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Sr No Location Observations Nature of Recommenda Recommendation through Process Change Area Quick Action Plan Whether Solution Whether

business tion through Win any IT type any thing


impact SSC interferen is done on
ce the point -
needed? any
achievem
ent

1 JSG Tracking for EPCG is done totally in excel and out of SAP The Bill of Entry number is already mentioned in the IDT Quick To find redund field Yes SAP
system. Tracking the items which have been imported optimisation gate entry in ISS. ISS needs to talk to SAP in order to win in SAP where bill of
under EPCG is not possible currently from SAP. Hence pass on the BOE number. Currently there is no field in entry and EPCG
the IDT personnel need to manually find out the SAP for mentioning the BOE number. Couple of number can be
respective documents and corresponding EPCG license redundant SAP fields needs to be identified where Bill mentioned.
number manual. Reference of EPCG license number of Entry and EPCG number can flow from ISS gate
and Bill of Entry number at the time of GRN entry will entry.
solve lot of this problem. Currently there is no field for
the same, however there are certain redundant fields
in GRN entry. These can be used and a separate report
can be prepared for tracking the EPCG.

2 JSG The GRN needs to mention cross reference number of SAP IDT Quick To find redund field Yes SAP
EPCG license number and bill of entry number. The optimisation win in SAP where bill of
import documents that are carried with the entry and EPCG
transporter have the Bill of entry number as well as number can be
EPCG license number. mentioned.
5 JSG In the GRN entry, there is a field for entering quantity Lower TAT For all excisable items (the information whether any IDT Quick Process flow needs No SAP
in the 'excise quantity field' (called "PART 1" field). If item is excisable or not is available in PO) this field can win to be defined about
entry is not made in that field then that GRN doesn’t be made mandatory. putting this entry - to
appear in the auto CENVAT capture. make way bill field
mandatory in SAP
MIGO entry

6 JSG While preparing GRN, the Way Bill Number is not SAP Following points need to be taken care of: IDT Quick Process flow needs Yes SAP
entered in the MIGO entry in some cases (in the field optimisation win to be defined about
provided for the same). The way bill number is needed 1. Based on delivery address SAP needs to determine putting this entry - to
for accurate calculation of entry tax and utilization whether entry tax is applicable or not (conditions need make way bill field
certificate to be submitted to commercial tax to be stated - and ideally it can be driven by a code). mandatory in SAP
department. In the absence of this number, the IDT This will ensure completeness of transactions. MIGO entry
department needs to do the identification / tracking
manually. 2. Way bill field has to be mandatory wherever entry
tax applicability is YES in SAP as stated in above point.
This will help generating tax statement accurately.

3. Way bill field needs to be made mandatory wherever


entry tax applicability is YES as stated in earlier point.

7 JSG Capital goods / raw material bifurcation in entry tax SAP The information is available in SAP of the bifurcation. A IDT Quick Adding the material Yes SAP
details is done manually. Risk of manual error present. optimisation separate report is needed which will cover all the win type field in the
required details. existing report used
for entry tax purpose
11 JSG It was observed that the 'List of Values' (LOV) available Financial Payment code LOVs need to be standardized for better AP Quick To refine PO LOV for Yes SAP
in the PO creation doesn’t give accurate information information and needs to be made mandatory field in win payment terms and
about the exact payment terms, finance personnel PO creation. implement the
need to refer to PO terms mentioned texts for exact usage.
payment due date information. SAP based payment
flagging can't be carried out since accurate information
is not available.

14 JSG Currently there is no clear cut policy about LD charges. Financial Policy needs to be defined. SAP optimization also AP Quick To devise policy No SAP
The charges are calculated and charged as per needs to be made to calculate LD charges win about LD charges
instructions from commercial for individual vendor automatically.
invoices. Moreover due to lack of standard policy, the
LD charge calculation can't be automated.

16 JSG In case of Sale through depot, tracking Form F is kept in SAP Form F The change of location data is available for all the AR Quick SAP optimisation Yes SAP
excel. All the data related to the same is available in optimisation tracking / transfers made to depots. Wherever change of location win based on current
SAP. Optimum SAP utilization needs to be ensured. ticking can be takes place, a flag can be activated to track receipt of WCT TDS certificate -
carried out Form F. the same can be ticked off once the forms are F form tracking in the
through SSC. received so that form F data can be available easily. same manner as WCT
TDS certificate

17 JSG Form C tracking for domestic sales is also manual kept SAP Form C The inter state sales data is available for all the AR Quick SAP optimisation Yes SAP
in excel files. Considering the increased volumes, a optimisation tracking / transfers in SAP. Wherever inter state sale takes place, win based on current
manual intervention, poses a risk of omission or errors. ticking can be a flag can be activated to track receipt of Form C. the WCT TDS certificate -
SAP needs to be utilized to fullest to cover the C Form. carried out same can be ticked off once the forms are received so C form tracking in the
through SSC. that form C data can be available easily. same manner as WCT
TDS certificate

18 JSG For preparing Bill of exchange for LC discounting, the SAP The information for bill discounting screen needs to be AR Quick SAP optimisation for Yes SAP
details need to be manually fed into SAP whereas many optimisation picked up from the excise invoice which is already win picking up the data
of the details such as invoice number, customer name available in SAP.
etc are already appearing in SAP. This manual
intervention increases chances of errors.

19 JSG The accounting entry for cheque deposit into bank Financial A process of routing cheques through 'cheques in AR Quick Modification of Yes SAP
takes place only when the credit is received in bank. hand' account can be used to keep track with respect win process to include
Often, there would be a time gap in cheque receipt and to number of cheques / amount of money as well as cheques in hand
bank credit. Currently the track is kept manually in time lag between deposit and cheque clearing. process
excel.
21 JSG At times normal PR is prepared for capital item Control Discipline needs to be maintained in the process. Fixed Quick 1. Commercial Yes SAP - Fixed assets
procurement. Due to this, a normal PO is made for Ideally material usage can give good indication of Assets win department needs to
capital item procurement classification. Regular report review needs to be done intimate user
in order to determine any wrong classifications. departments of the
requirements of
creating a Capital PR
for all capital items

2. Report to be
developed - needs to
be done manually for
the time being later
on the same can be
incorporated in
workflow for tracking
CER documents.

22 JSG The CER number (Capital Expenditure Requirement) Control Mention of CER needs to be made mandatory in SAP Fixed Quick Commercial Yes SAP - Fixed assets
number is not mentioned in PR. It needs to be Assets win department needs to
mentioned for capturing audit trail. intimate user
departments of the
requirements of
creating a Capital PR
for all capital items

24 JSG The MOU / quantity discounts are calculated manually SAP MOU tracking needs to be done in SAP. The actual AR Not a Yes SAP
in excel. The total sale quantity information as well as optimisation quantities delivered by way of each excise invoice quick
corresponding MOU quantities are available in SAP. needs to be captured against the specific MOU. The win
sale invoices where the quantity exceeds MOU
quantity, should qualify for the discount and SAP
should do necessary calculation of discount. The
discount needs to be shown invoice wise in the form of
a report. After scrutiny of the same, the credit notes
can be generated automatically from SAP itself for the
discount calculations.

25 JSG The credit notes for discounts are manually entered SAP As stated above, the discount credit notes need to be AR Not a Yes SAP
into SAP based on the discount calculations done in optimisation driven automatically from SAP. quick
excel. win
28 JSG VAT / CST driven by selection of fields in sales order - SAP Taxation need to be code driven in SAP master - AR Not a Yes SAP
not code driven. optimisation defining tax codes needs to be responsibility of Indirect quick
Tax team - only codes need to be selected while win
making sales order
29 JSG Excise exemption is captured at customer level (at the SAP AR Not a Yes SAP
time of sales order entry) - for each customer separate optimisation quick
marking is done in SAP. Lot of manual efforts involved win
poses risk of errors.
30 JSG Sale against CT3, sale to deemed export situations have SAP AR Not a Yes SAP
not arisen so far - the readiness for these situation optimisation quick
needs to be examined in SAP tax codes win
31 JSG While making VA01 entry (port to customer entry for SAP SAP optimization needed AR Not a Yes SAP
export) batches need to be manually ticked in SAP. The optimisation quick
standard batch size for Vedanta is 1 tone where export win
takes place at time even upto 1500 tones. Thus the
person at a time needs to manually tick 1500 line items

32 JSG Due to SAP limitation at a time only 300 batches SAP SAP optimization needed AR Not a Yes SAP
appear for ticking Hence the same procedure has to be optimisation quick
repeated 5 number of times if export is for say 1500 win
tones
33 JSG The accounting entry for each batch in export is also SAP Possibility can be explored for single entry per invoice AR Not a Yes SAP
passed manually for each batch separately. Thus after optimisation so that SAP process time can be optimized. quick
every click one has to wait till the SAP entry booking is win
completed. Possibility can be explored for passing
consolidated entry for entire shipment (with necessary
consultation with auditors)

35 JSG Interest calculation on BG manually done Financial Bank charges Contract wise tracking can be done in SAP and SAP AR Not a Yes SAP
debit notes automation can be explored for automated BG interest quick
and calculation win
calculation
can be
moved into
SSC.

41 JSG Currently no flagging for payment due dates takes Financial The payment term code needs to be used accurately in AP Not a Yes SAP
place in SAP. AP team needs to track all payment due PO creation. The same code needs to be used and quick
dates manually. This poses risk of early payments. payment due date flagging needs to be done in SAP for win
Moreover there is always a risk of omission all each booking document.
together. This results in early payments before due
dates resulting in interest loss.

42 JSG Since payment flagging doesn’t come from system, Financial AP Not a Yes SAP
fund requirements are given manually by finding out quick
due dates mentioned on supplier invoice / GRN / PO. win

43 JSG The service tax credit (service tax set off) is not Control Work flow Ideally for claiming service tax credit / set off, a screen AP Not a Yes SAP
captured automatically. AP team needs to select the solution similar to 'auto CENVAT capture' needs to be given for quick
designated codes in SAP while doing the bill booking through SSC service tax credit set off as well to IDT team. win
which passes the entries in ST Clearing account. set up will
Thereafter the invoices / bills need to be given to IDT eliminate
team which results in duplicate handling of documents. unnecessary
movement of
the papers.

48 JSG In case of material as well as services payments, the Ease of Lanjigarh AP team has developed a separate TCODE AP Not a Yes SAP
NET amount is booked and paid. Thus in case any operation where the payment advice shows the deduction quick
deduction is made, only the NET amount is booked and through LD. the same can be used at Jharsuguda as win
paid. Thus only the net amount appears on the well for LD charges. Possibility needs to be explored
payment advice as well as in the party ledger. This whether the other short booking can be captured
creates lot of confusion in the vendor account through some code which can be reflected in payment
reconciliation. advice to show the difference.
49 JSG In case of quantity difference / rate difference the bill Ease of AP Not a Yes SAP
booking and payment is done as per GRN / PO for the operation quick
NET amount (as per GRN X PO) whereas the vendor bill win
as well as his statement of account states the bill
amount. Moreover the payment advice doesn’t state
the above difference. This creates lot of confusion in
vendor reconciliation.

50 JSG In case of service invoice booking, if the correct cost Control The access can be taken away once the work flow and AP Not a Yes SAP
centre bifurcation is not done, necessary access is document visibility comes in quick
available to finance department to change the 'Service win
Entry Sheet' in SAP. Service entry sheet is equivalent to
GRN for a service invoice. Thus ideally finance should
not have access to modify the service entry sheet.
However due to time constraints, currently this
manner is resorted to. This reflects lower internal
control.

53 JSG For preparing entry tax return, finding city of vendor is SAP To check whether delivery address of vendor can be IDT Not a Yes SAP
done manually (vlooking up). However if supplier optimisation captured any where in SAP. If not ISS can capture this quick
address as per vendor master differs from actual information and pass on to SAP. This will reduce win
delivery address - there is no way of finding out the manual intervention in finding place of delivery. These
place of receipt. codes need to give information about 'Inside Orissa',
'Outside Orissa' and 'Import'.

54 JSG The entry tax calculation and identification is currently SAP The entry tax applicability should be driven by a tax IDT Not a Yes SAP
done manually. optimisation code for Entry tax (both sale side and purchase side) to quick
drive the applicability of Entry tax - so that no win
transactions will be missed out
55 JSG Currently finance department decides and deducts the Control Ideally IDT department needs to decide applicability of IDT Not a Yes SAP
WCT - Ideally WCT applicability needs to be determined WCT TDS. It can be controlled at PO level through quick
by IDT to ensure segregation of duties. deduction code. win

56 JSG If any full & final settlement is being made against any SAP Necessary SAP changes need to be done. IDT Not a Yes SAP
contract then the full value doesn’t appear in the WCT optimisation quick
TDS certificate. win
57 JSG Name & address field length is very short in WCT TDS SAP Necessary SAP changes need to be done. IDT Not a Yes SAP
certificate - some times entire address doesn’t fit in optimisation quick
win
58 JSG In case of WCT TDS deduction, if any vendor has given SAP SAP options need to be explored whether any such IDT Not a Yes SAP
certificate for lower deduction, the same information is optimisation field is available to put the lower deduction certificate quick
not readily available in SAP. Currently it is kept number. win
manually. Moreover this lower deduction certificate
number needs to be mentioned on the WCT TDS
certificate.
59 JSG As in case of entry tax / C Form if the contract address SAP As in case of entry tax possibility needs to be explored IDT Not a Yes SAP
is different that vendor master address, IDT personnel optimisation whether SAP can capture any information. quick
manually need to change the address in WCT TDS win
certificates.
61 JSG In the Cenvat credit register if 1 GRN has more than 1 SAP To also Possibility to be explored for development of Z report IDT Not a Yes SAP
line items, then it is not shown in the report - IDT optimisation explore to capture information in this manner. quick
people have to manually expand the line items. Item possibility in win
wise reporting of CENVAT credit / set off is required as work flow
per Excise rules. environment
as to how the
reports
would be
generated
and be
helpful to IDT
as well.
63 JSG Currently no system driven control is available to Financial A report needs to be prepared showing total number IDT Not a Yes SAP
reconcile the GRNs for which credit is taken / rejected. of GRNs made in any specific period. The amount of quick
It needs to be done manually. credit taken against each GRN needs to appear in front win
of every GRN. The rows which are blank will throw the
GRNs for which credit is not taken. Moreover flagging
needs to be developed to show rejections and reasons
for rejection of credit.

64 JSG Currently ARE1 for sale to SEZ is not made out of SAP The current ARE 1 screen needs to be made available IDT Not a Yes SAP
system - it is made manually in excel optimisation to preparation of ARE for SEZ as well. quick
win
65 JSG Since VAL has huge amount of CENVAT credit, the SAP A report is needed from SAP for Excise refund. The IDT Not a Yes SAP
exports are done under Rebate where the goods are optimisation report needs to be based on the excise invoice number quick
cleared by paying duty through CENVAT credit and and corresponding ARE 1 number, shipping bill number win
claiming refund of that duty. The working for this & BL number. These 2 numbers need to be present in
excise refund is done totally manually in excel. the entries eligible for excise refund. Efforts may be
needed in SAP to create this report

66 JSG In case of DEPB, license wise tracking is done manually SAP DEPB utilization tracking report is needed from SAP - IDT Not a Yes SAP
in excel as corresponding import vs. export links are optimisation through bill of entry number and DEPB license number quick
not available in SAP. mentioned in GRN win
67 JSG The C forms for interstate purchases are issued only SAP Flagging needs to be developed in SAP for issue of C IDT Not a Yes SAP
when demanded by vendor - Ideally the process of optimisation forms against any bills. WCT TDC certificates are issued quick
issuing C form should be automated - also form c from SAP. The same format can be extended to C win
preparation should happen proactively - not after forms as well. So that once the flagging is done, the
vendor has asked for it. system can generate the certificates as well as keep a
track of bills against which C form has been issued.

68 JSG The track of C forms issued so far is kept manually in SAP IDT Not a Yes SAP
excel. It presents a huge risk of missing out of certain optimisation quick
bills and also risk of issuing C Forms twice. win

69 JSG Many a times the PO is placed on single vendor SAP Refer Recommendation step as stated in point number IDT Not a Yes SAP
whereas delivery takes place from other business optimisation 1 & 2. quick
places of the vendor - many a times even within Orissa. win
In such cases manual tracking is done to see
applicability of C form on purchase. for example SAIL
PO will be on Delhi address - material may come from
Rourkela and Bhilai - these bifurcations will involve
different taxation from VAT / CST as well as entry tax
point of view
70 JSG In case of exports, a refund is claimed towards service SAP Ideally which bills are eligible for refund needs to be IDT Not a Yes SAP
tax paid on expenses related to exports. Currently only optimisation first authenticated by IDT. If SAG misses out on any quick
few standard items such as rail freight, CHA charges service tax refund entry in SAP - there is no way of win
are being claimed under the same. The entries for cross checking of the missed out service tax. Also
service tax refund is passed by SAG in ST clearing possibility can be explored whether this can be driven
account from where the refund amount is picked up by by any codes and master.
IDT personnel.
71 JSG Like Service tax refund towards export, an exemption SAP IDT Not a Yes SAP
report needs to be submitted to service tax authorities optimisation quick
towards service tax exemption availed on charges win
towards export. Currently the same is applicable for
road transport and foreign commission for exports.
Since the service tax on freight calculation is not driven
by any code it poses great risk of errors and omissions.

74 JSG Currently there is no system driven entry system for SAP Ideally for these bills a screen similar to auto CENVAT IDT Not a Yes SAP
service tax input credit. Finance passes the entries into optimisation capture needs to be given for service tax credit set off quick
a control account and if the documents are found as well. win
accurate, then IDT personnel make individual entries
for each bill. Considering large volumes likely to arise in
future, manual system may lead to errors and
omissions.

75 JSG Currently the balance in ST clearing a/c is 21 crores - Financial 1. Auto Service tax credit screen (similar to CENVAT IDT Not a Yes SAP
entries as old as 2007 are in this account. The balance credit screen) needs to be provided for claiming service quick
represents service tax credit available but yet to be tax set off. Also report needs to be generated and win
claimed. reviewed monthly for the cases where the credit is not
available.

2. A reconciliation needs to be carried out of this


account with respect to old documents available.
78 JSG While devising any 'process changes' in IDT, enough Control IDT Not a No SAP
flexibility needs to be provided in system to take care quick
of volatile nature of taxation in India. Necessary master win
controls need to be given to selected IDT personnel so
that any legal changes can be effected in SAP without
any hassle. Moreover India is going to move to GST
from 2011. Hence enough flexibility needs to be
provided in system to cater to those legal changes as
well.

80 JSG No system driven control over bifurcation of SAP Fixed asset Following measures can be taken: Fixed Not a Yes SAP - Fixed assets
procurement between revenue vs. capital optimisation ID Assets quick
procurement. As per current process, the CER (Capital generation, 1. Since all NFA more than Rs 100000 are routed win
Expenditure Report) is handed over to finance once fixed asset through finance, one field can be added in NFA for
approved. Finance generates the temp asset ID and the bill booking, finance to determine capital vs. revenue. (however for
CER is given back to user department to raise the PR in document material less than Rs 1 Lakh, it needs to be seen how
SAP. However finance doesn't have any visibility and tracking etc this control will work).
control over activities in SAP after this step. Since the can be done
current control is manual, there is always a risk of through SSC 2. Since mention of temp asset ID is mandatory in SAP,
regular capital purchases getting booked as revenue. set up using a regular report can be generated showing asset IDs
work flow against which no capital PR is raised.
tool.
81 JSG Structure for fixed assets codes not yet full proof. Since SAP Following measures can be taken: Fixed Not a Yes SAP - Fixed assets
one real asset ID is given for one CWIP / temp asset ID, optimisation Assets quick
a single asset ID may be given to multiple assets (say 50 1. SAP auto generated asset ID can be based on UOM win
ACs, 100 chairs etc if multiple assets are arriving used in PO. Say for example for 10 AC in a PO, SAP can
through a single vendor invoice). From a futuristic generate 10 real asset IDs so that one asset will have
point of view (with special emphasis on physical one ID. For other UOM such as Sq ft, length etc one
verification) a code structure needs to be devised. single asset ID can be generated. However care needs
to be taken in case assets would be built inside the
plant using bought out material (say POTS - then
accurate UOM needs to be used in PO.

2. BALCO asset ID system needs to be synchronized


with VAL asset ID system.

82 JSG No system driven control over classification of fixed SAP PR should capture the exact usage of asset. Usage Fixed Not a Yes SAP - Fixed assets
assets. Due to manual decisions, there is always a case optimisation should be a mandatory field in PR creation (other wise Assets quick
of lack of audit trail for classification. From an audit user departments will never fill in that field). One more win
point of view as well as from taxation point of view, an control can be given in NFA itself to select the asset
audit trail in the form of exact usage of asset needs to classification, so that finance can retain control over
be captured. classification.

83 JSG Tagging of fixed assets for physical verification is not Control Fixed Not a Yes SAP - Fixed assets
done in entirety. Some more assets need to be tagged Assets quick
and numbered from physical verification point of view. win

84 JSG The form 16A are currently done manually in word SAP Since the tax deduction and payment takes place in Direct Not a Yes SAP
format. optimisation SAP, ideally these should be printed out of SAP only. tax quick
win
85 JSG Lanjigarh uses a separate software for TDS certificates SAP Ideally both the locations should be on same platform Direct Not a No SAP
printing. optimisation and should make full use of SAP for the same. tax quick
win
87 JSG The statement of cheques issued on a day (this Ease of Treasu Not a Yes SAP
statement is used for calculating daily float as well as operation ry quick
stated above) is prepared manually in excel. Due to win
manual preparation of the above two statements,
there is high risk of errors of omission.

91 JSG Investment and redemption letters are prepared Ease of Treasu Not a Yes SAP
manually in word currently. operation ry quick
win
93 JSG Currently the IUT reconciliations are done totally SAP Automation GL Not a Yes SAP
manually in excel. Due to large volumes there is always optimisation possibilities quick
a possibility of errors of omission. through SAP win
using
business area
in the IUT
entries.
96 LAN For generating payment advice Lanjigarh uses a Control Same codes should be used at both the locations for AP Quick To give access of this Yes SAP
different code ZPADVICE1 whereas Jharsugda doesn’t generating the payment advice. win code to JSG people as
use this code.This code shows the LD deduction as well well so that they can
as any other deduction. also use the same
code
105 LAN For preparing entry tax retrurn, finding city of vendor is SAP To check whether delivery address of vendor is IDT Quick The report used for Yes SAP
done manually (vlooking up). However if supplier optimisation captured any where in SAP. If not the gate entry win entry tax need to be
address as per vendor master differs from actual software can capture this information and pass on to refined to include
dellivery address - there is no way of finding out the SAP. This will reduce manual intervention in finding vendor city
place of receipt. place of delivery. These codes need to give information
about 'Inside Orissa', 'Outside Orissa' and 'Import'.

113 LAN The screen for auto capture of CENVAT is not used in SAP Since now SAP instance is same at both Jharsuguda AP Not a Yes SAP
Lanjigarh. optimisation and Langigarh, this process can be utilised for Lanjigarh quick
as well. win
116 LAN The process of verifying VAT credit is also diff in SAP Tax code Ideally tax credit / set off availability should be driven AP Not a Yes SAP
Lanjigarh and Jharsuguda. optimisation driven by tax codes master which should in turn be controlled quick
structure will by Indirect Taxation department. win
ensure
reduced
personal
dependencie
s in SSC
environment.

118 LAN One IBD is done for each rake and the same IBD (In SAP The IBD number needs to appear in the MIRO entry so AP Not a Yes SAP
Bound Number) contains approximately 150 GRN. optimisation that filteration can be done based on IBD. This will quick
However in the MIRO entry, the IBD number is not reduce TAT considerably. win
displayed. As a result, GRN selection needs to be done
manually.
119 LAN For coal and bauxite quality test reports are submitted Control Tracking of SAP should be fully utlised to track the quality whereby AP Not a Yes SAP
manually. Finance person needs to track them test reports the field provided for the same needs to be utilised quick
manually in excel. There is a field in SAP where quality should also 100% of the times for each IBD. win
can be stated. The same should be used 100 % so that be built into
manual tracking can be reduced. workflow so
that manually
checking time
can be
reduced
while doing
the MIRO
booking.

120 LAN Currently the auto GRN is used only for raw material SAP The current process of auto GRN needs to be extended AP Not a Yes SAP
(coal, bauxite). The same can be extended to HFO, LDO optimisation to other bulk material as well so that manual quick
as well since these material also come in bulk intervention can be reduced as much as possible. win
quanitites and in measurable form. Furthermore, auto CENVAT capture can also be
extended to auto GRN material.
122 LAN For bauxite coming through vessel (either import or SAP SAP optimisation needs to be explored whether the AP Not a Yes SAP
export), at a times approx 2000 GRN are made for one optimisation GRN constraint can be extended. quick
vessel. Vendor raises 1 invoice for 1 vessel. However win
while booking the vendor invoice in MIRO screen only
300 GRN are displayed at a time. Hence bill booking
process has to be repeated atleast 4 times to book 1
vessel invoice.

124 LAN As noticed in Jharsuguda as well, the service tax liability SAP Ideally all the tax applicabilities should be driven by tax IDT Not a Yes SAP
entries are made by respective AP personnel while optimisation codes in SAP. quick
booking vendor bills. Hence there is no visibility as to win
any bill are missed out or liability / set off is booked
twice by oversight.
125 LAN ST liability report which is used for determining service SAP The SAP report needs to be modified in order to IDT Not a Yes SAP
tax liability doesn't contain bill value, assessable value optimisation include all the details. quick
and abatement value. Moreover other details such as win
bill date, category of services also don't appear in the
report. As a result, the report needs to be edited
manually for all the details.

126 LAN As in case of Jharsuguda, tracking of C forms (both on SAP SAP optimisation needed for form C tracking. IDT Not a Yes SAP
purchase and sale) is kept in excel. This poses risk of optimisation quick
dulicate issue of C form. win
128 LAN For VAT credit, commercial department confirms with SAP Ideally all the tax applicabilities should be driven by tax IDT Not a Yes SAP
IDT before making PO whether VAT credit is available optimisation codes in SAP where the master creation should rest quick
or not. Based on IDT confirmation the tax code is with Indirect Tax department. Moreover a guideline win
selected in PO making. Once the vendor bills are needs to be present with commercial as well so that
received by finance, each and every bill is brought to instances of cross confirmation at PO stage can be
IDT and confirmation is taken from IDT whether VAT reduced.
credit is available or not. This process is different from
the process followed in in Jharsuguda.

130 LAN For way bill on outside Orissa purchases, blank road SAP Since blank road permits are issued from SAP, a further IDT Not a Yes SAP
permits are issued by commercial department from optimisation track needs to be establish in SAP itself to track its quick
SAP. However no further track is kept of these blank utilisation through way bill. win
road permits. This poses a great risk of misuse of road
permits / duplicate usage by vendors for material
movement.
131 LAN As observed in Jharsuguda, Capital goods / raw SAP Ideally all the information is available in SAP - a Z report IDT Not a Yes SAP
material bifurcation in entry tax details is done optimisation is needed which will cover all the required details. quick
manually. Risk of manual error present. win
132 LAN The business area (project / non project material) is SAP Since the business area information is available at GRN IDT Not a Yes SAP
also done manually currently. optimisation level itself, the same should be pulled in way bill report quick
as well. win
137 LAN Various different styles of asset codification were Control Same asset codification needs to be obtained across Fixed Not a Yes SAP - Fixed assets
observed in lanjigarh. Differences were noticed in units as well as across legal entities. Assets quick
coding for computers, furniture etc. For instance in win
guest house itself every asset has atleast 2 / 3 types of
tags and different asset numbers.

138 LAN In case of fixed assets bill booking, CWIP account is Control Jharsuguda process of accounting is better in terms of Fixed Not a Yes SAP - Fixed assets
debited at the time of bill booking entry (MIRO entry) visibility of exact date of put to use. Assets quick
and asset account is debited only when asset is put to win
use. However in Lanjigarh, asset account is used at the
time of bill booking itself.
140 JSG Instances were notices where one MIRO entry is SAP SAP optimisation to be checked. The invoice wise IDT Not a Yes SAP
passed for more than 2 invoices. As a result IDT team optimisation bifurcation is avaialble in SAP. The necessay bifurcation quick
needs to manually bifurcate the records based on the can be given in the reports used by IDT. win
invoices. The manual efforts pose a risk of omission or
error.
141 JSG In case of services tax set off, many a times lacune are SAP Service Tax registratin number, Service tax category IDT Not a Yes SAP
found in vedor invoices with respect to registration optimisation and Service tax registration certificate to be uploaded quick
number, service category etc. As a result the service into SAP at the time of vendor registration itself. SAP win
tax benefit cant be claimed for such documents. optimisation to be checked.
142 JSG Currently all the frieght is routed through freight SAP SAP optimisation to be checked. IDT Not a Yes SAP
clearing account. Ideally wherever freight is prepaid, it optimisation quick
need not be routed throught clearing account. Only win
postpaid frieght should be routed throuh clearing
account. This will help in tracking the service tax
liability on inbound freight.
144 JSG Invoice printing needs to be carried out for material SAP SAP optimisation to be checked. IDT Not a Yes SAP
movement from plant 1 to plant 2 optimisation quick
win
145 LAN Trading partner automation in SAP for IUT? SAP SAP optimisation to be checked. GL Not a Yes SAP
optimisation quick
win