STEER Engineering P Ltd- As Is Study – Bengaluru

AS IS Study - Finance Module

Purpose of this Document:-

The upgrade is when significant change to the overall software solution is performed.
This includes everything from a true software version upgrade to applying software packages.
A software version upgrade move from E.C.C 5.0 To E.C.C 6..0 the upgrades are not only an
application functionality gap but also a technology gap that exists the process. Upgrades are
necessary to keep the latest innovations that business, operations, and technical can control

STEER Engineering P Ltd had implemented SAP ECC 5.0 in 2006 and the same is successfully
make use of the software packages immensely and getting various out puts of reports and help
the organization to towards decision making purpose and achieve the organization objective .

In the present day environment with the continuous changes in customer preferences STEER is
expected to respond promptly to the changed needs for survival and sustained growth. To address
this situation it is essential for the endeavor to improve their operational efficiency and optimize the
use of their resources with the support of an online and efficient information system.

To Improve the organization standard an sap erp up gradation moving from E.C.C 5.0 version TO
E.C.C 6.0 To perform the necessary activities without impacting the business processes and
provide a sustainable solution for continues business growth upgrade can be quite an understanding
depending on the remoteness between software versions for further the keep back is at risk than
moving from sap ECC. 5 TO 6.00.

The benefit to be obtained the organization

New functionality in SAP ERP 6.0
Performing the innovation process activities with different modules

Business Process

STEER Engineering’s Finance Department has been doing the below mentioned process.

1. Accounts Receivable
2. Accounts Payable
3. General Ledger
4. Fixed Assets
5. Fund Management
6. Reports
7. Consolidation

1. Accounts Receivables
1.1 Receivables from Customers

1.1.1 Advance payment from Domestic Customer

 STEER Engineering P Ltd- As Is Study – Bengaluru

1.1.2 Advance payment from Foreign Customer

1.1.3 Payment received against Domestic invoice
1.1.4 Payment received against Foreign invoice
1.1.5 Bad Debts
1.1.6 Debit Note
1.1.7 Credit Note
1.1.8 Line item Clearing Entry
1.1.9 Sales – Domestic Customer (MM)
1.1.10 Sales – Foreign Customer (MM)
1.2. Other receivables

1.2.1 Payment received against rent

1.2.2 Payment received against Scrap sales & others
1.2.3 Payment from duty drawback
1.2.4 Payment received against insurance claims
1.2.5 Invoice Preparation

2.1 Accounts Payables

2.1.1 Invoice Booking with P.O (SAP)

2.1.2 Invoice Booking with manual P.O
2.1.3 Booking Direct Expenses

2.2 Vendor Payments Against supply & Service

2.2.1 Advance to Domestic Vendor

2.2.2 Payment against Domestic Invoices/Bills
2.2.3 Advance to Foreign Vendor
2.2.4 Payment against Foreign Invoices/Bills
2.2.5 Payment of Direct Expense Payment
2.2.6 Debit Note
2.2.7 Credit Note
2.2.8 Vendor line item clearing
2.2.9 Bad Debts

2.3 Employee Vendor

2.3.1 Imbursement Cash

2.3.2 Employee Advance (Temporary)
2.3.3 Domestic Travel Advance
2.3.4 Foreign Travel Advance
2.3.5 Advance against salary and recovery
2.3.6 Loans and recovery

3 General Ledger

3.1 Employee Salary

 STEER Engineering P Ltd- As Is Study – Bengaluru

3.1.1 Salary
3.1.2 Employee Awards & Rewards
3.1.3 Employee Full and Final Settlement
3.1.4 Employee Union Payment and recovery

3.2 Statutory Payments

3.2.1 Withholding tax
3.2.2 VAT
3.2.3 Service Tax
3.2.4 Excise Duty
3.2.5 Custom Duty
3.2.6 Property Tax
3.2.7 ESI, PF and Professional Tax
3.2.8 Inspector of Factories
3.2.9 Income Tax (Company)
3.2.10 Registrar for Companies
3.2.11 Statutory refunds

3.3 Other General Ledgers

3.3.1 Journal Voucher

3.3.2 Recurring voucher
3.3.3 Foreign Exchange Fluctuation
3.3.4 Bank Reconciliation
3.3.5 Branch Transfer
3.3.6 General Ledger Clearing
3.3.7 GR/IR Clearing

4. Fixed Assets

4.1 Asset Procurement

4.2. Asset Additions
4.3 Asset Deletion
4.4 Asset Transfer
4.5 Asset Retirement
4.6 Asset Scrap
4.7 Asset Depreciation. Planned & Unplanned
4.8 Work in progress (WIP)
4.9 Capital Advances

5. Fund Management

5.1 Budget
5.2 Dividends Payments
5.3 Leasing of Equipment
5.4 Fund Raising Capital Loan
 STEER Engineering P Ltd- As Is Study – Bengaluru

5.5 Forward Contract (FC)

5.6 Letter of Credit (LC)
5.7 Lease Rental
5.8 Re-payment of Loan
5.9 Payment - Loan interest
5.10 Branches Fund Transfer
5.11 Subsidiary company Funs Transfer

6 Reports & Consolidation

6.1 Statutory Reports

6.1.1 Purchase Register
6.1.2 Sales Register
6.1.3 Costing Report
6.1.4 Debtors Aging Report
6.1.5 Creditors Aging Report
6.1.6 Vendor Line item report
6.1.7 Customer Line Item Report
6.1.8 GL Line item report
6.1.9 Vendor & Customer Master Details Report

6.2 MIS Report

6.2.1 4 Way Sales Reconciliation Report

6.2.2 Product wise Sales, cost and profitability statements
6.2.3 Customer wise sales, cost and profitability statements
6.2.4 GRN Aging report

6.3 Consolidation

6.3.1 Determination of Goodwill and Minority Interest, f any

6.3.2 Identification & Elimination of inter company transactions
6.3.3 Fixed Asset Consolidation
6.3.4 Line by line Addition of all Items of financial statements

7. Financial Statement Version

7.1 Trading Accounts if any

7.2 Profit and Loss Account
7.3 Balance Sheet
7.4 Cash Flow
7.5 Funds Flow

8. Month End & Year End Activities

8.1 Finance period open/close

 STEER Engineering P Ltd- As Is Study – Bengaluru

8.2 MM Period open/close

8.3 FA period open / Close
8.4 Vendor / Customer Opening clearing
8.5 Fixed Asset Depreciation Posting
8.6 GL Carry forward
8.7 Vendor / Customer Balance Carry forward