SAP led S/4HANA Business Transformation

ACI HealthCare Limited

Finance BBP

Business Implementation Partner

Ernst & Young LLP

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Document Control

Name of team members Organization/Business Unit Signature

Mr. Delower Sumon
Mr. Afratul Kawsar Project Manager-ACI HealthCare Limited
Mr. Rezaul Karim Core Team Member- ACI HealthCare Limited
Mr. Nayan Barua Core Team Member- ACI HealthCare Limited
Mr. Soumyendu Sadhukhan Project Manager-Ernst & Young LLP
Mr. Soumyajit Majhi Delivery Head- Ernst & Young LLP
Mr. Arnab Chatterjee FICO lead- Ernst & Young LLP
Mr. Siddhant Khetan FICO Consultant- Ernst & Young LLP

DOCUMENT INFORMATION
Document Category SAP S/4HANA 1909 BBP Document
Document Title Finance
Created By Mr. Siddhant Khetan
Reviewed By Mr. Arnab Chatterjee
Mr. Soumyendu Sadhukhan
Document Status Draft

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BBP – R2R: Organization Structure

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Contents
1. INTRODUCTION ....................................................................................................................................... 5
2. BUSINESS BLUEPRINT OVERVIEW.................................................................................................... 5
2.1 LIST OF ABBREVIATIONS ...................................................................................................................... 6
3. SAP ORGANIZATION STRUCTURE..................................................................................................... 6
3.1 SAP PROCESS OVERVIEW ........................................................................................................................ 8
3.1.1 OPERATING CONCERN .................................................................................................................................... 8
3.1.2 CONTROLLING AREA ...................................................................................................................................... 8
3.1.3 COMPANY ....................................................................................................................................................... 8
3.1.4 CHART OF ACCOUNTS ..................................................................................................................................... 9
3.1.5 COMPANY CODE ............................................................................................................................................. 9
3.1.6 CREDIT CONTROL AREA ................................................................................................................................. 9
3.1.7 PROFIT CENTRE ............................................................................................................................................ 10
3.1.8 BUSINESS AREA ............................................................................................................................................ 10
4. FISCAL YEAR VARIANT ............................................................................................................................ 11
5. POSTING PERIOD VARIANT .................................................................................................................... 12
5. FIELD STATUS VARIANT .......................................................................................................................... 12
6. DOCUMENT TYPES AND NUMBER RANGES ....................................................................................... 14
7. POSTING KEYS ............................................................................................................................................ 16
8. KEY FACTORS FOR PROCESS ................................................................................................................. 18

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1. Introduction
ACI HealthCare Limited, a public limited company, is a subsidiary of Advanced Chemical Industries
(ACI) Limited was incorporated in 18 February 2013 under the Companies Act 1994.
The principal activities of the Company are to be manufacturing and marketing of pharmaceutical
products for regulated markets, especially for USA. With this aim, the company has planned to
establish a state-of-the-art pharmaceutical factory in Sonargaon, Narayanganj, Bangladesh. The
Company has already acquired 1,241.71 decimal land valued at BDT 434,600,000 located at mouza-
Tripurdi, Sonargaon, Narayanganj. The plant will manufacture products for domestic and
international markets.

2. Business Blueprint Overview

This document summarizes the findings of the E&Y consulting team and ACI HealthCare
Limited Team, with respects to SAP S/4 HANA ENTERPRISES 1909 processes to be implemented
in ACI HealthCare Limited. Following activities were carried out during project.
· Business Process Mapping
· GAP Analysis
The information was gathered through above activities carried out during different phases of projects
i.e. reviews of business processes, business procedures, documentation and relevant reports.
The purpose of Business Blueprint document is to prepare and to move forward with the implementation
of ACI HealthCare Limited Group.
SAP SAP S/4 HANA ENTERPRISES 1909 system. At the conclusion of the
blueprint, E&Y consultants will determine the SAP SAP S/4 HANA ENTERPRISES
1909 functionality required to run the ACI HealthCare business.
The Blueprint and its associated appendices present a summarized perspective of all functional
business processes that will be implemented. As such, the Blueprint document will serve from this
point forward the dual role of both official project scope as well as system acceptance criteria.
The body of this document describes the organizational structure, Master Data, and SAP S/4 HANA
ENTERPRISES 1909 functional process flows to be implemented at ACI HealthCare. Generally,
requirements that can be met using standard S/4 HANA functionality through routine configuration
tasks are not explicitly documented. However, certain key requirements are explicitly identified and
summarized to highlight their importance to ACI HealthCare Limited and to document the approach
proposed to meet the requirement.
One section of the document summarizes identified gaps. The project team has discussed this list with
agreement on the approach going forward. Acceptable approaches may require Additional
programming or technical effort.
Recognition and acceptance of procedural changes ("Workarounds") using standard SAP SAP S/4
HANA ENTERPRISES 1909 additional resource commitment.

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2.1 List of Abbreviations

Abbreviation Description
SD Sales & Distribution
Materials
Management/Warehouse
MM/WM Management
FI Finance
CO Controlling
PP Production Planning
PM Plant Maintenance
QM Quality Management

3. SAP Organization Structure

SAP enterprise structure is organizational structure that represents an enterprise in SAP S/4 HANA
system. It consists of some organizational units which, for legal reasons or for other specific business-
related reasons or purposes, are grouped together. Organizational units include legal company entities,
sales offices, profit centres, etc. Organizational units handle specific business functions.

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Client

ACI HealthCare ACI HealthCare ACI HealthCare

ACI HealthCare
Limited Limited Limited Company Sales Purchase
Limited
Controlling Area Operating Concern (1000) Organization Organization
CoA(1000) CCA(1100)
(1100) (1000)

Company Code Company Code

ACI HealthCare Limited ACI Healthcare USA, Inc.
HC01 HC02

Profit Centre Business Area Profit Centre Business Area

1. OSD 1. Head Office B001 17. Feni B017 Own Product Central

Third-party product
2. Common 2. USA B002 18. Gazipur B018

3. ANVISA B003 19. Jessore B019

4. EU B004 20. Khulna B020

5. ROW B005 21. Kushtia B021

6. Sonargaon Local B006 22. Maijdee B022

7. Barisal B007 23. Mirpur- Dhaka B023

8. Bogra B008 24. Mymensingh B024

9. Brahman Baria B009 25. Narayangonj B025

10. Chadpur B010 26. Pabna B026

11. Chittagong B011 27. Patuakhali B027

12. Comilla B012 28. Rajshahi B028

13. CoxsBazar B013 29. Sreemongal B029

14. Dhaka B014 30. Sreemongal B030

15. Dinajpur B015 31. Sylhet B031

16. Faridpur B016 32. Tangail B032

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3.1 SAP Process Overview

3.1.1 Operating Concern

An operating concern represents an organizational unit in ACI HealthCare Limited Pharmaceuticals Ltd
for which the sales market has a uniform structure. It is the valuation level for Profitability Analysis
(CO-PA).

Operating Concern Description

1000 ACI HealthCare Operating Concern

3.1.2 Controlling Area

Controlling area is an organizational unit from the Accounting component in the S/4HANA System,
used to represent a closed system for management accounting purposes.

► A controlling area may be assigned to one or more company codes

Controlling
Area Description
1100 ACI HealthCare Controlling Area

3.1.3 Company

A company is an organizational unit in Accounting which represents a business organization

according to the requirements of commercial law in a particular country. A company can contain one
or more company codes.

Company Code Name

1000 ACI HealthCare Group

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3.1.4 Chart of Accounts

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

Chart of Accounts Description

1000 Chart of accounts for ACI HealthCare Limited

3.1.5 Company Code

Smallest organizational unit of external accounting for which a complete, self-contained set of accounts
can be created.

Country Reporting
Company Code Description
Currency
HC01 ACI HealthCare Limited Bangladesh BDT
HC02 ACI Healthcare USA, Inc. USA USD

Codification logic

In SAP, Company code is a 4-digit Alfa-numeric code.

The codification logic is uniform across the ACI HealthCare Limited & ACI Healthcare USA
Inc. entities.
First 2 places i.e. ‘HC’ represents Health Care and last two places i.e. ‘01’ and ‘02’ represents
Company number of the respective companies.

3.1.6 Credit Control Area

You define a credit control area according to the areas of responsibility for credit monitoring.
For each credit control area in the system, you enter a key, a name, and the currency in which the credit
limit is to be managed in the credit control area. You select a four-character alphanumeric key. In the
simplest case, each company code corresponds to one credit control area. In this case, we recommend
that you use the same key for the credit control area as for the company code.

This topic is covered in detail in a separate BBP from SD module.

Credit Control Area Description

ACI HealthCare Limited Credit
1100 Control Area

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3.1.7 Profit Centre

Profit center is an organizational unit in the Accounting component in the S/4HANA System.
It reflects a management-oriented structure of the enterprise for the purposes of internal control.

► At ACI HealthCare Limited Profit Centre(s) are being designed in order to meet Product Type
wise reports requirements.

► Generation of Financials like Capital Employed, Revenue reporting, Expense Analysis, can
be made using Profit Centre Accounting. At ACI HealthCare Limited, it is expected that P&L
& Balance sheet item will be available at Profit centre level.

Company Code Profit Centre Description

HC01 OSD OSD Unit
HC01 COM Common
HC02 OWN Own Product
HC02 TPP Third Party Product

3.1.8 Business Area

Organizational unit of external accounting that corresponds to an area of responsibility in a company.

Movements in value entered in Financial Accounting are assigned to business areas.
Financial statements can be created for business areas for internal purposes also.

► Here Depots, Export Regions and Head Office are created as Business Area.

► ACI HealthCare Group will generate P/L & B/S for every Business Area.

Following will be the Business Areas

Company
Business Area Description Business Area Code
Code
HC01 Head Office B001
HC01 USA B002
HC01 ANVISA B003
HC01 EU B004
HC01 ROH B005
HC01 Sonargaon Local B006
HC01 Barisal B007
HC01 Bogra B008
HC01 Brahman Baria B009
HC01 Chadpur B010
HC01 Chittagong B011
HC01 Comilla B012
HC01 CoxsBazar B013

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HC01 Dhaka B014

HC01 Dinajpur B015
HC01 Faridpur B016
HC01 Feni B017
HC01 Gazipur B018
HC01 Jessore B019
HC01 Khulna B020
HC01 Kushtia B021
HC01 Maijdee B022
HC01 Mirpur-Dhaka B023
HC01 Mymensingh B024
HC01 Narayangonj B025
HC01 Pabna B026
HC01 Patuakhali B027
HC01 Rajshahi B028
HC01 Rangpur B029
HC01 Sreemongal B030
HC01 Sylhet B031
HC01 Tangail B032
HC02 Central U001

Codification logic

In SAP, Business Area is a 4-digit Alfa-numeric code.

The codification logic is uniform across the ACI HealthCare Limited & ACI Healthcare USA
Inc. entities.
First place i.e. ‘B’ and ‘U’ represents Bangladesh and USA respectively and last three digits
Business Area number.

4. Fiscal Year Variant

A fiscal year is the normal accounting period for which the working results and balance sheet is
compiled and published every year.
Irrespective of how fiscal year is defined, special periods are used. Special periods subdivided the
year-end closing period. They therefore merely divided the last posting periods into several closing
periods.
A fiscal year usually has 12 posting periods. In General Ledger Accounting, you can define up to four
special periods. The number of normal posting periods and special posting periods are defined in
fiscal year variant.

ACI HealthCare Group will have V6 as their fiscal year variant for company code. Fiscal year would
be from July 1 to 30 June of succeeding year. Each month is treated as a posting period. For the
purpose of Financial auditing, 4 special posting periods would be created.

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FYY Description
V6 July-June, 4 special periods

5. Posting Period Variant

Once a fiscal year is defined, it is possible to specify whether a period is allowed for posting or not. In
order to standardize maintenance of accounting period especially across the group, SAP S/4 HANA
ENTERPRISES 1909 system allows the specification of open or close status to be maintained via a
posting period variant.

PPY Description
1000 ACI HealthCare Limited
1001 ACI Healthcare USA, Inc.

5. Field Status Variant

Field Status Variant determines which fields are ready for input, which are required entry fields, and
which are hidden during document entry. Any additional account assignments (i.e. cost centers or
orders) are only possible if data can be entered in the corresponding fields.
Field status variant determines the status of each field, which user can enter the value during posting.
The status can be either:

► Optional
► Mandatory
► Suppressed

FSV Description
1000 Field Status Variant for ACI HealthCare Group

Standard Field Status Group in SAP

Field Status Group Description

G001 General (with text, assignment)

G003 Material consumption accounts

G004 Cost accounts

G005 Bank accounts (obligatory value date)

G006 Material accounts

G007 Asset accts (w/o accumulated depreciation)

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G008 Assets area clearing accounts

G009 Bank accounts (obligatory due date)

G011 Clearing accounts (with settlement per.)

G012 Receivables/payables clearing

G013 General (with text)

G014 MM adjustment accounts

G017 Freight/customs provisions/clearing (MM)

G018 Scrapping (MM)

G019 Other receivables/payables

G023 Plant maintenance accounts

G025 Inventory adjustment accounts

G026 Accounts for down payments made

G029 Revenue accounts

G030 Change in stock accounts

G031 Accounts for down payments received

G032 Bank accounts (obligat.value/due dates)

G033 Cost accounts for external services

G036 Revenue accts (with cost center)

G039 Accts for pmts on acct made for assets

G040 Personnel clearing accounts

G041 Tax office clearing accounts

G045 Goods/invoice received clearing accounts

G049 Manufacturing costs accounts

G050 Central control clearing accounts

G052 Accounts for fixed asset retirement

G056 Amortization accounts

G059 Inventory accounting material stock acct

G062 Investment support accounts

G064 Other cost accounts (obligatory text)

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G067 Reconciliation accounts

Z067 Reconciliation accounts

G068 Reconciliation accts (payables - Austria)

G069 Cost accounts (travel expenses)

G070 Clearing accounts (travel expenses)

G071 Reconciliation accts (KIDNO/foreign payment)

ICCF CO <-> FI reconciliation posting

6. Document Types and Number Ranges

Document types enable to distinguish the postings according to the different business transactions, for
example invoice document, customer payment, vendor payment, vendor credit memo, and so on. A
number range must be assigned to each document type in the SAP System.
To store documents separately according to document types, separate number ranges must be assigned
to each document type, for example invoices, credit memos.
It is proposed to make use of these Doc types and different series of Number ranges for document
types. The standard document types of SAP will be followed.

SAP S/4 HANA ENTERPRISES 1909 system has already defined a number of document types &
number range, if required Additional Document type and no range will be developed during realization
phase.
Number Range is year depended means every year we can update the same no for different year
which are sufficient for ACI HealthCare group purposes. Therefore, it is proposed to use the standard
document type & number range and also create the new document type and number range which
required for the business process.
Following are the standard document types & number range, which are relevant for ACI
HealthCare Group:

Year No. Range

Document Type Description No
From To

AA Asset posting 10 2019 1000000001 1099999999

Accounting
AB 11 2019 1100000001 1199999999
document

AF Dep. Postings 12 2019 1200000001 1299999999

AN Net asset posting 13 2019 1300000001 1399999999

Customer
DA 14 2019 1400000001 1499999999
document

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Customer credit
DG 15 2019 1500000001 1599999999
memo

DR Customer invoice 16 2019 1600000001 1699999999

DZ Customer payment 17 2019 1700000001 1799999999

EU Euro rounding diff. 18 2019 1800000001 1899999999

EX External number 19 2019 1900000001 1999999999

KA Vendor document 20 2019 2000000001 2099999999

Vendor credit
KG 21 2019 2100000001 2199999999
memo

Account
KP 23 2019 2300000001 2399999999
maintenance

KR Vendor invoice 24 2019 2400000001 2499999999

KZ Vendor payment 25 2019 2500000001 2599999999

ML ML settlement 26 2019 2600000001 2699999999

PR Price change 27 2019 2700000001 2799999999

Sub. cred. memo

RA 28 2019 2800000001 2899999999
settlement

RE Invoice – gross 29 2019 2900000001 2999999999

Billing doc.
RV 31 2019 3100000001 3199999999
Transfer

G/L account
SA 32 2019 3200000001 3299999999
document

G/L account
SB 33 2019 3300000001 3399999999
posting

Adjustment
SU 35 2019 3500000001 3599999999
document

UE Data transfer 36 2019 3600000001 3699999999

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WA Goods issue 37 2019 3700000001 3799999999

WE Goods receipt 38 2019 3800000001 3899999999

Inventory
WI 39 2019 3900000001 3999999999
document

Goods
WL 40 2019 4000000001 4099999999
issue/delivery

WN Net goods receipt 41 2019 4100000001 4199999999

ZR Bank reconciliation 42 2019 4200000001 4299999999

KN Net vendors 43 2019 4300000001 4399999999

RN Invoice – net 44 2019 4400000001 4499999999

Document No. Range

Description
Type No From To
Opening
UE UE 2019 9900000000 9999999999
Balance upload
Internal Order
IO IO 2019 7000000001 7099999999
Settlement
Product
PC Costing PC 2019 7100000001 7199999999
Settlement
Cash Book
C1 C1 2019 2210000001 2210999999
Head Office
Cash Book
C2 C2 2019 2211000001 2211999999
Factory

7. Posting Keys
The posting key describes the type of transaction, which is entered in a line item.
Posting key controls document entry. The important properties which are derived from the posting
key are:

► The account types

► The allocation to the debits or credits side

► The possible or necessary specifications which are to be entered in the line item

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Pst Key Acct Type Description Debit/Credit

01 Customer Invoice Debit
02 Customer Reverse credit memo Debit
03 Customer Bank charges Debit
04 Customer Other receivables Debit
05 Customer Outgoing payment Debit
06 Customer Payment difference Debit
07 Customer Other clearing Debit
08 Customer Payment clearing Debit
09 Customer Special G/L debit Debit
11 Customer Credit memo Credit
12 Customer Reverse invoice Credit
13 Customer Reverse charges Credit
14 Customer Other payables Credit
15 Customer Incoming payment Credit
16 Customer Payment difference Credit
17 Customer Other clearing Credit
18 Customer Payment clearing Credit
19 Customer Special G/L credit Credit
21 Vendor Credit memo Debit
22 Vendor Reverse invoice Debit
24 Vendor Other receivables Debit
25 Vendor Outgoing payment Debit
26 Vendor Payment difference Debit
27 Vendor Clearing Debit
28 Vendor Payment clearing Debit
29 Vendor Special G/L debit Debit
31 Vendor Invoice Credit
32 Vendor Reverse credit memo Credit
34 Vendor Other payables Credit
35 Vendor Incoming payment Credit
36 Vendor Payment difference Credit
37 Vendor Other clearing Credit
38 Vendor Payment clearing Credit
39 Vendor Special G/L credit Credit
General
40 Ledger Debit entry Debit
General
50 Ledger Credit entry Credit
70 Asset Debit asset Debit
75 Asset Credit asset Credit
General
80 Ledger Stock initial entry Debit
General
81 Ledger Costs Debit
General
83 Ledger Price difference Debit

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General
84 Ledger Consumption Debit
General
85 Ledger Change in stock Debit
General
86 Ledger GR/IR debit Debit
Stock inwrd
89 Material movement Debit
General
90 Ledger Stock initial entry Credit
General
91 Ledger Costs Credit
General
93 Ledger Price difference Credit
General
94 Ledger Consumption Credit
General
95 Ledger Change in stock Credit
General
96 Ledger GR/IR credit Credit
Stock outwd
99 Material movement Credit

8. Key Factors for Process

Sl. Key Factors

No.
1. One single Chart of Account can meet the requirements of multiple company codes. Hence
it will reduce the redundancy in Master data

2. Statutory Financial Reports like PL, Balance Sheet are available in Chart of Accounts level,
Company code level (multiple company codes can be treated as a group company),
Business Area level and Profit Centre level

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