Business Blueprint Document

Module Financial Accounting

Process Master Data Maintenance
Document Number
Version 1.0

1. Scope

2. Brief Description

SGX is maintaining the 6-digits GL Master Data, 5-digits Vendor and Customer Master Data and Serial
Numbers for Banks and Assets Master Data. First digit is C/D/G for Creditor, Debtor and General.
Second one for the first letter of the Description

3. AS – IS Process

3.1 General Ledger Accounts Master:

Codification of General Ledger Accounts is as follows

SGX has 6-digit alphanumeric Group coding structure.

Code Particulars Number Series
1 Liabilities GXXXX to GXXXX
2 Assets GXXXX to GXXXX
3 Income GXXXX to GXXXX
4 Expenses GXXXX to GXXXX

Account code logic:

Digit Description
1 Nature of Account-G/C/D/Emp.
2 Name Identification of particular account
345 Running number under group code for
Income/Expense/Assets/Liability.
6 Sub Ledger for Vehicle / Telephone number wise.

GL Codes for which Employee Sub Ledgers are there are flagged separately. Separate Master for
Sub Ledgers are maintained GL Code + Employee number.

3.2 Vendor Master:

SGX is maintaining 5-digit alphanumeric code. In master type, there are General vendor (HR
Supplier and Contractor) and petty vendor.
Account code logic:

Digit Description
1 ‘C’ for Creditor
2 First Letter of Name
345 Numeric Serial Number in the series of 1 + 2

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Module Financial Accounting

Process Master Data Maintenance
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3.3 Customer Master:

SGX is maintaining 5-digit Alpha Numeric code.

Account code logic:
Digit Description
1 ‘D’ for Debtor
2 First Letter of Name
345 Numeric Serial Number in the series of 1 + 2

3.4 Bank Master:

Simple Master Data for Banks are maintained in SGX, those Banks are the following.

State Bank of India – IFB Branch, Vadodara.

Bank of India – Raopura Branch, Vadodara.
State Bank of Mysore, Main Branch, Mumbai.
State Bank of India – Gotri Branch, Vadodara.
State Bank of Travancore, Ashram Road, Ahemdabad.
Federal Bank, Productivity Road, Vadodara.
State Bank of Hyderabad, Akota, Vadodara.
Canara Bank, Tamarind Lane, Mumbai.
HDFC Bank
Axis Bank ……….etc.

Bank Reconciliation is done in a separate module by importing Bank Book from FA and punching
Bank Statement. Bank Charges and additional debit and credit entries in Bank statement are
made in Financial book through journal vouchers.

3.5 Asset Master:

SGX is Maintaining G/L accounts for each category of assets.

Classification of Assets
The Asset Classes are maintained in Asset Management System in the following manner:

 Leasehold Land
 Freehold Land
 Leasehold Building
 Freehold Building
 Computers
 Furniture & Fixture
 Machinery
 Plants
 Vehicles
 White Goods (Household Articles for Senior Management)

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Module Financial Accounting

Process Master Data Maintenance
Document Number
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3.6 For any other point refer the FAS Document.Doc which is annexed.

4. Special Organizational Considerations

5. TO BE Process

Business transactions are posted to accounts and managed using those accounts. You must
create a master record for each account that you require. The master record contains data that
controls how business transactions are recorded and processed by the system. It also includes all
the information about a GL/Vendor/Customer/Banks and Assets that you need to be able to
conduct business functions.

5.1 General Ledger Accounts Master:

G/L account master records contain the data that is always needed by the general ledger to
determine the account's function. 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
account.

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

 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.

The following objects play a central role in the creation and management of master records:
o Chart of accounts
o Account group

Chart of accounts:

This is a list of all G/L accounts used by one or several company codes.

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For each G/L account, the chart of accounts contains the account number, account name, and the
information that controls how an account functions and how a G/L account is created in a
company code.

Accounts Group

The account group is a summary of accounts based on criteria that effect how master records are
created. The account group determines:

 The number interval the G/L account is created.

 The screen layout for creating G/L accounts in the company code-specific area
 When you define an account group, you also determine the number interval in which
the accounts of this group must lie. When creating a G/L account, the system checks
whether the number you entered lies in the predefined number interval.
 For each account group, a screen layout is determined, that is, it is determined which
fields are relevant for this group of G/L accounts.

The following Account groups will be maintained:

 SCPL - Share capital
 R&S - Reserves and surplus
 CAST - Current Assets
 CLPR - Current Liabilities & Provisions
 LF - Liquid funds
 EXP - Expenses accounts
 INCM - Income accounts
 FAST - Fixed assets
 RECN - Reconciliation Accounts

Reconciliation Account for Account Type:

 You use this field to indicate G/L accounts as being reconciliation accounts. For each sub
ledger account, you must keep at least one reconciliation account in the general ledger.
When you post to an account in the sub ledger, the system automatically posts to the
corresponding reconciliation account.
 Using the reconciliation account procedure, it is possible to create a balance sheet and a
profit and loss statement at any time, since the amounts posted to sub ledger accounts
are also posted automatically in the general ledger.
 You define reconciliation accounts by specifying in the G/L account master record the
account type (such as fixed assets, vendor or customer) for which the account is to be
used. In this way, the account can only be assigned to accounts in the corresponding sub
ledger. You set the assignment of the sub ledger account to a reconciliation account in the
master record of the sub ledger account. You cannot post to reconciliation accounts
manually.

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Field Status Group:

You use this field to define which fields are displayed when you post accounting transactions to
a G/L account. A field may have one of the following statuses:
o Hidden (suppressed)
o Entry required (required field)
o Ready for input (optional field)

For the purpose of Balance sheet, company can use standard Balance sheet versions. In addition
to that the user can define its own financial statement versions. In these financial statements the
user can make their own groupings. User has to create a group and assign GL Accounts in to that
group.

User can create a number of financial statement versions according to his requirement. When
generating the report one can select the relevant financial statement version and take a printout
also.

Standard SAP provided with Indian version of Chart of Accounts (CAIN), which is duly grouped &
codified as per Indian scenario. It is possible to maintain 4 to 10 digit GL code. So 8 digits GL
code will be used by the SGX. A single chart of accounts 9000 would be created and Company
Code would be assigned to 9000 chart of accounts.

Authorisation to create Vendor master data can be provided to selected person only.

5.2 Vendor Master:

Data in Vendor master records controls how transaction data is posted and processed for a
vendor. The Vendor master record also contains all the data you require to do business with your
Vendors. The master record is used not only in Accounting but also in Material Management. By
storing Vendor master data centrally and sharing it throughout your organisation, you only need
to enter it once. You can prevent inconsistencies in master data by maintaining it centrally.

A Vendor master record contains:

 Vendor’s name, address, language, and phone numbers
 Tax numbers – PAN, S.T . Reg.
 Account control data like the number of the G/L reconciliation Payment methods and
terms of payment set up with the Vendor
 TDS tax details
 Purchase Organisation Area data

In view of the requirements given, it is suggested that internal/external number ranges shall be
maintained for Vendor Masters.

Purchase Department & Finance department will create Vendor master. Following Account
groups & Reconciliation Accounts are to be maintained.

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Module Financial Accounting

Process Master Data Maintenance
Document Number
Version 1.0

Accounts Group
The account group is a summary of accounts based on criteria that effect how master records
are created. The account group helps you to determine
 The interval for the account numbers
 Whether the number is assigned internally by the system or externally by the user (type
of number assignment)
 Whether it is a one-time account
 Which fields are ready for input or must be filled when creating and changing master
records (field status)

The Account groups for Vendors would be:

 Sundry creditors – Raw Material HR Coils
 Sundry Creditors – Raw Material Zinc ingots
 Sundry Creditors – Stores
 Sundry Creditors – Consumables
 Sundry Creditors - Transporters
 Sundry Creditors – Packing Material
 Sundry Creditors – Capital Goods
 Sundry Creditors – Services
 Sundry Creditors - Employees
 Sundry Creditors – One Time

 Please refer MM Module for details.

Reconciliation Accounts:

 You must specify a reconciliation account in the master record so that all postings made to
a subsidiary ledger are also posted to the general ledger.
 When you post items to a subsidiary ledger, the SAP system automatically posts the same
data to the general ledger at the same time. Each subsidiary ledger has one or more
reconciliation accounts in the general ledger. These reconciliation accounts ensure that the
balance of G/L accounts is always zero. This means that you can draw up financial
statements at any time without having to transfer totals from the sub-ledgers to the
general ledger.

Authorisation to create Vendor master data can be provided to selected person only.

5.3 Customer Master:

Data in customer master records controls how transaction data is posted and processed for a
customer. The customer master record also contains all the data you require to do business with
your customers. The master record is used not only in Accounting but also in Sales and
Distribution. By storing Customer master data centrally and sharing it throughout your

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Module Financial Accounting

Process Master Data Maintenance
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organisation, you only need to enter it once. You can prevent inconsistencies in master data by
maintaining it centrally.

A customer master record contains:

 Customer’s name, address, language, and phone numbers
 Tax numbers – PAN, S.T . Reg.
 Account control data like the number of the G/L reconciliation Payment methods and
terms of payment set up with the Customer
 Sales Area data

In view of the requirements given, it is suggested that internal/external number ranges shall be
maintained for Customer Masters.

Sales department & Finance department will create customer master. Following Account groups
& Reconciliation Accounts are to be maintained.
Accounts Group
The account group is a summary of accounts based on criteria that effect how master records
are created. The account group helps you to determine
 The interval for the account numbers
 Whether the number is assigned internally by the system or externally by the user (type
of number assignment)
 Whether it is a one-time account
 Which fields are ready for input or must be filled when creating and changing master
records (field status)
The Account groups for Customers would be:
o Domestic customers
o Export customer
o One time customer
o Institutional customer
o Scrap Customer
 Please refer SD Module for details.

Reconciliation Accounts:

 You must specify a reconciliation account in the master record so that all postings made to
a subsidiary ledger are also posted to the general ledger.
 When you post items to a subsidiary ledger, the SAP system automatically posts the same
data to the general ledger at the same time. Each subsidiary ledger has one or more
reconciliation accounts in the general ledger. These reconciliation accounts ensure that the
balance of G/L accounts is always zero. This means that you can draw up financial
statements at any time without having to transfer totals from the sub-ledgers to the
general ledger.

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Module Financial Accounting

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Authorisation to create Customer master data can be provided to selected person only.

5.4 House Bank:

House Bank will be created for the all-operative Bank accounts.

To be able to run the payment program, the system requires details on your own bank, and
these details can be entered in the customer and vendor master records. In the company code-
specific data of a vendor master record, you could for example enter the house bank from
which payment is to be made to this vendor. If you do not enter a bank in the master record,
you must specify the rules by which the payment program determines the bank. The data that
you enter is the same in both cases - an ID code for your bank.

You define your bank details per company code by entering a three-figure code for each bank.
You can enter a five figure alphanumeric key as a bank ID. Each bank ID is unique within a
company code. For each bank, enter the bank country, and either the bank number or an
appropriate country-specific key. The system uses this information to identify the correct bank
master data. When you define details for the payment program (this necessitates entering the
bank master data for your bank details) you need enter only the bank ID.

In the R/3 System, bank master data is stored centrally in the bank directory. In addition to
defining bank master data, you also define your own bank details (house banks). The bank
directory contains the bank master data.

A bank ID represents each house bank of a company code in the SAP system. In the SAP system,
you use the bank ID and the account ID to specify bank details. These specifications are used, for
example, for automatic payment transactions to determine the bank details for payment. For
banks, you should enter the bank number in the "bank key" field. For every house bank and
Account ID a GL account is assigned. The cheque lots are created for each house bank. There is
an option to mention about the issue of cheques whether to issue sequentially or non sequentially
In general, sequential cheques are used for those banks for which automatic payment is used.

The bank account will be created as House Banks in SAP. The authorisation to create new House
Banks will be given to authorize personnel only.

5.5 Asset Master:

Asset master record contains concrete information about the fixed asset. The following field
groups exist:
 General information (description, quantity, etc.)
 Account assignment
 Posting information (for example, capitalization date)
 Time-dependent assignments (for example, cost centre, Business are)
 Information for plant maintenance
 Information on the origins of the asset
 Information on the Depreciation key’s, useful date etc..

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Module Financial Accounting

Process Master Data Maintenance
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Asset Class:

The asset class is the most important criteria for structuring fixed assets from an accounting
point of view. Every asset has to be assigned to exactly one asset class. The asset class is used
to assign the assets (and their business transactions) to the correct general ledger accounts.
Several asset classes can use the same account assignment. You can see that it is possible to
make finer distinctions at the level of the asset class than at the level of the general ledger
accounts.

The following asset classes will be created:

 Land
 Factory Buildings
 Office Buildings
 Plant & Machinery (Single shifts)
 Plant & Machinery (Triple shifts)
 Tools and dies (single, two, three shifts)
 Furniture & Fixtures
 Electric Installation
 Storage and handling equipments
 Office Equipments (R&AC, Telephone installation)
 Vehicles
 Motor Bus
 Computer
 CWIP

Internal number ranges shall be used for Asset master records.

6. Special Organizational Considerations

 Please refer Annexure A: Business Process Mapping

7. Functional Deficits

None

8. Approach to covering Functional Deficits

None

9. Change Management

None

10. Description of improvement

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 For all Masters Accounts Group will be defined

 Through Reconciliation accounts, sub-ledger will be updated automatically
 Alternate Reconciliation accounts will be used in AP&AR, which are to be shown separately
in General Ledger and Sub-ledger.

11. Notes on further improvement

 In SAP there is always a scope of improvements that will be carried out later as per the
business scenario.

12. System Configuration Considerations

 Every Master Data will contains the Account Group

 Every Account group contains the screen lay out function
 All the Master data will have the internal number assignment

13. Authorization and User Roles

14. Interface Considerations

None

15. Data Migration Considerations

 In SAP all the Legacy Master Data i.e., GL Masters, Vendor Masters, Customer Masters,
Asset Masters and Bank Masters Data are migrated to SAP system either through Legacy
System Migration Workbench or Batch Data Communicator.

16. Reports

Annexure A: Business Process Mapping

Transacti Fitnes Respon Rema Processi

on Code s sibility rks ng
in SAP / system
Activity
D/W/ Authori (SAP,
N/C zation non-SAP
etc.)

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GL Master Creation @ FSS0 D - SAP

COA area level
GL Master
GL Master Creation @ FSP0 D - SAP
Company code area level
GL Master Creation @ FS00 D - SAP
Central level
Vendor Master Creation @ FK01 D - SAP
Finance level

Vendor Vendor Master Creation @ XK01 D - SAP

Master Central level
Change XK02 D - SAP

Display XK03 D - SAP

Customer Master creation FD01 D - SAP

@ Finance level
Customer Customer Master creation XD01 D - SAP
Master @ Central level
Change XD02 D - SAP

Display XK03 D - SAP

Asset Master Creation AS01 D - SAP

Asset Change AS02 D - SAP

Master
Display AS03 D - SAP

Bank Master Creation FI01 D - SAP

Bank Master Change FI02 D - SAP

Display FI03 D - SAP

FI12 D - SAP
House Bank Creation
FI13 D - SAP
Change
Cheque lot creation FCHI D - SAP

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17. BBP Process Sign Off

Organi Key User Process Project Consultant Project

zation Owner Manager (CSPL) Manager
Unit STEELCO (CSPL)

Mr. Darji,
Mr. Praveen Mr. Sunil Mr. Dharma
STEELCO Mr. Sunil Chawla Mr. Rajesh Parker
Lohiya Singhvi Rao. Yekula

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