EPACK POLYMERS (P) LTD.

HCL INFO SYSTEM LTD.

Delta Document Finance & Controlling For E-Vision Dehradun
EVision Process: Finance & Controlling Document Number: CDEV Version: 1.0 Module: FI - CO Release Date: 20 Dec.’2012 Status: Final

EPACK POLYMERS (P) LTD.

HCL INFO SYSTEM LTD.

This document contains E VISION To Be process descriptions and fulfilling the various user requirements for the purpose of SAP implementation. The major contents of this document includes process objectives, users’ requirements and expectations, process description gaps, improvements, major inputs, major output and KPI and Key MIS requirements. This document is the outcome of various levels of interactions with process owners and department heads across locations of E VISION, Dehradun Including the Head Office.

Process Owner’s Approval – Version 1.0
Approver Name Title Signature Date

EPACK POLYMERS (P) LTD.

HCL INFO SYSTEM LTD.

Table of Contents

1.

Finance and Controlling........................................................................................................................................................................................................7

1.1. Finance Organization Structure ...........................................................................................................................................................................................8 1.1.1 Finance Organization Structure ...........................................................................................................................................................................................8 1.2. Planning, Budgeting and Forecasting ................................................................................................................................................................................ 13 1.2.1 Annual Budgeting ............................................................................................................................................................................................................... 13 1.2.2 Forecasting ......................................................................................................................................................................................................................... 21 1.3. Asset Accounting ................................................................................................................................................................................................................ 37 1.3.1 Capital Expenditure Budgeting .......................................................................................................................................................................................... 37 1.3.2 Asset Master Creation .............................................................................................................................................................. Error! Bookmark not defined.

EPACK POLYMERS (P) LTD.

HCL INFO SYSTEM LTD.

1.3.3 Asset Acquisition ...................................................................................................................................................................... Error! Bookmark not defined. 1.3.4 Asset Transfer ........................................................................................................................................................................... Error! Bookmark not defined. 1.3.5 Asset Disposal........................................................................................................................................................................... Error! Bookmark not defined. 1.3.6 Period End Processing .............................................................................................................................................................. Error! Bookmark not defined. 1.4. Accounts Payable ..................................................................................................................................................................... Error! Bookmark not defined. 1.4.1 Vendor Invoicing-(Material & Services) .................................................................................................................................... Error! Bookmark not defined. 1.4.2 Vendor Invoicing-(Non-Stock Items) ....................................................................................................................................... Error! Bookmark not defined. 1.4.3 Vendor Payment ....................................................................................................................................................................... Error! Bookmark not defined. 1.4.4 Advance Payment .................................................................................................................................................................... Error! Bookmark not defined. 1.4.5 Period End Closing..................................................................................................................................................................... Error! Bookmark not defined. 1.5. Accounts Receivable ................................................................................................................................................................. Error! Bookmark not defined. 1.5.1 Customer’s Billing ..................................................................................................................................................................... Error! Bookmark not defined. 1.5.2 Incoming Payment .................................................................................................................................................................... Error! Bookmark not defined. 1.5.3 Period Closing ........................................................................................................................................................................... Error! Bookmark not defined. 1.6 Cash & Bank .............................................................................................................................................................................. Error! Bookmark not defined.

EPACK POLYMERS (P) LTD.

HCL INFO SYSTEM LTD.

1.6.1 Bank Reconciliation Process ...................................................................................................................................................... Error! Bookmark not defined. 1.6.2 Cash Receipts ............................................................................................................................................................................ Error! Bookmark not defined. 1.6.3 Cash Payments ......................................................................................................................................................................... Error! Bookmark not defined. 1.6.4 Borrowings ................................................................................................................................................................................ Error! Bookmark not defined. 1.6.5 Import Payments (Letter of Credit) ........................................................................................................................................... Error! Bookmark not defined. 1.7 General Ledger Account ..................................................................................................................................................................................................... 50

1.7.1 Chart of Account ................................................................................................................................................................................................................. 50 1.7.2 Journal Posting.......................................................................................................................................................................... Error! Bookmark not defined. 1.7.3 Period End Processing ............................................................................................................................................................... Error! Bookmark not defined. 1.8 Direct Taxation ......................................................................................................................................................................... Error! Bookmark not defined.

1.8.1 TDS Process .............................................................................................................................................................................. Error! Bookmark not defined. 1.8.2 TCS Process .............................................................................................................................................................................. Error! Bookmark not defined. 1.8.3 Corporate Taxation .................................................................................................................................................................. Error! Bookmark not defined. 1.9 Indirect Taxation ...................................................................................................................................................................... Error! Bookmark not defined.

1.9.1 Tax Masters .............................................................................................................................................................................. Error! Bookmark not defined.

.............. 1..................................10 Product Costing ................... 1.................... Error! Bookmark not defined..........................................5 Form Tracking ......10............................4 Period end processing .............................................................. 1..............................................................9..... 1..................... Error! Bookmark not defined......................................................................... 1......... Error! Bookmark not defined......................EPACK POLYMERS (P) LTD............................ Error! Bookmark not defined..........................9........................................................................................ .3 Output Tax Process ............................................. 1........................9....1 Product Costing .............................................9........................................ Error! Bookmark not defined............................................................................................................................................................................................2 Input Tax Process .................................. HCL INFO SYSTEM LTD.......................................................... Error! Bookmark not defined.........

Finance and Controlling The ‘Record to Report’ process includes the following components/ sub-processes: ► ► ► ► ► ► ► ► ► ► ► Finance Organization Structure Planning. 1. Budgeting & Forecasting Asset Accounting Accounts Payable Accounts Receivable Cash & Bank General Ledger Accounting Direct Taxation Indirect Taxation Insurance Product Costing .EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.

Profit center to be created for new company code EVISION etc. HCL INFO SYSTEM LTD.1.EPACK POLYMERS (P) LTD. Process objective: The objective of this process is to create a new company code EVISION in the Organizational Structure for Finance & Controlling. are defined based on the Current Structure of the E PACK Group. 1.1 Finance Organization Structure 1. Process Flow: .1. Finance Organization Structure 1. 2. Controlling area is same.

HCL INFO SYSTEM LTD.EPACK POLYMERS (P) LTD. .

► For E PACK group. 1 Creation of Operating Concern and Controlling Area TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) ► SAP FUNCTIONALITY TO BE USED 2 Operating concern is the highest organisational unit in Controlling under which all reporting w. ► 1 Manufacturing Units at Dehradun ► IT / SAP Team ► SAP ► Enterprise Structure . ‘E PACK Group’.r. Creation of Company ► A company code represents a legal Code entity in the system. ► ► IT / SAP Team SAP ► Enterprise Structure ► IT / SAP Team ► SAP ► Enterprise Structure 3 Création of Profit Centers ► Profit centers are the reporting units under a company code. All external reporting is done based on the company code. HCL INFO SYSTEM LTD.e. one operating concern and one controlling area is there i. ACTIVITY NO. ► Controlling area 1000 is same. 3. New Company Code 2000 to be created for EVISION.EPACK POLYMERS (P) LTD.t internal management is done. Process Description: SL.

SD. Interface Requirements: INTERFACE REQUIREMENTS ► NA 6. 5. SL. 4. NO.EPACK POLYMERS (P) LTD. Key Outputs: KEY OUTPUTS OF THE PROCESS . TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED under Evision. HCL INFO SYSTEM LTD. NO. NO. ACTIVITY NO. Integration Aspects: INTEGRATION ASPECTS ► Integration with MM. SL. SL. PP modules. SL. 1.

1. 7. SL. 1. KEY OUTPUTS OF THE PROCESS ► Organizational structure of E PACK completely mapped with the SAP Enterprise Structure. HCL INFO SYSTEM LTD. Gaps Indentified/ Process Improvements GAPS INDENTIFIED/ PROCESS IMPROVEMENTS ► REFERENCE ► Currently the units of E PACK Group and the processes thereof are not well integrated. NO. NO. SL.EPACK POLYMERS (P) LTD. The new SAP based process Re-Engineering approach will bring the required Integration across the E PACK Landscape and the processes thereof. .

EPACK POLYMERS (P) LTD. 1.1 Annual Budgeting 1. and implement corrective actions 2.2. Process objective: The objective of the process is to employ Annual plan that is focused on the achievement of long term strategic objectives and to ensure that resources are coordinated & used in the most effective way and to provide a mechanism to measure. report. collate feedbacks. Process Flow: . Planning.2. HCL INFO SYSTEM LTD. Budgeting and Forecasting 1.

Capex EBIT (incl. HCL INFO SYSTEM LTD. Budgeting & Forecasting . key constraints) 4 Distribute Business unit targets and budget guidelines and assumptions Ist Cut Budget available 11 ‘What If’ analysis/ scenario modeling 15 Process Internal Allocations 17 Final Budget available online 9 Review/Challenge/ Validate 12 Communicate amendments required 15 Review/Challenge/ Validate 8 Consolidate 14 Re-consolidate End Business Units/Departments 5 Align BU Targets to Group BU targets 8 Complete Budgeting Templates Answer Queries Answer Queries 13 Amend Online Templates to reflect changes 5 Review Key Business Drivers & KPIs 7 ‘What If’ analysis/ scenario modeling 6 Use model plans to arrive at Budget numbers . <Planning. expectations) 2 Set high level Business Unit Targets and assumptions 10 Review/Challenge/ Validate 16 Budget Acceptable YES 17 Sign Off Budget DSC – Planning & Budgeting 0 Derive Financial targets & Key assumptions 3 Draft high level revenue.Detailed Budgeting> Management NO 0 Strategic Plan 1 Initiate Targets (Strategy.EPACK POLYMERS (P) LTD.

Capex. key constraints) Distribute Business Unit Targets and budget guidelines and assumptions Align BU Strategy to Group BU targets and review Key business Drivers Use Model plans to arrive at Budget numbers What-if analysis/scenario modeling ► Manageme nt ► Manageme nt ► DSC ► ► ► ► Manageme nt ► Manageme nt ► DSC ► ► ► ► ► ► ► ► ► ► Management Management DSC DSC Unit Heads Units/ Plants Units/ Plants ► DSC Unit Heads DSC Unit Heads DSC/ Units Heads ► DSC/ Units Heads ► Managemen t ► Unit Heads ► ► ► Unit Heads Units/ Plants Units/ Plants Units/ Plants ► Units/ Units/ Plants ► Units/ . HCL INFO SYSTEM LTD. ► ► ► ► ► ► ► ► ► ► 3. 1 2 3 4 5 6 7 Responsibility ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION Initiate high level Targets (Strategy.EPACK POLYMERS (P) LTD. SL. EBIT (incl. expectations) Set High level Business unit Targets and Assumptions Draft high Level Revenue. NO .

ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION Complete Budget Templates and Consolidate Review/ Challenge/ Validate by DSC Management Reviews/ Challenges/ Validates the budget What-if analysis/scenario modeling Communicate amendments required Update online templates to reflect amendments Re-consolidate Review/ Challenge/ Validate by DSC and process internal allocations Budget Acceptance Final budget signed off Key Control Requirements ► ► ► ► ► ► ► ► ► Plants Units/ Plants DSC Manageme nt DSC DSC Units/ Plants DSC DSC ► ► ► ► ► ► ► ► ► Plants Units/ Plants DSC Manageme nt DSC DSC Units/ Plants DSC DSC ► ► Units/ Plants ► ► ► ► ► ► ► ► ► Units/ Plants DSC Managemen t DSC DSC Units/ Plants DSC DSC DSC ► Management ► ► DSC DSC ► Units/ Plants ► ► ► ► DSC DSC Management DSC Manageme nt ► DSC Manageme nt ► DSC Managemen t ► DSC . SL. NO . 8 9 10 11 12 13 14 15 16 17 4.EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.

EPACK POLYMERS (P) LTD. NO . CONTROL REQUIREMENTS 1 2 TO BE PROCESS (STANDARD SAP/CUSTOMIZATION/ MANUAL ► There should be reasonable tolerance ► Manual thresholds established to facilitate a budget vs. HCL INFO SYSTEM LTD. SL. NO. SL. 1 ► Plan Vs Actual ► ► Period Nature of expense ► Planned amount ► Actual expenditure TO BE PROCESS (STANDARD SAP/CUSTOMIZATION/ MANUAL ► Manual PRIORITY (HIGH/MEDIUM/ LOW) ► SAP FUNCTIONALITY TO BE USED Low ► . actual review ► The significant variances should be ► Manual thoroughly investigated and appropriately documented Key MIS/Report Requirements KEY MIS KEY FIELDS PRIORITY (HIGH/MEDIUM/LOW) SAP FUNCTIONALITY TO BE USED ► High ► ► Medium ► 5.

NO. Key Performance Indicator (KPI’s) KEY KPIS TO BE PROCESS (STANDARD SAP/CUSTOMISATION/ MANUAL ► Days to complete Budgeting ► Manual process ► Percentage of accuracy ► Manual between budgets & actual PRIORITY (HIGH/MEDIUM/LOW) SAP FUNCTIONALITY TO BE USED 1 2 ► ► Low Low ► ► . SL. 2 3 KEY MIS KEY FIELDS ► ► Variance Analysis Annual Budgeting at Unit Level ► Variance amount ► Unit / Plant wise annual budgets ► Department wise budgets TO BE PROCESS (STANDARD SAP/CUSTOMIZATION/ MANUAL ► Manual ► PRIORITY (HIGH/MEDIUM/ LOW) ► ► SAP FUNCTIONALITY TO BE USED Low Low ► ► Manual 6.EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD. SL. NO .

8. SL. SL. Integration Aspects: INTEGRATION ASPECTS ► ► All unit/ plant heads Management Interface Requirements: INTERFACE REQUIREMENTS ► NA . NO. HCL INFO SYSTEM LTD. NO. SL.EPACK POLYMERS (P) LTD. NO. 2. 1. KEY KPIS 3 ► Deviations from targets TO BE PROCESS (STANDARD SAP/CUSTOMISATION/ MANUAL ► Manual PRIORITY (HIGH/MEDIUM/LOW) SAP FUNCTIONALITY TO BE USED ► High ► 7.

2. SL. 11. SL. 1. Key Inputs: KEY INPUTS TO THE PROCESS ► ► Previous year performance reports Strategic business plan and objectives 10. maintaining and monitoring annual budgets. HCL INFO SYSTEM LTD.EPACK POLYMERS (P) LTD. NO. 9. Key Outputs: KEY OUTPUTS OF THE PROCESS ► Annual budget for company as a whole and individual for all business unit/ plants. Gaps Indentified/ Process Improvements GAPS INDENTIFIED/ PROCESS IMPROVEMENTS ► REFERENCE ► Systematic method of preparing. SL. . 1. 1. NO. NO.

2. 1. HCL INFO SYSTEM LTD. 2.EPACK POLYMERS (P) LTD. Process Flow: .2 Forecasting 1. Process objective: The objective if the process is to employ short term forecasting that is focused on the achievement of long term strategic objectives and to ensure that resources are co-ordinated & used in the most effective way.

Capex EBIT (incl. Budgeting & Forecasting . <Planning.Forecasting> Management 0 High level environmental analysis (internal & External NO 1 Set High level revised Targets (Strategy. HCL INFO SYSTEM LTD. key constraints) 4 Distribute Business unit targets and forecast guidelines and assumptions Ist cut forecast available 11 ‘What If’ analysis/ scenario modeling 15 Process Internal Allocations 17 Final forecast available online 0 Extrapolate existing data 9 Review/Challenge/ Validate 12 Communicate amendments required 15 Review/Challenge/ Validate 8 Consolidate 14 Re-consolidate End Business Units/Departments 5 Review actual vs budget BU reports 8 Complete forecasting Templates Answer Queries Answer Queries 13 Update Online Templates to reflect amendments 5 Review Key Business Drivers & KPIs 7 ‘What If’ analysis/ scenario modeling 6 Use model plans to derive revised forecast numbers .EPACK POLYMERS (P) LTD. expectations) 2 Set high level revised Business Unit Targets and assumptions 10 Review/Challenge/ Validate 16 forecast Acceptable 17 Sign Off forecast YES DSC – Planning & Budgeting 0 Actual Vs Budget Reporting 3 Draft high level revenue.

that the annual budget. ► It is not recommended to adopt the process of monthly rolling forecasts ► Manual ► . ► The most appropriate form of forecasting is to adopt quarterly rolling forecasts. This review should then underpin the restatement of financial projections.EPACK POLYMERS (P) LTD. 0 Purpose of Forecasting SAP FUNCTIONALITY TO BE USED ► Forecasting is used to periodically update an annual budget to reflect revised assumptions or changed business circumstances in order to take corrective action on a timely basis where appropriate and also to manage expectations. in effect. 3.N ACTIVITY O. HCL INFO SYSTEM LTD. adopt the same process as budgeting starting with a review of strategic plans and corporate objectives. however. Process Description: TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) ► SL . forecasting should be undertaken at a higher level. ► Forecasting should. with less detail. ► In all cases.

expectations) except in exceptional circumstances. impact in raw material price.EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD. ► The current period performance is reviewed against the Budgets and the variances are analyzed. ► Management defines the strategy and ► Manage ment ► Manual ► . as it carries the risk that the “art of planning” becomes institutionalized and the forecasting process is viewed as a “number crunching exercise” rather than a strategic review of how well the business is meeting its long term objectives. ► The existing data is extrapolated to set revised “top down” targets. etc. divestment of a business unit. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 1 Set high level revised Targets (Strategy.. ► The management considers the external and internal changes to the environment which will impact achieving the budget results (adverse or favorable) e.N ACTIVITY O. economic downturn.g. SL .

etc) based on Targets set by Management. Capex. key constraints) Distribute Business Unit Targets and forecast guidelines and assumptions 3 4 5 Review actual Vs Budget Business unit-wise reports. ► Revised high level targets are broken down at Business unit levels considering the Business units parameters. ► DSC department communicates the Business unit revised targets set by Management for the respective Business Units. ► Respective Business units shall review the actual Vs Budgets performance reports.N ACTIVITY O. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 2 Set High level revised Business unit Targets and Assumptions Draft high Level revised Revenue. SL . HCL INFO SYSTEM LTD. and assumptions. analyze the variances.EPACK POLYMERS (P) LTD. ► DSC department prepares revised high level Financial Figures (Revenues. Capex. Business drivers expectations. EBIT (incl. EBIT. business drivers and Key performance indicators. ► The DSC department also communicates proper forecasting guidelines. ► DSC ► Manual ► ► DSC ► Manual ► ► DSC ► Manual ► ► Units/ Plants ► Manual/ SAP ► Currentl y as the planning tool is . capacities clearly linking it to the Business unit wise Strategic plan and corporate objectives.

N ACTIVITY O. SL . ► In SAP cost center planning tool can be use for annual budgetin g ► 6 Use Model plans to Respective Business units prepare the ► Units/ ► Manual/ ► Currentl .EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD. and KPIs TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED not being impleme nted so the same will be a manual process.

arrive at Budget numbers TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP SAP FUNCTIONALITY TO BE USED forecasts in pre-defined forecast templates in the system based on the revised targets and forecast guidelines. ► Units/ Plants ► Manual/ SAP y as the planning tool is not being impleme nted so the same will be a manual process.N ACTIVITY O. Plants 7 What-if analysis/scenario modeling ► Respective Business units shall then carry out what-if analysis/scenario modeling in the ERP system to simulate different permutations/combinations before arriving at the revised forecast figures in line with the Group BU targets.EPACK POLYMERS (P) LTD. ► Business units can refer to current year’s actual results Vs budgets to arrive at forecast numbers. HCL INFO SYSTEM LTD. SL . ► Currentl y as the planning tool is not being impleme nted so the .

N ACTIVITY O. ► Currentl y as the planning tool is not being impleme nted so the same will be a manual process. ► Units/ DSC ► Manual/ SAP same will be a manual process.EPACK POLYMERS (P) LTD. ► 9 Review/ Challenge/ Validate by DSC ► The consolidated forecasts are reviewed by the DSC. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 8 Complete forecast Templates and Consolidate ► Respective Business units shall finalize the revised forecast templates based on different What-if analysis and the Business unit wise forecast templates are then consolidated by the DSC-Planning and Budgeting department to arrive at Consolidated forecast numbers for the company as a whole. HCL INFO SYSTEM LTD. DSC co-ordinates with the Business units to obtain explanation regarding any queries regarding the ► DSC ► Manual . SL .

if any. the consolidated forecast is finalized and sent to the Management for review and challenge ► Management reviews the 1st cut forecasts forwarded by the DSC and challenges/validates the assumptions/drivers. DSC carries out What-if scenario analysis and identifies if the forecasts require any amendments.N ACTIVITY O. SL . ► It further identifies the amendments that are required to be made in the Business unit wise forecasts ► DSC communicates the amendments ► Manage ment ► Manual ► ► DSC ► Manual ► ► DSC ► Manual ► . ► Based on Inputs received from Management. HCL INFO SYSTEM LTD.EPACK POLYMERS (P) LTD. ► Changes/additional requirements. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 10 Management Reviews/ Challenges/ Validates the forecasts 11 What-if analysis/scenario modeling 12 Communicate forecasts. etc and explanations for the significant variances. ► On completion of the review. are communicated by the management to the DSC.

SL .N ACTIVITY O. HCL INFO SYSTEM LTD. ► DSC re-consolidates the business unit wise forecasts and arrives at the consolidated forecasts for the company as a whole ► The revised consolidated forecasts are reviewed by the DSC. DSC co-ordinates with the Business units to obtain explanation on any queries regarding the budgets. ► Units/ Plants ► Manual ► ► DSC ► Manual ► ► DSC ► Manual ► .EPACK POLYMERS (P) LTD. ► Respective business units will review the amendments communicated by the DSC along with the original forecasts and assumptions. amendments shall be incorporated in the Business unit wise forecasts and the revised forecasts will be forwarded to the DSC for reconsolidation. ► Post review. amendments required 13 Update online templates to reflect amendments TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 14 Re-consolidate forecasts 15 Review/ Challenge/ Validate by DSC and process internal allocations required to the respective Business units for making changes in the unit wise forecasts.

HCL INFO SYSTEM LTD. ► Management signs off the final forecasts and then DSC update the final forecasts online. other support function costs. ► Manage ment ► Manual ► ► Manage ment ► Manual/ SAP ► . the forecasts are signed off as final by the Management. ► In case the Management still has queries regarding the forecasts. ► The updated forecasts are then forwarded to the Management for its acceptance and sign-off. ► Revised consolidated forecasts are reviewed by the Management.N ACTIVITY O. DSC allocates the revised common costs (like corporate costs. ► Post finalization. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED ► 16 Forecast Acceptance 17. In case the Management is satisfied with the Forecasts.EPACK POLYMERS (P) LTD. SL . Final Forecasts signed off On completion of the review. etc) to the respective business units. the same is sent back to the DSC with management comments for revision and further action. the revised consolidated forecasts are finalized.

EBIT (incl.N ACTIVITY O. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED ► Actual can then be compared against Budgets as well as forecasts.EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD. 4. Capex. SL . expectations) Set High level revised Business unit Targets and Assumptions Draft high Level revised Revenue. NO . 1 2 3 4 5 6 7 Responsibility ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION Set high level revised Targets (Strategy. SL. Business drivers and KPIs Use Model plans to arrive at Budget numbers What-if analysis/scenario modeling ► Manageme nt ► DSC ► ► ► ► Manageme nt ► DSC ► ► ► ► ► ► ► ► ► ► Management Management Mangement Management DSC DSC DSC ► ► ► ► ► ► ► DSC DSC DSC DSC Units/ Plants ► Units/ Plants ► Units/ Units/ Plants ► Units/ Plants ► Units/ Managemen t Units/ Plant Heads Units/ Plant Heads Units/ Plant Heads Units/ Plants Units/ Plants Units/ Plants . key constraints) Distribute Business Unit Targets and forecast guidelines and assumptions Review actual Vs Budget Business unitwise reports.

SL. 8 9 10 11 12 13 14 15 16 17 ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION Complete forecast Templates and Consolidate Review/ Challenge/ Validate by DSC Management Reviews/ Challenges/ Validates the forecasts What-if analysis/scenario modeling Communicate amendments required Update online templates to reflect amendments Re-consolidate forecasts Review/ Challenge/ Validate by DSC and process internal allocations Forecast Acceptance Final Forecasts signed off Plants ► Units/ DSC ► ► ► ► ► ► ► ► Plants ► Units/ DSC ► ► ► ► ► ► ► ► ► ► DSC ► ► ► Units/ DSC DSC DSC Manageme nt DSC DSC Units/ Plants DSC DSC DSC Manageme nt DSC DSC Units/ Plants DSC DSC Unit/ Plant Heads ► Management ► DSC ► Management ► DSC ► Managemen t ► DSC ► Units/ Plants ► Units/ Plants ► DSC ► DSC ► ► DSC ► DSC ► Manageme nt ► Manageme nt Manageme nt ► Manageme nt Management Management Managemen t ► Managemen t . NO .EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.

NO . 1 Key MIS/Report Requirements KEY MIS KEY FIELDS TO BE PROCESS (STANDARD SAP/CUSTOMISATION/ MANUAL ► Manual/ Customization PRIORITY (HIGH/MEDIUM/ LOW) ► SAP FUNCTIONALITY TO BE USED ► Forecasts Vs Actual ► ► ► ► 2 3 ► ► Variance Analysis Changes w.r. ► ► ► ► ► Period Nature of expense Planned amount Actual expenditure Variance amount Unit/ plant wise annual budgets Revised forecasts Reasons thereon Approving authority High ► ► Manual/ Customization ► Manual/ Customization ► ► High Medium ► ► . 5.EPACK POLYMERS (P) LTD.t previous annual budget. SL. HCL INFO SYSTEM LTD.

SL. Integration Aspects: INTEGRATION ASPECTS ► ► All Business units/ Plants/ User Departments Management Interface Requirements: . NO. HCL INFO SYSTEM LTD. Key Performance Indicator (KPI’s) KEY KPIS TO BE PROCESS (STANDARD SAP/CUSTOMISATION/ MANUAL ► Manual ► PRIORITY (HIGH/MEDIUM/LOW) SAP FUNCTIONALITY TO BE USED 1 2 ► Days to complete Forecasting process ► Percentage of accuracy between budgets & actual ► ► Low Low ► ► Manual 7. 1.EPACK POLYMERS (P) LTD. 6. 8. 2. SL. NO.

2. 1. Key Outputs: KEY OUTPUTS OF THE PROCESS ► Revised forecasts for company as a whole and individual for all business unit/ plants. SL. SL. 10. 1.EPACK POLYMERS (P) LTD. NO. INTERFACE REQUIREMENTS ► NA 9. Key Inputs: KEY INPUTS TO THE PROCESS ► ► Current period actual Vs Budgets performance reports Revised targets and assumptions. SL. NO. HCL INFO SYSTEM LTD. NO. 11. Gaps Indentified/ Process Improvements .

HCL INFO SYSTEM LTD. maintaining and monitoring annual budgets. Process Flow: . 9. 1 GAPS INDENTIFIED/ PROCESS IMPROVEMENTS ► REFERENCE ► Systematic method of preparing. Asset Accounting 1.3. Process objective: Capital expenditure budgeting would be done to capture budgets for each unit/ department and company as a whole and to have real time budget availability checking and the variations. if any. NO.1 Capital Expenditure Budgeting 8.EPACK POLYMERS (P) LTD. SL.3. 1.

HCL INFO SYSTEM LTD. timelines & constraints Start 5 Consolidated Capex plan reviewed by management along with all HODs Whether the Capex plan requires change NO 7 Approves Capex plan and treated as Budget. End <Management> 1 Communicate Budget Guidelines. Yes . Capex budget forwarded to DSC for updating in system.EPACK POLYMERS (P) LTD. 8 Updates budget and intimates to all departments. <Asset Accounting – Capital Budgeting> <All Department> No 2 Prepare Capex requirement planning 3 HODs to review & finalize capex requirement Whether Capex finalized at Department/ Unit level Yes Capex plan forwarded to DSC < DSC > 4 Consolidates Capex plan under CFO Plan forwarded to DSC for making changes 6 Requisite changes are made and forwarded to management for approval.

timelines & constraints Prepare Capex 2 management should prepare the guidelines as per its future plans and communicate the same to the departments/ units to make them aware of the management’s vision with respect to the expansion and investment plans. ► All the departments / units should prepare ► The ► Management ► Manual ► ► Units/ Plants ► Manual ► . HCL INFO SYSTEM LTD. setting of new units and acquiring heavy machinery. Process Description: SL. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) ► SAP FUNCTIONALITY TO BE USED ► The budgeting process for the coming year should get initiated in the last quarter for the previous year. ACTIVITY NO.EPACK POLYMERS (P) LTD. 10. The basis should be taken from the management plan for expansion. ► ► 1 Communicate Budget Guidelines.

requirement planning TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 3 HODs to review & finalize capex requirement 4 Consolidates Capex plan under CFO detailed capital expenditure requirements identifying all major / minor capital assets expenditure to be incurred during the year. ► The consolidated plan is prepared ► Units/ Plants ► Manual ► ► DSC ► Manual ► . SL. HCL INFO SYSTEM LTD. and finalize the same. timelines for execution of plan and financial feasibility considering the cost benefits analysis for the investment. ease of modification / change to existing investment.EPACK POLYMERS (P) LTD. ACTIVITY NO. ► DSC consolidates Capex plan received from all departments/ units to each asset level. ► HOD of the respective department/ Unit reviews the detailed capital requirements plan in terms of technical viability considering useful life of the asset. ► Technical details are prepared and benefits from the expenditure are evaluated and updated in ‘Capex plan approval’ form.

► Changes are identified by the management in the budget and the same is forwarded to Corporate MIS for amendments. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 5 Consolidated Capex plan reviewed by management along with all HODs 6 7 Requisite changes are made and forwarded to management for approval Approves Capex plan and treated department wise. ► DSC makes requisite changes as decided in the budget approval meeting and forwards the same to management for approval. ► Management ► Manual ► . ► The consolidated Capex plan is reviewed by the management with all departments/ units’ heads. are measured. ► The technical viability. SL. ACTIVITY NO. financial feasibility etc. HCL INFO SYSTEM LTD.EPACK POLYMERS (P) LTD. ► ► Management ► Manual ► ► DSC ► Manual ► Management approves the Capex plan and the same is treated as Capex budget. unit wise and for the company as a whole ► CFO to review the consolidated plan in view of fund availability and make appropriate changes if required.

► A reference number for each individual asset is generated. ► The system will check the availability of budget at the time of creation of purchase indent.EPACK POLYMERS (P) LTD. If the budget is available then only purchase indent should get created otherwise a sanction of additional budget needs to be obtained ► DSC ► SAP ► Internal Orders 11. TO BE PROCESS DEPARTMENT MODE (SAP/MANUAL) SAP FUNCTIONALITY TO BE USED 8 ► DSC maintains the budget in the system for all individual assets. Responsibility . Updates budget and intimates to all departments. HCL INFO SYSTEM LTD. ACTIVITY NO. ► All departments / units are intimated for their respective budget reference number. as Budget. These budget reference numbers will be used by respective departments at the time of generation of purchase indent. SL.

Updates budget and intimates to all departments. HCL INFO SYSTEM LTD. NO . SL. timelines & constraints Prepare Capex requirement planning HODs to review & finalize capital expenditure requirement Consolidates Capex plan under CFO Consolidated Capex plan reviewed by management along with all HODs Requisite changes are made and forwarded to management for approval Approves Capex plan and treated as Budget.EPACK POLYMERS (P) LTD. ► DSC ► 2 ► ► Respective Department 3 ► ► 4 5 ► ► Unit heads/ Department heads ► DSC ► Unit heads/ Department heads ► Unit heads/ Department heads ► Unit heads/ Department heads ► DSC Head ► ► Management ► All units/ Departments All units/ Departments All units/ Departments ► Management ► ► Management ► ► ► Management Management ► DSC 6 ► ► DSC 7 8 ► ► ► ► Management DSC Unit heads/ Department heads ► Unit heads/ Department heads ► Management ► All units/ Departments ► All units/ Departments ► ► Management All units/ Departments ► ► Finance Head Management ► DSC All units/ Departments ► Management . 1 ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION ► Communicate Budget Guidelines.

12. NO. SL. ► ► ► Asset number Budget amount Actual Medium ► Report on Internal Order . 1 Key MIS/Report Requirements KEY MIS KEY FIELDS TO BE PROCESS (STANDARD SAP/CUSTOMISATION/ MANUAL ► Standard SAP PRIORITY (HIGH/MEDIUM/ LOW) ► SAP FUNCTIONALITY TO BE USED ► Report on Budget Vs Actual Capex. HCL INFO SYSTEM LTD. NO .EPACK POLYMERS (P) LTD. SL. Key Control Requirements CONTROL REQUIREMENTS TO BE PROCESS (STANDARD SAP/CUSTOMISATION/ MANUAL ► The capital expenditure request forms ► Manual should be utilized for all fixed asset purchases ► The fixed asset purchases should be ► SAP against an approved budget PRIORITY (HIGH/MEDIUM/LOW) SAP FUNCTIONALITY TO BE USED 1 ► Medium ► 2 ► Medium ► Internal Order 13.

HCL INFO SYSTEM LTD.t to assets not procured as per the plan.EPACK POLYMERS (P) LTD. 14. Key Performance Indicator (KPI’s) KEY KPIS TO BE PROCESS (STANDARD SAP/CUSTOMIZATION/ MANUAL ► Manual PRIORITY (HIGH/MEDIUM/LOW) SAP FUNCTIONALITY TO BE USED 1 ► Time consumed in budget preparation ► Low ► . SL. SL. NO. NO .r. Expenditure Cost center ► Asset number ► Budget amount ► Actual Expenditure ► ► ► ► Listing will have to be taken out of internal orders which have budget at the end of the year. KEY MIS KEY FIELDS TO BE PROCESS (STANDARD SAP/CUSTOMISATION/ MANUAL PRIORITY (HIGH/MEDIUM/ LOW) SAP FUNCTIONALITY TO BE USED 2 ► Un-utilized sanctioned budget w.

SL. 2. SL. KEY KPIS 2 3 ► Efforts in terms of time and money in budget preparation. ► Percentage of accuracy between budgets and actual.EPACK POLYMERS (P) LTD. 3. ► Manual ► High ► 15. 1. Integration Aspects: INTEGRATION ASPECTS ► User Departments ► Management ► Procurement Department . TO BE PROCESS (STANDARD SAP/CUSTOMIZATION/ MANUAL ► Manual ► PRIORITY (HIGH/MEDIUM/LOW) SAP FUNCTIONALITY TO BE USED ► ► Low High ► ► Standard SAP/Manual The report on Budget Vs Actual Capex would help in calculating the percentage 4 ► Number of approvals for sanction of additional budget. HCL INFO SYSTEM LTD. NO. NO.

SL. 2. Capital expenditure requirements from various departments. 18. Key Outputs: KEY OUTPUTS OF THE PROCESS ► ► Department/ unit wise Capex budgets to the individual assets levels. 2. SL. SL. NO.EPACK POLYMERS (P) LTD. Key Inputs: KEY INPUTS TO THE PROCESS ► ► Management’s vision about the expansion and investment plan. NO. HCL INFO SYSTEM LTD. 1. 1. NO. Available budgetary balance for individual department/ unit . Interface Requirements: INTERFACE REQUIREMENTS ► NA 17. 16.

EPACK POLYMERS (P) LTD. PO and goods Department receipt / service Acceptance sheet. Gaps Indentified/ Process Improvements REFERENCE ► ► ► SL. and o Quantity and price of the goods invoiced by the vendor ► When matching the three document types. pre-defined tolerance limits are used for all fields other than the PO number. 4 3 Way matching? ► Once the materials are quality cleared. The comparison will be done as follows: o Quantity and price of the goods ordered as per PO. This match is performed by checking the PO number quoted on the three documents. 19. If the invoice is within the limits SAP ► Invoice Verification . HCL INFO SYSTEM LTD. ► Finance SAP matches the invoice. o Quantity of goods received as per the GRN. GAPS INDENTIFIED/ PROCESS IMPROVEMENTS NO. 1 ► Budget availability at the department/ unit level. 2 ► Online estimates and system validation of budgets at the transaction level. SAP tool shall also check other fields such as value and quantity.

quality and vendor. REFERENCE 5 Review matching exceptions ► Finance Department ► Manual ► . based on the PO number. NO. HCL INFO SYSTEM LTD. If system can’t match one of the documents. SL. where an invoice and PO is matched but a services acceptance form is missing. GAPS INDENTIFIED/ PROCESS IMPROVEMENTS then it is progressed through the process. ► For services. ► Exceptions will be resolved internally first and in case exceptions cannot be resolved. it will report any unmatched documents which have the same value. system workflow shall notify the requesting department to ensure the acceptance has not been missed ► Invoices without a valid PO or which have failed the tolerance checks and require a correction in the invoice to be processed within the system shall be identified. the invoice will be returned to the vendor.EPACK POLYMERS (P) LTD.

6.EPACK POLYMERS (P) LTD. Process objective: Same Chart of Account 1000 used for new company code EVISION.1 Chart of Account 1. Process Flow: . 2.6 General Ledger Account 1. 1. HCL INFO SYSTEM LTD.

<Sub-process – Chart of Account> NO UserDepartments Departments User Start 1 Identify need for new/amended GL Code Confirm if change is required? END YES NO Finance-DSC DSC Finance- 2 Prepare request for change to Chart of Account code Request accepted? YES 3 Review and approve Chart of Account codes New GL/Changes approved? YES 4 Set up new code in Chart of Account Notify user NO New/Amended GL Code request . HCL INFO SYSTEM LTD.EPACK POLYMERS (P) LTD.

. HCL INFO SYSTEM LTD. Company Code is 2000 for E Vision with same Controlling Area and Business Area is 2000. Business Processes Same process are mapped and followed in EVISION as in EDURABLE.EPACK POLYMERS (P) LTD. Profit centre is 2010.