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D1007TBP/FICO /1.0/06/09/2000
Financial Accounting & Controlling D1007 KBL e-MAD
Table of Contents
3Organization Structure
Company Code3Business Area3Chart of Accounts3Controlling Area4Operating Concern4Master Data5General Ledger5Customer5Vendor6Cost Centres7Cost Centre Standard Hierarchy7Cost Centre Group (Alternate Hierarchies)7Profit Centres8Profit Centre Standard Hierarchy8Profit Centre Groups (Alternate Hierarchies)9Cost Elements (Primary and Secondary)9Revenue and Cost Element Group9Activity Types11Statistical Key Figures (SKF)12General Ledger13G/L Posting Standard13G/L Posting Offsetting15G/L Planning ( Standard )17Manual Clearing (Standard)19Accounts Receivable20Customer Invoices (SD and SM Module Related)20Customer Invoices (FI Generated)22Customer Down Payment (Standard)24Manual Account Clearing (Customer)26Manual Incoming Payments28Manual Outgoing Payments30Posting of parked documents ( Standard )32Customer Down Payment Clearing34Customer Credit Memo (FI Generated)36Accounts Payable38Vendor Invoices38Vendor Credit Memo (Invoice related)40Vendor Down Payment (Standard)42Manual Clearing (Vendor)44Vendor Invoice ( Standard ) (Direct FI Invoices)46Vendor Credit Memo ( Standard ) (Direct FI related)48Manual Outgoing Payments50Posting of parked documents ( Standard )52Vendor Down Payment (Clearing)54Closing Operations55Foreign currency valuation (balances)55Foreign currency valuation Open items57Regrouping of Receivable and Payables59Business Area Adjustment60Customer / Vendor balance interest calculation61Maintain GR/IR clearing account63Periodic Reporting65Balance carried forward (FI)67Material Debit / Credit68Material Price Change69Withholding Tax70Periodic Processing72Dunning Notice (Customer)72Automatic Clearing74Dunning Notice (Vendor)75Profit and Cost Planning76Statistical Key Figures76Cost Centres76Activity Prices77Profit Centres77Profitability Segments77Actual Posting (Regular as well as Period-end)79Statistical Key Figures79Cost Centres79Internal Orders80Profit Centres80Service Orders80Sales orders which are cost objects (other than make to stock)81Profitability Segments81Management Reporting83Cost Centre Accounting83Internal Orders83Profit Centre Accounting83Sales Orders / Service Orders84Profitability Analysis84
Organization Structure
Company Code
Minimum one company code is required in SAP R/3 system. Audited Accounts for KBL e-MAD will be required to include the same in the accounts of Kirloskar Brothers Limited (KBL). KBL e-MAD shall present its financial statements as per the requirements of Schedule VI to the Companies Act, 1956 so that consolidation process with KBL accounts will be smooth.
CodeName
KB10Kirloskar Bros Ltd. E-MAD
Business Area
As explained by KBL, the company is required to disclose its segments as based on product groups (8 Segments) and geographic locations i.e. about 30 segments (India and all other countries). R/3 will provide segmental data based on product groups (defined as business areas), while geographic location wise information will be available through Profit Center Accounting. Additional balance sheet related data such as fixed assets, bank balances etc. need to be compiled by the accounts department. CodeName
BA01Industrial Pumps Group
BA02Project and Engineered Pumps Group
BA03Valves Group
BA04Machine Tools Group
BA05Agricultural and Domestic Pumps Group
BA06Printing Press Group
BA07Anti-Corrosion Products Group
BA08Other Products
BA09Common Services
Chart of Accounts
One company code can use only one Chart of Accounts and hence only one will be defined.
CodeName
KBCAKirloskar Bros Chart of Accounts
Controlling Area
At least one controlling area is required to activate the CO Module and one company code can be assigned to only one controlling area. CodeName
KB10Kirloskar Bros Ltd. E-MAD
Operating Concern
At least one operating concern is required to be defined to activate Profitability Analysis. A decision in taken by the project management to activate Profiatbility Analysis module at a later date. Therefore it will not be activated but the TOBE document contains the procedure for future. The operating concern when activated will be Costing Based .CodeName
KB10Kirloskar Bros Ltd. E-MAD
Master Data
General Ledger
The G/L master will be of 6 digits as in the legacy system. It will help in maintaining the user comfort. These G/L accounts will be logically grouped into account groups within chart of account (KBCA). The account groups and number ranges for the G/L masters are as follows:
Type of GLAccount GroupNumber Range
LiabilitiesLIAB100000 to 199999
AssetsASST200000 to 299999
IncomeINCO300000 to 399999
ExpensesEXPS400000 to 499999
Creation of new G/L account and changes thereto in Chart of Account will be controlled centrally by Corporate Finance and Accounts Department, Pune. Display authority should be available to all the users.
The entire general ledger accounts except for control (Reconciliation) accounts will be subject to line item management. Most of the balance sheet accounts will be subject to open item management. EEFC accounts are to be maintained in foreign currency.
Customer
Customer master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, whether registered dealer or unregistered, in case of registered dealer his registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act, type of customer, whether he is a vendor also.
Customers should be bifurcated into various types such as: Dealers, Direct Customers, Industrial Sector, Government / Semi Government Undertakings, Original Equipment Manufacturers, Turnkey Project Customers, Associate Concerns, Overseas Clients, One Time (Stray) Customer.
The range of accounts numbers will be of 6 digits which is allocated as under:
Customer Group CodeCustomer Group NameNumber RangeReconciliation Account
KBEXExports KBL151000 to 170000240200
KBINInland KBL100000 to 150000240100
KBOTOne-time cust.- KBL171000 to 171100240100
Every customer will have unique account number for E-MAD operations.
Whenever new customer master is to be opened the requiring department will forward a requisition in specific format to concerned department. On the basis of such requisition, new customer master will be opened. In case of change it will be informed to the concerned department to effect the changes in master record.
Vendor
Vendor master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act. It should also be mentioned whether he is small-scale industrialist, type of vendor, whether he is a customer also.
Vendors should be bifurcated into various types such as: Employee, Factories and offices of KBL, Ancillary Units, Small Scale Industries, and Overseas Suppliers, Contractors, Associate Concerns and others.
The range of accounts numbers will be of 6 digits which is allocated as under:
Factories and offices of KBL
200001 to 200200-KBFA
Ancillary Units
200201 to 210000-KBAU
Small Scale Industries
210001 to 220000-KBSS
Overseas Suppliers
220001 to 225000-KBOS
Contractors
225001 to 230000-KBCT
Associate Concerns
230001 to 231000-KBAC
Others
231101 to 240000-KBOT
Capital Goods
231001 to 231100-KBCG
Employees
000001 to 200000 - KBEM
(Employees ticket number will be his account number in AP Ledger)
Following will be the respective Reconciliation Accounts in General Ledger for above range of accounts:
140300 Depot Ledger Controlling Account for range of accounts with numbers 200001 to 200200.
140400 Advance Ledger Controlling Account for range of accounts with numbers 1000 to 200000
140500 Accounts Payable Controlling Account for all the remaining accounts.
Every vendor will have unique account number for E-MAD operations.
Whenever new vendor is to be opened, the requiring department will forward a requisition in specific format to concerned department. On the basis of said request, new account will be opened.
In case of change it will be informed to the concerned department to effect the changes in master record.
Cost Centres
Cost centres will be defined to reflect location and product group. The cost centre numbers will be numeric of five digits. The numbering logic will be as follows:
First two numbers
Location (e.g. Pune, Mumbai)
Last three numbers
Product group (e.g. DB, KPD, and Mini)
For each location, common cost centres will also be created to collect costs, which are not directly allocable. One additional common cost centre will also be created at locations with service centres for service management.
Combination of product groups will form a product division (e.g. industrial pumps, valves). Product division will not form part of cost centre numbering logic but will be reflected through sub-groupings (nodes) in cost centre standard and alternate hierarchies.
Cost Centre Standard Hierarchy
Standard hierarchy will be maintained location wise, product division wise. The node names will be KBC00 + location code + Product division code. The hierarchy structure will be as follows:
KBC00
KBC00 + location code
KBC00 + location code + product division code
The cost centres will be attached to the lowest level node.
Cost Centre Group (Alternate Hierarchies)
Additional cost centre groups will be maintained product division wise, product group wise as follows:
KBC10
KBC10 + product division code
KBC10 + product division code + product group code
Profit Centres
Profit centres will be defined to reflect location, product group and SBU. The profit centre numbers will be numeric of seven digits. The numbering logic will be same as that of cost centres for location and product group:
First two numbers
-Location (e.g. Pune, Mumbai)
Next three numbers
-Product group (e.g. DB, KPD, Mini)
Last two numbers
-SBU
The cost centres will be attached to the respective profit centres.
Combination of product groups will form a product division (e.g. industrial pumps, valves). Product division will not form part of profit centre numbering logic but will be reflected through sub-groupings (nodes) in profit centre standard and alternate hierarchies.
Profit Centre Standard Hierarchy
Standard hierarchy will be maintained location wise, product group wise. The node names will be KBL00 + location code. The hierarchy structure will be as follows:
KBP00
KBP00 + location code
KBP00 + location code + product division code
The profit centres will be attached to the lowest level node.
Profit Centre Groups (Alternate Hierarchies)
Additional profit centre group will be maintained as follows:
KBP10
KBP10 + product division code
KBP10 + product division code + product group code
KBP20
KBP20 + SBU
Cost Elements (Primary and Secondary)
The necessary income and expenditure GL accounts will be created as primary cost and revenue elements. The number range has to be of same as that of GL accounts i.e. 300000 to 499999. The following primary cost element categories will be used:
1-Primary costs/cost-reducing revenues
4-Accrual/deferral per debit = actual
11-Revenues
12-Sales deduction
22 -External SettlementThe secondary cost elements will be created with a number range of 500000 to 599999. The following secondary cost element categories will be used within the given number ranges.
CategoryNumber range
21 - Internal settlement500000 to 519999
31 - Order/project results analysis 520000 to 539999
41 - Overheads540000 to 559999
42 - Assessment560000 to 579999
43 - Internal activity allocation580000 to 599999
The secondary cost elements will be created with an interval of 100. E.g. Cost elements of category 21 will be 500100, 500200,500300 and so on.
Revenue and Cost Element Group
The following revenue and cost element grouping will be maintained. This will be first maintained in CCA and then will be copied to PCA.
KBL000Revenue and Cost element group
KBL100Sales
KBL101Sale of main products
KBL102Sale of services
KBL103Sale of spares
KBL200Other income
KBL201Income from investments
KBL202Miscellaneous receipts
KBL203Income from agriculture
KBL204Profit on sale of asset
KBL205Recovery of bad debts
KBL206Profit on sale of investments
KBL207Royalty received
KBL300Material cost
KBL301Cost of goods sold
KBL302Stores and spares consumed
KBL303Processing charges
KBL400Personnel related expenses
KBL401Salaries, wages & bonus
KBL402Payment under VRS
KBL403Contribution to PF & state insurance
KBL404Contribution to superannuation fund
KBL405Workmen & staff welfare expenses
KBL406Provision for gratuity
KBL500Brokerage and commission
KBL501Brokerage
KBL502Commission
KBL600General expenses
KBL601Power & fuel
KBL602Repairs to buildings
KBL603Repairs to machinery
KBL604Rent
KBL605Rates & taxes
KBL606Insurance
KBL607Excise duty paid
KBL608Travelling & conveyance
KBL609Advertising & publicity
KBL610Postage & telephone
KBL611Transportation
KBL612Lease rent
KBL613General Expenses
KBL614Donations
KBL615Directors fees
KBL616Directors travelling expenses
KBL617Directors remuneration
KBL618Managing directors remuneration
KBL619Bad debts written off
KBL620Royalties & fees
KBL621Agricultural expenses
KBL622Loss on sale / scrapping of fixed assets
KBL623Provision for doubtful debts / advances
KBL624Loss on sale of investments
KBL625Services Received from Press
KBL626Services Received from Head Office
KBL627Excess Provision
KBL700
Depreciation
KBL800
Interest Paid
KBL900
Cash Discount
KBL990Other secondary costs
KBL991Internal settlement
KBL992Order / project result analysis
KBL993Overheads
KBL994Assessment
KBL995Internal activity allocationThe following balance sheet group will be created for reporting of inventory, accounts receivable and accounts payable in PCA.
KBLBS Balance sheet accounts
KBLBS-INVInventory
KBLBS-ARAccounts receivable
KBLBS-APAccounts payable
Activity Types
Activity types will be used for service activity for service management module. The activity type names will be alphanumeric. Common activity types will be created for all product divisions. These are as follows:
CodeNameUnitCost Element
AT01HRUpto & Including SuperviosorsHour580100
AT01DYUpto & Including SuperviosorsDay580200
AT02HRAbove Superviosors, upto & incl. ManagersHour580300
AT02DYAbove Superviosors, upto & incl. ManagersDay580400
AT03HRAbove ManagersHour580500
AT03DYAbove ManagersDay580600
Statistical Key Figures (SKF)
SKFs will be created for each location to act as a base for assessment of common cost centre costs. The units of measures to be used are
% - Percentage
EA Each (number of people, sales value)
M2 - Sq. meter (floor space).
The SKFs name can be of 6 character alphanumeric. It will start with 2 digit location code used in cost centre numbering logic followed by four characters to reflect the purpose of SKF. The data in SKFs will be reviewed every quarter to incorporate changes, if any. Only actual SKFs will be maintained for first year and will be extended to plan data subsequently.
Refer Annexure 1 for flow chart on master data
General Ledger
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 23rd Aug 2000
Sr. No of TO BE document FI001
AS-IS Business Process Name: General Ledger
Page no.: 10 to 18
Name of Business Process :
G/L Posting Standard
Module: FICOSub-module : GL
Flow Chart of Business Process : Annexure - 2
Detailed description of Business Process:
Requirement:
Generate accounting documents
Facility to display and change (limited extent) the accounting document
Facility to park the document and subsequent posting/cancellation of the parked document
Location specific document numbers to be generated internally
Facility for document entry with reference to predefined entries
Facility to account multi currency transactions.
Control facility at the time of data entry such as that particular user should enter only particular types of voucher
Process:
Every business transaction (journal vouchers, debit / credit advice, asset accounting, cash/bank, period end provisions ) not generated through any module of SAP will be accounted on the basis of manually prepared vouchers duly approved, checked by the appropriated personnel
Based on such vouchers, accountants will enter the data in the system using direct posting, account assignment model, fast entry or sample document facility
The appropriate document type will be used based on location
While entering he will check whether debit amount is equal to credit amount. In case it is not equal it will be corrected and will post the document.
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : Yes
If Yes , whether required format of such report is attached: Yes Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report:
This Report is used for the purpose of documentation and for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Cost Center
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 23rd Aug 2000
Sr. No of TO BE document : FI002
AS-IS Business Process Name: General LedgerPage no.: 10 to 18
Name of Business Process :
G/L Posting Offsetting
Module: FICOSub-module: GL
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Generate accounting documents and clear the same with reference to open items
Facility to display and change (limited extent) the accounting document
Facility to park the document and subsequent posting/cancellation of the parked document
Location specific document numbers to be generated internally
Facility to account multi currency transactions
Control facility at the time of data entry such as that particular user should enter only particular types of voucher
Process:
Every business transaction not generated through any module of SAP will be accounted on the basis of manually prepared vouchers duly approved, checked by the appropriate personnel
Based on such vouchers, accountants will enter the data in the system using direct posting, account assignment model, fast entry or sample document facility
While entering the data, user will offset (clear) the transaction by selecting the open items
In case open item and the amount to be cleared is not equal, it can be treated as partial payment against particular open item or open item will be cleared with the payment amount and open item for balance amount (residual) will be created
While entering he will check whether debit amount is equal to credit amount. In case it is not equal it will be corrected and will post the document
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document
Gaps: Nil
Any reports required related to current business process : Yes
If Yes , whether required format of such report is attached: Yes Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report:
This Report is used for the purpose of documentation and for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not Applicable
If Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Cost Center.
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 23rd Aug 2000
Sr. No of TO BE document : FI002
AS-IS Business Process Name: General LedgerPage no.: 10 to 18
Name of Business Process :
G/L Planning ( Standard )
Module: FICOSub-module: GL
Flow Chart of Business Process : Annexure - 3
Detailed description of Business Process:
Requirement:
Budgeted financial data for each Segment / G/L account / on period basis i.e. monthly, quarterly, yearly.
Accumulate budget data from CCA module for expense accounts to FI module
Process:
Get information of plan data from all the concerned departments / cost centers at Company Code Level, Business Area Level, G/L Account Level and amount
Information for cost center will be for expense accounts only
Transfer all the expense after summing up for all the cost centers
Get information of plan data bifurcated into periods such as monthly / quarterly, etc.
Compare actual versus plan
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Actual versus plan financial statements
Variance and percentage
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of decision making and management information.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, G/L account
Inputs/ data received from other function for this process, ( if any ) : Yes. The data is received from CO-CCA.
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 23rd August 2000
Sr. No of TO BE document : FI003
AS-IS Business Process Name: General Ledger
Page no.: 10 to 18
Name of Business Process :
Manual Clearing (Standard)
Module: FICOSub-module : GL
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
System should facilitate scrutiny of General Ledger Accounts
Facility of clearing open items should be available
In case of part clearing, option of both partial and residual clearing should be available
Process:
Transaction in General Ledger will be verified with original vouchers and cleared against respective open line items
Gaps: Nil
Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: Not Applicable
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
Accounts Receivable
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI004
AS-IS Business Process Name: Accounts ReceivablePage no.: 23 to 89
Name of Business Process :
Customer Invoices (SD and SM Module Related)
Module: FICOSub-module : AR
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
User defined Age wise, payment terms wise, group wise, region wise classification of invoices/ balances.
Profit center wise bifurcation of balances appearing to the account of customer
Due date wise classification of dues from customers (Segment wise)
Customer account to display the different order wise unadjusted advances and particulars of pending Sales Tax declarations
Facility to view the customer balances as a whole together with all the branches
Customers debit notes if any will come to Accounts Department directly. Accounts Dept. will exercise control on Customers debit notes
Generate accounting Documents
Facility to Display and change(Limited extent) the accounting document
Location specific document numbers to be generated internally
Automatic calculation of overdue interest, liquidated damages and cash discount
Tracking of forms
Maintenance of various registers mandatory as per Sales Tax Acts
Accounting in multiple currencies.
Report of Running Account (RA) Bills
Process:
After the billing process done in SD module, accounts department will verify the accounting documents generated on daily basis
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer
Information to arrive at the amount of sales tax payable
Report on user defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers
Document Register based on document type, posting date, period etc.
Customer Trial Balance
Report of Running Account (RA) Bills
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area
Inputs/ data received from other function for this process, (if any): SD module will release invoice for accounting after all the processes of inquiry, order, despatch and billing.
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI005
AS-IS Business Process Name: Accounts ReceivablePage no.: 23 to 89
Name of Business Process :
Customer Invoices (FI Generated)
Module: FICOSub-module : AR
Flow Chart of Business Process : Annexure - 4
Detailed description of Business Process:
Requirement:
Facility to raise invoice for sale that does not pertain to products and which is not routed through SD module
User defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers and balances.
Profit center wise bifurcation of balances appearing to the account of customer
Due date wise classification of dues from customers
Customer account to display the different order wise unadjusted advances and particulars of pending Sales Tax declarations
Facility to view the customer balances as a whole including special G/L balances together with all the branches
Generate accounting Documents
Facility to Display and change(Limited extent) the accounting document
Facility to park the document and subsequent posting/cancellation of the parked document
Location specific document numbers to be generated internally
Automatic calculation of cash discount
Process:
The requests to raise invoices will come to Accounts Dept. directly from concerned departments (e.g. sale of miscellaneous items like scrap etc.), complete in all respects.
Accounts Dept. will raise the invoice and account for
Accounts Dept. will receive the cheque / cash from the customer against the invoice and account for the same
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer
Sales Invoice
Sales Tax register
Report on user defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers
Document Register based on document type, posting date, period etc.
Customer Trial balances
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, (if any): Nil
Output from this business process sent to other functions, ( if any ) : Nil
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI006
AS-IS Business Process Name: Accounts ReceivablePage no.: 23 to 89
Name of Business Process :
Customer Down Payment (Standard)
Module: FICOSub-module : AR
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Accounting in multiple currency
Information regarding down payment received, such as sales order number, reference of commercial policy, details of earnest money deposit etc.
Down payments received from customers should be accounted to Special General Ledger Account
Provision for calculation and accounting of interest on down payments Information regarding bank guarantees given.
Process:
Down payments will be received from customers in accordance with the terms of sales order, commercial policy etc.
This will contain the name of the customer, nature of payment and information of tax deducted by the customer.
In case bank guarantees are given to the customer, it will be accounted as statistical information.
Based on this information, the down payment received from customer will be entered into books of accounts, net of TDS. Credit for TDS will be given to the customer only on receipt of TDS certificate before due date of filing our return
The system should generate money receipt while accounting such down payments.
Such vouchers will be entered into the books of accounts through location specific document type Bank / Cash Journal
Gaps: Nil
Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NADescription of reports to be used i.e. purpose of such report: NA
Any document/output would be printed for this business process: Yes
If Yes mention name of such document: Money Receipt.If Yes, whether required format of document / output is attached: Yes
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center.
Inputs/ data received from other function for this process, (if any): Down Payment Request
Output from this business process sent to other functions, (if any): Yes. Money receipts will be sent to the customer, pay in slip will be used for bank transactions, advices for interest will be mailed to customer.
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI007
AS-IS Business Process Name: Accounts Receivable
Page no.: 23 to 89
Name of Business Process :
Manual Account Clearing (Customer)
Module: FICOSub-module : AR
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
System should facilitate scrutiny of customer Accounts.
Facility of clearing open items should be available.
In case of part clearing, option of both partial and residual clearing should be available.
Process:
Transaction in customer Ledger and Special General Ledger will be verified with original vouchers and cleared against respective open line items
Open items in customer ledger with be verified with each other and cleared against respective open line items
Gaps: Nil
Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: N A
Any document/output would be printed for this business process: No If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI008
AS-IS Business Process Name: Accounts Receivable
Page no.: 23 to 89
Name of Business Process : Manual Incoming Payments
Module: FICOSub-module : AR
Flow Chart of Business Process : Annexure - 5
Detailed description of Business Process:
Requirement:
Accounting in multiple currency
Details of payment received, such as invoice number, date, amount, nature of deductions made and amounts deducted on each count, overdue interest paid etc.
Information regarding deduction of Income Tax
Payments received from customers should be accounted to their account in Accounts Receivable Ledger
Provision for clearing payments received from customers fully / partially / residually against open items in customers account
Provision for calculation and accounting of overdue interest and cash discount on down payments
Process:
Payments will be received from customers in accordance with the terms of sales order, commercial policy etc.
This will contain the name of the customer, details of payment, details of deductions made and amounts deducted on each count, overdue interest paid, information for deduction of tax at source etc.
Based on this information, the payment received from customer will be entered into system
The system should generate money receipt while accounting such down payments.
Such vouchers will be entered into the books of accounts through location specific document type Bank / Cash Journal
Payments received from customers will be cleared against open items in the customers accounts
Calculation and accounting of cash discount will be made at the time of accounting of payments received from customers.
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes
Statement of account of the customer.
Report on age wise classification of customers, due date-wise analysis of dues from customers, Profit center-wise information on dues from customers.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI009
AS-IS Business Process Name: Accounts Receivable
Page no.: 23 to 89
Name of Business Process :
Manual Outgoing Payments
Module: FICOSub-module : AR
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Accounting in multiple currency
Information regarding customers to whom payment is to be made
Payments made to customers should be accounted to their account in Accounts Receivable Ledger as well as to his account in Special General Ledger
Provision for clearing manual payments against open items in respective accounts
Process:
Payments will be made to customers in accordance with instructions received from appropriate authorities
This will contain the name of the customer, reason for payment.
Based on this information, FI should generate Remittance Letter through SAP R/3 system
Based on this information, cheque will be prepared in the name of the customer and payment made
Such vouchers will be entered into the books of accounts through location specific document type Bank / Cash Journal
Payments made to customers will be cleared against open items in his account in Accounts Receivable Ledger as well as in Special General Ledger, automatically either in full / part / residual
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes
Statement of account of the customer.
Report on Age wise classification of customer, due date-wise analysis of dues from customers, Profit center-wise information on dues from customers.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: Yes
If Yes mention name of such document : Remittance Letter
If Yes, whether required format of document / output is attached: Yes
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI010
AS-IS Business Process Name: Not in As-IS
Page no.:
Name of Business Process :
Posting of parked documents ( Standard )
Module: FICOSub-module : AR
Flow Chart of Business Process : Annexure 4 & Annexure - 5
Detailed description of Business Process:
Requirement:
Facility to park the document and subsequent posting/change/display of the parked document.
Location specific document numbers to be generated internally.
Process:
In case user is not having authorization, he will park the document and senior user having authorization will post / change / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the customer.
Report on Agewise classification of customers, due date-wise analysis of dues from customers, cost center-wise information on dues from customers.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information and for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI011
AS-IS Business Process Name: Accounts Receivable
Page no.: 23 to 89
Name of Business Process :
Customer Down Payment Clearing
Module: FICOSub-module : AR
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Facility of clearing open items in customer Account with Special General Ledger Account
On clearing of open items in Special General Ledger Account with those in customer Account, the system should generate accounting entry with location specific document type.
Process:
Transaction in customer Ledger and Special General Ledger will be verified with original vouchers and cleared against respective open line items
Open items in customer ledger will be verified with each other and cleared against respective open line items
Down payments received from customers will be cleared against open items in the customers accounts as well as in accounts in Special General Ledger
Gaps: Nil
Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: N A
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI012
AS-IS Business Process Name: Accounts Receivable
Page no.: 23 to 89
Name of Business Process :
Customer Credit Memo (FI Generated)
Module: FICOSub-module : AR
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
User defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers and balances.
Profit center wise bifurcation of balances appearing to the account of customer.
Due date wise classification of dues from customers.
Customer account to display the different order wise unadjusted advances and particulars of pending Sales Tax declarations.
Facility to view the customer balances as a whole together with all the branches including special G/L balances.
Customers debit notes if any will come to Accounts Department directly. Accounts Dept. will exercise control on Customers debit notes.
Generate accounting Documents
Facility to Display and change(Limited extent) the accounting document
Facility to park the document and subsequent posting/cancellation of the parked document.
Location specific document numbers to be generated internally.
Automatic calculation of overdue interest, liquidated damages and cash discount.
Process:
Accounts Dept. will receive debit note from customer, if any.
After verification of the debit note, if it is observed that the customer has raised the debit note for excess amount, Accounts Dept. will raise a debit note on customer. In such case correct amount will be debited to Income Account, excess amount will be debited to the customers account and total amount of debit note will be credited to the customers account. If he has raised debit note for fewer amounts, the customers debit note will be passed for correct amount using location specific document type.
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : Yes
If Yes , whether required format of such report is attached: Yes
Statement of account of the customer.
Sales Tax register
Report on user defined Age wise, payment terms wise, group wise, region wise classification of invoices and credit notes on / to customers.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, (if any): Nil
Output from this business process sent to other functions, ( if any ) : Nil
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
Accounts Payable
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI013
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Vendor Invoices
Module: FICOSub-module : AP
Flow Chart of Business Process : Annexure - 6
Detailed description of Business Process:
Requirement:
Accounting in multiple currency.
Invoice from vendor with complete details such as reference of purchase order, date, description of material, quantity, rate, discount, value, details of duties and taxes, terms of payment etc.
Open items in vendor account should appear.
Line items in vendor account should appear.
Age-wise classification of dues to vendors.
Due date-wise classification of dues to vendors.
Facility for two-way (i.e. without GRN) and three-way invoice verification.
Generate accounting Documents
Facility to Display and change (Limited extent) the accounting document
Facility to park the document and subsequent posting/cancellation of the parked document.
Location specific document numbers to be generated internally.
Process:
The invoices of vendors will come to accounting clerk and will be posted with reference to Purchase Order and GRN posted (if any) in MM module.
Sometimes FI also will receive invoices of vendors directly from them (e.g. supply of stationery etc. items).
Invoice verification activity will be done by FI only. Invoice verification will be two-way as well as three-way. Two-way means invoice verification without GRN. Three way means invoice verification with GRN. It will be accounted using location specific document types.
If on invoice verification it is observed that the vendor has raised the invoice for excess amount, a debit note will be raised on vendor. In such case correct amount will be debited to Inventory Account, excess amount will be debited to the vendors account and total invoice amount will be credited to the vendors account. If he has raised invoice for fewer amounts, the vendors invoice will be passed for correct amount.
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes
Statement of account of the vendor.
Information to arrive at the amount of Purchase set off available.
Report on Agewise classification of creditors, due date-wise analysis of dues to vendors, product group/ location wise payables.
Document Register based on document type, posting date, period etc.
Vendor Trial Balance.
Vendor wise purchases.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information and for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system: Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center.
Inputs/ data received from other function for this process, ( if any ) : Purchase Order, GRN.
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI014
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Vendor Credit Memo (Invoice related)
Module: FICOSub-module : AP
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Accounting in multiple currency.
FI will exercise control on Vendor credit memo.
Facility for verification and adjustment against original invoice of the vendor.
Generate accounting Documents
Location specific document numbers to be generated internally.
Process:
Vendor Credit Memo with complete details (such as reference of Purchase Order, Date, Vendors Invoice, Description of material, Quantity, Rate, Discount, Reason for credit memo, details of duties and taxes) will come to Accounts Department, who will verify based on supporting and other documents available.
If on verification it is observed that the vendor has issued the credit memo for excess amount, a credit note will be issued to vendor. In such case total amount of credit memo will be debited to the vendor account, excess amount will be credited to the vendors account and balance amount will be credited to the respective Inventory/Expenses account. If he has issued the credit memo for lesser amounts, the vendors credit memo will be passed for correct amount using location specific document types.
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor.
Information to arrive at the amount of Purchase set off available.
Report on Age wise classification of creditors, due date wise analysis of dues to vendors, product-group/ location wise payables.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information and for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system: Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center.
Inputs/ data received from other function for this process, ( if any ) : Purchase Order, GRN and vendor Credit Memo request from MM.
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI015
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Vendor Down Payment (Standard)
Module: FICOSub-module : AP
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Accounting in multiple currency.
Information regarding vendors to whom down payment is to be made.
Information regarding deduction of Income Tax.
Advances paid to vendors should be accounted to Special General Ledger Account.
Balances of vendor accounts in Reconciliation Account as well as Special General Ledger Account should be shown individually and also in totality.
Process:
Cashier will receive Payment request containing the name of the vendor, reason for payment and instructions for deduction of tax at source from Purchasing Department for Advances in accordance with Purchase order after duly verified by the appropriate authority.
Cashier will prepare the cheque and voucher on the basis of Payment Request. It will be verified and signed by the authorized personnel.
Accounting document will be posted in SAP R/3 for the Advance payment and FI will generate Remittance Letter through SAP R/3 system.
Such vouchers will be entered into the books of accounts through location specific document type Bank / Cash Journal . In case letter of credit, bank guarantee given, it will be accounted as statistical information.
Gaps: Nil
Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NA
Description of reports to be used i.e. purpose of such report: NA
Any document/output would be printed for this business process: YesIf Yes mention name of such document : Remittance Letter
If Yes, whether required format of document / output is attached: Yes
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Centre
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI016
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Manual Clearing (Vendor)
Module: FICOSub-module : AP
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
System should facilitate scrutiny of Vendor Accounts.
Facility for clearing debit items against credit items and vice versa should be available.
In case of part clearing, option of both partial and residual clearing should be available.
Facility of clearing open items in Vendor Account with Special General Ledger open items.
On clearing of open items in Special General Ledger Account with those in Vendor Account, the system should generate necessary accounting document using location specific document type.
Provision for clearing at the time of entering manual payments against vendor invoices / credit notes.
Process:
Transaction in Vendor Ledger and Special General Ledger will be verified with original vouchers and cleared against respective open line items.
Gaps: Nil
Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NoDescription of reports to be used i.e. purpose of such report: N A
Any document/output would be printed for this business process: No If Yes mention name of such document : Not Applicable
If Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI017
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Vendor Invoice ( Standard ) (Direct FI Invoices)
Module: FICOSub-module : AP
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Accounting in multiple currency.
Provision for two ways (i.e. without GRN) and three ways invoice verification.
Generate accounting Documents
Location specific document numbers to be generated internally.
Process:
Purchase orders will be created using MS-word and will not be entered in MM-purchasing.
The invoices of vendors will come to accounts department. (e.g. supply of stationery etc. items) with complete details such as reference of purchase order, date, description of material, quantity, rate, discount, value, details of duties and taxes, terms of payment etc.
Confirmation for receipt of material will also come to accounts department. Document confirming receipt of material / service with reference to Purchase / Sales Order against which the material is purchased and serial numbers of the products purchased.
Invoice and receipt document will be matched.
Accounts department will do invoice verification activity on the basis of available supporting documents such as purchase order, material receipt document.
If on invoice verification, it is observed that the vendor has raised the invoice for excess amount, a debit note will be raised on vendor. In such case correct amount will be debited to respective purchase account, excess amount will be debited to the vendors account and total invoice amount will be credited to the vendors account. If he has raised invoice for lesser amounts, the vendors invoice will be passed for correct amount through location specific document types.
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor.
Information to arrive at the amount of Purchase set off available.
Report on Agewise classification of creditors, due datewise analysis of dues to vendors, cost centre wise information on dues to vendors.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI018
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Vendor Credit Memo ( Standard ) (Direct FI related)
Module: FICOSub-module : AP
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Accounting in multiple currency.
Document confirming approval to vendor credit memo from authorized officer.
Provision for verification and adjustment against original invoice of the vendor.
Generate accounting Documents
Location specific document numbers to be generated internally.
Process:
The credit memo of vendors with complete details (such as reference of purchase order, date, vendor invoice, date, description of material, quantity, rate, discount, value, reason for credit memo, details of duties and taxes, terms of payment etc.) will come to accounts department duly approved by appropriate authority with required supporting documents.
This credit memo will be verified with original invoice of the vendor and supporting as referred above.
After verification, the vendor credit memo will be accounted for in the System. If on verification it is observed that the vendors credit memo is for excess amount, a credit note will be issued to vendor. In such case correct amount will be debited to appropriate General Ledger Account, excess amount will be credited to the vendors account. If he has raised credit memo for lesser amount, the vendors credit memo will be passed for the amount stated in credit note and the debit note will be raised for the differential amount through location specific document types.
In case user is not having authorization, he will park the document and senior user having authorization will post / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : Yes Statement of account of the vendor.
Information to arrive at the amount of Purchase set off available.
Report on Agewise classification of creditors, due date-wise analysis of dues to vendors, product group / location wise, segment wise information on dues to vendors.
Document Register based on document type, posting date, period etc.
If Yes , whether required format of such report is attached: Yes
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not Applicable
If Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center.
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI019
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Manual Outgoing Payments
Module: FICOSub-module : AP
Flow Chart of Business Process : Annexure - 7
Detailed description of Business Process:
Requirement:
Accounting in multiple currency.
Information regarding vendors to whom payment is to be made.
Information regarding deduction of Income Tax.
Payments made to vendors should be accounted to their account in Accounts Payable Ledger.
Process:
Payments will be made to vendors only on receipt of payment request containing name of the vendor, reason for payment and instructions for deduction of tax at source from Purchasing Department.
The Payments will be made to vendors in accordance with the terms of Payment as stated in Purchase Order.
Based on this information, cheque will be prepared in the name of the vendor.
Accounts Department will enter the above payment in the system specifying against which invoice (through location specific document type Bank / Cash Journal ) and Remittance Letter will be generated through SAP R/3 system.
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes
Statement of account of the vendor.
Report on Agewise classification of creditors, due date-wise analysis of dues to vendors, profit center-wise information on dues to vendors.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information, for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: Yes
If Yes mention name of such document : Remittance LetterIf Yes, whether required format of document / output is attached: Yes
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center.
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI020
AS-IS Business Process Name: Not in As-Is
Page no.:
Name of Business Process :
Posting of parked documents ( Standard )
Module: FICOSub-module : AP
Flow Chart of Business Process : Annexure 6 & Annexure 7
Detailed description of Business Process:
Requirement:
Facility to park the document and subsequent posting/change/display of the parked document as referred in Vendor invoices / credit memo process.
Location specific document numbers to be generated internally.
Process:
In case user is not having authorization, he will park the document and senior user having authorization will post / change / cancel the parked document.
Gaps: Nil
Any reports required related to current business process : YesIf Yes , whether required format of such report is attached: Yes Statement of account of the vendor.
Report on Agewise classification of creditors, due datewise analysis of dues to vendors, cost centrewise information on dues to vendors.
Document Register based on document type, posting date, period etc.
Description of reports to be used i.e. purpose of such report: This Report is used for the purpose of documentation, management information and for facilitating the audit process and for the purpose of statutory compliance.
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not Applicable
If Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Center.
Inputs/ data received from other function for this process, ( if any ) : Vendor invoice, Purchase Order, GRN and vendor Credit Memo from MM.
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI021
AS-IS Business Process Name: Accounts Payable
Page no.: 91 to 97
Name of Business Process :
Vendor Down Payment (Clearing)
Module: FICOSub-module : AP
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Provision for clearing down payments against vendor invoices.
Process:
Down payments made to vendors will be cleared after invoice verification activity.
Generate accounting documents using location specific document types.
Gaps: Nil
Any reports required related to current business process : NoIf Yes , whether required format of such report is attached: NADescription of reports to be used i.e. purpose of such report: NA
Any document/output would be printed for this business process: YesIf Yes mention name of such document : Remittance Letter
If Yes, whether required format of document / output is attached: Yes
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area, Profit Centre.
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
Closing Operations
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 22rd August 2000
Sr. No of TO BE document : FI022
AS-IS Business Process Name: General Ledger Closing Operations
Page no.: 18
Name of Business Process :
Foreign currency valuation (balances)
Module: FICOSub-module : GL Closing
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Valuation of balances in foreign currency (G/L accounts) at the end of each quarter and creation of required accounting document
Process:
Foreign currency rates (buying, selling, average) for the purpose of valuation will be maintained at each quarter
Valuation of G/L balances and generating accounting document
Dr./Cr. Exchange difference account
Dr./Cr. Respective G/L account
Foreign currency - Nil, Local currency Difference amount
In case of debit balances (assets) it will be valued at buying rate and in case of credit balances (liabilities) it will be valued at selling rate
Gaps: Nil
Any reports required related to current business process : Yes
Report showing the details of calculation
If Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report: N A
Any document/output would be printed for this business process: No
If Yes mention name of such document : Not ApplicableIf Yes, whether required format of document / output is attached: Not Applicable
Whether data records of current business process would be transferred to system other than SAP R/3: NoIf Yes, Describe in details and attach the format in which data would be stored in the other system : Not Applicable
Which hierarchy levels would be associated with this business process
( please mention about all scenarios ) :
Company code, Business Area
Inputs/ data received from other function for this process, ( if any ) : No
Output from this business process sent to other functions, ( if any ) : No
Sign-off (Approval) for this document :
Name of Team memberOrganization/Bus. UnitSignature
M M NaikKBL - Kirloskarvadi
S ShreekrishnanKBL - Dewas
V R KulkarniKBL - Pune Head Office
M R RajwadeKBL - Pune Projects
R R KitturKBL - Pune Area Office
TO-BE Document
For SAP R/3 Implementation at Kirloskar Brothers Limited
Date : 24th August 2000
Sr. No of TO BE document : FI023
AS-IS Business Process Name: General Ledger Closing Operations
Page no.: 18
Name of Business Process :
Foreign currency valuation Open items
Module: FICOSub-module : GL Closing
Flow Chart of Business Process : Nil
Detailed description of Business Process:
Requirement:
Valuation of open items in foreign currency (customer / Vendor) at the end of each quarter and creation of required accounting document
Exchange difference should be accounted in respective purchase / sale account
Process:
Foreign currency rates (buying and selling) for the purpose of valuation will be maintained at each quarter
Valuation of open items at quarter end date and generating accounting document
Dr./Cr. Respective Purchase / Sale account
Dr./Cr. Clearing account
This accounting document will be generated with posting date of end of the quarter
The aforesaid accounting document will be reversed on 1st of the next quarter
In case of debit balances (assets) it will be valued at buying rate and in case of credit balances (liabilities) it will be valued at selling rate
Gaps: Exchange difference will be accounted to exchange difference account instead of respective purchase / sale account
Any reports required related to current business process : Yes Report showing the details of calculation
If Yes , whether required format of such report is attached: YesDescription of reports to be used i.e. purpose of such report: N A
Any docu