Blueprint FICO JAi

VARDHAN
INDUSTRIES
As-Is Process Mapped to

SAP To-be process
Business Blueprint
02 September 20130
Business Blueprint VARDHAN INDUSTRIES
Vardhan Industries
Project Manager
Mr.Sumit Gupta
----------------------------------------------------------------------------
Module Experts
Finance and Controlling: Mr.Rana W Mehmood

Material Management :Mr.Alex
Sales and Distribution :Mr.
Human Resources :Mr. Zahid Hussain
Project : Co-ordinator Vertical Lead
FI-CO MM SD HR
1. Marcos
Leobett(lead)
2. Rohini Kharade
3. Nebo Thomas
4. Mohammed
Nouman
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02 September 2013
Finance and Controlling

Finance and Controlling is the key to start the Configuration of an SAP system.
Any SAP Implementation starts with the Creation of Company of which is

created by FI Module of SAP. Finance Module is to develop a framework under
which, the rest of modules will work.
The Overview
Here in FI and CO we start creating Company Code, Business Areas which will
be followed by Financial Accounting Settings, Creation of General ledger
Accounts, Configuring the Bank accounts, Accounts Receivable and Payable,
Listing the Payment terms and will conclude with Controlling Aspects of
Finance.
Controlling
Controlling concept is used generally for cost accounting purpose in SAP R/3
System for internal reporting. It also uses sub modules like cost centre
accounting, cost element accounting, profit centre accounting and internal
orders and profitability analysis.
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As Is Process To Be Process
(1) Organization Structure
1.1 Group of Companies. In SAP Company can be created with
Vardhan Industries sales organization a six-character code.(VARIND)
consist of six regionally based office T Code: OX15
in Mumbai,Pune,Banglore,Chennai,Nagpur
and New Delhi.
1.2 Company
Vardhan Industries In SAP a four character Company
Code
can be created. (VI00)
T Code: OX02
Company code is assigned to
Company
T Code:OX16
(2) Accounting Process
2.1 Financial Year
Company follows April to March as its Fiscal Year Variant can be maintained
for
Financial Year Financial Year and assigned to
Company
Codes.
Fiscal Variant consists 12 periods
starting from April to March. And 4
special periods can be maintained for
closing purpose. (K5)
T Code: OB29
Fiscal year variant can be assigned to
Company code.
T Code: OB37
2.2 Books of Accounts
Books of Accounts are maintained for the In SAP periods can be opened and
closed
12 months periods from April to March by using posting period variant and
assigned
every year. to Company Code. Define Variant for
open and close period.
T Code: OBBO
open and close period.
T Code:OB52
Assigned to Company Code.
T Code: OBBP
2.3 Currencies
Books of Accounts are maintained in Indian In SAP we can create and maintain
Rupee (INR). Currency codes
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T Code: OY03
(3) Accounting Structure
3.1 Journal
Day to day transactions are recorded in jo In SAP document types classify
journals. Separate journals are maintained transactions. A Document number
identifies
for cash, sales daybook, sales returns book, each journal entry. Document number
intervals
purchase daybook and purchase returns are assigned to Number range to
book. document types in Company Code
document types
T Code: OBA7
Internal Number Ranges' are
maintained
for Document Numbering
Maintain Number ranges.
T Code:FBN1
(4) General Ledger Accounting
The 'Account Groups' for creation of GL In SAP a Chart of Accounts can be
created
accounts: which contains list of G/L Accounts.
Under
the Chart of Accounts, G/L accounts
are
classified under Account groups.
T Code: OBD4
Account Groups:
Liabilities: Share Capital, Reserves & Liabilities:-
surplus, Secured Loan, Unsecured Loans, Share Capital, Reserves& surplus,
Current Liabilities & provisions Secured Loan & Unsecured Loans
Current Liabilities & provisions
Assets Assets:-
Fixed Assets, Investments, Current Assets, fixed assets
Loans & Advances, Liabilities investments
Current Assets
Loans & Advances
Income and Expenditure
GL account is recognized by description GL Master Records G/L Master record
is
maintained for General Ledger account
A number recognizes each G/L master.
T code: FS00
(5) Voucher Types
Receipt vouchers for Bank and Cash with Internal Number Ranges' are
maintained
one Serial Number. Payment vouchers for for Document Numbering
bank and Cash with one Serial Number.
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Petty Cash Vouchers are used at Plants

and at Head Office with respective Serial
Numbers.
(6) Bank Accounting
Bank A/c's: In SAP, a house bank can be
maintained for
each bank account
HSBC HSBC
All Business transactions are carried out Each bank can be treated as a house
bank
through HSBC T Code:FI12
For Bank reconciliation purpose we can
maintain Bank Accounts like main bank
a/c
cheques deposit a/c, cheques issue a/c
,etc.
(7) Cash Management
Authorized persons maintain cashbooks In SAP cash journals can be
maintained for
to record cash Receipts & payments both cashbooks
at the Plant and admin. T Code:FBCJCO
(8) Payment Terms
Payments terms for Vendors and Customers In SAP terms of Payment are
maintained for
0days,5days,7days,10,15,20,25,30,35,45,50, both customers and vendors are same
60
75,90,100,120days T Code: OBB8
60% pay within 90 days and 40% with 120
days
cash discounts are received on vendor pay.
they are posted to cash discount GL a/c
Std. Payment bloc reasons are used by VI
payment Tolerance for VENDOR and CUSTOME
are 100 INR or 5% whichever is less
(9) Loan Management
Interest on cash credit account is credited Incase of Customer/Vendors:the
'Interest
to Bank Account on the basis of Bank calculation' is done by settings made
Statement by
on personal loans interest will be settled assigning an Interest indicator' to the
master
finally on full repayment records of the customer and vendor
accounts
for which interest is required to be
calculated
T Code: OB46
(10)Taxes
10.1 Tax on Sales and Purchases In SAP account key is created for each
Tax
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Excise duty payable/paid Tax procedure is maintained and

assigned to
customs duty payable/paid country India. Tax codes are created
with the
central sales tax payable/paid percentage of Taxes.
Value added tax payable/paid Account keys: T Code: OBCN
Condition types: T Code: OBYZ
Tax procedure T Code : OBQ3
Assign country to calculation procedure
T Code: OBBG
Calculation meth T Code: FTXP
Withholding Tax certify
T Code:J1INCERT
Remittance challans
T Code:J1INCHLN
(11) Sundry Debtors Accounts Receivable
The accounts department is maintaining In SAP, generally customers are
created by
a debtors ledger which contains customers Sales department in FI customers are
grouped
sub-ledger accounts consisting of regular as customer account groups.
and one time customers T Code: OBD2
An account group can be created for
regular
customers and one-time customers
A customer master record is
maintained
Customer master record is recognized
by a
number from the number range interval
and
assigned to account group.
In SAP Billing Document/Invoice can
be
created
T Code: VF01
In SAP a house bank is maintained for
each
bank account for receivable purpose.
(12)Sundry Creditors
The accounts department is maintaining In SAP generally Vendors are created
by
creditors ledger, which contains vendor Material Management dept., in FI we
only
sub-ledger accounts consisting of regular group the similar type of vendors as
vendor
and one time customers account group
T Code: OBD3
For accounting purpose we are
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creating
Vendors.
T Code:XK01
Invoices can be created
T Code: MIRO
House banks are maintained for each
Bank
and cheque lots can be maintained for
outgoing payment to suppliers by
manual
as well as automatic payment
programs.
T Code: FBZP
Automatic Payment Program Run
T Code: F110
(13) Reminders
To follow up the advances paid to the Dunning- the SAP system allows using
Vendor
for goods, a statement prepared by accounts either the automatic dunning program,
which
dept. is sent to the purchase department duns all overdue items in accordance
with
on periodic basis selection criteria, or if required,
individual
to follow up the outstanding amounts from customers or vendors can be dunned
customers the accounts department sends T Code : FBMP
periodic reminders Dunning Program Run
T Code: F150
(14)Asset Management
14.1 Asset Accounting In SAP an asset class can be created
for each
It is utilized for managing companies fixed head.. Asset class consists of account
assets, we can categorize assets and to said determination key, number range and
screen layout
values for depreciation for each fixed asset.
Fixed asset having a useful life and are
utilise
for business process. In the course of
process
some wear and tear will occur for that reason
Calculate dep. An asset management team
is sitting in every manufacturing unit and
are the corporate office, which is responsible
for asset account maintenance and
disclosure
in the financial statements as per accounting
standard
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Acquisition of assets G/L master record is created for each

asset class
Retirement of assets An asset master is created for each
asset.
A number recognizes each asset
master.
Calculation of depreciation on assets Asset mast T Code:AS01
Asset classes T Code:OAOA
Screen layout T Code:AO21
14.2 Depreciation policy
Depreciation is provided on depreciable method of depreciation and rates of
asset depreciation
and straight line methods is followed in VI is provided in depreciation keys.
copy reference chart of dep.
T Code:EC08
Def. Depreciation areas
T Code:OADB
Depreciation keys
T code:AGAMA
Acquisition from purchase vendor
T Code: F-90
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COST ACCOUNTING
(1)Costing
Cost Accounting provides supporting In SAP a controlling area is created for
information to management for the the purpose of cost accounting
purpose Planning, Monitoring and Assignment of controlling area to
Reporting the operations of their company codes
business.
T Code: OKKP
It helps the management to take Number ranges are maintained for CO
decision
making for cost control and cost documents
reduction
Management makes policy decisions T Code :KANK
for effective and smooth running of
business
(2) Cost Element Structure
Vardhan Industries Limited
maintaining costs records in the form Cost element can created
cost elements. T Code: KA01
Cost elements are classified into: T Code:OKP2
Direct material, direct labor, direct exps Cost element category can created
and overheads T Code: OKA2
(3) Overheads
Distribution of overheads. It involves In SAP over heads can be distributed/
three stages apportioned or absorbed by using
Collection and classification of assessment cycles
overheads
Departmentalization of overheads T Code:KSU1
allocation/appointment of overheads
absorption of overheads
(4) Cost centre structure
Cost centre is an area for which cost is In SAP Cost centres can be created in
to
be ascertained for the purpose of controlling area.
cost controlling and cost analysis. T Code: KS01
An area may be a location or process or
group of persons or any allocated units
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TABLE OF CONTENTS
Contents
............................................................................................................................................................ 0
FINANCE AND CONTROLLING ................................................................................................................... 2
1 - INTRODUCTION ................................................................................................................................. 13
1.1 - ABOUT VARDHAN INDUSTRIES: ...................................................................................................... 13
1.2 - SCOPE OF CURRENT ENGAGEMENT ................................................................................................ 13
1.3 - SCOPE OF THIS DOCUMENT ............................................................................................................ 13
1.4 - OBJECTIVE OF THIS REPORT ............................................................................................................ 14
1.5 - BUSINESS PROCESS SCOPE .............................................................................................................. 14
2 – ENTERPRISE STRUCTURE ................................................................................................................... 15
2.1 - GENERAL......................................................................................................................................... 15
2.2 - COMPANY....................................................................................................................................... 15
2.3- COMPANY CODE .............................................................................................................................. 15
2.4-BUSINESS AREA ................................................................................................................................ 16
2.5 - CONTROLLING AREA (CO) ............................................................................................................... 16
3 - FINANCIAL ACCOUNTING GLOBAL SETTINGS: .................................................................................... 17
3.1 - CURRENCY SETTINGS ...................................................................................................................... 17
3.2 - FISCAL YEAR .................................................................................................................................... 18
3.3 - POSTING PERIOD VARIANT ............................................................................................................. 18
3.4 OPEN POSTING PERIODS ................................................................................................................... 18
3.5 FIELD STATUS VARIANT .................................................................................................................... 18
3.6 TOLERANCE GROUPS ........................................................................................................................ 19
4.DOCUMENTS ....................................................................................................................................... 19
4.1DOCUMENT TYPES ............................................................................................................................. 19
4.2-DOCUMENT NUMBER RANGE INTERVAL .......................................................................................... 21
4.3- POSTING KEYS ................................................................................................................................. 21
5 - GENERAL LEDGER ACCOUNTS ............................................................................................................ 21
5.1 - CHART OF ACCOUNTS ..................................................................................................................... 22
5.2ACCOUNT GROUP .............................................................................................................................. 23
5.3 - RETAINED EARNINGS ...................................................................................................................... 23
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5.4 - MASTER DATA MAINTENANCE ....................................................................................................... 24
5.5 - GENERAL LEDGER MASTER DATA SEGMENTS ................................................................................. 25
6 - GENERAL LEDGER POSTINGS.............................................................................................................. 25
6.1 - PARKED DOCUMENTS ..................................................................................................................... 26
6.2 - RECURRING ENTRIES ....................................................................................................................... 26
6.4 - DOCUMENT REVERSAL.................................................................................................................... 26
7 - GRIR ACCOUNT RECONCILIATION ...................................................................................................... 27
8-BANK ACCOUNTING ............................................................................................................................ 27
8.1 HOUSE BANK .................................................................................................................................... 27
8.2-CASH JOURNAL ................................................................................................................................. 29
9 –ACCOUNTS PAYABLE .......................................................................................................................... 30
9.1-VENDOR MASTER RECORDS ............................................................................................................. 31
9.2-INVOICING ........................................................................................................................................ 31
9.3-INVOICE CLEARING ........................................................................................................................... 31
9.4 - CHEQUES & ELECTRONIC BANK ....................................................................................................... 32
9.5 - PAYMENT RUN ............................................................................................................................... 32
9.6 - OTHER FUNCTIONALITIES ............................................................................................................... 32
9.7 - REJECT PAYMENT PROCESS ............................................................................................................. 33
9.8 - FUNCTIONAL DESCRIPTION ............................................................................................................. 34
9.9 - AUTOMATIC PAYMENT PROCESS .................................................................................................... 35
10 - PAYMENT TERMS ............................................................................................................................. 35
11 - INTEREST CALCULATION .................................................................................................................. 36
12.REMINDERS ....................................................................................................................................... 37
12.2- DUNNING NOTICES ........................................................................................................................ 37
13-TAXATION ......................................................................................................................................... 37
14 - ACCOUNTS RECEIVABLE ................................................................................................................... 38
14.1CREDIT CONTROL AREA ................................................................................................................... 38
14.2-SALES AREAS .................................................................................................................................. 38
14.3 - SUNDRY INVOICING ...................................................................................................................... 39
14.3.1 - ASSUMPTIONS ........................................................................................................................... 40
14-A-CUSTOMER MASTER RECORDS ....................................................................................................... 40
14.B - CUSTOMER RECEIPT PROCESSING................................................................................................. 40
14.B.1 - ASSUMPTIONS ........................................................................................................................... 41
MANAGE RECEIVABLES ................................................................................................................................ 41

MANAGE CUSTOMER .................................................................................................................................. 41
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15 - ASSET ACCOUNTING BUSINESS REQUIREMENTS .............................................................................. 41
15.1 - ASSET ACQUISITIONS .................................................................................................................... 43
15.1.1 - ASSUMPTIONS ........................................................................................................................... 43
15.2 - ASSET TRANSFERS ......................................................................................................................... 43
15.3 - BUSINESS REQUIREMENTS ............................................................................................................ 44
15.4 - ASSET DISPOSAL ........................................................................................................................... 44
15.5 - DEPRECIATION AND PERIOD END CLOSING ................................................................................... 46
15.6 - ASSETS YEAR-END CLOSING .......................................................................................................... 46
15.7 - LOW VALUE ASSETS .......................................................................................................................... 46

15.8 - BOOK AND TAX DEPRECIATION ............................................................................................................ 46
15.9 - LOW VALUE ASSETS .......................................................................................................................... 46
15.10 - INVESTMENT MEASURE.................................................................................................................... 47
15.11 - DEPRECIATION AND RATES................................................................................................................ 47
16-INFORMATION SYSTEM ..................................................................................................................... 47
17.1- CLOSING ACTIVITY ......................................................................................................................... 48
18-INTEGRATIONS .................................................................................................................................. 61
18.1INTEGRATION WITH SD.................................................................................................................... 61
18.2-INTEGRATION WITH MM ................................................................................................................ 62
18.3-INTEGRATION WITH HR .................................................................................................................. 62
19. STANDARD REPORTS IN FINANCE AND CONTROLLING ...................................................................... 62
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1 - INTRODUCTION
1.1 - About Vardhan Industries:

The company has been started by Harsh Vardhan Agrawal in the year
1972.Their goal is to maintain good and long lasting business
relationships with our clients by giving them good quality products at a
reasonable cost. We are able to deliver complete customer satisfaction
with our quality products.
The Address for the Bangalore: Salanpuria Infinity, 3 floor, Bannerghatta
road, Bangalore, post code: 560029 – India.
Vardhan Industries sales organization consist of six regionally based office
located in Mumbai, Pune, Bangalore, Chennai, Nagpur, and New Delhi.
The sales organization employs approximately 250 sales representatives
who sell six distinct product lines –Clothes, Sports Equipment’s &
Apparels, Electronics, Furniture & Lifestyle Furniture
To compensate for the extra ordinary growth it has enjoyed Vardhan
Industries has extended its manufacturing base from 4 to 6 plants the last
2 plants have been built in Orissa (India) The other 4 plants are in Punjab
and Haryana
Vardhan Industries has decided to go for SAP because of the fragmented
nature of its business (Financials, profitability and manufacturing
systems).
1.2 - Scope of Current Engagement

We are engaged to implement the following modules of mySAP ERP
 Financial Accounting
 Controlling
 Treasury-Cash Management
 Enterprise-Consolidation
1.3 - Scope of this Document

In this Business Blueprint of the assignment, study of As-Is processes has
been carried out and proposed To-Be solution has been formulated in
consensus with Vardhan Industries.
This document is confirmation of Enterprise Structure, Master Data,
Business Processes and information requirements to be set up in SAP in
relation to each Module.
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1.4 - Objective of this Report

Demonstration of reports, Business processes on test or demo data to
ensure that Vardhan Industries users find it easier to relate to the same.
Based on the discussions, business scenarios will be documented and
need to be addressed by the configured ECC6 system. The purpose of
this report is to confirm the understanding of these business scenarios,
which will form the basis for system specifications. This document covers
some As it Is and To Be processes. The exact data on master data fields,
their status, number ranges used in individual transactions shall be
determined during the Realization phase.
1.5 - Business Process Scope

The Financial Accounting (FI) module will cover following business
processes:
 Master Data Maintenance in Accounting

 General Ledger Accounting
 Accounts Payable
 Accounts Receivable
 Bank Accounting
 Asset Accounting
 Closing Period
 Management Information System in FI
Controlling (CO) module will cover following business processes:
 Cost Centre Accounting

 Profit Centre Accounting
 Internal Order
 Profitability Accounting
 LSMW
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2 – ENTERPRISE STRUCTURE
2.1 - General
SAP Financial Accounting Module shall cover Vardhan Industries company
Finance related functions across various business locations.
2.2 - Company
As it is: Vardhan Industries sales organization consist of six regionally based
office located in Mumbai, Pune, Bangalore, Chennai, Nagpur, and New Delhi.
The sales organization employs approximately 250 sales representatives who
sell six distinct product lines –Clothes, Sports Equipment’s & Apparels,
Electronics, Furniture & Lifestyle Furniture
To compensate for the extra ordinary growth it has enjoyed Vardhan Industries
has extended its manufacturing base from 4 to 6 plants the last 2 plants have
been built in Orissa (India) The other 4 plants are in Punjab and Haryana.
Company-VARIND
TCode:OX15
2.3- Company Code

 Company Code is the smallest organizational unit for which complete,
independent accounting can be carried out. A legally independent
company is generally represented by one Company Code in SAP
system. Customer and Vendor master records have a Company Code
area, which contains data that is only relevant to one Company Code
 Company code – is the central entity in FI as well the highest entity in
Logistics. For all Customer, Vendor and Material related transactions
that have accounting implications, it is necessary for the system to derive
the Company Code.
Each plant and each Sales organization is assigned to one and only one
Company code
A four character Company Code is created
Company Code - V100 TCode:OX02
Company code is assigned to company
TCode:OX16
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2.4-Business area
To Be – Vardhan Industries has decided to utilize 5 business areas, see the
chart flow bellow.
 Clothes (CBA)
 Electronics (EBA)
 Lifestyle (LBA)
 Furniture (FBA)
 Sports (SBA)
 Shared Services (SSBA)
These business areas are created for reporting purpose

TCode:OX03
2.5 - CONTROLLING AREA (CO)
A controlling area represents a closed system for cost accounting purposes.

Cost allocations can only be performed within a controlling area. Several
Company Code may be assigned to one controlling area, which gives the ability
to perform cross-company code controlling.
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Single Controlling Area VI00 is used in Vardhan Industries
Business Processes:
Financial Accounting:
SAP ECC
3 - Financial Accounting Global Settings:

Overview:
The purpose of this chapter is to document configuration settings in Financial
Accounting Global Settings for Company Code. These settings control the
transaction entry and dependent controls in SAP. Financial Accounting requires
following basic settings:
 Currency settings
 Fiscal year and Fiscal year Variant
 Posting Periods
 Open posting periods
 Tolerance Groups
3.1 - Currency Settings

As it Is – Vartdhan Industries uses INR as their primary currency
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To Be – Vardhan Industries will use INR as primary currency however they

would like to use USD for valuations in the international market.
3.2 - Fiscal year

Books of Accounts are maintained by the Company with Financial year April to
March. Fiscal year variant is maintained for the Financial Year
Vardhan Industries operates on an April-March non-calendar year and will need

4 special posting periods.
Fiscal Year Variant-K5 TCode-OB29
Fiscal Year variant K5 is assigned to Company Code
TCode-OB37
3.3 - Posting Period Variant

Posting Period means monthly period of fiscal year ie: period within fiscal year
for which transaction figures are updated. Every transactions that is posted in
assigned particular Posting Period. The transaction figures are then updated
for this period.
Vardhan Industries will have 12 normal periods and 4 special periods. The first
period for the fiscal year will be April and twelfth period will be March. The four
extra periods are special periods in system for accounting year end closing and
adjustment entries.
Shared Services Does the accounting for the entire company and hence one
posting period variant will be sufficient.
So Posting period variant is created. Posting Period Variant VI00 is used.
TCode:OBBO
Posting period variant is assigned to Company code
TCode:OBBP
3.4 Open Posting periods

Periods are opened for the fiscal year through the posting period variant.
TCode:OB52
3.5 Field Status Variant

Field status variant is copied from standard SAP with 47 field status groups.
Field status group defines the status of the fields while making posting to the
GL accounts.
Field status variant-VI00
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TCode:OBC4
Field status variant is assigned to Company code.
TCode:OBC5
3.6 Tolerance groups
Tolerance group for GL account is created in each Company Code. In

Tolerance groups the permissible amounts for accounts and for line items are
specified
TCode:OBA0
Vardhan Industries depending on the nature of their business as identified the

following pre-defined exemptions and tolerances in the system
The maximum document amount the employee is authorized to

post = 10,000,000 INR The maximum amount the employee can
enter as a line item in a customer or vendor account =
10,000,000 INR
The maximum cash discount percentage the employee can grant in a

line item – 5%
The maximum acceptable tolerance for payment differences for

the employee for payable and receivables is 2%
The percentage amount related to cash discount
The maximum permitted payment differences
TCode:OBA4
Limits to which differences in payments are posted automatically to expense or
revenue accounts when clearing open items.
Terms of payment are used for settle the invoices
TCode:OBA3
4.DOCUMENTS
4.1Document Types
Every transaction is recorded in Journal at the first and separate journals are
maintained for cash, sales daybook, sales returns, and purchase daybook,
purchase returns.
Standard SAP Document types are used to classify the transactions.
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Document number intervals are maintained for each document type. From this
number interval system picks and assigns a number to each transaction.
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Document type
TCode:OBA7
4.2-Document number range interval

Number intervals
TCode:FBN1
4.3- Posting Keys

Posting keys controls Debit or Credit account indicator for each line item. The
posting keys describe the type of transaction that is entered in line item and
allowable account type, which will be entered for the respective line item,
Vardhan Industries will use standard SAP posting keys.
TCode:OB41
5 - GENERAL LEDGER ACCOUNTS

Overview
General Ledger accounting provides a comprehensive picture for external
account and accounts. Essentially the general ledger serves as a complete
record of all business transactions entered into SAP system. It is the centralized
up-to-date reference for rendering of accounts. Actual individual transactions
can be checked at any time in real-time processing by displaying the original
documents, line items and monthly Debits and Credits at various levels such
as:
 Account
 Journals
 Summary of monthly Debit and Credit(Balances)
 Balance sheet/profit and loss evaluations
 Carrying out Recurring Entries
 Other analysis
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General Ledger has following features

 Free choice of level: Corporate group or Company
 Automatic and simultaneous posting of all Sub-Ledger items in the
appropriate general ledger accounts (reconciliation accounts)
 Simultaneous updating of general ledger and cost accounting areas
 Real time evaluation of and reporting on current accounting data in the
form of account displays, financial statement versions and additional
analyses
 Multiple currencies handling (foreign vendor accounts can be maintained
in the Vendors currency).
5.1 - CHART OF ACCOUNTS:
Chart of accounts are General Ledger account Master records required in one
or several Company Code. Postings are made to these accounts. A Company
Code must be linked to exactly one Operating Chart of Accounts. An Operating
Chart of Accounts can be linked to many companies.
To- Be - Vardhan Industries will utilize a single chart of accounts to be used by
all its company codes. VICA will be used as SAP denomination. The length of
the GL code will be 6 digits (numeric).
Chart of Account: VICA

TCode:OB13
Chart of accounts VICA is assigned to Company Code
TCode:OB62
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5.2Account Group
Account group is a logical grouping of accounts, which have similar properties.
The account code of an account depends upon the number range that is
assigned to Account group. The account group determines the function of fields
available at the time of General Ledger master creation.
 General Ledger accounts are maintained under various heads like

Capital,Liabilities, Assets,Income,Expenditure,Creditors and Debtors
ledger
 List of General Ledger Accounts, Account Group and Document posting
 Same list of General Ledger accounts is used
 Field status groups shall be created for controlling transaction
processing
 GL Account numbers shall be externally assigned
 Open items accounts shall be identified
 Accounts where line items display is required shall be identified
 GL account is recognized by description and Number Range.
Assets: fixed Assets, Investments, Current Assets. Loans and Advances
Liabilities: Share Capital, Reserves& surplus, Secured loans, unsecured loans,
Current liabilities & Provisions
Incomes
Expenditure
TCode:OBD4
Account group for Vardhan Industries:
TCode:OBD4
5.3 - Retained Earnings

Vardhan industries has operations only in India and hence the company
would so all reporting bases on the Indian GAAP
The Single retained earning accounts is used for the PL and BS purpose
TCode:OB53
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5.4 - Master Data Maintenance

The General Ledger account master records control the posting of accounting
transactions to General Ledger account and the processing of posting data.
Master records for each account needs to be created and maintained in

system.Master data contains information that controls the entry of business
transactions in an account and the processing of data to that account.
Within master data processing, accounts are defined so that they can be
updated by postings in other modules of SAP like HR, MM and SD.
General Ledger account master record processing will enhance the efficiency in
executing the following activities:
 Management of master record (G/L accounts)- creation and maintenance
 Blocking of accounts from postings on a temporary basis.
 Updating the transactions of other modules to General Ledger.
 Line item Reporting and/or Balance-Only Reporting.
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5.5 - General Ledger Master Data Segments

General Ledger master records are divided into two areas so that Company
Codes with same Chart of Accounts can use same General Ledger
accounts.
 Chart of Accounts Area- The chart of accounts area contains the data that
is valid for all company codes must be filled/selected while creating
masters are as follows:
1.Account group
2.P&L statement/Balance Sheet
3.Company Code specific area
 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.
TCode:FS00,OBY7,OBY2
This data controls entering and processing of business transaction data in the
appropriate account as well as management of account within a Company
Code. The fields that must be filled/selected while creating masters are as
follows:
 Currency
 Reconciliation account for account type
 Open item management
 Line item display
 Field status group
6 - General Ledger Postings
Overview
The system uses the document principles as its reference for entering and
posting business transactions. Each business transaction is stored as a
document form within the system till it is archived. The following common
documents will be used within the General Ledger posting area:
 Adjustment entries
 Banking and Cash Transactions
 Provision Postings
 Other G/L Transactions
The document header contains information that applies to the entire document,
such as the document type, date and number. The document number will be
assigned internally
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02 September 2013
The line item only contains information, which is specific to that line item. It
always has an amount and one account number. It may also contain other
specifications, such as the terms of payment, a cost centre or an explanatory
text, depending on the posted transaction. The posting of general ledger
transactions shall be handled at all locations and at the corporate office.
The following functions will be used to process GL documents:
6.1 - Parked Documents

The feature of parked document may be used in various operating scenarios
such as:
 A user does not know a part of the inputs to be entered in the document
 A document needs to be approved or changed if required by an approving
authority.
Document parking can be used to enter and store (park) incomplete documents
in the SAP system without carrying out extensive entry checks. Parked
documents can be completed, checked and then posted at a later date. Parking
documents does not update any data in the system, such as transaction
figures. In case of parked document the amounts, account codes may be
changed till it is posted. However document date, cannot be changed. Posting
date may be changed at the time of posting the document.
The facility of parked documents will be used in VI
6.2 - Recurring Entries

Recurring Documents are created for processing transactions that are of
routine and repetitive nature.
6.4 - Document Reversal

Document reversals used to reversal a general ledger transaction in error,
however not for an accounting entry posted from Asset Accounting or other
module. A reason code can be set and assigned to a reversal document. The
documents, which have been posted due to error, should be reversed in the
same period (Month) if the posting period is open. In case where the period is
not open then it has to be posted to the current period. Vardhan Industries will
use _________________.
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7 - GRIR Account Reconciliation

This process is triggered by the requirement to maintain or reconcile the GRIR
account. It includes automated clearing and resolution of discrepancies. The
process ends with reconciled GR/IR accounts. The GR/IR Clearing Account is
clearing account where the invoices received are matched with the goods
received against the relevant Purchase order, and are subsequently cleared
provided there is is a perfect there is perfect GR/IR match or the discripancies
are very low. If the items remain in the GR/IR Clearing Account then it means
there may be several issues with the account: these may be:
o Invoice has not been received because vendor has not issued it
o Invoice has been received by Good Receipt has not been done
o Discrepancy between invoice and Good Receipt creating a discrepancy
o Invoice does not include the freight charges
Run Clearing of GR/IR Account- this activity automatically matches the entries
in the GR/IR Account. Automatic matching occurs when the entries pertaining
to the goods received for Purchase Order (both price and quantity) equal, or
have a minimal discrepancy to the goods invoiced for the same Purchase
Order. Debit and Credit entries that satisfy these criteria are automatically
cleared by this activity. Shared Services Accounting is responsible for
completing the relevant Shared Services financial tasks (GRIR reconciliation)
as per the Financial Services scope of services document.
8-BANK ACCOUNTING
8.1 House bank
In SAP, a house bank can be maintained for each bank account
TCode:F112,FCHI
House bank of a company code is denoted as banks ID every account specifies

by an account ID in the SAP system,
Vardhan Industries used HSBC bank as their main bank. There is a single bank
account with HSBC banks and 2 and the legacy system used 2 other GL
accounts for inward and outward clearing
The three main methods of payment are EFT – Where vendors have EFT
accounts Via NEFT and RTGS
Physical Cheques are send by banks for the vendors (these Cheques are
printed at bank for the vendor and then send to the company accounts office
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02 September 2013
where they are distributed by the accounts payable team or posted to vendors
Manual Cheques are also made by the accounting team for the emergencies
situation but the system takes care of the entire posting and the final Cheques
are written by hand by the accounting staff on the Cheques books stationery
provided by the bank
Address details for the main HSBC Bank

HSBC Bank – Account Number – 10001-9898035
No.7, HSBC Building, Opposite To ING Vysya Bank, M G Road, Bangalore -
560001
xxxxxxx is the main bank account and a physical bank account

xxxxxxx is used for Cheques inward
xxxxxxx is used for checked issues outwards
xxxxxxx is used for wire transfers
xxxxxxx is used for interim postings
Cheques issues out to vendors will be credited to GL 80000003 (Outward

clearing)
For Cheques issues out based on the Cheques cleared in the bank accounts
the following entry will be passed automatically
xxxxxxx - Outward Clg – Debit

xxxxxxx– Main Bank Account – Credit
Similarly Cheques issues by Customers are debited to the GL Account –
xxxxxxx
For Cheques received the following entry will be passed automatically
xxxxxx – Inward Clearing – Credit

xxxxxx – Main Bank Account – Debit
Thus post upload the main bank account will show the actual balance at
bank and clearinhg accounts will be reconciliation items
The following transection types are in used
MAINBANK Main Bank Account

BANKCHGS Bank Charges
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CHECKIN Checks Received

CHECKOUT Checks Issued
WIRETRANSFER Wire Transfer
INTERIMPOST Reconciliation Items
HSBC Bank has following Transaction Type in their bank statements
701 – Bank Charges

702 – Checks Issues
703 – Wire Transfers
704 – Check Received
705 – Interim-post
** Although the electronic bank statement works most of the time but still
Vardhan Industries would like to have the facility to manually upload the bank
statements for exceptional situations
8.2-Cash Journal
Vardhan industries has lots of dealing in cash and also does some cash sales
and would like to have a separate cash journal/register
The following activates needs to be supported by Cash Register
o Cash sales revenue
o Cash transfers from the bank to the cash account
o Vendor invoice payments
o Cash expenses (Conveyance, Repairs, Meals, Postage, and
Stationery) to start with
o Cash transfers from the cash account to the bank,
o Customer payments
Settings for Cash Journal
GLaccount for cash journal-
Document type for cash journal-SA
Number Range Intervals TCode:FBCJC1
Set up cash journal TCode:FBCJC0
Create bank transactions TCode:FBCJC2
Set up print parameters TCode:FBCJC3
Postings to cash journal is made through TCode:FBCJ
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9 –Accounts Payable
The Accounts Payable application component records and manages

accounting data for all vendors. It is also an integral part of the purchasing
system:
Deliveries and invoices are managed according to vendors. The system

automatically triggers postings in response to the operative transactions.
Accounts Payable includes the following processes: Payment processing of all

invoices, including rejected payments, vendor payment queries and GR/IR
Reconciliations. This process is triggered by the processing a payment to a
vendor which fall within the corresponding vendor payment terms. It may
include the running and checking of the payment proposal, performing final
payment runs and the releasing of payment, uploading to the banking system,
transmitting and releasing of payments and sending of cash forecast to
Treasury. The outcomes of this process are cleared vendor accounts and
payment file submission to the bank
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Classification of vendors Description Account Group

Purchasing Vendors Purchasing vendor - The vendor which purchase VIPU
order form is to be sent to the address, This is
vendor to which payment is to be done, Account
payable is to be posted to the vendor
Service Vendors Vendors for Services – Like Repairs, Canteen, VISR
Office Maintenance, IT etc.
Private vendor The vendor which is running business privately, VIPT
such as lawyer, tax accountant, Etc.
One-time Vendors The vendor which consecutive transaction is not VIOT
expected
Employee Employees of VI, to be used for down payment to VIEM
employee
Packing Mat Vendor for Packing Materials VIPM
Vendor Account Groups TCode: OBD3

Number ranges are assigned to vendor account groups TCode:OBAS
Number range for vendor account groups TCode:XKN1
9.1-Vendor Master Records

A vendor master record is maintained for each Vendor. Each vendor master
record is recognized by number.
Vendor masters: Vendor Master record consists of three segment, general
data, company code data and purchasing data.
TCode:FK01,XK01
9.2-Invoicing
Invoicing is done through the following steps:
Purchase order
TCode:ME21N
Goods receipt
TCode:MIGO
Invoice verification
TCode:MIRO
9.3-Invoice clearing
Invoices are cleared through cheques, bills payable, and cash
Payment method-C(Cheque) and electronic bank
Document type-FZ
TCode:F-53
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9.4 - Cheques & Electronic Bank

Cheques will not be printed from SAP and vendors are encouraged to
provide EFT banking details or utilize printing cheques at bank. If on site
cheque is required then normal standard purchase to pay process will be
followed. Cheque details will be printed and attached as supporting
document to manual cheque for signatory approval.
9.5 - Payment Run

Payments run will be executed and invoices will be paid within the agreed
payment terms.
- Ability to select the companies for which outstanding invoices are to be paid.
- Ability to select a range of vendors and customers to be paid (including
selecting a single vendor/customer)
9.6 - Other Functionalities

Master data functionality will be enabled to ensure netting of customer and
vendor accounts
No Penalties will be paid for late payments unless approved by
budget holder of cost centre used Taxes will be paid to the vendor
where applicable.
WHT taxes to be deducted during payment runs where applicable. The

WHT will be configured as per the exiting local statutory rules and rates
Invoices are to be paid in a timely manner with due cash discounts taken.
Discount will be deducted during the payment run, depending upon the
payment terms.
Many of the process steps within Accounts Payable (AP) will be executed by a
centralized team from Shared Business Services (SBS), including the
processing of all payments on behalf of the business. As well, the processing
of invoices will be managed in the system as a part of SAP, it is assumed that
all payments must go through SBS and every payment must be associated
with an invoice. Therefore, it will be valuable to track the duration of individual
process steps or transactions throughout the AP Cycle from a management
point of view, and especially to assign accountability for payments made late.
The purpose of this Account Payable (AP) Cycle Time
BW report is to provide a means to capture metrics on how many days are

consumed for the processing of all invoices through each step of the AP
Cycle. A single invoice may contain multiple line items for goods or services
procured. While actual goods received are tracked by the creation of Goods
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Receipts (GR), the capture of services received is tracked by the creation of

Service Entry Sheets (SES) that must be approved. The Creation and
approval Dates of every SES are also required for the AP Cycle Time report.
Complexity is added by this requirement because there may be multiple SES
Numbers included on one invoice document. In order to report the Creation
and Approval Dates per SES, the AP Cycle Time report must therefore
provide data at the line item level of the invoice document.
The payment processing process is the process of identifying documents in

SAP that are ready for payment, clearing the document as paid and generating
an electronic file to allow the bank to automatically transfer cash to the
beneficiaries account. Urgent payments with the requirement for vendor to
receive payment the same day can be processed in SAP if processed before
the Banks' cut-off times. If cut-off times is exceeded then payment is executed
outside of SAP.
If any duplicate entry is detected on payment proposal, the assumed

duplication must be blocked from payment proposal, and submitted to the
Query Processor for investigation and action
Before presenting the manual cheque to the two signatories, the information
on the check must be completed exactly as on the system layout cheque
copy. The lot numbers between system generated cheque and manual
cheque must be verified to agree prior to presenting the cheque for
signatory. Name of the payee, amount and cheque lot number must be
verified and confirmed, ready for signature. Authorized signatories must
verify and confirm that the manual cheque and system generated copy
agree. System generated cheque register is supporting document for manual
cheque and must be attached to the cheque when received for signatures.
9.7 - Reject Payment Process

This process is triggered by a vendor not receiving payment. It may include
receiving an error from the banking system, return of payment moved back to
vendor open item and blocked. Also includes notifying of invoice processor
and contacting vendor to fix error. The outcome of this process is a vendor
receiving payment and all queries resolved.
Root cause of rejected payment can include:
- Incorrect Payment Method

- Wrong Bank - Account Selected
- Wrong Currency
- Closed Account
- Incorrect Transit/Routing/ Invalid for ACH Payments
- No Account - Cannot Locate
- Incomplete Beneficiary Bank Details
- Vendor Refused Payment
- Other
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9.8 - Functional Description

The BW report for Accounts Payable (AP) Vendor Payment Analysis will
support research of invoice payments down to the document line items level.
Some AP transactions are more labour intensive than others, take more time
and may be more expensive to perform. From this report, users will be able to
view Vendor Ageing data, as well as discounts taken or lost based on vendor
payment terms met or missed, respectively. For paid invoices, it is valuable not
only to report on payments made too late, but also payments made too early
due to the opportunity costs of making early payment. For ageing analysis of
open vendor invoices, the following will be functionally designed:
Ageing of invoices sometimes start on Day 0 and not Day 1. This is because
many of vendors are set up with 0 Days payment terms. However this would
not affect the ageing calculations since the Payment Due Date will already
account for the payment terms.
The following Ageing Categories will be available for reporting: 1 - 7 Days,

8- 14 Days, 15 - 21 Days, 22 - 30 Days, 31 - 60 Days, 61 - 90 Days
The Ageing Categories will be able to be grouped. The hierarchy representation

of this grouping is below:
1 - 30 Days
1 - 14 Days
1 - 7 Days
8 - 14 Days
15 - 30 Days
14 - 21 Days
22 - 30 Days
Over 30 Days
31 - 60 Days
61 - 90 Days
Over 90 Days
Transactional data for this report will be from Accounts Payable only, with
traceability back to data on the original invoice document created in Materials
Management For ageing of outstanding invoices, users must drive the report
with a Key Date, which will be the referenced point-in-time for calculating
whether invoices are current or overdue.
Ageing of Overdues = Calculating Payment Due Date, Key Date for open items
where Key Date > Due Date
Ageing of Future Payments = Calculating Key Date, Due Date for open items
not yet overdue (where Key Date < Due Date).
Since users will be able to extract all information related to vendor payments to
help answer vendor queries and government queries to review their payment
history, it will also be used to support the financial audit process.In addition, this
report may be used as an aid in determining how much the Shared Business
Services (SBS) team, which is responsible for processing invoices, should
charge out to the businesses. It is assumed that reconciliation of Goods
Receipts to Invoice Receipts will not be covered by the Vendor Payment report
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but instead by sourced from the Logistics Invoice Verification (LIV) report. In
addition, all reporting of Non-Order Invoices will be sourced from LIV in the
future SAP solution.
9.9 - Automatic Payment process

Steps involved in APP:
1. All company codes for payment transactions

2. Paying company code
3. Payment methods in country
4. Payment methods in company code
5. Bank determination
6. House banks
TCode:FBZP
Vardhan industries would like to use the standard configuration for the APP
 It would like to pay its Assets D/P and Vendor D/P via the APP
 It would like to pay standard Customer D/P with APP
 Maximum incoming payment allowed – 100 INR
 Maximum Outgoing Payment allowed – 1000 INR
To achieve the SAP objectives VI would like the Recon Accounts/ Sort Key
and Payment Terms as mandatory field while entering the vendor master for
all categories
10 - Payment Terms
Payments Terms for Vendors and Customers are as below
0 Days
5 Days
7 Days
10 Days
15 Days
20 Days
25 Days
30 days
45 days
50 days
60 days
75 days
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90 days
100 days
120 days
 Some big payments have instalment payment scheme and the most
 common one as of now is 
  60% pay within 90 days and 40% with 120 days 
 Cash discounts are received on the vendor payments. They are posted
 to cash discount GL A/c 
  Standard Payment Block reasons are used by Vardhan Industries 
 Payment Tolerance for Vendor and Customer are 100 INR or 5%
whichever is less.
Terms of payment TCode:OBB8

Payment terms of instalments TCode:OBB9
11 - Interest Calculation
Interest can be calculated on GL account balances in two ways:
 Account balance interest calculation
 Calculation of interest on arrears
Standard Interest calculation types available
P:Item interest
S:Balance Interest
Z:Penal interest
Interest Indicators
Balance Interest Indicator
Item Interest Indicator
TCode:OB46
Reference Interest rates:
TCode:OBAC
Time based terms
Debit interest: Balance Interest calculation
Credit interest: Balance interest calculation
Debit Interest: Arrears Interest calculation
Credit Interest: Arrears Interest calculation
TCode:OB81
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12.Reminders

1- Dunning Procedure
The dunning procedure determines how business partners can be dunned. It
contains the number of dunning levels, dunning frequency, minimum amounts
and dunning activites.
Dunning level indicates how often an item or an accout has been dunned and
describes the steps to be maintained for a dunning procedure. Dunning levels
control the dunning process.
Dunning area is an organizational unit within a company code from which

dunning is conducted. The dunning procedure is controlled and the dunning
notices are sent separately per dunning area.
A dunning area can represent the following:
 Business area
 Sales organization
 Distribution channel
 Division
12.2- Dunning Notices

Weekly reminders are sent to customers with regard to overdue more
than______
Yearly once Balance confirmation statement is sent to vendors Dunning
charges will be charged.
Interest notice send to the customers on overdue
Dunning procedure:VI00
Dunning interval in days:7
Dunning levels:6
Minimum amount for dunning: Rs.
Dunning charges:INR
TCode:FBMP


13-Taxation
Tax on Sales and Purchase
The following are the Taxes, which the company is paying on sales and
purchases
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The Tax on sales purchase is flat in Vardhan industries and does not require a full blown CIN
version for Taxes
The below tax are used in VI
Input Tax
V0 – 0%
V1 – 10 % deductible (posted to input tax account)
V2 – 10 % non-deductible (should be added to the expense account)
Output Tax
A0 – 0 % output tax
A1 – 12 % output tax (Posted to the Output Tax GL Accounts)
Tax is determined on the posting date basis

Cash discounts are not deducted from the base amount
Condition Types:
TCode:OBQ1
14 - Accounts Receivable
The Accounts Receivable application component records and manages

accounting data of all customers. It is also an integral part of sales
management. All postings in Accounts Receivable are also recorded directly in
the General Ledger
14.1Credit control Area

Credit control area is responsible for granting and monitoring credit to the
customers
Credit control area for VI will be VI00
Maintain credit control area
TCode:OB45
Company code VI00 is assigned to credit control area VI00
Assign credit control area to company code.
TCode:OB38
14.2-Sales Areas
Customer Account Groups TCode:OBD2
Number range for customer account groups TCode:XDN1
Number range are assigned to customer account groups.
TCode:OBAR
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Accounts Receivable includes the following processes:
 Sundry Invoicing
 Receipt Processing
 Managing of Receivables and Managing of Customer
 Inter function queries
14.3 - Sundry Invoicing

Generation and printing of invoices from non-traded goods and services
transactions. This process is triggered by a number of following events
- Sale of assets
- Employee cost transfers
- Purchases at site by external customers
- Recovery of costs associated with leases on land from external customers
- General recovery of costs from external parties
- Recovery of damage costs, services or goods supplied to contractors
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- Staff credit cards and forex issued to employees

- It includes all invoicing that is not supported by Sales Order
management and will not require the Billing Process. (i.e. Non Product
sale)
14.3.1 - Assumptions
List of assumptions that will be made while developing and/or designing this
process
Credit assessments –
All sundry customers have met the credit assessment requirements.
Tax requirements Tax requirements are satisfied
14-A-Customer Master Records -

Customer Master Records are maintained.
Netting is activated to ensure that net receivable of payable situation is
processed.
All invoices generated are automated in SAP. Therefore there will be no more
invoices maintained in Excel
User access will be restricted through user validations. This restriction will be
based on account group’s i.e.trade, sundry and intercompany
TCode:FD01,XD01
Customer payments
Payments are accepted from customers through cheque, bills receivable
Document type-DZ is used to make payments.
Incoming payments are made through cheques and bacs
TCode: F-28
Special GL transactions
Advances from customers are treated as Special GL transactions
F-Down payment request
A- down payment
TCode: OBXR
14.B - Customer Receipt Processing

This process is triggered by cash receipts received in bank accounts. It
includes managing incoming payments and clearing of open items. The
outcome of this process is zero balance cash clearing accounts. The
Receipting process covers the handling, processing, recording and banking of
cheques and cash received. It also includes Direct Deposits, unidentified
receipts and refunds.
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14.B.1 - Assumptions
Payment proposal includes Accounts Receivable Sub ledger. Therefore

'payables' in Accounts Receivable sub ledger will be included in payment
runs executed in Accounts Payable process
Manage Receivables
This process is triggered by open line items in customer accounts. It includes
the running of the aged customer listings, generating of customer statements
and also reviewing of outstanding debts. The outcome of this process is
reconciled debtors and on average (or all) payments are made within 30 days
from payment due date. Accounts Receivable
Manage Customer
Manage customer and Intercompany query is triggered by differences on
customer accounts. The process may include clearing the account, creating
credit memos, creating dispute cases, posting incoming payments and
resolving residual items. The outcome of this process will be reconciled
customer accounts
15 - Asset Accounting Business Requirements

The Fixed Asset Accounting Major Process begins at the point of Asset
Acquisition, the first step of the asset life cycle and ends with the Asset
Disposal.
It includes the following sub processes:
- Asset Acquisitions
- Asset Transfers
- Asset Disposal
- Capital Spares
- Depreciation and Period end Closing
- Asset Year end closing
- Low Value Assets
- Asset Impairments
- Asset Periodic Review
Charts of depreciation
A chart of depreciation is used in order to manage various legal requirements
for the depreciation and valuation of assets
Chart of depreciation code:VI00

TCode:EC08
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Depreciation area: book depreciation

Chart of depreciation VI00 is used for company code VI00 to country India
TCode:OAOB
Number interval for asset number in asset class.
TCode:AS08
Asset Class
Asset class description Account Screen layout Number
determination range
Land & 01
buildings
Plant & 02
machinery
Vehicles 03
Fixture and 04
fittings
Low value 05
assets
Asset under 06
construction
The Fixed Asset Process covers the following specific categories of Fixed
Assets:
- Capital Work in Progress "Assets under Construction"

- Capital Spares
- Intangible Assets
- Low Value Assets (Taxation)
- Land & Buildings
- Plant and Equipment
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15.1 - Asset Acquisitions

The asset acquisition process is triggered by the request for a new capital
project: this process is executed through capital Investment management and
the asset acquisition takes place during settlement directly from the Internal
Order to the final asset master record or with the final capitalization settlement
from the asset under construction to the final asset master record.
15.1.1 - Assumptions
All acquisitions for Capital Project assets follow the Investment Management
process and are managed and capitalized through the Internal Orders. Cost
allocations are assigned to Internal Order through the normal Supply process
and settled monthly to the Assets under Construction account and transferred
to the Final Asset accounts when capitalized
15.2 - Asset Transfers

This process involves the financial recording of the transfer of an asset
between Cost Centres (Master data change), Asset Classes, (Disposal and
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Acquisition), A Fixed Asset Transfer may involve a physical transfer of an

Asset or part of an Asset on the Fixed Asset Register i.e. between Cost
Centres (Master data change) or it may involve a paper transfer of an Asset or
part of an Asset i.e. between Asset Classes or Cost Centres (Master data
change). The transfer may involve a complete or partial transfer. The result will
be an asset transferred based on business requirements.
There are various reasons why an asset transfer may be required, some of
which could include
Asset is no longer required by the Business to generate income and can
be transferred to another part i.e. a different Cost Centre (Master data
change) or Disposed
Asset has been created in the incorrect Asset Class and must be transferred
to the correct Asset Class (Gross posting required)
Asset has been created at too high a level and needs to be split into
its major components for ease of identification and in accordance
with Group Accounting Policy
15.3 - Business Requirements

Mass Asset Transfer
Complete Asset Transfer
Partial Asset Transfer
15.4 - Asset Disposal

A Fixed Asset Disposal involves the permanent removal of an Asset or parts of
an Asset from the Fixed Asset Register so that it no longer attracts
depreciation. The remaining Net Book Value of the asset is taken up against
the General Ledger income for the current period in the form of a profit or loss
on disposal of the asset. This profit or loss is calculated after taking into
account any revenue on sale and any costs involved in disposing of the asset
which are not related to dismantling the asset. The disposal may take a number
of forms:
Fixed Asset Disposal with Revenue and with Customer – Complete Retirement
Fixed Asset Disposal with Revenue and with Customer – Partial Retirement
Fixed Asset Disposal (Scrapping) without Revenue – Complete Retirement
Fixed Asset Disposal (Scrapping) without Revenue – Partial Retirement
There are various reasons why an asset disposal may be required

some of which could include
- Asset is out of use
- Asset is obsolete and a replacement has been purchased
- Asset is broken and un-maintainable
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- Asset’s whereabouts is unaccounted for

- Asset is no longer required by the Business to generate income and is being
sold externally
- Assets is transferred to another company.
15.4.1 - Disposals and write-offs are inaccurately recorded:

Assets remain on fixed asset register subsequent to disposal and continue to
be depreciated.
Perform Asset sale to Customer: This process covers the receipt of the
completed and authorized Fixed Asset Disposal Form and raising of an invoice
against the customer nominated in the form. This is carried out as an
integrated transaction where a single transaction raises an invoice and retires
the asset with revenue and records the proceeds on sale. During the
transaction, from the information included on the Disposal Form it would be
decided whether to Carry out a partial retirement or a complete retirement of
the asset. All information and documents related to the disposal will be
attached to the Fixed Asset master record. Where the sale is an inter-company
sale the receiving company will have to follow the normal asset acquisition
process through project systems.
Perform Asset sale without Customer: This process is where an item of

property plant and equipment will be disposed without an existing customer.
Perform Fixed Assets Disposal without revenue: Based on the completed

and authorized Fixed Asset Disposal form, the transaction in SAP to remove
the nominated Asset from the Asset Register is performed. Information
included on the Disposal form will be used to determine whether to carry out a
part retirement or a complete retirement of the asset. This will be required
where and asset makes up more than one component and only some of the
components are being retired. It is also possible to perform transaction for
subsequent revenue and costs where the disposal transaction we completed
prior to these costs or revenues arise.
Asset Master Record Form: Business scenarios of asset acquisition, transfer,

retirement and disposal of Assets requires the master data object Asset master
record in SAP ECC 6.0. To support the create/Change/Delete of Asset master,
the Asset Master form is filled in SAP Portal.
Singular requests are supported in the Asset master form in the following
scenarios:
1. Create Asset
2. Change Asset
3. Delete Asset
4. Transfer Asset
Bulk requests are supported in the Asset master form in the following
scenarios:
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02 September 2013
1. Create Asset
2. Change Asset
3. Transfer Asset
The form is routed for Business approval, Governance approval and final
Execution via predefined workflow paths. The concern parties are notified via
SAP notification in SAP Inbox and/or Outlook mailbox for their actions or status
notification
15.5 - Depreciation and Period end closing

The process is triggered by period-end close and forms part of the period end
activities. The process includes the calculation and posting of depreciation cost
in the general ledger. The outcome is the posting of the depreciation cost to the
income statement.
15.6 - Assets Year-end Closing

The Year End Process for Fixed Assets involves opening a new Fiscal Year
which is able to accept posting of asset transactions and closing the old Fiscal
Year so that it can no longer have asset transactions posted to it. The opening
and closing of Fiscal Years are independent of each other and have been
represented by two sub-processes. The Fiscal Year Change is the opening of a
new fiscal year for a Company Code. The Year End process involves the
finalization of all asset accounting transactions for a Company Code for the
fiscal year which is drawing to a close and the completion of the fiscal year
close.
15.7 - Low Value Assets

Low Value Assets The assumption is that Low Value Assets are classified as
such not only based on the Tax Laws per country but also what is classified as
capital vs. non capital asset items.
15.8 - Book and Tax Depreciation

Vardhan Industries require the ability to record different acquisition values in
the Book and Tax Depreciation Areas. E.g. some costs involved in purchasing
an asset are deductible immediately for Tax and not for Book. SAP does not
allow the specification of different amounts to be settled to each depreciation
area. Manual transactions which do not affect the General Ledger will need to
be processed to the Tax Depreciation Area to correct the values. This is done
by following the value adjustment transactions postings process.
15.9 - Low Value Assets

Low value assets are those assets whose purchase price is below a specified
amount and which are not capitalized into the Asset Register for Book
Depreciation purposes. Values are collected in a P&L account during the
fiscal year and capitalized to a Low Value Asset once a year. Low Value
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02 September 2013
Assets generally do not have Book depreciation. As per direction

fromCorporate Accounting in relation to low value asset amount specified is
10000 INR
15.10 - Investment Measure

Vardhan Industries would like to use internal orders as Capital Intensive
Measure. Since Vardhan is new to SAP and not aware of Investment measure
would request the partner companies to implement the SAP best practice for
POC project with a flexibility of modifying the same as per business need at a
later stage
15.11 - Depreciation and Rates

Depreciation method:
The fixed assets needs to be depreciated at SLM method
Please use the current rates from Companies Act and Income Tax Act
Depreciation keys
For each rate of depreciation, a Depreciation key is maintained
TCode: AFAMA
16-INFORMATION SYSTEM
External
Profit and loss account for early,
half yearly and quarterly basis
Balance sheet In SAP these are standard reports
available. For Balance sheet and
profit & loss statement
T Code:
S_ALR_87012284
Cash flow statement cash flow statemt
T Code:
S_ALR_87012271
Funds flow statement
remittance advice remittance advice
T
Code:J1INCHLN
Withholding tax certificates Withholding tax certificates
T Code:
J1INCERT
Remainder notice to customer for Dunning notices
overdue items
Remainder notice to vendor for Dunning notices
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02 September 2013
settlement of advances
Internal
Weekly,fornight,monthly, quarterly T
Code:S_ALR_87012186
half yearly and yearly sales
reports
OVERDUe items from customer T
statemen Code:S_ALR_87012168
outstanding payments to AP T Code:
statement S_ALR_87012084
Cost Accounting
Reconciliation statement of In SAP these are standard reports
Financial
Accounting with Cost Accounting are availble for all the reports
mentioned
in AS IS
17-PERIOD END CLOSING BUSINESS PROCESS MODEL:
17.1- Closing Activity

The closing activities within Asset Accounting will cover the following activities:
 Physical verification of Assets
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02 September 2013
 Fiscal year change

Financial Closing
 Accruals and reversal of accruals
 Calculation of Work in Process(WIP)
Results analysis is used to evaluate the progress of projects on the basis of
planned and actual revenues and costs
 Actual settlement project:
The project must be settled to the corresponding receiver noticed in the
settlement rule of the project master data. Possible receivers are an asset in
the asset management or a profitability segment in the Profitability analysis.
17.2--Month end Closing Activities:
AREA TASK NOTES
HR Payroll Posting
MM Maintain GR/IR Clearing Continuous

Account
GL Accruals/Deferrals Every Period
FI Recurring Entries Every Period
SD Goods Issues/Invoices Verify that all postings for the period

have been generated
FI Open New Period
AA - Depreciation Calculation
AR/AP Close Old Period After primary postings complete
FI Preliminary Close Old Period After primary postings complete
FI Foreign Currency Revaluation
CO WiP Calculation
CO Revenue Recognition
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02 September 2013
17.3-Year End Activities include

1. Open New Fiscal Year or Fiscal Year Change for Assets -->AJRW
2. Close the Asset Fiscal Year -->AJAB
3. Balance Carry Forward for General Ledger -->F.16/FAGLGCTR
4. Balance Carry Forward for Vendors/Customers -->F.07
5. Copy Number Ranges for Next Fiscal Year -->OBH2
18 - Controlling MODULE:
The purpose of the Controlling (CO) module in SAP is to provide organizations
with a method of slicing and dicing data to view costs from an internal
management perspective and provide a view of profitability beyond that of basic
financial reporting. This allows the organization to create information in a
manner that is tailored to their specific business measurements needs.
Controlling Area represents a closed system used for cost accounting
purposes.
TCode: OKKP
Number intervals for controlling areas are maintained at

TCode: KANK
Controlling allows an organization to:

1-Plan and track overhead costs within the company's specific organizational
structure.
2-Track costs related to specific projects or events and either capitalize those
costs or charge them to appropriate departments upon completion.
3-Report profitability by product line, division, or other internal measurement.
4-Report sales and gross profitability by external measures such as market
segments or customer groups.
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02 September 2013
18.1-Cost Element Accounting: This process takes care of integrating FI

GL accounts with CO. through cost element accounting, an enterprise can get
complete information on what costs are incurred within the enterprise.
Maintenance of Cost Element accounting of the enterprise is for the preparation
of internal reporting
18.2-Cost Centre accounting: this functionality enables an enterprise to

get information on where costs are incurred. It provides supporting data for
management decision making to check/control the costs of individual functional
area (cost centres). This requires that all costs be assigned according to their
source, however, source-related assignment is especially difficult for overhead
costs. Cost centre accounting lets you analyse the overhead cost according to
where they were incurred within organization.
18.3-Internal orders: Internal orders are used to plan, collect and settle the
costs of internal jobs and tasks. The SAP system enables you to monitor your
internal orders throughout their entire life cycle; from intitial creation, through
the planning and posting of all the actual costs, to the final settlement. Internal
order is also a powerful tool to collect expenses posted in FI to suitably
segregate through creation and deployment of statistical orders.
18.4-Profit centre accounting: profit centres are other organizational units

in CO similar to cost centres. The objectives of creation of profit centres are
twofold:
To enable transfer price mechanism within organisation between two profit
centres.
To evaluate performance of profit centres based on ROI, where the numerator
is costing based profits earned by profit centre and the denominator is
investment in the profit centre (fixed assets and current assets are values are
derived from these assets assigned to cost centres, which are in turn assigned
to profit centres). Cost centre accounting lets you analyse the overhead costs
according to where they were incurred within the organization.
Cost element accounting-Cost elements-master data:
VI00 expects cost accounting records should be updated automatically when

the corresponding financial documents are posted in Financial Accounting to
know what costs incurred within organization.
Primary cost elements in Controlling are created with reference to

corresponding expense or revenue accounts in Financial Accounting. It is
prerequisite to create relevant general ledger accounts in GI, in order to create
corresponding primary cost elements in CO. Examples for primary cost element
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02 September 2013
are material costs, salary cost. To be able to post to a primary cost element,
you require cost carrying object such cost centre or internal order to identify the
origin of the cost.
TCode: KA01;OKB2
Secondary cost elements are used exclusively in CO to record internal value

flows like assessments, activity allocations and settlements. Secondary cost
elements can be created only in controlling and they do not have any
corresponding general ledger accounts in FI.
TCode:KA06
Person
Business Areas Cost Areas Cost Center Category Profit Center
Responsible
FURNITURE
Direct Costs/Primary Costs
Fur_Raw Materials FUR-MAT-01 Production Furniture
Fur_Direct Labour FUR-LBR-02 Production Furniture
Fur_Direct Overhead FUR-DOH-03 Production Furniture
Non-Direct Costs/Secondary Costs
Fur_Overheads FUR-IOH-04 Admin Furniture
Fur_Maintenance FUR-MTN-05 Admin Furniture
Fur_Power FUR-POW-06 Admin Furniture
Fur_Utilities FUR-ULT-07 Admin Furniture
Fur_Marketing&Adverising FUR-MKT-08 Services Furniture
Fur_R&D FUR-R&D-09 R&D Furniture
Fur_Engineering FUR-ENG-10 Services Furniture
SPORTS GOODS
Sports_Raw Material SPO-MAT-01 Production Sport
Sports_Direct Labour SPO-LBR-02 Production Sport
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02 September 2013
Sports_Diretct Overhead SPO-DOH-03 Production Sport

Sports_Overheads SPO-IOH-04 Admin Sport
Sports_Maintenance SPO-MTN-05 Admin Sport
Sports_Power SPO-POW-06 Admin Sport
Sports_Utilities SPO-UTL-07 Admin Sport
Sports_Marketing&Advertising SPO-MKT-08 Services Sport
Sports_R&D SPO-R&D-09 R&D Sport
Sports_Engineering SPO-ENG-10 Services Sport
CLOTHES
Clothes_Raw Material CLO-MAT-01 Production Clothes
Clothes_Direct Labour CLO-LBR-02 Production Clothes
Clothes_Direct Overhead CLO-DOH-03 Production Clothes
Clothes_Overheads CLO-IOH-04 Admin Clothes
Clothes_Maintenance CLO-MTN-05 Admin Clothes
Clothes_Power CLO-POW-06 Admin Clothes
Clothes_Utilities CLO-UTL-07 Admin Clothes
Clothes_Marketing&Advertising CLO-MKT-08 Services Clothes
Clothes_R&D CLO-R&D-09 R&D Clothes
Clothes_Engineering CLO-ENG-10 Services Clothes
ELECTONICS
Ele_Raw Material ELE-MAT-01 Production Electronics
Ele_Direct Labour ELE-LBR-02 Production Electronics
Ele_Direct Overhead ELE-DOH-03 Production Electronics
Ele_Overheads ELE-IOH-04 Admin Electronics
Ele_Maintenance ELE-MTN-05 Admin Electronics
Ele_Power ELE-POW-06 Admin Electronics
Ele_Utilities ELE-UTL-07 Admin Electronics
Ele_Marketing&Advertising ELE-MKT-08 Services Electronics
Ele_R&D ELE-R&D-09 R&D Electronics
Ele_Engineering ELE-ENG-10 Services Electronics
LIFESTYLE
Life_Raw Materials LIF-MAT-01 Production Lifestyle
Life_Direct Labour LIF-LBR-02 Production Lifestyle
Life_Direct Overhead LIF-DOH-03 Production Lifestyle
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02 September 2013
Life_Overheads LIF-IOH-04 Admin Lifestyle

Life_Maintenance LIF-MTN-05 Admin Lifestyle
Life_Power LIF-POW-06 Admin Lifestyle
Life_Utilities LIF-UTL-07 Admin Lifestyle
Life_Marketing&Advertising LIF-MKT-08 Services Lifestyle
Life_R&D LIF-R&D-09 R&D Lifestyle
Life_Engineering LIF-ENG-10 Services Lifestyle
SHARED
SERVICES
Ser_Legal SER-LEG-01 Services Services
Ser_Accounting SER-ACC-02 Services Services
Ser_General Admin SER-ADM-03 Services Services
Ser_Information Technology SER-I&T-04 Services Services
Ser_Corporate Services SER-COR-05 Services Services
Ser_Logistics SER-LOG-06 Services Services
Ser_Technical Sales Support SER-TSS-07 Services Services
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02 September 2013
Person
Business Blueprint VARDHAN INDUSTRIES Responsible
FURNITURE
SPORTS GOODS
CLOTHES
ELECTONICS
55
02 September 2013

LIFESTYLE
SHARED
SERVICES
When you create a cost element, you must assign a cost element category.
This assignment determines the transactions for which you can use the cost
element.
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02 September 2013
Standard Cost Centre categories are used for

1:Production
4:Administration
7:service
5:management
8:purchasing
7:personnel
3:sales
Cost centre categories
Per
Re
FURNITURE
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02 September 2013

SPORTS GOODS
CLOTHES
ELECTONICS
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02 September 2013

LIFESTYLE
SHARED
SERVICES
TCode:KS01
Cost Centre Accounting-Master Data-Statistical key figures
VI desires to distribute the expense of service and administrative cost centres

expenses on a logical basis to other cost centres.
General Explanations
Statistical key figures serves as tracing factors for periodic transactions such as
assessment to allocate the costs from non-production cost centres to
production cost centres. Statistical key figures are defined such as power
consumption units, telephone units etc., for the purpose of allocation of power
costs, communication costs respectively to the consumption cost centres.
Statistical key figures can be defined as fixed value or as total value. The fixed
value is carried over from the period in which it is entered to all subsequent
periods of the same fiscal year. You need to enter a new posting only if the
value changes. The total value posts the value only in the period, what it was
entered. This means that if the statistical key figure is a total value, it has to be
entered for each period.
TCode:KK01
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02 September 2013
Cost centre accounting-Actual postings-Reposting
Errors are unavoidable and may result particularly during initial days of SAP live
operations. Thus, there will be occasions where postings are assigned to the
wrong controlling object, and VI should be able to rectify posting errors related
to erroneous assignment to controlling objects.
VI can repost primary costs from one controlling object to another using
transaction based transfers, the original cost element is always retained. This
function is designed to correct posting errors. Posting errors should preferably
be corrected in the application component where they originate, so that external
and internal accounting (FI & CO) is always reconciled.
18.5Cost Centre accounting-Period-End closing –assessment

VI anticipate automating the process of allocating primary and secondary costs
of some non-production cost centres to the production cost centres based on
predefined apportionment basis with statistical key figure, periodically (say
monthly)
TCode:S_ALR_87005742
Assessment is the process used to transfer primary and secondary costs from
sender cost centre to receiving controlling objects. Costs centres are used as
senders, whereas receivers can be cost centres, internal orders, or cost
objects.
During assessment, the original cost elements are summarized into
assessment cost elements and assessed to the receiving object.
Should consider the following sender and receiver relations before allocating
the costs, from which objects the costs are allocated, which costs are allocated
to , which costs should be allocated, how the costs are distributed among the
receivers.
In assessment, line items are posted for the sender as well as receiver,
enabling the allocation to be recorded exactly. The system does not display the
original cost elements in the receivers.
TCode:KSU5
18.6-Internal Orders are categorized as

Internal orders are normally used to plan, collect and settle the cost of internal
jobs and tasks. We can create an internal order to monitor the cost of time-
restricted jobs are the cost for the production of activities.
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02 September 2013
Internal orders can be used to monitor the cost of short-term measures, the
cost and revenues related to a specific services and monitor on-going costs.
Types of Internal Order:
1.Accrual orders: this is used to monitor such a period-related accrual
calculations for cost accounting.
2.Capital investment orders: these are used to monitor investment costs that
can be capitalized. These investment cost can then be settled in the
fixed assets.
3.Orders with revenues: you can use orders with revenues to perform tasks
such as:(A) Monitoring activities for partners outside the business
organisation. (B) monitoring organizational activities that do not affect the
core business of the organization
4.Overhead cost orders: these are used to monitor overhead costs
independently of the cost centre structure and process unit.
Define order type Tcode: KOT2

Maintain number ranges for orders TCode:KONK
Creation of internal order TCode:KO01
To see internal orders TCode:KOB1
18-INTEGRATIONS
18.1Integration with SD
The integration with SD happens through TCode-VKOA, a combination

of particulars of customer Account Assignment group, Material Account
Assignment group and Account key in an access sequence. The related
GL accounts are assigned to Condition types (The condition type
denotes the discount offered on the net/gross price on sales), The
Account Assignment group (The customer account assignment group
denotes the type of customer, the material account assignment denotes
the type of material), and Account keys-ERL, ERS, ERF, MWS(the
account keys denotes the respective G/L accounts for the transactions
involved in sales map up the FI-SD integration.
TCode:VKOA
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02 September 2013
18.2-Integration with MM
The data integration happens through Account Determination linkage of

Account key with General Ledger Accounts by the following:
 Movement Types: The posting and updating of the stock field in

Material master.
 Valuation Class: the assignment of G/L accounts uses to
determine the respective G/L accounts, which is to be updated as
result of goods movements.
 Transaction/Events key: it differentiates various transactions
such as goods movement that occurred in inventory.
 Material Type: Each material should be assigned material type in
material master record.
The integration between FI-MM through the TCode: OBYC
18.3-Integration with HR
Integration with HR involves assignment of Company Code, cost centre

and through the creation of related GL accounts like salaries and allowances,
medical aid, and bonus a/c.
19. Standard reports in Finance and Controlling
General Ledger
S_PL0_86000028 Fin. Statement: Actual/Actual Comparison
S_ALR_87012284 Financial Statements
S_PL0_86000029 Fin. Statement: Plan/Actual Comparison
S_ALR_87012271 Cash Flow (Direct Method)
S_ALR_87012272 Cash Flow (Indirect Method) Variant 1
S_ALR_87012273 Cash Flow (Indirect Method) Variant 2
FSIB Background Processing
S_ALR_87012277 G/L Account Balances
S_PL0_86000030 G/L Account Balances (New)
S_PL0_86000031 Transaction Figures: Account Balance
S_ALR_87012301 Totals and Balances
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02 September 2013
S_PL0_86000032 Structured Account Balances

S_ALR_87012282 G/L Line Items, List for Printing
S_ALR_87012332 G/L Account Statements
S_AC0_52000887 Profit Center Receivables
S_AC0_52000888 Profit Center Payables
S_ALR_87012287 Document Journal
S_ALR_87012289 Compact Document Journal
S_ALR_87012291 Line Item Journal
S_ALR_87012293 Display of Changed Documents
S_ALR_87012341 Invoice Numbers Allocated Twice
S_ALR_87012342 Gaps in Document Number Assignment
S_ALR_87012344 Posting Totals
S_ALR_87012346 Recurring Entry Documents
S_ALR_87012347 Line Items Extract
S_ALR_87012326 Chart of Accounts
S_ALR_87012328 G/L Account List
S_ALR_87012330 Account Assignment Manual
S_ALR_87012308 Display Changes to G/L Accounts
S_ALR_87012333 G/L Accounts List
Accounts Payable
S_ALR_87012077 Vendor Information System
S_ALR_87012082 Vendor Balances in Local Currency
S_ALR_87012093 Vendor Business
S_ALR_87012079 Transaction Figures: Account Balance
S_ALR_87012080 Transaction Figures: Special Sales
S_ALR_87012081 Transaction Figures: Sales
S_ALR_87012078 Due Date Analysis for Open Items
S_ALR_87012103 List of Vendor Line Items
S_ALR_87012083 List of Vendor Open Items for Printing
S_ALR_87012084 Open Items – Vendor Due Date Forecast
S_ALR_87012085 Vendor Payment History with OI Sorted List
S_ALR_87012104 List of Cleared Vendor Items for Printing
S_ALR_87012105 List of Down Payments Open On Key Date –
Vendors
S_ALR_87012086 Vendor List
S_ALR_87012087 Address List
S_ALR_87012089 Display Changes to Vendors
S_ALR_87012090 Display/Confirm Critical Vendor Changes
S_P99_41000099 Payment List
S_P99_41000101 Check Register
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02 September 2013
S_ALR_87012119 Cashed Checks

S_P99_41000102 Number Ranges for Checks
Accounts Receivable
S_ALR_87012167 Accounts Receivable Information System
S_ALR_87012172 Customer Balances in Local Currency
S_ALR_87012186 Customer Sales
S_ALR_87012169 Transaction Figures: Account Balance
S_ALR_87012170 Transaction Figures: Special Sales
S_ALR_87012171 Transaction Figures: Sales
S_ALR_87012168 Due Date Analysis for Open Items
S_ALR_87012197 List of Customer Line Items
S_ALR_87012173 List of Customer Open Items for Printing
S_ALR_87012174 List of Customer Open Items
S_ALR_87012175 Open Items – Customer Due Date Forecast
S_ALR_87012176 Customer Evaluation with OI Sorted List
S_ALR_87012177 Customer Payment History
S_ALR_87012178 Customer Open Item Analysis by Balance of
Overdue Items
S_ALR_87012198 List of Cleared Customer Items for Printing
S_ALR_87012199 List Of Down Payments Open On Key Date –
Customers
S_ALR_87012179 Customer List
S_ALR_87012180 Address List
S_ALR_87012182 Display Changes to Customers
S_ALR_87012183 Display/Confirm Critical Customer Changes
S_ALR_87012195 Customer Master Data Comparison
Fixed Assets
AW01N Asset Explorer
S_ALR_87011963 … by Asset Number
S_ALR_87011964 … by Asset Class
S_ALR_87011965 … by Business Area
S_ALR_87011966 … by Cost Center
S_ALR_87011967 … by Plant
S_ALR_87011968 … by Location
S_ALR_87011969 … by Asset Super Number
S_ALR_87011970 … by Worklist
S_ALR_87010125 Sample for address data for an asset
S_ALR_87010127 Real Estate and Similar Rights
S_ALR_87010129 Transportation Equipment
S_ALR_87011978 Asset Balances for Group Assets
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02 September 2013
S_ALR_87011979 … by Cost Center

S_ALR_87011980 … by Location
S_ALR_87011981 … by Asset Class
S_ALR_87011982 … by Plant
S_ALR_87010137 Bar Codes
S_ALR_87010139 Leasing
S_ALR_87010141 Liabilities from Leasing Agreements
S_ALR_87011990 Asset History Sheet
S_ALR_87011992 Liabilities from Leasing Agreements
S_ALR_87011994 Asset Balances
S_ALR_87012004 Total Depreciation
S_ALR_87012006 Ordinary Depreciation
S_ALR_87012007 Special Depreciation
S_ALR_87012008 Unplanned Depreciation
S_ALR_87012009 Transfer of Reserves
S_ALR_87012011 Write-Ups
S_ALR_87012013 Depreciation Comparison
S_ALR_87012015 Manual Depreciation
S_ALR_87012018 Depreciation and Interest
S_ALR_87010173 Revaluation
S_P99_41000192 Posted depreciation by asset and posting
period
S_ALR_87010175 Posted depreciation, related to cost centers
S_ALR_87012936 Depreciation on Capitalized Assets
(Depreciation Simulation)
S_ALR_87012026 Depreciation Current Year
S_ALR_87012028 Net Worth Valuation
S_ALR_87012030 Insurance Values
S_ALR_87012033 Gain for transfer of reserves
S_ALR_87012035 Depreciation Current Year
S_ALR_87012037 Changes to Asset Master Records
S_ALR_87012039 Asset Transactions
S_ALR_87012041 Asset Portfolio (Current Book Values)
S_ALR_87012043 G/L Account Balances
S_ALR_87012048 Asset transactions
S_ALR_87012050 Asset Acquisitions
S_ALR_87012052 Asset Retirements
S_ALR_87012054 Intracompany Asset Transfers
S_ALR_87012056 Directory of Unposted Assets
S_ALR_87012058 List of Origins of Asset Debits
S_ALR_87012060 List of Origins by Cost Elements
S_ALR_87012075 Asset History
Bank
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02 September 2013
S_ALR_87012309 Cashbook
S_ALR_87012348 Cashed Checks per Bank Account
S_ALR_87012349 Outstanding Checks Analysis per G/L Account
and V
S_ALR_87012351 Payment Advice Overview
S_ALR_87012350 G/L Account Payment Advice Notes
S_ALR_87012353 Payment Advice Overview (Header and Item
Data)
S_ALR_87012352 G/L Account Payment Advice Notes
S_ALR_87012355 Payment Advice Notes: Reorganization
S_ALR_87012354 G/L Account Reorganization
S_ALR_87012322 Bill of Exchange List
S_ALR_87012321 SAP Minimal Variant
S_ALR_87012324 Extended Bill of Exchange Information
S_ALR_87012323 SAP Minimal Variant
Controlling
S_ALR_87013611 Cost Centers: Actual/Plan/Variance
S_ALR_87013612 Range: Cost Centers
S_ALR_87013613 Range: Cost Elements
S_ALR_87013614 Cost Centers: Current Period/Cumulative
S_ALR_87013616 Cost Centers: Breakdown by Business
transaction
S_ALR_87013617 Range: Activity Types
S_ALR_87013618 Range: Statistical Key Figures
S_ALR_87013619 Range: Assigned Orders/WBS Elements
S_ALR_87013620 Cost Centers: Actual/Plan/Commitments
S_ALR_87013621 Range: Actual/Plan/Commitments
S_ALR_87013623 Cost Centers: Quarterly Comparison
S_ALR_87013624 Cost Centers: Fiscal Year Comparison
S_ALR_87013625 Cost Centers: Actual/Target/Variance
S_ALR_87013626 Range: Cost Elements
KSBL Cost Centers: Planning Overview
S_ALR_87013630 Activity Types: Plan Receivers
KSBT Cost Centers: Activity Prices
================= END OF REPORT==================
66
02 September 2013

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VARDHAN

As-Is Process Mapped to

Finance and Controlling: Mr.Rana W Mehmood

Project : Co-ordinator Vertical Lead

Finance and Controlling

Any SAP Implementation starts with the Creation of Company of which is

Petty Cash Vouchers are used at Plants

Excise duty payable/paid Tax procedure is maintained and

Acquisition of assets G/L master record is created for each

FINANCE AND CONTROLLING ................................................................................................................... 2

1.1 - ABOUT VARDHAN INDUSTRIES: ...................................................................................................... 13

1.2 - SCOPE OF CURRENT ENGAGEMENT ................................................................................................ 13

1.3 - SCOPE OF THIS DOCUMENT ............................................................................................................ 13

1.4 - OBJECTIVE OF THIS REPORT ............................................................................................................ 14

1.5 - BUSINESS PROCESS SCOPE .............................................................................................................. 14

2 – ENTERPRISE STRUCTURE ................................................................................................................... 15

2.3- COMPANY CODE .............................................................................................................................. 15

2.4-BUSINESS AREA ................................................................................................................................ 16

2.5 - CONTROLLING AREA (CO) ............................................................................................................... 16

3 - FINANCIAL ACCOUNTING GLOBAL SETTINGS: .................................................................................... 17

3.1 - CURRENCY SETTINGS ...................................................................................................................... 17

3.2 - FISCAL YEAR .................................................................................................................................... 18

3.3 - POSTING PERIOD VARIANT ............................................................................................................. 18

3.4 OPEN POSTING PERIODS ................................................................................................................... 18

3.5 FIELD STATUS VARIANT .................................................................................................................... 18

3.6 TOLERANCE GROUPS ........................................................................................................................ 19

4.1DOCUMENT TYPES ............................................................................................................................. 19

4.2-DOCUMENT NUMBER RANGE INTERVAL .......................................................................................... 21

4.3- POSTING KEYS ................................................................................................................................. 21

5 - GENERAL LEDGER ACCOUNTS ............................................................................................................ 21

5.1 - CHART OF ACCOUNTS ..................................................................................................................... 22

5.2ACCOUNT GROUP .............................................................................................................................. 23

5.3 - RETAINED EARNINGS ...................................................................................................................... 23

5.4 - MASTER DATA MAINTENANCE ....................................................................................................... 24

5.5 - GENERAL LEDGER MASTER DATA SEGMENTS ................................................................................. 25

6 - GENERAL LEDGER POSTINGS.............................................................................................................. 25

6.1 - PARKED DOCUMENTS ..................................................................................................................... 26

6.2 - RECURRING ENTRIES ....................................................................................................................... 26

6.4 - DOCUMENT REVERSAL.................................................................................................................... 26

7 - GRIR ACCOUNT RECONCILIATION ...................................................................................................... 27

8-BANK ACCOUNTING ............................................................................................................................ 27

8.1 HOUSE BANK .................................................................................................................................... 27

8.2-CASH JOURNAL ................................................................................................................................. 29

9 –ACCOUNTS PAYABLE .......................................................................................................................... 30

9.1-VENDOR MASTER RECORDS ............................................................................................................. 31

9.3-INVOICE CLEARING ........................................................................................................................... 31

9.4 - CHEQUES & ELECTRONIC BANK ....................................................................................................... 32

9.5 - PAYMENT RUN ............................................................................................................................... 32

9.6 - OTHER FUNCTIONALITIES ............................................................................................................... 32

9.7 - REJECT PAYMENT PROCESS ............................................................................................................. 33

9.8 - FUNCTIONAL DESCRIPTION ............................................................................................................. 34

9.9 - AUTOMATIC PAYMENT PROCESS .................................................................................................... 35

10 - PAYMENT TERMS ............................................................................................................................. 35

11 - INTEREST CALCULATION .................................................................................................................. 36

12.2- DUNNING NOTICES ........................................................................................................................ 37

14 - ACCOUNTS RECEIVABLE ................................................................................................................... 38

14.1CREDIT CONTROL AREA ................................................................................................................... 38

14.2-SALES AREAS .................................................................................................................................. 38

14.3 - SUNDRY INVOICING ...................................................................................................................... 39

14.3.1 - ASSUMPTIONS ........................................................................................................................... 40

14-A-CUSTOMER MASTER RECORDS ....................................................................................................... 40

14.B - CUSTOMER RECEIPT PROCESSING................................................................................................. 40

14.B.1 - ASSUMPTIONS ........................................................................................................................... 41