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Any project that involves study of any particular aspect in any organization ,one needs help &support of a number of persons who directly or indirectly contributes to the project through discussions ,interactions, criticism & responses.It is therefore almost impossible to thank each of these individually .Yet I would like to thank each of these individually.Yet I wold like to express my gratitude towards a few. I take this opportunity of expressing my humble & heartiest thanks to Mr. M.S.Rao (Group Manager,Shriram Traning centre) who allow me to serve the organisation and works with them . & Mr. R.S.Malik (Jt.Manager I.S.D-B.S.S, SFC.Kota) permitting me to undergo summer training at D.S.C.L, Kota. I owe a deep sense of graditue to Mr. Mukesh Bhatnagar, Mr. D.R. Jain and Mr. Surendra Khandelwal for their constant encouragement and help in complete my project. I would like to thanks to Mr. Jasprit Singh, Mr.Ram Babu Soni, Mr. K.B. Sharma for his guideline and classroom teaching. We would also like to acknowledge the efforts and support received from Mr. Nimesh Jhanwar for understanding the sap. At Last but not least ,I am thankful to all the staff member of I.S.D. training center and my friends for their consistent help and cooperation.


Realizing that the practical experience is a academic for all Round development of a personal. As a part of the course Curriculum for Bachelor of Engineering(Computer Science) The Student has to undergo practical training for 30 days. The major objective of this training is to make students familiar with A Company environment Moreover it also provide in depth knowledge Of the topic assigned to him. In the regard, I have undergo my project training at DCM Shriram Consolidated Ltd. kota I have much pleasure in submitting the project report on Study of financial module in the I.S.D.B.S.S. Deptt. Of D.S.C.L. KOTA. It gives me an insight into various stages & development involved while doing a project. Whatever I learnt here has become an inseparable part of my life.


Training at DSCL

The training consists of various stages. The first stage of training was introduction to various plants inside Kota campus. The functioning of the each plant was explained in detail. Some time was spent with plant officers to know about the product, raw material and the way finished product is prepared from raw material. Second stage started with introduction to the DSCL corporate network. The network infrastructure of the SFC (Shriram Fertilizer and Chemicals), Kota was explained. The server room was shown and each machines, including both SAP server, Primary Domain Controller, PAMS (personnel Administration Management System) server, mail server, switch, router and indoor unit of VSAT (Very Small Aperture Terminal), specification and working was explained. Layout of the network, consisting of Fiber Optic cable, Thick Ethernet and CAT 5 UTP cables at Kota was shown and units like Hubs and Media Converters (LIUs) were explained. In third phase, SAP was the major topic. Appropriate authorization was given to log onto SAP R/3 development server. It took some time to get familiar with the front end of the SAP R/3.As the understanding of the SAP R/3 increased, simple assignment were given. At a later stage, authorizations for ABAP/4 programming were given. The testing of these program were done on the development client. After successful trial, they were run on the live client. The nature of ABAP/4 program included BDC, for transferring (uploading) the legacy data to the R/3 system, and report generation. Parallel, took part in the administrative activities for SAP R/3 and network. DSCL is in the process of implementation of SAP R/3, so lot of activities is taking place related to modules to be implemented. Management for understanding the functionality of these modules desired the participation in meetings related to these modules. Also participated in the development of the Intranet site for SFC, Kota. This site uses the Active server Pages for open database connectivity for generating information against the user queries. This site is live now and development is taking place in the direction of making this site interactive and more users friendly. Also attended various presentations by representatives of companies from time to time related to products like network administration, network security, virus protection, Microsoft Exchange and implementation of Intranet at the Kota site. Attended the major IT shows at Delhi as company representative. It included recently held IT WORLD98 COMSEX INDIA show at New Delhi.


DCM Shriram Consolidated Limited

Company Profile
A leading Indian organization, DSCL is aspires to become a world-class enterprise that is responsive to change, outward-looking, competitive, delivers superior quality at low cost, with focussed businesses and robust financials. DSCL has been built on core values of being caring, credible and fair with all stakeholders, committed to continuous improvement; and being a responsible corporate citizen. DSCL has built an enabling work culture and believes in releasing human energy within the organization through participation, teamwork, professionalism, entrepreneurship, openness and upholding human dignity. The Company is committed to enhancing the employability of individuals through competence building via continuous training and development activities. DSCL believes in a pro-active Industrial Relations policy and has an enviable track record in this field. Employee welfare is given utmost priority and is institutionalized across the organization. DSCL has initiated several management initiatives in the recent past for upgrading the organization, the major ones being Institution Building, Quality Management, ISO 9000 Certification, and implementation of SAP R 3 ERP package in Information Technology. The Company provides aspiring professionals opportunities to grow in a challenging and up-to-date environment. DSCL's recruitment policy values merit is egalitarian, does not differentiate on the basis of sex, caste or religion, and targets the best professionals. Compensation are commensurate to qualifications, experience and ability







DSCL, a US$ 7b diversified business conglomerate based in North India, has a core sector business of Agri-business (Urea fertilizer, Sugar, Farm inputs marketing such as DAP, Pesticides, Seeds etc), Plastics (PVC and PVC compounds) and Chemicals

(Chlor-Alkali, Water Treatment Chemicals, Environment Services and ChemSPARC). Other business interests comprise of Cement, Textiles, IT and Energy Services. DSCL also owns subsidiary companies - Gomti Sugar Limited, a division of Ghaghara Sugar Limited (Sugar) and Shriram Polytech Limited (PVC profiles and products). Founded by Sir Shriram in 1889 (as DCM limited), today DSCL (which spun of as a separate company in 1990) is managed by Mr. Ajay S. Shriram, Chairman and Senior Managing Director and Mr Vikram S. Shriram, Vice Chairman and Managing Director along with a highly professional executive team. DSCL has a strong brand equity reflective of credibility, ethical values and consistent high quality product image. With over 30 years of experience in managing large scale process industries with sustained high level of performance, DSCL meets the needs of a wide range of customers from farmers to industrial users, from house builders to business owners. Fostering enduring relationships is at the core of DSCLs business philosophy - with vendors, business partners, and customers and within the organization between employees. As a leading equal opportunity employer in India, DSCL has a motivated and dynamic management team of highly qualified professionals and dedicated workmen and staff whose work has shown the way towards creating "Team Excellence". DSCL has a long history of accessing and employing the best technologies for its projects and has worked successfully with renowned international and domestic technology partners. As a learning organization DSCL has worked regularly with the national and international consultants of repute, in diverse areas of Business Strategy, Quality, Organizational Development etc. In a major IT initiative the company has networked all its locations on a Wide Area Network (WAN) and implemented SAP R/3 Enterprise Resource Package (ERP) across the Company. DSCL is now in the process of upgrading and web-enabling this ERP to Other key IT enabling initiatives under implementation are Customer Relationship Management (CRM) and Business Information Warehousing (BIW). All its main line locations/products have ISO 9000 and 14000 certification. DSCL is currently implementing OHSAS 18001 : 1999 system of Occupational Health and Safety in its facilities. In an increasingly global business environment, DSCL vision is to strengthen its commodity business while moving into "value added" and "knowledge based" products and services in the areas of its operations. Accordingly DSCL has set up DSCL ESCO Limited in the Energy Services Business with the objective of providing energy efficiency services and development of renewable energy. DSCL has also set up Shriram Environment and Allied Services (SEAS) which provides Environment Services. Amongst other initiatives, DSCL has moved rapidly up the value chain in its core Agriinputs, Plastics and Chemicals businesses. DSCL strongly believes in socially responsible activity as a responsible Corporate Citizen. DSCL has made significant contribution to the society in the fields of Environment, Health Care, Family Planning, Education, Cultural Heritage, Rural

Development and in promoting Sports.

Building a world class organization

DCM Shriram Consolidated Ltd. (DSCL) is a public limited company, based in New Delhi with manufacturing locations at Kota & Tonk (Rajasthan), Jhagadia (Gujarat),

Lakhimpur Kheri (Uttar Pradesh) and an extensive sales & distribution network reaching out to national and global customers. The companys business portfolio comprises of: Agri-business- Urea fertilizer, Farm inputs marketing such as DAP & Pesticides and manufacture and marketing of Seeds and Sugar. Plastics PVC and PVC compounds Chemicals - Chlor-Alkali, Polyaluminum Chloride, Shriram Environment & Allied Services (SEAS), Chemical Specialty Products and Applications Research Centre (ChemSPARC) Services Environment Services & Energy Services Other businesses comprise of Cement and Textiles DSCL is committed to achieving excellence in financial performance, building a worldclass organization and enhancing stakeholder value. Vision At DSCL our vision is to build world class organization in focussed businesses, which is profitable, with a culture of being quality driven, responsive to change and highly


The DSCL value system embraces continuos improvement as a way of life. Our rich heritage and the strong Shriram brand is built on being caring, credible and fair in all dealings with our stakeholders. While being a responsible corporate citizen, DSCL aims to release the energy of every single employee to create true wealth in the society.

The Delhi Cloth & General Mills Co. Ltd. (DCM), was founded in 1889 with the establishment of a Spinning Mill at Delhi. Thereafter, the company expanded and diversified into large segments of industry areas and played a leading role in the industrialization of India.


Company milestones
1889 .. Delhi Cloth Mill No. 1 1925...Delhi Cloth Mill No. 21928...Delhi Cloth Mill No. 31932...Daurala Sugar Works1935...Lyallpur Cotton Mills, Lyallpur ( Pakistan)1938...Daurala Confectionery Works1940...Barhni Sugar Works (Renamed Mawana Sugar Works in 1949)1941...DCM Chemical Works1945...Daurala Distillery1946...DCM Vanaspati Manufacturing World 1948...Swatantra Bharat Mills 1956...Hissar Textile Mills1956...DCM Silk Mills1961...DCM Engineering & Development Works1963...Rajasthan Vinyl & Chemical Industries1964...Rajasthan Rayons (Now Shriram Rayons)1969...Fertilizer Plant1987...Cement Plant In 1990, to create more manageable business entities, DCM Ltd., was restructured into four separate companies. DCM Shriram Consolidated Ltd. (DSCL) took over 1/3rd of the businesses by the merging of the following units of the erstwhile DCM: Shriram Fertilizer & Chemicals, Kota ( Rajasthan) - Fertilizers, Plastics, Chlor Alkali and Power Shriram Cement Works, Kota ( Rajasthan) - Cement Swatantra Bharat Mills and DCM Silk Mills (Delhi) - Textiles In the decade 1990-2000, DSCL added the following units to its portfolio: Shriram Alkali & Chemicals, Bharuch (Gujarat) - Chlor Alkali Shriram Environment & Allied Services, Gurgaon (Haryana) - Environment & Allied Services
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Ghaghagra Sugar, Lakhimpur Kheri ( Uttar Pradesh) - Sugar Shriram Bioseed Limited, Hyderabad (Andhra Pradesh) - Seeds DSCL ESCO Limited, New Delhi - An Energy Services Company In the year 2002, DSCL was re-organized. The Plastics business of the Company was hived off as a subsidiary and named Shriram Polytech Ltd. The main business units of DSCL now comprise of: Agri Business: Fertilizers, Seeds, Sugar and Chemicals: Chlor Alkali, Water Plastics: PVC Resin, Other Businesses: Cement, Textiles Traded Agri Inputs Treatment Compounds

Ajay S. Shriram Chairman & Senior Managing Director Ajit S. Shriram Director (Sugar) S. D. Omchary Senior Executive Director Dr. G. C. Dutta Roy Chief Executive (Energy Business) Vikram S. Shriram Vice Chairman & Managing Director Rajiv Sinha Deputy Managing Director V. P. Agarwal Company Secretary S. K. Agrawal Executive Director (Chemical Business)

Names and Designations of Directors 1. Shri Ajay S. Shriram (Business Executive) 2. Shri Vikram S. Shriram (Business Executive) 3. Shri Rajiv Sinha (Service) 4. Shri Ajit S. Shriram (Business Executive) 5. Dr. S. S. Baijal (Company Director) 6. Shri Arun Bharat Ram (Industrialist) 7. Shri Harnam Dass Wahi (Company Director) 8. Shri Pradip Dinodia (Chartered Accountant) 9. Shri O. V. Bundellu (IDBI Nominee, Service) 10. Shri S. L. Mohan (GIC Nominee, Service) 11. Shri S. N. Chaturvedi (UTI Nominee, Chartered Accountant)




1982-83 NPC Award for " Best Productivity Performance " 1983-84 FAIs Runner up Award for " Best Production Performance of Nitrogenous Fertilisers Unit " 1989-90 NPC Award for " Best Productivity Performance in Fert.Industry " 1989-90 EAR Silver Jubilee Award for " Better Industrial Relation in the Factory " 1990-91 FAIs Runner up Award for " Best Production Performance of Nitrogenous Fertilisers Unit " 1990-91 NPC Award for " Best Productivity Performance in Fert. Inudstry " 1990-91 RPCBs Award for " Excellence in Pollution Abatement Measures " 1990-91 Indian Bureau of Mines Best Award for " Environment Conservation in Air and Noise Pollution " 1991-92 National Award for " Public Recognition of Out-standing Activity for Prevention & Control of Pollution" 1992-93 National Council of Cement and Building Materials Award for "Best Improvement in Electrical Energy Performance and 2nd Best in Energy Performance" 1993-94 FAI Award for "Best Productivity Performance of Nitrogenous Fertilisers Unit" 1993-94 NPC Award for "Best Productivity Performance in Fertilisers Industry" 1994-95 NPC Runner Award for "Best Productivity Performance in Cement Industry" 1995-96 FAIs Runner Up Award for "Best Production Performance of Nitrogenous Fertiliser Unit" 1996-97 Energy Conservation Award in "Chemical Sector" 1996-97 NPC Award for "Second Best Productivity Performance in Fertilisers Industry" 1998 Star Award "SAP R-3/SAP Star Customer Award 1998"

1999-00 NCBM Award for "Best Improvement in Thermal Energy Performance in Cement Industry" 2000-01 National Award for Energy Efficiency - SFC Kota & SAC Bharuch



2001-02 TERI Corporate Environment Award 2001 2001-02 ... National Award for Oil Conservation - SAC Bharuch 2002-03 Centre for Science and Environment (CSE) Award: Green Rating for ChlorAlkali Industry-Unit SAC ranked 2nd


Kanchenjunga Building 18, Barakhamba Road New Delhi - 110 001 India Tel.: 91-11-23316801-08
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Fax: 91-11-23737351-58 Email: <>

Management Office Kanchenjunga Building 18, Barakhamba Road New Delhi-110 001 EPABX: 23316801-08, 23737351-58 FAX: (Management Block) 23719570 (Administration) 23318072 (Dy. MD Office) 23318261 Email: <> Marketing Department Kirti Mahal 19, Rajendra Palace New Delhi-110 008 EPABX: 25713442, 25713056, 25713453 FAX: (Administration) 25781575 (Agri-Business Group) 25781182 (CMD Office) 25768135


The agriculture sector is recognized a strategically important part of the economy and India is today the worlds second largest producer of food after the United States.DSCL agri-inputs business produces Urea fertilizer, is engaged in marketing of a range of other fertilizers, pesticides and other agri-related products. The Agri-Business is leveraging modern management practices to realize significant value: A strong Shriram brand equity. Over 3 decades of direct relationship with the farming community with supply of agriinputs, education, training and community development programs. Operations spanning the North, West & South of India. Infrastructure of over 30 sales offices, 12 distribution warehouses, 200 wholesales and 4800 retail outlets. A JV with BioSeed Genetics International Inc. - Shriram BioSeed Genetics India Ltd that produces high quality hybrid seeds at Hyderabad, AP, India. DSCLs strategic focus is to build on its existing activities & infrastructure in agri-inputs, while also exploring opportunities in agri-outputs, food processing and agri-based end use products. FERTILISERS SEEDS
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The Chemical Business derives its core strength from its Chlor-alkali operations. With an installed capacity of approx. 110,000 tpa (49,550 tpa based on mercury cells & 62,000 tpa based on membrane cells) and a market share of approx. 8% in the Indian Chlor-alkali industry DSCL is a leading producer in the country. The strategic thrust of the business is to use it existing infrastructure and market presence to build value added products and services. As a first step, DSCL has moved aggressively to enter the water treatment area by setting up a state-of-the-art plant situated at Kota, Rajasthan for a latest 3rd generation Polyaluminium Chloride (capacity 39,000 tpa). Marketed under the brand name Ecorite these products provide outstanding coagulation/flocculation properties. DSCLs Chemical Business provides total customer solutions with its nationally accredited Shriram Environment and Allied Services (SEAS) operations and specialty products & applications development services Chemical Specialty Products and Applications Research Centre (ChemSPARC) laboratories. CHLOR ALKALI CAUSTIC SODA CHLORINE HYDROCHLORIC ACID HYDROGEN STABLE BLEACHING POWDER SODIUM HYPOCHLORITE PAC ECORITE PAC 2018 ECORITE PAC 2014
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DSCLs core plastics business is based on a state-of-the-art computer process controlled PVC Resin (33,000 tpa). Based on the carbide manufacturing process this plant also generates valuable Other Products such as high purity Calcium Carbide. In a subsidiary company Shriram Polytech Limited (SPL) the business operates one of Indias largest PVC Compounds facilities (20,000 tpa). This plant supplies customized products to over 200 industrial customers. SPL has also set up an Innovative Polymer Applications Centre (iPAC) which is focussing on development of further specialty and value added polymer products, innovative customer specific application solutions and moving in a calibrated manner up the product-value chain.

PVC Resin
Based on the Calcium carbide based process and closely linked with the Carbide and Chemicals operations at Kota, DSCLs PVC resin plant enjoys unique cost advantages with a built in flexibility to quickly respond to customer needs.

Shriram PolyTech Limited

Shriram PolyTech Limited (SPL) is a wholly owned new subsidiary company of DSCL, is Indias largest integrated facility for manufacture of PVC Compounds. It is the only plant in India to be integrated back to raw materials and to an R&D facility (iPAC) for customized product development matching international standards. This allows the company to service customer specific requirements both for bulk as well as in small volumes. The Polymer Building Products(PBP) SBU focuses on developing Vinyl windows and related building products. In the long run, it is expected to explore other products for this sector for inclusion in its portfolio.

Other Products
The plastics business also produces and markets other value added products such as Calcium Carbide PVC RESINES POLYMER BUILDING PRODUCTS PVC COMPOUNDS OTHER PRODUCTS CALCIUM CARBIDE


Converting waste in to premium-grade products DSCLs Cement Business is Indias only plant that converts waste generated at Kota into consistent quality, premium grade cement products.
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Shriram Cement is produced in a computer process controlled highly automated plant. The product has created for itself a strong brand equity and is a recognized market leader in its areas of distribution.

Product Application
Shriram - 53 cement is what 24 carat is to gold. This is all purpose cement and is used specially for lintel work beside all other applications of RCC work. Higher Tri-Calcium Silicate (TCS) factor results in quicker setting and faster development of high strength structures. Resource Guard: SystemicSHRIRAM-53 Cement has a natural advantage due to its unique raw material reservoirs which lead to higher TCS factor. Higher Tri Calcium Silicate (TCS) factor results in quicker setting and faster development of high strength structures. Actually it is this TCS factor which makes Shriram-53 cement the first choice of architects, builders, contractors and obviously yours tool. Strength Guard: SHRIRAM-53 Cement can do what the best of security guards and watchdogs cannot protect your home from the forces of time, the elements of nature like rain, pot-boiling, occasional hail storms and weathering Seepage Guard: SHRIRAM-53 Cement wins on this from completely. Each cement mix allows lesser usage, lower heat of hydration, lesser shrinkage, which in turn results in no cracks. Al this leads to a timeless bond coupled with superior water proofing qualities. (For ideal results, ask your architect/mason for better curing). Finish Guard: SHRIRAM-53 Cements finer grains makes workability in plastering and flooring an easy process. And you get the smooth finish of your choice. Colour Guard: SHRIRAM-53 Cements light colour becomes an ideal choice for elegant flooring and long lasting plasteriang, reducing or eliminating the usage of white cement. Economy Guard: Higher TCS factor, fine grains, lesser usage, helps achieve a very difficult target economy of use. Shriram-53 Cement reduces overall consumption by 20 30%. TEXTILES:The textile group comprising of Swatantra Bharat Mills and DCM Silk Mills earlier situated in 112 acres of prime land in the heart of Delhi has relocated to Tonk, Rajasthan. Pursuant to the relocation, the modern facility at Tonk is operating

successfully while opportunities for realizing value in the real estate are being explored.

Shriram Environment and Allied Services (SEAS) DSCL Energy Services Company (ESCO)

The Shriram Environment & Allied Services (SEAS)

1) Services 2) Analytical Services 3) Environmental 4) Design & Exceution Services
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5) Consulting Services 6) Training 1)Services The Shriram Environment & Allied Services (SEAS) provides consulting project execution & operations services in waste management, risk assessment, safety audits, environment impact assessment etc. SEAS conducts extensive training programs for its customers in the above areas and has a R & D Centre that supports its activities. 2) Analytical Services SEAS has a well equipped analytical testing laboratory, capable of performing high quality organic and inorganic analysis. All your analytical testing needs, including routine analysis, special projects, and developmental work can be performed by SEAS. Dedicated analysts/chemists having rich experience on sophisticated instruments, have brought SEAS an impressive track record for accurate & timely results, fast turnaround at competitive costs. SEAS services include: Environmental Testing & Monitoring Source Emission Process & Fugitive Emission Ambient Air Quality Noise Mapping Water & Wastewater Testing Solid & Hazardous Waste Analysis Potable Water Analysis Bacteriological Testing Material and Product Testing 2) Environmental Consulting Services All new industrial or infrastructure projects require Environmental Impact Assessment studies (EIA) prior to establishment. Backed by environmental experience, the interdisciplinary team of SEAS provides expert assessments and complete EIA management, right from conceptualization to design & implementation of the project. SEAS services include: Assessments & Audits Environmental Impact Assessment Safety, Health, and Environment Assessment Environment & Safety Audits Accident Risk Assessment & Dispersion Modeling Work Environment Assessment Resource Conservation Assessment Mechanical Condition Monitoring Energy Audit Quality and environment management systems Quality Management System (QMS) based on ISO 9000 Environmental Management System (EMS) based on ISO 14001
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Occupational Health & Safety Management (OHSMS) System based on OHSAS 18000

3) Design & Execution Services SEAS offers high quality & reliable environment design and operation & maintenance (O&M) services. Our team of scientists and professionals use the latest technology to meet increasingly complex requirements and also ensuring prompt & reliable services to our clients. SEAS services include design and O&M of: Effluent Treatment Systems Air Pollution Control Systems Hazardous Waste Secured Landfill Sites Waste Handling, Treatment and Disposal Industrial Green Belts Design & execution of rain-water harvesting projects Operation & Maintenance for Industrial wastewater treatment and common effluent treatment plants, Sewage treatment plants, Community potable water treatment, Secured Landfill sites etc. 6) Training SEAS conducts workshops & short term training programmers in the following areas Total Quality Management Environmental Laboratory set-up and Practices For Process Industries Resource Conservation & Management Environment Audit Environment Monitoring Water & Wastewater Analysis Occupational Health & Safety Audit ETP Operation and Maintenance DSCL ENERGY SERVICES Our Credo: Developing partnerships for progress together through delivery of tangible and measurable energy performance. DSCL Energy Services is a pioneering Energy Services Company (ESCO) established in India, to provide customized energy cost reduction solutions to a diverse array of clients in the industrial, building, institutional and commercial sectors. DSCL ESCO was created to leverage DSCLs expertise in the management of energy. DSCL ESCO has 27 full time engineering professionals located in a state-of-the-art office at New Delhi. Based on the requirement of specific projects, expertise is also drawn from DSCL's in-house engineering, financing, management and environmental service professionals. DSCL ESCO uses diverse business models, evolving from comfort level of clients. In contrast to traditional practice, the business model has been designed where audit is the starting point towards fulfillment of the energy performance goal. Seamless implementation of projects from "Go" to "Done" and ensuring successful completion exceeding the guaranteed performance standards are accorded high priority in our delivery process.



Market Segments DSCL ESCO provides energy consulting service towards the implementation of energy efficiency projects both in India and overseas. DSCL ESCO's customers include: Industry, in general and process and energy-intensive industry, in particular Building establishments - commercial, institutional and recreational Utilities Technology Segments Offering several technology and system choices, elaborate in-house proprietary systems and databases have been developed to identify cost reduction opportunities and for benchmarking technology and costs. The technology portfolio of DSCL-ESCO comprises. Portfolio DSCL ESCO is involved in the implementation of energy efficiency projects both in India and overseas and in the development of Renewable Energy investments. In the energy management sector, DSCL ESCO's customers include Industry, in general and process and energy-intensive industry, in particular Building establishments - commercial, institutional and recreational Utilities DSCL ESCO in the Global Market DSCL ESCO, in this short period of less than 3 years have acquired good international experience by working with different organization and also doing commercial projects. Some of these are: Working as a sub-contractor to PRI, Canada for a Commonwealth Science Council (CSC) supported project for electrical energy efficiency in New Delhi Undertaking commercial energy efficiency projects in California, USA Participating in USAID project on Climate Change and CDM of Kyoto Protocol Participating as core group member in the UNF project on Developing Financial Intermediation Mechanisms for Energy Efficiency Projects in Brazil, China and India In addition to above, some of DSCL ESCO professionals have also experience of working on similar projects in their previous employments.

Industries THEY Serve :Currently the industry range comprises

Agri-Business Fertilizers Seeds Corn Bajra Jowar Cotton SSG Sunflower Paddy Pesticides Agri Services
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Agri Retailing Hariyali Kisan Bazar Sugar Aluminium Shriram PVC Compounds Caustic Soda Automobiles Shriram PVC Compounds Hydrochloric Acid Cables Hydrogen Chemical Process Industry Hydrochloric Acid Caustic Soda Chlorine Ecorite PAC 2018 Ecorite PAC 2014 Calixarenes Water & waste water treatment Construction Polymer Building Products Cement Calcium Carbide Food Sugar Speciality Natural Products Hydrogen Shriram PVC Compounds Footwear Shriram PVC Compounds Calcium Carbide Fruit/ Horticulture Shriram PVC Compounds Specialty Natural Products Calcium Carbide Healthcare & Medicine Chlorine Sodium Hypochlorite Shriram PVC Compounds Municipal and Sanitation Stable Bleaching Powder Chlorine Ecorite PAC 2010 Caustic Soda Water & waste water treatment Oil & Gas
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Hydrochloric Acid Hydrogen Optic fibre Caustic Soda Hydrogen Paper & Pulp Chlorine Hydrochloric Acid Ecorite PAC 2014 Ecorite PAC 2018 Polymers PVC Resins R&D Chem SPARC Retailing Agri Retailing Hariyali Kisan Bazar Textile Textiles Caustic Soda Hydrochloric Acid Water & waste water treatment Welding Calcium Carbide
FINANCIAL OVERVIEW: During the year ended March 31, 2002, sales of DSCL at Rs.1,056.16 crores were 8.21% higher as compared to sales of Rs.976 crores last year. However, net profit at Rs.30.47 crores (before providing for deferred tax) was 25.81% lower as compared to Rs. 41.07 crores last year, due to curtailment of urea production, as a result of lower allocation for sale by the Government. Also, due to depressed market conditions, there was a fall in selling prices of PVC resin, Caustic Soda/Chlorine and Cement. Interim dividend @ 15% and recommended final dividend @ 27.5%, make a total dividend @ 42.5% on the equity share capital, for the financial year 2001-2002. CAREERS AT DSCL: DSCL is a pioneer in helping create a talented pool of managers in the country. Today former DCM trainees occupy high positions in corporate India - a testimony to the opportunity the company has striven to make available to young professionals. Employment Programs - Fresh Graduate Training Schemes DSCL is a pioneer in helping create a talented pool of managers in the country. Today former DCM trainees occupy high positions in corporate India - a testimony to the opportunity the company has striven to make available to young professionals. DSCL offers the following trainee schemes to new graduates. Management Trainee (MT) Scheme



The MT scheme is for a period of one & half years, of which the first year is a period of probation. After the completionof the probation, the individuals are designated as Assistant Managers. The placement in a specific SBU takes place after further six months in the Junior Management cadre of the company. Graduate Engineer Trainee (GET) Scheme The GET scheme is for a period of one & half years, of which the first year is a period of probation. After the completion of the training the individuals are designated as Assistant Engineer A in the Junior Management cadre of the company. Executive Trainee (ET) Scheme The period of training under the ET scheme is one & half years of which the first year will be a period of probation. After the completion of the training the individuals are designated as Accounts officer B / Purchase officer B/ Administrative officer B/ Commercial officer B in the Junior Management cadre of the company. Sales Officer Trainee (SOT) Scheme Under the SOT scheme the period of training is one & half years of which the first year will be a period of probation. After the completion of the training the individuals are designated as Senior Sales Executive B/ Extension Officer B. DSCL welcomes applications from students and new graduates in all disciplines. Anyone can submit his/her profile using the Submit Resume link on the sirte Manpower Inventory The DSCL group employs around 2800 employees from several different walks of like. A manpower summary sheet is presented below:

Social Commitment
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A Responsible Corporate Citizen Continuing with the long history of social commitment projects started by the founder Sir Shriram, DSCL has been making meaningful contributions to the society in the areas of Agriculture Extension Activity Health Care Education Environment SportsIn addition DSCL has always responded with generous contributions towards relief work on natural calamities such as drought & earthquakes. Agriculture Extension Activity DSCLs Shriram Krishi Vikas Kendras (SKVKs) operate with the objective to impart scientific knowledge to the farmers to enhance their profitability covering crop cycle and harvesting etc. SKVKs support the farmers in their work and life through adoption of villages. The SKVKs provide help in meeting educational, hygiene, sanitation needs for the community as well as healthcare support for animal husbandry. Health Care In its endeavour to serve the society around its operating locations, DSCL has equipped Maharao Bhim Singh (MBS) Hospital, Kota with a state of art intensive care unit - The Shriram ICU and Private rooms- The Shriram Wards. The company organizes healthcare camps in its adopted villages and centres to create awareness on diseases like AIDS and Cancer. Periodic Eye check-up camps are arranged and Family Planning programmes encouraged by incentive schemes for the villages around its areas of operation. Education To encourage meritorious and needy students in the fields of Engineering, Medicine, Agriculture and Management, the company has instituted Scholarships at various educational institutions in Rajasthan. DSCL runs a Primary Education Programme for the girl child, which provides for support on books, school bags and uniforms. The company has also contributed for construction of school buildings both in cities & rural areas. A recent project was the reconstruction of the Primary School building at Gandhidham in Bhuj district of Gujrat - its building was reduced to rubble in the Earthquake in January 2001. Environment The Company is committed to preserve and protect the environment around its area of operations. As a result of a the well-defined policy on environment and safety the rocky terrain of the Kota complex has been transformed in to lush green tree covered landscape through planting of over 1,50,000 trees on nutritious beds of fly-ash. Planting of over 200,000 trees around Nimoda mines, Nimoda (Rajasthan) has also been carried out. The Company has adopted Rainwater harvesting initiatives across the board by transferring it to the underground water aquifers or storing in surface reservoirs. Rainwater collected is put to process use, thus conserving a precious natural resource and reducing dependence on external sources. Spurred by this rainwater harvesting movement, several senior executives of the company have taken their own initiative to implement the same process in their residences. DSCL sites:

Enterprise Resource Planning:

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Enterprise Resource Planning (ERP) systems are software solutions that integrate and provide desired data in real-time to users in any part of a manufacturing enterprise allowing everyone to operate in sync and with less headaches. Typically, ERP systems encompass the major functions in the manufacturing environment: order management, production planning, production scheduling, production management, inventory management and distribution, and product costing. The enterprise database is critical to all the activities and is the nerve center of the ERP system. An ERP system enables the company to focus on the five R's, which are essential for a profitable operation: producing the Right Product of the Right Quality in the Right Quantity at the Right Time and at the Right Price to the delight of the customer. While providing "asset visibility", the status of an order or product throughout the enterprise, an ERP system can serve as a valuable decision-making tool and help the company answer the following key questions: What product do we want to produce? What are our production time constraints? How do we produce the product? How much do we produce? How do we allocate resources for production? What is the target product quality? How much will it (and did it) cost to make the product? What is the degree of customer satisfaction?

A well-designed ERP system will have separate "modules" to answer questions related to each facet of an enterprises operations while simultaneously providing an overall or integrated view of the entire enterprise.

From MRP to ERP - A Historical Overview :Manufacturing control systems have undergone a major transformation since the early introduction of Material Requirements Planning (MRP). The industry standard for computing support of MRP II implementations has been the traditional "closed-loop" material requirements planning (MRP) and Capacity Requirements Planning (CRP) system. In response to the problems of a previous generation of materials management practices, MRP emerged in the 1960s and came into widespread use. The output of the MRP process served as input for a CRP process. These traditional MRP/CRP systems are still widely available today. They represented a major advance over the order point methods they replaced. Many companies have been significantly improved through their use.

Evolution of MRP II and ERP :Created by NILESH DADHICH 25

Over the years, a family of management practices took shape, which accompanied these closedloop MRP/CRP systems, and which also gained status as de facto standards. These practices came to be called Manufacturing Resource Planning, or MRP II. Material Requirements Planning came to be known as "little MRP", while Manufacturing Resource Planning became "big MRP" or "MRP II". Changes in customer requirements, as well as technology, however, caused manufacturers to redefine the role of their MRP II systems once again. As more time passed, and computing concepts and technology allowed, the scope of the business systems widened to become Enterprise Resource Planning or "ERP". The "scope" of manufacturing planning systems has increased with each major generation change. The migration from MRP to MRP II heralded a change from solely a materials emphasis to a holistic view of the manufacturing environment. Enterprise resource planning continued this trend. In addition, ERP adds technology aspects to the overall system requirements. These include features such as a client/server distributed architecture and object-oriented programming (OOP) development practices. Both of these factors make the ERP system more scaleable. This scalability in turn lends itself to departmental applications that can more easily extend into customer and supplier environments. As manufacturers evolve to supply chain management operations, mutual access to both the customer's and supplier's planning systems is a logical extension of the enterprise.

The Full Potential of ERP :As ERP continues to evolve into a real-time planning tool, it will play a more strategic role in helping companies achieve their business objectives. Further, manufacturers can no longer operate in a vacuum, they must look at the bigger picture and create a new vision for their business. This vision will help manufacturers make the transition from an "order, launch and expedite" mentality to an integrated flow those links customers with manufacturing processes and suppliers. As companies implement supply chain operations, traditional MRP applications will not meet the changing requirements. These applications must evolve to play an integral supporting role in the creation of a "value chain", where users measure true value in terms of the ability to meet changing customer requirements.

What is ERP?
Enterprise resource planning software, or ERP, doesn't live up to its acronym. Forget about planningit doesn't do much of thatand forget about resource, a throwaway term. But



remember the enterprise part. This is ERP's true ambition. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. That is a tall order, building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse. Each of those departments typically has its own computer system optimized for the particular ways that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other. That integrated approach can have a tremendous payback if companies install the software correctly. Take a customer order, for example. Typically, when a customer places an order, that order begins a mostly paper-based journey from in-basket to in-basket around the company, often being keyed and rekeyed into different departments' computer systems along the way. All that lounging around in in-baskets causes delays and lost orders, and all the keying into different computer systems invites errors. Meanwhile, no one in the company truly knows what the status of the order is at any given point because there is no way for the finance department, for example, to get into the warehouse's computer system to see whether the item has been shipped. "You'll have to call the warehouse" is the familiar refrain heard by frustrated customers. ERP vanquishes the old standalone computer systems in finance, HR, manufacturing and the warehouse, and replaces them with a single unified software program divided into software modules that roughly approximate the old standalone systems. Finance, manufacturing and the warehouse all still get their own software, except now the software is linked together so that someone in finance can look into the warehouse software to see if an order has been shipped. Most vendors' ERP software is flexible enough that you can install some modules without buying the whole package. Many companies, for example, will just install an ERP finance or HR module and leave the rest of the functions for another day.

How can ERP improve a company's business performance?

ERP's best hope for demonstrating value is as a sort of battering ram for improving the way your company takes a customer order and processes it into an invoice and revenueotherwise known as the order fulfillment process. That is why ERP is often referred to as back-office software. It doesn't handle the up-front selling process (although most ERP vendors have recently developed CRM software to do this); rather, ERP takes a customer order and provides a software road map for automating the different steps along the path to fulfilling it. When a customer service representative enters a customer order into an ERP system, he has all the information necessary to complete the order (the customer's credit rating and order history from the finance module, the company's inventory levels from the warehouse module and the shipping dock's trucking schedule from the logistics module, for example). People in these different departments all see the same information and can update it. When one department finishes with the order it is automatically routed via the ERP system to the next department. To find out where the order is at any point, you need only log in to the ERP system and track it down. With luck, the order process moves like a bolt of lightning through the organization, and customers get their orders faster and with fewer errors than before. ERP can apply that same magic to the other major business processes, such as employee benefits or financial reporting. That, at least, is the dream of ERP. The reality is much harsher. Let's go back to those inboxes for a minute. That process may not have been efficient, but it was simple. Finance did its job, the warehouse did its job, and if anything went wrong outside of the department's walls, it was somebody else's problem. Not anymore. With ERP, the customer service representatives are no longer just typists entering someone's name into a computer and hitting the return key. The ERP screen makes them businesspeople. It flickers with the customer's Created by NILESH DADHICH 27

credit rating from the finance department and the product inventory levels from the warehouse. Will the customer pay on time? Will we be able to ship the order on time? These are decisions that customer service representatives have never had to make before, and the answers affect the customer and every other department in the company. But it's not just the customer service representatives who have to wake up. People in the warehouse who used to keep inventory in their heads or on scraps of paper now need to put that information online. If they don't, customer service reps will see low inventory levels on their screens and tell customers that their requested item is not in stock. Accountability, responsibility and communication have never been tested like this before. People don't like to change, and ERP asks them to change how they do their jobs. That is why the value of ERP is so hard to pin down. The software is less important than the changes companies make in the ways they do business. If you use ERP to improve the ways your people take orders, manufacture goods, ship them and bill for them, you will see value from the software. If you simply install the software without changing the ways people do their jobs, you may not see any value at allindeed, the new software could slow you down by simply replacing the old software that everyone knew with new software that no one does..

What will ERP fix in business?

There are five major reasons why companies undertake ERP.

Integrate financial informationAs the CEO tries to understand the company's

overall performance, he may find many different versions of the truth. Finance has its own set of revenue numbers, sales has another version, and the different business units may each have their own version of how much they contributed to revenues. ERP creates a single version of the truth that cannot be questioned because everyone is using the same system.

Integrate customer order informationERP systems can become the place

where the customer order lives from the time a customer service representative receives it until the loading dock ships the merchandise and finance sends an invoice. By having this information in one software system, rather than scattered among many different systems that can't communicate with one another, companies can keep track of orders more easily, and coordinate manufacturing, inventory and shipping among many different locations at the same time.

Standardize and speed up manufacturing processesManufacturing

companiesespecially those with an appetite for mergers and acquisitionsoften find that multiple business units across the company make the same widget using different methods and computer systems. ERP systems come with standard methods for automating some of the steps of a manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count.

Reduce inventoryERP helps the manufacturing process flow more smoothly, and it
improves visibility of the order fulfillment process inside the company. That can lead to reduced inventories of the stuff used to make products (work-in-progress inventory), and it can help users better plan deliveries to customers, reducing the finished good inventory at the warehouses and shipping docks. To really improve the flow of your supply chain, you need supply chain software, but ERP helps too.

Standardize HR informationEspecially in companies with multiple business

units, HR may not have a unified, simple method for tracking employees' time and communicating with them about benefits and services. ERP can fix that. In the race to fix these problems, companies often lose sight of the fact that ERP packages are nothing more than generic representations of the ways a typical company does business. While most packages are exhaustively comprehensive, each industry has its quirks that make it unique. Most ERP systems were designed to be used by discrete manufacturing companies (that make physical things that can be counted), which immediately left all the process manufacturers (oil, chemical and utility Created by NILESH DADHICH 28

companies that measure their products by flow rather than individual units) out in the cold. Each of these industries has struggled with the different ERP vendors to modify core ERP programs to their needs.

what are the hidden costs of ERP?

Although different companies will find different land mines in the budgeting process, those who have implemented ERP packages agree that certain costs are more commonly overlooked or underestimated than others. Armed with insights from across the business, ERP pros vote the following areas as most likely to result in budget overrun.

Training :Training is the near-unanimous choice of experienced ERP implementers as the most underestimated budget item. Training expenses are high because workers almost invariably have to learn a new set of processes, not just a new software interface. Worse, outside training companies may not be able to help you. They are focused on telling people how to use software, not on educating people about the particular ways you do business. Prepare to develop a curriculum yourself that identifies and explains the different business processes that will be affected by the ERP system. One enterprising CIO hired staff from a local business school to help him develop and teach the ERP business-training course to employees. Remember that with ERP, finance people will be using the same software as warehouse people and they will both be entering information that affects the other. To do this accurately, they have to have a much broader understanding of how others in the company do their jobs than they did before ERP came along. Ultimately, it will be up to your IT and businesspeople to provide that training. So take whatever you have budgeted for ERP training and double or triple it up front. It will be the best ERP investment you ever make.

Integration and testing :Testing the links between ERP packages and other corporate software links that have to be built on a case-by-case basis is another often-underestimated cost. A typical manufacturing company may have add-on applications from the majore-commerce and supply chainto the minorsales tax computation and bar coding. All require integration links to ERP. If you can buy add-ons from the ERP vendor that are pre-integrated, you're better off. If you need to build the links yourself, expect things to get ugly. As with training, testing ERP integration has to be done from a process-oriented perspective. Veterans recommend that instead of plugging in dummy data and moving it from one application to the next, run a real purchase order through the system, from order entry through shipping and receipt of paymentthe whole order-to-cash bananapreferably with the participation of the employees who will eventually do those jobs.

Customization :Add-ons are only the beginning of the integration costs of ERP. Much more costly, and something to be avoided if at all possible, is actual customization of the core ERP software itself. This happens when the ERP software can't handle one of your business processes and you decide to mess with the software to make it do what you want. You're playing with fire. The customizations can affect every module of the ERP system because they are all so tightly linked together. Upgrading the ERP packageno walk in the park under the best of circumstancesbecomes a nightmare because you'll have to do the customization all over again in the new version. Maybe it will work, maybe it won't. No matter what, the vendor will not be there to support you. You will have to hire extra Staffers to do the customization work, and keep them on for good to maintain it.



Data conversion :-It costs money to move corporate information, such as

customer and supplier records, product design data and the like, from old systems to new ERP homes. Although few CIOs will admit it, most data in most legacy systems is of little use. Companies often deny their data is dirty until they actually have to move it to the new client/server setups that popular ERP packages require. Consequently, those companies are more likely to underestimate the cost of the move. But even clean data may demand some overhaul to match process modifications necessitatedor inspired by the ERP implementation.

Data analysis :Often, the data from the ERP system must be combined with data from external systems for analysis purposes. Users with heavy analysis needs should include the cost of a data warehouse in the ERP budgetand they should expect to do quite a bit of work to make it run smoothly. Users are in a pickle here: Refreshing all the ERP data every day in a big corporate data warehouse is difficult, and ERP systems do a poor job of indicating which information has changed from day to day, making selective warehouse updates tough. One expensive solution is custom programming. The upshot is that the wise will check all their data analysis needs before signing off on the budget.

Consultants ad infinitum :When users fail to plan for disengagement, consulting fees run wild. To avoid this, companies should identify objectives for which its consulting partners must aim when training internal staff. Include metrics in the consultants' contract; for example, a specific number of the user company's staff should be able to pass a project-management leadership testsimilar to what Big Five consultants have to pass to lead an ERP engagement.

Replacing your best and brightest :It is accepted wisdom that ERP success depends on staffing the project with the best and brightest from the business and IS divisions. The software is too complex and the business changes too dramatic to trust the project to just anyone. The bad news is a company must be prepared to replace many of those people when the project is over. Though the ERP market is not as hot as it once was, consultancies and other companies that have lost their best people will be hounding yours with higher salaries and bonus offers than you can affordor that your HR policies permit. Huddle with HR early on to develop a



retention bonus program and create new salary strata for ERP veterans. If you let them go, you'll wind up hiring themor someone like themback as consultants for twice what you paid them in salaries.

Implementation teams can never stop :Most companies intend to treat their ERP implementation as they would any other software project. Once the software is installed, they figure the team will be scuttled and everyone will go back to his or her day job. But after ERP, you can't go home again. The implementers are too valuable. Because they have worked intimately with ERP, they know more about the sales process than the salespeople and more about the manufacturing process than the manufacturing people. Companies can't afford to send their project people back into the business because there's so much to do after the ERP software is installed. Just writing reports to pull information out of the new ERP system will keep the project team busy for a year at least. And it is in analysisand, one hopes, insightthat companies make their money back on an ERP implementation. Unfortunately, few IS departments plan for the frenzy of post-ERP installation activity, and fewer still build it into their budgets when they start their ERP projects. Many are forced to beg for more money and staff immediately after the go-live date, long before the ERP project has demonstrated any benefit.

Why do ERP projects fail so often?

At its simplest level, ERP is a set of best practices for performing different duties in your company, including finance, manufacturing and the warehouse. To get the most from the software, you have to get people inside your company to adopt the work methods outlined in the software. If the people in the different departments that will use ERP don't agree that the work methods embedded in the software are better than the ones they currently use, they will resist using the software or will want IT to change the software to match the ways they currently do things. This is where ERP projects break down. Political fights break out over howor even whetherthe software will be installed. IT gets bogged down in long, expensive customization efforts to modify the ERP software to fit with powerful business barons' wishes. Customizations make the software more unstable and harder to maintain when it finally does come to life. The horror stories you hear in the press about ERP can usually be traced to the changes the company made in the core ERP software to fit its own work methods. Because ERP covers so much of what a business does, a failure in the software can bring a company to a halt, literally. But IT can fix the bugs pretty quickly in most cases, and besides, few big companies can avoid customizing ERP in some fashionevery business is different and is bound to have unique work methods that a vendor cannot account for when developing its software. The mistake companies make is assuming that changing people's habits will be easier than customizing the software. It's not. Getting people inside your company to use the software to improve the ways they do their jobs is by far the harder challenge. If your company is resistant to change, then your ERP project is more likely to fail.

How do I configure ERP software?

Even if a company installs ERP software for the so-called right reasons and everyone can agree on the optimal definition of a customer, the inherent difficulties of implementing something as complex as ERP is like, well, teaching an elephant to do the hootchykootchy. The packages are built from database tables, thousands of them, that IS programmers and end users must set to match their business processes; each table has a decision "switch" that leads the software down one decision path or another. By presenting only one way for the company to do each tasksay, run the payroll or close the booksa company's individual operating units and far-flung divisions are integrated under one system. But figuring out precisely how to set all the switches in the tables Created by NILESH DADHICH 31

requires a deep understanding of the existing processes being used to operate the business. As the table settings are decided, these business processes are reengineered, ERP's way. Most ERP systems are not shipped as a shell system in which customers must determine at the minutia level how all the functional procedures should be set, making thousands of decisions that affect how their system behaves in line with their own business activities. Most ERP systems are preconfigured, allowing just hundredsrather than thousandsof procedural settings to be made by the customer.

How do companies organize their ERP projects?

Based on our observations, there are three commonly used ways of installing ERP.

The Big Bangdominated early ERP implementations, few companies dare to

attempt it anymore because it calls for the entire company to mobilize and change at once. In this, the most ambitious and difficult of approaches to ERP implementation, companies cast off all their legacy systems at once and install a single ERP system across the entire company. Though this method Most of the ERP implementation horror stories from the late '90s warn us about companies that used this strategy.Getting everyone to cooperate and accept a new software system at the same time is a tremendous effort, largely because the new system will not have any advocates. No one within the company has any experience using it, so no one is sure whether it will work. Also, ERP inevitably involves compromises. Many departments have computer systems that have been honed to match the ways they work. In most cases, ERP offers neither the range of functionality nor the comfort of familiarity that a custom legacy system can offer. In many cases, the speed of the new system may suffer because it is serving the entire company rather than a single department. ERP implementation requires a direct mandate from the CEO.

How does ERP fit with e-commerce?

ERP vendors were not prepared for the onslaught of e-commerce. ERP is complex and not intended for public consumption. It assumes that the only people handling order information will be your employees, who are highly trained and comfortable with the tech jargon embedded in the software. But now customers and suppliers are demanding access to the same information your employees get through the ERP systemthings like order status, inventory levels and invoice reconciliationexcept they want to get all this information simply, without all the ERP software jargon, through your website. E-commerce means IT departments need to build two new channels of access in to ERP systemsone for customers (otherwise known as business-to-consumer) and one for suppliers and partners (business-to-business). These two audiences want two different types of information from your ERP system. Consumers want order status and billing information, and suppliers and partners want just about everything else. Traditional ERP vendors are having a hard time building the links between the Web and their software, though they certainly all realize that they must do it and have been hard at work at it for years. The bottom line, however, is that companies with e-commerce ambitions face a lot of hard integration work to make their ERP systems available over the Web. For those companies that were smartor luckyenough to have bought their ERP systems from a vendor experienced in developing e-commerce wares, adding easily integrated applications from that same vendor can be a money-saving option. For those companies whose ERP systems came from vendors that are less experienced with ecommerce development, the bestand possibly onlyoption might be to have a combination of internal staff and consultants hack through a custom integration.

SAP started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the Created by NILESH DADHICH 32

world's largest inter-enterprise software company and the world's fourth-largest independent software supplier, overall. The original SAP idea was to provide customers with the ability to interact with a common corporate database for a comprehensive range of applications. Gradually, the applications have been assembled and today many corporations, including IBM and Microsoft, are using SAP products to run their own businesses. SAP applications, built around their latest R/3 system, provide the capability to manage financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. The R/3 system runs on a number of platforms including Windows 2000 and uses the client/server model. The latest version of R/3 includes a comprehensive Internet-enabled package. SAP has recently recast its product offerings under a comprehensive Web interface, called, and added new e-business applications, including customer relationship management (CRM) and supply chain management (SCM). In early 2001, SAP, a publicly traded company, had 21,500 employees in over 50 countries, and more than 30,000 installations. SAP is turning its attention to small- and-medium sized businesses. A recent R/3 version was provided for IBM's AS/400 platform.

R/3 is the comprehensive set of integrated business applications from Systems, Application and Products in Data Processing, the German company that states it is the market and technology leader in business application software. R/3 replaced an earlier system, R/2, which is still in use. R/3 uses the client-server model and provides the ability to store, retrieve, analyze, and process in many ways corporate data for financial analysis, production operation, human resource management, and most other business processes. A recent release, R/3 3.1, makes it possible to get to the R/3 database and applications through Internet access and Web browsers. A sales representative can initiate the workflow for a sales order by filling out an electronic form on a laptop that will be "translated" into input for the R/3 system. Other interfaces such as Lotus Notes can also be used. The Web implementation adheres to the Workflow Client API standard of the Workflow Management Coalition (WfMC). A more recent version of R/3 adds features designed to speed product delivery by helping to manage the supply chain.

What Are the Steps in a Typical Task?

In the SAP System, a task consists of one or more screens on which you enter data. Some typical tasks might be creating customer master records, entering invoices, or creating sales documents.

To perform a task in the SAP System, you typically: 1. Choose the task that you want to work on. (See Choosing an Application and Task.) Created by NILESH DADHICH 33

2. Enter data on the initial screen of your task. Each screen contains input fields in which you enter data. Some fields require entries, others do not. 3. Go to the next screen. When you go to the next screen, the SAP System temporarily stores the data you have just entered

Enter data on the next screen of your task. You can: Return to previous screens to make changes Skip screens that are not required Go to a related task to get information or to complete additional screens

1. Repeat steps 3 and 4 until all the screens that make up your task are completed. 2. Save your data for the entire task. The system saves the data from all the screens you have completed.

Typing Data into an Input Field

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In the standard system, when you place the cursor anywhere in an empty input field, the cursor jumps to the beginning of the field. 1. Click anywhere in the empty input field. 2. The cursor jumps to the beginning of the field. 3. Type in the data. (If you need help determining valid entries for the field, see Possible Entries for a Field.)

Help on

If the data fills the input field, the cursor automatically moves to the next input field. Otherwise, the cursor remains in the input field until you press the TAB key to move it or you click another input field.

Going to Related Tasks

When you are working in a task, you can use certain menus and functions to go to other screens within your task, as well as to screens in related tasks. To find out which other screens and related tasks are available, check the Goto, Extras, and Environment menus in the menu bar. The contents of these menus change depending on the task you are doing.

Use Goto In order to Move among the different screens within your task Often you do not need to complete every screen in your task, or you may want to return to a screen to make changes. Extras Access additional information and fields Sometimes you need additional information to complete a screen. Or you may need to complete fields that are used less frequently. Environment Go to a related task Often, when doing a task, you need to do a related task. The related task can be either in your current application or in another application. For example, suppose you are checking an invoice (Invoice Verification application) and you want to compare it to the purchase order (Purchasing application). From the Environment menu, you can display the purchase order, check the data on the purchase order, and then return to the invoice.



Depending on the application, you can often move from one screen to the next by choosing or by choosing Enter. If you have not filled out all required input fields, however, this will not work.

Saving the Data on a Screen

When you are working in a task that consists of several screens, the system temporarily stores the data that you enter on each screen. After you complete all the necessary screens in your task, you need to save your data.

To save the data for a task you are working in, choose or press CTRL + S .

The system processes the stored data and saves it in the appropriate database.

If you are doing a task for the first time and you do not know which screen is the last screen, the system prompts you to save when you reach the last screen. For example, if you are on the last screen of your task and you choose Enter instead of choosing Save or Post, a dialog box appears. The dialog box prompts you to save your data.



Release 4.6: The New SAP GUI

The SAP graphical user interface (SAP GUI) consists of the technical features that enable you to exchange information with the SAP System (by entering data, choosing functions, and so on). For Release 4.6, SAP has made extensive changes to the SAP GUI design.

New Display Options
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The redesigned features include: Text fonts and colors Color schemes Sound and animation settings Additional options for data presentation

The new SAP GUI consists of two main screen areas. Screen header The screen header consists of: Screen body The screen body is the area between the screen header and the status bar. A typical example of an SAP screen (here, the SAP Easy Access initial screen) with the new SAP GUI is shown below: Menu bar Standard toolbar Title bar Application toolbar

Changes to the Screen Header

Screen Banner In previous releases, the title bar and menu bar were at the top of the R/3 window. As of Release 4.6, a screen banner replaces these two elements. The screen banner consists of: Menu bar GUI interaction buttons The Minimize, Maximize, and Close buttons are no longer in the top right-hand corner. They are now slightly to the left, beside the SAP logo:

You can also find these GUI interaction options in the dropdown menu that appears when you choose in the top left-hand corner.



Standard toolbar Command field By default, the command field is closed. To display it, choose the arrow to the left of the Save icon:

The command field appears: To hide it, choose the arrow to the right (outside) of the field. To display a list of the transactions you used last, choose the dropdown arrow right-hand end of the field. Other features at the

In the top right-hand corner, the ripple animation indicates data request activity: This was previously shown by a change of color in the status fields.

Changes to the Screen Body

Screen Elements and Layout The screen elements (group boxes, buttons, scrollbars, and so on) have a new design. The screen layout has changed. For example, a tab leader now guides the eye from field names to fields, and important screen areas are highlighted more prominently. Required input fields were previously identified by a question mark within the field. They now have a checkmark icon at the left-hand end: Status Bar System message identification (far left) o identifies error messages. o identifies affirmative system messages. Status fields (far right) By default, the status fields appear at the far right: .

To hide these fields, choose the arrow pointing to the right:



When the fields are hidden, the arrow points in the other direction:

To display the status fields, choose the arrow pointing to the left: Icons SAP has changed the graphical design of all icons used in the SAP System.

Changes to GUI Controls

SAP has also redesigned screen elements such as trees, tables, and tabs.

GUI Interaction Principles

The GUI interaction principles such as minimizing, maximizing, canceling, and dropdown menus remain the same.

The Menu Bar

Menus allow you to find a specific transaction when you do not know the transaction code. The menu is organized according to the task you are doing in the SAP System. Menus are dropdown; that is, when you choose a menu item, further options appear. A typical menu bar in the SAP System is shown below:

This following menus are standard on every SAP screen: Menu System Help Description Contains functions that affect the system as a whole such as Create session, User profile, and Log off. Provides various forms of online help. The layout menu, identified by at the far right of the standard toolbar, allows you to customize certain SAP window settings (for example, cursor position and the TAB function). Created by NILESH DADHICH 40

The following menus are standard in most SAP applications: Menu <Object> Description Usually named after the object you are currently working with, for example, Material. Contains functions that affect the object as a whole such as Display, Change, Print, or Exit. Allows you to edit components of the current object for example Select, Edit, and Copy. The Cancel option lets you leave a task without saving the data you have entered. Allows you to move directly to other screens of the current task. Also contains the Back option, which takes you back one level in the system hierarchy. Before going back, the system checks the data you have entered on the current screen, and displays a dialog box if it detects a problem.



The following menus may also appear: Menu Extras Environment View Settings Utilities Description Contains additional functions you can choose to complete the current object or an object component, but which you do not need regularly. Contains functions you can choose to display additional information about the current object. Allows you to display the current object in different views, for example, switching between a single-line and double-line display of a table. Allows you to set user-specific transaction parameters. Allows you to do object-independent processing, such as delete, copy, and print functions.

Sometimes not all of the available menus fit on one line in the menu bar. In this case, they wrap to the next line. The dropdown principle stays the same.



The Status Bar

The status bar provides general information on the SAP System and transaction or task you are working on. At the left of the status bar, system messages are displayed. The right end of the status bar contains three fields: one with server information, the other two with status information.

The status fields, shown below, are described from left to right:

At the far left, o o identifies error messages. identifies other system messages. to their left (or right, respectively). in the first status field:

To hide (or display) the status fields, choose

To display the following system information, choose o o o o o o System Client User Program Transaction Response time

The second status field displays the server to which you are connected. The third status field specifies your data entry mode. By clicking this field, you can toggle between the Insert (INS) and Overwrite (OVR) modes.

What Are the Steps in a Typical Task?




In the SAP System, a task consists of one or more screens on which you enter data. Some typical tasks might be creating customer master records, entering invoices, or creating sales documents.

To perform a task in the SAP System, you typically: choose the task that you want to work on. (See Choosing an Application and Task.)
1. Enter data on the initial screen of your task. Each screen contains input fields in which you enter data. Some fields require entries, others do not. (See Entering Data on a Screen.) 2. Go to the next screen. When you go to the next screen, the SAP System temporarily stores the data you have just entered. (See Moving Through Tasks.) 3. Enter data on the next screen of your task. You can: Return to previous screens to make changes Skip screens that are not required Go to a related task to get information or to complete additional screens

1. Repeat steps 3 and 4 until all the screens that make up your task are completed. 2. Save your data for the entire task. The system saves the data from all the screens you have completed.

When you are working in the SAP System, you may want to access information from the database. To do this, you use reports.

In this documentation, report refers to the report program, and list refers to the output that is, the results of the report. Some reports display information; others allow you to perform analyses.



A report must be started, or executed. In many cases, the SAP System automatically executes a report. Sometimes, however, you will want to execute a report yourself. In addition to report programs, the SAP System provides numerous reporting tools, each of which has its own set of procedures for executing report programs. This documentation describes report programs only. For an introduction to the SAP reporting tools, refer to the Reporting Made Easy guidebooks (Release 4.0B). You can find these guidebooks at: .

Background Processing
In background processing, the SAP System automatically runs any report or program that you can start interactively. When you schedule a job in the background processing system, you must specify: The ABAP report or external program that should be started The start time The printing specifications

The background processing system starts your job and runs the program(s) that you specify. Afterwards, you can check whether your job was executed successfully and display a log of any system messages.

Suppose you need to run a report of customers whose bills are overdue.You can: o o Start the report yourself from the ABAP Editor. If you do this, the system runs the report interactively, in a session at your PC or workstation. While the report is being processed, your computer response time may be slower. Or, you can have the background processing system run the report. To do this, you must create a background job that tells the system what you want it to do. The background processing system runs your "late bills" report according to your instructions. The list generated by the report is either printed directly or is waiting for you in the SAP output controller.You can also check in the background processing system whether the report ran correctly.

Running a report in the background does not tie up the SAP sessions you are currently working with.



When you start a report interactively, your current SAP session is blocked for further input for as long as the report runs. When you start the report in the background, running the report does not influence your interactive work with the SAP System. You can shift the execution of reports to the evening or other periods of low load on the SAP System. You can schedule a report or external program to run at any time that the SAP System is active. You can also set up reports to run automatically on a regular basis (for example, on the last day of each month). Background processing is the only way you can execute long-running jobs. To prevent tying up system resources with interactive sessions for long reports, the SAP System has a built-in time limit on interactive sessions. If a single ABAP report runs for more than 5 minutes continuously in an interactive session, the SAP System terminates the report automatically. The background processing system executes long-running ABAP reports more efficiently. Often, such reports are automatically scheduled for execution in the background. In this case, you do not need to schedule them for background processing yourself.

Various modules offered by SAP are as follows :-



DSCL is using Siemens Nixdorf servers for SAP (R\3). There are two servers for SAP namely; the Live Server & The Domain Server. At the live server all the actual configuration &transactions takes place. Other one is development server which is used for testing and development purposes. There is one primary domain controller and one backup domain controller. These all servers are at server room located inside cement control room. Created by NILESH DADHICH 45

Live Server :- It has the following characteristics --- The system has dual Pentium pro (200MHz) processor. There are 6 hard disks. Out of which 5 have the capacity of 9 GB each and one of 2 GB adding to 47 GB. Now one jukebox is also added with 3 hard disks each of 9 GB. Thus the total hard disk capacity of live server is now 74 GB. The operating system is Windows NT 4.0. The SAP software version R/3.0F is used. Database used is ORACLE version RAID 5 is used for protection against disk failure and recovery purposes. It is a hardware implementation of RAID. It takes 18 GB of hard disk. System has 1 GB of R.A.M. 512 KB of cache memory. One DAT drive for backup.

Development Server :- This server has following characteristics --- The system has dual Pentium pro (200 MHz) processor. There are 3 hard disks, with 9GB capacity each; thereby totaling to 27GB. Operating system is Windows NT 4.0. The SAP software version is R/3.0F. Database is oracle version RAM of system is 512 MB. Cache Memory of 512 KB.

Domain Server and Client Machines : There are 30 machines with 100MHz Pentium Processor. They have 16 MB RAM & 1.2 GB hard disk. There are 20 machines of 120 MHz Pentium processor and 16 MB RAM. Hard disk of these computers is 1.2 GB. There are 30 machines having PENTIUM MMX processors. The clock speed of these processors is 166 MHz. It has 32 MB RAM & 2.5 GB hard disk. There are 26 machines with 166 MHz PENTIUM,32 MB RAM &3.3 GB hard disk. There are 25 Pentium-II processors with clock speed of 233 MHz. They have 32 MB RAM and 4.1 GB hard disk.

Software : All servers are WINDOWS NT 4.0. All client machines use Windows 95 operating system. SAP version used is R/3.0F. Database is oracle . Application software used for desktops throughout the organization is MS-OFFICE-97. MS exchange is the mail server. I.I.S 3.0 is the intranet web server.

(Business Excellence Through SAP Technology)
It was proposed to procure & implement SAP R/3 on turnkey basis through SISL. This approach leads to following strategic advantage : Created by NILESH DADHICH 46

It would be used as a powerful tool for improved business practices. Implementation of enterprise wide solution brings massive IT culture along and across the organization. Internationally proven solution will lead to comprehensive up gradation of business practices to international level on an ongoing basis. Powerful tool for streamlining financial operations, cashflows, inventory control etc. leading to improved asset turnovers. Availability of current information for cost control. Lead to rationalization of manpower and greater value addition by each individual. Would reduce duplication, redundancy& inconsistency of information. Improved and transparent, so that functioning and empowerment is improved to bring business orientation in the organization. Improves image of organization. Availability of on line MIS& EIS. Changing mindset of people. More effective & timely decision making.

SAP R/3 package has been selected in view of following points : Best match with objectives. No long term threats for the package, since internationally acclaimed with thousands of installations worldwide. Hence, would survive in long run. Risk of time and cost overrun have been reduced substantially, by negotiating a turnkey project. Arrangement of cashflow is reduced in initial phase and payments are evenly distributed for project duration, covering three financial years. Best known BPR dealer. Investment protection &long term commitment.

SAP R/3 Software Package

The software purchased by DSCL consists of following functional modules :

S.No 1 2 3 4 5 6 7 8 9 10 11 12

MODULES Financial accounting/Asset accounting. Controlling cost center accounting (CO_CCA) Material Management (MM) Sales Distribution(S&D) Production Planning Process Industries (PP-PI) Plant Maintainence (PM) Quality Management(QM) Controlling Project System (PS) Cash Management(TR-CM) Enterprise Controlling(EC) Investment Management(IM)

The steps involved in implementation of the packages are as under : Created by NILESH DADHICH 47

AS-IS study Identification of gaps. Customization system. Testing of the system. Testing of the customized system. Training to the users. Integration of intra module. Live testing ---Identification of gaps in respect of customization and correction thereof. Parallel running of new system as well as old system. comparison of result from old system and new system. Live running---Running software solely. Stoppage of parallel running.

HARDWARE :- The items of hardware procured are as under ---Application server. Database server. Pentium computers. Printers. V-SAT. Networking cables, etc.

Introducing SAP
SAP was founded in 1972 and has grown to become the worlds fifth largest software company. SAP is a German company but operates all over the world. SAP is both the name of the company and the computer system. The SAP system comprises a number of fully integrated modules, which cover virtually every aspect of business management. The system has been developed to meet the increasing need of commercial and other organization that are striving for greater efficiency and effectiveness. Information technology is now at the very core of major organization around the world and its importance is beyond question. Market forces and customer expectations are putting continual pressure on organizations to improve performance of their system. While many software companies have looked at the areas of business and developed system to support those areas, SAP has looked toward the whole business. They offer a unique system that supports nearly all areas of business on a global scale. SAP provides the opportunity to replace large number of independent system that has been developed and implemented in established organization with one single modular system. Each module performs a different function, but is designed to work other modules. It is fully integrated, offering true compatibility across business functions.

System Architecture
The SAP system comprises a Basis system to which applications may be added. Each application has several components, which may be installed as required. A component will include a range of function, which may be mandatory or optional. Created by NILESH DADHICH 48

All of the function, at whatever level, can be directed to perform in a variety of ways by parameters that are amenable to adjustment by the user during the customizing process which precedes going live.

Basic Principles of R/3 Software

The standard business functions of the SAP R/3 system are able to execute the full range of business system processes used in almost every type of business enterprises. The scope of these functions extends from the conduct of controlled dialog with the user, through the process required to maintain an integrated data system, up to the higher order statistical and control functions expected in an enterprise-controlled system. The system extends not only in scope across the full range of data processing required by a complex corporate organization, but also through the implementation process by which the existing business system is described and developed into the target concept of what will be a new system supported by SAP system. The transaction with the system can range from data exchange to decision making, from software development to display design, from automatic processing to extensive financial and other reporting.

Multi-Tier Client Server Architecture

The R/3 system operates by using the client/server principle applied across several levels. It is highly modular and the principle is applied primarily through software so that the modes of interaction between the various clients and servers may be controlled. Dedicated servers may be linked by communication network and perform certain tasks without impugning the integrity of the data and processes of the central system.

Open System Principles

An open system allows the interplay and portability of application, data, and user interfaces by adhering to international standards for these elements.

International Open Interface Standards

SAP has a number of international standards embodied in it: TCP/IP for the network communication protocol and for other secure protocols RPC which is implemented in ABAP/4 as RFC Remote Function Call to enable other system to call R/3 functions and constitutes the R/3 open programming interface CPI-C - Common Programming Interface-Communication, for program-to-program communications across multiple systems SQL Structured Query Language, And ODBC, Open Database Connectivity, are the standard used for open data access to R/3 business data stored in relational databases OLE/DDE Object Linking and Embedding, is the primary standard for integrating PC applications with R/3 X.400/X.500, MAPI Messaging Application Programming Interface, And EDI, Electronic Data Interchange, are the standard for external communications Created by NILESH DADHICH 49

Open interfaces are also established to provide access to specialized applications

Transfer Protocol
TCP/IP: - The TCP/IP, Transmission Control Protocol/Internet Protocol, is used for handling communications within the client/server configuration of the R/3 system. LU6.2: - The IBM network protocol, LU6.2 is used to communicate between the R/3 system and mainframe host. SAP Presentation Protocol: - Whatever transfer protocol is used, the interchange at the user interface is under the SAP Presentation Protocol. Remote SQL: - Data is transfer between an application and a database server using the SQL, Structured Query Language, the forth generation language for manipulating data which is defined by ANSI, American National Standards Institute.

Application Methodology
Between the network of database servers and the front-end or presentation server of a SAP R/3, multi-tier client/server system is the network of business applications which control the logic of business transactions.

Business Transactions
A business transaction is a unit of work that makes sense to those concerned in the activity of the business. The business transaction has to be carried on a computer system. The combined business requirement and computer constraints dictate the logical function of a transaction.

Data Consistency: - A business transaction must not corrupt data. While a

transaction is undergoing an update should be reserved exclusively to the user controlling the transaction. Until the transaction is complete, no other user should be allowed access to the critical data object. Furthermore, until the transaction is complete, it should be possible for the user to backtrack through all the steps and undo any of the data entries or changes that he has effected. The database should be capable of being returned to how it was before the transaction begins.

Business Requirement:

- A computerized business transaction should be at least as subtle as the manual procedure it replaces. For example, if one is creating an order for manufacturing, one would be advised to reserve the material required at the same time.



Dynpros for Dialog Steps: - The SAP mechanism for controlling the steps of a business
transaction is the dynamic program or dynpro. Its function are to present the user with screen that make sense from the point of view of the work being progressed and to make sure that the logical data requirement of the business application are correctly met.

Runtime Environment
The R/3 runtime system is written in the ANSI-C language; and the R/3 application programs are written in ABAP/4. The dynpro dynamic programs are interpreted, not compiled. The runtime environment for R/3 application is made up of the two processors necessary to interpret the dynpros.

The ABAP/4 Data Dictionary

The R/3 runtime environment is based on two processors one the ABAP/4, one for dynpros. Both of them continually refer to the ABAP/4 Data Dictionary wherein are stored all the definition of all R/3 data structures. Semantic and technical information stored in the dictionary constitutes the universe of data used by the R/3 system.



FI - General Topics
Organizational Structure of Financial Accounting
Organizational Structure of Financial Accounting: Overview Organizational Structures in the R/3 System R/3 System Integration The Client Portraying the Legal Organizational Structure Internal Organizational Structures

Organizational Structure of Financial Accounting: Overview

Within the R/3 System, you can use both external and internal organizational units to represent your companys organizational structure. External organizational units generally serve external purposes and are often required by law (legal organizational units). Balance sheets and profit and loss statements are drawn up to satisfy such legal requirements. All other organizational units are for internal use.

Organizational Structures in the R/3 System

In the R/3 System, each enterprise area can define its own structure, which is initially independent of all other enterprises. For example, sales and distribution will define sales organizations, distribution channels and divisions (product groups). Similarly, the purchasing department will define purchasing organizations, evaluation levels, plants and storage locations. For Financial Accounting (FI) you must define an additional (independent) structure that satisfies external accounting requirements - this structure is represented by the company code or company . The balance sheet and the profit and loss statement are drawn up for the company code or company.

Enterprise areas and organizational structures

Enterprise areaOrganizational structure are Sales and Distribution,Sales organization,Financial AccountingCompany code,LogisticsPurchasing organization, ControllingControlling area, Human ResourcesPerson groups,General data used by all company codes, and by both the sales and purchasing organizations, for example, is stored at a higher level, that is at client level . This means that data valid for all enterprise areas needs to be stored only once. The following describes the organizational units in FI. For further information on the organizational structures of other enterprise areas in the R/3 System, refer to the manuals for these application components.

R/3 System Integration

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The individual applications in the R/3 System are fully integrated. All data that is used across applications is stored at client level. Sections of customer and vendor master records, for example, are stored centrally and used in the applications Financial Accounting (FI), Sales and Distribution (SD) and Materials Management (MM). Data is also exchanged between the individual applications so that business transactions do not need to be entered more than once. For example, invoices that are posted in SD are transferred to FI, and data that is entered in FI is passed on to other application components. If you use Cost Center Accounting (CCA), for example, you can specify a cost center directly when you enter a document, to which the amount entered in the line item is to be posted. Every enterprise area in the R/3 System can define its own structure. To enable data to be transferred from one application component to another, you must therefore specify how each structure is to be derived from the others. You need enter this information once only in the system - no further specifications are required when you come to actually transferring the data. These specifications must be entered for the following enterprise areas, where implemented: Sales and Distribution Materials Management Controlling Human Resources Treasury



The Client
The client is the highest level in the R/3 System hierarchy. Specifications that you make or data that you enter at this level are valid for all company codes and for all other organizational structures, obviating the need to enter this information more than once. Maintaining this information centrally ensures standardized data. Each client is a self-contained unit with separate master records and a complete set of tables. A client key is used in all master records, which ensures that they are stored per client. Users must enter a client key when they log on to the system. In so doing, they are telling the system the client in which they wish to work. All the entries you make are stored per client and data processing and analysis is also carried out per client. This means that you cannot include customer accounts from different clients in one dunning run. Access authorization is assigned per client. You must create a user master record for each user in the client where he or she wishes to work.



Portraying the Legal Organizational Structure

The law stipulates the circumstances under which business must keep accounts and produce a balance sheet and a profit and loss statement. Every company must have an organizational unit that represents its legal side. A customers receivables, for example, are dependent on this organizational structure. The organizational levels for which these requirements exist are represented by two organizational units company code and the company .

The Company
A company is the smallest organizational unit for which individual financial statements such as balance sheets and profit and loss statements can be created as required by the relevant commercial legislation. A companys financial statement also forms the basis of a consolidated financial statement, created where companies are consolidated. The topic "Consolidation at legally independent companies level" topic is dealt with in the Consolidation documentation. A company can include one or more company codes. Although they can use different currencies, all the company codes defined for a company must operate using the same chart of accounts and same fiscal year.

The Company Code

Before you can use the Accounts Receivable (FI-AR), Accounts Payable (FI-AP) and General Ledger (FIGL) application components, you need a company code as a minimum structure. All other organizational units such as company or business area are optional. The company code is the smallest organizational unit for which a complete, self-contained set of accounts can be drawn up for external reporting purposes. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement. More than one company code can be set up per client, enabling you to carry out accounting for several separate companies simultaneously. At least one company code must be created. A legally independent company is normally represented by one company code in the R/3 System. The definition of the company code, however, also states that it represents a dependent operating unit according to commercial law. This is necessary if this operating unit is based in another country and therefore has to meet the currency and tax-based requirements of this country. In Financial Accounting, business transactions are always entered, saved and processed at company code level. Likewise, accounts are also always managed at company code level. Further levels can be created by using internal organizational structures. All company-specific specifications such as how payment transactions are to be carried out, are made at company code level. Customer and vendor master records have a company code area, which contains data that is only relevant to one company code. This includes, for example, data representing the business relations between the company code and a customer or vendor. The terms of payment that are to apply for each customer or vendor are assigned in the company code area of the master record. Each G/L account master record contains data (in the company code area) required to conduct accounting for this company code, for example the currency in which the account is to be managed. General specifications for the G/L account master record (such as whether a G/L account is a balance sheet or a profit and loss account) that apply to several company codes are contained in the chart of accounts. Although each company code uses only one chart of accounts, this chart of accounts can be used by more than one company code.

Internal Organizational Structures

In addition to those organizational structure you need in order to meet certain legal requirements, other structures such as business area, credit control area and dunning area exist that serve internal purposes only. These structures are optional and are explained in the following topics:



The Business Area The Credit Control Area The Dunning Area

Definition of a Business Area

Business areas can be defined independently of other enterprise area structures (like sales and distribution or purchasing) by entering a four-character alphanumeric key and the name of the business area. To post to a particular business area, you enter its key in the Business area field when entering the business transaction. However, the business area can also be derived from other account assignments, such as the cost center. To do this, you must define the business area in the master record of the cost center. In this instance, you do not need to make an entry in the line item. You can find further information on this topic in the documentation for the Controlling application. The system updates G/L account balances separately, according to business area. The business area is saved in the individual line items and can be used for reporting purposes. The defined business areas are valid for all company codes. Therefore, they must have the same meaning in all company codes. If you enter an intercompany document, you can post to different business areas across all company codes. As a result, any number of combinations of company code and business area are possible.

If you want to draw up a balance sheet and a profit and loss statement by business area, you must make sure that the Business area field is contained in all the line items. To do this, you specify in the system that you want to draw up business area balance sheets for a company code.

Definition of a Credit Control Area

You define a credit control area according to the areas of responsibility for credit monitoring. For each credit control area in the system, you enter a key , a name , and the currency in which the credit limit is to be managed in the credit control area. You select a four-character alphanumeric key. In the simplest case, each company code corresponds to one credit control area. In this case, we recommend that you use the same key for the credit control area as for the company code. Each credit control area carries out credit control for one or more company codes and to enable it to do this you must assign the company codes to the respective credit control area.

Customers can be created in different company codes - the credit control area responsible for a given customer depends on which credit control area the company code is assigned. Customers that are created in company codes with a common credit control area are controlled by this one control area rather than by company code.


The central task of G/L accounting is to provide a comprehensive picture of the accounts involved



General ledger is fully integrated with other modules of SAP such as Materials Management, Sales and distribution, Plant maintenance, Production and Planning and subsidiary ledgers like Accounts Payable, Accounts Receivable and Fixed Assets. All business transactions recorded in individual account can further be analyzed through various reports provided in Information System.

The SAP FI General Ledger has the following features: Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger accounts (reconciliation accounts).Simultaneous updating of the general ledger and cost accounting. Real-time evaluation of transactions and reporting on the current accounting data, in the form of account displays, financial statements with different balance sheet versions and additional analyses. The result of all the above is that the general ledger can be regarded as a complete and reliable record of all the business transactions undertaken by our organization. GENERAL INFORMATION



Various fields available on data entry screen in FI are briefly described as under :- Each transaction posted in FI is stored as a document and Each FI document has two parts i.e Document header and Line item. Document header contains commen information for the document and line item contains information specific to the account used in that particular line item.



Document date in document

The document date is the date of the document being entered / processed
Document type

The document type classifies accounting documents. It is noted in the document header. Attributes that control the entry of the document or which are themselves stored in the document are stipulated for each document type. In particular, the number range assigned to the relevant documents is determined on the basis of the document type. The following list contains document types configured for DSCL. Doc.Type AA AB AF AN DA DG DR DZ EX KA KG KN KP KR KZ
Posting date in document

Asset Posting Accounting Document Depreciation Voucher Net Asset Posting Customer Document Customer Credit Memo Customer Invoice Customer Payment External Number Vendor Document Vendor Credit Memo Net Vendors Account Maintenance Vendor Invoice Vendor Payment

Date which is used when entering the document in Financial Accounting or Controlling.
Accounting document number

The document number is the key the system uses to access the accounting document. The document number is unique per company code and fiscal year. When entering an



accounting document, the document number is determined by the system from a predefined area (number range).
Fiscal period

Account transaction figures are updated per fiscal period within the fiscal year. A maximum of 16 fiscal periods can be updated. You define how a fiscal year is divided into fiscal periods per company code. In our case fiscal periods have been defined as 16 fiscal periods. Periods from 1 to 12 are calender months and the remaining periods ( 13-16 ) have been defined as special periods for last month i.e March. These special periods are used for Accounts closing. In the case of accounting documents, the fiscal period to be updated is either taken from the posting date or, if a special period is to be updated instead of the last period of a fiscal year, entered manually.
Currency key

Currency key for amounts in the system i.e Legal means of payment in a country.
Exchange rate

Exchange rate used for translating from foreign currency to local currency. When entering documents, you do not need to specify the exchange rate unless it differs from the rate in the exchange rate table.
Translation date

Translation date for determining the exchange rate which is to be used for translation. The exchange rates are stored in the system. You should only specify the date when entering a document if it is not the same as the posting date.

The reference document number can contain the document number of the customer/vendor. However it may contain a different value. Document header text The document header text contains explanations or notes which apply to the document as a whole, that is, not only for certain line items.
Clearing text

This text is copied into all clearing entries which are created within the current processing. Line Item
Posting key



In this field, the posting key with which the next document line item should be entered, is specified.

Account which is to be posted to with the next line item. You can enter a matchcode instead of the account number.
Special G/L indicator

Indicator which identifies a special G/L transaction. Special G/L transactions include down payments and bills of exchange. The following list contains special G/L indicators configured for DSCL. Spl.GL Ind. Description Specific to Customers A Down Payment B Bill of Exchange Receivable E Reserve For Bad Debt F Down Payment Request G Guarantee Received-Customer H Security Deposit From Customer L Letters of Credit P Payment Request Q B/E Residual Risk R B/E Payment Request S Check/Bill of Exch. T Down Payment W Bill of Exch. (Bankable) Z Interest Due Specific to Vendors 1 Guarantee -OBC Kota 2 Guarantee -BOB Kota 3 Guarantee -Banque Indo Suez 4 Guarantee- PNB Kota 5 Guarantee received from Vendor A Down Payment for Current asset B Down Payment for Capital Items C Document Through Bank D Discount E Unchecked invoice F Down payment request G Sec.Dep Rec-Cont/TRPT/Empl. H Sec Dep Given-Vendors I Intangible asset down payment L Letters of Credit M Tangible asset down payment O Amortization down payment
Created by NILESH DADHICH 60

Spl.GL Ind. P S T V W
Asset transaction type

Description Payment request Check/bill of exch. Employee-Travel Advance Stocks down payment Bill of exch. (bankable)

The transaction type in Asset Accounting classifies the business transaction. The transaction type controls various system activities when business transactions are posted.
Amount in foreign currency

Where currency other than INR used, system displays two field for Amount i.e. Amount and amount in local currency of the line item in document currency. You must fill the foreign currency in the amount field in case currency used other than INR. During document entry, enter the amount manually. In the last line item, you can specify a '*'. The system will then enter the balance of the line items entered prior to the last item as the amount for the last item. Amounts you enter may be changed automatically by the system if the following postings are made: Tax adjustments Cash discount adjustments when posting net.
Amount in local currency

Amount of the line item in document currency. During document entry, enter the amount manually. In the last line item, you can specify a '*'. The system will then enter the balance of the line items entered prior to the last item as the amount for the last item.
Tax code

The tax code represents a tax category which must be taken into consideration when making a tax return to the tax authorities. Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code. Procedure For tax-exempt or non-taxable transactions, you should use tax codes with a 0 percentage rate if the corresponding transactions are to be displayed in the tax returns. Note



You must define new tax codes if tax rates are changed by the state. The old codes with the old tax rates must remain in the system until no more open items which use this tax code exist.
Jurisdiction for tax calculation - tax jurisdiction code

The tax jurisdiction is used for determining the tax rates in the USA. It defines to which tax authorities you must pay your taxes. It is always the city to which the goods are supplied.
Calculate Tax

If you select this field, the system calculates the taxes automatically during simulation or posting.
Cash Discount

Indicator that no cash discount is granted for this item. Procedure If a cash discount is not granted for the entire invoiced amount, the system can determine the amount qualifying for cash discount automatically by means of the offsetting entries. To enable the system to do this, you must mark all offsetting entries as being either liable or not liable to cash discount.
Withholding tax base amount

Definition Portion of the invoice amount which is subject to withholding tax

Withholding tax-exempt amount (in document currency)

Definition Portion of the invoice amount which is not subject to withholding tax.
Withholding tax code

The withholding tax code can be compared to a tax sub-category which must be taken into consideration when reporting tax to the tax authorities. The tax codes are unique per country. For each tax code, the tax rate, the portion of the invoices to be taxed and further properties are stored in a table.
Business area

Key indentifying a business area A business area is an organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization. Financial accounting transactions can be allocated to a specific business area.

Cost center
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Key uniquely identifying a cost center.An organizational unit within a controlling area that represents a separate location of cost incurrence. The definition can be based on functional requirements, allocation criteria, activities or services provided, physical location, and/or area of responsibility. The following list contains cost centres configured for DSCL. Short text KTT-CALK-CHLN-MAINT KTT-CALK-CHLN-MKTG KTT-CALK-CHLN-PROD KTT-CALK-CIVL-CSOD KTT-CALK-CSDA-MAINT KTT-CARB-ACTL-PROD KTT-CARB-CARB-PROD KTT-CARB-CARB-SHUTDN KTT-CEMT-CIVL-CEMT KTT-CEMT-CLKR-PROD KTT-CEMT-CRSH-PROD KTT-COBA-OVHD-ACCT KTT-COBA-OVHD-ACO KTT-COBA-OVHD-ADMN KTT-COBA-OVHD-CLNC KTT-COBA-OVHD-CNTN KTT-COBA-OVHD-CPUR KTT-COBA-OVHD-EMPS KTT-COBA-OVHD-GENL KTT-COBA-OVHD-HRD KTT-COBA-OVHD-HRM
Profit center

CoCd 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

CtrC T G F T T F F T T F F H H W H H M H W H H

Cost ctr 340202 340203 340201 340584 340502 320301 320201 320585 330584 330401 330201 380540 380510 380505 380516 380513 380518 380514 380504 380511 380508


Key that uniquely identifies the profit center in the current controlling area. The business object "Profit center" is an organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. The following list Profit Centers configured for DSCL. Profit ctr DMWTR-KT MOP-PCTR PESTICIDES POP-DL
Payment Terms key

COAr 1000 1000 1000 1000

Person In Charge KK Kaul Sovan Chakrabarty Sovan Chakrabarty RK Sharma

Profit Center Text DM Water Muriate Potash Pesticides Plaster of Paris



Key for defining payment terms composed of cash discount percentages and payment periods. Use It is used in sales orders, purchase orders, and invoices. Terms of payment provide information for:Cash management Dunning procedures Payment transactions Data can be entered in the field for the terms of payment key in various ways as you enter a business transaction: In most business transactions, the system defaults the key specified in the master record of the customer/vendor in question. In some transactions (for example, credit memos), however, the system does not default the key from the master record. Despite this, you can use the key from the customer/vendor master record by entering "*" in the field. Regardless of whether or not a key is defaulted from the master record, you can manually enter a key during document entry at: Item level in sales orders Header level in purchase orders and invoices Days/percent Days for first cash discount Period within which a payment must be made in order to take advantage of the first cash discount terms.
Baseline date for due date calculation

Date to which the periods for the cash discount deadline and the due date for net payment refer. This is the case for line items in open item accounts. For line items in G/L accounts, the item is due immediately on this date because there are no cash discount specifications. During document entry for open item accounts, the date is proposed, if necessary. For this, a terms of payment key must have been specified in the customer's/vendor's master record for which a default value is requested in the document.
Payment block

Block key used to block an open item or an account for payment transactions.
Asset Retirement
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Asset retirement indicator is click, if asset is to be retired fully / partially.

Value date

Use The value date is used in bank accounts and bank sub-accounts.
Allocation number

The allocation number is an additional information reference field in the line item. The program can display the account line items sorted according to the content of this field.Either the system creates the field contents according to predefined rules or you enter them manually.
Item text

In this field you can store an explanatory text for the line item. A Plus "+" sign in line items after first line item copies the text of the previous line in the current line item. G/L MASTER DATA
Users are not required to create General Ledger Account masters but with a view to give requirement for creation of G/L Account master, it is desirable to understand of the following important entities of a G/L Account master. The G/L Account master information is divided in two parts. Part of the information is contained in "Chart of Accounts Area" and information specific to a company is contained in Company Code Specific Area. DATA IN THE CHART OF ACCOUNTS AREA :

The G/L account number and G/L account name ( Short description 20 Chars. And Long descrption as 40 Chars. ) Whether the account is a balance sheet account or an income statement account Data that controls the creation of a master record in a company code, such as the Account Group which specifies fields for entry screens and number interval for selecting account number.
DATA IN THE COMPANY CODE-SPECIFIC AREA Main fields in the company code area of a G/L account master record: CURRENCY You specify the currency of the account. When you post business transactions to this account, the system always updates the account balance in the account currency. BALANCES ONLY IN LOCAL CURRENCY



Set this indicator for clearing accounts to which you post in different currencies if you want settlement to be possible without any further difference postings when the amounts in local currency balance to zero. TAX CATEGORY In G/L accounts for taxes on sales/purchases, you can specify the tax type (input or output tax) that can be posted to the account. If a G/L account is not subject to tax on sales/purchases, you must not fill the field. POSTING WITHOUT TAX PERMITTED You use this flag if you want to simultaneously post taxable and non-taxable items to an account. RECONCILIATION ACCOUNT FOR ACCOUNT TYPE In this field, you mark G/L accounts as reconciliation accounts. When you post to a customer or vendor account, the system automatically posts to a reconciliation account. Enter a D in the field Reconciliation account for act type to denote customers. Enter a K in this field to denote vendors. LINE ITEM DISPLAY If you manage an account with line item display, you can display all items posted to the account. OPEN ITEM MANAGEMENT The items in an open item account are marked either as open or cleared. You should manage G/L accounts on an open item basis if you need to check, for a particular business transaction, whether an offsetting posting has already been made.

Taxes: Overview
This section deals with taxes levied on invoiced amounts. Specifically, these are: Taxes on sales/purchases. Taxes on sales and purchases are levied on every sales transaction in accordance with the principles of VAT. This applies to input and output tax, for example. Input tax is calculated using the net invoice amount and is charged by vendors. Output tax is calculated using the net price of products and is charged to customers. Companies can offset input tax against output tax, paying the balance to the tax authorities. If input tax exceeds output tax, the company is due a repayment of tax and vice versa. Tax authorities can set a nondeductible portion for input tax which cannot then be claimed from the the tax authorities. Additional taxes. Investment tax (Norway) and clearing tax (Belgium) are examples of additional taxes that must be posted in addition to taxes on sales and purchases. Sales taxes. These includee sales tax and use tax. Sales transactions that are taxed must be kept strictly separate from sales transactions that are not taxed. In general, goods that are used in production or for resale to a third party are procured untaxed, that



is, the vendor does not calculate tax on the sale of these goods (sales tax). Procurement transactions for individual consumption, on the other hand, are taxable (use tax). The principle of sales tax precludes the possiblity of offsetting input tax against output tax. The vendor is obligated to pay the taxes to the tax authorities. The system calculates sales tax based on material and customer location and posts it in Sales and Distribution (SD) and Materials Management (MM). If customers or vendors are exempt from taxation, you can specify this in their master records by entering the appropriate indicator. Withholding tax. In some countries, certain vendors must withhold a portion of the invoice amount and pay or report it to the tax authorities. Taxes on sales/purchases, additional taxes and sales taxes are determined and calculated using condition methods, which require a calculation procedure, a tax code, in some cases a jurisdiction code and certain other specifications. These taxes are posted directly during document processing. Withholding tax, on the other hand, is not determined using condition methods nor posted during document processing, but dealt with once outgoing payment is made.

Types of Taxation
There are basically two types of taxation that can be processed in the SAP System: Taxes at federal level Taxes below federal level Hybrid types or taxation are also possible.

Taxes at Federal Level

In most European states, in South Africa, and in Australia, for example, taxes are levied by a federal authority. Tax percentage rates are defined at federal level and local differences do not exist.

Taxes Below Federal Level

In other countries, taxes are levied at local level when selling goods (USA, Brazil, and so on). The local tax authorities can exist at state level, county level, or town level. Taxes can be levied at lower levels again e.g. fire department district, school district, local traffic area. Such taxes are then paid directly to these tax authorities. In some cases, however, these taxes are also payable to higher-level tax authorities, in which case they are apportioned between the two levels. Sales taxes are a typical example of tax below federal level. Since sales tax is usually multi-tier, it is processed using a tax jurisdiction code in addition to the tax code.

Taxes on Sales/Purchases, Sales Taxes and Additional Taxes

The Accounts Receivable, Accounts Payable and General Ledger application components support the calculation and posting of tax at the following levels: the tax amount can be determined upon request. the tax amount is checked by the system at document level. the tax amount is posted to the tax accounts automatically. for cash discount postings and other deductions, a tax adjustment can be performed automatically upon request.



Master records of FI-GL Modules

G/L Master Record in the Chart of Accounts
G/L account master data in the chart of accounts area contains information about the G/L account that is valid for all company codes. The chart of accounts area also contains data that controls how a G/L account is created in the company code-specific area.

To make certain that company codes using the same chart of accounts can also use the same G/L accounts, a master record is created for the G/L account in the chart of accounts and in the company code-specific areas.

The following information is contained in the chart of accounts area of a G/L account master record. The chart of accounts The account number and account name (short and long text) The indicator that specifies whether the account is a balance sheet account or an P&L statement account. At the start of a new fiscal year, the balance of a balance sheet account is carried forward to itself. With P&L statement accounts, you must specify the account to which the profit or loss is carried forward at the end of a fiscal year. The account group With the account group, you group similar accounts together and control the creating and changing of master records. They control The account number interval in which the account number must lie. The screen layout for creating G/L accounts in the company codespecific area. This means that you can define whether fields require an entry, may have an entry, or are hidden when creating or changing a master record in the company code-specific area. Entries which are necessary for consolidation are trading partner .

Account group
The account group is a summary of accounts based on criteria that effects how master records are created. The account group determines: The number interval from which the account number is selected when a G/L account is created. The screen layout for creating G/L accounts in the company code-specific area

When you create a G/L account in the chart of accounts area, you must specify an account group. Using the account group, you can group the G/L accounts according to functional area. For example, you can group all bank accounts, postal giro accounts, and cash in the account group FIN. for "liquid funds". Created by NILESH DADHICH 68

The account group also defines the set up when creating a G/L account in the company code and chart of accounts. By defining the number interval and the screen layout, you simplify G/L account creation by reducing the number of entry fields.

Field Status Definitions for Transactions

You can also determine the status of a field group dependent on the transaction with which the master record is edited. This is possible for the following editing functions. Display Create Change For each editing function, you can specify the field status for the company code-specific area of a G/L account.

G/L Account Master Records in the Company Code

The company code specific area of a G/L account contains data that is only valid for one company code, such as the currency in which the account may be posted.

Before you can make postings to a G/L account, you have to create a master record in your company code for the account. The G/L account must already be in the chart of accounts

When creating a G/L account in a company code, you have to make several specifications. These specifications are saved in the G/L account master record and will affect future transactions, such as postings to this G/L account. Some of the specifications have serious impact on future work and are described in the following sections. Before you make your specifications, you should read these sections.

Defining the Currency

When creating a G/L account in the company code, you must define the currency to be used when posting to this account. There are two basic ways to do this: Enter the of your company code. The system automatically provides the local currency that you defined when creating the company code as the default value. The G/L account can be posted to in any currency. When you make a posting in a foreign currency, the amount is translated into the local currency. The transaction figures are kept as follows: In the local currency, that is, the total of all the posted amounts in the local currency In the individual currencies, that is, the total of all the posted amounts in various currencies. Enter. The G/L account can only be posted to in this currency. The transaction figures and the account balance are kept in the foreign currency .

Defining "Balances in Local Currency Only"

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When creating a G/L account in a company code, you can decide whether the transaction figures should only be kept in the local currency for this account. You have to set this indicator for clearing accounts you use to clear line items in various currencies with one local currency amount and without posting any exchange rate differences that may occur.

Defining the Tax Category

In tax accounts, you can specify the type of tax on sales/purchases (input or output tax) that can be posted to the account. In rare cases, it is useful to assign a certain tax code to an account. You enter the tax code in the master record in this case. Only this tax code can be used when posting to this account. If a G/L account is not tax relevant, you may make no specification in this field. For more information on sales tax and other taxes in your system, see the documentation FI General Topics.

Defining "Open Item Management"

If you set the "Open item management" indicator in the master record for an account, the line items in this account is marked as open or cleared. The balance of an account with open item management is equal to the balance of the open items. General ledger accounts are kept with open item management if you need to check whether there is an offsetting posting for a given business transaction.

Defining "Line Item Display

If you set the "Line item display" indicator in the master record for an account, all line items that have been posted to this account are displayed if they have not been archived. You use line item display to display the document line items from the account. For line item display, the system lists all the line items for an account. For accounts with line item display, the system uses special indices to define the link between the account and the document. For accounts with many transactions, a corresponding number of indices must be defined and read for line item display. This means that when posting items to such accounts and displaying line items, additional storage space and system time are required. Therefore, you should not use line item display for the following accounts: Reconciliation accounts (detailed information is contained in the subledger) Sales revenue accounts (detailed information in the Sales and Distribution application module) Material accounts (detailed information in the "Materials Management" application module) Tax accounts (detailed information is not needed since tax data is contained and checked in the document).

Defining the Field Status Group

You use this field to define which fields are displayed when you post accounting transactions to a G/L account. A field may have one of the following statuses: hidden (suppressed) Created by NILESH DADHICH 70

Entry required (required field) Ready for input (optional field)

Functions for Editing G/L Account Master Records

G/L account master records consist of a chart of accounts area and a company code-specific area (see also). You can edit G/L account master records as follows: In the chart of accounts only In the company code-specific area only Centrally for both areas You have two ways to organize the editing of G/L account master records: Central organization You can create a uniform chart of accounts for all company codes. In such a case, you create all G/L account master records in the chart of accounts in one step. Each company code can then add its own company code-specific data to the G/L account master record at a later date. Employees in the company codes are not able to edit the chart of accounts area. You can also create the entire master record in one step, including the company codespecific area. In this case, employees in the company codes have no authorization to create a G/L account master record (neither in the chart of accounts area nor in the company codespecific area), but are able to change master records. Decentral organization The employees in the various company codes edit the G/L account master records in both the chart of accounts area and in the company code-specific area. The employees can edit master records centrally in one step.

Creating and Editing G/L Account Master Records

You have various options for creating G/L account master records in the system: Using a reference You can copy G/L account master records from an existing company code and then change them. Use this procedure if you want to use a chart of accounts included in the standard system or if you want to use an existing chart of accounts as a reference. The advantage of using a reference is that the account assignment is also copied. This ensures the integration of General Ledger Accounting with other application components. Data Transfer Workbench You can copy G/L account master records from an external system and then change them. Use this method if you have your G/L accounts in a non-SAP system and want to transfer them to your SAP System. Copy G/L accounts You can copy G/L account master records by copying a chart of accounts and then the company code. You should only use this method if there is a chart of accounts in your system that exactly meets your requirements. If you need to make changes to the chart of accounts, your should complete this using a reference method. Create manually You can create G/L accounts master records by manually creating each individual G/L account.



The method is quite time consuming. You should only use it if you are certain that the standard SAP System nor any other system contains a chart of accounts which you could use as a reference.

Process Flow
You have various options for organizing the editing of G/L account master records: For more information, see You can find the function for creating G/L account master records in Financial Accounting Customizing under General Ledger Accounting G/L Accounts Master Data . 1. Create your G/L accounts. You have two options: If you want to use a chart of accounts included in the standard system as a reference, or if a chart of accounts is already in your system, use the create with reference method. To do this, use the Create G/L Accounts with Reference activity. You can copy the G/L accounts and the related account assignments. Before creating the G/L accounts, you can change the account numbers and names. If you have G/L accounts in a non-SAP system, you can transfer these G/L accounts to your SAP System. To do so, select the Data Transfer Workbench. 2. You can modify the G/L account master records that were created or transferred. The following functions are available for doing this: You can carry out systematic changes to multiple G/L accounts, such as changing the P&L account type of several P&L accounts. To do so, select the desired function under Change G/L Accounts Collectively. You can change the master record of a single G/L account. To do so, select the desired function under Edit G/L Account.

Changing G/L Account Master Records

You can change G/L account master records in the chart of account and in the company codespecific areas. Changes in the chart of accounts area apply to the respective master record in all company codes.

Changes in the chart of accounts area You can change all fields in the chart of accounts area of a G/L account master record except for the account number. The following special notes are valid when changing G/L account master records in the chart of accounts area. As long as no master record was created in the company code for the entry in the chart of accounts, you can change the chart of accounts entry. If you change the account group, it may be necessary to maintain all master records in the company codes. For more information, You can change the specification whether an account is a balance sheet account or an income statement account. After making this change, you should carry out a balance carried forward. You can find further information on this in FI Closing and Reporting.

Search Function: G/L Account Master Records

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The search function allows you to search for the number of a G/L account. The system saves certain fields of the G/L master record in a matchcode. You can then search for the G/L account using the fields contained in the matchcode. If you want to search for a number, you place the cursor on the field Account number. The Possible entries pushbutton (F4), provides an overview of the matchcodes available: The matchcode object specifies the database tables and, based on this, all the fields that are required for the matchcode IDs. From the large number of fields available, only the desired ones are selected for the matchcode IDs. The matchcode ID specifies the fields that are used for a matchcode and how these fields are stored and output for the matchcode. It is defined in the Data Dictionary. The matchcode consists of a series of master record fields that are entered in the system for each G/L account master record. You can search for the master record using these fields. In other words, the matchcode is an extract from the master records used for searching. The standard system contains matchcode IDs for G/L account master data and for sample accounts. You should check whether you can use these. Create your own matchcodes if necessary.

Sample Account
A sample account is a master record containing data that is transferred when you create G/L account master records in the company code area. The following is true for sample accounts: Sample accounts are dependent on the chart of accounts. You must not enter sample accounts in the chart of accounts as G/L account master records. Sample accounts have an effect only when you create a master record. Sample accounts are assigned to the corresponding G/L account master records in the chart of accounts. You can create as many sample accounts as you require. You cannot post to sample accounts. You assign a sample account to the required G/L account master record in the chart of accounts When you create a G/L account master record in the company code, the system transfers the data from the sample account. Sample accounts are dependent on the chart of accounts. As a result, you can use a sample account only in the chart of accounts in which it is created. The sample account BANK has been created for the chart of accounts AAAA. It can be assigned to one or more G/L accounts in this chart of accounts only. It cannot be used for any other charts of accounts.

The result of a posting in Financial Accounting. There are two types of documents: Original documents and processing documents. Examples of original documents: Receipts Invoices Checks Bank statements Examples of processing documents: Accounting documents Sample documents Created by NILESH DADHICH 73

Recurring entry documents The accounting document represents the original document in the system. The other processing documents can be used to simplify document entry. The document remains as a connecting unit in the system until it is archived.

You can only check whether postings are correct in the compact journal and general ledger by means of documents. Every posting must therefore have a document. Documents are the link between the business transaction and the posting in accounting. Only complete documents can be posted. A document is complete when its debit and credit items balance to zero. You must enter the minimum account assignments designated by the system: For example, document date, posting date, document type, posting key, account number, and amount. Data must also be entered in all other fields that were defined as required fields when making system settings.

A document consists of a document header and at least two line items.

Document Header
The part of a document that contains information valid for the whole document, for example, document date and number. It also contains controlling information such as the document type.

Entering Document Headers

The document header contains data that applies to the entire document. To enter a document, you must first enter the document header.

To enter a document in General Ledger Accounting, from the SAP R/3 screen choose Accounting Financial accounting General ledger Document entry G/L account posting or another general ledger business transaction. To enter a document in Accounts Receivable or Accounts Payable, from the SAP R/3 screen choose Accounting Financial accounting Accounts receivable/Accounts payable Document entry Invoice or another business transaction. 3. On the G/L Account Posting: Header Data screen, enter the required data. Depending on your settings in Customizing, the following entries are required: Document Type For some document types, you also have to make entries in the fields Reference and Document header text. Document Number Company Code Posting Date Currency Trading Partner Business Area Other Document Header Fields In the document header you can edit the following fields: Reference Doc.header text 2. Created by NILESH DADHICH 74

Cross-company code no. Trading area

Document Date The document date is the date the business transaction (such as a
transfer posting, or the issue date of an invoice or payment) took place. The document date can be different from the posting date, which is the date that G/L account balances or the customer/vendor balances are updated

Document Number
Depending on the document type, document numbers are either assigned internally by the system or entered by you externally. Each document type has a specific number range from which the document number is selected. If the number range determined by the document type stipulates external number assignment, enter the document number here. The system then checks whether the number is within the permitted number range, and that it has not yet been assigned.

Company Code
When you enter a document, you must always enter a company code. The system defaults this company code in all subsequent documents you enter that day.

Posting Date
The system automatically defaults the system date as posting date. When you post the document however, you can enter any other date (past or future) from a permitted posting period. The posting date determines the posting period. The periods that are permitted for posting are determined by your system configuration. You can also post to periods in a previous fiscal year. If you do this, the carry forward balance for the current year is automatically corrected in special periods. To enter a transfer posting at the end of the fiscal year, you have to enter a date valid in the last posting period, and then enter the special adjustment posting period. Depending on the configuration of your system, the values 13 to 16 can be entered for the special periods. For example, to enter a transfer posting at the end of a fiscal year that corresponds to the calendar year, enter a posting date in December and then a special period, such as 13, in the Period field.

Line Items
The part of a document that contains information about an item. This includes an amount, an account number, the credit or debit assignment, and additional details specific to the transaction being posted.

You can enter terms of payment, a cost center, or an explanatory text in a line item for example.



ILLUSTRATION OF A REPORT IN ABAP/4 LANGAGUE IS SHOWN:* Run Frequency : yearly * Development Class : Z080. * Transaction Code : ZHR_BPA_POLICY. * Date Created : 08.02.2003 * Created By : Nimesh Jhanwar. * Location : DSCL ISD-BSS. * CTC : D11K905581 ************************************************************************ * Modification History * Modified By : * Modified On : * Reason : * CTC : *********************************************************************** REPORT ZHR_BPA_POLICY NO STANDARD PAGE HEADING LINE-SIZE 200 MESSAGE-ID SK.

INCLUDE ZHR_BPA_POLICY_DD. " Data declaration INCLUDE ZHR_HOSPITALISATION_POLICY_SS. " Selection screen INCLUDE ZHR_BPA_POLICY_SP. " Start Processing *----------------------------------------------------------------------* * INCLUDE ZHR_BPA_POLICY_DD *----------------------------------------------------------------------* *----------------------------------------------------------------------* * INCLUDE ZHR_BPA_POLICY_DD *----------------------------------------------------------------------* TABLES: PA0000, PA0001, PA0008, PA0050. DATA : BEGIN OF ITAB OCCURS 0, PERNR LIKE PA0001-PERNR, ENAME LIKE PA0001-ENAME, WERKS LIKE PA0001-WERKS, PERSG LIKE PA0001-PERSG, PERSK LIKE PA0001-PERSK, BTRTL LIKE PA0001-BTRTL, ABKRS LIKE PA0001-ABKRS, ZAUSW LIKE PA0050-ZAUSW, END OF ITAB. DATA : BEGIN OF ITAB1 OCCURS 0, PERNR LIKE ITAB-PERNR, ENAME LIKE ITAB-ENAME, Created by NILESH DADHICH 76

* *



S_DATE FOR PA0001-BEGDA OBLIGATORY. SELECTION-SCREEN END OF BLOCK NIM1. *----------------------------------------------------------------------* * INCLUDE ZHR_BPA_POLICY_SP * *----------------------------------------------------------------------* *----------------------------------------------------------------------* * INCLUDE ZHR_BPA_POLICY_SP * *----------------------------------------------------------------------* START-OF-SELECTION. PERFORM INITIALIZE. " Variables and int tab Initialize PERFORM SELECT_DATA. " Select the data using selection param. PERFORM COLLECT_WAGES. " Count Basic, DA, ADA, PPAY END-OF-SELECTION. PERFORM OUT_PUT. *&---------------------------------------------------------------------* *& Form INITIALIZE *&---------------------------------------------------------------------* * text *----------------------------------------------------------------------* * --> p1 text * <-- p2 text *----------------------------------------------------------------------* FORM INITIALIZE. CLEAR: ITAB, ITAB1. REFRESH : ITAB, ITAB1. ENDFORM. " INITIALIZE *&---------------------------------------------------------------------* *& Form SELECT_DATA *&---------------------------------------------------------------------* * text *----------------------------------------------------------------------* * --> p1 text * <-- p2 text *----------------------------------------------------------------------* FORM SELECT_DATA. SELECT PERNR ENAME BTRTL INTO (ITAB-PERNR, ITAB-ENAME, ITAB-BTRTL) FROM PA0001 WHERE PERNR IN S_PENR AND WERKS IN S_PA AND BTRTL IN S_PSA AND ABKRS IN S_PAY AND PERSK IN S_ESG and endda = '99991231' AND ( PERSG <> 'P' OR PERSG <> 'A' ). IF SY-SUBRC = 0. APPEND ITAB. ENDIF. ENDSELECT. SORT ITAB BY PERNR. DELETE ADJACENT DUPLICATES FROM ITAB. ENDFORM. " COLLECT_WAGES Created by NILESH DADHICH 78

*&---------------------------------------------------------------------* *& Form OUT_PUT *&---------------------------------------------------------------------* * text *----------------------------------------------------------------------* * --> p1 text * <-- p2 text *----------------------------------------------------------------------* FORM OUT_PUT. * SORT ITAB2 BY NEWNO. * DELETE ITAB2 WHERE TOTAL <= '6500'. CALL FUNCTION 'HR_IT_SHOW_ANY_TABLE_ON_ALV' TABLES TABLE = ITAB2. EXCEPTIONS FB_ERROR = 1 OTHERS = 2.

* * *