XYZ BUSINESS PROCESS PROCEDURE

Title IT Cost
Organization / Area Controlling
File name : ITCOST_MANUAL Solution / Release : R/3 3.1H
Responsibility : Controlling Status : <Status >

Sub: Capturing of data on Information technology related expenses.

Objective :

To Collect IT related expenses separately using Internal Orders for further analysis.

Data Capture - Structure

GL Account
Normally all expenses like salary, rent, travel, etc., though relating to IT are debited to specific GL
accounts
Other IT related expenses which cannot be debited to a specific GL should go to 461620 – Infotech
expenses..

Cost Centre
IT cost centre of respective location should be selected while doing the data entry

Internal Orders

IT related expenses for the whole XYZ group are captured in 3 main-groups viz:

1. ERP
2. Non-ERP and
3. Communication.

Each of the above group is further divided into

1.Software
2.Hardware
3. Others
under each Business area of and XYZ.

Thus there are 9 Orders in each business area as explained above

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24/12/17 CO core team Page 1 of 3
XYZ BUSINESS PROCESS PROCEDURE

Title IT Cost
Organization / Area Controlling
File name : ITCOST_MANUAL Solution / Release : R/3 3.1H
Responsibility : Controlling Status : <Status >

Procedure:

At the time of data entry for IT related expenses, in addition to selecting the GL Account , user have
to select the most appropriate Order and cost center .

Cost Centre

Respective cost centres pertaining to the business area can be selected by entering * info* in the text
of pull down menu.

Select the cost certre of respective location and do the data entry.

Orders

Respective orders can be selected from the pull down menu using the order type ‘IT’ and the
corresponding business area..

Given below is a general guideline for selecting appropriate Orders:

1. ERP_SW - ERP-Software costs -AMC for SAP software.

2. ERP_HW –ERP Hardware costs- AMC/Maintenance charges for SAP & PAMS servers and its UPS, cost
of backup tapes, spares etc.

3. ERP_OTH-ERP Others-Depreciation, Interest, Insurance, Personnel, Rent, Security, DG maintenance,

Electricity chgs, etc.

4. NERP_SW-Non ERP-Software costs-Maintenance charges of MS office, Cost of Virus scanners etc.

5. NERP_HW-Non ERP-Hardware costs- AMC/Maintenance charges for LAN, PCs, Printers, UPS for
same, etc.

6. NERP_OTH-Non ERP-Others- Depreciation, Interest, Insurance, Personnel cost, etc. .

7. COM_SW-Communication Software- Maintenance charges of messaging systems etc.

8. COM_HW-Communication Hardware- AMC/Maintenance charges for WAN, Dish Antenna, etc.

9. COM_OTH-Communication Others- V Sat, lease line, internet and web charges.

10. Expenses incurred for Kochi Data Centre should be treated as ERP expenditure

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24/12/17 CO core team Page 2 of 3
XYZ BUSINESS PROCESS PROCEDURE

Title IT Cost
Organization / Area Controlling
File name : ITCOST_MANUAL Solution / Release : R/3 3.1H
Responsibility : Controlling Status : <Status >

Last Changed on Last Changed by Version 3.1 Page

24/12/17 CO core team Page 3 of 3