SAP-TO BE Process

New Allenberrry Works

FICO NAW
Finance and Controlling

Version 1.0
25.09.2006

STATEMENT OF CONFIDENTIALITY / DISCLAIMER

This document is the property of Caritor, Inc. No part of this
document shall be reproduced, stored in a retrieval system,
or transmitted by any means, electronic, mechanical,
photocopying, recording, or otherwise without prior written
permission from Caritor, Inc.

Table of Contents

Table of Contents
Customer Master................................................................................................................................3
1

AS IS Process..........................................................................................................................................4

Core to Be Process.................................................................................................................................5
Process flow chart...................................................................................................................................................... 9

Changes to Existing Organization.........................................................................................................................11

Description of Improvements and Key Metrics.....................................................................................................11
Notes on Further Improvements...........................................................................................................................11
Interface Requirement..........................................................................................................................................11
System Configuration Considerations...................................................................................................................11
File Conversion Considerations............................................................................................................................11
Any reports required related to current business process....................................................................................11
Any document/output would be printed for this business process........................................................................12
Authorization Considerations................................................................................................................................12
End User Training Requirements..........................................................................................................................12

A. SAP Standard Reports..........................................................................................................................13

B. Custom Developments.........................................................................................................................14

Caritor

Confidential

Page ii

SAP-TO BE Process
Customer Master
TO-BE Document
For SAP R/3 Implementation at New Allenberry Works
Date: 25.09 2006
Sr. No of TO BE document

Ref. Sr. No. Of AS-IS document

Name of Business Process:

Customer Master

Module: Finance

Sub module: Accounts Receivable

Version no of document:

Date: 25.09.2006

Version Management This Document is subject to change control. Every change of the document has to Undergo change
control procedure and has to be registered in the following table
Version

Caritor

Change

Prepared By

Confidential

Date

Page 3

SAP-TO BE Process

1 AS IS Process
Customer master is created by accounts department and fills name, address, PAN
number. Customer code in legacy will be alpha numeric. Customers are categorized into
various Customer groups like automotive industry customers, Gearbox customers etc
and the number is assigned externally based on the type of customer group. Currently
customer master dont capture contact details, payment terms, bank details, sales
group, shipping details etc.

Caritor

Confidential

Page 4

SAP-TO BE Process

2 Core to Be Process
An individual customer master record is created for every customer (apart from onetime customers).
Data in customer master records controls how the transaction data is processed and
posted for a customer. During sales and distribution processing, the system
automatically copies the data necessary for the relevant transaction from the customer
master record.
In SAP the customer master database contains information about the customers . It
consists of a large number of individual customer master records. Since, in Accounting,
the customer represents an account receivable, and the customer master record also
contains accounting information, such as the relevant control account (reconciliation
account) in the general bookkeeping system. Therefore, both Accounting and sales
departments maintain the customer master record.
Creation of Customer Master
Customer master creation will be centralized. The sales department creating sales order
will create customer master under appropriate customer account group. Sales
department creating customer master will fill the general data/the sales organisation
data and the accounts department will create the Company code data.
In SAP- SD Customers are those customers who are related to product sales/Job work,
postings to which will be made by the SD module of SAP. FI customers are those which
do not order and purchase through the SD module (e.g. an Inter-company service
charge). If the customer is of FI Customer and if there is no sales order then the finance
department will create customer master with General data and Company code data
and there is no need of filling sales organisation data
Data Areas in Customer Master
A customer master record is subdivided into three different data areas:
General Data
Contains the relevant customer's name and address as well as data such as Language,
Region, Names of important contact persons (purchase staff) of customer etc. General
data is valid at client level i.e. data is accessed by all the company codes.

Company code Data

A large amount of accounting information is stored at company code level. The
financial data for the customer master contains:

Caritor

Confidential

Page 5

SAP-TO BE Process
The payment methods
House Bank details
Correspondence
Payment Terms
Reconciliation Accounts
Sort Key

Sales Area Data

Sales and Distribution data is only of interest to the SD area like data on pricing or
shipping. This data only applies to one sales area and therefore is dependent on the
sales structure (Sales Organization, Distribution Channel and Division).
Contains sales data like sales district (Haryana etc), sales group (OEM etc), Account
assignment groups (this field is used for allocating revenues to revenue accounts),
sales office, ordering currency, shipping data like delivering plant etc, billing data details
like incoming terms, payment terms, tax information etc, Business partner functions:
Customers are defined as business partners. Each business partner is created at client
level but is directly related to a specific Sales Area. The sales organization, distribution
channel and division must be entered when creating a business partner.
Customer Account Group/Numbering

Every Customer master will be created under one Customer account group.
Customer Account group determines the number range, type of number
assignment (externally or internally), and whether a customer is one time
customer or not, which fields are ready for input or must be filled when creating
and changing master records (field status).

For NAW Fbd every customer master record is assigned a unique number by the
system based on the selected customer account group.
The following account groups will be defined in the system and the number ranges are
as follows.

Caritor

Confidential

Page 6

SAP-TO BE Process
OEM
Industrial Gears
Dealers
Job Work
Scrap Sales
Others

10000
13000
16000
19000
22000
25000

12999
15999
18999
21999
24999
27999

Reconciliation Ledger
The reconciliation account ensures the integration of a sub ledger account into the
general ledger. The G/L account itself is not designed for direct posting. In this way,
reconciliation between sub ledger and general ledger is always guaranteed.
The following reconciliation GLs will be created in the system
Sundry Debtors- Domestic
Sundry Debtors-Export
Sundry Debtors-Job work
Sundry Debtors-Inter Company

Special GL Indicators
The following special GL indicators will be created in system:
Tooling Advance
Advance against PO
Other Advances
Terms of Payment
The Payment terms will be specified in the customer master. The payment terms key and the
terms determined with it are proposed when entering a document to the customer account. The
proposed payment terms in a document can be overwritten at the time of data entry.

Payment Method
The Payment method will be specified in the customer master. The following payment methods
will be created in system
Cheque/Demand Draft
Fund Transfer
Cash Payment
Hundi
LC

Caritor

Confidential

Page 7

SAP-TO BE Process

House Bank
The house bank will be specified in the customer master.
The following house banks will be created in system:
UCO Bank-Faridabad
UCO Bank-Delhi
HDFC Bank
ICICI Bank

Tolerance Group- A tolerance group can be specified in customer master. These tolerances
are used for dealing with differences in payment or cash discount. Specify the tolerances under
one or more tolerance groups. Allocate a tolerance group to each customer via the master
record. Only one tolerance group can be assigned to a customer in the one company code.
Sort Key
The system uses a standard sort sequence for displaying line items. Among other things, it sorts
the items according to the content of the Allocation field. This field can be filled either manually
or automatically (by the system) when a document line item is entered.
For this purpose, the system requires rules that determine which information is to be taken from
the document header or from the document line item and placed in the field. The rules can be
stored in the master record of an account, which enables you to determine the standard sort
sequence on an account-specific basis

Caritor

Confidential

Page 8

SAP-TO BE Process

Process flow chart

Create Customer Groups

Create Number Ranges

Attach Number ranges

to Customer Groups

Create Reconciliation
Accounts in GL Master

Create the Customer

Master, here number
gets generated internally

Caritor

Confidential

Page 9

SAP-TO BE Process

Customer Master Data

A/cGroups

Customer Number
internally assigned

Master Record
Content

General Data

General Details
ofCustomer
available for
entire client

Caritor

Co Code Data

Details required and

usedfor Business
Transactions at
Company Code Level

Confidential

Sales Area Data

Details required and

usedfor Business
Transactions During
Sales Transactions
through SD Module

Page 10

SAP-TO BE Process

Further Notes

Changes to Existing Organization

The master data for different view being entered/updated by different persons, principle
of multiple controls is maintained.

Description of Improvements and Key Metrics

Notes on Further Improvements
The customer master captures all important details like contact details, sales group, tax
information, payment method, payment terms, bank details etc. The reconciliation
account ensures the online matching of sub ledger with the reconciliation ledger.
Through special GL indicators all advances can be tracked customer wise. Customer
Account Group can be used in all customer reports for specific analysis on any
particular customer account group. Single master record will be maintained across FI
and SD. This reduces data redundancy and repetition of work. Moreover, the data
pertaining to the Sales view and Finance view are entered/updated by different persons,
so this maintains what is known as 4 Eye principle or multiple layers of control over
sensitive data.
Functional Deficit and Method to Remove That
NA

Interface Requirement
NA

System Configuration Considerations

NA

File Conversion Considerations

NA

Any reports required related to current business process

Customer Master Search: -- Available

Caritor

Confidential

Page 11

SAP-TO BE Process
Any document/output would be printed for this business process
NA.

Authorization Considerations
Detailed Authorization matrix will be defined for all users in the common file for all modules.
The high level Authorization requirements are as below.
Business Roles

Number of Users

Business Manager
Operations Manager
Transaction Owners

End User Training Requirements

<E.g.:
Business User Segments

Number of Users

Type of Transaction

Business Manager

Display, Reports

Operations Manager

Change, Display, Reports

Transaction Owners

Create, Display, Reports

Geographical Location

Sign-off (Approval) for this document:

Name of Team members:

Organization / Bus. Unit

FI/CO Consultant- Vinod Atmakuri

Caritor Inc

Business Process Owners-C.M Duggar

New Allenberry Works

Key User-Balbir Khanna

New Allenberry Works

Key User-Vishal Sharma

New Allenberry Works

Caritor

Confidential

Signature

Page 12

SAP-TO BE Process

A. SAP Standard Reports

<E.g.:
SAP Standard Reports
Sl No:
01

Report Description
List of Customers

Selection Criteria
S_ALR_87012179

Output
Screen View/Output

02
03
04
05
06
07
08
09
10
11

Caritor

Confidential

Page 13

SAP-TO BE Process

B. Custom Developments
<E.g.:
Print Requirements
Sl No:

Report Description

Selection Criteria

Output

1.0
2.0

Development Requirements
Sl No:

Report Description

Selection Criteria

Output

1.0

Report Requirements
Sl No:

Report Description

Selection Criteria

Output

1.
2.
3.

Caritor

Confidential

Page 14

SAP-TO BE Process

Caritor

Confidential

Page 15