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Introduction The CEO of EMAMI COSMETICS through an extensive evaluation process, has decided that his company requires an integrated software system. Having examined a number of possible solutions, he has determined that SAPs R/3 system best suits the companys needs and growth, and has bought licenses for the FI, PP, SD, and MM modules. Your firm has been contracted to lead the installation project that includes some business process re-engineering. Your team, assigned to assist EMAMI in the implementation of this business system, is to build a working prototype of the system and present it to the executive committee. Considering the attached information gathered from the client, your talented consulting team should design and configure the organizational structure and applicable master records to support the business. All appropriate posting documents and resulting accounting documents for each business transactions should be prototyped and tested. Document and justify any significant recommendations. In your presentation, significant attention should be given to integration and to the flow of business through the supply chain. The following key areas should be covered. Planning issues encountered and their resolution. Integration points throughout the software. Flow of business transactions. Problems and obstacles found in prototyping the proposed implementation model. Attached is the information already gathered by your project team. You have limited access to the Senior Management Steering Committee of EMAMI to respond to questions you may have and provide further information as required. 2. Background Information 2.1 Company information EMAMI India wise has its head office in Kolkata. The company sells Cosmetics both artificially manufactured and Herbal based. EMAMI owns ABC Marketing, a distribution company in Kolkata that handles sales for Eastern India area. Financial statements are prepared at the corporate and subsidiary levels. The data and the application server are on a computer in the head office. 2.2 Organizational Structure The manufacturing plant in Kolkata & Pondicherry manufacture all products sold by EMAMI. Inventory is then transferred from the plant to the other distribution centers in Kolkata and Pondichery. ABC Marketing processes all sales to Eastern customers. Define the appropriate company codes in order to show the full range of required business functions in your prototype. Assign the appropriate business for internal balance sheets. The fiscal year is identical to the calendar year, however with four special periods (V3). Company code must have its own credit control area.

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3. General Information The suggested priority is to focus on delivering the prototype presentation. Consider the following: Taxes - Configuration of Taxation is not essential for the case study. Plants - Remember to use the copy plant function when defining additional plants. After completing the essential configuration required for the prototype, you should investigate the configuration for other components of the case study 3.1 Master Data G/L Account Master Data Create one chart of account per company. EMAMI (local currency INR) ABC Marketing(local currency INR) Automatic Account Assignment must be maintained so that the G/L accounts are posted automatically for the inventory management and invoice verification. 3.2 Bank Master Data Enter the house banks and the related bank accounts for the respective company codes. Bank ING Visya Citibank City Kolkata Pondichery Bank Id ING Citibank Bank country IN IN ABA Routing No. 11000430 11040305

3.3 Customer Master Records Maintenance of customer master records is decentralized. Sales department first creates the customer master and they establish the customer number to be used. The accounting department is then responsible to extend this record to include the financial information. One of the project team members is the Credit Manager. He/she will determine the appropriate credit information for the credit controlling areas. 3.3.1 Account Groups For regular customers create master records using external alphanumeric number ranges. For the one time customers create one master record. For the line item display for one-time accounts, sort by name and city. Use field selection for the regular customer account group to control the following: Region, Industry and Terms of payment fields are to be mandatory. Sales district is to be suppressed. The following reconciliation accounts should be allocated to the individual customers:
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IN receivable IN receivable one time customer account 3.3.2 Incoterms The following Incoterms are currently used by EMAMI and ABC Ltd.: CIF CIP ZEX Costs, insurance, freight Cost insurance paid Express Freight Chargeable

Payment Terms The following payment terms are currently used: PT01 8 days 14 days 21 days 14 days 30 days 45 days 5% 2% net 3% 2% net


PT01 is used by the EMAMI head offices and payment term PTO2 applies to all other customers (including trade industry) 3.3.4 Customers The allocation of customers to sales organizations is determined by the assigned country and city listed in the customers master record. The customer listed below are interested in all product groups of EMAMI. The following customer represents the Kolkata subsidiary. It is used for inter-company sales of finished goods: Customer Address Contact ABC Marketing 101 subhash street , Kolkata Currency Country Language INR IN EN Distributio n Channel Wholesale Terms of Payment PT01

The following companies represent the customers (wholesalers and retailers) that EMAMI and ABC Marketing sells their products to:

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Customer Address Contact Agarwal traders, Tis hazari Delhi Gupta & Sons Bhopal Vikram traders & distributors, Gwalior X-Treme Cosmetics Ahmedabad

Currency Country Language INR IN EN INR IN EN INR IN EN INR IN EN

Distributio n Channel Wholesale Retail Wholesale Wholesale

Terms of Payment PT02 PT02 PT02 PT02

3.4 Material Master Records Because of our commitment to quality, we have begun tracking changes to our key materials and products. We would like to see this practice continue through a change management facility that is built into the system. We currently group changes by engineering/ design project numbers. 3.4.1 Finished Products Material Name Navaratan Hair Oil (Nav_oil) Antiseptic cream (Anti_cream) Shaving Cream (Shav_cream) Talcum Powder (Tal_pow) 3.4.2 Material Types In EMAMI, the following material types are used, with the corresponding number ranges. The material type will have to be created. Beginning of range Finished products 100001 Semi finished 300001 Raw materials 200001 Operating supplies 400001 Trading goods 500001 Services 600001 3.4.4 Material Groups End of range 199999 399999 299999 499999 599999 699999 External/ Internal External External External External External External Account Cat. Ref 0009 0008 0001 0002 0005 0006 Description Navaratan Hair oil (herbal Based) EMAMI Antiseptic cream (herbal Based) Shaving cream (Cosmetic Based) Talcum Powder (Cosmetic Based)

For control and reporting purposes, EMAMI has decided on the following material groups: HER Herbal
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Cos Pac

Cosmetic Packing

3.4.5 Additional Information for Sales Department The material master for finished goods is partially maintained. The sales department must maintain additional information. The maintenance consists of the following: Minimum order quantities should be maintained. Delivery plant Loading group Transport group Storage condition 3.5 Vendor Master Records Vendor master maintenance for trade vendors are maintained De-centrally by Purchasing Department while maintenance of non-trade vendor masters is maintained by Accounting.

3.5.1 Account Groups EMAMI normally purchases from a few, regulated suppliers. Where circumstances warrant, the occasional use of additional suppliers is possible. By policy, EMAMI will deal with these occasional vendors using the systems one time vendor capability. Account groups and number range information for vendors is in the following table: Account group KRLV KRFV KROT Description Local Vendors Foreign Vendors One-time vendors Number range Internal numeric Internal numeric External alphabetic

Other than for the one-time accounts, EMAMI will use internal number assignment. In order to facilitate reporting and control, there should be two one-time vendor accounts: one for foreign and one for the domestic suppliers. The field status for the account groups should reflect a mandatory field for payment method. The following reconciliation accounts should be used as appropriate. Local vendors payable Vendors payable- one- time accounts For the line item display for one- time- accounts, sort by name and city. 3.5.2 Vendors
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The following vendor master records need to be defined. Supplier Address Contact Himalaya Herbal Extracts limited 1001 First Street Himachal Pradesh Contact: Ms. Martha Tiruvannnan Coconut suppliers Vikranth Chemical Industries, Bhopal Madhya Pradesh Axion Perfumes limited M G Road, Mumbai Raghu Packing industries Hyd. Andhra Pradesh Description Suppliers of Herbal products Terms of payment Valid currency PT01 INR

Tiruvannnan Coconut suppliers limited Suppliers of calcium carbonate Perfumes suppliers Suppliers of Packing Materials


4. Materials Management All deliveries of materials will be entered as goods received by the inventory management department with invoice verification performed by the accounting department. 4.1 Materials Master Data Material type EMAMI uses the material type HALB to describe all semi-finished products. 4.2 Procurement The following purchasing Groups are required: 001 for procurement of Herbal 002 for procurement of Chemicals 003 for procurement of Packing Requirements for both Manufacturing and Marketing companies are ordered by one purchasing organization based in Kolkata. However, there are Ponicherry requirements that are ordered locally but under the same purchasing organization. In addition, someone must consider the following points while ordering raw materials or semifinished products: 4.3 Valuation

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EMAMI is valuing products at standard cost 4.4 Physical Inventory Method Because EMAMI uses annual inventory count, all company stocks have to be physically inventoried by the balance sheet cut-off date. During the counting, the warehouse for material movements must be blocked. 4.4.1 Materials Requirements Planning ABC Marketing in Kolkata orders materials from Kolkata, maintained through MRP. Material requirements planning will be carried out for the creation of purchase requisitions and planned orders. The requisitions are then automatically converted into purchase orders. All requisitions that do not have an explicit source of supply assigned to them are to be converted manually. Some packing materials are planned using automatic re-order point planning. Finished goods are stock based on manual stocks and Forecasts provided by the sales offices. EMAMI would like to utilize consumption of independent requirement.(Recommended strategy 40). 4.4.2 Distribution Center Inventory Using the prescribed methods above, replenish the inventory levels at the distribution centers for all salable products. 4.4.3External Service Management Kolkata and Pondy plant annually requires duet work cleaning and air filter replacement to the plant HVAC System. Das Cleaning services has selected though competitive bid Cleaners, Inc for the project. The cleaning contract is valued at INR 15000. The cost of this service should be allocated to all production cost centers. All payments to quick cleaning are subjected to service entry and acceptance of the actual services rendered. 5. Sales and Distribution 5.1 Organization 5.1.1 Sales Organization Business in the INDIA is divided into two sales organizations, one for the Kolkata and one for Pondicherry. Each sales organization is responsible for negotiation and fixing of conditions and characteristics of business transactions. 5.1.2 Distribution Channels EMAMI sales organizations use two distribution channels through which to sell their goods: Wholesale trade Retail trade 5.1.3 Divisions

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The products of EMAMI are divided into Two groups. All product lines can be sold through both distribution channels by both sales organizations. Herbal Division Cosmetic Division 5.1.4 Sales Offices It has been decided to use sales offices to differentiate the sales made by the various regions. This will allow easy reporting of business volume by office. The following sales offices must be defined: Delhi Kolkata Chennai Mumbai There is no freight charge or profit, thus there is no accounting implication re transfer of stock between distribution points. 5.1.5 Distribution Centers As discussed earlier, Kolkata and Pondy plants are responsible for all manufacturing products. The other locations, do not manufacture any products. Inventory at the Kolkata distribution center is replenished through plant transfers that result from sales forecasts. There is no accounting implication since EMAMI owns both locations. The Marketing Company (ABC Marketing) purchases inventory in Kolkata from EMAMI according to annual agreement. This agreement is in the form of a scheduling agreement, which outlines quantities and dates. EMAMI serves as a vendor for ABC Marketing, and ABC Marketing is defined as a customer of EMAMI . Therefore a scheduling agreement is created by EMAMI for the delivery schedule of their customer ABC Marketing. The lines in the scheduling agreement appear as demand in the Kolkata distribution center. 5.1.6 Shipping Points Each plant has two shipping points that are responsible for the processing deliveries. For normal delivery there is a shipping point which processes the bulk of the deliveries. In addition EMAMI offers its customers an express delivery options using Guaranteed Overnight Delivery (G.O.D) which guarantees delivery in one day anywhere in India. This shipping point represents a special shipping area reserved for express deliveries. Shipping point K001 KEXP P001 PEXP Description Kolkata Regular delivery Kolkata Express delivery Pondy Regular delivery Pondy Express delivery
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5.2 Functions 5.2.1 Pricing Pricing used during order entry and invoicing is the responsibility of each sales organization. Therefore any material pricing, discounts and surcharges can vary depending on the sales organization. It has been decided that each sales organization is to have a separate pricing procedure to reflect its own pricing policy. Therefore certain condition types procedure used for Canadian customers. Furthermore, the distribution channel also influences pricing. A special discount is to be defined for wholesale customers, which reduces the gross price of the product. It has been decided that the price group field in the customer master will be used to determine if a wholesale discount applies. It would be possible to simply make the discount dependent on the distribution channel alone, but the use of the price group field was decided upon since it allowed for multiple discount rates based different price groups. The following conditions apply to pricing at EMAMI : A basic material price is established for each sales organization scaled by quantity. Customer specific material prices are possible At 25%discount applies for wholesale customer orders Pricing determined at order entry is firm and is not re-determined at billing time The value of discount based on the terms of payment used should appear in the pricing details for an item. Material cost should also be included in item pricing details along with the computed Gross profit margin. An addition freight charge should be included in the item in the case of express delivery. The amount is dependent on the weight of the goods shipped and is triggered by a special Incoterms that you enter in the sales document for express delivery.

5.2.2 Availability checks and Transfer of Requirements Both EMAMI and ABC Marketing., would like to track each requirement generated by a sales order separately. This means that individual requirements will be passed for the materials. The alternative would be to accumulate demand into collective requirements for a day or a week but then the details of the source of the requirements is not available. 5.2.3 Shipping The data required for shipping should be defaulted as much as possible by the system. Areas where this determination is to be automated included shipping point, and picking location determination. Shipping points
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The shipping point is specified for every order item. In the determination tables, one shipping point is specified as default and others can be specified as alternates. The default shipping point is influenced by the shipping condition from the customer master, loading group from the material, and delivery plant. Ensure that two shipping conditions, one for regular and one for express delivery are defined as well as the related determination table. A single group can be used since all materials are located onto trucks using a forklift. The shipping point should be determined as follows: Delivering Plant Kolkata Kolkata Pondy Pondy Shipping Condition 01 EX 01 EX Loading Group 002 001 001 001 Shipping point KOO1 KEXP P001 PEXP

5.3 Additional Sales Information Configure the system to satisfy the following requirements: Use the standard order type available in the system to process regular customer orders. EMAMI does not require specialized orders. EMAMI has decided that in addition to the standard order type, credit and debit requests as well as the return order type will be used. Configure the system so that these document types are available at order entry but no others, e.g. Consignment order types. It has also been decided that the business terms in the sales document header are valid for all items and cannot be changed at the item level. The only partner function that can be different between items in a sales order is the ship-toparty. An incompletion procedure based on the standard procedure is to be used for order entry. However, do not include the purchase order number in the list of fields to be checked. Also issue a warning message if weights and volumes are missing. Input facilities must be used in order to facilitate fast and efficient order entry by defining a product proposal.

5.4 Additional shipping Information. The shipping must be processed optimally and quickly. The shipping team has decided the standard functionality is adequate and that the standard delivery document type will be used for sales orders. Due to the volume of deliveries expected, the creation of the delivery documents will be done daily using collective processing. The exception to this rule is the case of a order where the customer has requested the express delivery option. For express delivery, the delivery document will be created separately for the individual order. Warehouse management will not be incorporated since the warehousing structure is not complex. However, the storage location for picking should be proposed in the delivery document.
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5.5 Additional Billing Information Consider the following billing related requirements: A standard invoice related to a delivery is to be used. Customers normally receive individual invoices for each delivery. However, it has been decided that billing schedules will be supported for customers who request it. Initially a biweekly calendar will be defined to consolidate all deliveries into a billing date falling on the Friday of 2nd and 4th week of every month. The accounting department maintains customer credit limits. The credit control area is the organizational unit, which sets the credit limit for customers and controls it. A credit control area at EMAMI contains only one company code. For every sales document (order type etc) it can be determined, whether a credit limit check is warranted. 6. Financial and Cost Accounting 6.1 Document Processing Enter the following document types. If necessary add the appropriate DR Customer invoice DS Customer Credit memo DZ Customer payment KR Vendor invoice KG Vendor credit memo KZ Vendor Payments SA G/L accounts Use an internal number assignment with the corresponding number range intervals. 6.2 Organization Information The company codes will roll up into a corresponding area. Define the controlling area and allocate it to the respective company code. Enter the basic data as follows: Activate cost center accounting. The cost accounting currency in identical with the group currency of the company. Activate the charts of accounting. The periods correspond to the periods of financial accounting, i.e. 12 accounting periods and four special periods. Company code check. Maintain the controlling area currency and the two main currencies for the company code. Implement number range groups for activity related and period related activities in and actual. Allocate number ranges for those groups within cost center accounting. Complete data entry is only required in one company. Partial data entry is necessary in the other company to demonstrate aggregation of data at the corporate level.
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Design a line for AR, AP and GL to display all assigned currencies. 6.3 Cost Element Accounting For primary cost entry and primary cost allocation take over the G/L accounts of 4xxxxx From financial accounting into cost accounting. Therefore you need to analyze the chart of accounts and determine the appropriate cost element types. Implement the respective secondary cost elements, statistics ratio and activity types for the internal cost allocation. The validity period for cost elements and activity elements is from 01.01.2008 till 31.12.9999. Statistical figures Statistical Key figure Activity type Activity type Activity type Cost element for internal allocation Cost elements for cafeteria assessment Internal Order settlement cost element 91000(employees in ea.) 7800 (energy consumption in kWh) 1410 (Set up) 1440 (Production) 1450 (Packing) 610000 510000 650000

To group similar cost elements, implement the following cost elements groups: Group GOAS Material Energy Personnel Plant maintenance Taxes Rents Assessment Activity allocation Settlements Cost Elements All other groups, object analysis sheet 40xxxx, 4150000 4161000, 416200,416300 42xxxx, 43xxxx, 44xxxxx 45xxxx 46xxxx 47xxxx 510000 610000 650000

6.4 Cost Center and Internal Order Accounting. 6.4.1 Cost Center Hierarchy

Set up appropriate standard hierarchies for your controlling area: K00 K99 Standard hierarchy, EMAMI. Clearing cost centers

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K99X6 K00X K00X1

Clearing cost center X16099 Clearing cost center EMAMI , General cost center X11000 general cost center X11100 real estate/buildings X11200 cafeteria Service cost center X12000 service cost center X12100 plant maintenance X12200 internal transportation Production center X13000 production center Pondy X13100 production center Kolkata material center material purchase operating funds purchase



K00X4 Material center X14000 X14100 X14200

K00X5 Distribution and Administration X15000 administration X15100 management X15110 sales Kolkata X15210 sales Pondy X15310 administration Kolkata X15410 administration Pondy Create the standard hierarchy for the IN (where X=1) following the chart above. K001 e.g. would represent the cost centers assigned to the EMAMI Company code. Configure cost centers for all primary and secondary costs for actual and planned postings. Service cost centers also have to be managed on a quantity basis. The cost center currency corresponds to the company code currency. The validity period for the cost centers is from 01.01.2008 until 31.12.9999 Assign the cost centers to a business area of your choice.

6.5 Planning The prices for activity types should represent given standards and not calculated values. Generate a plan for the following key figures, activity types and cost elements in the EMAMI Company. Check with production for additional requirements.

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6.5.1 Statistical Key Figure Planning 9100 No. of employees. To apportion the cost of the cafeteria corresponding to the no. of employees of the single cost center, the ratio for the following cost centers must be planned as a constant. General Cost center Service cost center Kolkata Production center Pondy Production center Material Distribution and administration 15 employees 45 employees 50 employees 60 employees 25 employees 20 employees

6.5.2 Statistical Key Figure Planning 7800- Energy consumption To apportion the cost of energy corresponding to the planned energy consumption rates of the single cost center, the key figure for the following cost centers must be planned as a constant: General cost center 1000kwh Service cost center 1500kwh Production 13000kwh Material 1500kwh Distribution 3000kwh 6.5.3 Activity Type Planning 1410 setup The activity type setup must be planned on cost center X12100 plant production with the following values: Planned activity 2000hr Standard rate INR45.00/hr 6.5.4 Activity Type planning 1440- Production The activity type production must be planned on cost center x13100 all products with the following values: Planned activity 20000 hr. Standard time INR15.00/hr. 6.5.5 Activity Type planning 1450-Packing The activity type Packing must be planned on cost center X13100 for all products with the following values: Planned activity Standard time 40000hr INR18.00/hr

6.5.6 Direct Planning Generate a plan for the following cost elements in EMAMI:
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Cost center 430000 415000

X11000- General CC salaries salaries INR150, 000.00 yr. INR 80,000.00 yr.

Cost center X11200 - Cafeteria 415000 cost for external procurement 421000 indirect labor costs 430000 salaries Cost center X12000 - Service 415000 cost for external procurement 421000 indirect labor cost Cost center X13000 - production INR150, 000.00 yr. INR80, 000.00 yr. INR120, 000.00 yr. INR60, 0000.00 yr. INR100, 000.00 yr.

415000 cost of external procurement INR100, 000.00 yr. 430000 salaries INR100, 000.00 yr. Cost center X13100 Production center pondy 400000 other raw material 420000 direct labor cost 430000 salaries Cost center INR400, 00.00 yr. INR480, 000.00 yr. INR100, 000.00 yr.

X13200 Production center kolkata INR500, 000.00 yr. INR500, 000.00 yr. INR110, 000.00 yr.

400000 other raw material 420000 direct labor cost 430000 salaries Cost center X14000 material center

415000 cost of external procurement 430000 salaries 476000 office supplies Cost center X15000 - administration

INR350, 000.00 yr. INR200, 000.00 yr. INR25, 000.00 yr.

430000 salaries 476000 office supplies 476500 general management costs Cost center X16099 - Clearing

INR200, 000.00 yr. INR40, 000.00 yr. INR100, 000.00 yr.

416100 Electricity, fix 416200 Electricity, variable

INR10, 000.00 yr. INR190, 000.00 yr.

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Planned Assessment

Costs have been planed and entered into the cafeteria cost center. Within the framework of plan assessment, the costs will be assessed based on the number of employees within the corresponding cost centers. Enter the corresponding sender recipient relationship. 6.5.8 Internal Order Planning

6.6 Actual Costs recording 6.6.1 Business transactions 6.6.2 Internal cost Allocation 6.6.3 Actual Assessment 6.6.4 Actual Order Settlement 6.7 Reporting Analyze the corresponding transactions in view of cost centers and cost elements. Perform a customer account analysis. Display vendor or customers line items and drill down to originating documents. 6.8 Closing operations A limited month-end closing should be completed in the respective company codes based on the current month. Therefore, it is necessary to close the accounting period by the last day of the month and to open the new period for the next month. Maintain the corresponding tables. Draw up the preparation of balance sheet and a profit and loss statement. Identify the account balance changes from prior month and reconcile the differences to the corresponding transactions. 6.8.1 Financial Statements In order to prepare balance sheet and profit and loss statement at the subsidiary level, a financial statement version with the corresponding hierarchy levels has been created. Version Name: MSCA Each group is totaled and sub-totaled. Each position has its allocated text. G/L accounts have been allocated to the lowest level. Revise if necessary. 7. Production Planning (Bonus Portion) 7.1 Work Centers The following work centers are available. GRIND1 Grinding of calcium carbonate
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Mixing 1 Packing Coconut oil extraction Mixing 2

These workcenters are assigned to cost centers and activity types as defined by controlling and production management. The quantity of resources in the workcenter must match the quantities budgeted in controlling. 7.2 Capacity Assume all work centers are not hierarchically structured and have the following capacity. Start time 8:00 a.m. Stop time 6:00 p.m. One hour break time at lunch. Effectively at 80%.

At each work center labor capacity is to be evaluated. The available capacity should be adapted after a planning run with capacity evaluation. Discuss possible bottlenecks and discuss methods to solve the problem. 7.3 Routings 7.3.1 Routings for the Navaratan oil Coconut oil extraction. Herbal mixing. Quality inspection. Packing 7.3.2 Routings for the Anticeptic cream Mixing of Oint base and herbal extract Packing Inspection 7.3.3 Routings for the Talcum powder 7.4 Grinding of calcium carbonate Mixing with perfumes Quality inspection. packing Bills of Material


Bill of Material of Navaratan hair oil

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Navaratan hair oil

Coconut Oil

Herbal mix




Ointment Base 30 gm

Antiseptic herbal mix 70 gm




Foaming agent 10 ml

Perfumes 1 ml

Cream 89 ml

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Calcium Carbonate 198 gm

Perfumes 2gm

7.5 Materials Requirements Planning Master production schedule / materials requirements planning needs to be carried out for the creation of dependent requirements & planned orders. The planned orders need to be converted to production orders on all levels of the assembly. 7.6 Production Orders The production orders should make use of the bills of material & routings. The assignment of materials to the operational steps is maintained in the routings. Component availability checking should include production orders and purchase orders at the time of the creation and only on-hand available stock at the time of the release of the production orders. Confirmation of the last operation in the routing should trigger a goods movement to inventory. If the automatic goods movement ever fails a rework goods movement should be processed. 7.7 Capacity Planning The capacity planning is used to identify bottlenecks in available production capacity. In the case that these exist, pre-production is increased in the month of least demand. If this is not sufficient, the earliest date available to promise is determined.

Prototype Presentation A number of core business functions have been identified. The supporting R/3 transactions are to form the basis for the presentation made to the steering committee. 1. Demonstrate your Implementation project. Due to the lack of time no resource assignment and documentation is required. 2. Display the beginning Balance Sheets and P & Ls for the two subsidiaries.
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3. Demonstrate the pre-planning in Kolkata the demand transfer to the production plant. Execute MRP for material Navaratan hair oil in the production plant. 4. Create a purchase order for the vendor. Convert one of the requisitions generated by MRP into a Purchase Order. 5. Receive inventory against the purchase order 6. Show the service PO created for HVAC cleaning services in the Kolkata plant. 7. Demonstrate service entry and acceptance for HVAC cleaning services. 8. Invoice Verification. Use invoice verification to record the invoice from vendor 9. Create a customer sales order for the Kolkata sales office. Customer, ABC Marketing places an order for express delivery as follows: Material Navaratan oil Anticeptic cream Talcum powder Shaving cream Quantity 10000 pc 7500 pc 5000 pc 5000 pc

Verify the following are correct: Shipping point Delivery Plant Pricing

Process the delivery for this order. All materials are to be fully delivered. Complete picking and goods issue. Ensure that the storage locations were defaulted accordingly. 10. Create the billing document for this delivery. Create the billing document and ensure that the posting to financial accounting is successfully completed. Examine the accounting posting to validate the general ledger accounts used. 11. Create a returns order with reference to the sales order. The customer has called and complained about the quality of the finish on some of the Materials they received. Create a returns order for 500 pieces of material Navaratan oil. 12. Create the delivery for the returns order. Post goods receipt for the return of the damaged goods. 13. Create the corresponding credit memo. Create the credit for the returns order and examine the accounting posting.

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14. Post an incoming payment. Receive a payment from customer ABC Marketing. A deduction was made for INR23.00 for excess freight charges and INR 27.00 for arriving 3 hours late. We have agreed to absorb the INR23.00, however the INR 27.00 still owes and should be recorded using a notation of 'item in dispute'. 15. Post a vendor invoice using an account assignment model. An invoice has been received by the landlord for the rent to be charged for the month. The charges are always recorded to the same cost centers prorated by the sq. footage for each cost center. Cost center Sq footage 11000 1000 12000 1200 15000 900 16. Generate a payment run for all the outstanding invoices. The payment run should contain at least 3 invoices, one of which is blocked from payment. Create an appropriate blocking reason. 17. Perform an assessment. The cafeteria costs will be assessed based on the number of employees. 18. Display the profit and loss statement for EMAMI . Display a financial calendar showing all payment runs and financial statements. Include a message, which reminds the controller when the month-end reports are finished and ready for preview. 19. Demonstrate the completion of the partial delivery for your ABC Marketing order. 20. Perform an actual settlement of the ABC Marketing order. 21. Be prepared to show and discuss the Cross Company Stock Transfer requirement between Kolkata and Pondy. 22. Close the month and reconcile the Balance sheets and P & Ls for the two subsidiaries to the prior month.

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