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Approved by: XXXXXXX
Global SAP Implementation Program
Conceptual Design Document – Finance & Controlling
Document Change History
42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 1 of 147
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX
Document Approval: We have reviewed the contents of the Finance & Controlling Global Conceptual Design Document and agree that it represents the conceptual design of the financial processes that will be implemented in Phase One of the Global SAP Implementation Program. This is with the understanding that the Program team has maintained, in good faith, a high level of integrity across all conceptual design documents (Supply Chain & Finance/Controlling). As a general rule, the Program team will proceed with the subsequent Program tasks and resolve design issues based on the design that is described in more detail across all conceptual design documents. The Finance & Controlling Program team will be responsible for working with the Business Representatives and Supply Chain Program team to resolve all open items/issues identified and recorded in this Finance & Controlling design document. Signed:
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Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX
Table of Contents
1. INTRODUCTION..................................................................................................................................6 1.1. AAA’S FINANCIAL PROCESSES IN SAP ..................................................................................................6 2. FINANCE ENTERPRISE ORGANIZATIONAL STRUCTURES IN SAP....................................9 2.1. COMPANY CODE STRUCTURE..................................................................................................................9 2.2. ENTERPRISE CONSOLIDATION (EC–CS) ORGANIZATION STRUCTURE ................................................................................................................................................................10 2.3. CHART OF ACCOUNTS STRUCTURE ................................................................................................................................................................11 2.4. ASSET ACCOUNTING STRUCTURE ................................................................................................................................................................12 2.5. CONTROLLING ORGANIZATIONAL STRUCTURE ................................................................................................................................................................13 2.6. COST CENTER STRUCTURE....................................................................................................................14 3. FINANCE & CONTROLLING PROCESS DESIGN CONCEPTS ....................................................................................................................................................................18 3.1. FINANCIAL ACCOUNTING GLOBAL SETTINGS...........................................................................................19 3.1.1. FI Document Type/ Number Range.........................................................................................19 3.1.2. Currency..................................................................................................................................22 3.1.3. Exchange Rates.......................................................................................................................23 3.1.4. Fiscal Year Variant.................................................................................................................26 3.1.5. Opening and Closing Posting Periods....................................................................................26 3.2. GENERAL LEDGER...............................................................................................................................28 3.2.1. GL Master Data.......................................................................................................................29 3.2.2. Operating Chart of Accounts...................................................................................................32 3.2.3. Country-Specific Chart of Accounts........................................................................................33 3.2.4. Special Purpose Ledger for CCSZ..........................................................................................34 3.2.5. GL Master Data Maintenance.................................................................................................34 3.2.6. Multiple Reporting Views for AAA..........................................................................................40 3.3. ACCOUNTS RECEIVABLES......................................................................................................................41 3.3.1. Customer Master Maintenance...............................................................................................41 3.3.2. Document Type........................................................................................................................42 3.3.3. Trade Customer Master Data Maintenance............................................................................42 3.3.4. Non-Trade/ Sundry Customer Master Data Maintenance......................................................42 3.3.5. Payment Term..........................................................................................................................42 3.3.6. Accounts Receivable Transaction Posting ...........................................................................................................................................................44 3.3.7. Accounts Receivable Periodic Processing..............................................................................49 3.4. ACCOUNTS PAYABLE ..........................................................................................................................50 3.4.1. Vendor Master Maintenance...................................................................................................51
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...............63 3.....1...............................8....... Cost Center Structure............................................84 3................ Depreciation Area:...............................4.............................................................9... Activity type prices planning........4........2.............................................................94 3............................................. PROFITABILITY ANALYSIS..... Trade Vendor Master Data Maintenance.........................................................................................6............................2....7.............................3...9..................5........... Period End-Closing.. Product Cost Estimates for New Products.......3......................................89 3...... Production Order Processing for Finished Goods...9................................63 3.......8..4...6...........................................................90 3.......... Order Master Data Creation.................................. Authorisation.............................................................91 3.....................................7..............................................................78 3..............9.........98 3.........5....6...... Standard Price Update from Standard Cost Estimate – Mark & Release......................4..................................10.1.... Overhead Allocation....................... Non-Trade/ Sundry Vendor Master Data Maintenance...83 3...........................................................7...................................................3............................................9.................................................................. Asset Depreciation Methods:...........................................................................4...............................................7.............................................................................. INTERNAL ORDER.........6....... Accounts Payable Transaction Posting ............ Logistics Master Data..... Percentage Overhead Rates Maintenance.6.........10..........................2........ Summary of Product Cost Approaches ................ Payment Terms....................7..52 For Credit memo in MM the document type will be RE and a corresponding KG document will be created in FI...................................... Asset Master Maintenance:......... Accounts Payable Period Processing............................... Document Type..................................................................9......................................................... Statistical Key Figures................ PRODUCT COSTING ........................... Asset Number Range:..........102 42091003...6..........................................93 3................................................................................6.....52 3................................... Asset Class:.....................9.................................... Quantity Overhead Rates Maintenance......6........12..........................................................................84 3...... Month End Process............................9..........6...4.....1 for document type details...84 3............................................ Asset Transactions.1................................................................................................................4.......52 3..........................................9.........62 3................................................ Order Actual Transaction Posting ............................................................................................. See Section 3..... Re-posting of cost....80 3..............5....94 3..............................................................4............................................7..........4....... Production Order Processing for Semi-finished Goods............9...8............3....... Standard Cost Estimates for Single Use Bbb (SUC).....................................................4........................................70 3......................................7..................................5..........................................8.......................................1..................65 3...........................................80 3.................................61 3...........................................................5................................................... INTERCOMPANY AP / AR (FINANCE ONLY)....Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.......................................................................6..............................................................................................3...............81 3....................................................77 3..............1.......................................2...11..................63 3.................................9....5.............................61 3.52 3..........9..................93 3.......9...............72 3........................................................ Blocked Invoices..................................8..... Chart of Depreciation:.........4.................................52 3.........................................................7.......................................81 3...82 3..................66 3................ COST CENTER ACCOUNTING...........................................92 3.............7......64 3...............................................................................................1....................doc Printed on: 10/16/2010 9:02 a10/p10Page 4 of 147 ..8......................... Cost Estimate Calculation..........................................65 3.79 3......................9...................... ASSET ACCOUNTING.........................90 3...................2..6.................................... CO Master Data.....................................................................................................53 3...........................80 3..
.....12..................3..................................................10...............128 3................................103 3...............................................10.............................13........................ Lockbox in Cash Management.............................................. LIST OF CUSTOMISATIONS.......................................................................................... COPA Structure ..................................... BUDGETING/PLANNING.......................13...............3......11............................ Memo Records................................. Liquidity Forecast................13..............................2...120 3.............145 42091003..........................................2............11........12........ CASH MANAGEMENT............... REPORTING ...........................................111 3...... Sale Allowances/ Provisions Handling..........1........................................7..........................10.........................12...........................................105 3........ ANNEX 1: COST CENTER HIERARCHICAL STRUCTURE.........................109 3.......................................................... Consolidation Chart of Accounts and Financial Statement Items....... Actual Value Flow into COPA........... Consolidation Process................................2...109 3...............128 3.....................123 3............................................ Data Collection Process.................................107 3...13.....................................................4..............................................114 3.....................................4..5...........................102 3..........................................................2......................................141 8.......................................... LIST OF TO-BE REPORTS...........................5.............................................................................................12.............6...... Common information and differences between Cash Position and Liquidity Forecast.......127 3..6.......... Consolidation Groups............................................ ‘Partner Functions’ of Customer Master................................... ANNEXES.......................................................... Consolidation Units......................................................... Plan Version.......126 3...............................................................................3........119 3..............13............................................................................................................117 3........................................................ CONSOLIDATION PROCEDURES.. Special Treatments on ‘Responsible Branch’..........1...... COPA Method Deployment.......................................... Design Highlights.......... COPA Structure – Value Fields.............................................................11..........................8... Planning Layout........................................109 3.................................................. Cash Concentration............................ OUTSTANDING ITEMS/ DECISIONS.8..............139 8..........................115 3...................................136 6.........1......124 3.......................6.....141 8...............13..........1...................................................................................130 4.............134 4......................................3.................122 3.......2.........119 3........................................................................................................................................... SAP R/3 modules deployed for Annual Budgeting.............Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.....134 ADDITIONAL REPORTS REQUESTED HAVE BEEN ADDED TO THE PROJECT CUSTOMIZATION INVENTORY:...............12....10..............................12..................... FINANCE REQUIREMENTS.....................12......................129 3...........124 3.....doc Printed on: 10/16/2010 9:02 a10/p10Page 5 of 147 ................5............Characteristics.............126 3.....10.......................................4........................................10....................................................114 3........ Integration with Special GL transactions (FI-GL)....122 3...........................10.......13.........................................................................1......1..........................................7......................10.......108 3.12................................................................................ Cash Position... LIST OF INTERFACES....138 7.........................12............................................................................... Electronic Bank Reconciliation................................................... Organisation Unit in COPA....................................................135 5............................................11..........................................................................
As depicted in Figure 1. 42091003. Accounts Receivable.. AAA’s Financial Processes in SAP All of AAA’s financial processes are in multiple Financial modules of SAP that are highly integrated with each other and with the Logistics modules. Product Costing. Accounts Payable. Budgeting and Planning.1 the Financial modules being implemented are: • Financial Accounting: o General Ledger. This document does not describe all SAP configuration tables to support the design. o Accounts Receivable o Accounts Payable o Asset Accounting • Controlling: o Overhead Cost Controlling o Product Costing o Profitability Analysis • Treasury – Cash Management • Enterprise – Consolidation Note: Business Warehouse will have a separate Design Document. Cash Management. and Consolidating Financial Statements business processes.doc Printed on: 10/16/2010 9:02 a10/p10Page 6 of 147 . Planned time for gathering all BW requirements is 31 Dec. Introduction This document describes the major design concepts for the Finance and Controlling Organizational Structure and all financial transactions/configuration related to the General Ledger. 1. This level of detail will be done during the Implementation stage of Global SAP Implementation Project. Asset Accounting. 2003. and Profitability Analysis Reporting.1.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 1. The design concepts are also described for internal managerial processes such as Cost Reporting & Allocations.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 7 of 147 .
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Concord SAP FI/CO Modules CO PA Profitability Analysis Profitability Analysis Profitability segment EC CS CO OM Overhead Cost Controlling Overhead Cost Controlling Cost centers Internal orders Consolidation Sales orders Projects CO PC Product Cost Product Cost Controlling Controlling Activity types Processes Warehouse production Material Material valuation valuation CO CEL Cost Element Accounting Cost Element Accounting FI Financial Financial Accounting Accounting Asset Expense Revenues AA Human HR Integration with Resources Logistics Modules: Asset Accounting TR PP Treasury Cash Management MM Materials Materials Management Management Production Production SD S&D S&D Figure 1.1 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 8 of 147 .
Finance Enterprise Organizational Structures in SAP All financial enterprises must identify organizational structures in SAP that will be the foundation for how all financial transactions will be reported. Note: Not every AAA company code represents a legal entity. AAA has identified sixteen Company Codes. The proposed German acquisition will be handled as part of a change request.1. These organizational structures reflect the legal and managerial organizations that support external and internal financial reporting. Company Code Structure Company Codes generally represent legal entities within the Corporation that provide external financial statements such as Balance Sheet and Operating Income Statement reports. Each Company Code must have a complete set of accounting records for reporting purposes. AAA Latin America and AAA Keystone Graphics are divisions that belong to the legal entity AAA Keystone Sales Corp.1. 42091003. A change request has been submitted to make Latin America an active company code. See Figure 2. They are the: 1) Company Code Structure 2) Consolidated Company Structure 3) Chart of Accounts Structure 4) Asset Accounting Structure 5) Controlling Structure 6) Cost Center Structure 2.doc Printed on: 10/16/2010 9:02 a10/p10Page 9 of 147 . This change will be addressed in separate documentation and is outside the scope of this design document.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 2. ten of which are active and six dormant. The organizational structures described in this section are global and will affect all Reporting Units in AAA. AAA Henggang represents the factory that belongs to AAA Shenzhen.
This Consolidation Unit will house the historical balance sheet Elim data and avoid the need to manually re-enter these data every month. AAA Bbb Aust.2. Consideration is being given to configure a dummy Consolidation Unit for the Legacy ‘Elim company’. The dummy Consolidation Unit will be dormant once AAA goes live on SAP. 42091003. The Consolidation structure is arranged to allow consolidated financial reports for Global AAA Bbb Corp.R. and subsidiary group reports for CC UK. (US) Concord Camera Hungary (Hungary) Concord Keystone Graphics (US) Concord Latin America (Latin America) SAP Code3200 Goldline (Europe) Limited (UK and Northern Ireland) SAP Code3500 Peter Brauser Bauser (Germany) SAP Code 5200 SAP Code 5300 Concord Concord Henggang Shenzhen Electronics Limited Factory (PRC) (PRC) Legend: Grey highlighted box represents a dormant company Figure 2. all European Reporting Units.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Finance Organizational Structure SAP Company Codes SAP Code 1000 Concord Camera Corp. Investigations are in progress to determine the best way to generate consolidated financial reports for all of Europe. (US) SAP Code 4100 SAP Code 4200 SAP Code 3100 SAP Code 3300 SAP Code 3400 SAP Code 51 00 SAP Code 4500 SAP Code 3500 SAP Code 4 400 SAP Code 4300 Concord Concord Concord Concord Concord Keystone Sales Camera(Europe) Camera GmbH Camera France Camera Canada Corp. Enterprise Consolidation (EC–CS) Organization Structure The Enterprise Consolidation structure facilitates the procedures that create Consolidated Financial Statement reports for all AAA Reporting Units. Future elimination postings will occur in the active Consolidation Units using the consolidation procedures. CC Germany and CC Hong Kong.A.1 2. Limited S. See Figure 2.. (Regional) Pty.doc Printed on: 10/16/2010 9:02 a10/p10Page 10 of 147 . AAA Australia will be shown as wholly owned by CCHK and its name will be changed to reflect the correct legal name.L (US) (Canada) (UK and Northern Ireland) (Germany) (France) SAP Code 4300 6100 Concord Latin Concord America Australia (Australia) Concord Camera HK Limited (HK) StarprintCorp.2. Ltd.
L (France) Consolidate Subgroup (CCHK) (HK) Starprint Corp. Postings to the Operating COA will automatically populate corresponding accounts in the Group COA and Country-Specific COAs. France and China have specific statutory requirements that mandate that Financial Statements must include specific accounts.3.2 AAA Keystone Graphics and AAA Latin America will be moved to under AAA Keystone Sales. A US consolidation subgroup will be formed over the three US consolidation units. in contrast to AAA’s fiscal year of July to June. they have a stipulation that the end of the fiscal year must be on June 30th.doc Printed on: 10/16/2010 9:02 a10/p10Page 11 of 147 . 2. If the fiscal year ends before June 30th. CC France and CC Germany will continue the current process of updating transactions between AAA’s year-end and June 30th. Each account in the Operating COA will be mapped to one or many accounts in the Group Chart of Accounts to capture financial postings for AAA’s Consolidated Financial Statements. (US) Concord Camera Canada ( Canada ) Consolidate Subgroup CCEurope (Europe) Consolidate Subgroup (CCGMBH) (Germany) Concord Camera France S. (US) Concord Camera Hungary (Hungary) Concord Keystone Graphics (US) Concord Latin America (Latin America) Concord Australia (Australia) [100%] SAP Code 3100 [100%] SAP Code 3300 [100%] SAP Code 5100 Concord Camera (Europe) Limited (UK and Nothern Ireland) Concord Camera (CCGMBH) Concord Camera HK Limited (Germany) [100%] SAP Code 3200 [100%] SAP Code 3600 [100%] SAP Code 5200 [100%] SAP Code 5300 Goldline (Europe) Limited (UK and Nothern Ireland) Peter Bauser (Germany) Concord Henggang Electronics Factory (PRC) Concord Shenzhen Limited (PRC) Legend: Grey highlighted box represents a dormant company These consolidation units will only store historical data. in contrast to AAA’s fiscal year end on the last Saturday of June or first Saturday in July. China’s statutory law further stipulates that Financial Statements must fall within the calendar year of January to December. validation rules will be set up to ensure that the postings fall into the right date range. To avoid entries in this interim period. (US) [100%] [100%] SAP Code 4200 [100%] SAP Code CG3000 [100%] SAP Code CG3300 [100%] SAP Code 3400 [100%] SAP Code CG5100 [100%] SAP Code 4500 [100%] SAP Code 3500 [100%] SAP Code 4400 [100%] SAP Code 4300 [100%] SAP Code 6300 Consolidation Unit/ Company (Country) Ownership Percentage SAP Code 4100 Concord Keystone Sales Corp. All Reporting Units will post all financial transactions to a Global Operating Chart of Accounts (COA). Chart of Accounts Structure To meet AAA’s accounting requirements for statutory (US GAAP) and local GAAP requirements. three different levels of Chart of Accounts will be configured in SAP. Creating calendar year Financial Statement reports will be supported by special configuration in the Special Purpose Ledger. will have no further activity.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX SAP Consolidate Units & Consolidation Groups [100%] Consolidation Group (Country) [Ownership Percentage] SAP Code 1000 Concord Camera Corp. This COA will be created according to the US GAAP specifications.R. Although the French and German governments allow fiscal year reporting from July to June.R. Figure 2. to the earlier of the fiscal year end or June 30th. In SAP. then every posting in 42091003. The accounts in the Operating COA will also be mapped in a one to one relationship with accounts in two Country-Specific Chart of Accounts for France and China.
b) Tax Depreciation and c) Group Depreciation.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX June will not post beyond AAA’s fiscal year end. Each country will have a defined Chart of Depreciation with three Depreciation Areas – a) Book Depreciation. Asset Accounting integrates with the Operating Chart of Accounts and other SAP modules such as Production Planning. and provides detailed fixed asset transaction information. it is also a subsidiary ledger to the General Ledger.Data auto -post from Opera . then the postings in July will be backdated to June 30th. A certain range of accounts in the Global Operating Chart of Accounts will be reserved to capture postings for statutory reports to meet local and US GAAP requirements. Figure 2.Consolidation perform in this thi separate environm ent Asset Accounting Structure Asset Accounting is used for managing and supervising all existing fixed assets. sub-section Account Group. Like A/R and A/P. For more details see Section 3. Group Chart of Accounts B/S 42091003. and global transfer tax pricing requirements.2. Plant Maintenance and Investment Management.4.doc Printed on: 10/16/2010 9:02 a10/p10Page 12 of 147 . More details on the Account structures are in Section 3. [SAP Enterprise Consolidation (EC -CS) m odule] .3 Note: Peter Bauser is an additional company code that is to be included for the above Chart of Accounts 2. AAA Chart of Account Relationships: Figure 2.1 on General Ledger. Materials Management.5. If the fiscal year ends in early July.3 below illustrates the relationships among the three types of Chart of Accounts.
China and Europe.doc Printed on: 10/16/2010 9:02 a10/p10Page 13 of 147 . In the Controlling Structure hierarchy. Controlling Organizational Structure The Controlling Area represents the cost accounting environment where costs and revenues are managed. parallel ledger currency has been activated so that transactions are recorded in their local currency and in USD. It contains the tools for analyzing contribution margins of business units and market segments. and internal managerial reports are generated. Each Reporting Unit has specific Asset Classes associated with them.5. AAA will have one Controlling area. for company codes with local currencies that are not USD.4 Asset Accounting Structure 2.) All fixed asset financial transactions will post to the Book Depreciation Area. the Controlling Area is under the Operating Concern and 42091003.4 for the Asset Accounting Structure. In addition to the Controlling Area an Operating Concern. these companies will be in HK. CCG has also been defined. Particularly in AAA. AAA Group. In these companies. CCG. The Operating Concern is the main organizational unit for Profitability Analysis. AAA Group.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX (Group depreciation is required by the system to store asset values in USD. See Figure 2. Chart of depreciation Depreciation area: Book Depreciation area: Tax Depreciation area: Group Company code(s) Asset Classes Figure 2. Tax depreciation methods have been defined in the Tax Depreciation Area for all Reporting Units with specific tax depreciation requirements. The Group Depreciation Area is system defined and necessary for completing all fixed asset transactions in SAP. the group currency.
for example. Keystone Sales (CC US). Controlling Organizational Structure Operating Concern (CO -PA) [SAP Profitability Analysis (CO -PA) module] CCG Concord Group Controlling Area(CO) [SAP Controlling modules] CCG Concord Group Company Codes (FI) [SAP Financial Accounting modules] 100 0 Concord Camera Corp. The Operating Concern and Controlling Area currencies have been identified as USD.doc Printed on: 10/16/2010 9:02 a10/p10Page 14 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX all Company Codes are linked to the Controlling Area. Cost Center Structure The standard cost center hierarchy represents the organizational structure of AAA’s departments (active managerial units).A.5. Administration and Production. for example. Sales. Their organizational relationships are shown in five hierarchical levels: Level 1: AAA Group – the highest Cost Center Group that represents Global AAA Bbb Corp.6. Level 2: Cost Center Groups that represent AAA’s legal entities. Over 200 departments have been identified.3 2. Level 3: Cost Center Groups that represent AAA’s major department categories. CC UK. 42091003. See Figure 2. SAP Code TBD Code35 00 Concord Camera Hungary (Hungary) SAP Code6 TBD 100 Concord Camera Hungary Australia (Australia) ) (Latin America) (UK and Northern Ireland) (US) Legend: Grey highlighted box represents a dormant company Figure 2.R.L (France) 33 00 Concord Camera GmbH (Germany) 51 00 Concord Camera HK Limited (HK) 5 00 2 Concord Henggang Electronics Factory (PRC) 5 00 3 Concord Shenzhen Limited (PRC) SAP Code TBD 360 0 Concord Peter Keystone Bauser Graphics ( (Germany) SAP Code TBD 43 0 0 Concord Latin America SAP Code TBD 320 0 Goldline (Europe) Limited SAP Code TBD 450 0 Starprint Corp. (US) 4 0 10 Concord Keystone Sales Corp. (US) 42 00 Concord Camera Canada (Canada) 3 0 10 Concord Camera(Europe) Limited (UK and Northern Ireland) 3 0 40 Concord Camera France S. CCGermany and CC HK.
The European head office will be set up as an alternate hierarchy where European head office cost centers from each European company code will be grouped together as an alternate hierarchy cost center group.7 on Cost Center Accounting.doc Printed on: 10/16/2010 9:02 a10/p10Page 15 of 147 . The Cost Centers represent departments within major department categories (Level 3 Cost Center Groups). Below is a summary of the Cost Center Groups on the Standard Cost Center Hierarchy. The Cost Center Groups are other department categories that are further sub-divided into more specific departments. Level 5: Cost Centers (departments) for Level 4 Cost Center Groups. Examples of Level 4 Cost Center Groups are Design Engineering and Quality Engineering.1 The naming convention for Cost Center Groups and Cost Centers will be described in more detail in Section 3. Administrative and Production Cost Center Groups respectively. The detailed cost center information is documented in Appendix 8. In addition to the standard cost center hierarchy described above.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Level 4: Cost Centers and Cost Center Groups. Finance and Production Line under Sales. AAA BBB COST CENTER GROUPS: 42091003. Examples of Level 4 Cost Centers are Marketing. alternate hierarchies can be defined specifically for reporting or allocation purposes. An example is Industrial Engineering department under Design Engineering Cost Center Group.
doc Printed on: 10/16/2010 9:02 a10/p10Page 16 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Level 1 Description Level 2 Description Level 3 Description Level 4 Description CCG AAA Bbb Grp 1000 CCC 1000-3 1000-5 1000-6 1000-7 3100 CCUK 3300 CCGMBH 3400 CCFR 4100 CCUS 4200 CCCA 5100 CCHK 3100-3 3100-5 3100-7 3300-3 3300-5 3300-7 3400-3 3400-5 3400-7 4100-3 4100-5 4100-7 4200-3 4200-5 4200-7 5100-3 5100-4 5100-5 5100-6 5100-7 5200 CCWK 5200-3 5200-4 5200-6 Supply Chain Sales Engineering 1000-611 US Design Administration 1000-791 Executives 1000-795 Information Technology 1000-796 Finance Supply Chain Sales Administration Supply Chain Sales Administration Supply Chain Sales Administration Supply Chain 4100-333 Warehouse/Storage Sales Administration Supply Chain Sales Administration Supply Chain Production 5100-449 Supporting Service 5100-44XProduction Line Sales Engineering 5100-610 Design Engineering 5100-612 US Production Design 5100-620 Project Management 5100-630 Production Engineering 5100-640 Quality Engineering Administration 5100-791 Executives 5100-796 Finance Supply Chain Production 5200-449 Supporting Service 5200-44XProduction Line Engineering 5200-610 Design Engineering 5200-620 Project Management 5200-630 Production Engineering 42091003.
doc Printed on: 10/16/2010 9:02 a10/p10Page 17 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 42091003.
4 Accounts Payable 3.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.10 Profitability Analysis 3.5 Intercompany Financial Transactions 3. The global system settings will also be highlighted.12 Cash Management 3.9 Product Costing 3.1 Financial Global Settings 3.8 Internal Order 3. Each section will show the business process flow. Finance & Controlling Process Design Concepts The following sections will describe the design concepts for each business financial process identified for AAA Bbb Corp.13 Consolidation Procedures 42091003. its design concept and an overview of the master data and configuration variables that meet the design.6 Asset Accounting 3.2 General Ledger 3.3 Accounts Receivable 3.11 Budgeting / Planning 3.’s Global SAP Implementation for Phase 1. The business financial processes and system settings of the Finance and Controlling modules are described in the following sections of this document: 3.doc Printed on: 10/16/2010 9:02 a10/p10Page 18 of 147 .7 Cost Center Accounting 3.
FI Document Type/ Number Range FI Document Type Description Asset posting Dep.Asset Management (Financial Accounting) 42091003.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. SAP module AM AM AP AP AP AP AP AP AR AR AR AR GL MM MM MM MM MM MM MM SD SD SD SD SD SD CM FI Document Types AA AF KA KG KR KZ ZP ZV DA DG DR DZ SA PR RE RI WA WE WI WL RC RD RR RS RV RW ZR 03 18 14 01 48 51 52 49 50 49 49 82 83 85 86 88 81 20 No.1.1. (New doc types requested are: a) FI customer debit memo and b) lower of cost or market document) Explanation Notes for Items in Table 3.1. postings Other Vendor document Vendor credit memo Vendor invoice Vendor payment AutoPayment Posting Auto Payment clearing Other Customer document Customer credit memo Customer Invoice Customer payment G/L account document Price change Invoice receipt Invoice receipt-Interco.1: SAP Modules stated on table above: • AM . Range assignment 01 03 17 17 19 15 20 20 16 This section describes the high level settings in Financial Accounting that affects every FICO modules. Bank reconciliation Accoun t Type ADKMS AS AKMS AKMS AKMS KS ADKMS ADKMS DS DS ADMS DS ADKMS MS AKMS AKMS AMS AMS AMS AMS DS DS DS DS ADS DS DKS Reverse Document Type AA AF KA KG KR KZ ZP ZV DA DG DR DZ SA RE RI WA WE WI WL RC RD RR RS RV RW ZR The above table acts as a baseline for further discussion. Goods issue Goods receipt Inventory document Goods issue/delivery SD Credit Memo SD Debit Memo SD Credit for Return SD Rebate Credit Memo SD Invoice SD Invoice-Interco. Financial Accounting Global Settings 3.doc Printed on: 10/16/2010 9:02 a10/p10Page 19 of 147 .1.
‘RW’ – SD Invoice-Interco. ‘WL’ – Goods Issue/ Delivery Postings on Goods Issues with reference to SD Delivery. hence it is irrelevant to FI document type mapping.Accounts Receivable (Financial Accounting) GL – General Ledger (Financial Accounting) MM.doc Printed on: 10/16/2010 9:02 a10/p10Page 20 of 147 . For detail definitions.Accounts Payable (Financial Accounting) AR . ‘WI’ – Inventory Document Postings on Physical Inventory Differences. ‘RE’ – Invoice Receipt Postings on Invoice Receipt transactions from MM (transactions MIRO/ MRRL) ‘RI’ – Invoice Receipt-Interco. please refer to MM Conceptual Design Document. ‘WE’ – Goods Receipts Postings on Goods Receipts with reference to Purchase Order or Production Orders. please refer to MM Conceptual Design Document. Note this type of transaction does not have Reversal FI Document Type. For detail definitions. please refer to MM Conceptual Design Document. rather than reverse the original posting. For detail definitions.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX • • • • • • AP . SD related Document Types: * Different types of Sample Sales are differentiated by Sales Order types. ‘WA’ – Goods Issue Postings on Goods Issues or MM Transfer Postings. If the price changed need to be adjusted. The Invoice Verification step for intercompany sales are triggered by SAP in form of a batch generated automatically. not the price difference between PO and Invoice that is booked at the time of invoicing.Material Management (Logistics) SD – Sales and Distribution (Logistics) CM – Cash Management (Treasury) MM related Document Types: * Note that Purchase Order does not have accounting impact and hence no FI document type needs to be mapped to PO document types. ‘Price Change’ refers to the change in Standard Price of the material. ‘PR’ – Price Change Postings on Inventory Revaluation from MM (transaction MR21). a new transaction is posted. A Sales Order and delivery need to be completed before Sales Invoice is created in SD. For detail definitions on Goods Issues/ Transfer Postings. For details. please refer to MM Conceptual Design Document. Postings on Invoice Receipt transactions for Invoice Verification triggered from Intercompany Sales. please refer to MM Conceptual Design Document. ‘RV’ – SD Invoice Postings of Sales Invoice from SD transactions. 42091003.
A Return Order (a special Sales Order Type) and return delivery need to be completed before Credit Memo for Return is created in SD. thus are unique to the company and not suggested at the moment. The exact settings depend on individual company policies. A Credit Memo Request (a special Sales Order Type) need to be raised before Rebate Credit Memo is created in SD. This way. Doc no. A Credit Memo Request (a special Sales Order Type) need to be raised before Credit Memo is created in SD. FY2004. Document Number Ranges: The number range in the table below is defaulted from SAP and is suggested here as a reference. Number range assignment: It links to the number range table below. Data Conversion Document Types: They depend on the detail flow and procedures of data conversion in AAA. In standard SAP setting.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Postings of Intercompany Invoice from SD transactions. Meaning in interpreting a FI document.g. all the reversal document types are the same as original document type. certain reversal documents can be separately analysed. A Debit Memo Request (a special Sales Order Type) need to be raised before Debit Memo is created in SD. the system will use this Document Type for the reversal transaction. ‘RD’ – SD Debit Memo Postings of Debit Memo from SD transactions. ‘RS’ – SD Rebate Credit Memo Postings of Rebate Credit Memo from SD transactions. A Stock Transport Order (STO) and delivery need to be completed before Sales Invoice is created in SD. 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 21 of 147 . ‘RC’ – SD Credit Memo Postings of Credit Memo from SD transactions. This is preset by SAP system in the FI Document Type definitions. FI document numbers are ‘Fiscal Year Dependent’. ‘RR’ – SD Credit for Return Postings of Credit Memo from SD transactions as arose from Return. if needed. e. Here are the SAP Account Types: • • • • • A-Asset D-Customer K-Vendor M-Material S-General Ledger Reverse Document Type: Upon reversal of a particular FI document. 2000000 Account Type: This is the SAP code in defining which type of account can be posted to particular type of document. system always require users to quote the Fiscal Year involved.
industry. the national currency of the company code is considered the local currency (or company code currency). From a company code view. governments. USD. 2 Parallel Currency in SAP refers to additional currency that will be updated simultaneously by system upon FI postings. all other currencies are then foreign currencies. business and consumer representatives. When managing the ledgers in parallel currencies.doc Printed on: 10/16/2010 9:02 a10/p10Page 22 of 147 . Parallel currency 2 is maintained for AAA in addition to the local currency.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Number Range 01 03 14 15 16 17 18 19 20 47 48 49 50 51 52 81 82 83 85 86 88 Document no. to 0000199999 0000399999 1499999999 1599999999 1699999999 1799999999 1899999999 1999999999 2099999999 4799999999 4899999999 4999999999 5099999999 5199999999 5299999999 8199999999 8299999999 8399999999 8509999999 8699999999 8899999999 3. will be set as AAA’s Parallel currency. all values in the individual financial statements must be translated from the local or transaction currency into group currency. Group currency. from 0000100001 0000300001 1400000000 1500000000 1600000000 1700000000 1800000000 1900000000 2000000000 4700000000 4800000000 4900000000 5000000000 5100000000 5200000000 8100000000 8200000000 8300000000 8500000000 8600000000 8800000000 Document no.1. The source of ISO 9000 and more than 14 000 International Standards for business. for example.2. Before the consolidation process can be completed. the following effects result: 1 ISO. USD for US dollar. A network of national standards institutes from 148 countries working in partnership with international organizations. A group currency is used in the consolidated financial statements. 42091003. In Financial Accounting. government and society. Currency Organization for Currencies in SAP standard system are set as the ISO (International Standardization)1 standards.
1. See Section 3. USD. exchange rates should be defined. For each currency pair (e. • • 3.g. Exchange rate differences also arise in the parallel currencies.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX • During posting. Exchange Rates Exchange rates in the system are for the following purposes: • Posting and Clearing To translate amounts posted or cleared in foreign currency. This exchange rate type must be entered in the system and you must also enter the exchange rates for this type in the currency table. and stored in the FI document as a separate field. For standard SAP.doc Printed on: 10/16/2010 9:02 a10/p10Page 23 of 147 . • Exchange Rate Differences To determine gains or losses from exchange rate differences (between transaction rate. Exchange Rate Type In order for the system to translate amounts into various currencies. HKD: USD). EURX Rate for EU currencies translation to USD). the amounts are also saved in the parallel currencies. the update on exchange rate is a manual process. The following exchange rate types can be defined in SAP: • • • Buying rate Bank selling rate Average rate For posting and clearing.3 for Exchange Rate Types used by AAA. different exchange rates can be defined and differentiated using exchange rate types. C) • Foreign Currency Valuation To valuate GL/ AR/ AP open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations. or to check a manually entered exchange rate during posting or clearing.3. the system uses the exchange rate type M (average rate). and period-end closing rate.e. G/L account transaction figures are also updated in the parallel currencies. i.1. The amounts are translated automatically using Average Rate (M Rate for majority cases. M or EURX. 42091003.
The algorithm has been adjusted to meet the European Monetary Union statutory guidelines. indirect rates. Reference currency is assigned to an exchange rate type. To translate from GBP to EUR for day-to-day FI posting. All other currency translation for Day-to-Day FI postings uses M exchange rate type instead. Usage for AAA: It is required by SAP system that for all EUR. currency translation should be set as a Reference Currency. There are various tools you can use to automatically determine other exchange rates from existing ones. (This is the same as direct vs. exchange rate is entered in the reference currency.) Not every pair of exchange rates needs to be entered into the system.) • Reference Exchange Rate Currency key used to carry out all foreign currency translations for a specific exchange rate type. the system uses the EURX exchange rate type specifications. The following tools are available: • Inversion Inversion is the process of calculating the opposite rate from a defined exchange rate. For every other currency. The following is list of Exchange Rate Type for AAA: 42091003. This only applies to Average Rate conversion.doc Printed on: 10/16/2010 9:02 a10/p10Page 24 of 147 . All other translations are carried out using the reference currency.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX • • Historical exchange rate Key date exchange rate (More exchange rate types may be added in the detailed design phase. The indicator must be set if the statutory conversion rules agreed by the participating countries in the EMU are to be used. Example: EUR is set as the reference currency.
the inverted exchange rate relationship may also be used. The indicator must be set if the statutory conversion rules agreed by the participating countries in the EMU are to be used.Foreign Curr Translation Consolidation .Direct Quote should be used .This exchange rate type must be entered in the system and you must also enter the exchange rates for this type .Can be applied per specific set of accounts in Group COA .doc Printed on: 10/16/2010 9:02 a10/p10Page 25 of 147 .Can be applied per specific set of accounts in Group COA EUR Y M N/A Y N C Closing Rate N/A Y N 1001 Historical Exchange Rate Current Rate N/A Y N 1002 N/A Y N Note: * Indicator that in the case of a missing exchange rate entry in the system for the required translation from one currency into another. ** The algorithm has been adjusted to meet the European Monetary Union statutory guidelines.This rate applies to all currencies (including EUR) .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Exchange Rate Type Code Description Business Usage Summary Details SAP configuration settings Reference Currency *Indicator: Calculation allowed with inverted exchange rate? N **European Monetary Union statutory guidelines met? EURX EMU Conversion method not participant Average Act as Average rate for all translation with EUR For Day-to Day posting and clearing. the system uses this exchange rate type Period end foreign currency valuation Consolidation .Used for all translations with EUR .Foreign Curr Translation . 42091003. Exchange rate will be maintained centrally by AAA Corporate and all AAA companies will perform business transactions using the rate updated by Corporate.
The Fiscal Year Variant is flexible and allows different period end dates to be defined for subsequent years. Fiscal Year Variant A fiscal year is divided into posting periods. M rate will be used.1. including FI generated Intercompany Transactions. For period-end. a fiscal year can have a maximum of twelve posting periods and four special periods. and the next posting period is opened. the period is closed. Each posting period is defined by a start and a finish date. Each reporting unit in AAA will be created a separate ‘Posting Period Variant’. Periods Opening and Closing Posting Open and close posting periods for FI modules are controlled in SAP by ‘Posting Period Variant’. This centralised Fiscal Year Variant will be assigned in all Company Code.3.5. EURX will be used instead.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX All day-to-day transactions. Each reporting unit can take care of their own ‘Posting Period Variant’ and be responsible for their closing timeliness. 42091003. you can also define special periods for year-end closing.4. 3. In General Ledger Accounting. different from Company Code currency). the ‘Posting Period Variant’ for that reporting unit can be closed and prohibit further changes in prior periods. In addition to the posting periods. For example. a 4-5-5 or 4-4-6 fiscal period may be defined for future years. including EU currencies) for revaluating open items held in foreign currencies (i.doc Printed on: 10/16/2010 9:02 a10/p10Page 26 of 147 . Special periods can be open for closing postings during the period-end closing. only the current posting period is open for posting. with 4 special periods for closing activities. At the end of this posting period. This Fiscal Year setting will be controlled centrally. one central Fiscal Year Variant will be set up with 4-4-5 fiscal period.e. For EU related exchange rates. Once a period is closed in the branch. This enables centralized or decentralised control on the Period-end closing timing. Foreign currency valuations. a fiscal year can have a maximum of twelve posting periods and four special periods. For detail mechanism on Foreign Currency Valuation. or a centralized group can perform the same activities. In General Ledger Accounting. you can also define special periods for year-end closing. Usually. In addition to the posting periods. For all AAA Company Codes. Since FI generated Intercompany postings are within the same document including entries of both companies. Exchange Rates stated in Exchange Rate Type ‘C – Closing Rate’ will be used (for all currencies in this case. all other posting periods are closed.1.7 Accounts Receivable Period end Processing: Month End Open Item Revaluation 3. please refer to 3. the exchange rate used will be the same for both entities in this case.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX
‘Posting Period Variant’ can also be differentiated by Account Type. Meaning opening and closing of posting periods can be controlled by account type (A-Asset, D-Customers, K-Vendors, M-Material, SGeneral Ledger). For example, for a specific posting period, postings can be permitted to customer accounts, but not to vendor accounts. Further range of account can be limited in open and close period as well per account type.
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FI Docum ent Header FI Posting Only
FI docum Line Item ent s Integration to CO(Controlling Only
Balance Sheet Item
Enter Header Detail
- Com pany Code - Posting/ Docum Date ent - Reference no. - Currency/ rate
Enter FI Line Item
Enter - G/L Account - Am ount - Text (if needed)
Enter another FI Line item
END Is it a B/S item ? YES P&L Item A. Overhead Cost B. Cost Reducing Revenue C. Operating Sale D. Sales Reduction
Required Cost Center Or Real Internal Order COPA Profit Segm ent
Optional Statistical Internal Order
Enter - G/L Account - Am ount - Text (if needed)
Which CO object to assign?
Figure 3.1 General Overview of a Financial Posting in the General Ledger and Relevant Cost Objects
The central task of G/L accounting is to provide a comprehensive picture for external accounting. In SAP G/L accounting, all business transactions are fully integrated with all the other operational areas of a company. It ensures that the accounting data is always complete and accurate. Essentially, the general ledger serves as a complete record of all business transactions. It is the centralized, up-to-date reference for accounts. Actual individual transactions can be checked at any time in real time processing by displaying the original documents, line items, and transaction figures at various levels such as: • • • Account information Journals Total/transaction figures
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Balance sheet / profit and loss evaluations
The SAP General Ledger module provides the following function for all AAA companies across the Group: • • •
• • • •
COA/ General ledger master Automatic intercompany postings Real-time automatic postings from subledgers (Accounts Receivable, Accounts Payable, Asset Management) to the General Ledger Accruals/ Recurring entries/ Regroup3 account balances Automated foreign currency valuations Online real-time report drilldown to source documents in all ledger/ subledgers Multi-currency support Each Company Code will only be able to view and post the GL that has been assigned to it.
GL Master Data
In SAP, the G/L account master records control the posting of accounting transactions to G/L accounts and the processing of the posting data. Before you can make postings to a G/L account, you have to create a master record in the system for the G/L account GL Master Data Structure G/L account master records are divided into two areas so that company codes with the same chart of accounts can use the same G/L accounts.
Chart of accounts area (General Data)
The chart of accounts area contains the data that is valid for all company codes, such as the account number
Company code specific area
The company code specific area contains data that may vary from one company code to another, such as the currency in which the account may be posted. Chart of Accounts in SAP - Summary In SAP FI modules, 3 different types of Chart of Accounts (COA) exists, they are interlinked and serve different purposes. This section describes the detail usage of each of them in AAA.
Regroup: Perform transfer postings in presenting assets or liabilities in correct place for Financial Statement Reportings. For example, for group of bank accounts with total credit balance, value need to be presented on the liability side of the Financial Statement Reports, this is aided by means of a function called Regroup in SAP in generation of this transfer posting. 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 29 of 147
doc Printed on: 10/16/2010 9:02 a10/p10Page 30 of 147 .1 Note: Peter Bauser is an additional company codes that will be included in the above Chart of Accounts [S P Enterprise C A onsolidation (E -C ) m C S odule] .C onsolidation performin th is sep arate environm ent G roup Chart of Accounts B /S Assets: 11000 12000 42091003.2.D ata auto -post fromO perat .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Illustration on SAP COA Relationships: Fig 3.
doc Printed on: 10/16/2010 9:02 a10/p10Page 31 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Detailed Business Usages and characteristics on different types of SAP COA: Operating COA Group COA Country Specific COA Business Usage AAA Usage Day to Day Operation Consolidation Support government specific format Financial Statement generation 42091003.
In SAP. etc. the Global Operating COA for AAA will be as follows: Chart of Accounts [4 characters] CONO Description [50 characters] AAA Global Operating Chart of Accounts Length of G/L account number 8 Related Group Chart of Accounts CONC 42091003. Consolidated FS (either sub-group level. This Global Operating COA will include all the necessary GL accounts for every AAA company. Germany. Group – AAA Corporate Government specific format FS CCSZ. Reports will draw values posted on FI-GL Linkage to FIGL Document Creation Frequency 3. and description) Linked to FI-GL by ‘Alternate Account’ field in ‘Company Code specific segment’ of GL Master No document will be posted. UK. CCUK. online real-time FI-GL (Financial Accounting – General Ledger) Only exist as COA segment of GL Master (account no. etc.2.2.doc Printed on: 10/16/2010 9:02 a10/p10Page 32 of 147 . CCHK.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Operating COA Group COA Country Specific COA Type of Financial Statements (FS) generated Example of AAA units deployed All individual AAA Company FS CCUS. Operating Chart of Accounts The Finance Team has reengineered the separate As-Is COA from all AAA companies into one single To-be global Operating Chart of Accounts (COA). or Group level) Sub-group – HK. CCFR SAP specific information SAP module FI-GL (Financial Accounting – General Ledger) Master Data Exist as a complete GL master data (COA segment and Company Code specific segment) Exist as a GL master data (COA segment and Company Code specific segment) FI documents are posted real-time upon day-to-day business transactions in SAP (FI/MM/SD/PP) EC-CS (Enterprise Controlling – Consolidation) Financial Statement Item (Group Account – account on the Group COA) Linked to FI-GL by ‘Group Account’ field in ‘COA segment’ of GL Master ECCS (consolidation) document are posted upon all postings from FI-GL.
so that the data from the G/L account can flow to the country-specific COA during FI report execution (no separate Accounting Document will be created for Country-Specific GL. Rather. This also creates a foundation for the conversion process on GL transactions. major tasks relating to additions/ adjustments on the Operating COA will be as follows: • • • Sales and Distribution (SAP-SD) account assignments Material Management (SAP-MM) account assignments Detailed mapping of As-Is COA (for each AAA subsidiary) to the To-be single Global Operating COA.2. the Country-Specific GL is mapped in the field ‘Alternate Account’. the structure of the Global Operating COA has been confirmed. Define adjustment accounts for different Multiple Views of the Financial Books. In SAP. Country-Specific COA are set up for these 2 countries. Accounts Country-Specific Chart of This addresses the needs of AAA France and AAA Shenzhen governmental financial reporting needs. in the Company Code section of CCFR and CCSZ’s Operating GL account Master. No real postings are stored into these GL accounts.6 on Multiple Accounting Books for AAA.13. One or many As-is accounts can be mapped to one SAP account.2.doc Printed on: 10/16/2010 9:02 a10/p10Page 33 of 147 . please refer to Section 3.3. Please refer to Section 3.3 on EC-CS Enterprise Consolidation in this design document. Since France and China government need the generation of financial statements (Balance Sheets. • 3.5 on Account Group Structure. Information on Country-Specific GL will only be presented to users 42091003. Account details will be furnished in a separate document.2. which are different from that of AAA Global COA. Individual GL accounts are to be fine-tuned in Detailed Design Phase.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX The Global Operating COA will be presented in SAP as COA segment of GL Master. Note: During the conceptual design stage. For details. and Profit & Loss Statements) in predefined numbers and formats. Please refer to Section 3. Group COA for AAA: CONC is set up for consolidation purpose. Country-Specific COA for AAA will be as follows: Chart of Accounts [4 characters] CCFR CCSZ Description [50 characters] France Country Chart of Accounts China Country Chart of Accounts Max Length of G/L account number 10 10 Related Group Chart of Accounts CONC CONC The Country Specific COA will be created in SAP as COA segment of GL Master.
via reporting in FI-GL). Please refer to table in Section 3.2.1: Detailed Business Usages
and characteristics on different types of SAP COA.
For CCFR, the reporting on France government financial statements will be generated in SAP by setting of a unique Financial Statement Version, which groups Country-specific GL into desired format. This financial statement format will satisfy French statutory reporting requirements.
Special Purpose Ledger for CCSZ
For CCSZ, in addition to Country-Specific GL, a Special Purpose Ledger (FI-SL, separate from FI-GL) will be created to produce financial statements with a calendar year end (required by Chinese government as compared to AAA’s fiscal year end (June and 4-4-5 based).AAA Day-to-day operations that are posted in FI-GL (to Operating GL account) will be posted automatically to the Special Purpose Ledger for CCSZ. Postings in FI-GL will follow AAA’s fiscal year setting, while that in FI-SL follows China government’s fiscal year setting. For example, the posting date is 20-Jun-03, document for CCSZ in FI-GL will be posted as period 12, while in FI-SL will be period 6. The Country-specific GL no. will also be posted to FI-SL through customization. This ensures the FI-SL contains the correct accounting posting periods with Country-Specific GL no. for rendering of China specific Balance Sheets and P&L accounts. Here is the summarized treatment on CCSZ’s financial books:
CCSZ’s day-to day postings Operating COA General Ledger (FI-GL) June, 4-4-5 based Yes Set a Financial Statement Version to group Operating GL accounts China government specific postings Country-Specific COA Special Purpose Ledger (FI-SL) Calendar year No (auto-post) Set a Financial Statement Version to group Country-specific GL accounts
COA SAP Module Fiscal Year User’s input Financial Statement generation
GL Master Data Maintenance
One global Operating Chart of Accounts will be set up for all AAA companies. Since it relates to AAA’s day to day operations, the maintenance of the GL Master Data is a critical process for AAA. In accordance with the design of SAP GL Master Data, all AAA GL accounts will be created with the COA segment of the GL Master. This forms the list of Operating Chart of accounts. Company Code specific segment GL Master will only be created to necessary AAA
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companies, whenever it is appropriate. Only GL Master Data with COA and Company Code segments can be posted in the General Ledger in SAP. For the detailed process flow on the GL Master Data maintenance, please refer to Figure 3.1.1 below.
General Ledger Master Data Maintenance
Concord Cam era Subsidiary subm its request for New GL account to CCC for approval
CCC reviews request
Create new GL account for subsidiary (FS00)
Disapproved request sent back to Subsidary
CCC on the above chart refers to AAA Bbb Corporate As stated in the FICO Prototype, for the initial request for GL account creation/ changes from subsidiaries, a standardised form need to be applied with reasons on the requests. There will be an exercise for the users in designing this new standardised form. This request form is to be processed out of SAP and proposed to utilise the current AAA Lotus Notes approval features.
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Gen ral Led Ma DataMain ance e ger ster ten
Create G/L Account centra in COA le lly vel and Com pany Code Leve l (FS0 0) End En G/L Accoun ter t #an Com y d pan Code [Create w/ Tem plate]
S Ac ave count Master Data
Define G/L Account Details
Is this a P&L accoun t?
Create Cost Elem t en (FS0 0)
DefineCost Ele en m t De tail (FS0 0)
Re arks: m * New G/L num r shou becon be ld sistent with Conco Ope rd rating COA Accoun Group Definition t * Ensureassign ent of Group Accountnum is corre m ber ct
Figure 3.1.1 General Ledger Master Data Maintenance
Key control points in GL Master Data: SAP GL account COA Segment Company Code Specific Segment General Description P&L or B/S account? Usage Remarks
Short Text/ Long Text (in different language if needed) Radio button
Account group Group Account
Limit GL account no. range Integration to
For P&L accounts, SAP will automatically create respective Primary Cost Element upon saving of new GL Master Example: Current Assets/ Fixed Assets, etc. Required field for all GL
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only GBP currency can be posted to this bank account. then all currencies can be posted to this account . For point 1 above. (Exchange rate differences are an exception when valuating G/L balances) Only populate for CCSZ and CCFR for AAA Each company is set up with a different key for authorization control Account Group With the account group. e. 2. The structure of the Account Groups has been confirmed during the FICO design confirmation workshop and is listed in the table below. If another currency is specified. if a US bank account’s currency is GBP.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX SAP GL account COA Segment Company Code Specific Segment Number Account Currency Usage Remarks Consolidation module Controls the posting currencies in the account Alternate Account Number Authorization Group Linkage to CountrySpecific COA Allows access/control to Company Specific Segment Master data If the account currency is set as the Company Code currency. The screen layout for creating G/L accounts in the company code-specific area 1. The account group determines: The number interval from which the account number is selected when a G/L account is created. Account Groups will be defined according to level 1 – ‘Account Group’ of the AAA Global Operating Chart of Accounts document. Account Group [4 Characters] 1000 2000 3000 4000 5000 6000 6100 Description [30 Characters] Current Assets Long Term Assets Current Liabilities Long Term Liabilities Shareholders' Equity Revenues Sales Returns and Allowances GL Account range from/ to 1000 0000-1999 9999 2000 0000-2999 9999 3000 0000-3999 9999 4000 0000-4999 9999 5000 0000-5999 9999 6000 0000-6499 9999 6100 0000-6199 9999 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 37 of 147 .g. then only that currency can be posted. you group similar accounts together and control the creating and changing of master records.
users are required to enter ‘Group Account’ number in the COA segment of the GL Master Data upon new GL creation.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 6200 6600 6700 7000 7100 7200 7300 7400 7500 8000 8100 9000 9900 Cost of Sales Selling Expenses (Var) Selling Expenses (Fix) General & Administrative Expenses Interest & Finance Charges Interest Income Intercompany Income/ Expense Other Income / Expense Income Tax Expense GAAP Reporting/Statutory Adjustments Adjustments for Global Transfer Prices for Tax (by corporate) CO Accounts (secondary cost elements only) Data Conversion Accounts 6200 0000-6299 9999 6600 0000-6699 9999 6700 0000-6799 9999 7000 0000-7099 9999 7100 0000-7199 9999 7200 0000-7299 9999 7300 0000-7399 9999 7400 0000-7499 9999 7500 0000-7599 9999 8000 0000-8099 9999 8100 0000-8100 9999 9000 0000-9899 9999 9900 0000-9999 9999 • • • • • AAA Global Operating COA Account Groups are ranges from 1000 to 7999 Account Group 8000 is reserved for adjustments from US GAAP to Local GAAP Account Group 8100 is reserved for Adjustments for Global Transfer Prices for Tax (by corporate) Account Group 9000 is reserved for creation of Secondary Cost Element in SAP Controlling (CO) modules. when EC-CS Consolidation module is activated. This range will not be created as GL Master in FI. footage. GL accounts will be created under this range for data conversion purposes. etc. Secondary Cost Elements share the same number range as FI. This is usually necessary to offset certain G/L postings during conversion. 42091003. Integration with Enterprise Consolidation module According to standard SAP design. Account Group 9900 is reserved for Data Conversion account creation. Details of the account range breakdown will be revisited upon the data conversion exercise is performed. Due to the integration nature of the FI/CO. This ensures every FI-GL postings are seamlessly integrated to the EC-CS Consolidation module to automatically generate Consolidation documents. These are for cost allocations that are based on secondary cost elements like statistical figures. therefore a specific range is reserved. It also ensures that every account in COA is specifically mapped to a Group Account in the Group COA for the Consolidation module. number of heads per unit.doc Printed on: 10/16/2010 9:02 a10/p10Page 38 of 147 . and can be easily referenced for conversion data reconciliation purposes. These conversion accounts are in a specified range so that they will be excluded from business operation financial statements. for example.
12 on Cash Management in this document.2. please refer to Sections 3.4 on Special Purpose Ledger for CCSZ. With this indicator. This ensures users required to enter the Country-Specific GL for all GL creation in the Company-code specific segment. For detail treatment on government required Financial Statement formats for France and PRC.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Integration with Country-Specific COA For CCFR and CCSZ.2. • • 42091003. the field ‘Planning level’ in the Company-Code Specific segment of GL Master links the cash flow information to SAP Treasury Cash Management (TRCM) module. Asset Management/ Account Receivables/ Account Payables sub-modules are integrated to FI-GL via the field ‘Reconciliation for Account Type’ in the Company-Code Specific segment of GL Master.doc Printed on: 10/16/2010 9:02 a10/p10Page 39 of 147 . please refer to Section 3. These GL accounts are set as ‘Automatically Post Only’. For details. which ensures the value always in sync from MM to FI. This occurs based on account assignment configuration between the MM and FI modules. ‘Alternate Account’ field are set as required field. Different indicators for ‘Reconciliation for Account Type’ are: o A – Asset Management o D – Accounts Receivable o K – Accounts Payable Inventory accounts are posted to directly by movement of materials. the GL account can only be posted via respective sub-ledger in SAP. Integration points with other SAP modules • For all bank accounts.3 on Country-Specific Chart of Accounts and 3.
g *Gr s S le os a s *S le as D d cio eut n *CO GS *S llin e g Ex e s s p ne *G& A .2.6. Lo l ca GAAP 3 Glo a Ta . . 42091003. . Day to Day GL a u t cco ns Operation USGAAP Blo A ck [Op rain e t g COA] 1 2 3 4 5 6 . The following are summarized requirements: Concord Finance Multiple Reporting Views FI-GL 1. . INFO from FI Mm g t Re o p rt (CO A) P Va eF ld lu ie s e. bl x Pla n g n in INFO from FI Co s lid no a tio COA n GROUP G/L 1 2 3 4 5 6 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. 2. .. Reports Reports A A A + B + C Rep orts Reports Re orts Re orts p p D E Block B [Ad justm nt e GL] B Block C [Ad justm nt e GL] C All adjustm nt e GL fromFI m to ap dum y Group m Account in EC-CS [Not affe cting Consolidation] Note: These reporting views are accomplished through using different financial statement versions for each view in accordance with the GAAP or tax requirements.doc Printed on: 10/16/2010 9:02 a10/p10Page 40 of 147 . . . E . Multiple Reporting Views for AAA This section describes the approach in SAP to cater the AAA requirement of handling multiple accounting books for individual company.. .
At AAA. Customers who are related to the trade sales in which the sales order are required from Sales & Distribution module will require the Sales Area Data. in which the information are purely meant for accounting purposes. All postings in accounts receivable are also recorded directly in the general ledger. The sales area data will contain information like Order Currency. Create either in Accounting or SD module only Customer Master Data are divided into 3 areas: a. Different G/L accounts are posted to depending on the transaction involved (for example trade debtors). Accounting Data c. Account control data like the reconciliation account number in G/L accounting. Customer Master Maintenance Customer master records contain data that control how transaction data is posted and processed. and avoid the need to enter the same information twice.doc Printed on: 10/16/2010 9:02 a10/p10Page 41 of 147 . Dunning procedures and the date of the last dunning notice. General data b. and phone numbers. customer master records will be maintained by each Reporting Unit.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. The master record is used in Sales and Distribution as well as Financial Accounting. you enable it to be accessed throughout your organization. 42091003. address. This includes all of the information about a customer that you need to be able to conduct business with them. language. 3. Order processing. There are two methods of creation for customers’ master data: a. shipping. Sales Area Data General data contains information such as Customer’s name. For the numbering convention please review S&D Global Design Document for reference. which is shared by both FI and SD module. Accounts Receivables The accounts receivable application component records and administers the accounting data of customers and this also constitutes an integral part of Sales & Distribution module.1. Meanwhile.3. By storing customer master data centrally. This central organization also prevents data from being inconsistent between different application components. and billing data. There are currently six customer groups identified in AAA Bbb. Create Centrally In Financial Accounting or Sales and Distribution module b.3.
4. Master Data Maintenance Non-Trade/ Sundry Customer The customer master data for Sundry and Non Trade customers are basically the same as the trade customer but without the Sales Area Master Data 3. The payment term in the master data will default to the respective invoice document. the following Payment Terms have been identified: Customers Vendors 42091003.3.3.doc Printed on: 10/16/2010 9:02 a10/p10Page 42 of 147 . SD customer returns are document type RR. Additional document types can be defined according to AAA’s requirements. The payment term on these individual invoices can be changed manually.3. Payment Term Payment term will serve to determine the invoices due date and the discount amount as agreed upon at the time of the sale.5.2. As at the current stage of the Project. A document type for a FI customer debit memos has been added to the list.3.1. Maintenance • Trade Customer Master Data Please refer to Customer Master Data Maintenance in Sales & Distribution module 3. Payment terms are independent of company code.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Item 1 2 3 4 5 6 Customer Group CC Sold To Party CC Goods Receipts CC Payer CC Bill To Party CC Intercompany CC One Time Vendor (Staff) Relevant To SD √ √ √ √ √ √ 3. Document Type Document type Description Number Range DG Customer credit memo 1600000000-1699999999 DZ Customer payment 1400000000-1499999999 DR Customer invoice 1800000000-1899999999 All FI document types are listed in Section 3.3. 3. SD debit memos are booked in FI as document type RD.
doc Printed on: 10/16/2010 9:02 a10/p10Page 43 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Term Code Description Cash On delivery 5 Days Credit 7 Days Credit 14 Days Credit One Month Credit 45 Days Credit Two Month Credit Term Code Description Cash On delivery 5 Days Credit 7 Days Credit 14 Days Credit One Month Credit 45 Days Credit Two Month Credit The FI/CO Design team will continue to collect any outstanding payment terms from the FI/CO Business Representatives. users can decide to have the same payment terms used for both AR and AP. Payment receipt dates are calculated based on Base Line Dates in invoices. Any special payment terms for specific countries will need to be catered for as well. The Base Line Date is derived from the Document Date (same as invoice date) that is manually entered. 42091003. For consistency. the payment terms should be consolidated. Although different coding were suggested for Customer and Vendor Payment terms.
the posting of invoice amount and the cost of goods sold are issued during the billing and delivery stage from the Sales and Distribution module. Outgoing Invoice From FI-AR Module (Non Trade) Sundry Customer.1 Billing/Invoicing from SD Module Billing From Sales And Distribution Module For normal customers’ sales. Credit Note 42091003. The posting method is the similar to the GL posting but different in the document number and document type.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.5.Cre teIn ice ou t ce b a vo Accounts Receivable Transaction Sale & s Distribution SD Billin g Docu e t mn Sa s Ord r le e Proce s s Se rvice Pro e to vid d Cu stom r e FINANCE En r AR In te voice (He d r De il) a e ta En r Cu te stom r e Lin Ite e m (AR) En r Re n e te ve u Lin Ite e m (G/L) AR Docu e t Pos d mn te Sim la Postin u te g Figure 3.doc Printed on: 10/16/2010 9:02 a10/p10Page 44 of 147 . Posting Acc n Re iva le.2.3. Staff advance and Inter-company Control Account Advance may be issued to staff and this is posted through the Financial Accounting – Account Receivable module.6. Refer to the SD Global Design Document for further explanation.
Duplication in delivery of goods will not occur since the system will match the quantity recorded in the Sale Order. However.5.Cre teDow pa m n (Cus m r Adva e unt ce a a n y et to e nc ) Re ive ce Cus e tom r Adva nce FINANCE En r Do te wn pa m nt De ils y e ta (F-2 ) 9 Sim la Po g u te stin Post Docu e t mn Ma ua Pro ss n l ce Custo e Down mr p ym nt a e Cle ring a (F-3 9) Sim tePo g ula stin Post Docu e t mn Figure 3. it will be done through the Financial Account – Account Receivable module. for non trade-related.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX For trade related credit memos please refer to SD document.4 Customer Down Payment Posting Down payment is posted into the SAP system using the special GL indicator (A). Down Payment Posting Acco Re iv ble. During the payment period. the balance received from customer can be cleared against the invoice issued and the down payment received previously. Letter of Credit 42091003. The payment item is kept at each customer’s accounts.doc Printed on: 10/16/2010 9:02 a10/p10Page 45 of 147 . The document header “Reference Field” will be used to keep track of the sales order number that the down payment is referenced to. One note to point out is Finance will approve the credit memo created in SD before it is posted in the general ledger.2.
doc Printed on: 10/16/2010 9:02 a10/p10Page 46 of 147 . Accounts will record transaction in system. Duplication in delivery of goods will not occur since the system will match the quantity recorded in the Sale Order. Once payment has been received from bank. For invoices created in FI that need to apply sales tax. Output Tax / Sales Tax / Output VAT In general all Sales Tax are set up in S&D when they bill customers. Invoices for EU and non EU sales will contain the customer VAT registration number and the Reporting Unit VAT 42091003. users have to manually select the correct rate before posting in to SAP Each Branch will use one G/L account for tax.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Letter of Credit is posted into SAP system using the special GL indicator (L).
42091003. Customer VAT numbers are set up in the customer master record and will default into the transactions. This will allow VAT reporting to meet statutory requirements.doc Printed on: 10/16/2010 9:02 a10/p10Page 47 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX registration number for the tax exemption to be realized. Further analysis of the various sales tax applications will occur during Detailed Design.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Account Receivable . the AAA Bbb accounting staff will use the post with clearing function to offset the customer’s open item against the bank or bank clearing account.doc Printed on: 10/16/2010 9:02 a10/p10Page 48 of 147 . 42091003. the customers may use different payment methods such as Cheque Receipt and Bank Transfer. Once the total amount of selected open items equals the amount of entered line items. Regardless of the payment methods being used by the customer for payment. among the current available terms are Down Payment.7 Accounts Receivable Payment Currently. there are several payment terms being used in AAA Bbb.5. For down payment and full payment. Full Payment and Post Dated.2.Partial Payment Incoming Payment & Remittance Advice Received from Customer Incoming (Customer) payment NO Partial Payment (FB-28) Select Invoice from Customer Account (FB-28) Partial Payment Posted (FB-28) View Customer Account (FB-03) FINANCE Full Payment? Selected Invoice on Customer Account w/ info from Remittance Advice (FB28) Payment Posted (FB-28) View Customer Account (FB-03) YES Small Difference will go into small difference account Figure 3. the system will post and clear the open items. Posting With Clearing is done by entering the document line items and then selecting the open items that need to be cleared.
The difference between the Partial payment and Residual Payment are as follows: a. the customer will normally inform the accounting staff of their intention to pay. the account staff will perform a journal adjustment to clear the Clearing account to the Bank Account. Partial and Residual Payment In SAP. the partial payment function will be more appropriate to use at AAA Bbb. Open item management ensures that all items that have not yet been cleared are available in the system. However. Meanwhile a cleared new line item will be created for the paid amount. the system will assign a clearing document number and the date on which they were cleared. b. 3.7. Processing Accounts Receivable Periodic Dunning/ Reminders To Customers Dunning letters are actually the reminders sent to customers for due payment.doc Printed on: 10/16/2010 9:02 a10/p10Page 49 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX In clearing these items. Full Payment For full payment by mailing cheques. SAP provides the flexibility in accepting any part payment in 2 methods. Please refer to AP for AAA’s tolerance range. Partial Payment and Residual Payment. For telegraphic transfer. Only after every open item in a document is cleared can a document be archived. the decision on which function to use depends on how the user prefers to see the line item in the customer records. Both functions are available in the current system. They will also fax or send in their bank in slip as proof of payment. Upon clearance by the bank.3. user can define the tolerance limit for system to accept any payment difference. Residual payment will clear the original invoice and create a new line item and document with the unpaid amount to replace the original invoice. The level of dunning letters and the days interval for each level still need to be identified 42091003. Partial payment will keep the original invoice line item open until the full amount has been cleared. WIRE transfer incoming payments and direct bank-in. the account department will post and clear the customer open items against the Bank Clearing Receivables account. Currently. The account staff will post and clear the customer items upon the confirmation from the bank of payment clearance.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Generate Customer Statement AAABbbThere will be two types of customer statement in AAA Bbb. posted to either a revenue or expense account stored under a special key. To help keep track of open items. During the Implementation phase. therefore. One internally which will be used between branches and one which will be used for external customers. This specifies exactly which type of valuation will be carried out i. In order to perform the revaluation in SAP. Postings made in Accounts Payable are simultaneously recorded in the General Ledger where different G/L accounts are updated based on the transaction involved (payables.e. The amounts can be either a gain or loss. you must always specify a Valuation method. A reversal of this booking will be automatically created for next month to eliminate this gain or loss 3.4. and are. AAA will design balance confirmations. a revaluation process needs to be done.). Month End Open Item Revaluation Foreign currency transactions may be posted at a different rate to the current month end rate. etc. there are due date forecasts and other standard reports that be created. where deliveries and invoices are recorded based on each vendor. account statements and other forms of reports according to business correspondence requirements with vendors.doc Printed on: 10/16/2010 9:02 a10/p10Page 50 of 147 . The system automatically makes postings to the FI component in response to these transactions. Thus in preparing the current month Balance Sheet. Accounts Payable The accounts payable application component records and administers accounting data for all vendors. based on which currency type and how detailed the resulting list for the valuation is to be. Exchange rate differences resulting from the valuation of open items and foreign currency balance sheet accounts are automatically posted to specific accounts assigned during the configuration. It is also an integral part of purchasing. The unrealized gain or loss is the difference between the exchange rate posted at the time of booking the invoice and the current month end exchange rate. down payments. 42091003.
At AAA Bbb. the data in vendor master records control how transaction data are posted and processed for a vendor. Any specification of vendor code (especially the external assignment) beyond the valid vendor code range will not be accepted by the system. a group key will be placed in their master record to allow single reporting/monitoring of all related vendor records in each Branch. 3.4. The vendor master record also contains all the data you require to do business with your vendors. The exception will be intercompany vendors that where vendor codes will be externally assigned. The vendor groups are mutually exclusive. The SAP system can assign vendor codes internally or externally.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX There are balance lists.doc Printed on: 10/16/2010 9:02 a10/p10Page 51 of 147 .. In SAP. the range and format of vendor codes are predefined in customization. Vendor Master Maintenance The vendors are classified in to six different account groups. Item 1 2 3 4 5 6 Vendor Group Vendors with PO Intercompany One Time Vendor Vendors without PO Boards of Directors Employees Relevant To MM √ √ √ Account Group is used to control the assignment of vendor code and to maintain the consistency of vendor master data to be maintained for the vendors in same account group. vendor codes will be created automatically based on the system numbering sequence. Regardless of the assignment method specified above. For global vendors. journals. balance audit trails and other internal evaluations available for documenting transactions in Accounts Payable.1. 42091003.
See Section 3. and phone numbers • Tax numbers • Bank details • Account control data like the number of the G/L reconciliation account for the vendor account • Payment methods and terms of payment set up with the vendor • Purchasing data • Withholding tax information. A range of payment terms will be maintained in system.4. the vendors are considered as the suppliers.2. Maintenance • Trade Vendor Master Data Please refer to Vender Master Data Maintenance in Material Management module 3.4.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX The master record is used not only in Accounting but also in Materials Management. address. See the table below for payment terms that are identified at the current stage.4.1 for document type details. for example 1099 tax information In the Materials Management module.doc Printed on: 10/16/2010 9:02 a10/p10Page 52 of 147 . language.4. 3.4. Document type KZ KG KR Description Vendor payment Vendor credit memo Vendor invoice Document Type Number Range 1500000000-1599999999 1700000000-1799999999 1500000000-1599999999 For Credit memo in MM the document type will be RE and a corresponding KG document will be created in FI.3. 3. Payment Terms Payment terms are normally agreed upon by the purchasing department and the vendors. 42091003.1. By storing vendor master data centrally and sharing it throughout the organization. Data Maintenance Non-Trade/ Sundry Vendor Master The vendor master data for Sundry and Non Trade vendor are basically the same as the trade customer but without the Purchase Organisation Master Data 3. A vendor master record contains: • Vendor’s name.5. the data are entered once and inconsistencies in master data are prevented.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Term Code Customers Description Cash On delivery 5 Days Credit 7 Days Credit 14 Days Credit One Month Credit 45 Days Credit Two Month Credit 14 days 2%. Accounting Department must maintain the Accounting view for newly created vendors before the three-way matching of Invoices to purchase orders and goods receipts can be processed. Of overnext month = between 56 and 85 days/ 3% 10.doc Printed on: 10/16/2010 9:02 a10/p10Page 53 of 147 . Posting Accounts Payable Transaction 42091003.6. They will subsequently inform the Accounts Department to maintain the Accounting and Payment views. 45 days net 25. the Purchasing Department will initiate the creation and maintenance of the Basic and Purchasing views of vendor master data. 60 net 15. 3. As soon as the Basic and Purchasing views are maintained. Of next month / 3% 45 days 3%. 30 net 14 days 3%.4. The purpose of dual level creation is mainly to smoothen and fasten the Purchasing process without having to wait for the Accounting staff to update the vendor master record. purchase orders can be issued and goods receipts can be processed. 30 net 60 days net With the availability of the SAP system in the future. Of next month / 3% Vendors Term Code Description Cash On delivery 5 Days Credit 7 Days Credit 14 Days Credit One Month Credit 45 Days Credit Two Month Credit 14 days 2%. 120 net 60 days net 55 days net 30 days 3%. 30 net 14 days 5%. 30 net 14 days 3%. 31 net 105 days 3%.
Wire.Can be manually blocked .Cheque (+ Positive Pay File) 2.1 Three-Way Matching Invoice Verification Account Payable.2.2.3.Automated Payment A Invoice Verification Documents Execute Payment Run (F-110) Release Blocked Invoices ready for payment FINANCE Payment Method: 1.doc Printed on: 10/16/2010 9:02 a10/p10Page 54 of 147 .3.Invoice can be parked until further investigation completed NO Block Invoice for Payment Simulate Posting (MIRO) Price & Qty within tolerance allowed (3-way matching)? YES Save Document (MIRO) Invoice Verification Document A Figure 3. Transfer Enter/Revise Payment Criteria (F-110) Delete Payment Proposals (F-110) NO YES Create Payment Output (F-110) B Create Payment Proposals (F-110) Is Payment Proposal Correct? Figure 3.5A Automatic Outgoing Payments 42091003.Invoice auto-blocked by system .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Process Invoice Verification Purchase SAP Purchase Order SAP Goods Receipt Document Receive & Approve Vendor Invoice Finance Enter Invoice 3 Ways Matching: Match Invoice with PO Price & GR Qty .
2. the posting will be 42091003. During goods receipt. The invoices are documented and then exported to financial accounting.Automated Payment (Cont’d) B Cheque Print Checks Create Positive Pay File Review Check Register Payment Method? Transfer Create Transfer File Transmit EFT File to the Bank Receive EFT confirmation from bank Wire Create Wire File Transmit Wire File to the Bank Receive Wire confirmaton from bank Figure 3. Before the invoice is posted in the system three way matching of purchase order.doc Printed on: 10/16/2010 9:02 a10/p10Page 55 of 147 . goods receipt and invoice is done manually with the defaulted PO price and GR quantity from the system. Inventory Cr.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Account Payable . Controlling. Invoice Verification in Materials Management serves the following purposes: • It completes the materials procurement process . either as invoice cancellations or adjustments. the accounting posting will be Dr. It provides the link between the Materials Management component and the Financial Accounting. and Asset Accounting components.3.5B Automatic Outgoing Payments Invoice From Material Management Module The Invoice Verification component is part of the Materials Management (MM) system. continues with purchasing and goods receipt and ends with the invoice receipt • It allows credit memos to be processed. Goods Receipt \ Invoice Receipt (GRIR) At the time of Invoice Matching.which starts with the purchase requisition. The business scenario starts with an invoice sent from vendor.
the system will stop the user from continuing with the same reference number or allow the user to decide to continue with the same reference number. c. The main difference between these 3 scenarios is whether a debit note/credit memo is required to be issued from the system. vendors’ invoice numbers must be maintained in the Reference field at the document header. in FI. Depending on the configuration. If the inventory is valuated using a moving average price. Vendor 1 During the invoice matching. raw materials and finished goods will be valuated with the moving average price using FIFO batch valuation. Vendor 1 Like the invoices related to Materials Management. the vendors’ invoice number should be placed in the invoice document’s Reference field. A return note will be given to the accounts department to clear against the subsequent payment when it is due. b. then price variances will be posted to a purchase price variance account.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Dr. 42091003. GRIR Cr. any price variances will be posted back into material.doc Printed on: 10/16/2010 9:02 a10/p10Page 56 of 147 . the invoice received from vendors (either on spot or after the purchase) will be matched against the purchase order and goods receipts given by Purchase Department. and semi-finished goods will be valuated with a standard price in the material master. Relevant payment methods will default from the vendor master or will be maintained at the transaction line item. At AAA. If the inventory is valuated with a standard price in the material master. To prevent duplication of invoices in the system. Debit Note/Credit Memo There are three scenarios of goods returned to vendors: a. No purchase order is required during the posting process and the account posting is as follows: Dr. The system will check this field for any duplication from other vendor invoice and an error message will appear noting a duplication has occurred. Returned and pending the delivery for replacement Returned before invoice verification and cancelled the replacement Returned after invoice verification and cancelled the replacement All purchasing returns will be done through “return to vendor” in Material Management module. Expenses / Balance Sheet account Cr. Incoming Invoice From FI-AP Module Non-Purchase Order Invoices can be posted to the system by the invoice entry function provided in Account Payable.
debit notes are only required for scenario C where the invoices were already billed at order quantity above the actual quantity received.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX As in normal circumstances.5 0.0 0.0 0. users will have to manually choose the tax rate. A/P.0 7.0 0.0 0.0 7.0 0.0 6. GST Exempt from input tax Input tax 42091003.0 7.doc Printed on: 10/16/2010 9:02 a10/p10Page 57 of 147 . Input Tax / Input VAT / Use Tax The input tax will generally be shown in the Material Management module however for invoices created in FI.0 16.0 TBD 0.0 16.0 16.0 7.0 16. 7.0 17.0 0.0 17.0 6.0 0.0 16.0 0.0 7. Branches CCUK Rates (%) 0.0 7.0 16. GST applicable Self assessment.0 0.0 6.0 CCGermany CC PeterB CCFrance CCCorp CCCanada CCKeystone SAP Input/ VAT Tax Codes V0 V1 V3 V4 V5 V0 V1 V2 E1 E2 E3 E4 E7 V0 V1 V2 E1 E2 E3 E4 E7 V0 V1 I0 I1 U0 U1 PJ IJ SJ I0 I1 Tax Code Description Exempt from input VAT Standard input VAT Delivery of goods in EU Services within the EU Subcontracting within EU Exempt from input VAT Input VAT Domestic Input VAT Acquistion Tax EU delivery of goods Acquisition Tax EU delivery of goods Acquistion Tax EU subcontracting Acquisition Tax EU subcontracting Acquisition Tax – Acquisition within EU Exempt from input VAT Input VAT Domestic Input VAT Acquistion Tax EU delivery of goods Acquisition Tax EU delivery of goods Acquistion Tax EU subcontracting Acquisition Tax EU subcontracting Acquisition Tax – Acquisition within EC Exempt from input VAT Input VAT Exempt from input tax Input tax Exempt from A/P use tax A/P use tax A/P GST Exempt.0 0.
wire transfer.0 17.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX CCHK CCWK CCSZ 0.0 U0 U1 V0 J0 J1 J0 J1 Exempt from A/P use tax A/P use tax Tax exempt Exempt from input tax Input tax Exempt from input tax Input tax Each Branch will use one G/L tax account to record tax.doc Printed on: 10/16/2010 9:02 a10/p10Page 58 of 147 .0 6. and cash payment will be maintained in the SAP system.0 0.0 0. Payment Method Code E C Description Cash Cheques Payment Medium N/A Cheque printed in-house or outhouse. and an electronic file with cheque information (‘positive-pay’ file) Comments Cash Payment The ‘positive-pay’ file will be sent to the bank to validate the printed cheques when deposited by the vendors. Outgoing (Vendor) Payment Full Payment Various payments types such as cheques. Manual Payment handed to bank (usually foreign currency payment to vendor who does not have an account with HSBC) Electronic payment files will be sent to HSBC bank via Hexagon T Teletex Transfer N/A W Electronic Funds Transfer Electronic payment file with different formats for different countries: US – ACH format All other countries need to be confirmed by users whether interface directly from SAP to 42091003.0 0. Vendor VAT numbers are set up in the vendor master record and will default into the transactions. Invoices for EU and non EU purchases will contain the vendor VAT registration number and the Reporting Unit VAT registration number for the EU tax conditions to be implemented.0 0. Further analysis of the various purchase tax applications will occur during Detailed Design. This will allow VAT reporting to meet statutory requirements.
Down Payment Down payment is posted in SAP using the Special GL Indicator (A). the system clears the open items by creating one or more offsetting entries. This is similar to the posting of LOC received from the customer. This is mainly used for the ad-hoc transaction such as payments to vendors using foreign currency. the down payment will be listed and cleared against the invoices due and only the net amount will be processed in the current process. the system will create the physical checks in addition to the summary output. During the payment process. the system will be able to generate the physical cheque. This is similar to the posting of down payment received from the customers. the LOC will be listed and cleared against the invoice. Automatic payment process starts with the auto-payment run on vendors’ invoices. For automatic payment process. During the payment process. different output will be generated by the SAP system based on the payment types. Once the total amount of selected open items equals the amount of entered line items. For down payment by cheque.doc Printed on: 10/16/2010 9:02 a10/p10Page 59 of 147 . by entering the document line items and then select the open items that are to be cleared. Partial and Residual Payment 42091003. which do not have a bank account with HSBC. Letter of Credit Letter of Credit (LOC) is posted in the SAP using the Special GL indicator (L). For manual payment. For wire transfer the system will generate only the payment summary with an electronic file used to send to bank while for cheques payment. System will propose the vendors’ transactions that are due for payment and it can be edited before the payment is posted by the system.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Bank is needed Payments are done either automatically or manually. posting with clearing concept will be used.
doc Printed on: 10/16/2010 9:02 a10/p10Page 60 of 147 . users can define the tolerance limit for system to accept any payment difference. 42091003. The tolerance will be based on the lesser of amount or percentage rate.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX In SAP.
Residual payment will clear the original invoice and create a new line item and document with the unpaid amount to replace the original invoice. Blocked Invoices In general SAP allows manual blocking of invoices and payments. Partial payment will keep the original invoice line item open until the full amount has been cleared. Processing Accounts Payable Period 42091003. 3.4.8. Specific reports can be retrieved from the SAP to monitor blocked invoices. The difference between the Partial payment and Residual Payment are as follows: a. the partial payment function will be more appropriate to use at AAA Bbb.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Payment Difference for Vendor / Customer Branch UK Germany Keystone Corp HK WK SZ France Currency GBP EUR USD USD HKD RMB RMB EUR Based on Local Currency Amount Percentage Gain Loss Gain Loss 5 5 1 5 5 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 SAP does provide the flexibility in accepting any part payment in 2 methods. mean while a new line item will be created for the paid amount. Both functions are available in the current system.doc Printed on: 10/16/2010 9:02 a10/p10Page 61 of 147 . Partial Payment and Residual Payment. Currently. b. the decision on which function to use depends on how the user prefers to see the line item in the customer records.7.4. users can select specific blocking reasons. 3. However.
A common cross-company code number links individual documents together. Intercom pany Invoice/ Paym ent .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Month End Open Item Revaluation Please refer to AR Month End Open Item Revaluation under Section 3. Line Item 2 Post FI D ocum ent FI docum + ent C ross C pany om docum ent generated EN D Figure 3. 42091003. Expense / Balance Sheet account for Company One CR.Create non-trade Invoice Approved Intercom pany Transaction C reate G L Posting (Enter H eader D etail) Enter Transaction D etails in C 1 o. Intercompany AP / AR (FINANCE ONLY) Several companies are involved in an intercompany transaction.doc Printed on: 10/16/2010 9:02 a10/p10Page 62 of 147 . Intercompany posting in Logistics will be posted in the system automatically.4 Intercompany Transactions Company One Dr. The system will post a separate document with its own document number in each of the company codes. Expenses / Balance Sheet account for Company Two Each branch will have different general accounts for AP and AR to separately identify there debits and credits.5.7. Intercompany AP Company Two DR. The system generates line items automatically (receivables and payables arising between company codes) in order to balance the debits and credits in each document. This transaction will only be finance related. Intercompany AR CR. 3. Line Item 1 FINANCE R eview autogenerated Intercom pany Payables/ R eceivables Sim ulate Posting Enter Transaction D etails in C 2 o.3.
3.5. 2. the Fixed Asset system has the following limitations: • The Fixed Asset system is designed to manage the existing assets that have already been purchased. 3. Asset Accounting The Asset Accounting System (FI-AA) in SAP R/3 is used for managing and supervising all the existing fixed assets in your enterprise. Management of possible future assets or capital investment cannot be done in fixed asset and is supposed to be done in Investment Management (IM) module Fixed Asset system generally does not provide linkage with a material or product in Material Management (MM).doc Printed on: 10/16/2010 9:02 a10/p10Page 63 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX The process for posting intercompany transactions is as follows: 1. Then an email is sent to the other branch to view the document. The Fixed Asset system does not support flexible “what if” scenario analysis. However. Note: From FICO Prototype.1. AAA Corporate should impose future policy for Intercompany Posting in SAP.1.6. On approval of the transaction. it is agreed that there should be a synchronised triggering party (AAA subsidiary) in recording the intercompany transaction in SAP. To link a fixed asset record to a material master. It also serves as a subsidiary ledger to the FI General Ledger. The company receiving the revenue will be the one responsible to book into system using the US dollar as base currency. Chart of Depreciation: A Charts of Depreciation is the highest level organization structure in SAP R/3 Asset Accounting which holds all the asset accounting relevant settings such as Depreciation Areas and the depreciation methods 42091003. The initial entry is parked. proving detailed information on the fixed assets transactions. The party who receive the expense only need to review the document after the posting. The rational should be: 'Recipient of Revenue should perform the posting in SAP'. 3. The park function when creating the journal entries will be used if supervisors need to check the entries are correct before posting. Such party should be the 'Recipient of Revenue and should perform the posting in SAP'. Changes in depreciation method or useful life is available but are generally referring to actual changes instead of changes for simulation only • • 3.6. a work around solution is proposed by using a PP master data called Production Resource Tool (PRT). according to the requirements in AAA. Authorisation Limited access will be given to users to restrict any mistake incurred. the parked document is then posted to the g/l in both companies.
please refer to the FI General Ledger section). only the Depreciation Area 01 (Book Depreciation) will be integrated to the General Ledger in FI for postings. Depreciation Area 15 is the depreciation calculation for Tax purpose if the tax depreciation rule is different from the book rule. 4100 4200 5200* 3100 3300 3400 *Remarks : It is confirmed that no fixed asset management is needed in company code 5300 (CCWK) as all the fixed assets in CCWK are being booked in CCHK’s Company Code. company codes in AAA Group could have up to two more Depreciations Areas for depreciation and net book value calculation for other purposes. The depreciation terms and values of expected life necessary for calculating a fixed asset book value and depreciation are all managed in depreciation area level. an additional Group Currency Depreciation Area has to be defined to provide the depreciation amount in group currency amount. The depreciation areas that will be applied to each Chart of Depreciation Areas and Company Codes are shown below: Chart of Depreciation ZHK Depreciation areas 01 15 30 Depreciation area description Book depreciation Tax depreciation Group currency depreciation Posting to G/L Yes No No 42091003. As it is generally country specific. Depreciation area code is 2-digit numeric code ranging from 01-99. One single Chart of Depreciation could have more than one Depreciation Area. The definition of the group currency depreciation area is actually a system requirement in a company code of which the Parallel Ledger Currency has been activated in FI (for details of the Parallel Ledger Currency. normally the coding of the Chart of Depreciation will include the country codes. Each chart of depreciation also includes the tax book.2.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX that are specific to a country. Depreciation Area: A Depreciation Area represents an independent depreciation book in which different values can be calculated in parallel for each fixed asset for different purposes. 3. For company codes that are having a ledger book currency other than USD. In each Chart of Depreciation in AAA. Chart of Depreciation is usually country specific and more than one Company Codes could be assigned to a single Chart of Depreciation. Chart of Depreciation is a 3-character code that supports alpha-numeric format. Other than the book depreciation. Since different companies in the same country are subject to the same legal regulation of fix assets depreciation. The Chart of Depreciation in the to-be SAP R/3 System in AAA will be : Chart of Depreciation ZHK ZUS ZCA ZCN ZUK ZDE ZFR Chart of Depreciation Descriptions : HK Chart of Depreciation for AAA US Chart of Depreciation for AAA Canada Chart of Depreciation for AAA China Chart of Depreciation for AAA UK Chart of Depreciation for AAA German Chart of Depreciation for AAA France Chart of Depreciation for AAA Company code(s) assigned 5100 1000.doc Printed on: 10/16/2010 9:02 a10/p10Page 64 of 147 .6.
However. In SAP R/3.3. With externally assigned number. asset classes that are not applicable to a certain Chart of Depreciation could be deactivated in that Chart of Depreciation individually such that the company codes assigned to that Chart of Depreciation will not wrongly use the unwanted Asset Classes. In the current to-be chart of accounts proposal all the fixed asset related balance sheet accounts are ranging from 20010000 to 20059999 with differences only in the last 5-digit. The asset master record number is controlled by the asset number ranges.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX ZUS ZCA ZCN ZUK ZDE ZFR 01 15 30 01 15 30 01 15 30 01 15 30 01 15 30 01 15 30 Book depreciation Tax depreciation Group currency depreciation Book depreciation Tax depreciation Group currency depreciation Book depreciation Tax depreciation Group currency depreciation Book depreciation Tax depreciation Group currency depreciation Book depreciation Tax depreciation Group currency depreciation Book depreciation Tax depreciation Group currency depreciation Yes No No Yes No No Yes No No Yes No No Yes No No Yes No No 3. The number could be externally assigned or determined internally by the system during the creation of an asset master record. Since the assets are generally classified according to the balance sheet G/L account differentiation of the fixed assets. Addition of new asset class is actually a configuration process which is not supposed to be done by the users. The asset class catalog is relevant in all company codes in a client. So it is suggested that the asset class is defined as a 5-digit code with the same coding format of the last 5 digits of the acquisition cost balance sheet account in the G/L. An asset class could be defined as an 8-character code or less in SAP R/3 system.6. there will be a knowledge transfer to the AAA IT supporting team such that they will be able to support that after go-live.doc Printed on: 10/16/2010 9:02 a10/p10Page 65 of 147 .4. 42091003. Asset Number Range: Each asset master record will have a unique master record number for identification in Fixed Asset Accounting. the asset number could be a maximum of 10-character code. 3.6. the best way of defining the asset class coding is to follow the same or similar coding logic of the fix asset G/L accounts. That means different companies are sharing the same set of Asset Classes in the system. However. Asset Class: Asset Classes are used to classify fixed assets into different categories according to their natures and G/L account postings.
Below is a summary of depreciation methods that will be used in different companies within the AAA Group : Company 5100 (HK) Asset Classes Automobile/Truck Expected useful life (month) 80 Book depreciation Straight line Tax depreciation 10% / 30% / 60% pool (TBD) 42091003. In AAA Group. the number should be pure numeric and is being generated sequentially from a pre-defined number range series. it is proposed that the number is a pure numeric 10-digit code.6.5.doc Printed on: 10/16/2010 9:02 a10/p10Page 66 of 147 . Range (To) 101 9999999 102 9999999 103 9999999 104 9999999 105 9999999 106 9999999 107 9999999 108 9999999 109 9999999 111 9999999 112 9999999 113 9999999 114 9999999 115 9999999 201 9999999 401 9999999 3. an internal numbering system is proposed for asset master record. Different asset classes could have different number ranges such that the asset number itself could serve as a means for asset class identification. Number ranges in Asset Accounting could be asset class dependent. The first 3 digits representing the asset class definition and the remaining 7 digits are sequential running numbers.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX the format of the asset number could be alpha-numeric. Range (From) 101 0000000 102 0000000 103 0000000 104 0000000 105 0000000 106 0000000 107 0000000 108 0000000 109 0000000 111 0000000 112 0000000 113 0000000 114 0000000 115 0000000 201 0000000 401 0000000 Asset No. This setting is inline with the current numbering system of asset records in the legacy system of AAA. The asset classes and the corresponding number ranges are shown in the following table: Asset Class 10010 10020 10030 10040 10050 10060 10070 10080 10090 10110 10120 10130 10140 10150 20010 40010 Asset Class Descriptions Automobile/Truck Plant & Machinery Computer Hardware Computer Software Furniture & Fixture Fax and Copy Machine Office Equipment Leasehold Improvement Warehouse Equipment Building Mould & Tools Building Improvements Land Usage Right Capitalised R&D Cost After AFS (will be amortized) Asset Under Construction – Capitalizable Development Cost Asset Under Construction – Construction in Progress Asset No. About the asset number format. This is also the best practice proposed by SAP because this can minimize the numbering maintenance effort and can avoid duplication of the asset number. Asset Depreciation Methods: Standard SAP system provides a lot of different standard depreciation methods that can fulfill different legal requirements in different countries. But for internally assigned number.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Plant & Machinery Computer Hardware Computer Software Furniture & Fixture Fax and Copy Machine Office Equipment Leasehold Improvement Warehouse Equipment Building Mould & Tools Building Improvements Land Usage Right Capitalised R&D Cost After AFS (will be amortized) Asset Under Construction – Capitalizable Development Cost Asset Under Construction – Construction in Progress Company 1000 and 4100 (US) Asset Classes Automobile/Truck Computer Hardware Computer Software Furniture & Fixture Fax and Copy Machine Leasehold Improvement Company 4200 (Canada) Asset Classes Automobile/Truck 120 36 36 80 80 80 36 80 360 48 60 522 24 N/A N/A Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line N/A N/A Full allowance Full allowance Full allowance 10% / 30% / 60% pool (To be determined) 10% / 30% / 60% pool (To be determined) 10% / 30% / 60% pool (To be determined) 10% / 30% / 60% pool (To be determined) 10% / 30% / 60% pool (To be determined) Building allowance 10% / 30% / 60% pool (To be determined) 10% / 30% / 60% pool (To be determined) (To be determined) N/A N/A N/A Expected useful life (month) To be determined To be determined 36 24 84 397.doc Printed on: 10/16/2010 9:02 a10/p10Page 67 of 147 .2 or 480 Book depreciation Straight line Straight line Straight line Straight line Straight line Straight line Tax depreciation 5 Yr DDB HY Convention 3 Yr DDB HY Convention 3 Yr DDB HY Convention 5 Yr DDB HY Convention 3 Yr DDB HY Convention To be determined Expected useful life (month) 12 Book depreciation Straight line Tax depreciation Double declining ½ year method 42091003.
doc Printed on: 10/16/2010 9:02 a10/p10Page 68 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Computer Hardware Computer Software Furniture & Fixture Fax and Copy Machine Leasehold Improvement 12 12 12 12 12 Straight line Straight line Straight line Straight line Straight line Double declining ½ year method Double declining ½ year method Double declining ½ year method Double declining ½ year method Double declining ½ year method Company 5300 (CCSZ) Asset Classes Automobile/Truck Plant & Machinery Computer Hardware Computer Software Furniture & Fixture Expected useful life (month) 60 120 60 60 60 Book depreciation Straight line Straight line Straight line Straight line Straight line Tax depreciation Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value 42091003.
doc Printed on: 10/16/2010 9:02 a10/p10Page 69 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Fax and Copy Machine Office Equipment Leasehold Improvement Warehouse Equipment Building Mould & Tools Building Improvements 60 60 60 60 240 60 240 Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value Straight line with 10% scrap value Company 3100 (UK) Asset Classes Computer Hardware Furniture & Fixture Building Expected useful life (month) 36 60 200 Book depreciation Straight line Straight line Straight line Tax depreciation Same as book Same as book Same as book Company 3300 (Germany) Asset Classes Computer Hardware Furniture & Fixture Office Equipment Goodwill Company 3400 (France) Asset Classes Computer Hardware Furniture & Fixture Office Equipment Expected useful life (month) 36 120 Between 36 & 60 180 Book depreciation Straight line Straight line Straight line Straight line Tax depreciation Same as book Same as book Same as book Same as book Expected useful life (month) 36 120 60 Book depreciation Straight line Straight line Straight line Tax depreciation Same as book Same as book Same as book 42091003.
The asset master record in AAA is structured as follows: Tag Pages on Asset Master Record General Data 1.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. the first transaction to be done for a fixed asset is the first acquisition posting. original manufacturer and the vendor you purchase from. Contains general information of the asset such as descriptions. The same asset may be assigned to different cost centers in different validity periods of time. Depreciation keys and the expected useful life could Time-dependent Allocation Origin Depreciation areas 42091003. To achieve this. In AAA. if an asset originally is belongs to department 1.doc Printed on: 10/16/2010 9:02 a10/p10Page 70 of 147 .6. you may also change it to department 2 starting from next fiscal year ) Different evaluation groups available for further classification and grouping of assets for reporting and analysis purposes For storage of origin data such as country of origin. Normally. Contains posting information such as the date of capitalization posting and the date of retirement posting. Asset Accounting in SAP R/3 is integrated with the MM module in such a way that the purchase (i. Asset Master Maintenance: An asset master record is a record for an individual asset that contains all the relevant information and control parameters for an asset in Asset Accounting. For example. quantity. asset acquisition will be posted by the invoice verification in the MM modules. (Origin data is descriptive information only where you can store more information about the asset such as country of origin. In this case. the approval process will be off-line. Purchases are also possible without a purchase order. The asset master record will be used as an “account assignment” in the asset purchase. serial number and inventory number which could be printed out from on a barcode label 2. expected useful life and the depreciation start date. These dates are updated by the system automatically by the relevant transaction you posted in the system Time-dependent allocation of cost center of which the depreciation expense will post to. the acquisition posting) could be posted via goods receipt or invoice receipt in MM. (The assignment of a cost center into a fixed asset record has a validity period. An asset master record has to be created before any transaction of an asset could be done. an asset mater record has to be created before the creation of the asset purchase order in MM.e. manufacturer name etc) Stores all the data relevant for the asset valuation and depreciation calculation in different books (depreciation areas) such as depreciation keys.6.
There is no standard report to print out the tooling usage and a customized report will be developed to meet these requirements. To full-fill the requirement.doc Printed on: 10/16/2010 9:02 a10/p10Page 71 of 147 . we can have information about the usage of the tooling such as usage frequency.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX be defaulted by the system according to individual asset classes. the PRT record will also be copied into the production order. Later when production order is created for the component. date of the last usage etc for reporting. From the backflushing transactions posted into the production order. The PRT will be assigned to the routing of the component. a work around solution is proposed by using a PP master data called Production Resource Tool (PRT) Producti on Order Routin g Asset PRT Master Asset Routin g PRT • • • • A user field in the asset master record will be used to store the PRT number which is being treated as a representation of the tooling asset. The depreciation start date will be determined and updated by the system according to the posting date of the first acquisition posting Linkage Between Asset and Component by PRT: AAA has a requirement to link the fixed asset of mould and tool with the component it produces. However. 42091003. there is no direct system linkage between a fixed asset mater record and a material master record in MM.
please refer to the FI General Ledger section) Asset Acquisition 42091003. As e Ac o n g. this will be used as the acquisition posting from MM AA Asset Posting Used in all asset other transactions AF Dep. (Note : For details of document types and the corresponding FI document number ranges.8 Asset Transactions Asset Transactions Document Types : Description Invoice – gross Standard document types available for the asset transactions are : Document type RE Usage General document type for invoice verification.5. In asset accounting.7.6. Additional document types could also be added for asset retirements. Co p n ta g ma y to Com ny.doc Printed on: 10/16/2010 9:02 a10/p10Page 72 of 147 .As e Life y leTra s c n s t c u tin st cc n a tio Asset Transactions In rc m a y As e Life y le te o p n st cc Defi ne Transf er De il . Posting Used in depreciation posting The above three document types are the most general ones available from the standard system. Asse pa t D ta ) e ils (ABT1 ) N S v D c mn ae ou et (ABT1 N) P sms g o t is in As e st Tra s c n n a tio s N O As e Re mn s t tire e t FINANCE D fin As e e e st Re mn tire e t S v D c mn ae ou et Mo th dAs e n -En st Tra s cio s nat n C m le d o p te ? C n Re As e a tire s t A) W Re e u (F-9 ) ith v n e 2 B)W o t Re e u ith u v n e C s ra p g(ABVAN) )By c p in Ex c teD p c tio e u e re ia n Te t Ru s n (AFAB) YES D p y Lo is la g (AFBP) S v D c mn ae ou et (AFAB) Ene D p c tio t r e re ia n D ta e il (AFAB) Figure 3.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.(e . transfer posting or disposal.
the posting of acquisition of fix asset is being posted in MM via a transaction called Invoice Verification (for details of the transactions. Book. please refer to the FI A/P section). an asset accounting document will also be generated to store the detailed information of the transaction in asset accounting. the Asset Accounting System will be able to show the current net book value and the depreciation projection (projection of future depreciation amount based on the current depreciation method and life) of that asset.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX As e Ac o nin . Fixed Asset – Acquisition Cost Cr.e. display the asset master record or call up a report called Asset Explorer.5. To check this kind of information.2. In general.doc Printed on: 10/16/2010 9:02 a10/p10Page 73 of 147 . the posting of the invoice verification for a fixed asset PO will be as follows Dr. Asset Acquisition With the integration between Asset Accounting System and the Material Management modules. Vendor (Accounts payable) After posting each asset purchase invoice in MM. Besides. The most important information available for asset value display or Asset Explorer is as follows: • • • Current net book value of each depreciation areas (i. or Group) Depreciation simulation (projection) by period and by fiscal year Actual posted depreciation amount by period 42091003. in parallel to the general ledger document.8.P s As e E t rn l Ac u it n s t c u t g o t s t xe a q is io FINANCE C aeAs e re t s t M se at r AS 1 0 As e st R q et eus Ap r v d po e PURCHASE C e t P rc ae r ae u h s O e rd r P rc aeOd r u hs r e Ap ro e ? p vd YE S G o sR c ip t o d ee t o mt hP rc a eOd r ac u h s r e N O In o eR c ip t v ic e e t o mt hP rc aeOd r ac u h s r e/ P s As e E t rn l o t s t xe a Ac u it n q is io P n in fo ed g r F r h r Ad ic ut e v e u o d c s io p n is u s n Figure 3. the posting date of the document will be copied into the asset master as the capitalization date and the depreciation start date of each depreciation area will also be determined and updated in the depreciation area data tag page Asset acquisition posting could also be done without PO from the MM module. Posting could be done in FI posting only Asset Value and Depreciation Simulation Once an acquisition is posted into an asset master record. Tax.
To provide a workaround solution for the “what if” analysis. the simulation of depreciation is only available for current assets of which real acquisitions have been posted.100. For the same asset with historical cost $1. In AAA. an asset could be disposed as a scrap. In this case.000 and accumulated depreciation of $100 is being sold to a customer at a price of $1. customer master. Accumulated depreciation Dr. Supposed an asset with historical cost $1. Information that is required to be input for this transaction is the asset being sold.000100 1. The posting date of the retirement posting will also be updated into the field “deactivation date” in the asset master as the retirement date. The system will automatically generate the required postings and deducted the net book value of the asset being sold. it is suggested that an additional depreciation area (i. the sales proceed amount and the revenue G/L account of the transaction. However such changes made in the asset master records are generally the “actual” changes which will have actual posting impact in G/L. Gain/loss of fixed asset disposal 1. depreciation book) will be added to capture the changes and provide the depreciation amount after the changes. This transaction can be posted in Asset Accounting.000 and accumulated depreciation of $100. Clearing account for asset disposal Cr.e. Revenue for asset disposal Cr. no revenue is expected and a loss will be realised in the P&L if the fixed asset being scrapped still carries a net book value Posting of asset scrapping is also a standard feature in SAP Asset Accounting. Customer account (A/R) Cr.doc Printed on: 10/16/2010 9:02 a10/p10Page 74 of 147 . the posting of the scrapping will be as follows: 42091003. Asset Disposal – Scrap without Revenue Instead of selling.1001. the posting entries will be as follows: Dr. This additional book will be defined as statistical only and no posting will be generated to the G/L Asset Disposal – Sales to a Customer Sales of an asset to a customer is one of the possible scenarios of asset disposal in AAA. Depreciation simulation for possible future assets is only available in Investment Management modules in SAP.100 1. A customer master record in SAP is needed before this transaction could be done.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX However.100 200- The system will calculated the net P&L of the transaction and post the amount into a gain/loss of fixed asset disposal account. “what if”analysis is required to provide a simulation on the depreciation changes if the depreciation method or the expected useful life is changed. Fix asset – acquisition cost Dr.
The transfer posting date will be used as the capitalization date. Fix asset – acquisition cost Dr. Asset Under Construction (AUC) Asset under construction in SAP is used to capture the expenditure paid out for assets purchased with multiple payment instalments or for expenditure of an asset being produced or constructed internally. 2.000100 900 Asset Transfer within a Company – Reclassification The net book value of an existing asset master record could be transferred to another asset within the same company. the posting of the intracompany transfer posting will be follows: Cr. Fix asset – acquisition cost (new asset) Cr.1. Accumulated depreciation (old asset) Dr. This may be necessary to execute the change of the remaining useful life of an asset but still spread the net book value evenly throughout the remaining life without allowing the system to catch up the postings of the missing or extra depreciation of the past periods For an asset with historical cost $1.7. Gain/loss of fixed asset disposal 1. The old and the new asset will be linked together by the settlement posting document In AAA. For the new receiving asset. the transactions that could be associated with an asset under construction record could be exactly the same as other normal assets described in previous sections. The only difference is that all the costs being posted into an asset under 42091003. the depreciation of the amount paid out or the cost incurred during the construction phase is normally started after the final payment is made or the asset construction is completed. The transaction could be used in the following scenarios: • Reclassify an existing asset to a new class or to correct an error • Transfer an asset to a new one with the same class. an acquisition could be posted to an asset under construction from purchase order.doc Printed on: 10/16/2010 9:02 a10/p10Page 75 of 147 .000 and accumulated depreciation of $100. To capture the capitalizable portion of the R&D development cost To capture the expenditure incurred in building construction in progress 3. Accumulated depreciation Cr.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Cr. For example.6. the transfer will be the same as if it is being acquired. Accumulated depreciation (new asset) 1.000100 1. asset under construction is used in the following scenarios: 1.1. Fix asset – acquisition cost (old asset) Dr. In both cases.000 100- The old asset being transferred will become a retired asset and the transfer posting date will be updated as the retirement date in the asset master record. Transaction with Asset Under Construction Normally.
2.e. Settlement of AUC costs could be done in line items level where you define the settlement receivers (i. In the case of R&D development. The month end batch job is processed in the background. the real asset number) in each line items level. Month End Processing – Depreciation Run The depreciation calculation and posting of each asset is done periodically as a batch job during month end process. Particularly. the costs incurred in the development will still be posted into an Internal Order (which is a cost object in the CO module) as P&L items. The settlement of AUC actually is done on an ad hoc basis or at any time where necessary. the depreciation methods. useful life. Depreciation expense Cr. depreciation start date etc) specified in each of the asset master and post the result to the general ledger.6. there is no format month end closing procedure required in asset accounting.1. for the case of R&D development cost in AAA.doc Printed on: 10/16/2010 9:02 a10/p10Page 76 of 147 .7. Virtually speaking. Alternatively. a settlement should be done to that AUC record in order to settle the amount captured in the AUC to a real asset master record which carries the required depreciation terms. Unlike the settlement process for CO cost objects which is normally a periodic (usually month end) processing. settlement of AUC is not part of a month end processing that has to be done every month. the settlement of AUC will not be done until the Available For Shipment (AFS) date is reached.e. costs could also be posted into an AUC by means of settlement of other CO objects. The general posting will be as follows: Dr. The depreciation run will be the only regular month end job to be done. The capitalizable portion of the costs will be capitalized into an AUC (which is a balance sheet item) by a settlement process in Internal Order. Other than the normal acquisition postings. the whole total cost within an AUC record could settled to a single receiver asset or distributed to several assets by a percentage ratio.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX construction will not be depreciated because the asset master record of an AUC will not contain any depreciation relevant settings. 3. The system will calculate the depreciation amount based on the depreciation terms (i. Accumulated depreciation 42091003. Settlement of AUC When the asset under construction has come to a stage where depreciation should start.
Note that the above posting to G/L will be done in a summary level by G/L accounts and cost center levels because the depreciation expense has to be charged to cost center in CO. However, the detailed depreciation amount of each asset will also be stored in Asset Accounting such that each unique asset master record will also have its unique posted depreciation amount. Besides, after each depreciation run, the system will issue a report which list out the depreciation posting amount of each individual assets as a record. This is advised that this report should be kept as an additional audit trail.
Year End Processing
At the end of each fiscal year, you are required to do a year end processing in Fixed Asset Accounting. The year end closing is (i.e. fiscal year change) is just to open the next fiscal year and at the same time close the previous fiscal year in Asset Accounting. SAP provides a programme with easy user interface to do the year end closing job. It is advised that the job should be done in a background mode and the system will convert all the asset master records from the previous fiscal year to the next year.
Cost Center Accounting
Cost Center Accounting provides the mechanism to collect and report operating activity within organizational units of a company. At AAA, these units are represented by departments within each Reporting Unit. SAP cost centers have been arranged in a hierarchy to reflect AAA’s department structure that facilitates internal reporting and accountability. Each cost center generally represents a department or unit that is the responsibility of a manager. Managers can then monitor the performance of their departments by accessing reports on their cost centers. Costs in a cost center can be easily allocated to other cost centers or different cost units within the system. Cost allocations are implemented though allocation cycles where the sending and receiving cost units, and the allocation basis for cost distribution are user defined The diagram below shows how financial postings get booked to a cost center through a transaction in the Financial module. When the expense is posted, a cost center in the Controlling module may be included as the department responsible for incurring the expense.
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GL/FI Pos g tin FI Doc m n u et He d r ae FI Pos gO ly tin n Ba n S e t It m la ce h e e FI d m n Lin Ite s ocu e t e m Ine raionto tg t CO (Con trollin O ly g n
En r te He d r ae De il ta
- Co p n Co e ma y d - Po tin / D cu e t D te s g o mn a - Re re ce n . fe n o - Cur n / r te r e cy a
Ene FI Lin It m tr e e
En r te - G/L Accou t n - Am n ou t - Te (if n e e ) xt edd
En r a ot e te n h r Lin ite e m
END Is it aB/S ite ? m YES P &L It m e N O A. O rh a Cos ve e d t B. Cos Re u gRe n e t d cin ve u C. O e tin S le p ra g a D. S le Re u a s d ction
Re u d q ire Cos Ce te t n r O r Re l In rn l a te a O e rd r CO Profit PA Sg et e mn
O tion l p a S tis l ta tica In rn l te a O e rd r
En r te - G/L Accou t n - Am n ou t - Te (if n e e ) xt edd
W ichCO ob ct h je to a s n s ig ?
Figuring 3.6 Postings in FI and CO
The main cost center business transactions are: • • • • Primary cost postings – these are postings that occur in CO when expense accounts are posted to the G/L in the FI module Actual cost allocations – these are the distribution of postings from one cost center (the sender) to another or a group of cost centers (the receiver). The distribution could be to other receiver objects besides cost centers (such as an internal order) Cost center planning (Budgeting) - this is the process of entering budget figures for department expenses Plan cost allocations (distribution / assessment) - this is the same as the actual cost allocation but the figures being distributed are the budget figures rather than the actual postings
Cost Center Numbering Convention
Cost Center Structure
The first 2 digits represent the first two digits of Company code, e.g. 51 for 51-79100 CCHK with company code 5100 The next digit represent the 5 major functional grouping which are 51-79100 Administration , Engineering, being 7
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Sales, being 6 Supply Chain being 3 , Production being 4 The next 2 digits represent the sub groupings of the functional groups of above The last 2 digits represent a sequential number Cost Center Grouping Number Convection The first 4 digits represent the Company Code The next digit represent the 5 major functional grouping which are Administration being 7 Engineering, being 6 Sales being 5 Supply Chain being 3 Production being 4 The next 2 digits represent the sub groupings of the functional groups of above
In addition the European cost centers will be added after the Design Document stage. These cost centers will be included in France, UK and Germany’s Administration, Sales and Supply Chain functional groups
Statistical Key Figures
Statistical key figures serve as a basis for internal allocations and as references in the key figure analysis framework. Statistical key figures can be used for internal cost allocations, and can be defined as either fixed values or totals values. There are two major types of allocation in SAP: • • Distribution Assessment
Distribution is the process of cost allocation used to allocate primary costs of cost center using the original primary cost elements. In this method, the costs being allocated will be retained into the original cost elements. On the other hand allocation by assessment could be applied to both primary and secondary costs using a secondary assessment cost element which is different from the original cost elements. In this case, the costs being allocated will be posted to a secondary assessment cost element. In AAA Bbb, the statistical key figures are defined for assessment purpose: The statistical key figures used are: • Employees • Man-hours
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e. This enables users to amend specific line items from CO documents and provide management with a clear audit trail when reviewing adjusted CO postings.7.3.4. Overhead Allocation Costs are initially posted to a 'common' (or shared) cost center during the month. Allocations of costs to the respective cost centers are done based on i.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX • • Floor space Quantity by Finish Goods 3.doc Printed on: 10/16/2010 9:02 a10/p10Page 80 of 147 . transaction volumes. Period End-Closing Period end closing process is a monthly activity in CO and it refers to the following areas: • Execution of allocation cycles to apportion cost from common or shared cost centers to final cost centers • Generation of monthly reports The following tasks have to be executed at every period end closing: • • Ensure postings are completed from sub modules and sub modules have closed Execute all the active allocation cycles 42091003. and at the month end these costs are allocated to respective cost centers based on the allocation basis.7.7. percentage. percentage etc) Sender primary cost element Receiving secondary cost element (if use assessment allocation method) 3. 3. AAA will re-assign shared costs mainly though allocation cycles. Costs can be allocated via reposting or allocation cycle. etc.5. Re-posting of cost Incorrect posting of costs and revenues can be corrected with the re-posting function in cost center accounting. head-counts. • • • • • The following are defined in the allocation cycle: Sender cost center Receiving cost center Allocation basis (floor space.
The structure and function of an order. Number assignment takes place centrally for all orders of this order type. The order type determines the following: The Order Category Orders have different purposes in the R/3 System. internal orders will be used to keep track of the legal costs associated to which law firm and cases for AAA Bbb Corporation.doc Printed on: 10/16/2010 9:02 a10/p10Page 81 of 147 . project or activity. at month-end. as well as the transactions you use to process it. Internal Order Internal orders are used to monitor overhead costs incurred for a specific event. It can be used for a restricted period when executing a job. This is generally on the periodic basis. monitor short term or long term overhead expenses.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX • • • Check key figures to sub modules (i. Internal Orders are company code dependent.e. 3. Commitments Management 42091003. Overhead cost orders will be used to collect actual costs incurred. Internal order groups can be created for cross-company reporting. Order Master Data Creation For AAA Bbb HK internal orders will be used to keep track of Project costs.8. Numbering Assignment You must assign each order type to a number range. all depend on the order category. for example they can be used to monitor R&D expenses that can be settled to fixed.1. total Cost Center Accounting figures to agree to total G/L expense accounts etc) Generate monthly reports Lock current posting period for controlling 3. In addition.8. The overhead costs assigned to the overhead cost orders are settled (in full) as costs to other cost collectors. This allows costs to be monitored continuously. or for long-term monitoring of portions of overhead costs. Control Indicator This allows you to change the below control indicator centrally for all orders of this order type.
More order types are to be defined later.8.2. Certain expenses will be capitalized while others will be expensed off. the system will not allow any posting into an order that has not released yet In additions to R&D expenditure and legal expenses. you can change the indicator in the order master data. When required. Order Actual Transaction Posting Currently. which business transactions are allowed on the order. you can activate integrated planning as a default value. For example.doc Printed on: 10/16/2010 9:02 a10/p10Page 82 of 147 . 42091003. For example when entering into contract such as a Purchase Order. 3. you must specify whether you want to use commitments management (contractual or scheduled commitment that is not yet reflected in Financial Accounting but will lead to actual expenditures in the future). travelling expense. at AAA. More order types could be defined in the detailed design phase. This allows scheduled costs that have not impacted financial accounting to be shown to user. the commitment cost of this PO can be reflected in the internal order and this amount will be reduced every time a goods receipt is done based on this PO. If service PO is used then commitment management can be applied to this as well. The status controls. 2. Status Management An order can pass through many statuses. trade show etc. Legal Cost by Law Firm and Case These are legal expenses which management wishes to capture separately. Each order will represent the Law firm and specific Cases the costs are associated to. for example. there are some other possible order types for other types of expenditure such as expatriate expense.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX For each order type. two transactions types have been identified for Orders: 1. Integrated Planning If you want to update planned activity input directly on the sending cost center. Costs Associated to Projects These are project expenses which management wishes to capture separately from other expenses.
R & e g o ts n te a rd r DS e a o c n ri Month End Process R &D Go s R c i p o d e e t/ Inoc vi e R c i p (wth ee t i I /Oa i g e ) ss n d FI N CE AN E pn e xes V l u P ste a e o d to I n rn l te a O e rd r F Dc m t I oue n P ce si n ro s g (wth I /O i a ige) ss n d N O E te A C n m r n r U ub e a re e v r i n s ci e se e e t ru e ttl m n l Mn E d o th n S ttl e e t e m n to A C U A r fte fi rst Sipet h m n YS E S ttl e e t e m n to a re l a A se s ts Figure 3. For Internal Order that captures Project expenses. S ttl i n C s i n a I n rn l O e -. there is no settlement needed.7.3. In order to help the users to separate the total project costs into the portion to be capitalized and the portion to be expensed more easily. Once the project is completed and all costs have been settled to AUC.3 Settlement in an Internal Order For Internal Orders that capture Legal Costs by law firms and case. the expense accounts) will be grouped into these two categories by means of a parameter called “source structure assignment” used in the settlement rule of the internal order. 42091003. there will be a need to settle the capitalized expenses part to an Asset Under Construction (AUC) on a monthly basis.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.e. When the settlement rule is defined. Further settlement will be needed to a Fixed Asset (with an intangible asset class) in order to amortize the cost over a 24 month period using straight line method.doc Printed on: 10/16/2010 9:02 a10/p10Page 83 of 147 . and the expenses portion will be settled to a P&L account or cost object.8. the costs items (i. the status of the internal order will be closed and no further posting can be made. the user can assign some costs to be settled to a cost center. and other costs that are tagged as capitalized to be settled to an Asset Under Construction (AUC).
labour and production overhead rates) are planned at each production department cost centers and each of the production department cost centers will be assigned to a work center in PP such that the activity prices could be assigned to work center for labour and overhead cost calculation. Logistics Master data Material master (MRP views) Material master (Accounting view) Material master (Costing view) Routing master BOM master Purchasing info record of raw material purchase Purchasing info record of subcontracting Major Usage Logistics Master Data The logistics master data required for product costing and the usage is summarized as follows: Provide data of procurement source (such as internal production.9. activity types are generally referring to the 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 84 of 147 . origin group etc. Activity Types Activity types classify the activities produced in the cost centers within a controlling area. (will be discussed in more details in later sections) Provide standard production time (SPT) that is relevant for labour and production overhead calculation Provide list of raw materials and their usage quantities for the production of the product Provide purchasing price of raw materials for raw material cost calculation when the inventory price is not yet available in the material master Provide subcontracting labour cost for subcontracting materials (For detailed definitions and function of the above master data. Product Costing 3. CO Master Data Cost Center A cost center is used to represent a department in AAA.1. Activity Type prices (i.2.9.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. The cost centers of the production departments will be used in product costing. please refer to the design documentation of the relevant logistics modules) 3.e. external procurement or subcontracting) for product cost calculation Provide financial data such as inventory price of raw materials and the consumption G/L account (through account determination valuation class) Provide costing calculation control parameters such as overhead group.9. For production related cost centers.
we can calculate activity prices by cost budgeting of activity-dependent cost items. The origin groups defined in AAA are : Origin group code B1 B2 B3 B4 B5 P1 S1 Description Electronic parts in bulk bbb Plastics parts in bulk bbb Metal parts in bulk bbb Lens parts in bulk bbb Other parts in bulk bbb Raw materials for packaging Raw materials for silkscreen 42091003. In AAA. Using the activity types. The production related activity types in AAA are listed below : Activity type CAMLAB CAMAOH CAMLOH CAMOH PAKLAB PAKAOH PAKLOH PAKOH SKCLAB SKCAOH SKCLOH SKCOH Description Labour cost for bulk bbb Assembly labour overhead for bulk bbb Component labour overhead for bulk bbb Activity unit Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Hour (H) Other overhead for bulk bbb Labour cost for packaging Assembly labour overhead for packaging Component labour overhead for packaging Other overhead for packaging Labour cost for silkscreen Assembly labour overhead for silkscreen Component labour overhead for silkscreen Other overhead for silkscreen Origin Groups Origin groups is a parameter in the costing view of a material master. An appropriate value of the origin group must be assigned to the Origin Group field in the costing view of the material master. If offers an additional dimension to sub-divide or classify raw materials into different categories for reporting and analysis purposes in product costing.doc Printed on: 10/16/2010 9:02 a10/p10Page 85 of 147 . The activity prices will be used to calculate the production labour and overhead costs to be absorbed into inventory of the products produced. the origin groups will be defined as a more detailed nature classification of raw materials and components such that the material costs could be further sub-divided into different natures for analysis.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX production activities.
You could have a flexibility to define different percentage rates with different overhead keys. The overhead group is assumed to be entered into the material master for finished goods products only because the royalty will only be calculated on finished goods level. number the overhead group required for royalty calculation could be expanded depending on the detailed requirements Percentage Overhead Keys A percentage overhead key is a key where you can specify the conditions in percentage rates for overhead allocation to the product cost of a product. The two overhead groups to be defined are: Overhead group ROY0 ROY1 Description No production royalty Production royalty calculation required Different overhead groups represent different products groups which are subject to different charge rate of royalty. packaging and silkscreen. the overhead group is usually used in semi-finished or finished goods for control of production overhead calculation. In AAA.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Overhead group Overhead group is another parameter that is being entered into the costing view in the material master data. Unlike the origin group which is generally applied to raw materials. One group represents production royalty is needed and the other group represents production royalty is not required. 2 overhead groups will be defined to classify products into two separate categories according to the need of production royalty calculation. The followings is the list of overhead keys to be defined in AAA: 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 86 of 147 . the major need of defining different overhead keys to separate the overheard allocation into three different categories namely bulk bbb. Therefore. In AAA.
In AAA. subcontracting price and general overhead allocation. In addition to royalty. The preliminary design of the quantity overhead keys to be defined is as follows : Quantity overhead key ZR1 ZNB1 ZNB2 Description Production royalty Consumption VAT for testing battery (Net Billing only) Consumption VAT for testing film (Net Billing only) Calculation base to be applied Finished goods production output quantity Finished goods production output quantity Finished goods production output quantity Costing Variants A costing variant is a collection of different control parameters of product cost calculation. activity prices (SPT costs). quantity overhead keys will also be used in the cost estimate calculation in Net Billing because some of the cost items in Net Billing also require application of a fixed amount rate to the product cost. Three different major costing variants will be defined in AAA: 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 87 of 147 . the major usage of the quantity overhead key is for definition of production royalty rate which is a fixed amount applied to different products. The major control is the logic and pricing strategy of the different costing components such as materials cost.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Percentage overhead key ZMO1 ZLO1 ZMO2 ZLO2 ZMO3 ZLO3 Description Material overhead for bulk bbb Labour overhead for bulk bbb Calculation base to be applied All raw material costs for bulk bbb All labour costs for bulk bbb All raw materials cost for silkscreen All labour costs for silkscreen All raw materials costs for packaging All labour costs for packaging Material overhead for silkscreen Labour overhead for silkscreen Material overhead for packaging Labour overhead for packaging Quantity Overhead Keys A quantity overhead key is a key where you can specify the conditions of overhead allocation in terms of a fixed amount per unit of quantity.
Effective price taken from purchasing info record (The above strategy is just a preliminary suggestion.doc Printed on: 10/16/2010 9:02 a10/p10Page 88 of 147 . Inventory valuation price from accounting view of material master 2. Effective price taken from purchasing info record Additional control Standard activity rates for the year Effective price from subcontracting purchasing info record Percentage overhead keys and quantity overhead keys for royalty Planning version 0 Pricing control of costing variant for Net Billing: Costing items Material cost Pricing strategy priority sequence 1. Inventory valuation price from accounting view of material master 2. cost estimates calculation for material master standard price update) Cost estimate calculation for Net Billing Cost estimate calculation for other Request for Quotation (RFQ) purposes Pricing control of costing variant for material valuation : Costing items Material cost Activity price Subcontractin g cost General overhead allocation Pricing strategy priority sequence 1. Wilson Yuen and Stanley Wan will have more detailed discussions on that to finalised the logic) Additional control Activity price Standard activity rates for the year A planning version different from 0 such that different standard rates could be applied Subcontracting cost General overhead allocation Effective price from subcontracting purchasing info record Percentage overhead keys and quantity overhead keys for Net Billing 42091003.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX • • • Standard cost estimates calculation for material valuation (i.e.
3. The gain or loss will post to the P/L accounts 42091003. Plan price 1 from material master (this price is to be maintained manually by users on selective materials) 2. Effective price taken from purchasing info record Additional control Activity price Subcontractin g cost General overhead allocation Standard activity rates for the year Effective price from subcontracting purchasing info record Percentage overhead keys and quantity overhead keys for royalty Planning version 0 The source of the pricing will be kept in each product cost estimate as an audit trail.9. or 2) automatically from the cost roll-up (can be using weighted average) of the lower levels of the BOM and can be selectively updated only for certain semi-finished products. Approaches Summary of Product Cost Finished Goods Inventory in Production Plant 5100 • • • • Valuation at moving average price per batch (FIFO batch valuation) A new batch number will be generated for each production order (work order) producing the finished product Each batch will have a unique material cost The material cost of a batch is calculated from semi-finished goods and raw materials that are directly constituting to the finished product according to the BOM Semi-finished Goods Inventory in Production Plant 5100 • • • • Valuation at standard price updated from standard cost estimates All inventory of each semi-finished product will be valuated the same (at the defined standard cost) The standard cost can be updated either: 1) manually.3.doc Printed on: 10/16/2010 9:02 a10/p10Page 89 of 147 . Re-valuation of existing inventories for semi-finished product will happen whenever the standard cost is updated. Inventory valuation price from accounting view of material master 3.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Pricing control of costing variant for RFQ: Costing items Material cost Pricing strategy priority sequence 1.
The batches of raw materials will be issued to production orders at FIFO. This activity has to be done before you can calculate the correct product cost estimate. In AAA. After that.e. the budget of activity type dependent costs (i. the product costing users in AAA have to maintain the percentage overhead as well such that the general overhead could be allocated into the product cost by the desired percentage rates. 42091003. 3. Maintenance Percentage Overhead Rates In addition to the activity type prices. Activity type prices planning The activity type prices in AAA are the standard labour and overhead rates which will be applied to the standard production time to calculate the absorption of standard labour and overhead cost. The planning data could be entered as a yearly total figures or be broken down into different monthly total. In cost center planning. No re-valuation of raw materials will be required. On the other hand. 3.9. the standard rates are being calculated in the yearly budget and the rates will be applied for the whole year. In SAP. The batches of goods will be delivered to customers at FIFO. users could run an activity price calculation programme to calculate the related activity price per unit of activity quantity.5. the same thing is being done in cost center planning. production related labour and overhead costs will be entered into each production cost centers). depending on the actual needs of the user when doing the budgeting.9. All Inventory in Branches • • • Inventory will be valuated for each batch of the receipts of STO using the STO price (transfer prices plus the landed costs).4.doc Printed on: 10/16/2010 9:02 a10/p10Page 90 of 147 . No re-valuation of inventory will happen.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Raw Materials Inventory in Production Plant 5100 • • • Raw materials will be valuated for each batch of the receipts of purchase using the purchase order price. users have also to plan the budgeted activity quantities and enter the budget into each production cost centers respectively.
there is a userdefinable validity period for each amount rates.9.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX There is no standard system function in SAP R/3 to help the user to calculate the percentage rates. The major difference is that the rate being entered for quantity overhead is a dollar amount value per unit of quantity instead of a percentage rate. This activity has to be done before you can calculate the correct product cost estimate. 42091003.6. Maintenance Quantity Overhead Rates The maintenance procedure of quantity overhead rates is very similar to the percentage overhead. That means users could enter a monthly or yearly percentage rate by maintaining different validity period.doc Printed on: 10/16/2010 9:02 a10/p10Page 91 of 147 . This activity has to be done before you can calculate the correct product cost estimate. Users have to come up with the percentages outside the system and then enter the rates for each percentage overhead keys. Similar to percentage overhead. There is a validity period of each rate values. 3.
9. In scenario 3. you could calculate and save different versions of costs. Calculation of the standard production cost estimate of a new product and use the standard cost estimate as the standard price for future inventory valuation 2. But in this case. You will have to calculate a cost estimate of a product in the following major scenarios: 1. If you have really calculated different versions of costing for the same materials. only one version (version 01) could be updated into material master standard price as the inventory valuation price. all versions cannot be updated into the material master for inventory valuation.doc Printed on: 10/16/2010 9:02 a10/p10Page 92 of 147 . Major difference of the calculation logic in Net Billing could be summarized as follows: Cost items Assembly labour Calculation Standard assembly hours X hourly rate specific to Kodak Major difference Standard rate will be different from inventory valuation rate from a 42091003. Cost Estimate Calculation This is the process for calculating a product cost of a product.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX P d ct C sti n ro u o g P ce O rh a R te A ti vity R te fo th n x p ri o ro ss ve e d a . you should use the costing variant desired for calculation of standard price for inventory valuation to process your cost estimate calculation.7. Again. you should use the costing variant desired for Net Billing calculation because the calculation logic and the standard rates required will be different from the normal inventory cost calculation. c a r e et e d E te p d cti o n r ro u n o rh a ra s i n ve e d te to th syste e m E te b d e d n r u g te co sts o th c st f e o e e e ts o th l m n f e a ti v ty ty e i n c i ps C st C n r o e te P ann l ni g E te b d e d n r u g te q a ti ty o th un f e a v ti e i n C st cti i s o C n r Pl a n n e te ni g < ct i o Fun n> R n a vi ty u cti p ce ri s ca cu a o l l ti n A vi ty p ce cti ri s ca cu a d b l l te y th syste e m Clc la a u te sta d rd na co st B 3. Calculation of a new standard cost estimate of a product for purposes other than inventory valuation (such as for Net Billing and other quotation reference or other purposes) In scenario 1 and 2 above. However. Calculation of the new standard cost estimate of an old product if you want to revaluate that inventory valuation price of that product 3. they will be kept in the system unless being deleted or overwritten by a new calculation of the same version. You could also calculate different versions of cost estimates for other purposes.
This item does not exist in inventory valuation A specific set of exchange rates is being used to convert the part prices into USD The calculation logic for all other cost items will be the same as the inventory valuation calculation Two processing options are available for cost estimates calculation. In both cases. You have to define a percentage mixing ratios of the different production alternatives and the system will mix the prices of the different production alternatives by the mixing ratio to come up with a single weighted average standard price. This approach is also a standard feature in SAP R/3 product costing system called Mixed Costing.9. Single Use Bbb (SUC) Standard Cost Estimates for In AAA. according to the current practice. the inventory valuation will only be effective after the standard cost estimate has been marked and released to the material master. Standard Price Update from Standard Cost Estimate – Mark & Release Mark and release are two technical steps to be done in SAP product costing to update your standard cost estimate into the standard price of the material master for inventory valuation. 3. AAA CCHK Finance will define a percentage ratio mix of the two BOMs to come up with a single mixed standard price for the SUC.8. (The mix is controlled by CCHK 42091003. That means the steps are only required for inventory standard price update. you could choose to do the costing calculation for selective materials only.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Consumption of VAT for testing batteries Consumption of VAT for testing film All part costs Fixed amount per unit of product Fixed amount per unit of product Summation of BOM item part costs different planning version Fixed amount based on quantity overhead. That means even if you have calculated a new standard cost estimate in product costing of an old product.9. the old product will not be revaluated if you have not yet marked and released the new cost into material master.9. There will be two BOMs for every single use bbb model. 3. This item does not exist in inventory valuation Fixed amount based on quantity overhead. From inventory valuation points of views. Cost estimates that are used for other purposes are not required to do these two processes. individual processing or mass processing using a tool called Costing Run.doc Printed on: 10/16/2010 9:02 a10/p10Page 93 of 147 . one BOM is for virgin production the other is for recycle production. When calculating the standard cost of SUC. Mixed costing allows you to update a mixed standard price from different production alternative BOMs. the single use bbb could be produced from newly produced components (virgin version) or recycle components (recycle version).
In SAP.doc Printed on: 10/16/2010 9:02 a10/p10Page 94 of 147 . this process could be done via Reference and Simulation Costing. change the system mix ratio. the development of a new product consist of many different phases. According to the to-be design in PP. the goods issue posting will be done 42091003. then re-calculate the new price) 3. But AAA finance still needs to come up with an early estimation of product cost of the new product. At the early stage. To change the mix in the system.Process Standard Cost Estimates for the next period Beginning of the next month Current month Calculate standard cost estimates individually (CK11N) Individual No FINANCE Individual material/mass processing? Yes Error in cost calculation? Release standard cost estimates individually (CK24) Sent error messages to production/M IS department for corrections From B Mark standard cost estimates individually (CK24) End Costing run No Download standard cost estimates with costing status "KA" Mass Calculation by costing run (CK40N) for Download standard cost estimates with costing status "VO" Mark standard cost estimates (CK40N) Release standard cost estimates (CK40N) 3.10. The detailed requirements and the solution of this issue will be defined in the detailed design phase. a material number may not be available for the new product. Products Product Cost Estimates for New In AAA.9.11.9. Product Costing . All such materials are being regarded as WIP in AAA’s terminology Raw material consumption at backflushing Raw material costs are being posted and captured into the production order by a goods issue posting. Production Order Processing for Semi-finished Goods Production order of semi-finished goods are used to manage the production of nonfinished goods components (such as plastic components) or sub-assemblies (such as PCBA or bulk bbb).Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Finance.
In other words. Labour cost absorption (from cost center) 10Dr. (Raw materials should be issued at FIFO.00 and $20.00 which includes $90 of standard raw material cost. statistical postings in CO only) using secondary cost elements which does not have any posting effect in the general ledger. and the general percentage overhead (calculated from standard cost estimates). The posting will be as follows Dr. a goods receipt should be done to post the completed units back to the inventory pool for other stages of production. the production time consumed in the production order will also be entered during backflushing entries. the amount of inventory of the semi-finished goods being received will be posted to inventory account at the standard price which have already included the raw material cost. Overhead cost absorption (from cost center) 2010 All the above postings are pure CO postings (i. production time being charged to the production order and the goods receipt of the completed units at the same time. Labour cost (to production order) Cr. labour and production overhead. only the standard cost is used) During each goods receipt posting.doc Printed on: 10/16/2010 9:02 a10/p10Page 95 of 147 .00 respectively. $10 of standard labour cost. This transaction will also be done automatically by means of backflushing entries. the labour and overhead cost being allocated into the production order will be $10. and $9 of general overall cost (10% of the total standard raw material cost). the goods receipt posting will be as follows : 42091003. But the implication in CO is that $10 and $20 labour and overhead costs are being charged from the production cost center to the production order.e. Raw material consumed 100100 The raw material consumption cost will be posted to P&L and captured into the production order Labour and production overhead cost allocation In addition to raw material consumption.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX automatically at backflushing. $20 of standard production overhead cost. Suppose the standard price of the semi-finished goods is $129. Overhead cost (to production order) 20 Cr. the backflushing entries will post the consumption of raw materials. The system will automatically consume the raw materials to the production according to the usage quantity defined in production BOM. Absorption of Production Cost to Inventory at Goods Receipt When the production of certain units of the semi-finished goods is completed. Raw material inventory Dr. the accounting posting will be as follows : Cr. Suppose $100 of raw material cost is consumed in the production order. But for semi-finished goods. Suppose the production time being entered is 10 hour and the standard rate for labour and overhead are $1/hr and $2/hr respectively.
the WIP inventory of the semi-finished goods which is being valuated at the standard price of $129.00 has also included the absorption of the standard labour cost. all the cost capturing postings of the production order in that period could be treated as completed. In other words. The next step to be done in the overall month end procedure will be WIP calculation. the above postings are CO postings only which have no effect in the general ledger. Continue with our previous example of the production order of which $100 of actual raw material cost has been posted and general overhead rate is 10%.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Dr. Month End Processing – WIP Calculation After finishing the general overhead allocation process. That means the general overhead being allocated to the production order will be $10. General overhead cost (to production order) 10 Cr. the standard overhead cost and the general overhead cost. General overhead cost absorption (from cost center) 10Similar to the labour and production overhead cost postings. Factory output from production 129 129- The credit posting is a P&L item which capitalizes standard cost amount of $129.00. Semi-finished goods inventory Cr.00 left in the production order will be treated as the WIP amount in SAP R/3 if the overall status of the production order has not yet completed. the cost items posted into the order are as follows : Raw material costs 100 Labour cost 10 Production overhead 20 General overhead 10 Factory output 129------------------------------------------Total net P&L in order 11 The net order balance of $11.doc Printed on: 10/16/2010 9:02 a10/p10Page 96 of 147 . Month End Processing – General Overhead Allocation The percentage general overhead allocation to production order will be done as part of the month end procedure for production orders. The posting will be as follows : Dr. 42091003. With our existing example.00 from the P&L in the production order to the inventory.
a production order is treated as completed when the total goods receipt quantity = the total goods quantity planned to be produced. the total goods receipt qty = total planned output quantity). this accrual posting will be reversed automatically by the system of the next month end settlement.doc Printed on: 10/16/2010 9:02 a10/p10Page 97 of 147 .e.00 back to the balance sheet.00 of production variance could be broken down into different cost natures (such as $10. If the order is complete (i. WIP will be posted and the entries will be as follows : Dr. If the production order is completed in the next period. In SAP R/3. The breakdown will be posted and stored into different value fields in COPA for analysis.00 raw material cost and $1. Production Variance Cr.00 of general overhead costs) and different sources (such as price or quantity usage of raw materials). total goods receipt qty is less than the total planned output qty). users have to process the variance calculation process. If the order is incomplete (i. WIP capitalisation 11 11- (You will know if the order is complete when the total delivered quantity is equal to the total quantity to be produced) The posting effect is to post an accrual of the P&L amount of $11. the remaining order balance of $11.00 will be treated as production variance instead of WIP. If the production order in our existing example has been completed. The total $11.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Normally. production variance will be posted and the entries will be as follows : Dr. Factory output from production 11 11- 42091003.e. WIP Cr. Month End Processing – Variance Calculation After finishing the WIP calculation. Month End Processing – Settlement Settlement is the last step of the month end procedure for production orders. The usage of the settlement is to generate accounting postings for the calculation results of WIP and variance calculations. actually the nature of WIP calculation and the corresponding posting in FI general ledger is just an accrual posting for the costs that have not yet been absorbed by goods receipt and are still remained in an incomplete production order at the time of month end processing.
3. Labour cost absorption (from cost center) 10Dr. The posting will be as follows Dr.00 respectively. In additions to the above general ledger postings. Labour cost (to production order) Cr.9. the accounting posting will be as follows : Cr. Production Order Processing for Finished Goods Production order of finished goods are used to manage the production of the finished products. Raw material consumed Dr. Semi-finished goods consumed 100200100 200 The material consumption cost will be posted to P&L and captured into the production order Labour and production overhead cost allocation The same logic mentioned in the semi-finished goods case still applies. Suppose the production time being entered in backflushing is 10 hour and the standard rate for labour and overhead are $1/hr and $2/hr respectively. Raw material inventory Cr.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX The overall effect is to reclassify the net P&L cost in the production order into production variance account. But actually the whole production order execution process will be exactly the same as the orders for semifinished goods Raw material consumption at backflushing Materials used for final production of finished goods and the required semi-finished goods will be consumed into the production order by backflushing. Semi-finished goods inventory Dr.12. Overhead cost absorption (from cost center) 2010 42091003. In most cases. the labour and overhead cost being allocated into the production order will be $10. Overhead cost (to production order) 20 Cr.00 and $20.doc Printed on: 10/16/2010 9:02 a10/p10Page 98 of 147 . Suppose $100 of packaging raw material cost and $200 costs (from standard price) of semi-finished goods are consumed in the production order. this present the final packing process in AAA. the production variance will also be broken down and posted into COPA.
$10 of standard labour cost.00 which includes $200 of semi-finished goods costs.e. backflushing). the goods receipt posting will be as follows : Dr. General overhead cost (to production order) 10 Cr.e.00 left in the finished goods production order will be treated as WIP if the order is incomplete (i. Factory output from production 329 329- Month End Processing – General Overhead Allocation Continue with our previous example of the production order of which $100 of actual raw material cost have been posted and general overhead rate is 10%. That means the general overhead being allocated to the production order will be $10. Finished goods inventory Cr. the net order balance of $11. the plan cost of the production order) will be used (instead of the standard cost) to post the good receipt value Suppose the production order cost estimate of finished goods is $329. $90 of standard raw material cost. $20 of standard production overhead cost. General overhead cost absorption (from cost center) 10- Month End Processing – WIP Calculation With our existing example for finished goods order. and $9 of general overall cost (10% of the total standard raw material cost).e.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Absorption of Production Cost to Inventory at Goods Receipt The production costs in the finished goods production order will be capitalised into finished goods inventory during goods receipt (i.doc Printed on: 10/16/2010 9:02 a10/p10Page 99 of 147 . the cost items posted into the order are as follows : Semi-finished goods costs 200 Raw material costs 100 Labour cost 10 Production overhead 20 General overhead 10 Factory output 329------------------------------------------Total net P&L in order 11 Same as semi-finished goods order.00. the total goods receipt quantity is less than the total planned output quantity) 42091003. But the production order cost estimate (i. The posting will be as follows : Dr.
this accrual posting will be reversed automatically by the system of the next month end settlement. the production variance will be posted to P&L as production variance Dr. the total goods receipt qty = total planned output quantity) and the finished goods inventory has been sold before month end. the inventory value becomes $340. WIP Cr.e. the total P&L at period end will also become $340 ($290 of COGS + $11 of production variance) 42091003.e. this process is virtually not required for finished goods order because the finished goods is valuated at moving average price Month End Processing – Settlement If the order is incomplete (i. WIP will be posted and the entries will be as follows : Dr. total goods receipt qty is less than the total planned output qty). the production variance will be posted to finished goods inventory as follows : Dr. the total goods receipt qty = total planned output quantity) and the finished goods inventory has not yet been sold before month end. The overall mechanism is exactly the same as the production for semi-finished goods If the order is complete (i. If the order is complete (i.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Month End Processing – Variance Calculation Unlike semi-finished goods.e. Factory output from production 11- After the posting. Factory output from production 11 11- After the posting.00 ($290 + $11) which is the total actual cost incurred in the production order. Production variance 11 Cr. Finished goods inventory Cr.doc Printed on: 10/16/2010 9:02 a10/p10Page 100 of 147 . WIP capitalisation 11 11- If the production order is completed in the next period.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX P d c Csti n .doc Printed on: 10/16/2010 9:02 a10/p10Page 101 of 147 .P d c o O e P ri o E d P c ssi n ro u t o g ro u ti n rd r e d n ro e g In i v u l d id a p c ssi n o ro e g f oe ed v rh a a l o a o (K A ) l c ti n K X In iv u l d id a p c ss n o W ro e i g f I P c lc la o a u ti n (K A ) KX In iv d a d i ul p c ssi n o ro e g f v ri a c s a ne c lc la o a u ti n (K S ) K2 In iv d a d i ul p c ssi n o ro e g f p dc o o e ro u ti n rd r se e e t (K 8 ) ttl m n O8 Fi nance S rt ta In i v u l d id a o e a rd r/m ss p c ssi n ? ro e g Ed n In i v u l d id a p c ssi n o ro e g f oe ed v rh a a l o a o (K A ) l c ti n K X In iv u l d id a p c ss n o W ro e i g f I P c lc la o a u ti n (K A ) KX In iv d a d i ul p c ssi n o ro e g f v ri a c s a ne c lc la o a u ti n (K S ) K2 In iv d a d i ul p c ssi n o ro e g f p dc o o e ro u ti n rd r se e e t (K 8 ) ttl m n O8 42091003.
product characteristics. As a result. sales organisations. Note: The COPA sections in the design document only reflect the initial information gathering and preliminary mapping to different R/3 structures. CO-PA lets you evaluate market segments. with respect to your company's profit or contribution margin. In AAA.10. etc. classified according to various characteristics such as products.1. Organisation Unit in COPA Operating Concern: • • Highest organisation level in SAP for Controlling modules (Management Reporting) One single Operating Concern is proposed to AAA to centralise all margin analysis data across AAA reporting units 42091003. This centralisation of logistics characteristics and financial information will be performed in the COPA in R/3 system. in which the profitability of the company can be viewed and analysed in multiple dimensions. necessary Sales/ Profit data are centralised in COPA for different analysis purposes. like plant. distribution channels. product management and corporate planning departments with information to support internal accounting and decision-making. These dimensions are termed as ‘Characteristics’ in the SAP CO-PA module. AAA needs a comprehensive review on the requirements for both COPA and BW at the same time to synchronize the understandings across the company and identify a streamlined solution for different reporting needs. 3. This exercise is commenced and the confirmed requirement on both COPA and BW will be obtained from AAA users (both Finance and Supply Chain) by end of Dec 2003. Profitability Analysis This is the highest organisation level in the Controlling (CO) module (for Cost Accounting purposes). marketing. or strategic business units such as company codes. The aim of the module is to provide your sales.doc Printed on: 10/16/2010 9:02 a10/p10Page 102 of 147 . CO-PA will serve both analysis needs from Finance and Supply Chain users.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. Revised version is expected after full review completed by end of Dec 2003. customers.10. Gathered data will be fed the SAP Business Information Warehouse(BW) for further reporting capabilities. etc. Due to the integration nature of SAP.
This section highlights some of the major comparison and will focus on the rational why Costing-based COPA is the preferred method for AAA. Each unique combination of Characteristics forms a specific ‘Profitability Segment’.Media of carrying Revenue/Cost of Sales information Costing-Based CO-PA Account-Based CO-PA Revenue/ Value Fields Revenue/ Cost Elements Cost of Sales t Lowest level of data need to t Equal to P&L account in the Operating information be analysed per Profitability Chart of Accounts in SAP FI module presented as Segment (can be a lower level than a GL account) Major comparison of Value Fields and Revenue/ Cost Elements: 42091003.. AAA Management has confirmed that Costing-based Profitability Analysis will be deployed by AAA.10. • • Costing-Based COPA COPA Method Deployment In SAP CO-PA module. Company Code.5 on Controlling Organizational Structure in this design document. Customer No. Plant. please refer to Section 2. Examples of Characteristics: Product No. Distribution Channel.doc Printed on: 10/16/2010 9:02 a10/p10Page 103 of 147 . etc. Common Structure – ‘Profitability Segments’ Both methods store Cost of Sales information in different ‘Profitability Segments’. Differences . Region. there are 2 methods to account for market segment analysis: Accounting-Based COPA During the design phase.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Operating Operating Concern Concern Description 1000 AAA Group Assignment to Controlling Area 1000 – AAA Group For detail organisation unit relationship. Product Gp.2. white paper has been issued on the comparison on different COPA method. 3.. Sales Area.
Costing-Based CO-PA sometimes does not match with legal book values.) According to Accenture experiences on High-Tech industry companies using SAP COPA.Direct Labor t Cost of Goods Manufactured Indirect Labor Quantity capturing/ UOM Examples: t t t t t t t t GL account – Revenue GL account – Cost of Goods Sold GL account – Sales Allowance GL account – Prod. MM and PP as PA value fields to manipulate for a variety of reports.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Value Fields Level of analysis Revenue/ Cost Elements t Each ‘Value Field’ is user-definable Same level as P&L GL accounts (always t Can be lower level of details than GL 1:1 relationship with accounts in FI) accounts t Can be same level as GL accounts (1:1 relationship with accounts in FI) t Can be grouped level of GL accounts Standard ‘Value Field’ in capturing sales Standard field in capturing sales quantity/ UOM quantity/ UOM Example of ‘same level as GL account’ t Revenue t Promotional Expenses Example of ‘lower level of details than GL accounts’ t Cost of Goods Manufactured . nothing gets booked into COPA. Such discrepancies can be explained mainly by 3 big factors: o Timing differences: When the Delivery step is performed in SAP SD.Direct Material t Cost of Goods Manufactured Indirect Material t Cost of Goods Manufactured . This is the recommended path as it allows more variability in collecting data for PA reports (related to details of cost components for variances. During the SD Prototype. Price Variance GL account – Salesperson salaries GL account – Promotional Expenses … And all other P&L GL accounts posted to ‘Profitability Segment’ Reasons for adopting Costing-Based COPA SAP CO-PA was intended for use with a cost-based approach that stores different currencies. 42091003. FI. the COGS and Revenue will be in syn in both FI and COPA for AAA. since Billing Due List (a batch program) will be executed each day. which perform the billing step for Sales Order with Delivery but not yet billed. etc. but Billing is not. quantities and values from SD.doc Printed on: 10/16/2010 9:02 a10/p10Page 104 of 147 . but COGS is already booked in the FI legal book. the majority of them utilitise Costing-Based COPA to enable more detail level of Cost of Sales analysis.
Details are subject to change as part of the exercise in confirming the final COPA/ MOR business requirement.Characteristics The characteristics in Profitability Analysis represent those criteria according to which you analyze your operating results and your sales and profit plan. The combination of the values for the characteristics in an operating concern is called a Profitability Segment. Item No. this will be finalized early Jan. but explainable. Discrepancies to FI might occur. As a result of the COPA/BW warehouse. [Billing Doc.doc Printed on: 10/16/2010 9:02 a10/p10Page 105 of 147 . Characteristics AAA Term CUSTOMER TYPE RECORDNO CUSTOMER_PO INVOICE NO CUSTNMBR CUSTOMER SUMMARY NAME CUSTOMER NAME SALES PERSON OPERATING UNIT RESPONSIBLE BRANCH REGION SAP Term [Proposed] Distribution Channel [Sales Organisation] 1.General] 42091003. Preliminary mapping of AAA requirement to SAP structure are summarized in the following table. COPA Structure . Attribute [Customer Master] Sales Employee [Customised Partner] Company Code [BURKS] Sales Office [Customer Master] Region [Customer Master .10. without any posting in FI legal book Rounding differences from Foreign Currency Translations o Note: Management using/ viewing these COPA reports need to be acknowledged the fact that due to the intended design of the Costing-Base COPA.] Group Key [Customer Master] Customer no. 3. values not necessarily always tie to FI legal book. [Sales Order/ Billing Doc. Sales Order 2.3. [Sales Order Header/ Item level] Customer PO number [Sales Order header level] Billing Doc No.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX o Accruals: It is possible that accrued values are posted in COPA (might be triggered by program in Sales Order conditions). Header level] Customer No.
doc Printed on: 10/16/2010 9:02 a10/p10Page 106 of 147 . 8 digits] Material No.HK only [Bulk/ Non-Bulk]??? Customisation is needed [Step 1: new table to store versions of 'Marketing Model Code' Step2: Reporting need to read this code] Product Hierarchy-level 2 and 3 [5.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Characteristics AAA Term MFG SOURCE ORDER TYPE MARKETING MODEL CODE SAP Term [Proposed] Product Hierarchy-level1 [2 digits] TBC .Sales View Sales District' Customer Master Sales Area view TBC from SD Team TBC from SD Team TBC from SD Team TBC from SD Team SALES PRODUCT CODE Assortment Code MODEL MODEL TYPE FILM TYPE FLIM SPEED FLASH TYPE MOTOR TYPE ZOOM TYPE Power Zoom FOCUS TYPE DISPLAY TYPE SENSOR TYPE RESOLUTION (MP) PACKAGE CODE SILKSCREEN CODE Default Package Code Default Silkscreen Code LOYALTY PROGRAM BRAND NAME PRODUCT LABEL Set Type Set Usage Free Goods SHIP MODE Third Party Customer CUSTOMER CLASS ID Customer Territory APPROVAL STATUS OF WORLDWIDE ORDER ITEMNUMBER PRODUCT TYPE STATUS1 42091003. [Material Master] First segment of Material Master [1st to 6th digits] Division' in Material Master [MARA-SPART] TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team TBC from MM/PP Team Fourth segment of Material Master [14th to 18th digits] Third segment of Material Master [9th to 13th digits] N/A in SAP N/A in SAP Field to be customised in Sales Order Item level TBC from MM Team [Material Master] TBC from MM Team [Material Master] TBC from SD Team TBC from SD Team TBC from SD Team Field TBD from Sales Order header level TBC from Debbie Customer Gp' Customer Master .
sales deductions. Preliminary mapping of AAA requirement to SAP structure are summarized in the following table.4. In costing-based profitability analysis.doc Printed on: 10/16/2010 9:02 a10/p10Page 107 of 147 . revenues.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. Value Fields AAA Term QUANTITY UOM The bbb Quantity GROSS SELLING PRICE ADV+CO-OP% GROSS SALES Return Allowance(%) OTHER ALLOWANCES NET SELLING PRICE Transfer Price FOB Commission SPC MATERIAL COST SAP Term [Proposed] New Value Field New Value Field TBC from SD Team New Value Field Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report New Value Field New Value Field New Value Field [from COPC] SILKSCREEN MATERIAL COST New Value Field [from COPC] PACKAGE MATERIAL COST FILM MATERIAL COST New Value Field [from COPC] New Value Field [from COPC] BATTERY MATERIAL COST OTHER PACKAGE MATERIAL COST TOTAL MATERIAL COST SCRAP RATE New Value Field [from COPC] New Value Field [from COPC] Calculated Field in COPA Report New Value Field [from COPC] 42091003. Details are subject to change as part of the exercise in confirming the final COPA/ MOR business requirement. You are able to define the revenues and costs that go into specific value fields for profitability reports or sales and profit planning when you set up your SAP System.10. COPA Structure – Value Fields The value fields contain values and quantities that were updated or planned for particular objects. value fields represent the lowest level of detail at which you can analyze quantities. and costs for profitability segments in profitability analysis or contribution margin accounting.
The detail Actual Value Flow design into COPA from other SAP modules will be confirmed upon completion of the whole COPA/ BW requirement gather stage (by end of Dec 2003). COPA in AAA will be updated upon Billing stage.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Value Fields AAA Term SPC LABOUR COST SILKSCREEN LABOUR COST PACKAGE LABOUR COST TOTAL LABOUR COST SPC OH COST SILKSCREEN OH COST PACKAGE OH COST TOTAL OH COST TOTAL GENERAL OH COST FUJI / DIGITALROYALTY COST MARKETING BRAND ROYALTY SAP Term [Proposed] New Value Field [from COPC] New Value Field [from COPC] New Value Field [from COPC] Calculated Field in COPA Report New Value Field [from COPC] New Value Field [from COPC] New Value Field [from COPC] Calculated Field in COPA Report Calculated Field in COPA Report New Value Field New Value Field TOTAL MANUFACTURING COSTCalculated Field in COPA Report Freight and Duty Cost COST OF GOODS SOLD PER UNIT GROSS PROFIT PER UNIT CONTRIBUTION MARGIN DIG CAM T SUPP CONTRIBUTION MARGIN REP COMM US GROSS SALES TOTAL NET SALES TOTAL Total FOB Commission TOTAL COST OF GOOD SOLD TOTAL GROSS PROFIT TRANSACTIONUNITCOST TRANSACTIONTOTALCOST CURRENTLANDEDCOST New Value Field Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report Calculated Field in COPA Report TBC from SD Team TBC from SD Team TBC from SD Team 3. Actual Value Flow into COPA For Sales and Distribution module triggered business transactions. 42091003.5.10. Additional postings directly from FI module are possible for exceptional conditions. All the sales transactions posted in COPA will therefore have both the Sales Revenue and Cost of Sales matched.doc Printed on: 10/16/2010 9:02 a10/p10Page 108 of 147 . and margin analysis in COPA is possible with complete data of the sales transaction.
but can be viewed separately in Management Reportings. ‘Responsible Branch’ Special Treatments on In AAA.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. Customer: Sales Office: Customer: Sales Office: A CCUK B CCHK Sales transactions of both Customer A and B are booked in CCHK’s book. Each Customer will therefore has a unique ‘Responsible Branch’.doc Printed on: 10/16/2010 9:02 a10/p10Page 109 of 147 . Handling Sale Allowances/ Provisions For high level treatment on Sales Allowances/ Provisions.7. ‘Responsible Branch’ in this case refer to AAA subsidiaries/ area of concerns which initiate the sales relationship with the Customer. Customer A will belong to CCUK. but belongs to ‘Responsible Branch’ in management reporting perspective. treatment upon Returns. For example. 3.8. COGS. They exist in SAP as separate Master Data and linked to Customer 42091003. different Business partners are related to this Customer and have a number of different functions. CCJP is not a AAA subsidiary. This impacts the FIGL. Accounting Postings.6. transaction flows to COPA will be further discussed during the Detail Design Phase. List of Sales Office here includes. 3.10.10. described as partner functions. ‘Responsible Branch’ should be identified. Master ‘Partner Functions’ of Customer For a Customer that AAA has business relationship with. In Management Reporting (either in COPA or BW in To-be SAP). Allowances will all be presented as if the sales triggered by CCUK. due to the ‘Sales Office’ is CCHK. We will use the field ‘Sales Office’ in the SAP Customer Master Sales View in recording this information. Details of each triggering points of Sales Allowances/ Provisions. there are sales deals that are recorded in CCHK’s accounting book. please refer to Sales and Distribution (SD) Conceptual Design Document. In SAP.10. Customer B will remain under CCHK in Management Reports. but not limited to the followings: CCUS CCCA CCUK CCGE CCFR CCJP* * Not all ‘Sales Office’ defined here represent AAA subsidiaries (separate legal entity). for every Customer Master Record. Respective Sales Revenue.
the bill-to party. or the payer. Other characteristics are derived from it Ship-to Party Bill-to Party Pay-to Party Sales Employee A person or company that t SD: Generate Delivery receives goods. in COPA Characteristic) Bill-to Party (New Characteristic in COPA to be created) Sales Employee (New Characteristic in COPA to be created) Final decision will be based upon further discussion in Detail Design Phase. Therefore it is this t Contains data on billing number which will impact FI. the following Partner no. such as the assignment to a sales office or a valid price list Usage in SAP t t SD: Generate Sales Order COPA: Primary data in updating COPA Characteristics. t The ship-to party may not necessarily be the sold-to party.doc Printed on: 10/16/2010 9:02 a10/p10Page 110 of 147 . SD Billing document will be t A person or company that pays updated with ‘Pay-to Party’ the bill.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX For AAA. Every line item ‘Customer no. will be updated in COPA: Sold-to Party (Customer no. schedules and bank details Customisated Parnter for AAA in recording responsible Sales EE per Customer for COPA reporting t Note: As a preliminary design. Contains data on sales. such as unloading point and goods receiving hours t A person or company that t SD: Generate Billing receives the invoice for a delivery or service t The bill-to party may not necessarily be the payer of the bill. t Contains data for shipping. there are a number of Parnter Functions defined per each Customer: Partner Functions (Customer Related) Sold-to-Party Definitions t t A person or company that places an order for goods or services. 42091003. t Contains the address and data on document printing and electronic communication t The payer may not be the bill-to t FI: Accounting Posting of the party.’ field is populated with ‘Sold-to Party’ no. no.
Budget on Selling Expense 16. Needed? 6. Copy as a ba for sis Annual Budge ting 3.C.Prepare Data for Std. Error Exist? NO 5. Cost Estim ate 9. A NO 15.Allocation in COPA Ne eded? 17.doc Printed on: 10/16/2010 9:02 a10/p10Page 111 of 147 .Sa Forecast les Result for com year ing As a CO Plan version A YES Account De pt (Corporate ) 2. Review Budge ting Data 4.Perform Budget vs. B < Function> YES 19. Input freight / duty budge in t COPC 13. Allocation in C.Budget on De partm l enta cost in CCA 18. A 21. Inform other Dept for Annual Bud 11. PerformBudgeting Ana lysis vs Actual Analysis in CCA 23.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.Budge COGS t ba on Sale Qty sed s a utom atically in COPA Account Dept (HK) 8. Actual Analysis 42091003.Inform Corporate of Budget Com pleted Reporting Units (& Respective Dept) 14.Inform Sale Dept s to Fix Error 7.Adjust Data in SAP NO 20.PerformStd Cost Estim ate in COPC Y ES 10. Budgeting/Planning Annual Budgeting Supply Cha in 1.11.Pre pare Da for ta fre ight/ duty budget AND 12.
doc Printed on: 10/16/2010 9:02 a10/p10Page 112 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Annu l Budg t (Co a e nt') A FINAN CE Pe rmAllo tion fro rfo ca m Cost Ce te to Profit n r Se e (COPA) gm nt Pe rformTopDow n Distribu n in COPA tio END If n ce ry e ssra If ne e ry c ssra 42091003.
Sales forecast information form the source data for the budgeting process. Note that though R/3 provides a range of Planning capabilities to enable the information capturing of AAA’s Annual Budgeting process on different stages. sensitivity analysis. Accounting Dept (local subsidiaries).Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Annual Budgeting (Page 3) END B Account Dept (Corporate) Consolidate P&L Budget Review by Senior Management Approved Submit reviewed budget No Adjust Consolidated P&L Budget Annual Budgeting process for AAA has been documented on the process flow section in this design document. Same as the actual financial data capturing. Departments involved includes: Accounting Dept (Corporate). sophisticated Budgeting analysis (for example What-If analysis.) need to be handled by a more advanced SAP Financial product – Strategic Enterprise Management – Business Planning and Simulation (SEM-BPS) module. Sales and Marketing Dept (local subsidiaries). the financial planning function in SAP R/3 is handled by different modules and can be integrated. ‘Budgeting’ for AAA is termed as ‘Planning’ in SAP.doc Printed on: 10/16/2010 9:02 a10/p10Page 113 of 147 . 42091003. This solution is based on SAP-BW technology and is not in-scope for current phase. etc.
g. Plan Version for individual reporting unit. the COPA planning module will contains all the budgeting data in CO-OM planning. They have 2 main groups. All Actual Costs are captured and stored in Version 0.) The followings are the Plan Versions to be configured for AAA: 42091003. In COPA Planning. 3.1. e. However.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.. Version 0 can capture Plan Costs.g. Annual Budgeting For P&L items: SAP R/3 modules deployed for • Budgeting on Sales related items (Quantity/ Revenue per customer/ product level) will be performed in SAP COPA Planning • Budgeting on Cost of Sales (Product related costs) will be performed in SAP COPC (using Standard Cost Estimate). etc. The Planning dimension will be by P&L account/ Cost Centres. Commission = 10% of Gross Sales.doc Printed on: 10/16/2010 9:02 a10/p10Page 114 of 147 . Each version in SAP denotes a complete set of cost view. The planned value is then rolled up to Company-Code level in COPA report.2. Plan versus Actual analysis on Consolidated Balance Sheet will be performed in EC-CS as well. the default version. This way. For B/S Items: • Balance Sheet Items (Consolidated basis) will be performed in Enterprise Controlling – Consolidation (EC-CS) module directly. After the CO-OM planning has been completed and approved. value are allocated to COPA Planning by Assessment method in SAP.11.g.g. Plan Version: First quarter. A specific Plan Version will be defined in EC-CS for the Budgeting purpose. Also.Selling expenses (including Freight/ Commission per customer/ product level) will be first performed in SAP COPA Planning. Plan Version: Second Qtr. All other versions are separate views used for Planning and capturing planned costs only. The information will then pass to COPA Planning in terms of Characteristics/ Value Field combinations • Budgeting on Cost of Sales (Landed costs) will be performed in SAP COPA Planning (using Characteristics and Value Fields) • Departmental Costs . Plan Version after Corporate Review) • Denote the value on different time span (e. Users extract the rolledup information and update the Cost Centre budget on Sales and Marketing Dept. Each Plan Version in SAP is set up for different business meaning • For different purposes (e.11. more sophisticated formula calculation need to be performed offline. there is function on planning a particular item based on predefined percentage of another planning item. Sales Forecasting and Annual budgeting will be 2 different groups of Plan Versions in SAP • Form part of the Budgeting process ‘tool’ to store value updated/ confirmed by different parties (e. • Departmental Costs (All other budget items – Overheads) will be performed in SAP CO-OM Planning. Actual Version and Plan Version. Plan Version The definition of a version applies to the whole Controlling area.
AAA Business Processes Actual postings Type of Costs Captured Actual/ Plan 050 100 110 120 200 210 220 230 Sales Forecast Annual Budget – from Sales Forecast Annual Budget Departmental Cost v1 Annual Budget Departmental Cost v2 Annual Budget – Corporate Review Annual Budget 1st Qtr– Corporate Review Annual Budget 2nd Qtr– Corporate Review Annual Budget 3rd Qtr– Corporate Review Sales Forecast Annual Budgeting Annual Budgeting Annual Budgeting Annual Budgeting Annual Budgeting Annual Budgeting Annual Budgeting Plan Plan Plan Plan Plan Plan Plan Plan Note: It is advised that the Version 0 is always copied with the most updated information for the purpose of Plan vs.3. though we suggest reporting should mainly refer to Version 0 (which contains both Actual and Plan values). Planning Layout This is part of the exercise in the Detail Design Phase to define the SAP Planning Layout for different Budgeting process for AAA.doc Printed on: 10/16/2010 9:02 a10/p10Page 115 of 147 . Take an example. with adjustments for 1st Qtr. This avoids the unnecessary confusion that might have caused by too many Plan Versions used in the system. If information per a particular time frame is needed. 3. all AAA companies can always refer to value of this version when performing the necessary analysis (e. SAP enables users to choose specific Plan Version upon report selection screen. Actual Comparison. Since this acts the master version. During the Design Phase. ‘Report Extract’ is recommended to use instead of creation of new Plan Version.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Version 0 Descriptions Master Version Usage -Store Actual/ Plan values -Used for reporting -Required by SAP -Weekly Sales Forecast by Supply Chain -Data copied from version 050 -Data input based on version 100 -Data input/ amendment based on version 110 -Amendment on version 120 and finalize amount for the year -Data copied from version 200 -Data copied from version 210. of Plan Versions will be 12. -Data copied from version 220. 999 different versions. the no. say Sales Forecast information will be kept monthly. Future creation/ freezing of Plan Versions are also possible after system goes live. Standard SAP offers different planning input options: 42091003. Plan Version is a configuration setting of CO module in SAP. The values are updated to same ‘Monthly’ Plan Version the next year. with adjustments for 2nd Qtr.11.g. It is not a usual practice to reuse the Plan Version. since SAP provide max. if necessary. the team will configure the Plan Version according to the current need of AAA. measurement on departmental/ reporting unit performance). In terms of reporting capability.
Internet Planning is not an available option for AAA at the moment. However.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX SAP screen planning layout input – Tradition SAP screen input • It provides the wide range of standard SAP Planning function online for users. since Internet server is not adopted in this phase of SAP implementation. Users can have the function of Excel during planning as well. Data are saved directly into SAP database upon completion. SAP Planning modules involved: • CO-OM (Controlling – Overhead Cost Controlling) • CO-PC (Controlling – Product Costing) • CO-PA (Controlling – Profitability Analysis) 42091003. The review exercise will be lead by respective functional area designer and coordinate with users. Real-time data validation performed online. SAP Embedded Excel • MS Excel template is embedded into SAP Graphic User Interface (GUI). Users can input budget data off SAP system and upload into SAP upon completion. which enable users to rectify input errors upon planning data input. Major SAP function can be used.doc Printed on: 10/16/2010 9:02 a10/p10Page 116 of 147 . This enable decentralised Budgeting for AAA. The full review of the exact planning layout is to-be performed in detail design phase. MS Excel upload • MS Excel used as an offline tool. Internet enabled Planning • This is delivered standard by SAP.
doc Printed on: 10/16/2010 9:02 a10/p10Page 117 of 147 . cash balance on a given date) + Cash Liquidity Forecast (Future cash inflows & outflows) + Cash Concentration (Sweeping account balances of several bank accounts to one target bank account) Bank Accounts Confirmed cash account Bank clearing accounts MM Transactions Purchase Req Purchase Order A/P Open invoices with due date A/R A/R Open invoices with due date A/R 1000 Incoming Payments 1000 1000 Deposit Clearing 1000 Deposit Clearing 1000 1000 Confirmed Cash A 1000 Deposit Clearing Accounts Postings Confirmed Cash Bank Accounts Postings Out Chk Clearing 3000 Out Chk Clearing 3000 Confirmed Cash B 5000 Out Wire Clearing 2000 Bank Statement 3000 Out Wire Clearing 2000 2000 Payment Clearing Accounts Postings Check A/P Open invoices with due date A/P 5000 Outgoing Payments Check Wire 5000 Wire A/P 5000 Figure 3. Cash Management SD Transactions Sales Orders A/R Open invoices with due date Cash Position (Bank account activity.12.12a Cash Management Overview 42091003.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.
doc Printed on: 10/16/2010 9:02 a10/p10Page 118 of 147 . which illustrates short term movements in the bank accounts • The liquidity forecast.12a Cash Management Process SAP R/3 Cash Management offers the following tools. the liquidity forecast illustrates liquidity changes in the subledger accounts.Cash Receipts . Functions are also supported which you can use to obtain relevant information on forecast payment flows. This information appears in the form of memo records in the cash position.Cash Liquidity Forecast . which illustrates medium-term movements in subledger accounts The cash position shows how your bank accounts will move in the next few days. 42091003.Cash Disbursem ents .Intercom pany transfer (wire) Bank Statem ent received electronically Receive Bank Statem ent FINANCE Create Consolidated Cash Reports Cash Reports include: . Meanwhile.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Cash Managem ent Corporate collects Branches?cash data 1-week Projection Cash Report with: .Cash Position . A/R transactions reconciled with Bank Accounts Reconcile Cash Accounts with Bank Statem ent Approve Intercom pany Transfers Send Approved Cash Disbursem ents A P Commitment A uthority Approve Disbursem ents Figure 3.Weekly variances/projections Data in Bank Clearing Accounts fromA/P. designed to make cash flows clear: • The cash position. or as planned items in the liquidity forecast.Cash Concentration .
Common information and differences between Cash Position and Liquidity Forecast Common: • Both reports contain levels.The planning type controls the entry level. they explain how the account opening and closing balances came about. It controls the level to which a memo record is sent.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3.Characteristics (free text) can also be input by users for identification of records quickly • • • The planning type is a unique classification characteristic. For example. procedures.2. entered in all manual memo records. screen. AR/AP subledger postings Cash management memo records can be created as individual entries or using fast entry.The expiration date shows how long the payment advice is included in planning .12. For exchange rate on the memo record. They can also be classified according to how secure the receipt is .1. These supply high-quality information on the commercial reasons for a movement in an account . Amount data (including currency.doc Printed on: 10/16/2010 9:02 a10/p10Page 119 of 147 . and so on) . levels give information on whether a balance in a bank account is the result of a bank posting or of a memo record entered manually. Differences: • • In the cash position. exchange rate) 3. system uses the average rate by standard design Minus sign is needed for outgoing payments advices List of Planning Type (Difference type of Memo Records) is to be defined during Detail Design Phase of the Project by Finance users. Vendors and customers are assigned to a planning group by means of an entry in the master records.12. expiration date if required) 2. or risks.cash management account name. and expiration . The liquidity forecast contains groups instead of accounts. Memo Records Memo records will be used by AAA to include additional liquidity information (e. by confirmed or unconfirmed memo record.for example. Each group reflects certain features. Additional information (assignment. characteristics. accounts (bank and bank clearing accounts) supply information on the current balance. anticipated incoming and outgoing payments) in short-term planning which does not trigger actual bank transactions. account .g. The entry is split into three parts: 1. 42091003. 3. Planning data (date.that is.
The balances in the bank accounts. active are posted in the bank main (current) accounts. by currency if applicable. Cash Management Groupings are needed to maintain for the display of Cash Position report.12. Bank Accounts set up in SAP (FI-GL and Cash Management) Bank accounting is to provide a bank (current) account for each currency and. in each case. short time horizon. which you can display using the cash position. the account transactions can be displayed in the cash position. by value date. Objectives of setting up different bank clearing account (for a physical bank account at bank): • Accounts can be reconciled at any time • Foreign currency and local currency are managed in parallel • Can be managed by value date • Line item analysis possible • Items posted automatically using automatic payment transactions • Automatic breakdown using electronic banking transactions Only transactions which are. In addition. bank clearing accounts are needed for each 42091003. since SAP Treasury modules like Loan Management. a clearing account. Market Risk Management are not in-scope for Release One of the SAP Implementation in AAA Cash Management Groupings for Cash Position After the bank statements are posted in FI. This type of transactions is not applicable under the current design phase. Clearing accounts are defined to meet specific business needs. on a lower level and per processing type.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. Cash Position The cash position is the result of the entry. Detail requirements are to-be confirmed by users. of all the payments in a given. One general ledger account is needed to set up for each active account you have at the bank. according to the bank statement. form the basis for planning decisions.doc Printed on: 10/16/2010 9:02 a10/p10Page 120 of 147 . There are three sources of data for the cash position: • • • FI postings to cash-management-relevant G/L accounts Memo records entered manually Cash flows from business transactions managed with the Treasury Management application component.3.
domestic . domestic): B2 level • 10020015 Bank 1 (customer cash receipts): a B9 level The field ‘Planning Level’ is stored in the Company Code Specific segment of the GL Master data for all Bank current accounts.doc Printed on: 10/16/2010 9:02 a10/p10Page 121 of 147 . no information from bank postings will be gathered by Cash Management module. Payment transactions: are posted against the clearing accounts using the payment program. In this connection. a specific planning level is then assigned .for example. Processing sequence on the Bank related transaction (from GL to Cash Management) 1. be sorted by local currency amount. for example.currency USD): F0 level All levels starts with ‘F’ notify this is a bank main account in Cash Management module On the other hand. • 10020010 Bank 1 (current account . Bank statements: balance the clearing entries against the bank account. For example. also by currency if applicable. All bank (current) accounts should be assigned to a unique planning level. foreign) Bank 1 (incoming checks) Bank 1 (customer cash receipts) Note: The exact differentiation is to be confirmed by users as part of the Chart of Accounts and Cash Management design exercise. we recommend the following grouping as example: • • • • • • 10020010 10020011 10020012 10020013 10020014 10020015 Bank 1 (current account . The assignment is critical during the GL master creation. Cash Management: displays or monitors postings. with the help of various groupings. 42091003. the actual bank balance are represented. bank clearing accounts should be maintained on an open item basis. 2. Depending on the type of bank clearing account. domestic) Bank 1 (outgoing bank transfers. where bank statements and.domestic . They can.currency USD) Bank 1 (outgoing checks) Bank 1 (outgoing bank transfers. 3. Otherwise. for: • 10020012 Bank 1 (outgoing bank transfer.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX bank main account. with them.
All the vendors and customers can be categorized to different groupings to enhance their “visibility” in the liquidity forecast position. You can use the currency fields to display the foreign exchange risk. The following are examples of sources of planning information for the liquidity forecast: • • Receivables and commitments as expected incoming/ outgoing payments (from MM/ SD) Planned wage and salary payments (Memo Records from TR-CM) Cash Management Groupings for Liquidity Forecast As with the cash position. make the appropriate specification in the rate type field. Integration with SD/MM/AR/AP modules Assignment of ‘Planning group’ in the master record of Customers/ Vendors (CompanyCode Specific segment) is required in order for the system to transfer data between the customer/vendor accounts and the liquidity forecast. Liquidity Forecast enables AAA (both subsidiary’s Accounting Dept or Corporate) obtain medium to long term commitment and subledger information. On the one hand.4. you can show the cash position split by currency. 3. The value date for both purchase orders and sales orders will be based on the delivery date added to the payment term.doc Printed on: 10/16/2010 9:02 a10/p10Page 122 of 147 . The average rate is usually used for the translation from planning currency to display currency.12. Cash Management Groupings are set up for the liquidity forecast structure. 3. Liquidity Forecast The cash management module is integrated with both MM and SD modules such that the commitment information can be directly obtained through these modules. If you want to use a different rate for the translation. transactions (FI-GL) Integration with Special GL 42091003. Memo records are used to supplement any additional information which cannot directly obtained from other modules. You can also display the extent of your currency exposure from the cash position.5.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Currency Display in Cash Position Report Specific currency can be specified in the Display field.12. All the Purchase order and sales order information will be directly extracted and place into the liquidity forecast for analysis. The grouping term is used to combine particular levels and planning groups for display purposes.
42091003. as stated in point 6 above.12.6. Electronic Bank Reconciliation The electronic bank statement is used to automatically assign incoming and outgoing payments to house bank accounts when they relate to items already posted in the system to customer/vendor/clearing accounts and.AR/ AP). Post-processing for posting proposals(line items) which cannot be cleared Note: Electronic Bank Statement format SWIFT MT940 is compactable with SAP TR-CM. The note-to-payee fields in the electronic bank statement contain various information relevant to open item clearing. the system identifies the transactions in it and determines how they are posted. If the algorithms we deliver are not sufficient. Posting rules and account determination are defined in TR-CM customization 5. Each uploaded electronic bank statement will be assigned with a unique no.g. Steps in Electronic Bank Reconciliation: 1. detail of which will be incorporated into the respective customisation functional specifications. Use Planning Levels that begin with "F" as these are FI postings. will be needed to cope with AAA specific requirements on Bank Reconciliation. the clearing of them. 7. Bank accounting and subledger accounting batch session can be executed separately or jointly 4. Standard algorithm for clearing documents is available in the predefined form in SAP. Note to payee fields can be interpreted by document number or reference document number for the clearing transaction (example: standard algorithm). change the posting rule. Electronic Bank Statement file (in SWIFT MT940 format) is extracted from HSBC Hexagon 2. Batch input sessions are generated (per bank statement: one session for G/L Accounting and one for Subledgers. it is possible to program a user exit tailored to your business (e. 3.doc Printed on: 10/16/2010 9:02 a10/p10Page 123 of 147 . SAP suggests using the special G/L indicator as the second letter: Example: FF for down payment requests/ FC for LC payments. where appropriate. 6. in SAP and can be printed retrospectively. As an electronic bank statement is being imported.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Line items resulting from special transactions are transferred to a special level. Data (SWIFT MT940 for HSBC Hexagon) is imported into a temporary dataset in SAP 3. influence account determination by means of account modification). Customisation. The review task will be performed on the Detail Design Phase.
Cash Concentration Cash concentration involves moving the balances from various bank accounts to one target account. you can create two payment advices for each payment order. The system creates a concentration proposal. Lockbox in Cash Management In SAP Cash Management. AAA US plans to use a lockbox to collect customer payments in the future. One advice is for the sender account and one is for the receiver.8. it is confirmed during the FICO Prototype that customer payments will be applied manually although AAA Canada has a lockbox already in place.doc Printed on: 10/16/2010 9:02 a10/p10Page 124 of 147 .that is. thereby selecting particular accounts for concentration. Correction can be made on the concentration proposal at any stage in the process. less any defined minimum balances applicable. based on the grouping. In the Planned to field . keeping defined minimum balances in the source accounts. Enter a grouping term in the Grouping field. Once you have processed the concentration proposal. Procedure for Cash Concentration function: • • • • • • • • Enter the company code or. Therefore. if you are concentrating cash for more than one company code. The grouping contains only those costs that are to be included in cash concentration.7. The proposal contains the balance for the end of the day. enter a planning type assigned to cash concentration. use the Minimum Balance field to stipulate the minimum balance an account must have before it is selected for cash concentration. A ‘Company Code Worklist’ can be created to combine a number of company codes for the execution.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. 3.12. enter the planning date up to which you want to concentrate balances. Enter the target company code If required. there will be no customisation in enabling the Lockbox 42091003. Example: BANK-ACT. AAA Corporate can perform the Cash Concentration function on balances for a number of company codes at the same time. Lockbox function is available for electronic incoming payments processing for US/ Canada. Enter the cash management name for the account where the amounts are to be concentrated. and the planning result . This is due to the small volume of data seems not beneficial to use Electronic processing at the moment. You can define different groupings in cases where the concentration procedure is different. the likely account transfers. From the business requirement of AAA. In the Planning Type field.12. The plan amount is the total of the cash management end balances. The result is printed and takes the form of payment orders to the banks. the worklist.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX interface between SAP and the bank for the Lockbox function upon Release 1 of the SAP implementation. 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 125 of 147 .
in SAP R/3.1.13. all the consolidation units being setup into the to-be system are actual legal entities (with the exception of CC Latin America and Keystone Sales Graphics). real-time updated from FI in AAA) In AAA. a dummy consolidation unit will be established to hold historical balances that exist in the Elim company. AAA has a dummy unit of Elimination Company that is used for elimination and adjustment postings.AR. Therefore the whole structure of the consolidation units should be inline with the company and the coding used for the consolidation units will be the same as the company codes in FI in AAA for easy identification.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 3. The keys information that will be included in each consolidation unit is: • • • • Description (Name) Local currency Address and other correspondence related information Data collection definition (i. With integration with the FI general ledger. This consolidation unit will be dormant. However. no future postings will be applied. (France) (Germany) (US) Data Collection Data Collection Consolidation Procedures Validation of Data Validation of Data Currency Translation Currency Translation Inter Inter -UnitElimination -Unit Elimination Consolidation of Investments Consolidation of Investments CC Consolidated Financial Statements 3.doc Printed on: 10/16/2010 9:02 a10/p10Page 126 of 147 . a consolidation unit will linked to the company codes by a one-to-one basis in FI.13. All future 42091003.L SAP Code 5100 Concord Camera H K Limited (HK) SAP Code 5300 Concord Shenzhen Limited (PRC) SAP Code 4500 SAP Code 3500 Concord Camera H ungary (Hungary) SAP Code 5300 6100 Concord Camera Australia (Australia) SAP Code 4400 Concord Keystone Graphics (US) SAP Code 4300 Concord Latin A merica (Latin America) Consolidation Unit/ Company (Country) [Ownership Percentage] SAP Code 4100 Concord Keystone Sales Corp. Consolidation Procedures SAP Code3200 Goldline (Europe) Limited (UK and Northern Ireland) SAP Code 3100 Concord Camera(Europe) Limited (UK and Northern Ireland) SAP Code 3600 Peter Bauser SAP Code 5200 Concord Henggang Electronics Factory (PRC) SAP Code 3400 3300 Concord Camera GMBH SAP Code 3300 3400 Concord Camera France S. However.e. Consolidation Units A consolidation unit is the smallest unit element in a corporate group structure that can be used as a basis of complete consolidation. In the as-is system. (US) SAP Code 4200 Concord Camera Canada (Canada) Starprint Corp. all such postings could be done directly into the consolidation ledger levels without affecting the local general ledgers of each reporting units.
doc Printed on: 10/16/2010 9:02 a10/p10Page 127 of 147 . Consolidation Groups This is a user-defined group of consolidation units created for consolidation and reporting purposes.2.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX ‘Elim company’ postings will be done through SAP’s consolidation procedures and manual adjustments will be posted in the Consolidation Ledger.13. The key information of a consolidation group is: • • • • Description (Name) Correspondence data Consolidation ledger assignment Assignment of underlining consolidation units or consolidation sub-groups A list of the consolidation group and units is shown below: Cons group / subgroup CG1000 Cons group desc Cons unit 1000 4200 4500 3400 3500 6300 CG5100 CG3000 CG3300 CG4100 CG5100 CG3000 CG3300 CG4100 CCHK Cons Subgroup CC Europe Cons Subgroup (UK) CC Europe Cons Subgroup (GmBH) CC Cons Subgroup for Keystone Sales 5100 5200 5300 3100 3200 3300 3600 4100 4300 Cons unit desc AAA Corporate US AAA Bbb Canada Starprint Corp AAA Bbb France AAA Bbb Hungary AAA Australia CCHK Cons Subgroup CC Europe Cons Subgroup (UK) CC GMBH Cons Subgroup CC Cons Subgroup for Keystone Sales AAA Bbb HK Ltd AAA Henggang AAA Shenzhen AAA Bbb (Europe) Ltd (UK) Goldline (Europe) Ltd AAA Bbb (CC GMBH) Peter Bauser AAA Keystone Sales AAA Latin America Parent in group/ subgroup Yes AAA Bbb Group Yes Yes Yes Yes 42091003. 3.
13. When consolidation is active. to ensure that all the operating G/L accounts are assigned to group accounts) The FS item code (group account) can be a maximum of 6-digit code. • • • • • Design Highlights Keys design concept highlights of the Consolidation system in AAA are as follows : Direct roll up from local ledgers of different reporting units Ability to support consolidation of companies with different currencies Group currency amount could be directly extract from local general ledger with flexibility to revaluate with specific exchange rates for selected FS items in consolidation Automatic eliminations of most intercompany transactions and consolidation of investment Support direct adjustment postings into consolidation ledger without affecting the local general ledger of each reporting unit 42091003. users are forced to assign a group of account every time when they want to create a new G/L account. Since a single operating chart of accounts will be used for the whole AAA Group. chart of accounts code Descriptions AAA Consolidation Chart of Accounts CONC Financial statement items are actually the G/L accounts in consolidation. there will also be only one consolidation chart of accounts in AAA Group. 3. i. The proposed consolidation chart of account name is: Cons.4.13.e. This is to enforce data consistency and integrity between the operating COA and the group (Consolidation) COA.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Cons group / subgroup Cons group desc Cons unit 4400 Cons unit desc AAA Keystone Graphics Parent in group/ subgroup Note: The consolidation groups are not final due to design issues with the European consolidation and AAA Australia’s change to be a subsidiary of CCHK. The operating chart of accounts in FI general ledger has to be assigned to the consolidation chart of accounts to ensure integration between FI and Consolidation. Each of the G/L accounts in the operating chart of accounts must be assigned to a corresponding group of account to ensure full integration between FI and EC (Enterprise Controlling).3.doc Printed on: 10/16/2010 9:02 a10/p10Page 128 of 147 . The coding logic for the FS items will follow the same logic of the G/L account coding in the FI general ledger and the details of the coding will be determined later. Consolidation Chart of Accounts and Financial Statement Items A consolidation chart of accounts consists of a set of financial statement items which correspond to the G/L accounts in the consolidated book. 3.
For example in CCHK.13. Retained Earning Carried Forward This step is generally the first step of the consolidation procedure in your every month end processing. For the company codes that are not using USD as the local currency. For some specific financial statement items in Consolidation. The process could be done as a single task for all reporting units or could be done separately for each individual units Currency Translation Within AAA Group. ledger balances in USD will be available in all company codes local books. all the USD amount local general ledger balances will be automatically roll-up into the consolidation ledger.doc Printed on: 10/16/2010 9:02 a10/p10Page 129 of 147 . Data Collection Process Generally speaking. The USD amount in the FI general ledger is usually being converted from other transaction currency using an average monthly company rates.5. The system will carry forward the net P&L amount into the retained earning account in the consolidated book for each reporting units. the transaction may have to be done by specific exchange rates. you could choose the following rates for your specific translation needs: Rate type 1001 1002 1003 1004 Description Current exchange rate Average exchange rate Historical exchange rate Current exchange rate prior year The revaluation posting could be done in the Data Monitor as well and the general posting in the consolidation ledger will be: 42091003. the ledger currency is HKD while in CCUK will be in GBP. Both the local and USD currency will be stored. With the help of the integration with FI.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX • Supports data upload for planned versions of budgeting 3. In order words. the parallel ledger currency will be activated in the FI general ledger such that USD will also be stored as an additional ledger currency in the local books of the reporting units. In the standard system. data collection process in Consolidation is the process for collection of financial data reported by individual consolidation units. each of the reporting units will have their own local ledger currencies. This function can be done within a single tool called Data Monitor. This procedure is also a standard feature in EC-CS. This task could be done automatically in Data Monitor.
These also include all P&L item postings associated with the A/R and A/P items. intercompany transactions are being posted to intercompany vendor and customer master record. 3.6. Whenever./Cr. The following figure shows how the elimination is done : 42091003. The balance sheet items being revaluated Cr. In AAA Group. Eliminations will be done in USD currency. the elimination of intercompany A/R and A/P is a feature of automatic elimination in consolidation.doc Printed on: 10/16/2010 9:02 a10/p10Page 130 of 147 . In AAA.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Dr. The trading partners will be assigned to all intercompany vendors and customers master records and hence all the transactions associated with the intercompany vendors and customers will store the trading partners./Dr. The standard SAP system offers automatic eliminations to most of the intercompany transactions. Exchange gain or loss Realized and unrealized gains and losses will be separated by using two separating G/L accounts. A trading partner is a key which is defined to represent each company codes within the AAA Group.13. the automatic eliminations to be done by the system are elimination of intercompany A/R and A/P and consolidation of investment. manual entries are required to be posted into the consolidation ledger. Elimination of Intercompany A/R and A/P With the help of a parameter called Trading Partner. The consolidation will do an automatic pair up of the entries by the trading partners and do the elimination posting accordingly. Consolidation Process Consolidation process refers to all possible elimination and adjustment postings done in the consolidation to come up with the consolidated financial statements. automatic postings are not available. You can do all the consolidation postings in a single tool called Consolidation Monitor.
60 T. you have to get the ending inventory amount that is relevant to elimination of the period outside the system and then manually entered the figure in Data Monitor • On the supplier side.20 60 . ..doc Printed on: 10/16/2010 9:02 a10/p10Page 131 of 147 .60 20 Elimination posting in Consolidation Elimination posting in Consolidation Elimination of Intercompany Profit/Loss in Transferred Inventory This component enables you to eliminate profit and loss resulting from inventory transfers between subsidiaries in your corporate group. you have to manually enter the mark-up percentages of different product groups in Data Monitor. Partner 4100 4100 Item A/R A/P A/R A/P Unit 4100 4100 5100 5100 P Unit 5100 5100 4100 4100 Amt . 42091003... currently the materials data that is relevant for the elimination cannot be accessed by means of integration with the logistics and the product costing modules..Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX CC Group CCUS (4100) Item A/R . A/P Amt 60 .. ... A/P Amt 20 . However. After entering the required data. The overall mechanism of the elimination could be summarized as follows: • You define a pair of supplier and purchaser relationship between two reporting units within the group by means of manual data entry done in Data Monitor • On the purchaser side..20 T. Partner 5100 5100 CCHK (5100) Item A/R . elimination posting could be done in the Consolidation Monitor.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX It is confirmed that a customized report will be developed to provide the information of transferred ending inventory values that the relevant mark up amounts in each branches such that users could entered the relevant data for elimination run or directly post an manual elimination document. However. The adjustment entries have to be posted to a certain posting period of the consolidated ledger and therefore the adjustment is only valid to the period being 42091003. Such entries may be required in the following scenarios: • Manual adjustment of reported financial data. Therefore the major function of consolidation of investment in AAA will be the elimination of subsidiary investments. the book value of the investee at the time of acquisition have to be entered manually into the system in Data Monitor • Once the data is entered. Highlights of this function are listed below: • The relevant information for elimination including the percentage of ownership. the best way is to do the adjustment in the relevant local general ledger and roll up the adjustment into the consolidated book • Manual elimination posting that cannot be automatically generated by the system • Adjustment entries that are done in the corporate consolidated level The concept of the manual posting is exactly the same as the voucher posting in the general ledger. instead of doing this. investment amount paid by the investor.doc Printed on: 10/16/2010 9:02 a10/p10Page 132 of 147 . This is used to adjust the amount roll up from the FI general ledger. all the company units are wholly owned by the corporate. • The elimination posting will be automatically generated by executing the posting run in Consolidation Monitor Manual Adjustment Posting Manual journal posting into consolidation is possible in SAP Consolidation system. Consolidation of Investment The major features of consolidation of investment in SAP include: Automatic generation of elimination postings of investment in subsidiary for first consolidation Calculation and posting of minority interest for subsidiaries that are not wholly owned Automatic postings for subsequent change in investment for join venture Amortization of goodwill In AAA Group. it will be stored for future postings and no further entry is needed.
The consolidated financial statements are usually defined and customized by report painter or report writer. The detailed requirements and layouts of the consolidated financial statements will be defined and confirmed later. If similar or even the same adjustments has to be done in the next period. users have to post a separate voucher in the next period. 42091003. Consolidated Financial Statements The consolidated financial statements are the final products of the whole consolidation procedure. However in standard SAP R/3 system. All the manual adjustment postings done directly into the consolidation ledger will not have effect on the local general ledger of each reporting units in FI.doc Printed on: 10/16/2010 9:02 a10/p10Page 133 of 147 . there is no pre-defined format of consolidated balance sheet and income statement because the format required may be varied according to different requirements.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX adjusted only. Both tools are standard user-friendly reporting development tools in both FI and CO modules.
Cost summary report with layout and presentation specific Net Billing Report to reconcile Consolidated Financial Statements with applicable consolidated PA reports by customer and by product. CCWK CCHK. CCWK VAT Report for EU and non-EU Countries Remaining useful life of moulds and tools Net Billing Report Consolidated Reconciliation Report with CO-PA Breakdown of mark-up cost and inventory cost for intercompany inventory transfers Product cost estimate internal summary report Required tax reports to government to show VAT charged or paid for EU and non-EU countries. A report of production usage frequency and components produced of tooling and moulding asset (linkage 23 4 5 6 61 3 CCHK.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 4. CCWK CCHK. CCWK CCHK Product cost estimate with special scrap rates 108 Production usage of tooling and moulding asset 42091003. 4. Monthly report to list out the Branchs’ ending inventory values that and mark-up costs in intercompany transfers so that elimination of the mark-up could be posted in consolidation Product cost display with the exact layout as the current “internal summary” cost report prepared in Excel.doc Printed on: 10/16/2010 9:02 a10/p10Page 134 of 147 . CCSZ. CCSZ. CCUK. Reporting More than 100 standard reports are available on-line and real-time in SAP. CCWK CC Corp CCHK. CCSZ. This is a separate ad hoc report that is seldom run. CCSZ. This report should also support printing of cost estimates for Net Billing purposes with special currency translation requirements specified by the users A report similar to the internal summary report with similar layout but will be able to convert the scrap costs into specific scrap rates defined by the users.1. CCSZ. 20 21 TBD 22 TBD Reporti ng Units All Branches All Branches All Branches All Branches Report Name Global Vendor Aging Report Global Customer Aging Report Global Credit Report AR Aging Report with Reason codes Description Global Vendor Aging Report shown in group currency Global Customer Aging Report shown in group currency Global Credit Report for common legal entity customers across all Reporting Units AR Aging Report with Reason shown in local and group currency CCFR. All other reports will be addressed after Conceptual Design Sign-Off. List of To-Be Reports Ref. Quarterly report to analyse remaining useful life of moulds & tools based on the projected demands for products produced by the moulds. CCGmbH CCHK. A selection of standard reports to be used will be done. The report list below addresses reports that have been specifically identified to cover gaps in the functionality of SAP to meet design requirements.
and include the dimensions of actual.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Additional reports requested have been added to the Project Customization Inventory: a) Sales Statistics Reports has been added to the Report Inventory under the SD module b) Cash paid for interest expense and income taxes. and Global Inventory Returns Report with Reason Codes should be assigned to the MM or FI modules in the Report Inventory d) AR Aging with Partial Payments Detail has been added to the FICO Report Inventory e) Provision of high risk / obsolete / discontinued product inventory as well as ending inventory projection per month / quarter or per any specific month-end closing f) Estimation of labour overhead absorption per month / quarter or any specific month-end closing for the projected ending inventory g) Standard cost LOH absorption calculation per production. per shipment and per ending inventory based on actual performance and comparing to the budget and last year actual. budget. by product group. G&A and freight out expenses report j) Age gross receivables. i) Selling. SRA’s and COGS have been added to the Report Inventory under FICO c) Confirming whether Global Inventory Aging Report with Reason Codes.doc Printed on: 10/16/2010 9:02 a10/p10Page 135 of 147 . etc. by customer. h) Material variance analysis – by product. and Product group summary on a consolidated basis of gross sales. allowances and rebates. returns provisions and calculated net receivables k) Freight in expense analysis report 42091003.. forecast.
CCWK. units sold. CCHK. Enhancement (user exit) in general ledger to set up a validation in CC France to ensure that financial posting at the end of June are not posted in AAA’s new fiscal year. Enhancement Essentia l 10 Form Essentia l Flat file with electronic payment data – multiple formats depending on country requirements Check Layouts For check printing to pay vendors 11 Form Essentia l Customer Statements Correspondence to customers on financial status and payments due Statutory and local GAAP financial reports Enhancement (user exit) in product costing to apply fix amount quantity overhead (i.e. CCGmbH All Branche Form Enhancement Essentia l High 42091003. CCUK.doc Printed on: 10/16/2010 9:02 a10/p10Page 136 of 147 . CCHK. royalty and the fix rates in Net Billing) per unit of finished goods output quantity To report to the government sales amount. Output of Electronic file from Auto Payment run.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 5. estimated 12 1 Form Enhancement Essentia l Essentia l Financial Statements (7 versions) Customization in quantity overhead allocation in product costing INTRASTAT Reports Gross & Net Receivable 14 TBD CCFR. 7 Reporti ng Units CCSZ. 8 CCFR Enhancement Essentia l 64 CCUS. CCWK Customizati on Type Enhancement Priority Essentia l Description Variable field move exit in special purpose ledger Validation exit for posting in FIGL Purpose Enhancement (user exit) in special purpose ledger to update the country specific G/L account numbers for CCSZ for calendar year financial reporting. List of Customisations The following items may be customised and the priority needs to be confirmed: Ref . CCFR. CCHK. CCGmbH CCUK CCUS. CCFR. CCFR. CCGmbH CCUK All CCSZ. CCGmbH CCUK CCUS. and weight by customer To create a report on gross receivables.
Reporti ng Units s CCUS All CCHK Customizati on Type Priority Description Customer Analysis Purpose allowances. returns and bad debt.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Ref . and net receivables by customer Required tax report to US government on payment to independent contractors Correspondence to customers to remind them of outstanding payments To notify vendors quickly of rejected goods so that they will pick them up promptly 13 TBD 9 Form Form Enhancement High Low Low 1099 Tax Reports Dunning Letters Automatic creation of Debit Note once vendor goods have been rejected Note: These customizations are pending the executive steering committee's final decision on approval and priority. 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 137 of 147 .
published rates (incoming) Note: These customizations are pending the executive steering committee's final decision on approval and priority.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 6. 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 138 of 147 . 15 17 62 63 16 18 19 Priori ty High High High High High Medium Low Customization Description Outgoing electronic payments to Hexagon system at HSBC Sending Positive Pay File to Bank to confirm checks from vendors (interface with HSBC Hexagon system) Payroll from ADP to SAP for CCUS Payroll from in-house program to SAP for CCHK and CCWK Incoming Bank Statements for reconciliation with SAP bank accounts (interface with HSBC Hexagon system) D&B Credit Interface to SAP for customer credit history information Auto-update of foreign exchange table with Wall St. List of Interfaces The following items may be customised and the priority needs to be confirmed: Ref.
The target date fo closure January 23rd. allowances.). The project team successfully populated the G/L AR reserves line item with the customer number. Dec. This will be addressed again during the Implementation Phase. Stanley and Janet to communicate and discuss response with Larry for closure by Wed. Janet. price protection allowances. provisions. discounts. Brian and Larry are working with the SD team to review these bookings in SAP. Outstanding Items/ Decisions The following section lists the major outstanding Finance issues where resolutions are being discussed and finalized. cogs. Stanley and Janet to communicate and discuss response with Larry for closure by Friday Dec. as applicable. 8 9 HK00099 2 HK00046 3 HK00030 Proposed solution for showing breakdown costs of Assortments Proposed solution for booking Stanley demonstrated how internal orders can be used on Dec. T target closure date is TBD. 10th. returns. Requires system customization. /Comm. Brian is working with Larry and the Controllers to close this item by the end of January 2004 Brian and Stanley are working with Larry and the Controllers to close this item by the end of January 2004 Brian is working with the Business Warehouse team and Business Representatives to close this item by the first week of January 2004. 1 2 3 4 XRef. Explanation on frequency of entering manual entries against the Consolidation Ledger as a substitute for entering manual entries in an Elim Consolidation Unit Internal order usage explanation. Investigations will continue to determine the effort required to create customized report to meet the requirements. (Closed) 7 N/A (See #10) Decided to create a dummy Consolidation Unit for t historical balances that exist in the Elim company to avoid monthly manual entry. 3rd. Ref . The SD team is continuing to work out the solution intercompany sales. Subsequent to this demonstratio Paul requested more details on the functionality of tracking capital and operating expenses in the Investment Management module. and inventory. etc.doc Printed on: 10/16/2010 9:02 a10/p10Page 139 of 147 . A partial resolution has been defined for assortments to world-wide customers. at the customer and product level. The SD team is continuing to resolve the final detai 42091003. Log N/A HK00095 0 N/A HK00075 1 HK00073 9 Issue Description Finalization of Global Operating Chart of Accounts Finalization of the Group Chart of Accounts for Consolidation Finalization of characteristics and values for Profitability Analysis Configuration of Peter Bauser Action Item 5 6 HK00075 2 HK00095 1 Methodology for recording and analyzing . and the related balance sheet items of gross receivables. allowances (and rebates.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 7. Decision on whether all configuration for active companies should be set up for Peter Bauser. 5th .
XRef. Accentu is seeking an IM expert to demonstrate the detailed functionality of IM to meet these requirements. Log 8 Issue Description returned goods Action Item 10 HK00111 5 Depreciation simulation for future assets & collection of capitalized costs vs. Dec. FICO team will work with the Supply Chain team to ensure that all SAP organizational structures are se up appropriately for Latin America. Stanley and Janet to communicate and discuss response with Larry and Rick the advantages of using Internal Orders vs. The target date for discussion/communication is Wed. (Regional) Pty. Janet/Stanley are investigating the details of any technical limitations on creating the requested repo David Wand.doc Printed on: 10/16/2010 9:02 a10/p10Page 140 of 147 . Investment Management t meet these requirements. expenses in a project 11 HK00112 3 Consolidated FI Statement for all of Europe 12 13 14 HK00063 8 HK00108 4 HK00075 7 Mapping of freight activity codes to accounting Add Latin America as an active company code Finalize whether AAA Bbb Aust. This is to be confirmed.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Ref . 42091003. is a subsidiary of CC HK. Patrick Lee and Nancy Ling are workin out the details of these requirements. Any applicab G/L freight accounts will be added as needed. 3rd. Ltd is a subsidiary of CC Corp or CC HK of the proposed solution to use the World Wide Cod to determine the inventory value for returned good The current proposal is to use bar-code technology that will have the intelligence for the world wide cod and serial numbering. Stanley and Janet to communicate and discuss response with Larry and Rick for closure by January 28th. Closed: E-mail from Harlan Press confirmed that CC Aust. Two meetings were held to discuss above. The bar code will be applied the batch level to track the inventory. /Comm. Value added service expenses will be booked separately from th returned product cost in a cost center.
doc Printed on: 10/16/2010 9:02 a10/p10Page 141 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 8. Annexes 8. Annex 1: Cost Center Hierarchical Structure Legend Functional Sub Group Number Group Administration Admin & Human Resources 99 Administration 99 Executives 91 Finance 96 Human Resources 99 Information Technology 95 Legal 94 Public Company 93 Engineering Design Engineering 10 US Design 11 US Production Design 12 Project Management 20 Quality Engineering 40 Production Engineering 30 Production Production Line 4X Supporting Service 49 Sales Marketing 20 Sales 10 Sales Personnel 00 Supply Chain Bonded Warehouse 32 Customer Service 44 Material Control 49 Order Fulfillment 50 Packaging & Repacks 52 Planning 11 Purchasing 20 Return Processing & Warranty 51 Shipping 40 Store 31 SZ Export 45 Warehouse/Storage 33 WK Export 46 Customs Service 48 Supply Chain 30 Shipping Export unplanned 41 Shipping Import unplanned 42 42091003.1.
doc Printed on: 10/16/2010 9:02 a10/p10Page 142 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 42091003.
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX CCC CCCA CCFR Administration Admin & Human Resources Executives Non-Officers Officers Executives Finance Accounting Financial Planning & Analysis Tax Treasury Finance Information Technology Network Spt SAP Information Technology Legal Public Company Administration Engineering Design Engineering US Design Photo Evaluation Software Systems US Design Sales Marketing Sales Sales Personnel Supply Chain Supply Chain Administration Admin & Human Resources Finance Information Technology Administration Sales Marketing Sales Sales Personnel Supply Chain Customer Service Order Fulfillment Packaging & Repacks Planning Return Processing & Warranty Supply Chain Warehouse/Storage Administration Admin & Human Resources Finance Information Technology Administration 110-79900 10-79101 10-79102 10-79100 10-79601 10-79602 10-79604 10-79605 10-79600 10-79501 10-79502 10-79500 110-79400 110-79300 110-79901 110-61000 10-61101 10-61102 10-61103 10-61100 110-52000 110-51000 110-50009 110-33000 142-79900 142-79600 142-79500 142-79901 142-52000 142-51000 142-50009 142-34400 142-35000 142-35200 142-31100 142-35100 142-33000 142-33300 134-79900 134-79600 134-79500 134-79901 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 143 of 147 .
Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 42091003.doc Printed on: 10/16/2010 9:02 a10/p10Page 144 of 147 .
Finance Requirements 42091003.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 8.doc Printed on: 10/16/2010 9:02 a10/p10Page 145 of 147 .2.
Ability to view open and paid items on-line.g. purchase orders or invoices. Allow for the identification of tax exempt items. Ability to view purchase orders on-line. and voucher number. Provide inter-company. Provide a real-time interface with the Inventory system. System automatically assigns a vendor number. X X Yes Yes Yes Yes* * SAPScript form needs to X X 42091003. Provide a real-time interface with the Purchasing system. Ability to view current and YTD activity on-line by account. inter-divisional processing and transferring.Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX Accounts Payable Ref # AP-1 AP-2 AP-3 AP-4 AP-5 AP-6 AP-7 AP-8 AP-9 AP-10 AP-11 AP-12 AP-13 AP-14 AP-15 AP-16 Requirement Ability to add new vendors real time. Vendor lookup by name. On-line access to vendor information (e. Display historical vendor payments in chronological order. Ability to auto-assign a vendor. balance due information. Support user defined posting cycles. address or vendor number.doc Printed on: 10/16/2010 9:02 a10/p10Page 146 of 147 . Nice Not to Impor Requirement Requirements Addressed Must Have Have tant Comments in the Current Design? X X X X X X X X X X X X X X X X Not used due to HK volume Not used today Not in Phase 1 scope Not used today Not in Phase 1 scope Not used today Not in Phase 1 scope Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes* Customisation is needed for output of check information as an external file via DME (and subsequent provision to bank) Yes X AP-17 AP-18 AP-19 AP-20 AP-21 Provide features to facilitate off-site check printing. Allow transactions to be posted to a subsequent period before the current period has been closed. Share the vendor file with Purchasing and Inventory. customer. Provide automated 3-way matches of the invoice. Post G/L either in detail or summary. Ability to combine a user-defined batch of invoices into a single check for a vendor. Produce a discrepancy report to identify unmatched receiving reports. purchase order/requisition and receiving report.
doc Printed on: 10/16/2010 9:02 a10/p10Page 147 of 147 .Global SAP Implementation Program – Phase One Prepared by: Finance Design Team Conceptual Design Document – Finance & Controlling Approved by: XXXXXXX 42091003.
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