Business Blue Print Document

Business Blue Print Document (To-Be)

Process ID: BBP_FI_004_Maintain Exchange Rate

Process Name: EXCHANGE RATE

Document Change History:

Version Date of Change Author Summary of Change
Draft 22.05.2013 Dhruma D. Vora Initial
Under 10.09.2013 Dhruma D. Vora Incorporated review comments with
Review User Champions
Final 10.09.2013 Dhruma D. Vora Final Version

Checklist
Business Event Description
 Are the Business Considerations and “To-Be” event descriptions complete?
 Are the descriptions clearly written? (Free of jargon, logically organized etc.)

Business Process Flow

 Have standard symbols been used?
 Do the flows reference appropriate manual and system points?
 Are the flows at an appropriate level of detail?

Other
 Have all interface and reporting points been identified?
 Have all development items been identified and documented?
 Have differences between current and To-Be processes documented?
 Have all issues been logged in the issues log? Cross Referenced in this document? Attached
to this document? (functional, technical, conversion, development, change management)
 Have all the gaps been documented?
 Have all high-level conversion considerations been documented?
 Has the application architecture been updated to reflect interfaces?
 Have all referenced items been noted and attached where appropriate? (Spreadsheets,
Functional information papers, etc.)

Business Event Summary

Process: Foreign Exchange Management
Sub-Process: Foreign Exchange Management
Event This document will deal with the
Description:  Maintenance of exchange rates.
 Foreign exchange differences.
 Foreign exchange revaluation.

To-Be processes

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 Business Blue Print Document

TO-BE: Proposed Business Process Description

Document future To-Be process based on system requirements. Note which tasks are system
vs. manual transaction. Also cross-reference the number of each task to the number of step in
the process flow diagram.
Activity / Task System
No. Activity / Task Description
Name Transaction
1 Maintain An ‘Exchange Rate’ is defined for each pair of OB08
Exchange currencies, and for each ‘Exchange Rate type’
Rate defined in the system The exchange is defined at
the document header level. Different exchange rate
types will be defined (primarily rates mentioned
later in the document).

If you have to calculate values, such as invoice

amounts and transaction costs, in different
currencies, the appropriate exchange ratios,
exchange rate types and exchange rates need to
be maintained for this combination. The system
always uses the most up- to date exchange rate
when calculating values for various purpose.
You can also upload the exchange rates that a
country’s customs authorities define for a certain
interval. These exchange rates are the basis for
value information, for example, and the dependent
calculation of customs duties for a transactions.
 convert foreign currencies during posting or
clearing
 check a manually entered exchange rate
 determine profits and losses from exchange
rate differences
 evaluate open items in the foreign currency
 evaluate the foreign currency balance sheet
accounts
Exchange rates are stored time-dependent. They
are valid as of the date entered. The historical
rates, as maintained for various exchange rate
types, will be available in the system.

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2 Currency Foreign exchange rate revaluation calculation is a ONOT

Exchange closing activity. We can maintain local currency
Rate and additional currencies in SAP configuration.
Usually exchange rate configuration is required,
when the company is having business transactions
in various currencies. Exchange rate is a way to
calculate the differences between local currency
and transaction currency
There are different types of exchange rates
between various types of currencies, like indirect
quotation and direct quotation through bank selling
rate, bank buying rate and average rate. We have
different types of exchange rate between local
currency and transaction currency. Exchange rates
can calculate between two currencies other than
local currency.
The Exchange rate can use for the functions like:
valuation, conversion, currency translation. There
are standard Quotations to calculate exchange
rates such as a direct and indirect quotation. We
can also maintain our own currency pair for the
calculating.
Exchange Rate we can maintain ‘ Currency
conversion rate -
Bank Buying Rate - G
Bank Selling Rate - B
Bank Average Rate – M
Plan Exchange Rate – P
Customs Rate – C
Closing Rate - E

Customs rate will be maintained in SAP which will

be used by Collabera for Incentive/Customs duty
purposes.

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 Business Blue Print Document

3 Foreign This process performs the revaluation of all foreign FAGL_FC_

currency currency open items, primarily in customer and VAL
Revaluation vendor accounts, GL accounts using the month
end rate.
This process carries out foreign currency valuation
for accounts managed on an open item basis.
Valuation takes place according to the single
valuation principle. This means that individual open
item on the key date only are taken into
consideration for the valuation.
SAP selects open items for customers, vendors,
and G/L accounts posted in foreign currencies.
Based on the exchange rate on the key date,
exchange rate difference is calculated
automatically and valuation document is posted.
The balance of the foreign currency balance sheet
accounts, i.e., the balance of the G/L account
managed in a foreign currency forms the basis of
the valuation. The exchange rate profit or loss from
the valuation is posted to a separate expense or
revenue account for exchange rate differences.

4 In CIPLA as of now there 2 Exchange rates are SPRO

maintained.
1) Export Booking
2) Import Booking
There is single rate (Spot Rate) in a day which is
maintained and it is used for both import and
exports.

In SAP Exchange rate type M will be used for the

same.

Customs rate is used only for payment of Customs

duty. This will be manually checked at the time of
Customs duty Invoice booking.

CIPLA can take log of OB08 for reporting purpose

Process Flow Diagram:

(To-Be) Not Applicable

(As-Is) Not Applicable

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TO-BE: Development Items

Record development objects. Specify their type (I = Interface, R = Report, E = Enhancement, C
= Conversion, F = Form, W = Workflow) and priority (1 = Mandatory, 2 = Workaround required if
not implemented, 3 = Optional) required. Also cross-reference the number of each task to the
number of step in the process flow diagram.
No. Type Description Priority Ref. To-be Step(s)
01 I Exchange Rate to be updated daily from 1
Reuters
02

TO-BE: Identified Business Work Practice Change

Document the identified business work practice changes to the As-Is process ( Nature of
Changes would be S- System; R – Roles, P- Policies)

Sr. Area Nature of Current Practice in SAP

No Change Practice

TO-BE: Pain Points and Associated Business Impacts

Document the identified Pain Points in the As-Is process and their resolution

Sr. Pain Points Business Resolution Comments

No Impact

As-Is Document Referenced

Document the list of As-Is documents referred in this To-Be process

Sr. As-Is Document No As-Is process Name

No

TO-BE: Identified Business Impacts

Document identified impacts to the business. Specify impact category (OG = Organisation, OP
= Operation, CU = Customer, OT = others) the level of criticality based on depth of business
impact or size of gap (H = High priority issue or benefit to address, M = Medium sized gap/
impact, L = Lower priority to address).
No. Description Impact Category Impact Level Mitigation

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TO-BE: Identified Regulatory Impacts

Document identified impacts regulatory Impacts to the business. Specify as H – High; M –
Medium; L – Low. If the process has no regulatory impact mark as NA.
No Description/Potential Probability of Severity Overall Mitigation
Failure Occurrence of Impact Impact
None

Additional Documents Referenced

Enter the location for all other documents which are referenced here. Enter the full path of the
file. Enter a brief one line description about what the document contains. (E.g. Business
Blueprint, Process Flows, Development Inventory, Issue Logs, etc.)

This BBP document is signed off based on following assurance:

1. Accenture will provide appropriate solution to meet the requirement as described in the ‘TO BE’
and the relevant ‘FIT GAP’ document.
2. Any change should be mutually agreed upon by both Cipla & Accenture and will be recorded as
an addendum to the BBP document.

Sign Off

Sign-off
Please sign and Date. Name Signature Date
Process Owner V.S.Mani

Core Team Member Ramnath

Vaibhav Vaidhya
Sandeep Narang
Datta Sharma
Pravin Mungekar

Functional Consultant Dhruma D. Vora

Quality Assurance Pravin Bhatkulkar

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