RSI STEEL

Blueprint Category:
Financial Accounting
General Ledger Accounting Version 1.0
Doc No. : RSI/FI/BBP/001 September 2012
 General Ledger Blueprint Document

2
RSI
 General Ledger Blueprint Document

Client Name: RSI, UK

Document Details:

Doc No. Doc Type

Name Version No.

RSI/FI/BBP/001 Business Blue General Ledger Accounting Initial V1.0

Print

Revision details:

Action taken Preceding page

New page No Revision Description
(add/del/chg) No
Account groups claRSIfied
Add 9 9 based on Level 1 COA
categories
Add Control financial period closing
10,22 10,22 through ABAP program
automatically
Add Email from KPMG confirming
22 22 USD as functional currency for
RSI UK

3
RSI
 General Ledger Blueprint Document

4
RSI
 General Ledger Blueprint Document

This document and any revised pages of the same are subject to TCS Document Control procedure.
Please keep these up-to-date using the Release Notice issued by the distributor of the document.

Responsibilitie
Name Role Signature
s

Prepared By

Reviewed By

Approved By

Authorised By

5
RSI
 General Ledger Blueprint Document

Contents

1. INTRODUCTION
1.1. PURPOSE OF THIS DOCUMENT
1.2. INTENDED AUDIENCE
2. SALIENT FEATURES OF AS-IS PROCESS
3. EXPECTATIONS / REQUIREMENTS
4. SOLUTION IN SAP
4.1. SAP GENERAL LEDGER ORGANIZATIONAL STRUCTURES
4.2. SAP GENERAL LEDGER MASTER DATA MAINTENANCE
4.3. MAINTENANCE OF FI POSTING PERIOD
4.4. PROCERSING OF GL ACCOUNT JOURNALS
4.5. PROCERSING RECURRING ENTRIES
4.6. AUTOMATIC AND MANUAL CLEARING
4.7. FOREIGN CURRENCY VALUATION
4.8. GR/IR CLEARING
4.9. VAT REPORTING
4.10. EC SALES LIST
4.11. EXCHANGE RATES MAINTENANCE
4.12. STATUTORY REPORTING
5. BUSINESS PROCESS FLOW IN SAP

6
RSI
 General Ledger Blueprint Document

5.1. PROCERSING OF GL ACCOUNT JOURNALS

5.2. PROCERSING RECURRING ENTRIES
5.3. AUTOMATIC AND MANUAL CLEARING
5.4. FOREIGN CURRENCY VALUATION
5.5. GR/IR CLEARING
6. MAJOR INPUT DATA LIST
7. DESCRIPTION OF FUNCTIONAL DEFICITS/GAP
8. APPROACH OF HANDLING FUNCTIONAL DEFICITS/WORK AROUND SOLUTION
9. REPORTING REQUIREMENTS
10. CHANGES TO EXISTING PROCESSES
11. NOTES ON FUTURE IMPROVEMENTS
12. MIGRATION REQUIREMENTS
13. DEVELOPMENT LIST / TECHNICAL SECTION
13.1. REPORTS
13.2. DEVELOPMENTS OF PROGRAMS/FM/ENHANCEMENTS
13.3. INTERFACES
13.4. DATA UPLOAD PROGRAMS
13.5. FORMS
14. LEGACY SYSTEM DEVELOPMENT REQUIREMENTS
15. HIGH-LEVEL USER ROLES & AUTHORIZATION
16. ADDITIONAL TEST CASES (IF ANY)

7
RSI
 General Ledger Blueprint Document

List of Abbreviations

Abbreviation Expanded Form

FI-GL General Ledger
COA Chart of Accounts
FI Financial Accounting
CO Controlling

8
RSI
 General Ledger Blueprint Document

AR Accounts Receivable
AP Accounts Payable
BOT Bank of Thailand
HMRC Her Majesty’s Revenue & Customs
FSS TATA Financial Shared Services

9
RSI
 General Ledger Blueprint Document

1. Introduction

1.1. Purpose of this Document

This document describes various business processes and functions in SAP FI-GL
module to address RSI UK business requirements. This document will serve as a
reference document for system settings and configuration required in realisation
phase.

1.2. Intended Audience

This document is for internal project distribution. It is to be used to communicate to

management, project team members and finance GL end users.

2. Salient Features of AS-IS process

✓ Currently transactions in GL are performed by both FSS and UK finance team

✓ RSI UK represents one company code and one plant
✓ SAP is configured as April-March fiscal year
✓ GL Maintenance is done by FSS along with transactions like VAT proceRSIng,
closing activities etc
✓ Financial Statements are reported in USD based on UK IFRS with SAP functional
currency set as GBP.RSI UK finance team make adjustments from GBP to USD and
adjustments for Thai GAAP
✓ The trial balance is ordered as per UK IFRS
✓ Tax related reports are generated by FSS from SAP via VATS to create output for
VAT return
✓ RSI UK has short term and long term loan arrangements with three banks namely
SCB, KTB and TISCO and is managed in spreadsheets for calculation of interests
and accruals
✓ Withholding tax of 10% is applicable to interest remittances outside EU

10
RSI
 General Ledger Blueprint Document

✓ Certain costing and inventory related entries are manually posted to SAP

3. Expectations / Requirements

The following business processes have been identified in FI GL module:

✓ SAP General Ledger Master Data Maintenance

✓ Maintenance of FI Posting Period
✓ ProcesSIng of GL Account Manual Journals
✓ ProcesSIng Recurring Entries
✓ Automatic and Manual Clearing
✓ Foreign Currency Valuation
✓ Accrual Postings
✓ GR/IR Clearing
✓ Tax Reporting
✓ Exchange Rate Maintenance
✓ Statutory Reporting

4. Solution in SAP

4.1. SAP General Ledger Organizational Structures

Company Code

A company code is the organizational unit which records all transactions to produce
the financial statements including the balance sheet and the profit and loss statement.

There will be one company code created in SAP system for RSI UK as mentioned
below:

Company Code 1000 RSI UK Ltd

11
RSI
 General Ledger Blueprint Document

Chart of Accounts

Chart of Accounts in FI is made up of GL codes which form the trial balance. The GL
accounts it contains are used by one or more company codes. For each G/L account, the
chart of account contains the account number, the account name, and technical
information. A chart of accounts must be aRSIgned to each company code.

To address RSI Group accounting processes one global chart of account will be created in
the SAP system. This global chart of account will be aRSIgned to RSI UK company code
and also RSI Thailand company codes going forward.

RSI Group Chart of account 1000 will be created.

Account Group

Account groups enable GL codes to be combined and additionally specific functionality can
be applied at account group level to control the screen layout for an account during
posting.

The GL account group is based on the Thai order of accounts and will have the following
number ranges for GL master data creation:

A/C Group Name From acct To account

Assets
Cash and Cash Equivalent 101000 101999
Short - term Investment/Loan 102000 102999
Account Receivable – Trade 103000 103999
Inventories 104000 104999
Inventories – In Transit 105000 105999
Other Current Asset 106000 106999
Investment 107000 107999
Property , Plant and Equipment 108000 108999
Other Non-Current Asset 109000 109999
Liability

12
RSI
 General Ledger Blueprint Document

Bank Overdraft and Short - term Loan 201000 201999

Account Payable - Trade 202000 202999
Current Portion of Long - Term Liabilities 203000 203999
Accrued Expenses 204000 204999
Other Current Liabilities 205000 205999
Long - term Loan 206000 206999
Other Non-Current Liabilities 209000 209999
Shareholder’s Equity
Share Capital 301000 301999
Retained Earning 302000 302999
Others components of Equity 303000 303999
Revenue
Revenue from Operating 401000 401999
COGS & COM
Cost of Goods Sold 501000 501999
Return 502000 502999
Cost of Service 503000 503999
Cost of Manufacturing 504000 504999
Materials Transfer for Downstream
505000 505999
Product (MTDP)
Net Yield Loss & Double Count 506000 506999
Materials Usage 507000 507999
Selling and Administration Expenses
Labor Benefit & Welfare 601000 601999
Facilities Expenses 602000 602999
Depreciation & Amortization 603000 603999
Sales CommiRSIon & Promotion 604000 604999
Training & Seminar 605000 605999
Shipping Expenses 606000 606999
Outside Service Fee 607000 607999
Repair & Maintenance Expenses 608000 608999
Miscellaneous/Other Expenses 609000 609999
Non-Operating Items
Interest Expenses 701000 701999
Gain/Loss from Exchange Rate 702000 702999
Gain/Loss from Investment 703000 703999
Gain/Loss from Asset 704000 704999
Provision 705000 705999
Tax and Tax Penalty 706000 706999
Other Non-Operating Expenses 707000 707999
Interest Income 708000 708999
Other Non-Operating Income 709000 709999
Other/Suspension
Suspension - Assets 901000 901999
Suspension - Liabilities 902000 902999
Suspension - Revenues 903000 903999

13
RSI
 General Ledger Blueprint Document

Suspension - COGS & COM 904000 904999

Suspension - SGA Expenses 905000 905999
Suspension - Non-Operating Expenses 906000 906999
Suspension - Extra Ordinary Items 907000 907999
Encumbrance 908000 908999

Apart from the above mentioned account groups one additional account group will be
created for Thai IFRS adjustment entries.

Fiscal Year Variant

RSI UK will use fiscal year variant V1 in SAP representing January to December calendar
year and four special periods.

Posting Period Variant

Posting periods are accounting periods to which accounting documents in SAP are posted.
RSI UK company code will be aRSIgned to posting period variant 1000, which will control
postings to specific accounts. This ensures that the correct account is posted to when the
transaction occurs.

Closing of financial posting period and opening of next period will be done automatically
through a customized program.

Currency

USD is the functional currency for RSI UK company code.

Document Type

The document type controls the document header and is used to differentiate the business
transactions to be posted, e.g. customer invoice, vendor payments, etc. Document types
are defined at the client level and are therefore valid for all company codes. The standard
system is delivered with document types and will be used by RSI UK.

14
RSI
 General Ledger Blueprint Document

4.2. SAP General Ledger Master Data Maintenance

This process will consist of centralized maintenance of one common Chart of Accounts.
The maintenance of the COA will include the creation of new GL account, changes to the
properties of existing accounts, blocking and unblocking of account to restrict postings and
marking for deletion all inactive account. This process will be owned by RSI SAP Support
team.

4.3. Maintenance of FI Posting Period

Opening and closing of FI posting period needs to be controlled through posting period
variant.RSI UK will use posting period variant 1000 and at month end the user can
determine when a particular account type/ledger is to be closed/opened.

Examples of Account Types/ledgers are:

✓ G/L

✓ Customer

✓ Vendor

✓ Assets

✓ Material

4.4. ProcesSIng of GL Account Journals

Several types of manual journal entries are available in SAP and a customized program
will be developed to facilitate users to upload journal automatically.

4.5. ProcesSIng Recurring Entries

15
RSI
 General Ledger Blueprint Document

Periodically recurring entries posted by the recurring entries program are based on
recurring entry documents. Recurring entries are business transactions that are repeated
regularly, such as rent or insurance. The following data never changes in recurring
entries:

✓ Posting key
✓ Account
✓ Amounts

The user needs to enter this recurring data in a recurring entry original document. This
document does not update the transaction figures. The recurring entry program uses it as
a basis for creating future accounting documents.

4.6. Automatic and Manual Clearing

The SAP System offers the following procedures for accounts with open item
management:

Posting with clearing: Using the posting with clearing function, you enter document line
items and then select the open items to be cleared. Once you have fulfilled all the
prerequisites for clearing, the system clears the open items. The system generates one or
more offsetting postings for the open items to be cleared.

Manual account clearing: In this clearing procedure, the user will manually select debit
and credit open items that need to be offset.

Automatic clearing: You can use the clearing program to clear open items from
customer, vendor, and G/L accounts. This program uses predefined criteria to group
together open items per account. If the balance of the group of open items equals zero in
local currency, the items are marked as cleared. Example GR/IR account.

16
RSI
 General Ledger Blueprint Document

4.7. Foreign Currency Valuation

All foreign currency open items (AP & AR) as well as foreign currency balances (bank
accounts) will be re-valued at period end as per the fixed month end exchange rate and
appropriate financial entries will be passed to reflect the gain or loss on valuation. This
gain/loss will be an unrealized exchange gain or loss which will be posted accordingly.
The entries passed on to the account of unrealized exchange gain or loss will be
automatically reversed in the following period on the date specified in the program.

Postings in case of valuation for foreign currency open items (AP & AR) are posted to
unrealized gain/loss account and balance sheet clearing account, whereas is case of
foreign currency GL balances (bank accounts) the offsetting entry is posted to the GL
account itself.

4.8. GR/IR Clearing

GR/IR clearing is the process of matching debits and credits in the GRIR liability account.
All GR/IR accounts would be cleared through automatic clearing program on the basis of
certain key fields as purchase order number, amount etc.

But in certain cases unmatched balances in GR/IR clearing account needs to be cleared
manually. This is done through a special transaction with agreement from both finance
and procurement team.
To clear off small differences the transaction may be executed with automatic clearing flag
based on age of GR IR open and small percentage of quantity difference. This should clear
all the simple variances so that only genuine discrepancies remain open and can be
investigated.

4.9. VAT Reporting

The two reports generated from SAP are VAT report and EC sales list. The following tax
codes will be configured in the system:

17
RSI
 General Ledger Blueprint Document

Tax code Purpose Description

OUTPUT TAX
S0 OUTSIDE SCOPE VAT SALES (OUTPUT)
S1 OUTPUT TAX STANDARD RATE  SALES 20% (OUTPUT)
OUTPUT TAX
S2 VAT ONLY (OUTPUT)
S4 OUTPUT TAX NON EU EXPORTS (OUTPUT)
OUTPUT TAX
S5 EU EXPORTS ZERO RATED (OUTPUT)
INPUT TAX
V0 OUTSIDE SCOPE VAT (INPUT)
INPUT TAX
V1 STANDARD RATE  PURCHASES 20% (INPUT)
INPUT TAX
V2 VAT ONLY (INPUT)
INPUT TAX ACQUISITIONS OF GOODS FROM OTHER EU STATES
V3 (INPUT)
INPUT TAX
V4 IMPORTS LIABLE FOR REVERSE CHARGE ( INPUT )
INPUT TAX
V5 REDUCED RATE 5% (INPUT)
INPUT TAX
V6 EXEMPT PURCHASES ( INPUT )
INPUT TAX
V8 IMPORTS OF GOODS SUBJECT TO IPR RELIEF (INPUT)
INPUT TAX
V9 ZERO RATED PURCHASES (INPUT)

To address RSI UK tax reporting requirement in SAP a special functionality called Plants
Abroad functionality will be activated. This functionality will allow to draw VAT and EC
sales list report in functional currency i.e. USD and also in country currency i.e. GBP.

Assumptions

✓ RSI UK will use BOT exchange rates in the system for all purposes
✓ RSI UK needs to convince and satisfy HMRC to use one monthly exchange rate
based on BOT for VAT and accounting purposes. HMRC has officially confirmed that
commercial exchange rates other that HMRC specified exchange rates can be used
for VAT reporting purposes.

Scenario 1: USD Invoice

18
RSI
 General Ledger Blueprint Document

In case of USD invoices no exchange rate is required during invoice posting as USD is
the company code currency. For VAT reporting USD amount has to be converted to
GBP at current month FX rate regardless of the date on the invoice.

Scenario 2: GBP Invoice

GBP with will be treated as a foreign currency invoice as USD is the company code
currency.
When invoice is posted in sterling based on exchange rate values are converted from
document currency to USD for accounting. For VAT report no conversion is made as
the report is drawn in GBP and the report picks up the document currency.
When report is drawn in USD, sterling values are converted to USD based on exchange
rates applicable during posting.

Scenario 3: Invoice posted in currencies other than GBP or USD

In this case e.g. say EURO will be converted to USD at the BOT exchange rate and will
be posted in GL. For VAT reporting purposes values posted in EUR will be converted to
GBP at the rates applicable during posting.

Acquisition Tax Posting

Posting for acquisition tax code will be made through tax code V3 and needs special
treatment as acquisition tax needs to be recorded by the buyer although the net
effective tax rate is zero. In this context both debit and credit entries will be passed
automatically for separate balance sheet codes so that the net taxes payable is zero.

VAT Only Invoices

In certain scenarios there may be VAT only invoices which will be posted through
separate tax codes S2 and V2 for output and input taxes respectively.

19
RSI
 General Ledger Blueprint Document

Imports Liable for Reverse Charge

The tax code v4 will be used by RSI for posting reverse charge. Reverse charge is
applicable in case of import of services supplied to the UK from other EU countries.
This is called the 'reverse charge', and is also known as 'tax shift'.
The principle is similar to acquisition tax where an accounting entry must be made in
both input and output tax payable account.

4.10. EC Sales List

For EC sales list report the tax code S5 will be marked relevant to EU and as a
requirement VAT registration number of business partner and the company code needs to
be maintained correctly.
Standard SAP report will be used to generate EC Sales list.

4.11. Exchange Rates Maintenance

Exchange rates needs to be maintained for exchange rate type M.

4.12. Statutory Reporting

The primary valuation used will be UK IFRS but to address reporting requirements for RSI UK and RSI
Thailand the parallel account solution methodology will be used. A group of GL accounts will be
specifically created for only paRSIng adjustment entries required for Thai IFRS reporting. The entries
relate to such as joint venture, revaluation of fixed assets etc

The following reporting hierarchies will be configured in the system for P/L and Balance Sheet:

✓ UK IFRS
✓ UK Management Report
✓ Thai IFRS

20
RSI
 General Ledger Blueprint Document

✓ Thai Internal Reporting

5. Business Process Flow in SAP

5.1. ProceRSIng of GL Account Journals

5.2. ProceRSIng Recurring Entries

21
RSI
 General Ledger Blueprint Document

5.3. Automatic and Manual Clearing

22
RSI
 General Ledger Blueprint Document

5.4. Foreign Currency Valuation

23
RSI
 General Ledger Blueprint Document

5.5. GR/IR Clearing

24
RSI
 General Ledger Blueprint Document

25
RSI
 General Ledger Blueprint Document

6. Major Input Data List

No. Transaction Major Input Data Major Output Data

4.2 FS00 GL Account, Company Code, GL Account Created
Description, Field status Group,
Currency, Control Indicators
4.3 OB52 Posting Period Variant, Account FI Posting Period
Type, Account Interval, Fiscal Maintained
Year, Period
4.4 F-02,FB50 Company Code, Doc. Date, FI Document No
Posting date, Currency,
Reference, G/L acct, Posting
key, Amount doc. currency.
4.4 FBS1 Company Code, Doc. Date, Accrual/Deferral Document
Posting date, Currency, Created
Reference, G/L acct, Posting
key, Amount doc. Currency,
Reversal Reason, Reversal Date
4.5 FBD1 Company Code, First run on, Recurring Doc No Created
Last run on, Interval in months,
Document Type, Currency/Rate,
PstKy, Account
4.6 F.13 Company code, Fiscal year, Clearing Document Posted
Select GL Accounts Button,
enter the account number, Click
Only docs which can be cleared
4.7 FAGL_FC_VALUATION Company code, Evaluation Key Foreign Currency valuation
Date, Valuation method, Batch posted
input seRSIon name, Document
date, Posting date, Posting
period, Reversal posting date,
Reverse post. Period, Select
Accounts, Click on postings;
Process Batch Input seRSIon

26
RSI
 General Ledger Blueprint Document

4.9 MR11 Company Code, Purchasing GR/IR Clearing Posting

Document, Last movement
before key date, Qty Var. Less
Than/Equal To, Value Variance
Less Than/= To
4.10 S_ALR_87012400, Company code, Fiscal Year, Tax Report
S_ALR_87012357 Posting date, Tax return
country, Taxes on
sales/purchases group
4.11 S_BCE_68000174 Exchange Rate Type, Valid Exchange Rate
From, Exchange rates Maintenance
4.12 F.01 Chart of accounts, Company Balance sheet & P/L
code, Financial statement Statement
version, Reporting Year,
Reporting periods, Comparison
year, Comparison periods

7. Description of Functional Deficits/Gap

No. GAP Description

01 Closing of financial posting period and opening of next period needs to
be done automatically.

8. Approach of Handling Functional Deficits/Work Around Solution

No. GAP Description Proposed Actions/Workarounds

01 Closing of financial posting period A customized program will be developed
which will be schedules at a particular time
and opening of next period needs which will close the current period and open
to be done automatically. subsequent next period automatically.

9. Reporting Requirements

N Description
o
01 S_ALR_87012277 - G/L Account Balances

02 FBL3N - Display/Change Line Items

27
RSI
 General Ledger Blueprint Document

03 FAGLB03 - Display Balances (New)

04 FAGLL03 - Display/Change Items (New)

05 FS10N - Display Balances

05 FB03 – Display

06 FB04 - Display Changes

07 F.15 – Lists Recurring Entries

08 S_ALR_87012326 - Chart of Accounts GL Accounts

09 S_ALR_87012328 - G/L Account List Company Code

10 S_ALR_87012308 - Display Changes to G/L Accounts

11 S_ALR_87012332 - G/L Account Statements

12 S_ALR_87012301 - Totals and Balances

13 Finance Cost-Thai Report

14 Selling Expense-Thai Report

15 Administration-Thai Report

16 Expense By Nature-Thai Report

17 TB by period

10. Changes to Existing Processes

No Changes in Current Practice Organisation Impact Change Management

1 Several GL related
transactions, VAT, period
end closing and
maintenance that used to
be done by FSS will be
carried out by RSI UK
finance team/SAP
Competency Centre
Requirements
SAP support has hired SAP knowledge
new staff. transfer provided by
Additional tasks to be new hires working on
performed by finance SAP implementation
UK. project.
Finance UK to be
trained

28
RSI
 General Ledger Blueprint Document

2 Change of functional Analysis for corporation

currency to USD tax calculation simplified

NA

3 Change of functional Simplifies reporting by

currency to USD eliminating currency
translation. NA

4 Change of accounting year

& periods as calendar
months NA NA

11. Notes on Future Improvements

No Future Improvements Organisation Impact Change Management

Requirements
NA NA NA

12. Migration Requirements

No Migration Requirements Organisation Impact Change Management

Requirements
01 GL A/C Balance TBA per migration/cut over TBA per migration/cut
over
02 GL Master Data TBA per migration/cut over TBA per migration/cut
over

13. Development List / Technical Section

13.1. Reports

N Description
o
01 FI Journal Posting Program

29
RSI
 General Ledger Blueprint Document

13.2. Developments of Programs/FM/Enhancements

No Description
01 Customized program for opening and closing of FI posting period.

13.3. Interfaces

No Description
NA NA

13.4. Data Upload Programs

No Description
GL/DP/001 GL Balance Upload Program
GL/DP/002 GL Master Data Creation Program

13.5. Forms
No Description
NA NA

14. Legacy System Development Requirements

No Description
NA NA

15. High-Level User Roles & Authorization

The draft high level user roles and transaction authorization is attached below:

16. Additional Test Cases (If Any)

No Description
NA NA

30
RSI
 General Ledger Blueprint Document

17. Appendix
Notice

All content / information present here is the exclusive property of Tata Consultancy Services Limited
(TCS). The content / information contained here is correct at the time of publishing.

No material from here may be copied, modified, reproduced, republished, uploaded, transmitted, posted
or distributed in any form without prior written permiRSIon from TCS. Unauthorized use of the content /
information appearing here may violate copyright, trademark and other applicable laws, and could result
in criminal or civil penalties.

Copyright © 2011 Tata Consultancy Services Limited

31
RSI