RD.
050 BUSINESS REQUIREMENTS SCENARIOS FOR CORE BUSINESS PROCESS
ORAERP Inc. COMAPNY
Oracle Accounts Payables
Author:
Creation Date:
02-June-13
Last Updated:
02-June-13
Document Ref:
RD050_AP
Version:
1.0 Final
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i|P a g e
RD.050 Business Requirements Scenarios
RD.050
Doc Ref:
Ver.1.1 Final
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Author
29-May13
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References
Document Name
Ref.
MOM & AS-IS flow charts recorded
Accounting policies and procedure manual
by D&T
Business plans for unbundled companies by
D&T
Proposed Organizational Chart for 10
companies
Sector Law
Tender specification requirements (excel
sheets)
-AP
Name
Position
-----
Reviewers
Distribution
Copy
No.
1
2
ii
Name
Location
RD.050 Business Requirements Scenarios
RD.050
Doc Ref:
Ver.1.1 Final
Note To Holders:
If you receive an electronic copy of this document and print it out, please write
your name on the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front
cover, for document control purposes.
iii
RD.050 Business Requirements Scenarios
RD.050
Doc Ref:
Ver.1.1 Final
1. BUSINESS PROCESS IDENTIFICATION
BOOKMARK NOT DEFINED.
ERROR!
1.1 Supplier Creation (AP001) .................................................................................................................. 8
1.2 Creating Standard Invoice With Purchase Order/ GRN (AP002) ................................... 8
1.3 Creating Standard Invoice Without Purchase Order (AP003) ...................................... 10
1.4 Creating Prepayment Invoice (AP004) ....................................................................................... 12
1.5 Entering Credit Memo (AP005) ...................................................................................................... 14
1.6 Payment (AP006) .................................................................................................................................. 15
2. BUSINESS PROCESS DIAGRAMS
BOOKMARK NOT DEFINED.
ERROR!
2.1 Invoice WorkBench ................................................................. Error! Bookmark not defined.
2.4 Invoice Processing For Assets ............................................ Error! Bookmark not defined.
2.5 Payment Process ...................................................................... Error! Bookmark not defined.
2.6 Month End Process .................................................................. Error! Bookmark not defined.
3. OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE
BOOKMARK NOT DEFINED.
iv
ERROR!
RD.050 Business Requirements Scenarios
Doc Ref: RD.050
Ver.1.1 Final
Objectives
The objective of this document is to outline the Business Requirements, in as much detail as possible, related to
General Ledger business processes in ORAERP COM INC., Abu Dhabi, to facilitate implementation of Oracle
Accounts Payables.
BASIC GUIDELINES TOWARDS FINALISATION OF BUSINESS REQUIREMENTS/CURRENT BUSINESS
BASELINE DOCUMENT SHALL BE TO ENSURE AN EFFICIENT, SMOOTH AND EFFECTIVE
IMPLEMENTATION, BY OBSERVING THE FOLLOWING:
1. The objective is to utilize to the best possible extent, the flexibility and facilities of Oracle General
Ledger.
2. Flexibility, therefore, will be the norm and will be Built In at every stage to the best possible extent,
based on available current information on the Business Processes given by the users.
3. Reduction of the gaps will be ensured as far as possible.
RD.050 Business Requirements Scenarios
Doc Ref: RD.050
Ver.1.1 Final
Scope
The scope of this study is limited to the functions pertaining to Accounts Payble based on the Business
Requirements information provided by ORAERP COM INC..
The focus of the study and this document is to identify and outline the processes involving the
management of the Accounts Payable functions in the Oracle Application.
Business requirements Information
A combination of the following methods were used for collecting data on current business scenario
and future requirement for the 10 new companies
Standard questionnaire based discussions with purchasing and stores departments on
requirement of standard functions, special issues
Visit to all all major stores and study of all processes, procedure, documents
Overview of current IT systems being used
Current forms and reports used for purchasing, contracts and inventory functions
Document review of proposed Business plans, Statement of Accounting policies and procedures
by Deloitte & Touche with reference to inventory & purchasing function
(SAPP 3 & 12)
Study of proposed draft organization structure for the 10 companies and sector law
Information collected from Function Heads and their team on various dates during the
Requirements Analysis in Jan 2003, through meetings and discussions at various locations.
Discussions with user departments like Services, Generation, T&C, Projects etc
Discussions with General Managers of new companies.
Validation of requirements specified in the tender documents.
AS-IS Processes
Based on above and various Minutes of Meetings all the AS-IS processes as understood were drawn.
TO-BE Processes
The current business scenario has limited application and usefulness and requirement analysis has to be
primarily evolved using available documents, requirements communicated through various discussions on the
future vision, policies and procedures for the new companies.
The following inputs were considered for the design of TO-BE processes
Proposed organization structure
D&T policies to the extent applicable to business processes
Best practices as per Oracle ERP standard processes
Elements of Current processes only to the extent applicable in future scenario
Abbreviations Used
The following abbreviations with the expanded forms have been used in this document:
Abbr.
6
Detail
RD.050 Business Requirements Scenarios
Abbr.
Doc Ref: RD.050
Ver.1.1 Final
Detail
AP
INV
Accounts Payable
Invoice
CUR
Currency
INT
Invoice Type
SEQ
Sequence
Amt
Amount
DR
Debit
CR
Credit
LT
Ledger Type
CUR
Currency Code
INB
Invoice Batch
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
1.1 Supplier Creation (AP001)
Process: Supplier Creation
Mapping Team: ORAERP COM INC.
Librarian:
Business Function: Accounts Payable
Date :May 30,2013
Process Owner: Finance Team
Core (Y/N) : Yes
Priority (H, M, L): High
Process Number: AP001
Description: This process explains the process of creating supplier
Assumptions
ADBC Company, Supplier master data is created at corporation level and the respective sites are created in each legal
entity/operating unit
Event
Description:
This process is triggered when we want to purchase any material from the suppliers.
Number:AP.001
Type: Master
Source Agent: Finance Team
Mechanisms: System Assisted
Process
ID #
Elementary
Business
Function
Description
Type
AP001.01
Check whether the supplier exists in the system
or not.
Supplier Account
AP001.02
Inquire a Supplier record in the system with
appropriate information such as Name or
Number or etc.
If the supplier is not defined, enter necessary
details such as Supplier name, supplier type,
Bank account etc
Supplier details created with automatic supplier
number.
Internal System
Assisted. Use PIN number
to be unique. Field
should be mandatory
Internal System
Assisted
AP001.03
AP001.04
Agent
Status
Query and Check
Finance
Team
Active
Supplier Account
Result of
Supplier query
Finance
Team
Active
Internal Manual
Supplier/Employ
ee Account
Supplier details
entered
Finance
Team
Active
Internal System
Assisted
Supplier/Employ
ee Account
Record Created
Finance
Team
Active
1.2 Creating Standard Invoice With Purchase Order/ GRN (AP002)
Result
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
Process: Standard Invoice With Purchase Order (PO)
Mapping Team: ORAERP COM INC.
Librarian:
Business Function: Accounts Payable
Date : June-2-2013
Priority (H, M, L):
High
Process Owner: Finance Team
Core (Y/N)
Yes
Process Number: AP002
Description: This Process explains creation of standard invoice, which has approved purchase order/ Receipt.
Assumptions:
In ORAERP COM INC. invoices are created at operating unit level and are either matched with the PO or receipt.
Event
Description: This process is triggered when we receive the material from the supplier.
Number:AP.002
Type: Transaction
Source Agent: Finance Team
Mechanisms: System Assisted
Process
ID #
Description
Type
Elementary
Business Function
AP002.01
Receive the Invoice from Supplier.
Internal Manual
Standard Invoice
With PO
AP002.02
Enter the Invoice transaction into the system.
Internal System
Assisted
Standard Invoice
With PO
AP002.04
If it is a foreign currency invoice, enter the
invoice amount in foreign currency. System
should be able to convert it into functional
currency automatically based on
corporate/user/spot rates.
Invoice currency should be same as PO/GRN
Currency.
Payment currency should be same as Invoice
currency.
Matching of the Invoice with PO and Receipt
based on 2-way/3-way/4-way. The matching
Internal System
Assisted
Internal System
Assisted
Internal System
Assisted
Internal System
Assisted
AP002.05
AP002.06
AP002.07
Result
Agent
Status
Finance Team
Active
Finance Team
Active
Standard Invoice
With PO
Invoice is
available for
entering into the
system.
Invoice available
for matching to
PO and receipt
Invoice entered
in the system
Finance Team
Active
Standard Invoice
With PO
Standard Invoice
With PO
Standard Invoice
With PO
Invoice entered
in the system
Invoice entered
in the system
Matched Invoice
with PO /
Finance Team
Active
Finance Team
Active
Finance Team
Active
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
Process
ID #
Description
Type
Elementary
Business Function
will be based on the supplier.
AP002.08
AP002.09
AP002.11
Result
Agent
Receipt.
Validate the Invoice. System would validate
whether the invoice quantity and amount are
same as PO /GRN
If some information is needed for the invoice,
place a hold manually till receiving the
information.
Create Accounting for the Invoice and transfer
the journal entries in detail to General Ledger.
Internal System
Assisted
Standard Invoice
With PO
Invoice is
validated
Finance Team
Active
Internal System
Assisted
Standard Invoice
With PO
Hold placed
manually.
Finance Team
Active
Internal System
Assisted
Standard Invoice
With PO
Accounting
entries Created.
Finance Team
Active
1.3 Creating Standard Invoice Without Purchase Order (AP003)
Process: Standard Invoice Without Purchase
Order
Mapping Team: ADBC Company
Business Function: Accounts Payable
Librarian:
Priority (H, M, L):
High
10
Status
Date : June-2-2013
Process Owner: Finance Team
Core (Y/N)
Yes
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
Process Number: AP003
Description: This Process explains creation of Standard Invoice, which does not have purchase order.
Assumptions:
In ADCB supplier invoices are created at operating unit level and the invoice lines and distributions are created
manually.
Description: This process is triggered when the services are received/any expenses incurred
Event
Number:AP.03
Type: Transaction
Source Agent: Finance Team
Mechanisms: System Assisted
Process
ID #
Description
Type
Elementary
Business Function
AP003.01
Receive the invoices from supplier or other
concerned department.
Internal Manual
Standard Invoice
Without PO
AP003.02
Record a Standard Invoice details into the
system with the correct expense account.
Internal System Assisted
Standard Invoice
Without PO
AP003.03
If it is a foreign currency invoice, enter the
invoice amount in foreign currency. System
should be able to convert it into functional
currency automatically based on
corporate/user/spot rates.
Payment currency should be same as Invoice
currency.
Internal System Assisted
Standard Invoice
Without PO
Internal System Assisted
Standard Invoice
With PO
AP003.05
Validate the Invoice in the System.
Internal System Assisted
Standard Invoice
Without PO
AP003.07
Create Accounting for the Invoice and transfer
the Journal Entries to General Ledger
Internal System Assisted
Standard Invoice
Without PO
AP003.10
System should allow defining distribution sets
and assigning them to Supplier/Invoice.
Internal System Assisted
Distribution Sets
AP003.04
11
Result
Agent
Status
Invoice is
available for
recording into
system
Invoice
entered in the
system
Invoice
entered in the
system
Finance Team
Active
Finance Team
Active
Finance Team
Active
Invoice
entered in the
system
Invoice is
available for
approval
Accounting
entries
generated
Distribution
Sets defined
and assigned
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
12
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
1.4 Creating Prepayment Invoice (AP004)
Process: Prepayment Invoice
Business Function: Accounts Payable
Mapping Team : ADBC Company
Date : June-2-2013
Process Owner: Finance Team
Librarian:
Priority (H, M, L): High
Core (Y/N)
Yes
Process Number: AP004
Description: This Process explains the creation of prepayments, which are treated as advance payment to suppliers/
employees.
Assumptions:
Event
ADBC pays advances to the suppliers and employees.
Description: This process is triggered when there are any advance payments to be made to the suppliers/ employees
Number:AP.04
Type: Transaction
Source Agent: Finance Team
Mechanisms: System Assisted
Process
ID #
Description
Type
Elementary
Business Function
AP004.01
Receive contractual agreement for making the
advance payment
Internal Manual
Advance Payment
AP004.02
Enter a Advance / Prepayment Invoice into
the system
Internal System Assisted
Advance Payment
AP004.03
Internal System Assisted
Advance Payment
AP004.04
Provide a Descriptive Flex field to capture PO,
Reference details. The list should link to the
PO, If it is to be referred to PO.
Validate the Prepayment Invoice.
Internal System Assisted
Advance Payment
AP004.05
Approve the Prepayment in the system
Internal System Assisted
Advance Payment
13
Result
Agent
Status
Prepayment
Invoice is
available for
recording into
the system.
Prepayment
invoice is
created.
DFF data is
captured.
Finance Team
Active
Finance Team
Active
Finance Team
Active
Prepayment is
validated
Prepayment is
available for
Finance Team
Active
Finance Team
Active
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
Process
ID #
Description
Elementary
Business Function
Type
AP004.06
Create Accounting for Prepayment
Internal System Assisted
Advance Payment
AP004.07
Record a payment transaction into the System
Internal System Assisted
Advance Payment
AP004.08
Apply the prepayment upon receiving the
invoice from Vendor.
Create the Accounting and transfer the entire
to General Ledger
Internal System Assisted
Advance Payment
Internal System Assisted
Prepayment
AP004.09
Result
payment
Prepayment
Liability
Clearing is
created.
Prepayment
Available for
application
Prepayment
Applied
Alert is sent
Agent
Status
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
1.5 Entering Credit Memo (AP005)
Process: Entering Credit Memo
Mapping Team: ORAERP COM INC.
Librarian:
Business Function: Accounts Payable
Date : June-2-2013
Priority (H, M, L): High
Process Owner: Finance Team
Core (Y/N)
Yes
Process Number: AP005
Description: This process explains entering Credit memo.
Assumptions:
Standard invoice/material is returned to the supplier
Event
Description: This process is triggered if any purchase returns are there.
Number:AP.005
Mechanisms: System Assisted
14
Type: Transaction
Source Agent: Finance Team
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
Process
ID #
Description
Type
Elementary
Business Function
AP005.01
Receive details of Credit t note from the
supplier or the concerned department
Internal Manual
Entering Credit
Memo
AP005.02
Internal System Assisted
AP005.03
Create a Credit Note transaction into the
system with negative value and match to a PO
if there was a PO
Validate the Credit Note in the system.
AP005.04
AP005.05
Result
Agent
Status
Finance Team
Active
Entering Credit
Memo
Credit memo
is available for
recording into
the system
Credit Memo is
created.
Finance Team
Active
Internal System Assisted
Entering Credit
Memo
Credit Memo
Validated
Finance Team
Active
Approve the Credit Note in the system
Internal System Assisted
Entering Credit
Memo
Finance Team
Active
Create Accounting and Transfer to GL
Internal System Assisted
Entering Credit
Memo
Credit note is
available for
refund/adjust
ment
Accounting is
created
Finance Team
Active
1.6 Payment (AP006)
Process: Entering Payments
Business Function: Accounts Payable
Mapping Team: ADBC Company
Librarian:
Date : June-2-2013
Process Owner: Finance Team
Priority (H, M, L):
High
Core (Y/N)
Yes
Process Number: AP006
Description: This explains the processing of supplier/employee payments for making invoice payments.
Assumptions:
Event
ADBC makes payments in different types like cash, check, bank transfer, L/C
Description: This process is triggered when the invoices are to be paid
Number:AP.006
Type: Transaction
Mechanisms: System Assisted
15
Source Agent: Finance Team
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
Process
ID #
Elementary
Business Function
Description
Type
AP009.01
Enter the payment details of the supplier like
payment amount, bank etc.
Internal System Assisted
Payment
AP009.02
System should be able to print Checks (Pre
printed running stationery) on payment.
Internal System Assisted
Payment
AP009.03
ADBC does payment by Check Payments
mostly and cash payments very rarely.
Internal System Assisted
Payment
AP009.04
Payment currency should be same as Invoice
currency.
Internal System Assisted
Standard Invoice
With PO
AP009.05
Create accounting and Transfer to GL. It
updates the Bank Accounts and Realized
Gain/Loss
System should allow users to void/cancel a
payment.
System should print remittance advice on
payment.
Internal System Assisted
Payment
Internal System Assisted
Payment
Internal System Assisted
Payment
AP009.06
AP009.07
2. BUSINESS PROCESS DIAGRAM
16
Result
Agent
Status
Payment
voucher is
created
Payment
voucher is
created
Payment
voucher is
created
Invoice
entered in the
system
Accounting is
created.
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
Payment is
canceled/void.
Remittance
advice is
printed.
Finance Team
Active
Finance Team
Active
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
2.1 Invoice
Creation:
Process for Asset
Start
Receive the Invoice from Supplier
Match the Invoice Information with GRN
Approve the Invoice
Create Accounting & Run Transfer to GL
Program
17
Run Mass Addition Program to Populate
Asset Information to FA Module
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
2.2 Invoice Payment Process:
18
RD.050 Business Requirements Scenarios
Doc. Ref: RD.050
Ver 1.1 Final
Payments to
voided
Payment
YES
Void Payments
(B) Actions
Select Invoice for Payment
Generate Payments
Match Payments to invoices
Payment Delivery Report
Cheques
19
Payments
Approved?
NO
Correct and
Reapprove
