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Spectrum Products BRD - Ver 1.0
Spectrum Products BRD - Ver 1.0
This is a golden opportunity for those who want to become an SAP consultant.
ZettaMine Labs Pvt Ltd, Hyderabad will help for your Career Transformation to SAP. ZettaMine
has strategic tie-ups with leading IT MNC companies for SAP Projects execution for our SAP
consultants. Now, you read on for details.
SAP is a 26.5 Billion USD company. SAP has been in the market for around 46 years. As per
Forbes Global, in the world’s Top 2000 companies, about 92% are SAP customers.
(https://www.sap.com/corporate/en/company.html). About 80% of Fortune 500 companies
use SAP applications as per Google search.
SAP has introduced S/4 HANA in 2015. This is a high performance ERP system.
Worldwide there are around 65,000 SAP installations across various industrial verticals like
Pharmaceuticals, Chemical and Paints, Foods, Automobile, Consumer Durables, FMCG,
Industrial Products, Oil & Gas, Healthcare, Retail, Banking, Insurance, Airlines, Aerospace,
Railways, Gems & Jewellery, Media, Mining etc. Currently these companies are using SAP ECC
6.0 version. SAP has announced that they may not support the ECC version beyond 2025 and
has recommended that all existing SAP systems to be migrated to or re-implemented in S/4
HANA. This has resulted in a huge demand for SAP consultants.
However, the IT companies do look for good expertise in SAP from prospective consultants and
mere training alone generally does not meet this need of IT companies. We have come across
many people who are trained in SAP, attended many interviews but still not getting a job offer in
SAP. This is mainly because, SAP is an integrated ERP system and manages many business
functions / transactions concurrently in real-time business applications involving a spectrum of
departments like Finance, Costing, Sales, Logistics, Purchase, Production, Quality,
Maintenance etc. Hence mere training in one of the SAP modules alone does not give enough
knowledge and content to become a SAP consultant generally.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
ZettaMine Labs Pvt Ltd, Hyderabad has designed and come out with a unique “Career
Transformation Program” in SAP. Our SAP associates undergo Up-skilling on 3 SAP projects to
become a good, professional SAP consultant. (This methodology was evolved in consultation
with our client companies working on real-time SAP projects for international clients).
❖ SAP Implementation Project* (end-to-end)
❖ SAP Support Project*
❖ SAP S/4 HANA Migration Project*
* These simulated projects are carried out in a 3 system SAP landscape.
These SAP projects will be mentored directly under the guidance of senior and well-experienced
SAP Subject Matter Experts (SMEs) who have international SAP Projects expertise and worked
in MNCs. These experts are with ZettaMine on full time basis.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
The SAP Implementation project will cover the following business processes:
➢ Order To Cash (O2C)
➢ Procure To Pay (P2P)
➢ Make To Warehouse (M2W)
➢ Record To Report (R2R)
Above business scenarios involve SAP Cross Functional Teams (CFT) comprising SD, MM,
PP, FICO, PS and ABAP consultants. At ZettaMine, this CFT team works full time to get a deep
understanding of the various aspects of the business processes and transactions from a realistic
and holistic perspective to gain a good command in business systems and in SAP in their
respective modules.
For the Implementation project, ASAP methodology will be used. The major activities during
the project execution are as below:
➢ Implementation Project Processes (End-to-End):
• Hand over from presales
• Scope understanding
• Kick off
• Project Charter
• Business Requirements Document (BRD)
• Business Blue Print (BBP)
• Fit-gap analysis
• WRICEFP
• Functional Specifications (FS) documents
• Technical Specifications (TS) documents
• Configurations
• Test Scenarios
• Unit Testing
• Integration Testing
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
• User Acceptance Testing (UAT)
• Data Migration
• Cut over
• Go-Live and
• Hyper care
• Customer Interactions and Sign offs
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
The attached documents give the Scope and contents for SAP implementation project for a
virtual FMCG company with international business coverage. This involves Process and
Discrete industry requirements.
➢ Annexure A – Introduction to “Spectrum Products Inc”.
➢ Annexure B – Sales and Logistics requirements
➢ Annexure C – Purchasing requirements
➢ Annexure D – Manufacturing requirements
➢ Annexure E – Finance requirements
➢ Annexure F – Costing requirements
➢ Annexure G – Project Systems requirements – awaited from Spectrum Products.
The end-to-end SAP Implementation project done under the guidance of SAP
experts in ZettaMine, help the consultants to gain rich experience and learnings
from an integrated SAP modules perspective and they are better equipped to work
on SAP projects worldwide.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
Annexure A
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
➢ Argentina
➢ India (4 locations)
➢ Bangladesh (2 locations)
➢ China (7 locations)
➢ Australia
➢ South Africa (3 locations)
➢ Canada
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
➢ Cleaning Products – such as Washing powder, floor cleaner
➢ Frozen Foods - such as meat, ice cream, dairy products, baked goods that require a
temperature-controlled supply chain.
➢ Office Supplies - Consumable office supplies such as paper, pens, file
folders, Post-it notes, toner or ink cartridges
Most of the above products are manufactured by Spectrum Group of companies. However the
management is also focusing on buying lead market brand products from other companies to
increase the market share of Spectrum. These are called Trading products. Spectrum may
directly supply these items from vendors to customers to minimize logistics expenses and lead
times.
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG)
are products that are sold quickly and at a relatively low cost.
• High volumes
• Low contribution margins
• Extensive distribution networks
• High inventory turnover
• High Marketing expenses
• Frequent purchases
• Low engagement (little or no effort to choose the item)
• Relatively Low prices compared to Consumer Durables like TV, Refrigerators, Microwave
Owen etc
• Rapid consumption
Packaging is critical for FMCGs. To become successful in the highly dynamic and innovative
FMCG segment, a company not only has to be acquainted with the consumer, brands, and
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
logistics, but also, it has to have a sound understanding of packaging and product promotion.
The packaging has to be both hygienic and customer-attracting. Logistics and distribution
systems often require secondary and tertiary packaging to maximize efficiency. Unit or primary
packaging protects products and extends shelf life while providing product information to
consumers.
The profit margin on FMCG products can be relatively small, but they are generally sold in large
quantities; thus, the cumulative profit on such products can be substantial.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
Annexure B
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
1.1. Scope of the document
This Business Requirement document (BRD) underlines the processes and activities carried
out in Spectrum Products Sales & Logistics department so that products ordered by customers
are delivered to them by the right date, at right price and ensuring all regulatory compliance
requirements are met.
This document may not cover any production and quality processes in depth specifically,
however the touch points if exists within the process shall be mentioned.
Sales Returns is also covered in this document.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
• Asia Pacific – 1 Million SGD
• Rest of the World (ROW) – 3 Million AED (UAE Dirhams)
Overall credit limit – 5 Million USD
There are some high risk customers. We require tight credit check processing for them.
Australia and New Zealand are emerging markets for Spectrum Products. To penetrate into
this highly competitive and high profit regions, the discounts during order processing, may be
allowed as a special case, even if the respective customers in those regions have exceeded
credit limits. Basically in this region, the sales order may be blocked under credit limit
exceeding but the discounts applicable if any have to be made available to customers.
2. Process Flow
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
envisaged. They shall provide the applicable material code to the person processing the sales
order.
Important: In Material master / Sales Org 1 TAB, Condition button to be removed. (This is as
per email received from SAP AG in Feb 2019 to MD(Sales & Strategy).
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
• Customer and Mobile number
• Goods recipient and Mobile number
• PO Number
• PO Date
• Incoterms
• Payment terms
• Material
• Quantity
• Currency
• Price
• Manufacturing Plant
• Delivery schedule
➢ Customer’s expected delivery dates and quantities as per PO
➢ Proposed delivery dates and quantities (can this be automated in SAP?)
• Mode of shipment
• Delivery hierarchy
• Automatic prices and taxes, and manual prices, other pricing elements
• Partners for the orders (Forwarding Agents, Commission Agents etc) if applicable
• Reason for rejecting entire or partial items.
• Packing
• Total Pricing with detailed breakups
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
The sales order shall be subjected to the credit policy of the company and follow the required
release procedures.
Attaching soft copies of documents like Customer PO to sales order may be needed for orders
of value > 10 million USD.
To meet the customer’s requirements, we need a solution to process for manufactured and as
well trading materials in the same sales document. Whether single material code or two material
codes or different materials codes for different vendors to be demonstrated for the same product.
The sales order details like material, quantity, delivery dates, plants involved etc must be
automatically communicated to production and / or purchase departments to eliminate human
delays and inadvertent manual typo errors. Since ours is a globally distributed company, the
information communication must be internally set by the system, to address different timelines
at which the people work across countries. There must be a provision to monitor the demand Vs
Supply in the new SAP system.
On receiving of duplicate Purchase Order from customer, system should give a warning
message to the order processing executive.
System should not allow to process cancelled or closed orders.
If any item for any customer is restricted (as defined in customer item master) for particular
period, it should not allow to sell the same to said customer.
A few Bulk buyers with presence across multiple countries / metro cities place a consolidated
longterm requirement (may be for 2 years) for large material quantities and negotiate special
price. But the exact period and quantity of their requirement is known generally a month before
only. Spectrum Products top management insists on processing this potential customer
requirements as a strategic OTC scenario since this may help in accelerating their sales
revenues and as well to attract customers from competitors. United Nations(UN) have shown
interest to this type of OTC process when they want to buy huge quantities to supply for under
developed countries thru Red Cross society.
Discount groupings: If multiple discounts are active during order processing, then only one
discount having maximum discount value to be made applicable. Else the Product profitability
gets impacted.
To promote sales, if customer buys material “X”, then if he also orders material “Y” then “Y” gets
special 40% discount.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
For Near-Expiry products:
This is a challenging area because if the products are not sold to customers and consumed
within a very limited period prior to the Expiry date of the product, then the total product quantity
has to be scrapped and this results in a considerable loss to Spectrum Products, more so
especially if the product has been exported and we can’t divert to another region at short notice.
Reimport may incur huge transportation cost and does not worth it at all. Consulting team to
propose a viable mechanism.
High order values:
If the order net value is more than 100 K USD, then the order needs one higher level of review
and approval. Possibilities to be explored without SAP’s Workflow feature.
Sometimes there may be a discrepancy between the stock shown in system for a delivery Vs
the actual stock available physically in the warehouse. In case of shortages and if it is likely to
take a longer time to replenish, then there must be a provision to process the delivery even with
lesser quantities. This is to avoid “Truck waiting” type scenarios in Logistics.
As the goods are removed from the plant the stock in the warehouse to be reduced automatically.
This is an audit requirement and also helps during insurance claims. Some proof of document
for this stock reduction is the need of the hour in the new SAP model.
Over delivery tolerance shall be maintained for delivery. This tolerance is maintained at a
predefined percentage level say 1% only if the Order unit of measure is “TABs”.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
Proof of Delivery (POD) is needed for some customers.
The company spends around 14% of total turnover towards logistic transportation to dispatch
materials across the world. Even a mere 1% saving in this freight amounts results in a big way
in our profits in dollar terms.
Once the deliveries are chosen and decided for dispatch a transportation document to be
created.
The deliveries can be combined for transportation using the selection criteria based on shipping
point, Route, Forwarding agent and many more. Only the deliveries with the same route can be
selected in a single transportation document. Details like different planning / check in / loading
timings are to be captured to identify bottlenecks. The forwarding agent shall be attached to the
transportation document.
All the other freight cost elements are to be captured in the transportation document.
Details of data loggers placed in “Refri” containers to be updated by user in SAP to get a report
from SAP on such details.
2.6. Billing
Commercial Invoice to be created after stock qty per delivery is reduced in system. There must
be a provision to change Payment terms if needed.
There is a requirement that the customer liability is created only after the Airway Bills (AWB) /
Bill Of Lading document is received.
A Proforma invoice is needed for exports. Also in some domestic order processing, customer
requests for Proforma invoice, for making some internal payment reservations / pre-approvals
in their system. Care to be taken to doubly ensure that the Proforma does not impact in any way
either the Accounts Receivables or Credit balances or in simple terms, NO accounting impacts.
There must be a provision to print duplicate or multiple Proforma invoices.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
Commission may be payable for domestic / overseas agents. The sales order shall have the
commission agent as a business partner and the value to be paid may be computed by the
system.
Commission Invoice/debit note is received from Agent by Marketing department. Marketing
Department will prepare necessary commission documents and forward those documents to
accounts department. Accounts department will submit to the Bank for remittance of commission
to Agent.
A report to find out the commission calculated invoice-wise shall be created and the person
processing this payment can validate the value against this report.
Over price commission is payable to customer. This is applicable when the order sourced by
the commission agent from his prospective customer is more than the list price. (Then order
price – list price is paid in full to commission agent. In addition he gets % of net price as agreed
in terms of agreement).
Management is of the strong opinion that sometimes the commission payment process within
the company costs more than the commission payable itself. For instance, from a commission
agent, assuming that 200 sales orders were completely processed upto billing level, then to
compute the commission payable, it is done manually at present – the Commission payable
may be 2800 $, but the company people’s time and resources utilized for this commission
computation is 3450 $ since this is a manual computing exercise now. Spectrum Products
management is looking for a more elegant and effective mechanism. There is a ready-made
software available in the market called “CommDollars”. Can SAP interface to this?. Else any
other proven solutions from the Consultants.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
Important: Whenever Sales schemes are announced to improve sales, Spectrum Products
either gives special promotional discounts and/or give free goods. Sales returns NOT allowed
for this scenario. An effective control mechanism is needed in place, to ensure this.
3. Reports
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
➢ Stock report ( Product-wise/ Plant-wise)
➢ Pending invoices
➢ Sales reporting under 5 levels of Reporting (2+3+3+4+6 sub levels)
➢ Near Expiry products report
➢ A few sales reports as needed by Finance department
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
www.zettamine.com
SAP Implementation Project*
Annexure C
Purchasing Requirements
(Business Requirement Document – BRD)
• For manufacturing and R&D plants, refer to Annexure-A.
Every plant globally has following storage spaces as below
➢ Procurement for Germany plants being done by a central purchasing department located in corporate
office in Germany.
➢ Finalising the Contracts for Global procurements (for any plant located globally) will also be done by the
purchasing department located in corporate office Germany.
•
• In India they manufacture at Hyderabad, Goa, Silvasa and Coimbatore.
➢ Procurements for Indian plants done by a purchasing department located in Indian head
office
Procurement Processes:
The requirements will be originated from each user department.
Mainly for the requirements for ingredients for any product coming from Planning Department.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
Outsourcing is carried out for some products by providing the ingredients to the external supplier.
Also for some materials Procurement happens between Germany and Indian Plants
For external purchase orders an approval process is being followed globally as below:
1. If total net order value of the Purchase Order is below Rs 1 lakh – No approval needed.
2. If total net order value of the Purchase Order is between Rs 1 lakh to Rs 25 lakh - Purchase Clerk and
Purchase Manager has to approve.
3. If the total value is between Rs 25 lakh to Rs 50 lakh - Purchase Clerk , Purchase Manger and Finance
Manager to be approved.
4. If the total value is between Rs 50 lakh to Rs 1 Crore - Purchase Clerk , Purchase Manger and Finance
Manager, and Finance Dy G M to be approved.
5. If the Total order value is greater than Rs 1 Crore then Purchase Clerk, Purchase Manger, Finance
Manager, Finance Dy.GM and Director to be approved.
1. If total net order value of the Purchase Order is below 10K Euro – No approval needed.
2. If total net order value of the Purchase Order is between 10K Euro to 50K Euro - Purchase Clerk and
Purchase Manager has to approve.
3. If the total value is between 50K Euro to 100K Euro - Purchase Clerk , Purchase Manger and Finance
Manager to be approved.
4. If the total value is between 100K Euro to 1 Million Euro - Purchase Clerk , Purchase Manger and Finance
Manager, and Finance Dy G M to be approved.
5. If the Total order value is greater than 1 Million Euro then Purchase Clerk, Purchase Manger, Finance
Manager, Finance Dy.GM and Director to be approved.
After releasing the Purchase order, the output to be transmitted to the Supplier
If any change done in the order quantity , then the changes to be tracked and it should be subject to release as
per above approval process.
After the release again new output to be issued to supplier with this change.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
The output for changes, should also have an indicator “U” with 16 size Bold beside of line item, for a quick
reference to Supplier.
The logistics needs of the plants in India and Germany are fulfilled by 3rd party logistics provider, hence One
copy of output only with quantity, delivery date and delivery address and supplier details to be sent to Logistics
provider as a hard copy.
A particular external supplier use to offer the below discounts on raw a material used for one of the products,
In case of procurements happening between Hyderabad Plants and Silvasa plant , the delivery charges to be
captured and applied on receiving side.
Procurement of the consumable goods is carried out through purchase orders without any item master in the
purchase order and also with some limit of value and within a year.
In the next year a new set of such Purchase order will be issued to the suppliers.
For some of the semi-finished materials long term agreements we done and whenever those materials needed
separate purchase orders were issued against the agreements.
Business has provided some space in Silvasa plant to few external suppliers to keep their stocks, so that on
need basis the usage will be done for those materials and settled to the used quantity.
Some materials the procurement happens through imports and also indigenously.
Inventory:
The incoming materials which are subject to inspection will be inspected in a separate area and after inspection
only moved to respective stores with respective batch number.
While material movements users will enter the serial numbers mainly for equipments.
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
Once in a month the materials which are expired based on SLED will be moved to a separate storage location
called SCRAP and from there these materials will be scraped. One report is required to show the stock of items
expiring in the next 1 month, 1 quarter.
Physical inventory will be carried out once in a year in all the plants but the plant in Jeedimetla the physical
inventory in a periodic way 3 to 4 times in an year.
Invoicing:
For all the suppliers after receiving the hard copy of invoice the process of payment will start but few suppliers
business settle down to the used quantity and sends the copy of the settlement.
Also a restriction on a supplier – they can only invoice one time in a day.
Services:
Internal civil works, house keeping done thru external services
This document is for use only by SAP Associate consultants of ZettaMine Hyderabad for a SAP
Implementation project*. Business Requirements Document (BRD) ver 1.0
ZettaMine Labs Pvt Ltd, Plot 63 / A, Road No 13, Film Nagar, Jubilee Hills, Hyderabad 500036.
Phones: 6302404814 / 6302404817 / 6302404871. Email: careers@zettamine.com
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SAP Implementation Project*
Annexure D
Manufacturing Requirements
(Business Requirement Document – BRD)
• For manufacturing and R&D plants, refer to Annexure-A.
• In India they manufacture at Hyderabad, Goa, Silvasa and Coimbatore.
• Weekly final planning and Monthly planning are used.
• Some Products made in India are export oriented , those products are not sold in India
or in Asia.
• There are few products required by WHO which are manufactured based on the WHO
required specifications.
• The WHO requirement is taken care at Hyderabad unit.
• Cosmetics are planned for three months production and Fresh foods happen on weekly
basis.
• All the plants in India are running 24*7 and 365 days.
• Plants at Germany are two shifts and 5 day week.
• They have similar manufacturing lines which can be used for multiple products, based
on the load they will plan and execute through one line or multiple lines.
• One of the Plants is equipped with MES, all the Production process is executed through
MES. With new ERP in place they want data should flow from MES to SAP after
completion of production on every day.
• Other than packing materials all raw materials , semi-finished and finished products are
batch managed . All the incoming raw materials are batch managed and are consumed
based on the SLED.
• Finished products are delivered based on SLED.
• Any customer complaint comes they have very good documentation , they can track the
raw materials used in the batch manufacturing along with its batch number and supplier.
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• In Coimbatore plant one of the manufacturing lines is specific to Packaged Goods and it
continuously pack only one product through it. This unit is not compatible for any other
product.
• Sometimes due to machine issues there is quality rejections due to which there is a
necessity of repacking of the finished product .
• Common raw materials are procured based on the previous consumptions and some
other Raw materials are procured based on the bulk requirement.
Packaging Equipments:
• Not only the products, equally if not more important in FMCG are the type and quality of
Packaging. Hence Spectrum management one year back acquired a Packaging
equipments unit in Spain.
• Some of the Packaging equipments are manufactured based on the customer orders,
few are available off the shelf.
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• Some of the Packaging equipments are totally out sourced under their strict quality
control department super vision, raw materials required are being supplied by the
Company.
• Some of the components that get into off the shelf products are having planned 2%
extra to take care of operational and assembly scrap.
• All the Packaging equipments are serial number managed and are having warranty.
• In all the units they have excellent product cost tracking mechanism using excel sheets.
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Annexure E
Finance Requirements
(Business Requirement Document – BRD)
1. Key Policies/Operational Decisions or Logic within the Process
1. All Invoice processes will be executed based on PO – Purchase Orders generated from different user
requirements. The Invoices will be received from the Vendor and as per the PO agreed terms, the invoice
will be booked in SAP. Any difference between the PO and Invoice will be settled through Debit note or
Credit note generation.
2. All the Vendor Invoices will be paid in two methods – Full Payment and Partial Payment
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m. Design of GL accounts should be done so that it should support all the Statutory reporting of Companies
Act, IFRS reporting and MIS reporting.
n. System to be designed such that, all locations of the Organizations should be at same systematic format
in terms of Process and reporting
o. Separate Profitability Statements need to be generated for
a. Direct sales from Factory
b. Distributors
c. eSales
p. Since HR-Payroll module implementation is in Phase-2, we have to post the salaries through Finance
module only bifurcating into 2 ways.
a. Direct and Indirect
b. Categories like Executive, Workmen, Casuals, Apprentices, are addressed.
q. Multiple Investments and Loans to be considered a sub-ledger which will be grouped and represented in
Financial Statements
r. Employee specific phone numbers can be booked under Employee ledger only. We should be able to
search for employees based on their phone No. Organizational Specific phone numbers can be booked
directly (NOT under employee ledger)
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5) Good Receipts and Invoices Clearing process should be executed automatically using a field for reference
information
8) As a part of Internal control one level should be for Finance team for the release of the purchase order.
An abstract of PO released at the end of each day may be sent as information to key persons concerned.
9) All the employees to be considered as Vendors and the loans and advances to be considered through the
finance module
Reporting Requirements
1) Vendor ageing report based on due date/Posting Date / Document date wise at Business Segment level
and Legal entity level.
2) Import Purchase and Domestic Purchase Register
3) Vendor Balance confirmation
4) Open and cleared item report
5) Cheque printing
6) Payment advice
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7) Employee open and cleared item report
Vendor bill passing process
1) Imported raw material purchase
Currently the invoices are directly posted
The inventory account for import and domestic material should be different, here the material code is
single.
Example of expenses:
The GRN process of PO is not being followed for receipt of capital goods, at the time of passing the Vendor
bill Finance entry is passed for debiting the CWIP and crediting to Vendor
7) Stock Transfer
Currently stock is transferred between the factories and there is no financial impact in the system.
Process Inputs
1. Good Receipt Document
2. Customs Invoice
3. Raw Material Invoice
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4. Freight Invoice
5. Vendor Invoice for services
6. Sub-Contracting Invoice
7. Vendor Invoice
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5) Sales report
6) Customer ageing report
That entries should be available for the cashier to see and make the payments and at that time only the
cashier should post the documents in the system
2) When transferring the cash from bank or from bank to cash the amount should not exceed the policy
amount of cash transit insurance. Second check required is single amount also should not exceed to some
specified amount, the single cash payment check should be controlled through the Bank standing
instructions. The limit is different for different locations
3) The cheque no. should be proposed by system automatically.
4) Currently all the RTGS are through manual instructions and it needs to be routed through the auto e
transfer processes.
5) E-receipts to be configured in system for bank receipts
6) Here the expectation is to process the entire bank receipts at corporate office level based on the inputs
from BANK through some e file and get all the payments posted in SAP and after that intimation can be
sent to all regarding the receipts of payments
7) The incoming cheques should be entered at the time of receipts of cheques from Customer in a different
control account
Once it is clear then the balance from that control account should be shifted to the normal Customer
balance.
13) Validation to restrict maximum amount: As per Income Tax Act we need to do Cash Transactions up to
Rs.20000 for each account
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14) if Posting date is past date, means system should only allow the current date (system date) to post the
transactions
Reporting Requirement:
1) Cash Voucher
Reporting Requirement:
a. Asset Balance report
b. Asset Master Data report
c. Asset History sheet
d. Depreciation report as per companies act and Income Tax
7. Month End and Year End Closing Activities - Business Expectations / Aspirations:
1) Expecting most of the closing activities to be automatic
2) Even for manual activities, expecting the ready reports which automatically calculate the amounts to
be posted
3) Ability to get real-time financial statements at any time during the month – not necessarily at the
end of the month
Annexure F
Costing Requirements
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(Business Requirement Document – BRD)
1. Overall Expectations:
a. Though all the units are having dedicated power lines , Hyderabad unit is having power problem
recently they have installed 200 MW power plant which is running by external agency under the
supervision on Spectrum Products team.
b. In all the units they have excellent product cost tracking mechanism using excel sheets. SAP is
expected to give more detailed and more accurate analysis and reporting
c. Product group-wise profitability is needed on a monthly basis with trend analysis.
d. Cosmetics and OTC items have huge profit margins in Americas and Europe. Detailed reporting is
needed for comparative analysis
e. Full-fledged financial statements are needed by Business Segments
2. Cost Control:
General
- Complete (100%) absorption of conversion cost into product cost
- Conversion cost reports with monthly cost data and year to date cost data
Department wise planning is required for comp. with actual, The department planning required are
Activity dependent planning for the departments where Activities are there (this planning is at Department + GL
and Activity) and
Activity independent planning where there is no Activity is there (this planning is a Departments + GL)
Plan allocation of cost to be there for allocation of the cost for Activity price calculation
Department actual posting required to identify the following type of cost in different departments:
- Direct
- Indirect
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Utility Costing:
The process of steam and power costing should be done in SAP system and to get the costing of power and
steam respectively
For Power:
1. ELECTRICITY BOARD Department
Here the booking of ELECTRICITY BOARD cost will be there and also the units purchased will be captured,
Here the cost of power generation will be there and also the units generated will be captured
Here the total cost of ELECTRICITY BOARD and Genset will be transferred and the total units generated from
ELECTRICITY BOARD and Genset also captured here as total units
All the allocation of power units should be done from the Total power cost centers
For Steam;
1. Boiler wise departments:
Here the cost of steam generation will be there and also the KG of steam generated will be captured
Here the total cost of all boiler will be transferred, and the total KG generated from boiler also captured here as
total units,
All the allocation of steam units should be done from the Total steam cost centers,
Machine Costing:
The departments to be created at individual machine level to collect the following cost:
Maintenance (Variable) : Can be booked for each machine when the maint. expenses being incurred, it is
feasible to book
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Consumable (Variable): Can be booked in individual departments or it can be booked at common department
process wise and then it will be allocated to individual machines,
Labour Cost:
The cost of Labour is captured process wise and the components of Labour are: Skilled + Unskilled + Supervisor,
(Set of GL for the above group)
Process by the total no. of Labour hours consumed is also there so the labour hour cost is computed by dividing
the total cost with total labour hours,
The idle hours or Minutes to be derived for each process and department and then it need to be allocated from
the production departments to a separate Idle time internal order process by process
Overhead costing:
Stores overhead
Manufacturing overhead
Admin overhead
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The overhead should be based on per KG of of the production
R&D Costing :
The R&D department is divided into Design, Process and Testing Team,
For R&D we can have 3 departments such as New product , New Process, and Monitoring
and 3 Activities based on the R&D Team such as Design, Process and Testing
For new product development : As and when we get the request from customer for the new product
development , we can book the actual time of each team by way of allocation of hours from New product
development departments with respective Activity as per the actual hours worked
For new process implementation: The new process implementation is for the existing production facilities so the
cost of such should be borne by the department of that process, so to do that the actual hours can be allocated
from departments of New Process Implementation with required Activities
For monitoring : The monitoring activity of R&D is common for all the processes; hence the time invested for
monitoring will be allocated to the Overhead departments of respective plants, for the Monitoring cost centers
of R&D
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Other costs
• Statistically capturing of the cost for different heads and different locations
• R&D to capture the New Product Development Expenses
CAPEX
• All the CAPEX expenses should be captured
• Budgeting control through the system – if budget exceeds, system should stop it
3. Product Costing
New Products
These new product costing should be done through SAP System. Here we should have all the features of
calculation and SAP data as well to compute the new product pricing
Detail of the process wise and product i.e. SFG And FG costing structures is needed
- For all the RM there will be a fixed rate maintained in a separate field
- Separate costing will be there for taking the cost from that separate field and latest available BOM
- On executing the costing run we get the changed cost if there is any change in the BOM of any product,
Variance Reporting
The variance report should be available in following breakup:
- Price variance
- Quantity variance
- Usage variance
The rework cost should be identified and expensed out for that finished materials, which should be captured for
reporting purpose
Process
1. On creation of the production order the plan cost should be computed and stored in system
2. On production confirmation, the cost of RM and Conversion cost should be booked in the GL and Costing
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3. On Goods receipts of the SFG and FG from production, the accounting entries w.r.t. the inventory value
should be updated in GL and Costing
4. On completion of the production order, system should trigger the variance calculation and posting of the
variances in GL and Costing
4. Inventory Valuation
Raw Material- Moving average price Valued at Weighted average cost method.
Local Cost for this purpose includes Purchase price of
Raw Material net of discounts, Freight and Non-
Vatable Tax
Raw Material- Moving average price Valued at Weighted average cost method.
Imp Cost for this purpose includes Purchase price of
Raw Material, Freight and Non-Vatable Tax.
Foreign Currency rate is based on custom
department notification.
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Finished Goods Valuation is at standard cost Valued at Weighted average cost method.
however the valuation principle is Cost for this purpose includes Standard
same as in the current practice BOM@Opening weighted average rate of Raw
Materials at the beginning of the month in the
respective plants plus standard conversion cost
Trading goods Moving average price Valued at Weighted average cost method.
Cost for this purpose includes Purchase price of
Raw Material net of discounts, Freight and Non-
Vatable Tax
Spares and Moving average price Valued at Weighted average cost method.
Consumables Cost for this purpose includes Purchase price of
Raw Material net of discounts, Freight and Non-
Vatable Tax
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Contribution Marginal costing contribution Contribution
Reporting reporting is required: reporting is currently
Sales: done outside the
Less: Variable cost system
Contribution
Less: Other cost
Gross Profit:
Detail Contribution statement as
currently being prepared is
attached for reference purpose,
however a more detailed
version of contribution reporting
is expected from SAP
- Extensive checking of the contribution reports after weekly sales and invoices will make the report more
accurate.
- Once the other month end activities are completed then we need to allocate the marketing related
expenses
- Multi-dimensional profitability reporting is needed
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- Detailed contribution margin reporting is possible as we can break the total cost in the various
components of cost
- Splitting of the total MAP cost is required i.e. let’s say 265/- to be split into RM Cost, Conversion Cost and
OH cost
Format for the reconciliation for profit would be as under;
Particulars Location-1 Location-2 Total
Revenue
Other Income*
Total Revenue
Variable Cost
Raw Material
Sub-contracting charges
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Consumables
Spares
Power
Fuel
Freight out
Warranty
C&F commission
Interest-WC
Total - Variable
Contribution
Fixed Cost
Salary-all category**
Advertisement
Sales promotion
Travel-Domestic
Admin Expenses
EBITDA
Depreciation
Interest-TL
OTHERS
OPC
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EBT
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Annexure G
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