EUPEC WELSPUN PIPECOATINGS INDIA LIMITED

BUSINESS BLUE PRINT

Topic for the Meeting: Business Blue Print – EWPCIL Date: 18.10.2002 Version: 1.0

Module: FI Process No: FI-07.03 Person Responsible: Accounts Officer

Schedule Time of start: Actual Time of start: Venue: ERP ROOM, Vapi

Planned Duration of the Meeting: Actual Duration of the Meeting: Attendance (%):

WIL Consultant: Mr. Naresh Pandya

Module Members: Mr. Chetan Makwana Yogesh P. Berawala, Atul Trivedi, Pradeep Tibrewal

Invitees:

Reviewed by Satyam Consultant: Mr. Nikhil Bhogaonkar, Lakshminarayana Das

Additional Copies To:

FIXED DEPOSIT

1.BUSINESS PROCESS DESCRIPTION

Margin kept against LC & BG are kept in fixed deposit. Liquidation & renewal of Fixed deposit will be as
per Data & Expiry dates of Fixed Deposits. Interest & TDS data are also generated & kept. Tracking of
TDS Certificate will be done by accounting for TDS Certificate in separate account “ TDS Certificate
Receivable A/c”

2.PROCESS WORKFLOW:

Act. No. Activity SAP REMARKS

(YES/NO)

FI–07.03.01 Keeping of Fixed deposits

FI–07.03.02 Tracking of Fixed deposits
FI–07.03.03 Receipt of Interest
Renewal of Fixed Deposits on receiving details of
FI–07.03.04 renewal of BG from MKTG.
Liquidation of Fixed deposit and Receipt of
FI–07.03.05 Interest and accounting thereof.
FI–07.03.06 Tracking of TDS Certificate & Obtaining the same
3.PROCESS FLOW DIAGRAM:

MARGIN  FIXED DEPOSIT ACCOUNT

POSTING

TRCKING OF FIXED
DEPOSIT & INTEREST

ACCOUNT
RECEIPT OF INTERERST
POSTING

RENEWAL OF FIXED ACCOUNT

DEPOSIT POSTING

LIQUIDATION OF FIXED ACCOUNT

DEPOSIT POSTING

ACCOUNTING OF TDS ACCOUNT

POSTING

TRACKING OF TDS CERTIFICATE

ACCOUNTING
Activity Name: Keeping of Fixed deposits Activity No. FI-07.03.01

1. INITIATING ACTIVITY:

Obtaining Bank Guarantee / Letter of Credit

2. ACTIVITY WORKFLOW:

Sub Act. No. SUB ACTIVITY SAP/ INTERFACES/ SYSTEM

DESCRIPTION (YES/NO) INTEGRATION CONFIGURATION
Trans.Code CONSIDERATIONS

FI-07.03.01.01 Converting Margin kept on

L/c & BG into Fixed
Deposits
FI-07.03.01.02 Determining Period for
Fixed deposit
FI-07.03.01.03 Verifying Period of FD,
Rate of Interest, System of
Interest Payment
FI-07.03.01.04 Entry of Fixed Deposit into
Fixed Deposit accounting
System
FI-07.03.01.05 Discharging Fixed Deposits

3 ACTIVITY DESCRIPTION IN DETAIL:

At the time of establishing letter of credit or issuance of Bank Guarantee Margin is kept by Bank at %
based on Sanction Terms (Normally 10%). Margin is kept under fixed deposit for period depending on
Expiry of L/c or Bank Guarantee. After keeping of fixed deposit, original Fixed deposit receipt is
discharged in favor of Bank (The Margin/Fixed Deposit are under Bank’s Lien).

The details of Rates of Fixed deposit & Period will be entered in the system at this Point and system will
automatically calculate the Interest. TDS deductible on Fixed deposit will be posted manually.

Following entries are generated at the time of keeping o fixed deposits

Fixed Deposit – LC – Bank of Baroda

To Bank A/c
Activity Name: Tracking of Fixed deposits Activity No. FI-07.03.02

1 INITIATING ACTIVITY:

2 ACTIVITY WORKFLOW:

Sub Act. No. SUB ACTIVITY SAP/ INTERFACES/ SYSTEM

DESCRIPTION (YES/NO) INTEGRATION CONFIGURATION
Trans.Code CONSIDERATIONS
(By Satyam)

FI-07.03.02.01 Generating Weekly / Monthly

Due date list
FI-07.03.02.02 Comparing the Due dates of
L/c, BG with Fixed deposit due
dates
FI-07.03.02.03 Determining for liquidation of
Fixed deposits
FI-07.03.02.04 Verifying receipt of Interest
Periodically
FI-07.03.02.05 Verifying TDS deductible and
actually deducted
FI-07.03.02.06 Verifying Receipt of TDS
Certificate

3. ACTIVITY DESCRIPTION IN DETAIL:

After keeping of fixed deposit and entering the same in the system. Various reports will be generated for
tracking of Fixed deposit and Receipt of Interest. Decision to Liquidate /Renew Fixed deposit will be based
on these report along with BG/LC due date reports.
Activity Name: Receipt of Interest Activity No. FI-07.03.03

3 INITIATING ACTIVITY:

Due date for Receipt of Interest

4 ACTIVITY WORKFLOW:

Sub Act. No. SUB ACTIVITY SAP/ INTERFACES/ SYSTEM

DESCRIPTION (YES/NO) INTEGRATION CONFIGURATION
Trans.Code CONSIDERATIONS
(By Satyam)
FI-07.03.03.01 Generating Report for Due
dates for receipt of Interest
FI-07.03.03.02 Ensuring that the Interest is/will
be credited by Bank
FI-07.03.03.03 Verifying Interest Working and
TDS Working
FI-07.03.03.04 For Difference in Interest
working or non receipt of
Interest follow up with Banks
FI-07.03.03.05 Making Entry in the System for
Receipt of Interest against
Fixed Deposit

3. ACTIVITY DESCRIPTION IN DETAIL:

The Fixed deposit can be with Payment of Interest quarterly /Monthly /Days or can be on maturity. In case
of Fixed Deposit with Payment of Interest quarterly /Monthly /Days, tracking is done for receipt of interest.
Following entries are made at the time of receipt of interest.

Bank A/c Dr.

TDS Certificate Receivable A/c Dr.

To Interest on Fixed Deposit – LC- Bank of Baroda.

 Activity Name: Renewal of Fixed Deposits Activity No. FI-07.03.04

1 INITIATING ACTIVITY:

2 ACTIVITY WORKFLOW:

Sub Act. No. SUB ACTIVITY SAP/) INTERFACES/ SYSTEM

DESCRIPTION Trans.Cod INTEGRATION CONFIGURATION
CONSIDERATIONS

FI-07.03.04.01 Checking of Fixed deposit

due dates
FI-07.03.04.02 Verifying Due dates
/Extended due date of
BG /LC
FI-07.03.04.03 Based on Due dates
/Extended due date
preparing Renewal Letters
for FD
FI-07.03.04.04 Receipt of Interest up to the
date of Due date of Fixed
deposit making entry in the
system for receipt of interest
FI-07.03.04.05 Receipt of Renewed Fixed
Deposits and verification
thereof & Making entry in
the system of renewal of
Fixed deposit.

3. ACTIVITY DESCRIPTION IN DETAIL:

Fixed deposits are kept against L/C & BGs and the period of fixed deposit are guided by due date of L/c
BG & Rate of Interest. In case L/c or BGs are to be extended, on due date Fixed deposits are renewed for
further period. Fixed deposits can be renewed With Interest (Net of Applicable TDS) or other wise Only
Fixed deposit is renewed and Interest is credited to Bank A/c

Following Entries are passed on renewal (With Interest)

Fixed Deposit – LC – Bank of Baroda A/c

TDS Certificate Receivable- Bank of Baroda A/c

To Fixed Deposit – LC – Bank of Baroda A/c

To Interest on Fixed Deposit – LC – Bank of Baroda
In Case Interest is Credited to Bank A/c & FD is renewed

1) Fixed Deposit – LC – Bank of Baroda A/c

To Fixed Deposit – LC – Bank of Baroda A/c

2) Bank of Baroda A/c

TDS Certificate Receivable- Bank of Baroda A/c

To Interest on Fixed Deposit – LC – Bank of Baroda

Activity Name: Liquidation of Fixed deposit and Activity No. FI-07.03.05

Receipt of Interest and accounting thereof

1 INITIATING ACTIVITY:

Due date of Fixed Deposit / Surrender of BG / Cancellation, expiry of LC

2 ACTIVITY WORKFLOW:

Sub Act. No. SUB ACTIVITY SAP/ INTERFACES/ SYSTEM

DESCRIPTION (YES/NO) INTEGRATION CONFIGURATION
Trans.Code CONSIDERATIONS

FI-07.03.05.01 Checking of Fixed

deposit due dates
FI-07.03.05.02 Verifying Cancellation
of bank
Guarantees/L/Cs
FI-07.03.05.03 Preparing Letters for
liquidation of FD
FI-07.03.05.04 Receipt of Principal &
Interest and Making
Entry in the system
after verification
FI-07.03.05.05 Generating Report for
Principal & Interest
Receivable against
Principal/ Interest
actually received
3 ACTIVITY DESCRIPTION IN DETAIL:

Fixed deposit if not required can be liquidated before due date or can be liquidated on due date. The
decision to liquidate fixed deposit will depend on Bank Guarantee / LC.

Following entries are passed on liquidation of fixed deposits

Bank of Baroda A/c

TDS Certificate Receivable A/c

Fixed Deposit – LC – Bank of Baroda A/c

Activity Name: Tracking of TDS Certificate Activity No. FI-07.03.06

1. INITIATING ACTIVITY:

Deduction of TDS

2. ACTIVITY WORKFLOW:

Sub Act. No. SUB ACTIVITY SAP/ INTERFACES/ SYSTEM

DESCRIPTION (YES/NO) INTEGRATION CONFIGURATION
Trans. CONSIDERATIONS
Code (By Satyam)

FI-07.03.06.01 Checking of Deduction of TDS N

FI-07.03.06.02 Receipt of TDS Certificate N
FI-07.03.06.03 Verifying TDS Deduction with Y*
TDS Certificate Receipt and
Making Entry in the System for
receipt of TDS Certificate
FI-07.03.06.04 Generating Report of TDS Y*
Certificate not received
FI-07.03.06.05 Follow up with Banks based on N
TDS Certificate Report
3. ACTIVITY DESCRIPTION IN DETAIL:

TDS Deducted at the time of receipt of Interest is tracked for receipt of Certificate.

Following entries will be made on receipt of TDS Certificate

TDS On Fixed deposit Interest A/c

To TDS Certificate Receivable A/c

*TDS tracking will be done by viewing the TDS Receivable GL Account. This will be a manual activity.

4. GAPS ANALYSIS/ABAP REQUIREMENTS:

SUB GAPS DESCRIPTION ABAP REQUIREMENTS

ACTIVITY
NO.

FI07.03 FIXED DEPOSIT ACCOUNTING IN

SAP BEING EXPLORED

5. OUTPUTS OF THE ACTIVITY:

(ANNEXURES)

Signatures

WIL consultant EWPCL FTMs Satyam Consultant

1) Mr. Naresh Pandya 1) Mr. Chetan Makwana 1) Mr. Nikhil Bhogaonkar
2) Mr. Yogesh Berawala 2) Mr. Lakshminarayana Das
3) Mr. Atul Trivedi
4) Mr. Pradeep Tibrewala

Project Leader: Mr.Anand Agrawal

H.O.D.: Mr.B.L.Acharya