Menu Path: IMG FinancialAccounting FinancialAccounting Global Settings Document Posting Periods Define variants for open posting periods. Results: The requirements of posting transactions in different CMGs being different, posting period variant will be defined for each company code. The posting period variant will have code same as that of the company code. The posting period variant will have account type wise entry in addition to the general entry represented by a + sign. Representatives from all the companies felt that they have a requirement of posting into the future periods but once a period is closed and MIS generated, no adjustments shall be made for the same. Hence, the posting period variant in the template shall be defined with all 12 periods of the year open. As and when the MIS of a particular month is finalized, the month shall be closed for posting.
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Participants: Japan: India: Darmstadt: Singapore: Mrs. Bettina. Mr. Milind Nerurgaonkar
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Level 2 Sub Process
Tolerances
Description: The tolerances are used for dealing with differences in payment and residual items, which can occur during payment settlement. The tolerances are specified under one or more tolerance groups. Allocate a tolerance group to each customer/vendor via the master record. For each tolerance group, following is specified: Tolerances up to which differences in payment are posted automatically to expense or revenue accounts when clearing open items. The handling of the terms of payment for residual items, if they are to be posted during clearing. If the payment difference is immaterial, you can have the system automatically adjust the cash discount or post the difference to a separate gain or loss account. You have to specify the maximum amount of any differences that can be posted in this way by setting amount tolerances and percentage limits. Menu Path: IMG FinancialAcounting AccountsReceivable/Payable BusinessTranscations IncomingPayments Manual Incoming Payments Define Tolerances Results: For the regional template the tolerance group for customer/vendor for payment difference will be: UNI 10 or 1% Gain or Loss whichever is lower. Tolerance for employees has been set same as above for the regional template. For document posting the tolerance for employees is set with the maximum limit and cash discount percentage equaling 5%. Date of Discussion: 04.07.2001 and 15.05.2001 Participants:
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Main Process
Level 1 Sub Process
Financial Accounting Financial Accounting Master Data

Credit Management
Level 2 Sub Process

Description: Refer profile in Sales and Distribution Module. Menu Path: Results: Refer profile in Sales and Distribution Module.
Participants:
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Financial Accounting Master data
Texts
Description: In this step, text IDs for the company coddependent area of a customer master record can be defined. For every text ID, a text can be entered when maintaining the master records. This means that you can store information on the customer in the master record. Menu Path: IMG Financial Accounting Accounts Receivable and Accounts Payable Master Records Preparations for Creating Customer Master Records Accounting Texts (Customers) Results: This could be used for storing any additional data for customers. This will be considered during the roll out. Date of Discussion: As per phase 1. Participants:
Customer Accounts Define Text IDs for
Mr. Harito Ms. Aruna, Mr. Magar,
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Dunning Interest and Program
Description: Sometimes the customers may fall behind on payments. For this a payment reminder or a dunning notice can be sent to remind them of their outstanding debts. The system duns the open items from customer accounts. The dunning program selects the overdue open items, determines the dunning level of the account in question, and creates a dunning notice. Menu Path: IMG Financial Accounting Accounts Receivable Business Transactions Dunning. Results: Dunning as a process is required only for India. This will be configured during the roll out stage. Date Of Discussion: 15.05.2001 Participants:
Mr. Harito. , Mr Krishnan. Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Standard Posting Transactions
Fiscal Year Proposal
Process Required for: India: Japan: Scala Countries:
Description: Same number range can be defined for several fiscal years. After changing fiscal years, the system starts assigning numbers again from the lower limit of the interval. The same document numbers are assigned in each fiscal year, but are uniquely identified by the year specification. If you do not want to have numbers assigned based on each year, a year which lies far into the future, must be specified for example "9999". Menu Path: IMG Financial Accounting Financial Accounting Global Settings Document Document Number Ranges. Results: The document number range will be fiscal year dependent. Please see profile for document number ranges on page:29 Date Of Discussion: 14.05.2001
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Document and Line Item Display
Description: The individual line items from the document can be displayed depending on the various variants defined for line item display. The variants contain the combination of fields, which are to be displayed when the line items for a particular account are to be displayed. Menu Path: IMG Financial Accounting G/L Accounting G/L Accounts Line Items Line Item Display Choose standard line layout. Results: At present only the line layout as per standard SAP will be used. Date Of Discussion: 26.06.2001
Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Document Type
Description: Document types differentiate business transactions and control document filing. Under the document type properties, an individual reverse document type can be assigned to each document type. Number range number is assigned to each document type. Also the account types to which the document can be posted to can be controlled through the document type. Following are the standard document types as defined in the SAP: Accounting Document Customer Payment Customer Credit Memo Vendor Credit Memo Vendor Payment G/L Account Document InvoicBilling Vendor Invoice Menu path: IMG Financial Accounting Global Settings Document Document Header Overview.
Results: The requirements of all the countries with respect to the document types and their number ranges were discussed. It was decided that the standard document types shall be adopted. In addition to the standard document types, new document types shall be created for Cash Receipts and Cash Payments and document reversals. All reversals shall be posted using one document type. The following document types shall be created for the template: Description Doc Type Cash Document CJ Bank Payment KZ Bank Receipt DZ Vendor Invoice (For bills with referenc RE Purchase Orders in the System) Vendor Invoice (For bills without refer KR to Purchase Orders in The System )
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Sales Invoices (From SD) Sales Invoices (In FI) Credit Notes- Purchase Credit NotesSales Assets Depreciation Price Difference Reversal Bank Reconciliation Export Sales Journal Vouchers
RV DR KG DG AA AF PR RX ZR RV SA
Date of Discussion: 14.05.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Harito Ms. Aruna, Mr. Magar, Ashwin Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Document Number Ranges
Description: Number ranges for documents are company coddependent. One must therefore create number ranges for each company code in which the document type is used. The number intervals must not overlap. If year-dependent number ranges are used, the same interval can be specified with the same key several times for different "to- fiscal years" (the limit up to which a number range is still valid). If number ranges which are independent of the to-fiscal year are to be defined, enter 9999 in the to- fiscal year field. Menu Path: IMG Financial Accounting Financial Accounting Global Setting Document Document Number Ranges.
Results: The document number range would be internal for all the above document types and fiscal year dependent. The actual number ranges required would be given by each country. You can have upto a maximum of 10 numbers. Date of Discussion: 14.05.2001
Members Present:
Mr. Harito, Mr. Mito , Mr. Krishnan Mrs. Bettina.
Mr. Abhyuday Rao, Ms Sharmila.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Standard Posting Transaction
Recurring Entries
Description: The recurring entry method is a document entry tool. If you frequently post the same documents with the same data, time can be saved and errors avoided by using this method for document entry. Periodically recurring entries are posted by the recurring entries program based on recurring entry documents. Menu Path: IMG Financial Accountings
Financial Accountings Global Settings Document Recurring Entry.
Results: Japan: The recurring entry data is to be used for monthly provisions. The data for which document will be created will be provided. India: The recurring entry data will be used for rent payments. Date of Discussion: 04.07.2001
Participants:
Mr. Harito Ms. Aruna, Mr. Magar,
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Standard Posting Transaction.
Texts keys
Description: The text, which is to be entered in the document, can be pre configured. In this activity, you can store texts under keys, which can be transferred to the line item. When entering a document, the key is entered in the text field.
Menu Path: IMG Financial Accounting Financial Accounting Global Settings Document Line Items Texts. Results: The default text values are to be received from the respective countries
Date Of Discussion: 05.07.2001
Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Vendor Bill Of Exchange
Description: Bills of exchange are handled as special G/L transactions in the SAP R/3 System. These transactions are thus maintained independently of other transactions in the subsidiary ledger and are posted to a special G/L account in the general ledger. This affords you an overview of bills of exchange payable at any stage. Menu Path: IMG FinancialAccounting BankAccounting Business Transaction Bill Of Exchange Transaction Bill Of Exchange Payable Define alternative Reconciliation Account for Bill Of Exchange. Results: Special g/l transaction W will be configured for this type. The information regarding the drawer and the drawee, due date can be captured in the document itself. On posting the bill of exchange payable the original open item to vendor gets cleared. The volume of such transactions (in Japan) for the year is minimal (approx. 40 transactions). In case of India such transactions are applicable in respect of few parties and the volume is around 7200 Transactions p.a.. The payee who will be primarily the bank should be known after Bills payable is accepted by us. The entries passed are as follows: On Invoice: GR/IR a/c Debit Vendor a/c Credit. Bills Payable Accepted: Vendor a/c Debit Bills Payable a/c Credit On Payment: Bills Payable a/c Bank a/c
Debit Credit
Date of Discussion: 04.7.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao.
Mr. Harito
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Special General Ledger Transaction Customer
Process required for: India: Japan: Scala Countries: Description: Special G/L transactions are special transactions in accounts receivable that are displayed separately in the general ledger and the sub-ledger. This is achieved by posting to alternative reconciliation accounts, instead of posting to the reconciliation accounts for receivables and payables. One character code is defined for every special g/l transaction. Menu Path: IMG Financial Accounting Accounts Receivable Business Transactions Posting with alternative reconciliation account Other special G/L transaction Define Reconciliation accounts for Down Payment. Results: In the standard SAP system following special G/L transactions exist: Acct type Sp.G/L Sp.G/L ind Description D G Guarantee D H Security deposit D P Payment request D Z Interest receivable D E Reserve for Bad Debt Posting to special general ledger transaction requires customer master records to prexist. Following special g/l transaction are required in the respective countries: India Reserve for Bad Debt Security Deposit Bank Guarantee Japan Reserve for Bad Debt Promisory Note
Date of Discussion: 15.05.2001 Participants: Japan: India: Darmstadt: Singapore: Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Account Assignment Model
Description: An account assignment model is a pattern for document entry. It can contain any number of G/L items that may be left incomplete. During the document entry the proposed data could be added or deleted at will. Also equivalence numbers could be assigned to account assignment model. Menu Path: None.
Results: The general ledger account entries for which account assignment model will be used is to be known from the respective users. Date Of Discussion: 04.07.2001 Participants:
Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Customer Down Payments
Description: Special G/L transactions like customer down payments are special transactions in accounts receivable that are displayed separately in the general ledger and the sub-ledger. This is achieved by posting to alternative reconciliation accounts, instead of posting to the reconciliation accounts for receivables and payables. In most of the countries the legal requirements require advances from customers to be shown on the liabilities side of the balance sheet instead of clubbing them along with the customer reconciliation account (shown on the assets side). This requirement can be met through special G/L transactions. One character code is defined for every special g/l transaction.
Menu Path: IMG Accounts Receivable Business Transactions Down Payment Received Define Reconciliation accounts for Down Payment. Results: The requirement for down payments accounting is only for advances received from customer. Down payment requests are not required. Customer Down Payments: India Advance from customer
Japan Advance from customer
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Vendor Down Payments
Description: Special G/L transactions like customer down payments are special transactions in accounts receivable that are displayed separately in the general ledger and the sub-ledger. This is achieved by posting to alternative reconciliation accounts, instead of posting to the reconciliation accounts for receivables and payables. In most of the countries the legal requirements require advances to vendors to be shown on the assets side of the balance sheet instead of clubbing them along with the vendor reconciliation account (shown on the liabilities side). This requirement can be met through special G/L transactions. One character code is defined for every special g/l transaction . E.g. Acct type K K K Sp.G/L Sp.G/L ind Description A Down payment on current assets B Financial assets down payment F Down payment request
Menu Path: IMG Accounts Payable Business Transactions Down Payment Made Define Reconciliation accounts for Down Payment. Results: Vendor Down Payments: India Capital Goods/CWIP Stocks(Raw Mat, Packing Mat) Miscellaneous Adv. Date of Discussion: 15.05.2001 Participants:
Japan Capital Goods/CWIP Stocks Miscellaneous Adv.
Japan: India: Darmstadt: Mrs. Bettina.
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Main Process
Level 1 Sub Process
Customer Bill Of Exchange
Description: Bills of exchange are handled as special G/L transactions in the SAP System. These transactions are thus maintained independently of other transactions in the subsidiary ledger and are posted to a special G/L account in the general ledger. This affords you an overview of bills of exchange receivable and bills of exchange payable at any stage. When posting a bill of exchange receivable, you normally clear open items or post the payment as a payment on account. The system posts a bill of exchange receivable to the customer account and reduces the receivables from goods and services on the reconciliation account. The bill of exchange receivable is also automatically posted to the special G/L account for bills of exchange receivable in the general ledger. If you wish to pass on bills of exchange to a bank, the presentation list required can be created automatically. If you like, you can also arrange for bill of exchange usage to be posted automatically or for posting to be prepared.
Menu Path: IMG FinancialAccounting BankAccounting BusinessTransactions BillOfExchange Transactions Bill Of Exchange Receivable. Results: Japan: The requirement in case of bill of Exchange is for Collection and also for Discounting. The status for Bill of Exchange is also to be known at any time i.e. On hand or Discounted or sent for collection. If sent on collection the customer special g/l account is credited. If discounted the notes discounted liability account will be credited. In general the method of accounting as in SAP R/3 will be followed. India: None. Date of Discussion: 04.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Other Special Vendor G/L Transaction-
Process required for: India: Japan: Scala Countries: Description: Special G/L transactions are special transactions in accounts receivable that are displayed separately in the general ledger and the sub-ledger. This is achieved by posting to alternative reconciliation accounts, instead of posting to the original reconciliation accounts for receivables and payables. One character code is defined for every special g/l transaction. Menu Path: IMG Accounts Payable Business Transactions Posting with alternative reconciliation account Other special G/L transaction Define Reconciliation accounts for Down Payment. Results: In the standard SAP system following special G/L transactions exist: A/C type K K K Sp.G/L Description G Guarantee received H Security deposit P Payment request
Vendor: The requirements of following special g/l transactions exist for the respective countries:
India Employee: Travel Salary Loans to parties(LLM) Deposits to parties Loans to employees Conveyance Vehicle
Japan Employee: Travel Notes payable Rent Deposit for office staff Loans to Employees
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payment Grouping
Description: Wherever possible, the payment program will always group items together for payment. However, you can also specify that an individual payment (a separate payment) is made for a particular item. The payment program can only group together open items for payment if the open items in an account have the same: Currency. Payment method in the item. Bank in the item. Contents of the grouping fields (if a grouping key is specified in the customer or vendor master record). Menu Path: IMG Financial Accounting Accounts Receivable/Payable Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method Payment Groupings. Results: The payments are centralized. The grouping is required only as per due date. Hence the open items from invoices falling due for a vendor as of a particular date will be grouped together for payment. Date Of Discussion: 04.07.2001. Participants: Japan: India: Darmstadt: Singapore: Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Automatic Clearing
Description: You can use the clearing program to clear open items from customer, vendor, and G/L accounts. This program uses predefined criteria to group together open items per account. If the balance of the group of open items equals zero in local, foreign, and where applicable, the parallel currency, the items are marked as cleared. Menu Path: IMG Financial Accounting Accounts Clearing Prepare Automatic Clearing.
Receivable/Payable Business
Transactions Open
Item
Results: The automatic clearing will be used for G/L account: GR/IR clearing, provision for freight, provision for custom duty, provision for open item. The clearing will be done on the basis of the purchase order. The clearing program could also be used for clearing bank sub-accounts. The clearing program will also be configured for customer and vendor open items. The criteria for clearing open items could be Document date, document number, allocation field (ZUONR), reference number. Date of Discussion: 04.07.2001
Participants:
Mr. Harito
Mr. Abhyuday Rao
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payment Grouping-Payment programme
Description: Wherever possible, the payment program will always group items together for payment. However, you can also specify that an individual payment (a separate payment) is made for a particular item. The payment program can only group together open items for payment if the open items in an account have the same: Currency. Payment method in the item. Bank in the item. Contents of the grouping fields (if a grouping key is specified in the customer or vendor master record). Menu Path: IMG Financial Accounting Accounts Receivable/Payable Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method Payment Groupings. Results: The payments are centralized. The grouping is required only as per due date. Hence the open items from invoices falling due for a vendor as of a particular date will be grouped together for payment. Date Of Discussion: 04.07.2001. Participants: Japan: India: Darmstadt: Singapore: Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Standard posting Transactions
Asset Accounting Integration
Description: The integration of Asset Accounting with the FI (Financial Accounting, including Accounts Payable and Accounts Receivable) component makes it possible to carry out Posting of asset acquisitions and retirements that are integrated with accounts payable and accounts receivable Posting of depreciation from Asset accounting to the appropriate general ledger accounts Menu Path: IMG Financial Accounting Asset Accounting.
Results: The Asset integration with FI is required thus resulting in automatic generation of FI accounting documents for posting in Assets module and also for depreciation. Date Of Discussion: 03.07.2001 Participants:
Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Materials Mgt. Purchase Integration
Description: There would be a requirement of MM-FI integration. As a result the goods movements in MM Would automatically create a document posting in FI.
Menu Path: None.
Results: There would be a requirement of MM-FI integration. As a result the goods movements in MM Would automatically create a document posting in FI.
Participants:
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Standard posting Transactions
Foreign Currency Valuation
Description: When making valuations, exchange rate differences may occur. This is the case when an exchange rate revaluation or devaluation takes place before you make your valuation. When you valuate open items or accounts, each program requires certain specifications such as the exchange rate and the procedure with which it is to make the valuation. You use the valuation procedure to determine which valuation procedure is used. You can choose between the lowest value principle, the strict lowest value principle and posting every exchange rate revaluation and devaluation. Menu Path: IMG Financial Accounting General Ledger Accounting Business Transactions Closing Valuating Foreign Currency Valuation.
Results: The procedures to be followed for valuation will be always valuate. Hence all revaluation or devaluationtaking place at the period end will be valuated. The exchange rate for valuation: Description India Japan Imports-Vendors Selling Rate Average Rate Exports-Customers Buying Rate Average Rate Bank Buying Rate Average Rate A separate valuation procedure will be created for vendors, customers and for Bank Balance valuation. Date Of Discussion: 04.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Foreign Currency Valuation Level
Description: The valuation can be done for the foreign currency balance sheet accounts not managed on open items or for balance sheet accounts managed on open items basis. With single valuation, every open line item in an account is valuated. The total difference of all open items in an account is posted to an adjustment account. This retains the original balance in the subledger and reconciliation account. The offsetting entry is made to the accounts for exchange rate gains or losses from valuation. Menu Path: IMG Financial Accounting General Ledger Business Transactions Closing Valuating Foreign Currency Valuation. Results: The valuation will be for both: Accounts managed on open items and Total account Balance Valuation. The exchange rate resulting from the valuation will be posted to the valuation for exchange rate gain/loss accounts. Date Of Discussion: 04.07.2001 Participants:
Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payments
Reasons forPayment Block
Description: By entering the payment block the specific open line items could be excluded from payment run.
Menu Path: IMG FinancialAccounting AccountsReceivable/Payable BusinessTransactions Outgoing Payments Outgoing Payment global settings Payment Block Reasons. Results: The standard reasons for payment block and payment block will be used. The standard blocks are as follows: Indicator Reason Free for payment A Blocked for payment R Invoice verification Date Of Discussion: 04.07.2001 Participants:
Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payments
Payment Terms
01
Description: The most important data defined for terms of payment is the due date of the invoice. Thus terms of payment denotes the date on which invoice falls due. If defined in the customer or vendor master record, the system then defaults the terms of payment. You can overwrite these terms during document entry or change them later once the document is created. Some standard payment terms as maintained in the system are: Payment Terms Description 001 Payable Immediate 002 Within 30 days 2 % cash disc. Within 45 days Due net Within 14 days 3 % cash disc. 004 Within 30 days 1 % cash disc Within 60 days Due net Within 14 days 3 % cash disc The invoices chosen during automatic payment run take into consideration the terms of payment. Menu Path: IMG FinancialAccounting AccountsReceivable/Payable Business Transactions Invoices Maintain Terms of Payment. Results: You can use the same key for the terms of payment for both customers and vendors who have the same payment terms. SAP recommends, however, that you use different terms of payment keys for customers and vendors and limit the permitted account type correspondingly within the terms of payment. This, for example, then has an advantage if the sales department of your company changes a payment term for a customer. The requirements for terms of payment as discussed with Japan are: For Customers: Promissory Notes payment: 30 days 45 days 60 days 90 days 120 days 180 days
For Vendors: Bills from the 20th of one month to the 20th of the next month are paid on the end of the following month. These payments could be by bank transfer, Promissory notes.
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Also payment terms are required as follows: 90 days 60 days 45 days 30 days 15 days The requirements for terms of payment as discussed with India are: Customers: Pharma (local): Immediate Pharma (Outstation) : 21 days Vit-E : 7 DAYS, 30 DAYS. Chemicals: 30 days 45days Cash discount is given in case of one party. One such payment term with cash discount will be configured. Vendors: Immediate 30 days with 2% cash discount if paid within 30 days 45 days 30 days 4% cash discount 45 days 2% cash discount 60 days 1% cash discount. 90 days 120 days 180 days.
Participants:
Japan: India: Darmstadt: Singapore: , Mr Krishnan. Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payments
Payment Terms-standard
Process required for: India: Japan: Scala Countries: Description: The most important data defined for terms of payment is the due date of the invoice. Thus terms of payment denotes the date on which invoice falls due. If defined in the customer or vendor master record, the system then defaults the terms of payment. You can overwrite these terms during document entry or change them later once the document is created. Menu Path: IMG FinancialAccounting AccountsReceivable/Payable Business Transactions Invoices Maintain Terms of Payment. Results: The various payment terms like simple payment terms, multi payment terms as required will be configured in the template as process is harmonized. Please refer page no: 30 for details. Date Of Discussion: 15.05.2001
Participants:
Mr. Harito. , Mr Krishnan. Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payments
Check Management
Description: The check management functionality helps you to manage both prenumbered checks and those checks allocated numbers from your own number ranges. In the Financial Accounting Configuration menu, the check lots (number ranges) must be defined that correspond to the actual check lots (in the printer). The print program uses this number range to link the check with the payment. The void reason codes will be as per the SAP standard. Menu Path: IMG FinancialAccounting Account Receivable and Payable Business Transaction Outgoing Payment Auto. Outgoing Payment Payment Media Check Management.
Results: India: The prenumebred checks will be provided. Hence there would be check lots configured for the respective house banks. The check numbers will be 6 digits. Japan: The check payment is not a method of payment. Date Of Discussion: 04.07.2001
Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payments
Terms of Payment for Holdback & Retainage
Description: If an invoice is paid in installments, you must create several invoice items with the appropriate partial amounts and various due dates when entering the document. You can do this using term of payment key for holdback/retainage payment. Menu Path: IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Define terms of payment for holdback and retainage. Results: Following Hold back and retainage terms exist in the SAP standard system: Payment Terms 0017 0017 0017 0017 R001 R001 R001 Holdback 1 2 3 4 1 2 3 Percent 30.000 40.000 20.000 10.000 40.000 30.000 30.000 Payment Terms 0001 0001 0001 0001 ZR01 ZR02 ZR03
Such requirement exists in both India and Japan. One such payment term will be configured in the common template. Date of Discussion: 15.05.2001 Participants: Japan: India: Darmstadt: Singapore: , Mr Krishnan. Mrs. Bettina.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Payments
Payment advice
Description: Menu Path: None Results: Required by Japan .To be discussed in detail during Roll out along with payment programme Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Interest Calculation
Overdue Items
Description: The interest calculation feature allows you to calculate interest on the overdue customer line items. Interest calculation is controlled by settings made in the interest indicator. Interest is calculated using the debit interest rate defined for the interest indicator The interest calculation process is as follows: First the program identifies the items on which interest is to be calculated according to the rules defined in the interest indicator The program then determines the days for which interest is to be calculated, taking into account the calendar type. After determining the items on which interest is to be calculated, the program works out the amount in local currency, if a minimum amount is specified for the interest indicator, it compares the calculated interest amount with the minimum amount. Menu Path: IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Define interest calculation types. Results: The interest calculation will be used. The interest will be calculated on all cleared items. The rate for interest is different in both the countries. While in Japan it is 7.3% p.a. it is 20% p.a.in India. Grace days will be allowed in Japan for calculating the start date of interest. If the amount remains unpaid after the grace days grace are over the interest gets calculated from due date to the date of payment.In case of India,the mimimum amount for calculation and passing an entry is 100 UNI per Invoice.Further interest calculation on overdue items ,irrespective of the fact,whether it is cleared or not required for Information Interest calculation will not be calculated on advance received from the customer. Date Of Discussion: 01.08.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Harito Ms. Aruna, Mr. Magar
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Mr. Abhyuday Rao.
Main Process
Level 1 Sub Process
Level 2 Sub Process
Balance Interest Calculation
Description: You can calculate interest on the balance of those of your G/L accounts, which are managed with open item display by using the balance interest calculation function in the FI system. This function can be used, for example, to doublcheck the interest calculated on your accounts by the bank. The interest indicator controls interest calculation The following data is stored in the system under the interest indicator: The calendar type used for defining the days due for interest. You can choose between the bank, French, Japanese, and Gregorian calendars Interest rates and conditions Menu Path: IMG General Ledger Accounting Interest Calculation Global Settings. Results: The balance interest calculation will be used for overdraft balances. The value date in the bank statement will be used as the reference date from which interest will be calculated. This will be configured during the roll out. Date Of Discussion: As per Phase I Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Ms. Aruna, Mr. Magar
Business Transactions
Bank Account Interest Calculation
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Special General Calculation Ledger Interest
Description: The interest calculation feature allows you to calculate interest on the overdue customer line items. Interest calculation is controlled by settings made in the interest indicator. Interest is calculated using the debit interest rate defined for the interest indicator The interest calculation process is as follows: First the program identifies the items on which interest is to be calculated according to the rules defined in the interest indicator The program then determines the days for which interest is to be calculated, taking into account the calendar type. After determining the items on which interest is to be calculated, the program works out the amount in local currency, if a minimum amount is specified for the interest indicator, it compares the calculated interest amount with the minimum amount. Menu Path: IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Define interest calculation types. Results: The interest calculation will be used. The interest will be calculated on all cleared items. The rate for interest is different in both the countries. While in Japan it is 7.3% p.a. it is 20% p.a. in India. Grace days will be allowed in Japan for calculating the start date of interest. If the amount remains unpaid after the grace days grace are over the interest gets calculated from due date to the date of payment.
Interest calculation will not be calculated on advance received from the customer.
Date Of Discussion: 01.08.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Interest Posting
Process required for: India: Japan: Scala Countries: Description: There is an option in the system to either calculate interest and post as a separate document or calculate the interest without posting. The interest indicator controls interest calculation. An interest indicator is assigned to the master records of the customer and vendor accounts for whom interest is to be calculated. Menu Path: IMG FinancialAccounting AccountsReceivable/Payable BusinessTransactions Interest Calculation.
Results: The purpose of this discussion was to find out for which countries the requirement exists. The requirement exists only in India where interest is to be calculated. Hence this will be considered during roll out. Date of Discussion: 15.05.2001.
Participants:
Mr. Harito.
Mrs. Bettina
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Closing
Planning
Description: In this you define plan periods and plan versions for Planning in FI financial statement versions. Menu Path: IMG Financial Accounting General Ledger Business Transactions PlanningResults: To be discussed in detail during Roll Out Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Closing
Plan Data Controlling Integration with
Description:
In this activity, you activate integrated planning for a required planning version in G/L Accounting. This enables you to copy planning data from the components Overhead Cost Controlling (CO-OM) or Profitability Analysis (CO-PA) into the required plan version.
Menu Path: IMG Financial Accounting General Ledger Business Transactions Planning->integrated planning. Results: To be dicussed in roll out.At present manual planning in on and Integration planning is off Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Correspondence
Correspondence/Financial calendar
Description:
Menu Path: None Results: To be discussed in detail during India Roll out Date Of Discussion: 02.07.2001 Participants: Japan: India: Ms. Aruna, Mr. Magar
Darmstadt: Singapore: Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Reports/Financial Accounting
Standard Report List, Additional ABAP/4 Lists.
Level 2 Sub Process
Description: Standard reports are available for most of the reports required. These reports will be used. However reports will also be developed through ABAP query, programming, report painter if required. Menu Path: None Results: Following FI relevant reports are required: Cash Flow. Financial Statements as per the foreign reporting and local reporting Standard SAP reports like: Document Journal. Accounts Receivable reports. Account Payable reports Debtors Aging etc. Date of Discussion: 03.08.2001 Participants:
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Level 2 Sub Process
Reports/Financial Accounting
Ratios
Description: The financial ratios can be calculated for the data pertaining to the entire company. This can be done through report painter reports or through programming if required. The data for report comes from the financial statement version, g/l accounts, and calculation formulas given. Menu Path: None Results: Following ratios need to be calculated: Return on capital employed Debtors turnover ratio Stock turnover ratio Current Ratio. Debt equity Ratio,Returns on Networth,EPS Date of Discussion: 03.08.2001 Participants:
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Main Process
Level 1 Sub Process
Financial Accounting Reports Financial Accounting

Migration Financial Accounting
Level 2 Sub Process

Description: The data can be transferred to R/3 using batch input for the following data: G/L Account Master data Accounting documents Bank data Customer data Vendor Data Menu Path: None Results: The data will be transferred to SAP R/3 for all the above data. This will be done during the respective country roll out. Date of Discussion: Participants:
Harito. Aniruddha.
Abhyuday Rao
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Tax
Tax calculation-sales countries tax other
Description:
Menu Path: None Results: To be discussed in detail during Roll Out Date Of Discussion: 02.07.2001 Participants: Japan: India: Ms. Aruna, Mr. Magar
Darmstadt: Singapore: Mr. Abhyuday Rao.
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Level 1 Sub Process
Level 2 Sub Process
Tax
Stamp Tax
Description: Menu Path: None Results: Required by Japan.To be discussed in detail during Roll out Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Ms. Aruna, Mr. Magar
Singapore: Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Tax Valuation and A/C Determination

Tax
Withholding Tax
Process required for: India: Japan: Scala Countries: Description: In some countries, the law provides that invoice recipients must withhold a certain portion of the invoice amount and pay this as withholding tax on behalf of the vendor. Withholding tax amounts are reported to the tax authorities at regular intervals and a statement is also sent to the vendor periodically. Withholding tax code must be specified to enable the tax amount to be calculated. This code is defaulted (retrieved from the vendor master record) when entering a line item if tax must be withheld for the vendor. If a vendor is exempt from withholding tax, it must specified in the master record. The basis of the withholding tax exemption is an exemption certificate, possibly temporary. In the master record of the vendor, the number of this certificate and the date up to which the exemption is valid are specified. If an exemption exists, the system either posts no withholding tax or posts tax at the reduced rate. Menu Path: IMG Financial Accounting Financial Accounting Global Withholding Tax.
Settings Withholding
Tax Extended
Results: The Japan team felt that they withhold tax only in case of payments for Audit fees, Lawyers fees and Royalty. These transactions are very few, some 5 transactions in a year. Furthermore, the vendors invoice itself contains details on the amount to be withheld. Given the above, the Japan team felt that they could manage the withholding tax function manually. In case of Singapore also, the withholding tax is applicable only in case of import bills for services. It was decided that the functionality of withholding tax be configured for India initially. Singapore shall adopt it during the roll out phase. The Withholding Tax certificate is required to be printed from the system only in case of EMIL. This shall be taken up during the roll out phase for India. Date Of Discussion: 21.05.2001 Participants: Japan: India: Darmstadt: Singapore: Ms. Aruna, Mr. Magar, Mr Krishnan. Mrs. Bettina. Mr. Milind Nerurgaonkar
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Level 1 Sub Process
Level 2 Sub Process
Tax
Taxing-specific VAD Tax rules
Description:
Menu Path: None Results: To be discussed in detail during Roll Out.
Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Ms. Aruna, Mr. Magar
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Level 1 Sub Process
Level 2 Sub Process

Revaluation
Price Control
Description: The stock valuation is determined as per the price control in the material master. The price control could be either standard price or moving average price. The method of moving average price calculates a new price after every goods receipt where P.O. rate is different from the rate as per the material master or on invoice receipt where the invoice rate is different than that booked at the time of goods receipt. The valuation of goods movement at standard price control uses a price that is constant for a period. Depending on a companys requirement this period can be defined as a time interval which has to be at least a month. Differences between standard prices and actual prices are not adjusted to material stock account but posted as price difference .
Menu Path: None The price control is maintained in the accounting view 1 screen of the material master. Results: The advantages and disadvantages of adopting the moving average price and standard price were explained to the team members. Based on discussions, it was decided that the price control for stocks would be different for different material types. For E. India: Raw Material: Moving Average Price. Intermediate Goods: Standard Price. Finished Goods (Manufactured): Standard Price. Finished Goods (Traded): Moving Average Price. For Japan: Raw Material: Moving Average Price. Intermediate Goods: Standard Price. Finished Goods (Manufactured): Standard Price. Finished Goods (Traded): Moving Average Price. For Singapore and all companies which use Scala currently: Raw Material: Moving Average Price. Intermediate Goods: Standard Price. Finished Goods (Manufactured): Standard Price. Finished Goods (Traded): Moving Average Price.
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The moving average gets adjusted either on a new goods receipt (where P.O. rate is different from the rate as per the material master rate) or on invoice posting where the rate is different than that booked at the time of goods receipt. However the adjustment to the moving average price at the invoice entry only takes place if there is a sufficient stock existing at that point. In case of insufficient stock at the time of invoice receipt i.e. there is not enough of stock or no stock to adjust the rate variation between the invoice and goods receipt, this difference is posted as price difference. In case of standard price control, the difference if any between the rate as maintained in the material master and that when goods receipt is done for finished goods from the production order is always posted to price difference. For all months in the fiscal year the manufactured goods are maintained at the standard price. At the period-end this finished goods stock may require to be revaluated at the actual cost for stock valuation as per the accounting requirements.
Participants: Japan: India: Darmstadt: Singapore: Mr. Harito , Mr Krishnan. Mrs. Bettina Mr. Milind Nerurgaonkar
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Account Determination FI/MM
Account Determination, Transaction Keys for posting transactions.
Process required for: India: Japan: Scala Countries: Description: The account determination (G/L Codes) during MM-FI document postings takes place automatically via the following data: Plant Company Code Chart Of Accounts Material Type Valuation Class Movement Type Internal Processing Key A material is created for a plant. The plant is attached to the company code, which is attached to the Chart Of Accounts. Hence when a user enters a company code or a plant when entering a transaction the R/3 system determines the Chart of Accounts which is valid for company code. The material type against which the material is created controls the valuation class in the accounting view of the material master. Thus if a material is created for material type ROH (Raw Material) the valuation class for raw material say 3000 or 3001 is allowed for entry in the valuation class field. The G/L ledger code is attached to a valuation class. Thus if you want to post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods though user enters the same transaction (i.e. goods receipt) the system will choose the appropriate account code for raw material stock account if material is differentiated through valuation class. The movement type determines the internal account key, which is to be used. Menu Path: IMG Material Management Valuation and Account Assignment Account Determination Configure Automatic postings. Results: The following valuation classes have been noted in the workshop: India: Material Type Raw Material Spare Parts SemiFinished Goods Finished Goods F.G.-Manufg. Trading F.G Operating Supplies Valuation Class Local Import Local Import Manufg. Local Samples Local Import Local Import
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Packing Material
Local Import
Japan: Raw Material Spare Parts Finished Goods Traded Goods Operating Supply Packing Mat Local & Imported Local & Imported Local Local & Import Local & Import Local & Import
Following general ledger account codes are taken for both India and Japan: Accounts for stock- BSX Raw Material and Packing Material. Spare Parts Finished Goods Trading (F.G.) Operating Supplies Provision on Goods Receipt/ Invoice Receipt: WRX GR/IR clearing account Offsetting Entry: GBB Goods Receipt to stock from production order Consumption Price Difference: PRD Price Difference is segregated for Raw Material Packaging Finished Goods Revaluation:UMB Loss/Gain from Revaluation. Cost Of Goods Sold
Date of Discussion: 23.05.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao, Mr. Raut Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Account Determination FI/MM
Account Determination, Transaction Keys for posting transactions.
Process required for: India: Japan: Scala Countries: Description: The account determination (G/L Codes) during MM-FI document postings takes place automatically via the following data: Plant Company Code Chart Of Accounts Material Type Valuation Class Movement Type Internal Processing Key A material is created for a plant. The plant is attached to the company code, which is attached to the Chart Of Accounts. Hence when a user enters a company code or a plant when entering a transaction the R/3 system determines the Chart of Accounts which is valid for company code. The material type against which the material is created controls the valuation class in the accounting view of the material master. Thus if a material is created for material type ROH (Raw Material) the valuation class for raw material say 3000 or 3001 is allowed for entry in the valuation class field. The G/L ledger code is attached to a valuation class. Thus if you want to post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods though user enters the same transaction (i.e. goods receipt) the system will choose the appropriate account code for raw material stock account if material is differentiated through valuation class. The movement type determines the internal account key, which is to be used. Menu Path: IMG Material Management Valuation and Account Assignment Account Determination Configure Automatic postings. Results: The following valuation classes have been noted in the workshop: India: Material Type Raw Material Spare Parts SemiFinished Goods Finished Goods F.G.-Manufg. Trading F.G Operating Supplies Valuation Class Local Import Local Import Manufg. Local Samples Local Import Local Import
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Packing Material
Local Import
Japan: Raw Material Spare Parts Finished Goods Traded Goods Operating Supply Packing Mat Local & Imported Local & Imported Local Local & Import Local & Import Local & Import
Following general ledger account codes are taken for both India and Japan: Accounts for stock- BSX Raw Material and Packing Material. Spare Parts Finished Goods Trading (F.G.) Operating Supplies Provision on Goods Receipt/ Invoice Receipt: WRX GR/IR clearing account Offsetting Entry: GBB Goods Receipt to stock from production order Consumption Price Difference: PRD Price Difference is segregated for Raw Material Packaging Finished Goods Revaluation:UMB Loss/Gain from Revaluation. Cost Of Goods Sold
Date of Discussion: 23.05.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao, Mr. Raut Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Account Determination FI/SD
Revenue Accounting, Customer Account Group, Materials Account Group.
Process required for: India: Japan: Scala Countries: Description: System can be set so that account determination is dependent upon the following master data fields: Account group for material in the material master record Account group for customer in the customer master record
Reasonable subdivisions of materials can, for example, be: Revenues for services Revenues for packaging Revenues for finished products Revenues for trading goods
Reasonable subdivisions for customers can, for example, be: Revenues for foreign customers at home Revenues for foreign customers abroad Revenues for affiliated companies
You can select the following criteria for an account determination Condition type Chart of accounts Account group customer Account group material Account key Sales organization
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Distribution channel
G/L accounts are to be allocated for revenue account determination. Allocation is to be made for every access sequence you have defined beforehand. E.g. for access sequence: chart of accounts/sales organization/account group-customer/account group-material/account key chart of accounts/sales org./account keys
Menu Path: IMG Sales and Distribution Basic Functions Account Assignment Assign G/L Accounts.
Results: The G/L accounts to be assigned for sales revenue are as per the Darmstadt Chart of Accounts. Following G/L accounts have been determined in both countries:
Domestic, Export, Affiliated Commission, Credit Notes Trade Discount Cash Discount Returns Freight Recovery & Insurance Consumption Tax Debit Memo (Rate Difference) *Free Goods Issue Replacement Bonus
Sales Revenue a/c Debit To Sales Sales Revenue a/c Cash Discount a/c -India Sales Returns Freight and Insurance Tax account Sales Account Sales Promotion Special Cost of Sales Sales Promotion
*The material code for material to be issued either as bonus item or as normal sale is the same. Goods issue is normally debited to Cost of Goods Sold. However the requirement for India, Japan and Singapore is that the goods issue for Bonus items should be accounted as Sales promotion. These has to be grouped under material consumption in the Financial Statement version local reporting. The sales distinction as under would be met through reporting: Domestic: Manufactured Traded Export: Traded Manufactured
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Participants: Japan: India: Darmstadt: Singapore: Mr. Milind Nerurgaonkar Mr. Abhyuday Rao, Mr. Namjoshi, Mr. Ananth Narayan Mr. Harito, Mr. Morakami. Ms. Aruna, Mr. Magar, Mr. Vishwanathan, Mr. Karve
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Tax Valuation and Account Determination

Lowest Value Valuation
Valuation Procedure for Balance Sheet Valuation
Description: SAP R/3 supports the following methods for year-end valuation: Valuation according to lowest value principle LIFO valuation FIFO valuation Under the lowest value principle, the lower of two possible valuation rates is determined for year-end stock valuation. In the LIFO valuation, the last-in first-out principle is used. The year end stocks represent the earliest purchases In the FIFO valuation, the first-in first-out principle is used. With this method, the oldest stocks of a material are considered to be the first ones used. The year-end value of the stock is therefore calculated based on the most recent stock received. Menu Path: IMG Logistics Value. Results: All the methods of year-end stock valuation was explained to the team. All the countries required the period end valuation of stock on the lower of cost or market price. For capturing the market price, it was decided that the Commercial Price 1 field in the material master shall be used. The team required only a report with the stock adjustment value calculated. This is because the system adjusts the individual material MAP/Standard price on revaluation & this becomes the new price for valuation. This automatic revaluation material wise is not desired by the team. The posting for the differential, if any, shall be done manually As a part of the Live Toolkit Workshop, the EMIL team required stock valuation on the basis of the FIFO principle. It was later decided by EMIL that they do not require to valuate their stock on FIFO basis henceforth. This is because, the EMIL team required that all materials be valuated on FIFO basis. In case of manufactured items, the requirement was that the material consumption component in the finished goods be revaluated on FIFO and a FIFO price calculated for the finished goods. However in SAP revaluation can be done only for existing stock and not for consumed stock. Hence FIFO in real sense was possible only for procured item and not for mfg. Item. The difficulties and limitations of the SAP system to do the same was explained to the team. So the team decided that they shall not go for any FIFO valuation and necessary notes shall be provided in their Balance Sheet in the first year of change in the valuation method. . Materials Management Valuation Balance Sheet Valuation Determine Lowest
Date of discussion:
21.05.2001.
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Participants: Japan: India: Darmstadt: Singapore: Mr. Milind Nerurgaonkar Mr. Harito Mr. Krishnan, Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Tax Valuation and Account Determination

Revaluation
Price Control
Description: Please Refer page: 37 for details. Menu Path: None.
Results: The process of valuating the Finished Goods manufactured stocks at the standard price which was earlier unique only to Singapore has now been harmonized and will be applicable for India and Japan as well. Date of Discussion: 18.05.2001 Participants: Japan: India: Darmstadt: Singapore:
Mr. Harito. , Mr. Krishnan. Mrs. Bettina. Mr. Milind Nerurgaonkar
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Main Process
Level 1 Sub Process
Level 2 Sub Process Process required for: India: Japan: Scala Countries: Description:
Bank Accounting/Cash Management

Cash Management
Cash Management
The functionality of cash management provides two reports: Cash Position. Liquidity Forecast. The cash position report denotes the bank and cash position of a particular day. Cash management position allows you to see what your bank account activity was on any given date as well as predict the cash balance on any given date based on planned bank and payment transactions. The cash management position summarizes planning levels for the bank account and cash accounts. The planning levels are attached to the general ledger account. Menu Path: IMG Treasury Cash Management Tools Prepare Production start up and data set up Results: The cash management as functionality, is required to know the cash position of the company as of a particular date. The break up in the cash position report is possible through planning levels. Following planning levels will be configured: Incoming Transfer. Outgoing transfer. Incoming Check. Outgoing Checks. Others. Cash. Date of Discussion: 27.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Mr. Harito. Ms. Aruna, Mr. Magar.
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Cash Management
Cash Forecast
Description: The liquidity forecast allows you to predict future cash inflow and outflows. A/P transactions e.g. Invoices that become due, commitments due to purchase orders, purchase requisitions are shown separately. A/R invoices that are expected to be paid, and sales orders are also shown separately This allows you to see expected net cash inflow or outflow on any given date in the future. Cash management position allows you to see what your bank account activity was on any given date as well as predict the cash balance on any given date based on planned bank and payment transactions. The net cash flow on any given day can also be predicted by combining the liquidity forecast and cash management position. Menu Path: None. Results: This functionality will be required. For this cash management will be activated. The cash forecast will be displayed planning level wise. The planning level can get drilled down to planning groups. Thus customers or vendors can be displayed as per the characteristics like risk or category. Date of Discussion: 01.08.2001 Participants:
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Cash Management
Origin-payment
Description: The source symbols are defined in this step. These symbols are allocated either to the cash position or the liquidity forecast. Through this the appropriate planning levels or the planning groups are shown correctly under the liquidity forecast or the cash position report. The main purpose of source symbols is to define the module from which the underlying transaction originated. The source symbols are also allocated to the MM and SD modules. Through this the Purchase order commitments or sales order commitment are shown correctly in the report as commitment. Menu Path: IMG Treasury Results: The standard source symbols as follows will be used: Source Description BNK Bank accounting MMF Materials Management PSK Subledger accounting SDF Sales and Distribution Date of Discussion: 04.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao
Cash Management Basic Settings Source Symbol.
Mr. Harito
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Main Process
Level 1 Sub Process

Cash Management
Manual Planning
Description: Manual planning enables you to enter the memo records. The memo records require the planning type. The planning type is allocated to the planning level. The manual planning records are shown in the report. The memo record does not update any FI transactions. Menu Path: IMG Treasury Cash Management Results: The memo records will be used for Fixed Deposits liability, Debentures redemption, Loan installment etc. The repayment amount of the period (in future) can be shown in the report by creating a memo record. Date of Discussion: 27.08.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao Mr. Harito Ms. Aruna, Mr. Magar Structuring Manual Planning
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Main Process
Level 1 Sub Process
Bank Accounting/ Cash Management.

Cash Management.
Account Clearing.
Description: In this step, you maintain the minimum balance for each bank account in regard to cash concentration. A report is to be run which suggests the amount above the minimum balance entered. This can be done per cash account grouping name configured. Menu Path: IMG->Treasury Business Transactions Minimum Balance Results: The cash-grouping name can be entered for the main bank and clearing accounts. Thus cash concentration for the banks will be known. Date of Discussion: 27.08.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao Mr. Harito Ms. Aruna, Mr. Magar
Cash Concentration
Define Intermediate Account and
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Bank Accounting, Cash Management

Cash Management
Cash Journal
Description: The cash journal is a subledger of Bank Accounting. It is used to manage a company's cash transactions. The system automatically calculates and displays the opening and closing balances, and the receipts and payments totals. You can run several cash journals for each company code. Postings to G/L accounts, as well as vendor and customer accounts can also be carried out. The system offers you the following options: Entering, saving, and posting cash journal entries Displaying follow-on documents You can also display the follow-on documents (FI documents) arising for the cash journal entries posted. Defining cash journal business transactions (transactions that would take place for cash payments and cash receipts). Printing the cash journal Cash journal document types can be created separately for general ledger transactions, vendor transactions Receipts, vendor transactions Payments, customer transactions receipts and customer transaction for payments.
Menu Path: IMG Financial accounting Bank Accounting Business Transactions Cash Journal
Results: The cash box is located at the different locations of the company. Each of these is to be monitored separately. Hence a separate cash journal will be created location wise. Cash Journal transactions like: Cash Transfer from Bank Cash Transfer to Bank Cash Sale Cash Purchase etc. need to be created. Such business transactions for the respective companies needs to be given by the respective users. The cash journal shows the on line position of cash on posting of transaction. Any advance payment made to an employee cannot be routed through special g/l account as with the case of other advances but will be directly debited as advance to employee without special g/l indicator.
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Participants: Japan: India: Darmstadt: Singapore: Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Bank Accounting /Cash Management
Electronic Account Statement
Description: For electronic bank statement to be configured the external transactions as in the bank statement are required. External transactions (also known as business transaction codes) are bank-specific codes for business transactions, each of which involves a different type of payment. The external transaction code is issued by banks in the electronic bank statement. It converts the bankdefined codes into its own system-internal transaction codes (known as posting rules), which in turn trigger certain specific posting transactions in the system. Menu Path: IMG FinancialAccounting BankAccounting Business Transaction Payment Transacion Electronic Statement/Manual Bank statement. Results: Japan: The transactions for the bank statement are to be received. India: The transactions for the bank statement are as follows: Direct Debits Direct Credits Check Payments Check Deposits Fund Transfer. The G/L account for the bank sub accounts are as per the CMG chart of Accounts. These accounts are differentiated for each house bank on the basis of transactions i.e.: Main Bank Account Incoming Checks Account Outgoing Checks Account Transfer-Domestic Transfer-Foreign Bank Collection Notes Deposit Cash Receipt Date Of Discussion: 04.07.2001
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Cash Management
Degree Of freedom in cash Forecast.
Description: Suggests whether additional planning groups would be required for liquidity forecast.
Menu Path: IMG->Treasury Groups. Results:
Cash Management
Master Data
Subledger Accounts
Define Planning
Planning groups can be created any time. At present only planning groups as discussed in the workshop will be created.
Date of Discussion: 03.08.2001.
Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao Mr. Harito
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Cash Management
Complex cash Management.
Description: Suggests whether additional planning groups would be required for liquidity forecast.
Menu Path: IMG->Treasury Groups. Results:
Cash Management
Master Data
Subledger Accounts
Define Planning
Planning groups can be created any time. At present only planning groups as discussed in the workshop will be created.
Date of Discussion: 03.08.2001.
Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao Mr. Harito
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Cash Management
Origin
Description: The source symbols are defined in this step. These symbols are allocated either to the cash position or the liquidity forecast. Through this the appropriate planning levels or the planning groups are shown correctly under the liquidity forecast or the cash position report. The main purpose of source symbols is to define the module from which the underlying transaction originated. The source symbols are also allocated to the MM and SD modules. Through this the Purchase order commitments or sales order commitment are shown correctly in the report as commitment. Menu Path: IMG Treasury Results: The standard source symbols as follows will be used: Source Description BNK Bank accounting MMF Materials Management PSK Subledger accounting SDF Sales and Distribution Date of Discussion: 04.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao
Cash Management Basic Settings Define Source Symbols.
Mr. Harito
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Main Process
Level 1 Sub Process
Level 2 Sub Process

Cash Management
Planning Group
Process required for: India: Japan: Scala Countries: Description: In this step, the planning groups for customers and vendors is defined. Planning group are used to segregate customers and vendors into different groups. A planning group represents particular characteristics, behaviors or risks of the customer or vendor group. Planning groups are a level below the planning level. Thus the liquidity forecast can be displayed for a particular group of the vendor or customer in the liquidity forecast report itself. Menu Path: IMG->Treasury Cash Management Master Data Subledger accounts Define planning groups. Results: The planning groups are defined as follows: Customers: Exports Domestic Others Vendors: Imports Bills Payable. Domestic. Date of Discussion: 03.08.2001
Participants:
Mr. Harito
Mr. Abhyuday Rao
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Main Process
Level 1 Sub Process
Level 2 Sub Process Process required for: India: Japan: Scala Countries: Description:

Bank accounting
Cheque Deposit
Various functions regarding entries of Cheque Deposit for Bank Reconciliation are done her -Create keys for posting Rules -Assign Business Transactions -Define posting rules for check deposit -Definer variant for Check Deposit Menu Path: IMG Fincial accounting Bank Accounting Business Transactions Cheque Deposit. Results: Various settings done as per requirement Date of Discussion: 27.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Ms. Aruna, Mr. Magar.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Bank Accounting /Cash Management
Electronic Account Statement/Manual
Description: For electronic bank statement to be configured the external transactions as in the bank statement are required. External transactions (also known as business transaction codes) are bank-specific codes for business transactions, each of which involves a different type of payment. The external transaction code is issued by banks in the electronic bank statement. It converts the bankdefined codes into its own system-internal transaction codes (known as posting rules), which in turn trigger certain specific posting transactions in the system. Menu Path:
IMG FinancialAccounting BankAccounting BusinessTransaction Payment Transacion Electronic Statement/Manual Bank statement.
Results: Japan: The transactions for the bank statement are to be received. India: The transactions for the bank statement are as follows: Direct Debits Direct Credits Check Payments Check Deposits Fund Transfer. The G/L account for the bank sub accounts are as per the CMG chart of Accounts. These accounts are differentiated for each house bank on the basis of transactions i.e.: Main Bank Account Incoming Checks Account Outgoing Checks Account Transfer-Domestic Transfer-Foreign Bank Collection Notes Deposit Cash Receipt Date Of Discussion: 04.07.2001
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Financial Accounting-AA
Asset Accounting
Limited Base Value
Description: The base value for depreciation is closely linked to the selection of the depreciation calculation method. The following base values are defined in the system: Acquisition value Acquisition value less unplanned depreciation Half of acquisition value Replacement value Half of replacement value Current net book value without special depreciation Average net book value Average net book value without special depreciation Current net book value Accumulated ordinary depreciation Accumulated special depreciation Sum of accumulated ordinary and special depreciation Limited base value (see below) Your own base value based on a customer enhancement By entering a percentage rate, the base value for depreciation can be reduced. For example, entering 50.000 results in the base value being reduced by half. This reducing percentage rate can be entered in the level definition of the multi-level method. Limited Base Value A maximum acquisition value can be entered as a base value for the calculation of depreciation. You can enter this limited acquisition value, like all other base values, as a key (05) in the definition of the multi-level method. Limited acquisition value means that the system uses a given maximum amount as the base value. If the actual acquisition value of the asset is smaller than the maximum amount, then the system uses the actual acquisition value as the basis for depreciation. If the acquisition value of the asset is above this maximum value, the system depreciates from the maximum value that was set. Menu Path: IMG Financial Accounting Asset Accounting Depreciation Valuation Key Calculation Method Define Multi-level method.
Methods Depreciation
Results:
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The base value to be selected for Japan would be Acquisition value but with 10% being entered in the reduction field in the multi-level method. This is because the depreciation, which is on useful life, is calculated on the 90% of the original cost. For India the base value for depreciation will be the acquisition cost. Date Of Discussion: 03.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Master Data- Asset Accounting
Asset Class
Description: The asset classes can be used to structure the assets according to the requirements. Asset classes apply in all company codes. The asset class controls the following: Default values to all asset master records in the class. The screen layout, field characteristics (required/optional/suppressed) of the asset master record can be set for the asset class. The asset class can control the assignment of asset numbers. The asset class is a selection criterion in all-standard reports in Asset Accounting. Menu Path: IMG Financial Accounting Asset Accounting Organization Structures Asset Classes Define Asset classes. Results: The following asset class will be defined: India Freehold Land Leasehold Land Buildings Japan
Plant & Machinery Computers Furniture, Fixtures, Office Equipment Vehicles CWIP Intangible Asset Software
Buildings Annexures Structures Plant & Machinery Leased Assets Equipment Vehicles CWIP Intangible Asset
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Master Data Asset Accounting
Default Settings for Asset Class
Description: The default settings for asset class are as follows: Account Determination: The key of an account determination must be stored in the asset class. In this way, the account determination links an asset master record to the general ledger accounts to be posted for an accounting transaction using the asset class. Screen Layout: The screen layout specifies the status of the fields in the asset master record. The screen layout is used to determine if fields are required entry or optional entry fields, or if they are suppressed completely Number Range Interval: In the asset class, you can specify the number range for the assignment of numbers for that asset class.
Menu Path: IMG Financial Accounting Asset Accounting Organisational structure Asset Classes.
Results: Account Determination: The G/L accounts to be used will be as per the CMG Chart of Accounts. Screen Layout: Description Description Asset No Manage Historically Cost Center Plant Location Evaluation Insurance Insurance Co. Insurance No Start Date Req. x x x x x x x x x x Optional x Not Req.
Number Range: The number range is company code specific and will be internal. The number range will be copied from SAP standard for the regional template. Date Of Discussion: 03.07.2001
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Outline Categories-Asset Number, Sub Number
Description: Asset Main Number: The asset main number has 12 alphanumeric characters. Asset class controls number assignment. By specifying a defined number range, the external or internal number range can be chosen. Several asset classes can use the same number range. Asset Sub-Number: The asset sub-number has 4 numeric characters. The number ranges need not be defined for sub assignment. In the asset class it is to be defined whether the asset sub number is to be external or internal. In case of internal assignment the sub-number are assigned consecutively per main number starting with 0000. In case of external number you can use your own method for assigning numbers. Menu Path: IMG Financial Accounting Asset Accounting Organisational Structures Asset Class.
Results: Asset Main Number: The number range assignment will be internal and per asset class. The number range is defined per company code. Asset Sub-Number: Internal number range is chosen. Date Of Discussion: 03.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Asset Accounting Master Data
Validation Rules
Description: The validation rules are used for validating the data entered by the user while creating the asset master. The system can issue either a warning or error after validating, if data entered is wrong. These customized check rules supplement the standard check rules. A validation condition consists of the following: Company code Specification of the point in time for the check Validation rule A validation rule consists essentially of the following elements: Check rule, that cannot be broken (such as depreciation key is GWG1 or GWG2) Number of the error message that the system should produce if the check rule is violated
Menu Path: IMG Asset Accounting Results:
Master Data
Define Validation.
Both Japan and India will require the validation. The check rule will be for the depreciation key that will be used in a particular asset master record. If the depreciation key should not be used in the particular master record belonging to the asset class a warning message should be given by the system suggesting a change in the depreciation key. Date Of Discussion: 04.07.2001 Participants:
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Default Values
Description: The default values in the asset master per asset class could be as follows: Insurance Values Net Worth Tax Depreciation Parameter Leasing By maintaining the layout in the asset class it is possible to activate or switch off the above parameters. The fields can be supplied with default values by the respective asset class or maintained directly. Menu Path: IMG Financial Accounting Asset Accounting Special Valuation.
Results: The default values cannot be entered in the asset class, as the asset class is independent of the company code. These default values will be filled in manually at the time of creation of asset master. Date Of Discussion: 04.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Mr. Harito Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Long Text Template
Description: Long text templates can be defined and assigned to the asset class. By means of these templates, the system then supports the long text entry when fixed asset belonging to this asset class is created.
Menu Path: IMG Financial Accounting Asset Accounting Master Data Long Text Templates. Results: Following long text templates would be used for the respective asset class: India: Vehicle: License Number Name of person to whom given Chassis Number Engine Number Computers: Label Number Model Number Technical Specification User Name
Land and Building: Area Address Date Of Discussion: 03.07.2001
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Participants:
Mr. Harito
Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Evaluation Groups
Description: The evaluation groups and certain user fields allow the assets to be classified using a feature in the master record. The evaluation groups are another option for classifying assets for reports or user-defined matchcodes. In the Info system, you can define the evaluation group as: A selection criteria sort criterion Menu Path: IMG Financial Accounting Asset Accounting Master Data User Fields Evaluation Groups. Results: The evaluation group will be used for following purpose in case of Japan: Line of Production: The asset cost and depreciation needs to be known for each asset class. Hence by creating Evaluation Group 1 as Product line the depreciation per line will be known. Mortgage: The assets taken on mortgage needs to be known. The evaluation group 2 will be used for this purpose. Name of Company: Name of the company from whom the asset is taken on mortgage. Evaluation group 5(Eight characters) can be used for this purpose if required. Date Of Discussion: 03.07.2001 Participants:
Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Environment and valuation
Property Indicator
Description:
The indicator puts at your disposal different property types, e.g. leasing or property, for your assets. If you have different property forms and want to evaluate them, e.g. net worth tax, you can store the indicator in the appropriate sort version . Menu Path: None Results: Required by Singapore.To be discussed in detail during Roll out Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Environment and Valuation
Unplanned Depreciation.
Description: Unplanned depreciation can be posted for value correction resulting from long term decrease in asset. The accounts for unplanned depreciation and the depreciation area to which it will be posted has to be decided in advance. Menu Path: IMG Financial Accounting Asset Accounting Depreciation Unplanned Depreciation. Results: Unplanned depreciation could be posted for book depreciation and EMD depreciation area. Date Of Discussion: 03.07.2001 Participants:
Mr. Harito Mr. Magar
Mr. Abhyuday Rao.
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Environment and valuation
Insurance Types
Description: In the asset master record you can define information for insurance policies and insurable values, and you can manage insurable values in their own depreciation area. It is particularly useful to manage insurance data and insurable values in the master record in the following instances: you need certain insurance data for informentional reasons (such as liability or collision insurance for vehicles) and the valuation method in the existing depreciation areas (APC, indexed APC or net book value) do not meet the needs of valuation for insurance purposes (e.g. fire insurance and electronic insurance). Menu Path: None Results: To be discussed in detail during roll out.required by Singapore. Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Ms. Aruna, Mr. Magar
Page 112 of 115115
Main Process
Level 1 Sub Process
Reports/Listing in Asset accounting
Standard Report List, Additional ABAP/4 Lists.
Level 2 Sub Process
Description: Standard reports are available for most of the reports required. These reports will be used. However reports will also be developed through ABAP query, programming, report painter if required. Menu Path: None Results:
To be discussed in detail during Roll Out Date of Discussion: 03.08.2001 Participants:
Japan: India: Darmstadt: Singapore: Ms. Aruna, Mr. Magar
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Main Process
Level 1 Sub Process
Level 2 Sub Process
Financial Accounting-AA Reports/Listing in Asset accounting

Asset Accounting data migration
Description: The data as per the SAP format for migration of asset data from the old system to the new system is to take place. For this the data has to be given in a particular file format. This can be uploaded into SAP through BDC program. Menu Path: None Results: The file for capturing the data in the required format will be given. The actual data will be loaded during the roll out. Date Of Discussion: 02.07.2001 Participants: Japan: India: Darmstadt: Singapore: Mr. Abhyuday Rao. Mr. Harito Ms. Aruna, Mr. Magar
Page 114 of 115115
Main Process
Level 1 Sub Process
Level 2 Sub Process
Tax Valuation and Account determination

Account Determination FI/SD
Business Area Assignment Revenues/Expenses.
Process required for: India: Japan: Scala Countries: Description: Both revenue accounting in Financial Accounting and value postings for goods movements in Inventory Accounting can be represented separately for each business area. To do this, allocate business areas to sales areas according to different criteria. Menu Path: IMG Sales and Distribution Basic Functions Business Area Account Assignment. Results: As the requirement for Business Area no longer exists this no longer needs to be configured.
Date of Discussion: Participants: Japan: India: Darmstadt:
Page 115 of 115115

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Combined-Process Harmonization Results- Finance-

Process Harmonization Results - FI

Process Harmonization Results - FI

Process Harmonization Results - FI

Process Harmonization Results - FI

Level 2 Sub Process

Process required for: India: Japan: Scala Countries:

Process Harmonization Results - FI

Main Process Level 1 Sub Process

Process required for: India: Japan: Scala Countries:

Date of Discussion: 14.05.2001

Process Harmonization Results - FI

Participants: Japan: E- India: Darmstadt: Singapore: Mrs. Bettina.

Process Harmonization Results - FI

Process required for: India: Japan: Scala Countries:

Process Harmonization Results - FI

Process Harmonization Results - FI

Process required for: India: Japan: Scala Countries:

Process Harmonization Results - FI

Process required for: India: Japan: Scala Countries:

Process Harmonization Results - FI

Date of Discussion: 14.05.2001

Participants: Japan: India: Darmstadt: Singapore: Mrs. Bettina.

Process Harmonization Results - FI

Process required for: India: Japan: Scala Countries:

Japan: India: Darmstadt: Singapore:

Mr. Harito Ms. Aruna, Mr. Magar

Process Harmonization Results - FI

Process required for: India: Japan: Scala Countries:

Process Harmonization Results - FI

Following account groups will be required for customer:

Process Harmonization Results - FI

Date of Discussion: 14.05.2001 Participants:

Japan: India: Darmstadt: Singapore: Mrs. Bettina.

Process Harmonization Results - FI

Level 2 Sub Process

Japan: India: Darmstadt: Singapore:

Mr. Harito Ms. Aruna, Mr. Magar

Process Harmonization Results - FI

Process Harmonization Results - FI

Process required for: India: Japan: Scala Countries:

Date of Discussion: 14.05.2001

Japan: India: Darmstadt: Singapore: Mrs. Bettina.

Process Harmonization Results - FI

To Account ZZZZZZZZZZ ZZZZZZZZZZ ZZZZZZZZZZ ZZZZZZZZZZ

2000 2000 2000 2000 2000

Year 2000 2000 2000 2000 2000

Date of Discussion: 14.05.2001

Process Harmonization Results - FI

Process Harmonization Results - FI

Main Process Level 1 Sub Process

Process required for: India: Japan: Scala Countries:

Japan: India: Darmstadt: Singapore:

Mr. Harito Ms. Aruna, Mr. Magar

Process Harmonization Results - FI

Financial Accounting Financial Accounting Master Data

Level 2 Sub Process

Date of Discussion: 15.05.2001

Japan: India: Darmstadt: Singapore:

Process Harmonization Results - FI

Process required for: India: Japan: Scala Countries:

Customer Accounts Define Text IDs for

Japan: India: Darmstadt: Singapore:

Mr. Harito Ms. Aruna, Mr. Magar,