fico bbp final

FINANCIAL ACCOUNTING&

CONTROLLING

BUSINESS BLUEPRINT

Submitted to

Druk Green Power Corporation Limited&

Dagachhu Hydropower Corporation Limited

By

Wipro Ltd.26/10/2010

Version 01.00

–eGreen FICO Business Blueprint

DOCUMENT APPROVALS

Prepared By

(Mr. Amit Mundada)Wipro Lead Consultant Dated Signature

Prepared By

(Mr. Shinas Hamza) Dated SignatureWipro Consultant

Reviewed By

(Mr. T.B. Monger) Core Team Lead Dated Signature

(Ms.Sonam Choeden- CTM) Dated Signature

(Mr. Samgay - CTM) Dated Signature

(Mr. Kunzang Dorji - CTM) Dated Signature

(Mr. Kelzang Thukten - CTM) Dated Signature

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© Wipro Limited, 2010, All Rights Reserved.This document is proprietary to Wipro Infotech, a division of Wipro Limited.

You may not modify, copy, reproduce, republish, upload, post, transmit or distribute any material from this document,

in any form or by any means, nor may you modify or create derivative works based on the text of any file, or any part

thereof for public, private or commercial use, without prior written permission from Wipro Limited.


Reviewed by

(Rajneesh Sharma)Wipro Project Lead Dated Signature

Reviewed by

(Balaji Srinivasamurthy)Wipro Project Manager Dated Signature

Reviewed by

(Jambay Tshering)Project ManagereGreen Project Dated Signature

Approved by

(Ugyen Namgyal)Project DirectoreGreen Project& BPO, FICO Dated Signature

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DOCUMENT INFORMATION

Project Name Document Name Document LocationeGreen FICO Business Blueprint Document Server

DOCUMENT HISTORY

Version Document Date Authors Reviewed ChangeName By Control

0.1 Business 03.09.2010 ShinasBlueprint Hamza/ Amit

Mundada

1.00 Business 26.10.2010 ShinasBlueprint Hamza/ Amit

Mundada

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TABLE OF CONTENTS1 EXECUTIVE SUMMARY ........................................................................................ 9

1.1 Background. .................................................................................................... 91.2 Business Blueprint Overview ...................................................................... 101.3 Financial Accounting .................................................................................... 121.4 Module Integration ........................................................................................ 14

2 ORGANISATION STRUCTURE ........................................................................... 162.1 Client .............................................................................................................. 192.2 Company........................................................................................................ 192.3 Company Code .............................................................................................. 192.4 Chart of Accounts (COA) .............................................................................. 202.5 Group Chart of Accounts (GCOA) ............................................................... 202.6 Chart of Depreciation ................................................................................... 212.7 Profit Center ........................................................ Error! Bookmark not defined.2.8 Controlling Area ............................................................................................ 222.9 Cost Centers .................................................................................................. 22

3 MASTER DATA.................................................................................................... 233.1 General Ledger Master ................................................................................. 233.2 Asset Master .................................................................................................. 263.3 Vendor Master ............................................................................................... 273.4 Customer Master ........................................................................................... 273.5 Bank Master ................................................................................................... 283.6 Cost Elements ............................................................................................... 29

4 BUSINESS PROCESSES .................................................................................... 294.1 Configuration Settings ................................................................................. 29

4.1.1 Currency ............................................................................... 294.1.2 Fiscal Year and Fiscal Year Variant .............................................. 304.1.3 Document Type ...................................................................... 314.1.4 Posting Key ........................................................................... 334.1.5 Extended Withholding Tax .......................................................... 34

4.2 General Ledger Postings.............................................................................. 354.2.1 Master Data ........................................................................... 374.2.2 Solution in SAP ....................................................................... 404.2.3 FSBP Link ............................................................................. 514.2.4 Integration Requirement ............................................................ 534.2.5 Description of Improvements ....................................................... 544.2.6 Process Control ...................................................................... 554.2.7 Description of Functional Deficits / Gaps ......................................... 56

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4.3 Account Payables ......................................................................................... 564.3.1 Master Data ........................................................................... 574.3.2 Solution in SAP ....................................................................... 604.3.3 FSBP Link ............................................................................. 694.3.4 Description of Improvements ....................................................... 704.3.5 Process Control ...................................................................... 704.3.6 Description of Functional Deficits / Gaps ......................................... 71

4.4 Account Receivables .................................................................................... 714.4.1 Master Data. .......................................................................... 724.4.2 Solution in SAP ....................................................................... 734.4.3 FSBP Link ............................................................................. 794.4.4 Description of Improvements ....................................................... 794.4.5 Process Control ...................................................................... 804.4.6 Description of Functional Deficits / Gaps ......................................... 80

4.5 Asset Accounting ......................................................................................... 814.5.1 Master Data ........................................................................... 824.5.2 Solution in SAP ....................................................................... 824.5.3 FSBP Link ............................................................................. 934.5.4 Description of Improvements ....................................................... 934.5.5 Description of Functional Deficits / Gaps ......................................... 93

4.6 Bank Accounting .......................................................................................... 944.6.1 Master data ........................................................................... 944.6.2 Solution in SAP ....................................................................... 954.6.3 FSBP Link ............................................................................. 984.6.4 Description of Improvements ....................................................... 99

4.7 Module Integration (MM-FI) ........................................................................ 1004.7.1 Material purchase Accounting & SAP .......................................... 1004.7.2 Inventory Valuation ................................................................ 1014.7.3 Goods Receipt ...................................................................... 1034.7.4 Material Retur n to Vendor ........................................................ 1034.7.5 Vendor Invoice Processing ....................................................... 1034.7.6 Accounting for Goods Movement ............................................... 1034.7.7 Stock Transfer Between Plants .................................................. 1044.7.8 Physical Verification. .............................................................. 1054.7.9 Transfer of Service ................................................................ 1054.7.10 Accounting for Consumption of Material ....................................... 1054.7.11 FSBP Link ........................................................................... 1064.7.12 Description of Functional Deficits / Gaps ....................................... 106

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4.8 Employee Welfare Scheme (EWS) ............................................................. 1074.8.1 Master Data ......................................................................... 1074.8.2 Solution in SAP ..................................................................... 1104.8.3 FSBP Link ........................................................................... 1154.8.4 Reports ...................................... Error! Bookmark not defined.

4.9 Controlling. .................................................................................................. 1154.9.1 Module Integration ................................................................. 118

–4.9.2 Organizational Structure Controlling. ......................................... 1214.9.3 Business Process .................................................................. 127

5 STANDARD INFORMATION SYSTEM .............................................................. 1436 ANNEXURES ..................................................................................................... 146

–6.1 Annexure 1 Key Data Structure .............................................................. 146–6.2 Annexure 2 Business Process Master List ............................................ 146

6.3 Annexure 3 – FRICE Objects ..................................................................... 146

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Abbreviations and Acronyms.

The following abbreviations and acronyms have been used in this document:

Abbreviation/Acronym Description

DGPC Druk Green Power Corporation Limited

AA Asset Ac counting

AP Accounts Payable

AR Accounts Receivable

AUC Asset under Construction

BBP Business Blueprint Process

CCA Cost Center Accounting

CO Controlling

COA Chart Of Account

CSBP Current State Business Process

CWIP Capital Work In Progress

DMS Document Management System

EWS Employee Welfare Scheme

FI Financial Acc ounting

FRICE Format, Reports, Interface, Configuration & Enhancement

FSBP Future State Business Process

G/L or GL. General Ledger

GR Goods Receipt

IM Investment Management

JEMR Joint Energy Meter Reading

IR Invoice Receipts

JV Journal Voucher

MAP Moving Average Price

MM Material Management

PCA Profit Center Accounting

PM Plant Maintenance

PO Purchase Order

PS Project Sys tem

SAP System, Applications and Products

SD Sales and Distribution

STO Stock Trans fer Order

T-Code Transaction Code

TDS Tax Deducted at Source

WBS Work Breakdown Structure

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1 EXECUTIVE SUMMARY

1.1 Background

Druk Green Power Corporation Limited (DGPC) was incorporated under the Companies Act of the

Kingdom of Bhutan on 1st January, 2008 through a merger of the erstwhile Basochhu, Chhukha, andKurichhu Hydro Power Corporations. Further, Druk Green took over the Tala Hydropower Plant from

the Tala Hydroelectric Project Authority on 1st April, 2009.

In order to further proliferate its growth, Dagachhu Hydroelectric project, a joint venture wasconceived in the year 2006 and got incorporated in March 2008 under Companies Act of the Kingdom

of Bhutan as Dagachhu Hydropower Corporation Limited.

Today, Druk Green is one of the largest corporate bodies in Bhutan contributing to 20% of the GDP

and 45% of the direct revenues to the Royal Government of Bhutan.

Amongs t its many mandates, the two major missions of Druk Green are “to effectively and efficientlymanage hydropower plants”, which was the traditional role of the ers twhile Hydro Power Corporations,

and now more importantly “to take a lead role in accelerating hydropower development in the

Kingdom by developing new hydropower projects independently, through joint ventures, or throughany other arrangement with domestic and international partners ”. Considering these mandates and

especially with the plans of the Royal Government of Bhutan to develop an additional generationcapacity of 10,000 MW by 2020, Druk Green is set to grow in leaps and bounds within this decade

itself.

Given its present size and the expected huge growth and expansion in the size and scale of its

operations over the next decade, the already diverse and c omplex business processes andoperations will become even more demanding and arduous. Implementation of SAP ERP Solutions

is one of the initiatives that DGPC has taken up to address these and run the power plants moreefficiently. The SAP implementation project has been initiated with effect from 15th May 2010 with the

following vision and mission and objectives.

Vision:

To transform and leverage business processes of Druk Green and Druk Holdings and Investments

through the use of SAP s best practice.

Mission:

To implement SAP ECC 6.0 project in time with minimum customization through co-operation of all;

by giving prominence to larger objectives and to avail benefits of integration and industry bestpractice.

Objectives:

The primary objectives of the Project are as follows:

Integrate all business process across the organization, under single SAP platform withminimum interfaces.

Elimination of duplication of activities across business processes by capturing data at sourc e

point.

Develop central and sec ured MIS for better analysis of operations and decision-making

process.

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Improved responsiveness to changing business scenarios.

Develop history of various types of data for statistical analysis and decision-making systems

Enhance efficiency in Finance and Controlling s ystem, based on regularly updated data.

Reduction in inventory carrying cost through better inventory planning and management.

Achieve better Investment management by proper reporting sys tem.

Adopt best business practices, tak ing advantage of SAP best practices.

Common understanding and methodology of work, for majority of the processes, withinvarious departments, plants, units.

Form basic infrastructure of communication and networking for adoption of advancedbusiness software - SAP.

Improve on timely availability of MIS/ analytical reports

Remove present need for reconciliations of various databases.

Facilitate in compilation and generation of statutory reports as per requirement.

1.2 Business Blueprint Overview

A Business Blueprint documents the business process requirements of a company. The Business

Blueprint gives a general idea of how business processes could be mapped in one or more SAPSystems. The Business Blueprint documents in detail the scope of business scenarios, business

processes, process steps, and the requirements of SAP solution implementation.

The purpose of this document is to present a comprehens ive Business Blueprint document forFinancials and Controlling Module. This document also summarizes the findings of the Wipro

consulting team and DGPC team, with respect to SAP processes to be implemented at DGPC. Oncompletion of the blueprint, the consultants will determine the SAP functionality required to run the

DGPC business. The Blueprint presents a summarized perspective of functional business processesthat will be implemented.

Following activities were carried out during Project Preparation phase of the project;

CSBP-Current State Business Process Mapping

FSBP-Future State Business Process Mapping

GAP Analysis

CSBP & FSBP Workshops

The following activities have been covered in the business blueprint phase:

1. Organization structure finalization. : FSBP process definitions and identification with reference

to CSBP processes (attached is the matrix of CSBP vis-à-vis FSBP Mapping with the finalFSBP Codes and names of business proc esses)

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S. No. Attachment Description

1 CSBP-FSBP Link2_BP_FSBP_F ICO_0.

3.xls

2. FSBP discussion along with changes in existing Organization structure, standard reportsavailable in SAP.

3. Incorporation of comments from CTMS, BPOs, and DGPC management, wherever justified

and applicable.

4. Depiction of FSBP in the form of Flow Chart.

5. Gap discussion with CTMs and formulation of Gap removal / mitigation plans.

6. FRICE requirements discussion, prioritization and finalization.

7. Discussion of configuration blueprint document in the form of KEY DATA STRUCTUREattached as Configuration Values in this Busines s Blueprint Document.

The information gathered and documented in the Blueprint are sufficient for the team to go forward

into the Realization phase. However, it is critical that both the Consultants and DGPC team agree on

the scope of the project as presented in this doc ument. Acceptance - by both teams - is required tomove the project into the next phase.

Objective of this document :

1. To identify and document the configuration values applicable FSBP-wise post discussion withCTMs.

2. Have one comprehensive document with referenc e to capturing of Gaps and FRICErequirements.Brief about the module s standard functionalities,3. its integration with other modules, masterdata requirements and relevant organization structure.

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1.3 Financial Accounting

The Financial Accounting (FI) module component addresses the financial requirements of anorganization. It is used for the purpose of the external reporting as well as internal reporting. External

reporting is for external parties like Government Authorities, Creditors, Banks, and FinancialInstitutions etc. Internal reporting is used for the purpose of reporting to the management of the

company. It provides the following features:

Management and representation of all accounting data: All business transactions are

recorded with an unbroken audit trail from the financial statements to the individual

documents.

Open and integrated data flow: Data is available in real time within Financial Accounting.

Postings made in the sub ledgers always generate a corresponding posting in the General

Ledger.

All accounting relevant transactions made in Logistics are posted real-time to Financial

Accounting by means of automatic account determination. This data can also be passed on to

Controlling (CO). This ensures that logistical goods movements (such as goods receipts and

goods issues) are exactly reflected in the value-based updates in accounting.

Audit Trail: Each document created has its details stored in system. This provides the audit

trail.

mDecision aking: The systems give the real time information at all the point of time. This

plays a crucial role in the management reporting & strategic decision making.

Financial Accounting:

The Financial Accounting (FI) application component fulfils all the external reporting requirements thatmust be met by the organization whether national or international. The SAP FI application provides

the following features;

General Ledger (FI-GL)

Accounts Payable (FI-AP)

Accounts Receivable (FI-AR)

Bank Accounting (FI-BA)

Asset Accounting (FI-AA)

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General Ledger:

The central task of G/L accounting is to provide a comprehensive picture for ex ternal reporting and

accounting. Recording is done for all business transactions (primary postings as well as settlementsfrom internal accounting) in a software system that is fully integrated with all the other operational

areas of DGPC ensuring that the accounting data is always complete and accurate. AccountsPayable, Accounts Receivable, Asset etc., will be c ategorized as subsidiary ledgers.

Accounts Payable:

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

vendors . The system automatically triggers postings in response to the operative transactions in MM.

Accounts Receivable:

The Accounts Rec eivable applic ation component records and manages accounting data of all

customers with respect to the company. It is also an integral part of sales management. All postings inAccounts Receivable are also recorded directly in the General Ledger. Different G/L accounts areupdated depending on the transactions involved (For Eg: Receiv ables, Down Payments).

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Bank Accounting:

This component is used to handle accounting transactions that the Company processes with itsbanks. It includes the management of bank master data, cash balance management (Cheque and

DD), and the creation and processing of incoming and outgoing payments.

Asset Accounting:

The Asset Accounting component is used for managing and supervising fixed assets in the system. InFinancial Accounting, Asset accounting serves as a subsidiary ledger to the FI General Ledger,

providing detailed information on transactions involving fixed assets with respect to the company.

Withholding Tax:

SAP FI uses the standard functions for calculating and collecting withholding taxes. However,withholding tax come with additional functions for tax remittance, journal vouchers, creating

.withholding tax certificates, and preparing returns whic h will be useful to DGPC

1.4 Module Integration

Integration of Financial Accounting with other Components

Every posting that is made in the sub ledgers generates a corresponding posting to the assigned G/L

accounts. The basic concept of SAP integration is ; document once entered should not be enteredtwice anywhere in all the applications. As FI module is the important module and involves monetary

issues whether external or internal, all the documents in other modules pertaining to accounting willbe automatically updated in FI module.

The following are some of the integrations: -

Materials Management (MM):

Material Management is used to manage the inventory related transactions. All accounting-relevant

transactions with respect to the following will be made automatically in FI.

Goods receipt against the purchase order.

Goods issue against production order / process order.

Finished goods receipt.

Valuation of material as and when required

Invoice verification( The MM will park the invoice and Finance will post the invoice)

Sales & Distribution

All the sales bills shall be routed through S&D module to FI module in following sequence.

Sales order

Billing

Incoming payment

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Human Capital Management (HCM):

All accounting-relevant transactions with respect to the following will be posted automatically in FI.

Payroll, Allowances, Deductions, Employee contribution to welfare, etc.

Project System

All accounting-relevant transactions with respect to the following will be made aut omatically in FI.

WBS Elements

Cost settlement with respect to Project/WBS Element.

Plant Maintenance

All accounting-relevant transactions with respect to the following will be made automatically in FI.

Maintenance order

Cost settlement with respect to maintenance order (Settlement is being carried out by

Finance).

Integration within Financial Accounting (with respect to FI and CO)

Every posting that is made in the sub ledgers (Accounts Payable, Accounts Receivable & Assets)

generates a corresponding posting to the assigned G/L accounts. This ensures that the sub ledgersare always reconciled with the general ledger. Controlling (CO) and Financial Accounting (FI) are

independent components in the SAP system. The data flow between the two components tak es placeon a regular basis. Therefore, all the data relevant to costing flows automatically to Controlling from

Financial Accounting.

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2 ORGANISATION STRUCTURE

Enterprise Structure for DGPC

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Client(DHI)

Operating

Concern

(OP01)

DGPC Cost Controlling Area Controlling Area

Center Hierarchy (DP01) (DS01)

Chart OfChart Of Account Company Code Company Code Chart Of Account

Depreciation(3000) (DG01) (DSWF) (3001)

(3000)

Purchase Plants Sales Dstr.

Organizations (Profit Centers) Organisation Channel Division Personnel Area

DGPC DomesticBS01 BS01 Power BS01

2001 Sales

CH01 CH01 CH01ExportCOE

Sales

KU01 KU01 KU01SpotSpot

SalesSales

TA01 TA01 TA01

OthersDG01 DG01 DG01

Profit Centers

CO (Controlling)

FI (Finance)

MM (Material Management)

SD (Sales & Distribution)

HCM (Human Capital Management)

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Enterprise Structure for DHPC

Client

(DHI)

Operating

Concern

(OP01)

DHPC Cost Controlling Area

Center Hierarchy (DP01)

Chart OfChart Of Account Company Code

Depreciation(3000) (DH01)

(3000)

PurchasePlants Sales Dstr.

Organizations(Profit Centers) Organisation Channel Division Personnel Area

DH01

DHPC DomesticDH01 Power DH01

2002 Sales

ExportCOE

Storage Sales

Location

SpotSpotSalesCO (Controlling) Sales

FI (Finance)Others

MM (Material Management)

SD (Sales & Distribution)

HCM (Human Capital Management)

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2.1 Client

Client is the highest level in the SAP hierarchy.

Specifications or data which will be valid for all organizational units in all SAP applications are

entered at the client level, eliminating the need to enter this information more than once (e.g.

exchange rates).

Each client is a self-contained unit which has separate master records and a complete set of

tables and data.

A client key is used automatically in all master records in background, which ensures that

they are stored per client.

Users must enter a client k ey and have a user master record in the client in order to log on to

the system.

The Enterprise Structure in SAP Finance module consists of the following entities under Client:

Company

Company Code

Chart of Accounts

Chart of Depreciation

There will be one Client (DHI1) for DHI and DGPC.

2.2 Company

A Company represents a group of entities (one or more Company codes) in SAP. This entity is usedfor consolidation of accounts of multiple entities (Company Codes). All company codes within a

company can use the same operational Chart of Accounts and the same Fiscal Year breakdown.However, the company code currencies can be different.

2.3 Company Code

A Company Code represents an independent legal accounting entity in SAP. Balance Sheets and

Profit/Loss statements required will be created at the Company Code level. In other words, acompany code is an organizational unit for which a complete self-contained set of accounts can be

drawn up for external reporting purpose. The process of external reporting involves recording allrelevant transactions and generating all supporting documents required for financial statements.

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Company Code Company Code DescriptionDG01 Druk Green Power Corporation Limited ( DGPC)

DH01 Dagachhu Hydropower Corporation Limited (DHPC)

DSWF DGPC Staff Welfare Fund(DSWF)

2.4 Chart of Accounts (COA)

A Chart of Accounts is a classification consisting of a group of General Ledger (G/L) accounts under a

Client.

It provides a framework for the recording of values, in order to ensure an orderly rendering of

accounting data.

The chart of accounts contains the definitions of all G/L accounts in an ordered form.

The definitions consist mainly of the account number, account name, and the type of G/L

account, that is, whether the account is a P&L type account or a BS type ac count.

One or more Chart of Accounts can be created for the same Client

A Chart of Accounts can be used by one or more Company Codes.

The following COA will be maintained at company code level.

Chart of Accounts Company Code Description

3000 DGPC Chart Of Accounts

3000 DHPC Chart Of Accounts

3001 DSWF Chart Of Accounts

2.5 Group Chart of Accounts (GCOA)

The group Chart of Accounts contains the G/L accounts that are used by the entire corporate group.

This allows the company to provide reports for the entire corporate group.

There would be one group COA at DHI (Client Level) and all other COA would be mapped to groupCOA for the purpose of consolidation.

One group Chart of Accounts can be assigned to different charts of accounts as shown below:

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2.6 Chart of Depreciation

A Chart of Depreciation is a list of depreciation areas like book depreciation as per The CompaniesAct of the Kingdom of Bhutan, 2000. Chart of Depreciation is created in order to manage various

statutory requirements for the depreciation and valuation of assets. These Charts of Depreciation areusually country-spec ific and are defined independently of the other organizational units. A Chart of

Depreciation, for example, can be used for all the company codes in a given country. A single Chartof Depreciation will be assigned to the company code DG01 and separate for DHI. The 2000 & 3000

Chart of Depreciation will consists of the following depreciation areas:

01- Book Depreciation as per Income Tax Act of the Kingdom of Bhutan, 2001.

10- Depreciation as per Company Policy.

15- Depreciation as per Bhutan Electricity Authority, Tariff Determination Regulation, 2007.

20- Depreciation as per IFRS.

2.7

Profit Centers represent separate areas of operation/locations within an organization and can be usedacross company codes.

They are balancing entities which are able to create their own set of financial statements for internal

purposes. Movements in value entered in Financial Accounting are assigned to Profit Centers. Thisentity is used for segmental reporting by drawing P&L statement and Balance Sheet for a segment

(typically a line of business or geographical location).

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Following are the Profit Centers for DGPC,

Profit Center Description

BS01 Basochhu Hydropower Plant

CH01 Chhukha Hydropower Plant

KU01 Kurichhu Hydropower Plant

TA01 Tala Hydropower Plant

DG01 Corporate Office

2.8 Controlling Area

The controlling area is the business unit where cost accounting is carried out. Controlling Areadelimits the company s managerial accounting operations. Organization structure is replicated in the

controlling system. The company code and cont rolling area uses identical chart of accounts, currency& business area. Cost centers, internal orders, profit centers are used to classify the controlling area.

All inter organizational allocations refers to objects within the same controlling area.

DGPC will have DP01 as its Controlling Area.DSWF will have DS01 as its Controlling Area.

2.9 Cost Centers

Cost Center in SAP is an organizational unit within a company that is used to track where costs

occurred within the organization (i.e., as a cost collector).In other words, Cost Centers arerespons ibility areas for costs within the organization. Cost Centers are logical units or functional areas

or locations of a company.

Before cost center is created, a hierarchical s tructure (called Standard Hierarchy) is set up andassigned to the controlling area. Once created, it cannot be deleted or changed in Controlling Area.

The Cost Center is the lowest node of the hierarchical structure.

A standard hierarchy (DGPC) is to be assigned to the controlling area DP01 and cost centersare created considering the company’s overall operational structure.

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3 MASTER DATA

3.1 General Ledger Master

The General Ledger master data contains data that control General Ledger postings.

General Ledger master contains;

GL Naming Conventions

GL Number Ranges

Types of Accounts

Description and

Control Data

3.1.1 General Ledger Naming Convention

In DGPC, the naming convention of GL Accounts is done in such a way that the user can identify

whether the GL A/c is Asset or Liability or Income etc . as shown below:

1. 1000000000 : Asset2. 2000000000 : Liabilities

Owners’ Equity3. 3000000000 :4. 4000000000 : Income

5. 5000000000 : Expenses6. 6000000000 : Clearing Accounts

7. 9000000000 : Initial Uploads

Transactions will be processed in the FI module using G/L acc ounts grouped under Chart ofAccounts. Groups of accounts are as under;

S. No General Ledger Groups Number Range1 Assets: From ToCash 1010110010 1010119999

Bank of Bhutan 1010120010 1010129999

Bhutan National Bank 1010130010 1010139999

Central Bank Of India 1010140010 1010149999

Druk Punjab National Bank 1010150010 1010159999

Tashi Bank 1010160010 1010169999

Short Term Investment 1010210001 1010229999

Inventories 1010300001 1010309999

Sundry Debtors 1010410001 1010429999

Prepaid Expenses, Deposit & Accrued Interest 1010510001 1010549999

Advances 1010610001 1010629999

Long Term Investments 1020110001 1020129999

Equity Investments 1020200001 1020209999

Land 1030100001 1030109999

Civil Structures 1030200001 1030299999

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Plant & Machinery 1030310001 1030329999

Tools & Safety Equipment 1030400001 1030499999

Other Assets 1030500001 1030599999

Intangible As sets 1030600001 1030699999

PFD- Civil Structure 1040100001 1040199999

PFD- Plant & Machinery 1040210001 1040229999

PFD- Tools & Safety Equipment 1040300001 1040399999

PFD- Other Assets 1040400001 1040499999

PFA-Intangible Assets 1040500001 1040599999

Capital Work in Progress 1050100001 1050199999

Losses and write off 1060100001 1060199999

2 Liabilities From ToCurrent Liability 2010100001 2010199999

Employee Related Liabilities 2010200001 2010299999

Provisions 2020110001 2020129999

Domestic Loan 2030100001 2030199999

Foreign Sovereign loan 2030200001 2030299999

Foreign-Commercial 2030300001 2030399999

Foreign-Multilateral 2030400001 2030499999

Interest Accrued But Not Due 2030500001 20305999993 Owners Equity From ToShare Capital 3010100001 3010199999

Reserves & Surplus 3010200001 3010299999

4 Income From ToElectricity Revenue 4010100001 4010199999

Income from Short Term Investment 4020110001 4020129999

Income from Long Term Investment 4020210001 4020229999

Other Income 4020300001 4020399999

5 Expenses From ToPurchase of Energy, Wheeling Charges 5010100001 5010199999

Running & Maintenance of Civil Structure 5010210001 5010219999

Running & Maintenance of Plant & Machinery 5010220001 5010229999

Operation & Maintenanc e Expenses 5020110001 5020119999

Depreciation-Civil Structures 5020210001 5020219999

Depreciation-Plant and Machinery 5020220001 5020239999

Depreciation-Tools & Safety Equipment 5030230001 5030239999

Depreciation-Other Assets 5020240001 5020249999

Amortization 5020250001 5020259999

Employee Remuneration & Benefits 5020310001 5020319999

Human Recourses Development Expenses 5020320001 5020329999

Staff Welfare 5020330001 5020339999

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General Administrative Expenses 5020410001 5020419999

Int-Domestic loan 5020510001 5020519999

Int-Foreign-Sovereign Loan 5020520001 5020529999

Int-Foreign-Commercial Loan 5020530001 5020539999

Int-Foreign-Multilateral 5020540001 5020549999

Environment & Social Impact Management 5020600001 5020699999

Prior Period Expenses 5030100001 5030199999

6 Clearing Accounts From ToClearing Accounts 6010100001 6010199999

7 Initial Uploads From ToInitial Accounts 9010100001 9010199999

Points to be considered with respect to G/L accounts are:

Master records for each G/L account will be created and maintained at each company c ode

level.

The master record contains information and controlling parameters which control the entry

and processing of business transactions in that G/L account.

G/L accounts will also be used for pos ting transactions from other modules of SAP.( MM /

HCM/ SD, Etc)

Segments in the General Ledger Master record:

Chart of Accounts Segment

Company Code segment

Chart of Accounts Segment

In this segment, specifications that apply to the entire G/L account master record are captured. These

include:

The G/L account number and G/L account name.

Whether the account is a balance sheet account or an income statement account .

Data that controls the creation of a master record in a company code, such as the account

group.

Company Code Segment

The information, which is specific to a particular company, is maintained in the Company Code

segment of the General Ledger Master record. This data controls how one enters and processesbusiness transaction data in the appropriate account as well as how the account is managed within a

Company Code.

The following are some of the specifications which will be made for each G/L account:

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Currenc y - account currenc y (BTN)

Reconciliation Account for Account Type - to s pecify the control accounts for the sub ledgers .

Open Item Management - will be maintained for an account that requires open item

management. Eg. Bank sub-accounts, GR/IR Clearing account, etc., are maintained in Open

Item Management.

Line Item Display - will be retained for accounts for which line items are to be stored

separately. Eg. Bank main accounts, all expense accounts, all balance sheet accounts,

excepting accounts which are of the nature of reconciliation accounts.

3.2 Asset Master

The Asset Accounting module contains master records that control how bus iness trans actions arerecorded and posted to the account. The Asset master record also contains all the data required to

ompany s Fixed Assets.manage c

Following details are maintained in the Asset Master:

General Master Data

This part of the master record contains concrete information about the fixed asset.

The following field groups exist:

General information (description, quantity, etc.)

Posting information (for example capitalization date etc.)

Time-dependent assignments (for example cost center, custodian, etc)

Information on the origins of the asset

Insurance data

Depreciation areas

Data for Calculating Asset Values

Depreciation terms can be specified in the asset master record for each depreciation area in the Chart

of Depreciation. In order to make these specifications, the master record contains an overview of thedepreciation areas. In addition, there is a detailed display available for each depreciation area. If there

are depreciation areas that are not needed for a specific asset, it is possible to deactivate thesedepreciation areas at the asset level.

Fixed assets can be structured or classified in the Asset Accounting component using asset classes.

The items in the balance sheet are generally used to define these asset classes. Asset classes aredefined for all clients and contain key control parameters, such as number assignment, account

determination and screen layout.

Each asset class is maintained with different depreciation areas as required for DGPC. Once theasset classes are defined, different asset master records will be c reated under the asset classes.

Each c lass will be assigned a different number range to give different numbers to assets. Assetclasses and number ranges are in attached sheet;

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A sset Class.xls

3.3 Vendor Master

The AP component contains Vendor master records that control how business transactions are

recorded and posted to the account. Creation and maintenance of Vendor Mas ter for materialsuppliers and other type of vendor is documented in MM module. Master data for service vendors will

be created on similar lines. Specifications as made in master records are used:

As default values when the items are posted to account. For example, the terms of payment

as specified in the master record are defaulted for document entry.

For processing business transactions for instance, bank details and the payment methods

(cheque or bank transfer, for example) are required for automatic payments.

For work ing with master records, certain users can be prevented from accessing an account

by setting up authorization groups.

In addition, line item display and open item management are defined automatically for each vendoraccount.

In DGPC, it is proposed to create separate Vendor accounts for employees. Separate special GL

indic ators will be created to track EMD, Security Deposit from vendors.

Vendor Reconciliation Account

Vendor Reconciliation account is the G/L account for a group of vendors in FI-AP module. The

number of Vendor Reconciliation accounts will depend on the grouping of the vendor in FI.

When posting items to a subsidiary ledger, the system automatically posts the same data to thegeneral ledger. These reconciliation accounts ensure that the difference balance of G/L accounts and

subsidiary ledger is always equal. This means that balance sheets can be drawn up at any timewithout having to trans fer totals from the sub ledgers to the general ledger. A reconciliation account

should be specified in every vendor master record.

TDS Codes

TDS tax codes will be assigned to the individual vendors, wherever applicable, for processing

invoices/payment and relevant tax deductions. Withholding tax codes will be maintained for differentrates of TDS. Multiple tax details can also be assigned to a Vendor. Relevant tax code will be

selected at the time of posting of the individual line item.

3.4 Customer Master

All business transactions are posted to and managed by means of accounts. Master record is to be

created for required accounts. The master record contains data that controls how businesstransactions are entered in the account and how posting data is processed. In the master record, all

the data that is needed for conducting busines s with the customer can be maintained.

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Customer master records are used by both the Financial Accounting Department (accounts receivable

.processing) and the Sales & Distribution

Customer Reconciliation Account

Customer Reconciliation account is the G/L account for a group of customers in FI-AR module. Thenumber of Customer Reconciliation accounts will depend on the grouping of the customers in FI.

Customer Payment Terms

Terms of payment are conditions established between business partners to settle the payment ofinvoices. The conditions define the invoice payment due date and the cash discount offered for early

settlement of the invoice. Within SAP, some common payment terms have been predefined; newpayment terms may be created as required. Payment terms enable the system to calculate a cash

discount and invoice due date.

In order to perform this calculation, the system needs the following three data elements i.e., Baselinedate, cash discount period and cash discount percentage rate. When processing a document, the

payment term is entered in order for the system to calculate the required conditions of payment. Thepayment term will be defaulted if it has been assigned on the master record, or can be entered or

changed by the user during transaction processing.

Payment terms 0001 (Immediate payment) will be defined in SAP and assigned to individualcustomers.

Customer Vendor Cross Clearing Transactions

If a customer who is also a vendor, at the time of processing a clearing transaction, such as an

incoming/outgoing payment or account maintenance, the system also selects the open vendor itemsautomatically, provided that the vendor number is entered in the customer master record and the

Clearing with Vendor indicator has been set. The same rule applies for a vendor that is also acustomer during a clearing transaction.

3.5 Bank Master

The information about a bank that is required to conduct business transactions is mentioned in BankMaster. This information is stored centrally in the SAP System.

The house bank and account ID are in attached sheet:

Bank Master.xlsx

For each house bank, several bank accounts can be maintained. The bank accounts will have a G/L

account attached to it and the currency of payment. For each bank , there are three different G/Laccounts;

–XXXXXXXX0 Main A/CXXXXXXXX1 – Incoming A/C

–XXXXXXXX2 Outgoing A/C

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3.6 Cost Elements

A cost element is an item in a chart of accounts, which is used within controlling area to record thevalue-assigned consumption of production fac tors.

Cost elements are of two types: The Primary Cost Element and Secondary Cost Element.

Primary Cost or Revenue element must have a corresponding GL account in Financial Accounting.

Business will create the primary cost elements at the time of creating the G/L account with the

appropriate cost element category (i.e Primary Cost (1), Revenue (11), Sales Deduction (12) etc.)

Secondary c ost element exists only in CO and is used to allocate costs within CO. Secondary costelements are strictly for internal controlling postings like assessments and settlements.

4 BUSINESS PROCESSES

4.1 Configuration Settings

The purpose of this chapter is to document the global configuration settings in Financial Accounting

for the DGPC business. These settings control the transaction entry and the dependant controls inSAP across all the modules.

Parameter Settings

Posting of transactions in SAP require the following settings:

Currenc y

Fiscal Year in which the transaction is to be posted

Fiscal year variant for determining the posting periods

Document Types

Document Numbering

Document Pos ting Keys (debit/credit)

Posting Period Variant to determine the open and c lose periods

Tax Deducted at Source (Extended Withholding Tax )

4.1.1 Currency

For each Company Code, a currency must be specified. Accounts are managed in the CompanyCode currenc y. All other currencies are indicated as foreign currency. The system converts the

amounts posted in a foreign currency into the Company Code (Local) currency. The currency definedin the Company Code is k nown as the local currency within SAP.

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DGPC will use Bhutan Ngultrum i.e. BTN as Local Currency.Controlling area currency will be BTN & Group currency will also be BTN.

4.1.2 Fiscal Year and Fiscal Year Variant

To separate business transactions into different periods, a fiscal year with posting periods has to be

defined.

The fiscal year is defined as a variant which is assigned to the Company Code. Standard

fiscal year variants are already defined in the s ystem and can be used as templates. The

fiscal year variant contains the definition of posting periods and special periods.

Special periods are used for postings which are not assigned to time periods, but to the

process of year-end closing.

The fiscal year will cons ist of maximum of 12 posting and 4 special periods.

A fiscal year is defined as fiscal year variant which is then assigned to Company Code. One fiscal

year variant can be used by several Company Codes. The following are the available options fordefining fiscal year variants:

Fiscal year same as calendar year.

Fiscal year differs from calendar year (non-calendar fiscal year). The posting periods can

also be different to the calendar months.

The fiscal year variant that would be used by DGPC will be K4 (Jan to Dec + 4 Special periods).

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4.1.3 Document Type

The document type controls the document header and is used to differentiate the business

transactions to be posted, e.g. Customer invoice, Vendor payments, etc.

Document types are required in SAP to create and post financial documents (e.g. Bank

Payment Voucher, Receipt Voucher etc.).

Document types are defined at the client level and are therefore valid for all company codes.

The standard system is delivered with document types which can be used, changed, or

copied.

SAP has the standard Document Types, which will be adopted by DGPC.

The document number range defines the allowable range in which a document number must

be positioned and cannot overlap.

The document number range has to be defined for the year in which it is used.

The system stores the last used document number from the number range in the field “current

number” and takes the subsequent number for the next document

The following document types will be used:

No.Document Document Range Number NumberType Description Object Range(From) Range(To)

SA G/L Account Document 1 100000000 199999999

SB G/L Account Posting 2 200000000 299999999

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SK Cash Document 3 300000000 399999999

AB Accounting Document 4 400000000 499999999

AA Asset Posting 5 500000000 599999999

AF Depreciation Posting 6 600000000 699999999

AN Net Asset Posting 7 700000000 799999999

CC Cross Company Code 8 800000000 899999999

IU Initial Uploads 9 900000000 999999999

DA Customer Document 10 1000000000 1099999999

DR Customer Invoice 11 1100000000 1199999999

DG Customer Credit Memo 12 1200000000 1299999999

WN Net Goods Receipt 13 1300000000 1399999999

DZ Customer Payment 14 1400000000 1499999999

PR Price Change 15 1500000000 1599999999

RB Reserve for Bad Debt 16 1600000000 1699999999

TR Travel Posting 17 1700000000 1799999999

ZR Bank Reconciliation 18 1800000000 1899999999

WL Goods Issue/Delivery 19 1900000000 1999999999

KA Vendor Document 20 2000000000 2099999999

RE Invoice - Gross 21 2100000000 2199999999

KR Vendor Invoice 22 2200000000 2299999999

KZ Vendor Payment 23 2300000000 2399999999

KG Vendor Credit Memo 24 2400000000 2499999999

WA Goods Issue 25 2500000000 2599999999

WE Goods Receipt 26 2600000000 2699999999

WI Inventory Document 27 2700000000 2799999999

IZ Imprest Advance 28 2800000000 2899999999

KN Net Vendors 29 2900000000 2999999999

EG EMD For Goods 30 3000000000 3099999999

ES EMD For Services 31 3100000000 3199999999

EW EMD For Works 32 3200000000 3299999999

GG Guar Adv Paymt Goods 33 3300000000 3399999999

GS Guar Adv Paymt Servc 34 3400000000 3499999999

GW Guar Adv Paymt Works 35 3500000000 3599999999

PG Per.Guaran for Goods 36 3600000000 3699999999

PS Per.Guar for Service 37 3700000000 3799999999

PW Per.Guaran for Works 38 3800000000 3899999999

PY Payroll Document 40 4000000000 4099999999

CH Contract Settlement 41 4100000000 4199999999

EU Euro Rounding Diff. 42 4200000000 4299999999

EX External Number 43 4300000000 4399999999

KP Account Maintenance 44 4400000000 4499999999

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ML ML Settlement 45 4500000000 4599999999

RA Sub.Cred.Memo Stlmt 46 4600000000 4699999999

RN Invoice - Net 47 4700000000 4799999999

UE Data Transfer 48 4800000000 4899999999

ZC Cash Journal 49 4900000000 4999999999

ZH Payment By Cheque 50 5000000000 5099999999

ZP Payment Posting 51 5100000000 5199999999

SU Adjustment Document 52 5200000000 5299999999

ZS Project Settlements 53 5300000000 5399999999

4.1.4 Posting Key

Posting Key controls Debit or Credit account indicator for each line item.

The posting key also describes the type of transaction that is entered in a line item and

allowable account type, which will be entered for the respective line item.

SAP provides certain predefined posting keys. These predefined posting keys will be used

wherever applicable. For every posting key, properties control the entry of the line item.

For each Posting Key, a reversal-posting k ey may be defined. The reversal-posting key is

used to reverse a document posted in Financial Accounting.

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Some of the Posting Keys are:

Posting keys Transaction Debit/Credit Account ReversalTypes

01 Invoice Dr D 12

02 Reverse Credit Memo Dr D 11

09 Special G/L Debit Dr D 19

11 Credit Memo Cr D 02

19 Special G/L Credit Cr D 09

21 Credit Memos Dr K 32

29 Special G/L Debit Dr K 39

31 Invoice Cr K 22

32 Reverse Credit Memo Cr K 21

39 Special G/L Credit Cr K 29

40 Debit Entry Dr S 50

50 Credit Entry Cr S 40

70 Assets Debit Dr A 75

75 Assets Credit CR A 70

Standard Account Types in SAP are as follows:

S-General Ledger

A-Assets

K-Vendors

D- Customers

M- Materials

DGPC will use the Standard Posting Keys and the Account Types wherever applicable.

4.1.5 Extended Withholding Tax

As SAP standard system allows defining two different tax types in withholding tax namely invoiceposting and payment posting, the DGPC requirement can be achieved with SAP standard

functionality. The tax collected will be deposited in a separate GL accounts through automaticassignment, so at the time of pos ting, automatically tax account will be updated. All the withholding

settings can be done by using SAP standard system so that the requisite forms will be automaticallyupdated and available for printing.

For Company Code DG01, following sections of Income tax Act, 2001 will be covered in Extended

Withholding Tax of SAP:

Section Description18 TDS deducted on Domestic Contractors/Suppliers

18 TDS deducted on Non Domestic Contractors/Suppliers

12 TDS on employees are bas ed on slabs

12 TDS on House Rent

13 TDS on Div idend

The following diagram explains the flow of TDS (Deduction, Remittance and Certificate Printing)

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4.2 General Ledger Postings

The General Ledger forms the back bone of all the financial systems. General ledger is the main

accounting record of a business which uses double-entry bookkeeping. It captures all business

transactions in FI and through integration with other operational areas of the company ensures thataccounting data is always complete and accurate.

General ledger is a comprehensive financial management solution that enhances financials controls,

data collec tion, information access and financial reporting. It is the central repository of all theaccounting information of the organization as on date. Most of the transactions will be handled in

respective sub-ledgers (Accounts Payable, Accounts Receivable, Assets) and subsequentlyconsolidated and posted to General Ledger. However, the module shall provide specific functions ofpassing journal entries (Manual, Provisional, Recurring and Reversal Journals) and posting them,

which will be purely rectification and provisional in nature.

Essentially, the general ledger serves as a complete record of all business transactions of DGPC

business. Actual individual transactions can be check ed at any time in real-time proc essing bydisplaying the original documents, line items, and transaction figures at various levels.

Features of GL Accounting

GL Account maintenance

Open item clearing

Foreign currency valuation

Recurring journal entry

Accrual/ reversal posting

Balance Sheet & Profit & Loss statements.

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Features of SAP FI New General Ledger :

1. Document Splitting

Each business transaction entered is analyzed during the document splitting procedure. In

this analysis, the system determines for each line item whether it is an item that will remainunchanged or an item that is to be split. In order that document splitting recognizes how the

indiv idual document items are to be handled, user needs to classify them, by assigning themto an item category. The item category is determined by the account number.

• Revenue account

• Expense account

• Bank account/cash account

• Balance sheet account

For DGPC, document splitting is based on the Profit Centers.

2. General Ledger Reporting

The SAP GL Account Information System, based on Drilldown Reporting, provides for adialog-oriented information system. It allows for the evaluation of the dataset, based on all

characteristics contained in the data description. GL account transaction figures and the

financial statement versions serve as the primary data source for the General LedgerInformation System.

In addition, Financial Statement analysis allows for the comparison of financial statements

from two time periods, and the determination of the differences in the individual financialstatement items. The report is based technically on the financial statement version. Financial

statement analys is can be carried out for the following time periods:

• Year to year comparisons

• Half-year comparisons

• Quarterly comparisons

• Monthly comparisons

In addition to financial statement analysis, a Balance Display report (Trial Balance) is also provided.

This report facilitates the evaluation of transaction figures.

3. Parallel Accounting

In the new General Ledger, one can display the parallel accounting using parallel accounts(as in R/3) or using parallel ledgers. Parallel accounting allows performing parallel accounting

by managing several parallel ledgers for different accounting requirements. The FI standardfunctions and reports are available for all parallel ledgers.

4. Integration of Statutory and Management Reporting

In General Ledger Accounting, it is possible to generate internal management reporting inparallel with statutory reporting. For this purpose, the Profit Center Accounting functions are

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integrated with General Ledger Accounting. Furthermore, financial statements can begenerated for any dimension (such as profit center).

5. Profit Center wise Balance Sheet ( Plant wise)

With the help of using the new 'Document Splitting' function (online split), financial statements

can be created at company code level and profit center / plant level. For each document, thesystem then creates a zero balance for the relevant entity. In DGPC, each plant is considered

as a profit center.

To facilitate this, Zero balancing acc ounting should be activated (It is a Clearing A/C).

Features of SAP FI General Ledger:

A number of accounting transactions will be carried out by way of automatic ac count

assignments. For example, inventory account is updated and a provision created in GL at

the time of raising a GR in Materials Management.

Automatic and simultaneous posting of all sub-ledger items in the appropriate general

ledger accounts (reconciliation accounts).

Simultaneous updating of general ledger and cost accounting areas.

Real-time evaluation of and reporting on current acc ounting data, in the form of account

displays, financial statements with different financial statement versions and additional

analyses.

Detailed Profit and Loss/Balance Sheet reporting, allowing for review by profit centre, by

account, by month, to prior year

Cash Journal will be used for posting cash transactions. Cash Journal will be maintained at

locations wise or plant wise.

Postings in previous periods in FI can be done to the extent the posting periods are open.

However, in MM & SD, postings can only be done for maximum two months that are open.

4.2.1 Master Data

GL account master records contain the data that is always needed by the general ledger to

determine the account's function. The G/L account master records control the posting of accounting

transactions to G/L accounts and the processing of the posting data. Prior to postings to a G/L

account, creation of master record in the system for the account is required.

G/L account master records are divided into two areas so that Company Codes with the same chart ofaccounts can use the same G/L accounts.

Chart of Accounts Area

The chart of accounts area contains the data that is valid for all Company Codes, such as the

account number.

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Company Code Specific Area

The Company Code specific area contains data that may vary from one Company Code toanother, such as the currency in which the account may be posted.

The following objects play a central role in the creation and management of master records:

Chart of accounts

Account group

The account group is a summary of characteristics that control the creation of master records.

These can be used to determine which fields must or can be filled when creating the master record.

In addition, it can be used to predefine a number interval, from which the numbers for the master

records should be chosen. Acc ounts that require the same master record fields and use the same

number interval are created within the same account group.

The G/L account master record in the Company Code contains company code-specific

information which c ontrols the entry of data to this account and the management of the account.

The account group determines :

The number interval from which the account number is selected when a G/L account is

created.

The screen layout for creating G/L accounts in the company code-specific area.

While defining an account group, it is also required to determine the number interval in which theaccounts of this group must lie. When creating a G/L account, the system checks whether the number

entered lies in the predefined number interval.

For each account group, a screen layout is determined, that is, it determines which fields are relevantfor this group of G/L accounts.

Account Currency:

When creating a G/L account, the currency must be defined in which the account is to be maintained.

This defines the following:

The currency used for postings made to this account

The currency in which transaction figures are updated and the account balance is displayed

Specify the account currency in the company code area of the G/L account master data. This allows

keeping the G/L account in the local currency of each company code.

Note: - DGPC will use Bhutan Ngultrum i.e. BTN as Local Currency.

The system automatically uses the local currency that has been defined when creating the companycode as the default value. This allows posting to the G/L account in any currency. When making a

posting in a foreign currency, the amount is translated into the local currency. The transaction figures

are kept as follows:o In the local currenc y, that is, the total of all the amounts posted in the local currency

o In the individual currencies, that is, the total of all the amounts posted in various

currencies.

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Balances in Local Currency:

When creating a G/L account in a Company Code, it requires deciding whether the transaction figuresshould only be kept in the local currency for this account. This indicator has to be set for clearing

accounts that will be used to clear line items in various currencies with one local currency amountand without posting any exchange rate differences that may occur.

Note: - Do not set this indicator for A/P A/R reconciliation accounts.

i) The indic ator usually set for the following accounts:

Cash discount clearing accounts

Clearing acc ounts for goods receipt / invoice receipt

ii) The indic ator is usually set for the following balance sheet accounts:

Accounts without open item management in which no foreign currencies are managed.

Reconciliation Account for Account Type:

This field is used to indicate G/L accounts as being reconciliation accounts. For each sub ledgeraccount , there should be at least one reconciliation account in the general ledger. When there is

posting to an account in the sub ledger, the system automatically posts to the correspondingreconciliation account. The reconciliation accounts is defined by specifying in the G/L account master

record the account type (such as fixed assets, vendor or customer) for which the account is to beused. In this way, the account can only be assigned to accounts in the corresponding sub ledger. It is

required to set the assignment of the sub ledger account to a reconciliation account in the masterrecord of the sub ledger account. Manual posting is not possible to reconciliation accounts.

Open Item Management:

If “Open item management" indicator is set in the master record for an account, the line items in thisaccount is marked as open or c leared. The balance of an account with open item management is

equal to the balance of the open items. General ledger accounts are kept with open itemmanagement if there is need to check whether there is an offsetting posting for a given business

transaction.

Line Item Display:

If the "Line item display" indicator is set in the mas ter record for an account, all line items that have

been posted to this account are displayed if they have not been archived. Line item display is used todisplay the document line items from the account. For line item display, the system lists all the line

items for an ac count.

Field Status Group:

This field is to be defined outside the master record. Mark the field status for each field or field group

under a field status group. Then assign the field status group to individual G/L accounts in the G/Laccount master records. Field status groups are independent of company code, attaching instead to

the field status variant. A separate variant exists in each company code for field status groups in thestandard system. The name of the variant is identical to the Company Code. Each Company Code is

assigned to the variant with the same name.

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A field may have one of the following statuses:

Field Status Description

Required entry This field requires an entry when creating a G/L account

Optional entry One may make an entry in this field when creating a G/L account

Display The field is displayed, but one cannot make an entry in it.

You should not use this status, since the fields should be available for entrywhen creating a G/L acc ount.

Suppressed The field is not displayed, that is, one does not see the field when creating aG/L account.

Automatic Postings:

When posting documents, the system automatically adds line items to manually entered items as

needed. For example, the tax amount, the cash discount amount, and profits or losses from foreigncurrency trans lations (exchange rate differences) can all be calculated and posted automatically by

the system. Accounts that have been decided to which these automatic postings will be made canonly be posted to automatically . This will prevent any manual postings to such an account.

Tax Category:

In tax accounts, one can specify the type of tax on sales/purchases (input or output tax) that can be

posted to the account. In rare cases, it is useful to assign a certain tax code to an account. Tax code

can be entered in the master record in this case. Only this tax code can be used when posting to thisaccount. If a G/L account is not tax relevant, no specification is required to be made in this field.

Posting without Tax Allowed:

If this indic ator is selected, no tax code needs to be entered when posting to this account. If a tax

code is entered, it is checked according to the tax category for this account. This indicator is used iftaxable and non-taxable postings are to be entered to an account at the same time. In such a case,

normally own tax code is set up to allow for non-taxable transactions.

4.2.2 Solution in SAP

DGPC needs to prepare independent Financial Statements for the business unit. Apart from this , the

Financial Statements need to be separated at each plant level; each plant is treated as profit center -which means Financial Statements of each unit will be prepared at profit center level. Apart from the

profit center wise Profit & Loss and Balance Sheet, the financial statement is required to be preparedas per other statutory requirement. This requirement can be met by the process known as Leading

and Non Leading Ledgers.

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Leading Ledger

The Leading Ledger is bas ed on the main reporting requirement of the company. All the posting to theCompany Code will be automatically posted to leading ledger unless an accounting document is

specifically posted to the ledger group consisting of only non-leading ledger.

In case of DGPC, one Leading Ledger with K4 as Fiscal Year variant and currency BTN is created.

Non-Leading Ledger (Parallel Ledger)

The Non-Leading ledgers are parallel ledgers to the leading ledger. Non-leading ledger is activatedfor the other reporting purpose. Any adjustment entries required as per other reporting purposes have

to be made in ledger group which consists of only non-leading ledgers.

4.2.2.1 GL Posting

Any journal entry can be posted in SAP through transaction code F-02 or FB50. The debit and credit

postings to the GL accounts can be made using the posting keys 40 and 50 respectively. Fortransactions involving other types of accounts, relevant posting keys to be used. Manual postings

cannot be done for GL Accounts, which are reconciliation accounts, or which are marked for postingautomatically only.

o Presently, DGPC is using account group, sub account group concept to post the general

ledger transactions. In addition to that, other activities like Accruals, Journal entries, Payrollaccounting, Inventory accounting, Revenue recognition, Inter unit transactions, Bank

Transactions and Cash transactions are carried out through GL accounts.

o The SAP GL process does not use sub account group concept, instead the sub accountgroups will be defined in reports.

o SAP GL process also takes care of all existing GL process of DGPC and in addition, it has

integration with MM, SD, CO and HR modules. Purchases, sales, inventory postings, payrollpostings are tightly integrated with GL and other modules and entries are reconciled always.

All inventory accounts and payroll accounts have account determination and GL accounts aredefaulted during posting of these transactions.

o Presently, DGPC is using inter unit transactions for transfer of funds to respective bank

accounts of plants from corporate office, for receipt of payment from customer but revenuerecognized in respective plants, for transfer of material from one plant to other plant. In SAP,

the inter unit transactions are addressed using profit c enter clearing accounts concept andwill replace the existing process of manual monthly reconciliation of inter unit transactions by

corporate office and plants.

o Presently, foreign currenc y valuation entries are not done automatically for DGPC. In SAP,

foreign currency valuation for foreign currency GL balances, foreign currency open items ofvendor and customer are done automatically.

o Transactions in foreign currency are recorded using the exchange rate prevailing at the date

of transaction. In SAP, exchange rate table can be maintained in the system and as andwhen transaction happens, system c an pick the exchange rate from the table automatically.

Also user can overwrite the value at the document posting level. If the rate is not available atthe date of transaction, the rate prevailing prior to the date of transaction will be considered.

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o All items of expenses / incomes relating to prior year, exceeding Nu. 5,000 in each case notcharged in the accounts in the earlier year due to errors or omission, are accounted for under

prior period adjustments account.

o Revenue expenditure on R&D is expensed in the year in which they are incurred. Items ofcapital nature are included in Fixed Assets.

The following are some of the transactions that will be operated through General Ledger

Posting sub-module in SAP:

–o Cash Accounting Receipts of cash (withdrawals from bank or refund of advances fromemployees etc), payments to employees for expenses like travel expenses, reimbursement ofconveyance expenses, advances etc.

o Interest accruals for fixed deposit and bonds , loans and advances will be covered in GL

posting. Investment analysis will be an offline process under FICO Module but can be an

online process under FSCM (Financial Supply Chain Management) and when DGPC makesdeposit against investment, accounting will be done through GL posting. Transactions onmaturity, encashment or reinvestment of investment are also routed through GL posting.

o Income from sale of tender documents, income from services, rent from employee or others

and income from hire c harges (Machineries) can be booked as GL posting. For rent from

other, customer master will be created firs t and then income will be booked directly in FI.

o LD charges calculation will be an offline process and it will be posted through normal GL

posting. At the time of MIRO, it can be done with a credit memo or as a separate GL posting.

o Exchange rate difference will be calculated by the s ystem automatically and posted to the

exchange rate gain/ loss account automatically by the system. For this, DGPC has tomaintain exchange rate table in system. Also, user can maintain the currency value at time ofdocument posting.

o Payments on wheeling charges c an be done at Corporate Office with delivery plant wise and

this will be routed through GL posting directly.

o Expenses identification like Running & Maintenance, Advertisement, CSR, A uditor s fee,

Dividend to DHI, etc will also be routed through GL posting. Advertisement expenses, if

related to bringing the asset into ex istence, will be c apitalized to the asset through WBSelement etc. at the time of GL posting.

o For telephone expenses, payables are created and payment will be made on receipt ofloyee sverified telephone bills. For emp personal calls, the same will be recovered from

employee salary at the time of payroll run.

o Adjustment and rectification entries.

o Clearing of G/L open item managed accounts for. e.g. TDS Accounts, Outstanding liabilities.

TDS posting will be done at the time of outgoing payments and posting to the correspondingGL accounts will be made by the system automatically.

o Prepaid expenses (Insurances).

o Payroll entries lik e deductions, allowances and employee c ontributions.

o Reconciliation and finalization of accounts.

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The values posted to the G/L accounts will appear in the trial balance which will provide financialstatements like Balance Sheet, Profit and Loss Statement.

The following diagram explains the process flow for GL Posting.

I n vo i ce s W it hWo r k O rd e r

A t t a ch m e n t B i ll s

N OV e ri f i ca t i o n

Yes

Pa r k t h eGL A cc o u n t Am o u n t Co s t Ce n t e r

Do cu m e n t

Pa r ke d

R e vi e w t h e Pa r ke d Do c u m e n t No .

Do c u m e nt 0 0 1

Ch a n g e s I fr e q u ir ed

S y st e m A u t o m a t ic a ll y P o s t t h eEx ch a n g e Ra t e

E xc h a n g e Ra t e Dif f e r en c e .Dif f e r e n ce

Us e rs ca n a l so c h a n g e t h e r a t e a t(I f a p p li ca b l e )

P o st i n g L e ve l

P o s t Th e Do c um e n t

Pa r ke d

Do c u m e n t No .

0 0 1

4.2.2.2 Parked Documents

An incomplete document may be parked and then posted at a later date; this may be done by the

same or a different user. Generally, the documents are parked when the user is waiting for anapproval from his superior. Subsequently, the user can book the same as a G/L document.

One advantage of parking is that data in documents can be evaluated online for reporting purposes

from the moment they are parked, rather than having to wait until they have been completed andposted. A list of park ed documents can be generated in the SAP for the benefit of the

supervisor/manager. The document can then be checked and corrected by the user. This documentcan then be posted in the General ledger. Parked documents can be modified or deleted beforeposting.

The documents can be parked by the accountant or dealing staff and posted by the supervisor afterverification.

4.2.2.3 Posting with Clearing

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There are some GL accounts that need to be maintained as open item. Ex amples of GL Account to

be managed in open items are-

- Bank clearing accounts,

- Clearing accounts for goods receipt/invoice receipt

- Salary clearing accounts.

By posting with clearing, system clears the open item in the account.

4.2.2.4 Document Reversal

It is possible for a user to make an input error. As a result, the document created will contain incorrectinformation. In order to provide an audit of the correction, the user must firs t reverse the document in

error, and then capture the document correctly.

The system provides a function to reverse G/L, A/R and A/P documents both individually or

in mass.

When reversing a document, a reversal reason code must be entered to explain the reason

for reversal. The reason c ode also controls if the reversal date is allowed to be different

from the original posting date.

DGPC can use standard reversal reasons or can define its own reasons.

Documents with cleared items cannot be revers ed. The document must first be reset.

Some standard Reversal Reasons;

01 - Reversal in current period02 - Reversal in closed period

05 - Accrual06 - Asset transactions reversal

07 - Incorrect document date

However, it needs to be noted that reversal of any document will affect the allocation cycles in case ifthese processes are completed. It will be required to re-run all these cycles once again after reversing

the document.

The following diagram explains the process flow for document reversal;

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GL Account Reversal

Request for GLReversal

Reverse The R eve rsa l D oc um en tNOVerify YES Document N o. 00 2

No.001

N e w D oc um en t N o .New GL Park the0 03

Transaction. document

Review thePark

Document

N e w D oc um en t N o .Save as

Changes NO 0 03Complete

Yes

MakeChanges

4.2.2.5 Sample Document

This is a template accounting entry. This helps the user in having a pre- entered accounting entry.The document and posting dates can be changed at the time of posting the document. Such sample

transactions may be used for repetitive kind of transactions like conveyance expense to save time atuser level.

For DGPC, similar entries can be identified for using this sample document feature in SAP.

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4.2.2.6 Recurring Entries

For pos tings that occur on a regular bas is, such as payments for rent or interest, legal fees, and

property taxes, the recurring entry program can be used to have the necessary documents generatedautomatically.

The recurring business transactions must be stored in the system as recurring entry original

documents.

Each recurring entry original document contains the date of the first and last posting, the

frequency at which posting should be made, and the date of the next planned posting.

The recurring entry program must be started at regular intervals within a specified period.

The program selects all recurring entry original documents in which the date of the next

posting falls within the s pecified period, and then generates a batch input session.

When the session is processed, an FI document that corresponds to the original document

is posted, and the date of the next posting is changed accordingly in the recurring entry

original document.

DGPC can use this for booking of recurring expens e like monthly rental, monthly remittance to DHI,

etc.

4.2.2.7 Interest Calculation / Interest Indicator

The Bank s, Institutions and the Lenders from whom loans are availed will be created as Vendors. InSAP, Vendors or GL for loan will be created for interest calculation, so interest calculation will be

automated by using the interest calculation functionality and by assigning the interest calculationindic ator to the Vendor master or GL master. Interest indicators required by DGPC need to be created

in SAP.

Interest will be calculated on monthly basis at an agreed rate of interest. From the systems it is alsopossible to calculate the interest on a daily basis for the month and on posting the s ystem will post the

last date on which the interest run was done in the master data of the loan account in General ledger.

4.2.2.8 Foreign Currency Valuation for Open Items

This process performs the revaluation of all foreign currency open items, primarily in customer and

vendor accounts, using the month end rate. This process carries out foreign currency valuation foraccounts 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 forthe 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 andvaluation 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 currenc y forms the basis of the valuation. The exchange rate profit or loss fromthe valuation is pos ted to a separate expense or revenue account for exchange rate differences.

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4.2.2.9 Items Accruals & Reversal of Provision

A provision document will be created for entering provision entries. At the time of entry of a provision,

document date for reversal will be entered. Entry of reverse document date facilitates reversalprogram to pick up such transactions to be reversed. The provision will be made with the combination

of G/L accounts and cost centers or internal order. Reversal of the provision will be performed on thestipulated date.

4.2.2.10 Closing of Open Periods (Monthly and Yearly)

In FI, define 1 to 12 for posting periods and 13 to 16 for special posting periods. Special postingperiods are mainly used for Audit entries purpose. In FI, all the periods or specific periods can be k ept

open. For each and every Company Code, these periods can be opened through the dedicatedposting period variant. Usually, only the current posting period is open for posting, all other postingperiods are closed. At the end of this posting period, the period is closed, and the next posting period

is opened.

Special periods can be kept open for closing postings during the period-end closing.

4.2.2.11 Closing Fiscal Year for Asset Accounting

The program blocks the current fiscal year to further posting to assets. Once the fiscal year is closed,

no transactions can be posted or values changed within Asset Accounting

4.2.2.12 Balance Carry Forward

Account balances are carried forward from one fiscal year to the next fiscal year by using the standardSAP carry forward program after the accounts are finalized.

The balance sheet accounts are carried forward onto themselves (T-Code: F.16) . The income

statement accounts are carried forward into retained earnings accounts.

4.2.2.13 Closing Procedures

For DGPC, January to December is identified as financial year with 12 accounting period and 4

special periods and closing activity will happen every month. Monthly closing will be happening inrespective plants for plant specific activities & some closing activities will happen in a centralized

manner, like depreciation run etc. The clos ing operations are to be performed on a monthly orquarterly and yearly basis. Some of the Closing Procedures are explained below:

Complete Bank Reconciliation (FF67) .

Confirm that a sum of Inter Unit balances is Zero.

Ensure that all documents related to MM & SD have been entered in system.

Ensure that all billing documents are released to accounting.

Foreign Currency Valuation for Open Items.

Accruals and Reversal of provisions (FBS1 & F.81) .

Close MM period (MMPV) .

Carry out GR/IR clearing (F.13) transaction.

Depreciation Run (AFAB) has been carried out for the month.

Settlement of Internal Orders to AUC (KO88)

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Review of Parked Documents(FBV0)

Close FI posting period after the month end closing activity is over (OB52)

Calculate & post Balance Sheet adjustments.

Balance carried forward (F.16) .

Open FI posting periods (For New Year).

Document Number Ranges for New Year

–Month End Process:

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–Year End Process:

4.2.2.14 Cash Transactions

Cash transactions are handled through Cash Journal in SAP. Each cash journal should be assigned

to one G/L account, which represents the cash journal in the general ledger. Cash transactions will be

recorded based on an authorized payment document received by the Cas hier. Cash Journalfunctionality will be used for handling cash transaction at each plant level. The Cash Journal is like a

cash book in which system automatically calculates and displays the opening and closing balancesand the receipts & payments total. There can be any number of Cash Journal under one Company

Code.

Following are the standard transactions in Cash Journal.1. E: Expense

2. R: Revenue3. B: Cash transfer from cash journal to bank

4. C: Cash transfer from bank to cash journal5. D: Customers-incoming/outgoing payment

6. K: Vendors-outgoing/incoming payment

In DGPC, Cash Journal will be maintained at plant level.

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The following diagram explains the process of cash journal ,

Cash Journal Or Imprest

E : Exp e n se

R : R ev e nu e

B : Ca s h tr a n sfe r c a sh j ou r n a l to b an k

C : C as h tr a n sf e r Fro m b a nk t o ca s h jo u rn a lPr op o s al fo r R ec e ip t o f D : C us to me r s- in co m ing / o ut g oin g pa y me n t

Imp r e st Imp r e st K : Ve n do r s- o u tg o in g /in co mi ng pa y me n t

I n cu r En te r i n Ca s h Jo u r n al1. Emp l oy ee T ol e ra nce L i mi t fo r Po sti n g.

Ex p e ns e s A) .E xp e n se s

R e ce ip t o f Up d a te Ca s h Jo u r na lRe f un d in gNO Ch e q u e A) . Ca s h Tr a ns fe r Fr o mSa v e Th e( Cl os in g )

Ba n k to C a sh Jo u rn a l.Ca s h jo u rn a lYESN O

APPRO VAL

App ro val ofCa sh Me m os

YES

Sa n c tio n /

Ap p ro v e O r de r

CHEQ UECl os e C a sh

Ve r ify An d S a ve P r ep a r eJo u r na l.

A s Co mp le t e Ch e q u eA) . Ca s h tr a n sf er

Fr om c a shR e le as e o f P re p a re

jo u rn a l t o Ba n kImp r e st C h e q ue

Pa r k th e Im pr e st

G L

D o cu me n t

Po s t Imp r es t G L

Online Process

Off- line Process

4.2.2.15 Financial Statement Version

The financial statement version forms the basis for creating a balance sheet and profit and loss

statement, as well as a structure for entering GL planning values. In DGPC, the financial statement isprepared in compliance with Generally Ac cepted Accounting Principles and the relevant provisions of

the Companies Act of The Kingdom of Bhutan, 2000, etc. By using the financial s tatement version,the following points are considered:

Grouping of the GL accounts & creation of hierarchy.

Items to be included in the financial statements

The sequence in which these items are listed on the statements

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The item texts and the language in which they should be printed

The charts of accounts and the individual ac counts that are relevant to the Balance Sheet

and Profit and Loss statement (accounts can be assigned to particular balance sheet items

depending on whether the balance is a debit or a credit)

Totals/subtotals that are to be presented on the statements (these may be displayed as

group totals or graduated totals).

While framing FSV, ranges may be assigned so as to facilitate automatic updating of FSV on any new

GL account creation.

The financial statement version can be maintained as per the requirement.

4.2.2.16 Reporting

SAP information system provides the following reporting

Account Balances- The balanc es can be seen at account level for the period. This also

includes balance carry forward, debit for the period, credit for the period and accumulated

balances.

Totals and Balances

Trial Balance

4.2.3 FSBP Link

S. Main Process CSBP FSBP No. Process DiagramsNo. No.

2.A1 Income from FixedDeposits 2.A 2.A Annexure 1_FSBP.VSD-

2.B2 Income from Bonds 2.B 2.B Annexure 1_FSBP.VSD-

2.C3 Interest on Loans andAdvances 2.C 2.C Annexure 1_FSBP.VSD-

4 Investment on Shares 2.D 2.D

5 Income from Services 2.E 2.E Annexure 1_FSBP.VSD- 2.E

6 Rent from Employees/ 2.FOthers 2.F 2.F Annexure 1_FSBP.VSD-

7 Income from Hire charges 2.G 2.G Annexure 1_FSBP.VSD- 2.E

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8 Income from Sale of tender 2.Idocuments 2.I 2.I Annexure 1_FSBP.VSD-

3.B,3C9 Income from LD 2.J 2.J Annexure 1_FSBP.VSD-

10 Income from AccountingAdjustments 2.K 2.K

11 Exchange rate difference 2.L 2.L Annexure 1_FSBP.VSD-11

3.A12 Wheeling charges 3.A 3.A Annexure 1_FSBP.VSD-

13 Running & maintenanceExpenses 4.A 4.A

4.B14 Telephone & Utilities 4.B 4.B Annexure 1_FSBP.VSD-

15 Purchase of Energy 4.C 4.C

7.B16 Interest on Loan 4.D 4.D Annexure 1_FSBP.VSD-

17 Corporate Social 4.E 4.E Annexure 1_FSBP.VSD- 4.EResponsibility(CSR)

18 Advertisement expenses 4.F 4.F Annexure 1_FSBP.VSD- 4.F

4.G19 Auditors fee & expenses 4.G 4.G Annexure 1_FSBP.VSD-

20 Prior period expenses 4.H 4.H

4.I &21 Insurance 4.I 4.I Annexure 1_FSBP.VSD- 4.I.A

4.J22 Dividend payment to DHI 4.J 4.J Annexure 1_FSBP.VSD-

23 Prepaid Expenses 6.G 6.G Annexure 1_FSBP.VSD- 4.IA

6.H24 Deposit with Others 6.H 6.H Annexure 1_FSBP.VSD-

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25 Advance releases 6.I 6.I Annexure 1_FSBP.VSD- 6I

26 Share capital 7.A 7.A

27 Withdrawal/repayment of 7.B,7.B3Loan 7.B 7.B Annexure 1_FSBP.VSD-

3.D,28 EMD 7.C 7.C Annexure 1_FSBP.VSD- 3.D2

8.C29 Transfer of Fund 8.C 8.C Annexure 1_FSBP.VSD-

30 Cash Journal Accounting 9.B 9.B Annexure 1_FSBP.VSD- 9.B

1031 Tax Accounting 10 10 Annexure 1_FSBP.VSD-

32 Annual Closing 12.A 12.A

4.2.4 Integration Requirement

FI - CO Integration

Relevant Profit & Loss GL accounts are maintained as cost elements in Controlling. Further, these

cost elements are linked to Cost Centers and Profit Centers. The creation of cost elements andrevenue elements ensures that all transactions posted to those GL accounts in FI also have a

corresponding entry in CO. For Balance Sheet accounts, a default Profit Center will be attached to theGL Account so that all transactions flow to Profit Center and this allows creating a trial balance at a

Profit Center level.

FI - MM Integration:

MM and FI are integrated by way of automatic account assignments to GL accounts for materialmovements types, which have an impact on financial information . Valuation classes are entered in

the material master for the purpose of providing automatic account posting. For all movement types,internal transaction key is assigned and GL accounts are assigned against the valuation class for the

transaction key.

FI- HR Integration:

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In SAP, Payroll will be done through payroll HR Module.GL Account for basic salary, benefits, gratuityetc will be assigned to each of the wage type in payroll system through s ymbolic accounts assignment

and s ys tem will automatically identify the GL accounts when month end payroll posting happen. Alldetails regarding the payroll data will be available in HR Module and available at any point of time.

–The following diagram illustrates FI HR integration;

Salary

Ge n e ra t e &ST AR T Pa y r o ll R u n I n tim a tio n to F I E n d

Pr in t P a y sli p

Au t om a ticS ala ry A/C D r. Pa y me n t T o Sala r y Pa ya ble A/ C Dr .

Po s ti ng inT o Sala r y Pa ya ble s T o Ba nk O ut go in g A /CEm pl o ye e s

FI

TD S & H e a lthB a n k L o a n s & PF & N PP F Ot h e rC on t r ib u tio n s List o fSW S L o a n De d u c tio n s

I n tim a tio n to Em plo ye es , In t ima t io n Fr o mPa ym en t,Ba n k B a n k

et cOu t Go in g Ou t Go in g Ou t Go in g Ou t Go in g

P a ym e n t Pa y me n t Pa y me n t P a ym e n t

Ch e q u e C h e q ue C h e q u e Ch e q u e

P a ym e n t to Pa y me n t

Ch e q u e Em pl o ye e s In t ima t io nC h e q u e

N o te ;-

1 . In c o me S ta t e me n t is su e d t o E mp lo y e e a t th e Ye a r e n d .

Ch e q u e 2 . N PP F R e la te d Re m itt a n ce s a r e d ir e c tly d e p o s ite d wi th T he

Ba n k s ( NP PF A /C ) a nd On ly C o p y o f Ch a lla n + L is t s en d to NP PF

3 . Sa la r y p a ym e n t to a n Em pl o ye e c a n b e d o ne in to Mu lt ip le A /C

C h e q ue

4.2.5 Description of Improvements

S.No Description of improvements RemarksParking and Holding the documents. Park and Post option is one of the best options, as

this has the facility to store the document with

1 document details for any number of documentsand also got flexibility to tak e reports on the

parked documents.

On line currenc y conversions will For foreign currency transactions, DGPC has to2 happen at the time of posting the maintain different currencies and exchange rate

document. At the time of clearing, types.

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exchange rate variation will be

accounted. Debits/Credits will beposted to exchange rate differences for

loss/gains

Automatic clearing program will be run3 in test mode for GR/IR accounts before

final run is made.

4 Document history with all referencesare available in the s ystem

Recurring entries, Recurring entries

5 are business transactions in FinancialAcc ounting that are repeated regularly.

Cheque can be printed in the system

6 and the same can be used forpayment.

Automatic posting of all employee

7 related transactions in real time at thetime payroll run in HR Module.

8 Integrated posting from sub modules.

9 Tax Reporting and IFRS reporting.

10 Online cash register (Cash Journal)

Postings for previous periods in FI can

11 be done to the extent the postingperiods are open.

4.2.6 Process Control

Following are the internal control processes:

Controls CommentsThe system check s authorizations and tolerances. An User Authorizations

employee might only be authorized to post to certainaccounts within one company code. Tolerances for each

employee or for a group of employees can be defined.Tolerances include a maximum cash discount percentage

rate, a maximum amount per customer or vendor line itemand a maximum amount per document.

After the verification, the Supervisor posts the document. To operate as per DOP(Delegation ofPower/Role Matrix)

For each document, System generates document No. Internal Document Number Ranges.

System identifies a document with the document number, To have document history for future

Company Code and fiscal year. reference

Authorisation to transactions in SAPChecks relating to authorization for pos ting and amount

can be decided and validations forbased check s for cash postings are to be provided.

amount based limits for posting would

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Controls Commentsbe incorporated.

The authorisation to Reverse document will be as perDelegation of Power. User Authorizations

Users can Upload the soft copy of bank advice or standing

orders into DMS for later reference.

4.2.7 Description of Functional Deficits / Gaps

Ratio Analysis is not available in SAP Standard. But it can be done with help of BI Module.

Recognition of Long term investment and Short term investment.

System cannot recognize whether the investment is long term or short term investments

under FICO Module and therefore, user has to select manually and post into right GL

accounts. This however, can be addressed through FSCM (Financial Supply Chain

Management).

4.3 Account Payables

In the SAP s ystem, Accounts payable sub-module records and manages the accounting data relating

to all vendors including employees. It is als o closely integrated with the Material Management. Anytransaction in procurement, which has a financial implication, would automatically be reflected in

accounts payable as well as the general ledger. Also, different GL accounts would be affected basedon the nature of the trans action involved (payables and down payments, for example). The systemcontains due date forecasts and other standard reports that can be used to monitor open items.

The FI module is integrated with the MM module and the account determinations are defined to

enable automatic postings in Financ ial Accounting for transactions in MM having a financialimplication.

The brief overviews of the trans actions that happen in MM module are:

1. Requisition

2. Purc hase Order

3. Goods Receipt / Invoice Receipt (GR/IR)

4. Invoice Verification (done by Accounting Department)

Features of Accounts Payable

Vendor master maintenance.

Advance payment track ing & settlement of advances (Down payment).

Non- P.O Invoic e Processing.

Credit / Debit memo Processing.

Automatic and manual payment program.

Open item & GR/ IR Clearing.

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Balance confirmations, account statements, and other forms of reports to suit requirements in

business correspondence with vendors.

Vendor – Customer cross adjustments.

4.3.1 Master Data

The AP component contains Vendor master records that control how business transactions arerecorded and posted to the account. The master record is used not only in Accounting but also in

Materials Management.

1. General DataThis is data that applies to every purc hase organization in the company. The general area

includes, for example, the customer's name, address, language, and telephone data.

2. Company Code DataThis is data that is specific to an individual Company Code. Company Code data includes, for

example, the reconciliation account number and terms of payment.

3. Purchase Organization Data

This is data relevant to the purchas e organizations and distribution channels of the company.Data that is stored in this area includes, for example, data on order processing, shipping, and

billing.

Following Company Code details are maintained by Finance for DGPC;

General Details Name, Address etc.

Reconciliation Account for This Reconciliation Account is the General ledger for the Accounts

the Vendor. Payable sub-ledger.

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Withholding Tax Details TDS details for the Vendor are maintained here

Payment Terms Terms of Payment (Eg. 001 for Immediate payment)

House Bank If the Vendor is always paid through the same Bank, then this field

needs to be maintained.

Customer Code If the Vendor is also a Customer

Payment Methods The mode of payment through which the Vendor will be paid.

Account Group

Each account must be assigned to an account group. The ac count group ensures that only therelevant screens and fields are displayed and ready for input for each of the customer s different

partner functions. For example, the address, communication, and bank data fields are omitted for theaccount group for one-time accounts.

The account group controls:

The type of number assignment used for the account number

A number interval from which the acc ount number is chosen. The system uses the account

number to identify the customer.

Which fields are displayed when entering or changing customer master data and whether

or not an entry must be made in these fields (field status)

Whether the account is a one-time account.

Vendor Account Groups

ZDOM - Domestic Vendors

ZFRN - Foreign Vendors

ZEMP - Employee Vendors

ZONT - One Time Vendors

ZIND - Indian Vendors

ZINT - Internal Vendors

Payment Methods

Bank Advice

DD/ TT

Cheque

E-payment

Cash / LC etc.

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Payment Terms

Terms of Payment can be defined for each vendor which will be updated in the Vendor Master andwill be defaulted in the PO. Where the payment terms have been changed in the invoice level, the due

dates will over-ride the original due date (calc ulated based on Purchase Order). Terms of payment willdefine the credit period, due date and cash discount, if applicable. The due date will be calculated

from a baseline date as per the payment terms, which will be either of the following dates:

Document Date

Posting Date

In payment terms, terms for installment payment can be defined. And this installment terms will differfrom vendor to vendor and P.O to P.O. The installment payment terms can be assigned to vendor

master or P.O.

For e.g.:

10 % - At the time of Purchase Order80 % - On disposal Inventory / Asset

10 % - On Final Delivery

Numbering Master Records

Each master record has a unique number. This number is required to call up the master record or to

post to the customer account. The account group determines the type of number assignment usedand the valid number range for a customer master record. The customer master record number is

assigned either internally or externally. Internal numbers are assigned by the system, whereasexternal numbers are entered manually when creating the customer master record. External numbers

can be alphanumeric.The system ensures that the numbers assigned are always unique.

With internal assignment , the s ystem selects the next number from the interval.

With external assignment , the number is assigned externally, the system prevents from entering the

same number twice.

Reconciliation Accounts

A reconciliation account needs to be specified in the master record so that all postings made to a

subsidiary ledger are also posted to the general ledger. When posting of items to a subsidiary ledger,the SAP system automatically posts the same data to the general ledger at the same time. Each

subsidiary ledger has one or more reconciliation accounts in the general ledger. This means thatfinancial statements can be drawn up at any time without having to transfer totals from the sub-

ledgers to the general ledger.

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Withholding Taxes

TDS to be deducted from the Vendors will be handled by withholding taxes functionality. The TDS

certificates and challans can be printed. Withholding tax codes will be maintained for different rates ofTDS. Following TDS rates are applicable and will be created as withholding tax codes and will be

maintained in the Vendor Master.

TDS Rec. Description Tax Surch Edu.Sec. Type Rate arge Cess18 TDS deducted on Domestic Contractors/Suppliers 2%

TDS deducted on Non Domestic

18 Contractors/Suppliers 3%

12 TDS on employees are bas ed on slabs

12 TDS on House Rent 5%

13 TDS on Dividend 10%


Postings made in Accounts Payable are simultaneously recorded in the General Ledger, wheredifferent G/L accounts are updated based on the transac tion involved (payables, utilities, down

payments and so on).The vendor master record is used not only in Accounting but also in MaterialsManagement. By storing vendor master data centrally and sharing it throughout the organization, it

eliminates the process of entering the same data again and again. The process of AP will start from

Invoice Verification, Advance Payment, Services Payments, Direct Payment and will end once thepayment is made.

o Presently, DGPC is procuring materials, consumables, tools, capital items, etc and alsomaking payment to vendors & contractors. Payments are releas ed based on the payment

terms in purchase order or agreement.

o DGPC is also making direct payment towards electricity charges, telephone charges etc.

o In SAP, all purchase related transactions should be routed through Materials Managementand are integrated with FI Module and invoice is booked by Finance through logistic Invoice

verification for DGPC.

o Vendor master will be created for POL and revolving fund and the advance payment will beposted with special GL transactions.

o Vendor Customer relation will be created between plants for the purchase of energy from oneplant to another plant.

o Invoice verification is done against the GRN and PO number by Finance. Once the invoice isverified, it will be available for payment. If any advance is outstanding against the vendor,

system will prompt during verification.

o TDS is deduc ted at the time of invoic e booking or outgoing payment. Part payments can be

made if required.

o All other direct payments are booked directly in Vendor bill booking transaction and paymentwill be released after mak ing necessary statutory deductions for which tax codes are

maintained in vendor master.

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4.3.2.1 Vendor Down Payment

Advance payments will be made according to the terms of payments with the vendor. The advancepayments made to the vendor will be tracked as distinct from the normal payments made to the

vendor. The posting for down payments will be carried out to a G/L account other than the standardGeneral Ledger account for the vendor called as special G/L account.

The following are the Special GL Indicators identified for DGPC;

Reconciliation Special Description SpecialA/C GL G/L

Indicator2010100006 2010100001 EMD-Works/Goods/Services(Noted Item) E

2010100006 2010100001 EMD-Works/Goods/Services(D/C) D

2010100006 1010620003 Down Payment Request F

2010100002 1010620001 Down Payment Request F

2010100006 2010100001 Guarantee Received G

2010100006 1010620003 Advance to Vendors A

2010100002 1010620001 Advance to Employees B

2010100006 1010620002 Advance to DHI - Dividend C

2010100006 2010100001 Security Deposit H

2010100006 1010520001 POL I

2010100006 2010100001 PG-Works/Goods/Servic es (D/C) K

2010100002 1010620001 Imprest Advances to Employees M

2010100006 2010100001 Guarantee Received (D/C)` J

2010100006 2010100001 PG-Works/Goods/Servic es-NOTED O

2010100006 1010629999 Advances to Others R

The descriptions for above GLs are as below;

1010520001 Deposits for POL

1010620001 Advance-Employees1010620002 Advance-Dividend

1010620003 Advance-Suppliers/Contractors1010629999 Advance-Others

2010100001 Security Deposits2010100002 O/s Lia. Employee

2010100006 Sundry Creditors

Down payment Request and Payment of Advance:

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A Down payment request is rais ed by the authorized person requesting for payment. Based on therequest, a down payment may be released to the particular vendor and request item is cleared. Down

payment request is a noted item special General Ledger account which will not be displayed in the

.Balance Sheet

Process Flow:

Down payment request F-47

Down payment F-48

Invoice F- 63

Down payment clearing F-54

Payment and clearing F-53

The accounting entries to be passed for recording such transactions are as follows:

Vendor A/C (Spec ial G/L Indicator )………Dr. xx ,xxx

Bank a/c………………………..……………xxTo Outgoing ,xxx

On receipt of invoice from the vendor and on booking of the expense, the down -payment is cleared

off against the payment to the vendor. The open items chosen for processing would include the

Special G/L transactions regarding that particular vendor to whom the down-payment has been

made.

4.3.2.2 Invoice booking & settlement of advances

Invoice is a document received from an invoicing party containing the payments to be made based onbusiness transactions performed in Purchasing (Fixed assets, consumables & services,

inventory).Invoice verification is done by Finance after receipt of invoice from Vendor. Invoice isentered with reference to the PO and GRN. Liability to the Vendor is created at this point of time. At

the time of Invoice verification the system will prompt the user if any advance payment exists.

In case, TDS already deducted at the time of Down payment, it will be adjusted later at the

time of payment.

At the time of GR (Goods Receipt) - (MIGO), updates in MM,

Inventory A/C…………….. Dr. xx,xxx

………………………… xx,xxxTo GR/IR A/C

At the time of Service entry in MM;

) Dr…..xx,xxxExpenses A/C (for expense related services

To GR/IR A/C…………………………………….xx, xxx

Invoice Verification (MIRO);

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The document will be parked under MM Module and posted by FI Module after verification,

GR/IR A/C…………………………..Dr. xx,xxx

To Vendor A/C……………………… ……x x,xxx

4.3.2.3 Outgoing Payment (Vendor Payment)

Outgoing payments are made to vendors using the document type defined for payments. In case of

any down-payments made to the vendor, the same is adjusted at the time of booking outgoingpayment by choosing the special G/L open items for that particular vendor and clearing the same.

By using the SAP standard functionality, all the cheque payments can be managed. The typical

procedure under SAP with respect to cheque will be;

a) Defining the cheque lots for each and every house bank of DGPC business

b) Entering the vendor invoice.

c) Entering the vendor payment by clearing the open item created by invoic e.

d) Attach cheque to the payment document number generated in step (c).

e) Check the cheque register to see the cheque updation.

Automatic Payment:

In SAP, automatic payment program generates payment for all vendors whose payment is due on

date. In addition, it has got the feature of blocking the vendor payment for any valid reason andmakes other payment related to the vendor. It has also got the advantage of printing cheque for

multiple vendors at a time. Finally, the FI postings will also be done by the system automatically.

To create automatic payment program, several configuration steps need to be maintained, which willhave details of house bank, acc ount id, rank ing orders, maximum payment limit, payment for Special

GL transactions, etc. This will be configured during realization phase.

Manual Payment Run :

Here, the user will have to manually select the parties to whom payment has to be made. TDS willalso be deducted if not already deducted at the time of invoice verification. This transaction will be

executed using SAP transaction code F-53 or F-58 . The transaction F-53 will be used when the userwants to post the payment transaction but does not want to print cheque.

In SAP, there is a feature to record the cheque number for the payment document in case of manual

cheque preparation. The user will attach the cheque number to the payment document through FCH5 .

The transaction F-58 will be used when the user wants to post the payment transaction and alsoprints cheques for the vendor.

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The entry passed will be:

Vendor A/C Dr. xx,xxx

To Outgoing bank A/C xx,xxx

To TDS A/C xx,xxxx

4.3.2.4 Tax Deducted at Source (TDS)

Vendor account will be assigned with one or more TDS code, if applicable. This TDS code will be thedefault TDS code for all the transactions with the vendor. A user can however, change the TDS code

during the transaction entry. This is provided to ensure correct deduction of tax in cases where morethan one TDS rate is applicable to the same vendor due to different nature of transactions.

TDS deducted during the period has to be remitted to the Government/RRCO. The same needs to be

processed in SAP wherein all TDS entries posted will be debited and bank will be credited. In SAP,the above process is termed as challan update. Subsequently to challan update, information relating

to bank details needs to be captured which is called as bank challan update.

Printing of TDS Certificates

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The following diagram explains the process of Accounts Payable;

Accounts Payable – Overview

V e ndo r M at er i alS TA R T

M as t er Dat a M a s te r D at aB y t he Co nc er n ed Di v is io n

C h e c kS end T o Co m pet en tN O

P O C r eat io n A v ail abl eB u d g e tA ut hor i ty f or A ppr o v al

A va i la b ilit yYE S

P . O t o S upp lie r

I nv en to r y C heq ue / D D/Is s u e In v oic e T DS Ce r ti fi c at e

D eli v er y E t c E ND

Re c eip t O f P o s t G ood s GRRe c eiv e s t he

I nv o ic e & Ot he r V er if ic a ti on R ec ei pt s D oc um e ntD eli v er y 1. In v ent or y A / C D r

D oc s ( M I GO )T o GR / IR

2 . G R / I R A /C D r .C heq ue / D D/ T o V en dorO ut G oi ng

L C/ TT /In v oic e P ay m en tE - pay m e ntV e r if ic at io n 3 . V en dor A /C Dr .

T o B an k( M I RO )

N OChe c k B a nk / Req ues t fo rP e r fo r m anc e P er f or m an c e S ec ur i ty /

G ua r ant ee De duc t Fr o m t he B i llP ar k i ng

YE S

A dj us t A g ain s t Do wnP ay m e nt & I nt er es t

Cha nge s I f

Re qui r edA u to m at ic P os t ing o f T DS

No te : -S y s te m S h ows t he

Ch ec k all P a y m ent te r m sP os t in gI nv o ic es Du e

in c lud ing B a nk & P e r fo r m anc e

G uar a nt ee be fo r e r ele as in g th epa y m ent .

Che c k ing o f LD C lau s e

Do c um en t No .

N ot e: -P os t ing

O r ig ina l Doc u m ent s to b e M ain ta ine d wit hF in anc e

Dom es t ic T DS Ce r ti fi c at eY E S

D oc um e nt N o. V end or s

TD S C er t if ic at e f or Dom e s ti c V e ndo r sNO

T DS Rem i tt an c e TD S C er t if ic at et o RRC O

4.3.2.5 Process Flow for Non GRN Base Purchase

This process is related to passing of invoices in finance module where material managementdepartment is not involved. Invoices that will be routed through FI include Auditor s remuneration,

insurance payments, subscriptions, telephone expenses, etc. These invoices will be pass ed throughF-63.

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Process Flow:

The respective Department will approve the document for expenses.

The Finance Department verifies the document & updates the payables a/c i.e. creates a

liability.

The system prompts the user in case an advance exists for the s ervice.

Finance processes the payment after adjusting the advance.

The cheque printing process would be manual / automatic based on requirements and

specifications.

Flow of Journal entries in SAP:

1. At the time of booking the expense

Expenses A/C Dr x,xxxx.

To Vendor A/C x,xxxx

2. At the time of outgoing payment

Vendor A/C Dr xx,xxx

Vendor (Advance) A/C xx,xxx

Outgoing Bank A/C xx,xxx

TDS A/C xx,xxx

4.3.2.6 Advance to Employees

In SAP, each employee is treated as vendor and is grouped under employee vendor group. Thisvendor group is basically to identify and process transactions related to employee vendors. The

employee numbers are identified by HR and are part of HR blue print documentation.

Generally, the advance payment request is approved by the competent authority. The advances to

employees are tracked separately with Special G/L Indicators using the Accounts Payable sub ledger.For this purpose employee will be created as a vendor.

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The following diagrams illustrate the advance release and settlement of Travel & Medical

claims;

Travel Management

Advance Actual Claim

1. Na m e & P er s onal Nu m ber1. N a me & P e rs o n al N u mb e rCr eat e Tr a ve l 2. T r ip Dat e & T im e2. Tr ip Da t e & TimeReque s t 3. T r ip Des t ina tio n & Rea so n S ubm is s i on of3. Tr ip De s tin a ti on & Re a s on

4. Re quir e d T r ip A dv anc e A c t ual T our4. Tr ip Ad va n c e Ta k en

Repor t 5. M ile a ge Cl ai m6. A ct u al To u r C a lim

N O

S y s tem gen er at ed

A ppr ov a l Y ES e- m ail no tif ic at io n t o

HR & FIA ppr ov al

S y s t em g ener at ed Ded uc t Fr o me -m a il not if ic at ion T ic k et B o ok ing S a lar y

1. N a me & P e rs o n a l N u mb e rS y s tem gen er ate d 2. Tr ip Da t e & Time

3. Tr ip De s tin a ti on & Re a s o ne- m ail no ti fi ca ti on4. R e q u ire d Tri p Ad v a n ce

N OIf A dv a n ce > P r epa r ea c tu a l cla im s Cheq ue/ A dv ic e

ORA dv anc e E mp lo ye e Ve n d or A/ C D r . Ye s

To B an k A /CP ay m ent

Re im bur s e

fr o m E m ploy e e

P r epa r e N OTE: -Ba n k Ad v ice Se n t to B a nk D ir e ct ly a n d C h e qu e Se n d toCheq ue/ A dv ic e

E mp lo y ee

O nli ne P roc es s

O ff- l ine P r oces s

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Medical Claim

Ad v an c e Ac tu a l Me d i ca l C l a im

1. Na me & Per so na l Nu m be rSu b mi t M e d ica l 1. Na me & Per so na l Nu m be r2. Da te & T im e

Ad va n c e Su bm iss ion o f 2. Da te & T im e3. M ed ica l Re fe re nc e f orAc tu al M e dic al 3. M ed ica l Re fe re nc e f orR eq u ir e me n t 4. Re qu ire d M ed ica l Adv an ce

5. Re fer ra l L et te r f ro m Ho sp ita l Bills 4. M ed ica l Adv an ce T ak en

5. Actu al M ed ica l Cla im

C h e q u eC h eq u e

As k fo r R e f un d fo rBa la n c e Am o un t

Not e:

1. F or S o me pa ym en ts ar e m ade in f av orSy st e m g e n e r a te d of Ho sp it al thr o ugh lia is on Of fi ce r , M .O .H.

A p p ro v a l e -m a il n o ti fic a tio n t oHR & F I Ap pr o val

De d u c t S ys te m g e ne r a te dLe ave Bo o kingS ys te m g e n e ra t e d

Fr o m e- m ai l n o tif ic a tio n t o H Ra nd T ick ete - ma il n o tif ica t io n

S a la r y To u p d a te L e a v e Bo o k in gBo o king

1. Na m e & Per so na l N um be r

Sy st e m g e n e r at e d 2. Da te & T im e

Ve r ific a tio n 3. M ed ica l Re fe re nc e fore - ma il n o tif ic at io n D e po s it in4. M ed ica l Ad van ce T a ken

Ch e q u e /C a sh5. Act ua l M ed ica l Cla im

Ad va n c e N o

P a ym e nt If Adv an ce <Ac tua lP o st /Pa r kC laim

Do c u me n t

Ye s

Po s t/ Pa r k P re p a r ePr o ce s s C la im

D o c u me n t C he q u e /A d vi ceP o st /P a rk Pr e p a re Sig n in g o fD oc u me n t Ch e q u e /A d vic e Ch e q u e /A dv ic e

O nli ne P roc es s


4.3.2.7 Emergency Purchase

In case of emergency, certain purchases are made without issue of purchase order by a committee

constituted for that purpose.

The following are the procedures;Advance releases to the responsible employee in the purchasing committee after the

approval from the competent authority.

Advances posted with special GL indicator in the employee vendor.

After the purchase, MM creates purc hase order based on the bills and cash memos.

After the verification of cash memos and bills, advance will be adjusted against the employee

vendor.

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Payment will be posted against vendor.

The following diagram explains the process of Emergency Purchase

–Emergency Purchase Advance & Settlement

V e nd orCr ea ti on

Req ue st F or S ub mi ss i on ofCh equ e

A d van ce P u rch ase B i l ls / Ca shP a yme nt M em os Cr eat i on P. O

MI GO P osti n g

NOA p pro val N O

A pprov al

Y E S

Y ES

R esp ons ib l e P e rso n F ro m M IRO Po sti n gE m pl o yee th e Co nce rn ed Di vi si onV en dor No . Tr eat ed as a V en do r fo r

A d van ce r el e ase

Out go in g1. P urc has e Ha s to be m ade Wi th i n 3 0 & A d j ustm en t P aym en tsub mi t wi th i n 4 5 Da ys o f A dv anc e P ay me nt.

P o st A d van ce P re par eP osti n g 2. Unsp en t am ou nt ha s to be Refu nd wi th i n 1 0 Da ys

pay me nt W it h C heq ue F or theDo cum en t fr om the l as t da te Pu rch ase . V er i fi cati o n N O

S p eci a lGL A dd i ti on al3. P ena l ty wi l l be cha rge d i n cas e o f de fau l t o f ab ove

Ind i cato r A m oun tB oth ca ses.

4. Rem i nd er Noti c e b efo re 30 da ys.Out Go i ng

Ad van ce i s m ore th an No. P aym en t fo rBi l l Am ou nt A dd i ti on al

Ch eq ue Ch eq ue A m oun tPr i nti n g

Y e s

R em i nde r A dj us ti ng & P ost in g Ad van ce P o sti ngNoti c e to th e A u tom ati c P osti n g o f In ter es t to GL & A s k Con cer ne d Di v i si on for Docu me ntCo nce rn ed Refu nd of B al an ce Am ou nt

P er son

O nli ne P roc es s


4.3.3 FSBP Link

S. Major Process CSBP FSBP No. Process DiagramsNo. No.

3.B1 Payment to suppliers 3.B 3.B Annexure 1_FSBP.VSD-

2 Payment to 3.Ccontractors 3.C 3.C Annexure 1_FSBP.VSD-

3 Emergency Purchases 6.E 6.E Annexure 1_FSBP.VSD- 6.E

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S.No. Description of Improvement Areas Remarks

1 Payment Terms can be ass igned to Vendor master and therefore,system can automatic ally calculate discounts or charges.

2 BST calculation and pos ting will be automatic in System.

3 Automatic TDS Calculation and Posting in real-time by the system.

4 Vendor ageing report as on date.

5 List of overdue items

6 System can prompt and adjust down payment against vendors.

7 If the same vendor served as a Customer, sys tem can adjustautomatically (Vendor Vs Customer clearing)

8 Vendor due date analysis report can be available on line.

9 Advance payment request of vendor can be track ed as noted items

10 Payments terms can be attached to the vendor master, so that s ystem

can calculate due dates automatically.

–11 Vendor Customer cross adjustments by the system.


Controls CommentsThe concerned department will fill the vendor Vendor TAX Identification No. will be the

master creation form for creating new vendors. Validation FieldDepartment head of the concerned department will

verify and forward it to master data maintenanc eteam for checking. AP department will check

whether the record already exists for the respec tivevendor or not. In case the vendor already exists

then request will be sent back along withexplanation to concerned department. In case of

non-existence of vendor master record, new masterrecord will be created.

The AP user will enter the invoice, PARK the Parking for verification by the Supervisor

invoice, record the SAP document number on thedocumentation.

The Supervisor will review the parked documentApproval and verification as per Delegation of

and make changes if required, post the ParkedPower

Document.

For each Document, system generates DocumentInternal Document Number Ranges.

No.

System identifies a document with the documentnumber, Company Code and fiscal year. To have document history for future reference

Reversal of Document in case of Errors An authorized user can reverse a posteddocument.

Authorized users can view Vendor AccountDisplay Vendor Account Balances Balances online using the Account Balance

enquiry and entering the Customer account

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Controls Commentsnumber.

Authorized users can access Open item VendorClear Vendor Account Open Items Accounts and assign and clear debits and

credits.

Where the cheque is misplaced or for any otherreason, previous cheque will be voided by

providing the appropriate reason of voidance ofcheque in SAP system. At the same time

Cancellation of Cheques Finance will issue stop payment instruction to thebank. Cheque cancellation process is executed

and actual entry is reversed by resetting thecleared document. The cheque register is also

updated automatically.

Finance will reprint the cheque from SAP, andRe-Issuance of Cheques the cheque register is also updated & transaction

recorded.


No GAPs

4.4 Account Receivables

Accounts receivable sub-module of SAP records and manages the accounting data relating to all

customers. It is closely integrated with the Sales and Distribution module. Any transaction in sales,which has a financial implication, would automatically be reflected in accounts receivables as well as

the general ledger. Also, different GL accounts would be affected based on the nature of thetransaction, for example, advance receipts, bank guarantees and security deposits .

Both the accounting (FI-AR) and the sales (SD) departments of an organization use customer master

records. By storing customer master data centrally, it can be accessed throughout organization, andavoid the need to enter the same information twice and also avoid inconsistencies in master data. For

example, if the address of a customer changes, it is required to change once centrally whic h enablesboth accounting and sales departments to access up-to-date information.

Features of Account Receivables

Customer master maintenance

Customer down payment processing

Dunning, Balance confirmation etc

Clearing of incoming payment against Customer invoice will be on FIFO basis & Profit

center wise.Range of tools that can be used to monitor open items, such as account analyses, due date

lists.

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4.4.1 Master Data.

1. General DataThis is data that applies to every sales organisation in a company. The general area includes,for example, the customer's name, address, language and telephone data.

2. Company Code DataThis is data that is specific to an individual Company Code. Company Code data includes, for

example, the reconciliation account number, terms of payment and dunning procedure.

3. Sales Area Data

This is data relevant to the sales organizations and dis tribution channels of a company. Data

that is stored in this area includes, for example, sales order processing, shipping and billing.

Following details will be maintained by Finance:

General Details Name, Address etc.

Reconciliation Account for the Customer Reconciliation Account No. for Customer.

Withholding Tax Details TDS details for the Customer

Payment Terms Terms of Payment

Account Group One time, Domestic & Foreign Customers

Vendor Code If the Customer is also a Vendor

4.4.1.1 Customer Account Group

An account group is a classific ation or grouping of customers based on the characteristics. Acustomer account must be assigned to an account group. The account group ensures that only therelevant screens and fields are displayed and ready for input for each of the customer s different

partner functions. For example, the address, communication, and bank data fields are omitted for the

account group for one-time accounts.

The account group controls:

The type of number assignment used for the account number whether internal or external.

A number interval from which the acc ount number is chosen. The system uses the account

number to identify the customer.

Which fields are displayed when entering or changing customer master data and whether or

not an entry must be made in these fields (field status)

Whether the account is a one-time account

In DGPC, there will be three Account Groups for Customers

1. ZDMC - Domestic Customers

2. ZFRC - Foreign Customers

3. ZOTC - One Time Customers

4. ZINC - Internal Customers

4.4.1.2 Payment Terms

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The following Payment Terms exist currently in legacy and plan to create in SAP.

Plant PTC BPC

Chhukha Hydropower 45 Days 30 Days

Kurichhu Hydropower 45 Days 30 Days

Tala Hydropower 30 Days 30 Days

4.4.1.3 Numbering Master Records

Each master record has a unique number. This number is required to call up the master record or topost to the customer account. The account group determines the type of number assignment usedand the valid number range for a customer master record. The customer master record number is

assigned either internally or externally. Internal numbers are ass igned by the s ystem, whereas

external number range, user need to put number externally at the time of creation of the customermasters record. External numbers can be alphanumeric.

The system ensures that the numbers assigned are always unique. With internal assignment, thesystem selects the next number from the interval and therefore, no duplication of numbers. With

external assignment, the system prevents entering the same number twice. A customer identification

key will be same in all Company Codes.

4.4.1.4 Reconciliation Accounts

A reconciliation account must be specified in the master record so that all postings made to asubsidiary ledger are also posted to the general ledger. When post items to a subsidiary ledger, the

SAP system automatically posts the same data to the general ledger at the same time. Eachsubsidiary ledger has one or more reconciliation accounts in the general ledger. This means that

financial statements can be drawn at any time without having to transfer totals from the sub-ledgers tothe general ledger.


o Presently, DGPC is billing to foreign and domestic customers. In SAP, the processes relatedto sales are routed through Sales and Distribution Model (SD). The GL accounts for foreign

customer and domestic customer is maintained in SD module using pricing c ondition.Whenever billing happens from SD, revenue accounts and customer accounts are determined

automatically and posted to FI.

o The FI module is integrated with the SD module by defining the account determinations in

the SAP system. Sales ac tiv ities leading to financial implications automatically update the

respective Customer & G/L accounts.

o Asset / Material disposal will be routed through SD module and corresponding accounting

entry will be posted in FI. If the disposal is with Cus tomer, customer master will be created.

Sales order will be created in SD for the selected customers against approved materials.

4.4.2.1 Special GL Transactions

Down payment requests and down payments are special general ledger transactions. Thes e

transactions are not posted to the G/L account defined in the customer master record but to an

alternative G/L account. Special G/L transactions are special transactions in accounts receivable

and accounts payable that are displayed separately in the general ledger and the sub ledger. This

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is achieved by posting to alternative GL accounts, ins tead of posting to the reconciliation accounts

for receivables and payables.

The following special G/L transactions are available in standard system:

Down payments and down payment requests

Guarantees

Reserves for bad debt

Security deposits

Above special procedures are displayed separately from other receivables and payables on thebalance sheet either for statutory reasons, such as with down payments, or for control reasons, such

as with guarantees received. A separate special G/L account is created for each special G/Ltransaction. As a result, it is possible to display each transaction in the balance sheet without having

to carry out any transfer postings and to receive an overview via the account limited to this procedureonly.

Process Flow:

Down payment request F-37

Down payment(receipt) F-29

Invoice F-64

Down payment clearing F-39

1. When the down payment is received from the customers, the entry is to be recorded using

the special G/L indicator for the respective special G/L trans action.

Incoming Bank A/C …………………………………Dr. xx,xxx

To Customer A/C (Special G/L Indicator) xx,xxx

2. Once the billing is done and a receivable from the Customer is generated, the amount is

adjusted from the total receivables from the customer and the balance is collected.

While choosing the open items, the s pecial G/L items are also selected and adjusted

against the total receivables from that customer.

…………………………….Dr. xx,xxxBank A/C

A/C………… Dr.Customer (Spl. G/L) xx,xxx

To Customer A/C …………………………….xx ,xxx

4.4.2.2 Customer Incoming payment

The system is able to handle customer payments in different modes such as cheque, cash payment

etc. Incoming payment allows user to record receipts from customers in the system and adjust themagainst invoices and debit memos.

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Incoming payment can be booked partially or residually depending on situation. Invoices, advances

and debit memos can be partially settled.

4.4.2.3 Dunning Notice (Reminder Letter)

Sometime the customers may not pay on time. In this case a payment reminder or a dunning notice

can be sent to remind the outstanding dues. The system duns the open items from a customer whichhas a debit balance.

4.4.2.4 Correspondence with Customers

The account statement and balance confirmations can be sent to customers periodically. Reminder

notice can be sent to all customers whose payments are overdue. This is poss ible by using the SAPstandard functionality.

4.4.2.5 Customer is also a Supplier/ Vendor

If a customer is also a vendor, or vice versa, there can be the payment program and the dunning

program offset the customer and vendor open items against each other. User can also select the

vendor line items at the time of display of the customer line items for this account.

Before clearing items between a vendor and customer account, it is required to;

1 Create a customer master record for the vendor that is also a customer.

2. Enter the vendor account number in the Vendor field in the control section of the general data

in the customer master record.

3. Enter the customer account number in the Customer field in the control section of the general

data in the vendor master record.

4. Choose Clearing with vendor and clearing with customer in the company code data in

both the customer and vendor master records. In this way, each company code can decide

separately whether it needs to offset the customer against the vendor.

For DGPC, PTC is also a Customer and Vendor. For this, Customer Vs Vendor relation will be

maintained for PTC if required and system will then automatically adjusts the incoming and outgoingpayments.

Process in DGPC (Accounts Receivable)

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The following are the main proc ess under A/R;

o S.O Creation

o Billing

o TDS

o Dunning

o Incoming Payment

The Following diagram explains the complete flow of Accounts receivable (BPC & PTC);

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Accounts Receivable - PTC

Cr eati on of Cr eation of

Cus tomer Materi alS T AR T

Mas ter D ata Mas ter Da ta

Customer No.001

Cr eati on ofMeter

Sa les Or der Ch ange TheN OV eri fic ati onReadi ng

W ith Bl oc ki ng S ales O rder

S tatus

YES

A pprov e &

R eleas e the

S al es Or der

C opy of B ank P roc es s

B i ll in g A dv ic e Incomi ngP ayme nt

Inc omi ng P ayment P i c k T heN OV eri fic ati on O pen Items Au tomatic al ly .

YESRec ei pts c an be F ull or P ar tial

P ark B il li ngP ar k the

D ocumentAdj us t Down pa yment Do cument

P ost B i l li ng D un ni ng Dunni ng Char gesD ocument N ot ic e NO

V eri fic ati onChange s

B i ll in g YE S

D ocument D un ni ng T ex t,P ark O r P os t the P os t theD un ni ng

Doc uments D ocumen tsCh a rge s EN D

B ank A dv i ceDunni ng A ck nowl edgement orMon thly B il lNo tic e Or TT Monthly S tatements

B ank Ad vi ce

Cr edit to D GP C

A /C

A) Revenue Recognition at Plant.

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Based on the Meter reading information, SD creates Sales Order. This sales order can be

verified by the Competent Authority. On approval, the Competent Authority releases the

Sales Order for billing.

B) Billing.

Once the Sales order is released for billing, the billing is processed. Revenue recognition

happens when billing document is generated on delivery plant wise. Accounting entries are

automatically posted to revenue account and debtors account at the time of generation of

billing document.

The signed copy of plant wise JEMR Statement will be scanned and attached to DMS.

Scanned copy of JEMR Statement can be retrieved by the Corporate Office at the time of

billing and send a single and centralized bill to the customer along with the JEMR

Even if the bill date is after the end of the month, the revenue should be accounted within

that month only.

C) Receipt from Customer (Incoming payment)

Incoming payments are recorded in SAP system by using the respective transaction for

posting incoming payment. The receipts from Customers are handled through Accounts

Receivable. The respective document type for receipt from customers is to be used.

Corporate Finance receives the incoming payment and posting is routed through Profit CentreAccounting. Bank payment advice will be the proof of incoming payment from customers.

o BPC sends bank payment advice to bank and a copy of bank advice sent to DGPC.

This bank advice serve as a proof of incoming payment and posting will be made

based on this bank advice.

o PTC makes payment to RMA and RMA intimates bank to mak e payment to DGPC

A/C. A copy of bank advice sent to DGPC by RMA and this copy serve as a proof of

incoming payment form PTC.

D) Inter Plant Billing

This is the purchase made between plants. For this process, plants will have Customer

Vendor relation between them.

o Plant will be considered as Customer and Vendor

o Selling plant will raise Sales Order.

o Selling plant recognizes as revenue and receiving plant recognizes as expense.

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E) The Royalty Energy Charges

Royalty energy calculation will be done in Sales & Distribution module and the necessarytransactions triggered in FI automatically.

4.4.3 FSBP Link


1.A1 Electricity Revenue BPC1.A 1.A Annexure 1_FSBP.VSD-

1.A52 Royalty energy revenue 1.A5 1.A5 Annexure 1_FSBP.VSD-

1.B3 Electricity Revenue PTC 1.B 1.B Annexure 1_FSBP.VSD-


S. No. Description of Improvements Remarks

1 Credit Control through system is available in SAP.

2 Down payment can be tracked and adjusted at the time of incoming payment.

3 System can generate Dunning notice for overdue items.

4 Customer Vs Vendor clearing automatically by the system.

5 Plant wise sales order can be created based on the delivery.

6 Online Ageing reports are possible.

7 Online reporting is available.

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Controls CommentsUser will raise a request for new customer accountusing internal Service Request (Request for new

Customer) or proponent will raise a request forinvoice for a new Customer. The Accounts

Receivable user will verify that: Customer TAX code will be the Validation Field1. The request is valid and is approved

2. Check that the customer does not exist in thesystem.

3. Create the customer and assign the customer toan Account Group.

The AR user will enter the invoice, PARK the

invoice, record the SAP document number on the Park ing for verification by the Supervisordocumentation.

The Supervisor will review the Park ed documentApproval and verification as per Delegation of

and mak e changes if required, Post the Park edPower

Document.

For Each Document, System generates

Document No. Internal Document Number Ranges.

System identifies a document with the documentnumber, Company code and fiscal year. To have document history for future reference

Reversal of Document in case of Errors An authorized user can reverse a posteddocument.

Authorised users can view Customer AccountBalances online using the Account Balance

Display Customer Account Balancesenquiry and entering the Customer accountnumber.

Authorized users can access Open item

Clear Customer Account Open Items Customer Accounts and assign and clear debitsand credits.


No Gap

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4.5 Asset Accounting

The Asset Accounting (FI-AA) c omponent is used for managing and supervising fixed assets with the

SAP R/3 System. In SAP R/3 Financial Accounting, it serves as a subsidiary ledger to the FI GeneralLedger, providing detailed information on transactions involving fixed assets. The Fix ed Asset module

is an integrated asset management solution for additions, updating, tracking, depreciation andadministrative purposes. Assets are depreciated periodically to arrive at their current net value. Once

an asset is capitalized, it can be transferred between locations, cost centres . Assets can be removedfrom the Assets Ledger by disposing them.

The Fixed Assets Module will provide following functions:

New asset addition

Add to an existing asset

Modify asset details

Asset transfer

Asset retirement

Depreciation

Features of Asset Accounting

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Record acquisition of fixed asset

Record disposal / write-off of asset

Drill down for a particular asset to view the transaction history for that asset.

Asset Depreciation

4.5.1 Master Data

The Asset Accounting module contains master records that control how bus iness transactions are

recorded and posted to the account. The Asset master record also contains all the data required tomanage Company s Fixed Assets. Asset master will be created at plant level.

Following details are maintained in the Asset Master:

General Details Asset Description, Capitalization Date, Acquisition Date etc.

Time Dependent Business Area, Plant, Cost Center , Location, Personal No.

Asset Class The Asset Master is c reated within an Asset Class. The screen

layout, depreciation terms, account determination are defaultedfrom the As set Class

Chart of Depreciation Charts of Depreciation are used in order to manage variousrequirements for the depreciation and valuation of assets. Thesecharts of depreciation are usually country-specific and are defined

independently of the other organizational units.

Information on the Origin of the Vendor details, Acquisition date , etcAsset

Insurance Data Insurance details

Depreciation Area Depreciation key, Useful life in years/periods, Start date for

depreciation calculation etc.

Number Ranges Each Asset Class will have separate number range. There will beinternal number ranges, which means the number get assigned

automatically once ass et master record gets created. Themaximum length of number will be twelve characters.

4.5.1.1 Asset Classes

The asset class is the most important criteria for structuring fixed assets from an accounting point ofview. Every asset has to be assigned to exactly one asset class. The asset class is used to assign

the assets (and their business transactions) to the correct general ledger accounts. Several asset

classes can use the same account assignment. The most important tasks of the asset classes are:

the assignment of default values when creating assets (particularly depreciation terms)

the grouping of assets for reporting purposes


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o Presently, DGPC is using Asset Group, Sub group concept for the c reation of assetcodification. This asset codification will be continuing in SAP, and in each as set master, asset

evaluation group will be maintained. This evaluation group can be up to four levels.

“A”.o The PR for Asset is to be created with account assignment category

o Asset which can be identified as an asset at the time of PR can be purchased directly as anasset without routing through inventory coding. Therefore, inventory code creation is not

required for those assets. And those ass et which cannot be identified as asset at PR level,material code will be created for those assets and later it will be capitalized to asset master.

o Assets which can be put into us e immediately will be capitalized immediately at the time of

MIGO posting (Inventory updates) and deprec iation will be charged from the time ofcapitalization. E.g. Assets purchased in the nature of Computer, Furniture & Fixtures and

Vehicles etc. will be capitalized and start depreciation immediately.

o Asset which cannot be put to usage immediately are routed throughAUC(CWIP)/INVENTORY and capitalized at time of put to usage. Depreciation will be run

only after put to usage.

o In case of asset 100% funded by grant, amount equal to the annual depreciation on suchasset should be transferred from capital reserve to depreciation.

o Any addition of value, improvement or part replacement to a fixed as set that result in

increasing the utility or capacity or life of the asset shall be capitalized and included in thecost of asset. The c ost of asset will be capitalized by settling the internal order.

o In DGPC, the Straight Line method will be used for depreciation calculation.

o When the ass ets are not in use / operation, the depreciation for that asset can be shut down

and location, custodian etc can also be changed.

o Transfer of asset between plants as and when required can be done by changing the assetcost center and custodian in the asset master. The respective plants shall charge

proportionate depreciation based on the period of holding.

o Insurance details of individual assets can be maintained in asset master.

o Asset disposal will be routed through SD and MM module. Asset can be disposed fully orpartially. SAP provides the option of Amount or Percentage or Quantity in case of partial

disposal. Depreciation, on assets to be disposed of, will be charged upto the date of disposal.This is change from accounting policy, where no depreciation is charged during the year of

sale.

o Assets which are fully depreciated and still usable will be maintained @ Nu.1.

o Depreciation on assets used during cons truction period for construction works is to becapitalized till the date of commissioning of the project and thereafter, charged to revenue.

4.5.2.1 Purchase of Capital Goods (Through MM- MM/FI & AA)

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All asset purchases should be routed through Materials Management in the form of a Purchase Order.

The Accounts section will create the Asset Master record before Purchase Order is raised throughMM Module.

Creation of Asset Master

Creating the Purchase requisition

Creating the Purchase order

Posting the Goods receipt

Posting the Invoice receipt

“A”1. Purc hase Order is created with an ac count assignment and the reference of Asset

number mentioned in the P.O.

2. On receipt of the asset, the following entry gets generated under MM Module,

Asset A/C……………………Dr. xxx

To GR/IR A/C ………………………….xxx

–3. Invoice verification The following entry will be parked by the MM module;

At the time of invoice verification, the system will prompt the user to notify if any advanc epayment exists.

GR/IR A/ C……………….Dr xx,xxx

To Vendor A/C……………….xx,xxx .

The following diagram explains the Asset Accounting Process (Purchase & Capitalization);

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Asset Accounting

Fi n an c e C o n ce rn e d D iv is io n MM Ve n d or S t o re

Re q u e st f ro mCo n c er n e d S TAR T

di vis io n

YESBu d g e t A p p ro v a lNOAs se t

M as te rC r e a tio n

N O

Sy st em C r e at io n o f Bu d g etGe n e ra t ed Pu r c ha s e Av ai la bi lity C h e ck T en d e r in g Pr o ce s s

N O.0 0 1 R e q ui sit io n

C r e a tio n o f C op y P u rc h a seP ur c h as e Or de r

Or d e r

R e ce ip t Of P .O

D el ive r y Of R e ce ip t o f Ch e c k

Go o d s Go o d s Wi th P .O

As se t I m m ediat e Capit al iz ati onPo s t GR/ IR

Ca p it a liza t io n

IRPo st A UC

V e ri fic a tio n(M IR O)

Capit al iz ati on at t he Tim e ofI s su e f or Us age

Ou t Go in gPa y me n t

C h e q u e /D D/ Onl ine P r oc es sC h eq u e /D D /

Ad vi ce / E-A dv ic e /E-

Pa ym e n t/T T/L CP ay me n t/ TT/ LC

Of f- line P r oc es s

4.5.2.2 Asset acquisition through Internal Activity

An acquisition from internal activity is the capitalization of goods or activities that are partly orcompletely created within the company. In DGPC, there would be processes of capitalization of AUC

through booking of cost directly to AUC & WBS element in Project System (PS).

4.5.2.3 Settlement of Investment or WBS Elements

In PS – WBS elements (Work Breakdown Structure) will be created. The cost is then posted to WBS

element via various modules e.g. from MM via goods issue, from FI via posting expenses. The WBSelement is settled periodically to assets. To settle the WBS to AUC, the processing type “Automatic” is

, select the processing type “Full”.selected, and to settle WBS from AUC to Assets (T-Code CJ88)

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4.5.2.4 Asset under Construction

On setting up of a large project, the expenses incurred on the project including capital and revenue

expenses will be tracked through investment project and in turn through Asset under cons truction.Asset under construction will be managed as an as set master record, which can be settled to the

receivers (Cost Center or Asset Master). On completion of the project, the line items must be clearedand then distributed to the various receivers (assets) by defining the distribution rules (name of the

receiver, percent of the v alue to be settled, period for settlement, etc.). At the time of settlementtransaction, actual posting is carried out according to the distribution rules specified in the order

settlement. This helps in distributing various project costs over a range of assets during capitalization.

o AUC can be settled to one or more Asset master. i.e. Under AUC ,line item wise settlementcan also be done to one Asset Master or more than one Asset Master.

4.5.2.5 Capitalization of Inventory at the time of issue from store

Asset which cannot be recognized as an asset at the time of PR and Electro Mechanical items are

routed through inventory. As and when requisition from the concerned division or department arereceived, these asset will be issued by selecting movement type 241 and capitaliz ed at the time of put

to usage. Depreciation will be run only after put to usage.

4.5.2.6 Low Value Asset

Low value Asset costing Nu. 500/- and below are charged off as expenses during the year ofpurchas e. Loos e Tools costing above Nu.500/- are depreciated 15 % per annum. For such assets, an

asset class will be created as Loose Tools.

4.5.2.7 Asset Depreciation

Different depreciation rates are configured using different depreciation keys and they will be attached

with the asset masters at the time of creating an asset master.

be handled by creating Book Depreciation depreciationDepreciation as per accounting policy willarea. Whereas , depreciation outside accounting polic y but is required for meeting other requirement

for e.g. as per the Bhutan Electricity Authority, Tariff Determination Regulation, 2007 will be handledby creating Group assets for each block and attaching the same to every asset created in AS01.

SAP gives a functionality of Depreciation Forecast Report wherein one can analyze the depreciationof the Asset over a period of years. The planned depreciation is posted to the general ledger at the

time of the monthly depreciation posting run. This posting run is executed as background job to postthe planned deprec iation for each posting level for each individual asset as a lump sum amount.

.For DGPC, there would be monthly posting for Book Depreciation The depreciation posting cycle isdetermined by entering the length of time (in posting periods) between two depreciation-posting runs.

This means that a setting of 1 indicates monthly posting, 3 means quarterly posting, 6 means semi-annual, and 12 means annual (for a fiscal year version with 12 posting periods). When a depreciation-

posting run is started, one has to enter the period for which one wants it to be posted.

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The Following diagram explains the depreciation run in SAP;

Depreciation Run

1 . L i st Of C o un t ry S p e cif ic D e p re c ia tio nAr e a s.

2 . W e ca n C r e a te o u r Ow n C h a r t OfDe p r e ci at io n A re a s . De p r e cia t io n

3 . A s sig n C h a r t Of D e p r e cia t io n ToCo m p an y C o d e

1 . Bu il di ng s1 . C ap it a liz a tio n D a te

2 . Ma c h in er ie sAs s et C la s s As se t Ma s te r 2 . D ep r e ci at io n A re a

3 . Ve h ic le s3 . D ep r e ci at io n K e y

4 . As s et U n d e r C on s tr u c tio n s

Mo n th ly1 . D e p re c ia tio n Is C a lcu la t e d u si ng D ep r e ci a tio n R u nD e p r ec ia ti o n Ke y s.

D e p re c ia ti on2 . I N1 : Ta x De p r e cia t io n - 5 %

Ke y s3 . GL 2 0 : Bu ild in g St ra ig h t L in e– 2%

4 . G0 0 0 : N o D ep r e c ia tio n

U np l an n e d P la n n ed Sp e ci a l

D ep r e c ia tio n D e p re c ia ti on De p r e cia t io n

Te s t R un

Pr o d u ct io n R u n

Onl ine P r oc es s

Of fl ine P r oc es s Sy s te m Po s ts

t o FI -GL

o In case of asset overhauling, depreciation will be shutdown at the time when asset is not in

use/operation and on completion of overhauling, depreciation will be charged on Book Value+ Overhauled Value.

o Those assets previously charged depreciation on wrong asset class will be trans ferred to new

asset class. The deprec iation shall be charged prospectively.

o Depreciation will be charged on fixed ass et sold or retired during the year up to the date ofsale.

4.5.2.8 Asset Revaluation

Asset revaluation will be an offline process. User needs to input the revalued value of asset in the

system. On running AR29N (Asset Revaluation), s ystem will update the revalued value to the assetmaster. Revaluation can be done by uploading the XLS file into the system. For asset revaluation, a

clearing A/C need to be created. Gain or loss on revaluation will be updated to this clearing A/C. Ondepreciation run, depreciation will be charged against the revalued amount.

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The following entry will be automatically passed by the system at the time of revaluation;

In case of gain arising from the revaluation of asset, it is transferred to Revaluation Reserves

Fixed Asset A/C Dr ………….xx,xxx

Revaluation Reserve A/C……..xx,xxx

In case of loss arising from the revaluation of asset, it is transferred to Loss on revaluation A/C;

Loss on Revaluation A/C Dr …….xx ,xxx

C…………………………xx,xxxFixed Asset A/

4.5.2.9 Asset Bar Coding / Asset Identification

DGPC may adopt for Asset Bar Coding for Asset Verification. It is printed using a freely-definable SAP

script form (program RABARC01) or with SAP report S_ALR_87010137 . Printout can be used for

labeling assets for individual identification. The barcode is unique for each asset, since it representsthe asset main number and sub-number or combination of Asset class and Asset No. Various barc ode

formats are available in the SAP System (such as EAN 13). The standard form is set for the formatBC_CD39C. This format allows the barcode conversion of all alpha-numeric characters and thehyphen (no other special symbols). Barcode reader can be used during physical verification and

compared with Asset Register. To link Bar Code Reader to SAP System, some interfaces or a third

party package will be required.

o DGPC need an interface to Print bar code with SAP

o In Asset master, Inventory Number (INVNR) field can be captured with Bar Code.

o If interface is not used, then use LSMW to capture the field in the asset master.

o Bar code machine will read the physical asset and gives a report which can be used LSMW

uploading in SAP.

4.5.2.10 Asset Physical Verification

Asset physical verification will be an offline process as standard SAP does not have this option. From

the system, complete list of Asset (Location wis e/Plant wise/Cost center wise) can be generated. Userneeds to verify the asset physically and any addition or deletion arising out from the verification need

to be updated in the system. All adjustment as a result of verification will be adjusted by the systemautomatically.

4.5.2.1 Asset Warranty

Warranty details of each asset will be captured in the Asset Master. In Ass et Master, under evaluationgroup, asset warranty details need to be filled by the user.

4.5.2.2 Asset Retirement

The asset retirement consists of any of the following:

Sale of an asset

Scrapping of an asset

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Transferring of an asset

The above mentioned items can be done by using SAP standard functionality.

Transactions related to sale of asset are processed in Asset Accounting module. The retirement of

asset with revenue can be done by choosing the respective asset that is to be retired (either

partially or wholly). In case of partial retirement, the same may be in terms of value or quantity or

relative percentage to the actual asset.

The calculations for the profit/loss on sale are calculated internally and the updating of the

respective G/L accounts happens automatically on posting the document.

A. Retirement Without Revenue/Scrapping

For Retirement without Revenue/Scrapping, the Net Book Value of the As set is the Loss on Scrap.

Loss, Retirement and Scrapping of Assets A /C……………..Dr. xx,xxx

………...Accumulated Depreciation A/C .... Dr xx,xxx

To Asset A/C…………….. .................. ........... xx,xxx

B. Retirement with Revenue (With Customer)

Retirement with Revenue is to be routed through SD & MM module. Master data creation will happen

for the customer. The calculations for the profit/loss on sale are calculated internally and the updating

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of the respective G/L accounts happens automatically on posting the document. The followingaccounting transactions will be passed for retirement with revenue,

1. Entry passed on approval of proposal for write off of assets,

… ……… …Loss, Retirement and Sc rapping of Assets (WDV) A/C ..Dr. xx,xxx

To Provision for Asset Obsolescence A /C…… xx,xxx

2. Entry passed on sales and the transaction will be generated automatically from the system,

Customer A/C ...................................................................................... Dr. xx,xxx

Accumulated Depreciation A/C....................................................................Dr. xx,xxx

G/L on Sale of Asset A/C .............................................................................Dr. xx,xxx

Sale of an Asset A/C.................................................................................... Dr. xx,xxx

To Asset........................................................................... Cr.xx,xxx

To Sale of an Asset (Clearing Account)........................... Cr. xx,xxx

Note: If there was gain on sale, the Loss on Asset GL would get reflected in the credit side.

3. Entry passed on deposit of cash,

Incoming Bank/Cash A/C ............................Dr. xx,xxx

To Customer A/C .............................Cr. xx,xxx

4. Entry passed on write back of provision after sale of asset,

Provision for Asset Obsolescence A/C…… ............Dr. xx,xxx

To Loss, Retirement and Scrapping of Assets (WDV) A/C ……………..Dr. xx,xxx

C. Retirement with Revenue (Without Customer)

In case of Asset retirement without customer, Master data creation for customer is not required. The

incoming payment will be directly posted to Cash / Bank A/C by crediting sales proceeds.

1. Entry passed on approval of proposal for write off of assets,

ets (WDV) A/C ……………..Dr. xx,xxxLoss, Retirement and Sc rapping of Ass

To Provision for Asset Obsolesc ence A/C…… Cr.xx,xxx

2. Entry passed on sales,

Accumulated Depreciation A/C....................................................................Dr. xx,xxx

G/L on Sale of Asset A/C ............................................................................ Dr. xx,xxx

Sale of an Asset A/C.................................................................................... Dr. xx,xxx

To Asset........................................................................... Cr. xx,xxx

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Note: If there was gain on sale, the Loss on Asset GL would get reflected in the credit

side.

3. Entry passed on deposit of cash,

Incoming Bank/Cash A/C ............................Dr. xx,xxx

To Sale of an Asset A/C .............................Cr. xx,x xx

5. Entry passed on write back of provision after sale of asset,

Provision for Asset Obsolescence A/C……............Dr. xx,xxx

To Loss, Retirement and Sc rapping of Ass ets (WDV) A/C ……………..Dr. xx,xxx

4.5.2.3 Asset Transfer (Inter Unit Transfer)

Asset transfer within Company Code is made mainly for 2 reasons;

A) Wrong Asset Class:In case, the asset was created under a wrong asset class, then a new asset has to be

ss et Class and an “Inter Company Transfer”created in a correct A is to be executed.

B) Change in Location (Segment): In case of a change in location of the asset,

the data like Cost centre, location, plant custodian etc. in the master record may alsoneed to be changed.

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The following diagrams illustrates the Asset transfer (Inter Unit Asset Trans fer)

Inter Unit- Asset Transfer

R eq u e st le t te rST ART

fo r Tr an s fe r

N O

Ap p ro v a l

YES

1 . P la n ne d D e p re c ia tio n .R un

2 . D e p re c ia tio n e f fe ct in t h eD e p re c ia tio n

Cu r r en t C o st ce n t er

C h a n ge th e A ss et ma s te r ;NO T E : -1 . C o st C en t e r2 . L o ca t ionIn A ss e t ma st er , C ha n g e th e Co s t c e n tr e, P la nt ,

A ss et Tr a n sf er 3 . P er s on n e l N o . o rL oc a tio n a n d C u st o dia n .C u s to d ia nf r om c ur r e nt C o st C e nt e rt o n e w C os t Ce n te r

Onl ine P ro ces s

De p r e cia ti on will tr ig g e r th eMo n th ly

Co s t Ce n te r a n d th e e f fe ct w illD e p re c ia tio nOf f- line P r oc es s b e in n e w Co s t Ce n te r

END

Note:-

If the asset transfer is within the same cost center, then depreciation run before the transfer is notrequired. But if the transfer of asset is between different cost centers then depreciation should be run

to transfer the accumulated depreciation upto to the date of transfer. Depreciation in the new costcenter will be affected from the date of transfer.

4.5.2.4 Closing Operations

A. The year-end closing program is used to close the fiscal year for one or more company codesfrom an accounting perspective. Once the fiscal year is closed, one can no longer post or

change values within Asset accounting (for example, by recalculating depreciation). The fiscalyear that is closed is always the year following the last closed fiscal year.

B. At the time of closing the period, system performs the following checks;

o The system found no errors during the calculation of depreciation (such as,

incorrec tly defined calculation keys)

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o The planned deprec iation from the automatic posting area has been completely

posted to the general ledger.

o All incomplete assets (master records) have been completed, since this c heck does

not make sense for assets under construction, this check can be prevented from

being made for assets under cons truction.

4.5.3 FSBP Link

S. No. Major Process CSBP FSBP Process DiagramsNo. No.

6.A ,6.A21 Capitalization ofAsset 6.A 6.A Annexure 1_FSBP.VSD-

6.B2 Depreciation of Asset 6.B 6.B Annexure 1_FSBP.VSD-

3 Revaluation of Asset 6.J 6.J

4 Physical Verificationof Asset 6.K 6.K

5 Transfer of Assets 8.B 8.B Annexure 1_FSBP.VSD- 8.B


Sl.N Description of improvements CSBP pain area addressed Remarkso1 Asset Complete History would be

available in the system

2 Asset transfer report can be generated

on real-time basis.

3 Different reporting according toAccounting/Reporting Standards

5 Equipment Number can be assigned to

Asset Number

6 Legacy Asset Number can be capturedto new Asset Master.


No GAPs

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4.6 Bank Accounting

A House Bank is a combination of a Bank and a Branch. Account id is the account number. A house

bank can have multiple account IDs. Each house bank and account ID combination will have onemain General Ledger ac count. Bank Account Master Data will be maintained by the Finance

Department centrally.

Implementation Scope

Managing cheque receipts and payments

Printings of bank cheque

Cheque lot maintenance

Bank reconc iliation through bank statement upload

4.6.1 Master data

The Bank Master contains all the data relevant to the Bank Accounts required for carrying out thebanking transactions. Following details are maintained in the Bank Master:

–House Bank All bank data is determined using this key

–Account Id This ID together with the ID for the house bank uniquely defines a bank

account

–Description Name of the bank, Location etc.

–Bank A/C Number This field contains the number under which the account is managed at the

bank

Currenc y – Currency in which the Bank Account is maintained

–Country The country in which the Bank is located

–GL Account The GL Account of the Bank

The following diagram illustrates the relation between Bank and GL account

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In DGPC, for automatic reconciliation purpose, minimum of three G/L accounts are created for each

combination of house bank and account ID consisting of one main account and two sub account(Incoming Account & Outgoing Account) and other GL accounts if necessary. Entries are initially

posted to the bank sub-account. From s ub-account, the entries are automatically posted to the mainaccount based on matching of the entries with the bank statement.

1. Bank Main A/C

2. Bank Incoming A/C

3. Bank Out Going A/C

The Following diagram illustrates posting flow from sub accounts to bank main acc ount;

4.6.2.1 Cheque Lot Maintenance

Cheque lots are maintained for House Banks. Cheque lot is issued by the respective bank and pre-

printed cheque will be used for making payment. These cheque numbers are serially assignedinternally to the payment documents. The cheque issued appears in cheque register. However, in

case of manual payment transactions and for manual cheque creation, cheque number can be–assigned manually to the payment document through T-code FCH5 Manual Cheques .

If during cheque printing the cheque gets spoiled, cheques can be reprinted giving appropriate reason

codes. The cheque number gets void and the next free number is assigned to the payment document.In case of misappropriation or loss of cheques, unused cheques can be voided in SAP. Giving blank

cheques and cheques of type not over a certain amount can be handled by voiding unused chequesand when the cheque is used, cancelling the voiding information.

SAP provides the following options in cheque management;

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1. Cheque Register

2. Cheque Information3. Unused cheque

4. Cheque renumbers5. Reprint the cheque

6. Void issued cheque

The following diagram explains the Cheque Management in SAP;

Cheque Management

S TA RT

N ote:-

F CHN Cheq ue Regi s terM is c ell aneous F CH1 Cheque Inform ationB i ll i ng In S A P or M IGO or W ork O rder

B il l ing or Inv oi c e F CH3 Unus ed C hequeor Cas h MemosV e ri fic ati on

F CH4 Renum ber

F CH5 Manual Che que

F CH7 Repr int the Cheq ueP os ti ng out P osti ng F CH8 V oid Pa yme nt Cheque

G oing Do cume nt F CH9 V oid Iss ued C hequeP ay ment F CHE D el ete V oi d Cheque s

Chequ e 1. Che que Regi s ter

P r int ing i n 2. Che que Lots

S A P 3. Is su e Cheque s, E tc

Chequ e Joi nt or S ing le

S i gantur y

Che queS TA RT

Online Process

Off- line Process

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4.6.2.2 Bank Reconciliation

The Bank reconciliation process is based on the entries passed through the bank sub account and

main bank account. As there will be time lag between the cheques issued / deposited and therealization in the bank, there needs to be reconciliation between the bank statement and the book

balance. For this purpose, bank reconciliation statement (BRS) will be prepared at periodic intervals.After reconciliation, the system will generate the cheques issued but not cleared and cheques

deposited but not realized. For this purpose a house bank & account id will be created for each of thebank for which BRS is going to be generated.

4.6.2.3 Bank Reconciliation Process

The outgoing payments will be done and the accounting entry will be;

Vendor A/C Dr … ……xx,xxx

A/C …..xx,xxxTo Outgoing bank

Similarly, when a receipt from customer is accounted, the accounting entry will be;

Incoming Bank A/C Dr ……xx,xxx

To Customer A/C xx,xxx

All the other bank charges including interest, LC charges will be accounted as payments and all thecredit made by the bank on account of interest on deposits etc will be treated in line with deposits .

When the bank statement is received, the bank reconciliation will be done online.

For posting the transaction, the following details will be entered.

Company Code, House Bank, Account Id, Statement Number, Statement date, Currency, OpeningBalance and Closing Balance of the bank statement and posting date. Press enter and a new screen

appearing „Process Manual Bank Statement .will be

Enter all the relevant information like transaction, value date, amount, allocation (Customer Cheque

Number), document number (if the doc ument no of original transaction is known), bank reference(Payment Cheque Number), posting date of the amount in bank statement, for all the transactions thathave been found in the bank statement for a particular period. On saving, the following entries will be

passed:

…… xx,xxxHouse Bank A/C (Main Bank Account) Dr

/C ………………………..xx,xxxTo Incoming Bank A

……………….xx,xxxOutgoing Bank A/C Dr

…..xx,xxxTo House Bank A/C (Main Bank Account)

The fund transfers will be treated as deposits/ payments and the entries will be passed as above.

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After this, the house bank account will show the balance as per bank statement and the balances inthe Incoming bank account and Outgoing payment account balances will show the cheques deposited

but not realized and cheques issued but not cleared.

The following diagram explains the process of creation of bank master & bankreconciliation;

Bank Master & BRS (House Bank)

Ba n k N a m e :B a n k Ma s te r Ac co u nt No . : B a n k S ta t e me n t

C r e a tio n M I CR Co d e :SW IF T C o de :

B a n kI mp o r t b a n kI d e n tif ic a tio n

U n iq u e Ke y S ta t e me n t

to S AP

P o s tin g D a ily Ba nk Ke y :R u n BR S in

B a n k Ba nk G L :S APO th er G L :Tr a n s a ct io n s

A u to m a ti c P r o vid e d , U s e rR e a l t im e Po s ti n g Kn o c ki n g o f f c a n S e le c t t h eUp d a t e o f d o c u me n t Tr a n s a ct io n s Tr a n sa c ti o n sb a n k GL

A u to m a ti c Ch ec k dep os it , c h ec k is s ued , ba nkP o s tin g o f

c ha r ges de bit ed b y b ank , c a s hB u s in e s s

wi th dr aw al, c as h de pos i ted e tc .Tr a n s a ct io n s

ENDU p d a te d Ba n k G L

B a n k St a te m e n tST AR T

( Mo n t h ly )

O nli ne P r oc e s s

O ff - lin e Pr o c es s

4.6.3 FSBP Link

S. Major Sub Process Minor Process CSBP FSBP ProcessNo. Process No. No. Diagrams

1 Bank House Bank Manual Bank 9.A 9.A Annexure1_FSBP.VSD- 9.AAccounting Statement and

Electronic BankStatement

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S.No. Description of improvements Remarks

1 Online Reconciliation

2 Main Bank balance matches with Bank

balance.

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4.7 Module Integration (MM-FI)

4.7.1 Material purchase Accounting & SAP

Purc hase Order will be raised in the MM module. Accounting of purchases will be c onfigured us ingaccount determination in MM module of SAP. The determination will be made using following

parameters:

Company Code

Valuation Class

Valuation Class

Valuation Class is basically the broad classification of materials like Raw Material, Semi-Finished,Finished Goods, Trading Goods, etc. which are assigned in the Material Master.

The valuation class determines the G/L accounts that are updated as a result of a transaction or

event, such as a goods movement. The accounting entries from MM Module are passed based on thetype of transaction and the valuation class. Detailed explanation is given in MM module about

valuation class es, movement type etc.

For DGPC, the following material types will be created;

Material Type Material Type DescriptionZEM Electromechanical

ZVH Vehicle

ZTP Tools and Plants

ZOE Office Equipment

ZMA Machinery

ZIT Information Technology

ZGN General Item

ZFS Fire Fighting And Safety

ZCL Civil Item

ZCO Consumables

ZNBW Disposals

ZLI Liveries

ZSP Stationery and Printing

If required, additional valuation classes can be added later.

Following decisions have been taken for material code creation:

Material numbering shall be internal within the configured number range for eac h

material type.

Material codes need to be created for scrap that is to be sold.

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For all stock accounting documents generated from MM, PM and SD, the below mentioned Documenttypes and Posting keys are automatically defaulted.

Document Types

RE - Invoice receipt –MMRV - Billing document - SDWA - Goods issueWE - Goods receipt.

Inventory Valuation Process

With the integration of FI and MM through account assignments, all transactions involving

inventory movements automatically update inventory value and no manual workings is

required.

4.7.2 Inventory Valuation

Material valuation is the determination of the value of a stock of materials.Material valuation will be at

a plant level. Valuation of goods depends on the price control procedure set in the material masterrecord. In the SAP system, material valuation can be carried out on the bas is of either of the following

two methods:

FIFO (First in First Out)

FIFO (first in, first out) stands for the assumption that the first stocks of a material to be received are

the first to be consumed. The value of the stock is therefore, calculated based on the last stocksreceived.

When you run FIFO valuation, the sys tem calculates the FIFO values of the materials concerned. Theresults are displayed in the form of a list that contains the following information:

The closing stock quantity and closing s tock value for each material for the period in question

as well as the FIFO value and the difference between that and the stock value

The net value based on lowest value determination (if you carry out FIFO valuation with

lowest value comparison)

The totals for each valuation area or company code by material stock account

The totals by valuation area or company code

The process of which valuation to be adopted will be taken up at the time of realization.

Period end closing has to be carried out in Materials Management at the end of each period to allowgoods movement in the next period. This is required as the price; stock value and quantity are

managed period wise in the system.

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MAP (Moving Average Price)

In the moving average price procedure (denoted as “V”), the system valuates goods receipts with the

purchas e order price and goods issues with the current moving average price.The system automatically calculates the goods issues upon every goods movement by dividing the

total value by the total stock quantity.

Posting keys for inventory depending on the transaction,

89 - Stock Dr ……..xx,xxx

99 - Stock Cr …….. xx,xxx

The following diagram explains the complete procurement cycle;

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4.7.3 Goods Receipt

Based on the Purc hase order and the actual quantity received, a Goods Receipt (GR) will be raised in

MM module. The following accounting entry gets automatically passed in the FI.

Inventory A/C Dr. (Quantity received * PO rate + any other expenses)

To GR / IR (Goods Receipt/Invoice Receipt)

To Freight Clearing A/c (Where freight is not from the same vendor and built into the

PO as a delivery condition)

4.7.4 Material Return to Vendor

There will be instances where material purchased from vendor may be returned for various

operational reasons.

Material returned to vendor will be recorded in SAP with reference to Goods Receipt or

Purc hase Order in MM.

Stock Returns; the following accounting entry will get generated under MM Module;

…………….xx,xxxGR/IR A/C Dr

/C ……….Stock A xx,xxx

4.7.5 Vendor Invoice Processing

Vendor invoices will be processed based on the invoices received from the vendors. In invoiceverification, vendor invoices are compared with the purchase order and the goods receipt, and are

checked for the price and quantity.

When an invoice is entered with reference to a purchase order, the system suggests data

from the purchase order and the goods receipts for the purchase order (for example,

vendor, material, quantity still to be invoiced, terms of payment, and so on).

The posting of the invoice completes the invoice verification process. The sys tem updates

the purchase order history and Financial Ac counting initiates payment for the open invoice

items. Invoice verific ation creates a link between Materials Management and accounting

document.

4.7.6 Accounting for Goods Movement

Goods movement accounting covers the impact of various types of internal and external goods

movement of SD, MM & PM in FI module.

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4.7.7 Stock transfer between Plants

1. Stock movements (inter plant) are recorded on-line in the system and correspondingaccounting entries are posted automatically.

2. Transferee issues requisition to Transferor.

3. Transferor plant needs to raise the Stock Transport Order.

4. Based on the Stock Transfer Order, sending plant Material Department issue the

material.

5. Posting MIGO with movement type 351 (Stock in Transit)

6. On receipt of goods, receiving plant post MIRO with movement type 101

(Goods receipt against STO)

The following diagram explains the process for inter unit material transfer :

Inter Unit-Material Transfer

Transferee Competent Authority Transferor

N O

Requ es t le tt er

fo r T r ans f er A ppr ov a l

YE S

Pu r c has e S toc kP ur c has e

R equi s it ion t r ans f erRequ is it ion

Or de r

P os t GR/ 1 . M ov e me n t Ty p eP os t M IG O

I R 3 5 1 ( St o ck I n tr a n s it)

Se n d in g P la n t In v en t o ry A /C Cr e d ite d1. M ov e me n t Ty p e 1 0 1 (Go o d s

a n d R e ce iv in g p la n t In v e n to r yRe c e ip t ag a in s t STO)

D e bi te d o n P r o fit C e n te r W is e

Not e:

Th r o u g h D o cu me n t Fu n ct io n a lity

I nv ent or y V alue = T r ans f er va lue + I nc ide nt alCha r ges

GL A cc o u nt f o r

In v e n to r y a n d C le a rin g

A/ C

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4.7.8 Physical Verification

Shortages/excesses will be adjusted based on appropriate authorizations and the following entries will

be automatically passed.

A. Shortage of Material

……xx ,xxxShortage of Material A/c Dr .

…………………….xx,xTo Inventory A/c xx

B. Excess of Material

The excess of material shall be recorded at Zero Value.

4.7.9 Transfer of Service

Inter plant sharing of resources like the manpower, machineries and equipments at times of need areprovided if approved by the competent authority. The receiving plant books as expenses while the

service provider plant books as income or reduce the expenses.

The Inter unit transaction will take place through sales and purchase scenario and entry would be asunder:

1. At Plant 1 ; (Provider of Services)

Customer A/C Dr ……….xx,xxx (PC2)

A/C………………………xx,xxxTo Expenses (PC1)

2. At Plant 2 : (Receiver of Service)

………… …x x,xxxExpenses A/C Dr (PC2)

To Vendor A /C………..xx,xxx (PC1)

The Balance in Inter Unit Account will be Zero at Company Code level due to the Document Splittingactiv ation. The elimination of Revenue as well as Ex penses can be handled through FSV in R/3.

4.7.10 Accounting for Consumption of Material

Issue of Material, Stores and Consumables to Running and Maintenance will be recorded in MM &PM module.

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Consumption of Materials

Materials (including spares) issued to plant and maintenance will be valued at FIFO /MAP basis.

Accounting entry generated automatically at the time of confirmation of P&M order:

Consumption/Running and Maintenance/AUC A/C Dr ….. xx,xxx

Inventory A /C………………………………………………xx,xxx

4.7.11 FSBP Link

S. Main Process CSBP No. FSBP No. Process DiagramsNo.

1 Return of Material 6.F 6.F

2 Transfer of Material 8.A 8.A Annexure 1_FSBP.VSD- 8.A

3. Transfer of Services 8.D 8.D Annexure 1_FSBP.VSD- 8.D


No GAP

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4.8 Employee Welfare Scheme (EWS)

The Employee Welfare Scheme came in to force with effect from June 1, 2008 superseding all or anystaff welfare scheme from the effective date. The EWS was introduced by the management with the

noble objective towards providing immediate financial relief to its employees during the time ofdistress, as a res ult of death of employee, his/ her parents, children, spouse, and parent -in-laws. The

welfare fund will be mobilized through monthly c ontributions from every employee of DGPC. Everyemployee upon joining the corporation shall automatically become the members of the EWS.

Objectives

Provide financial assistance to the members/ their dependents upon the occurrence of the

death of a member or his/her family;

Foster and strengthen c omradeship among its members; and

Promote feeling of compassion, love and affection amongst all corporation employees and

their families.

4.8.1 Master Data

Master records contain the data that is always needed by the company for long term. The master

records control the posting of transactions to G/L accounts and the processing of the posting data.

Before making postings, create a master record in the system for the account.

4.8.1.1 Company Code

A Company Code represents an independent legal accounting entity in SAP. Balance Sheets andProfit/Loss statements required will be created at the Company Code level. In other words, a

Company Code is an organizational unit for which a complete self-contained set of accounts can bedrawn up for external reporting purpose. The process of external reporting involves recording all

relevant transactions and generating all supporting documents required for financial statements.

A separate Company Code DSWF will be created for EWS and this helps to run all necessarytransactions related to EWS separately.

4.8.1.2 Controlling Area

The controlling area is the business unit where cost accounting is carried out. Controlling Areadelimits the company s managerial accounting operations. Organ ization structure is replicated in thecontrolling system. The company code and controlling area uses identical chart of accounts, currency

& business area. Cost centers, internal orders, profit centers are used to classify the controlling area.All inter organizational allocations refers to objects within the same controlling area.

DSWF will have DW01 as its Controlling Area.

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4.8.1.3 Profit Center

Profit Centers represent separate areas of operation/locations within an organization and can be used

across Company Codes.

They are balancing entities which are able to create their own set of financial s tatements for internalpurposes.

Following are the profit centers defined for DSWF Company Code;


DGWF DGPC Welfare Fund

DHWF DHPC Welfare Fund

4.8.1.4 Cost Center

Cost Center in SAP is an organizational unit within a company that is used to track costs within the

organization. The Cost Center is the lowest node of the hierarchical structure.

For DSWF, for the purpose of c apturing costs for GL expenses, the following cost centers have been

defined as below;

1. DGFINA0001 = Finance Division2. DHFINA0001 = Finance Division

4.8.1.5 Chart of Accounts

The Chart of Accounts contains the G/L acc ounts that are used by the entire corporate group. This

allows the company to provide reports for the entire corporate group.

The naming convention of GL Accounts is done in such a way that the user can identify whether theGL is Asset or Liability or Income etc.:

1. 100000000 : Asset

2. 200000000 : Liabilities3. 300000000 : Owners’ Equity

4. 400000000 : Income5. 500000000 : Expenses

6. 600000000 : Clearing Accounts7. 900000000 : Initial Uploads

COA 3001 will be assigned to DSWF Company Code.

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The following are the GL Groups;

SL No. General Ledger Groups Number Range

1 Assets From To

Cash & Bank Balances 1010100001 1010199999

Advance/Loans To Members 1010200001 1010299999

Prov for Loan & Adv. 1010210001 1010219999

Accrued Interest 1010300001 1010399999

Short -Term Investments 1020100001 1020199999

Long- Term Investments 1020200001 1020299999

2 Liabilities From To3 Owners Equity From To

Share Capital 3010100001 3010199999

Reserves & Surplus 3010200001 3010299999

4 Income From To

Contribution from Members 4010100001 4010199999

Income from Short Term Investments 4020100001 4020199999

Income From Long Term Investment 4020200001 4020299999

Expenses From To5

Payment To Members 5010100001 5010199999

General Administrative Expenses 5020100001 5020199999

Clearing Accounts From To6

Clearing Accounts 6010100001 6010199999

Initial Uploads From To7

Initial Accounts 9010100001 9010199999

4.8.1.5.1 Currency

For each Company Code a currency must be specified. Accounts are managed in the Company Codecurrency. All other currencies are indicated as foreign currenc y. The system converts the amounts

posted in a foreign currenc y into the Company Code (Local) currency. The currency defined in theCompany Code is known as the local currenc y within SAP.

EWS will use Bhutan Ngultrum i.e. BTN as Local Currency.

4.8.1.5.2 Fiscal year variant

To separate business transactions into different periods, a fiscal year with posting periods has to bedefined.

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The fiscal year is defined as a variant which is assigned to the Company Code. Standard

fiscal year variants are already defined in the s ystem and can be used as templates. The

fiscal year variant contains the definition of posting periods and special periods.

Special periods are used for postings which are not assigned to time periods, but to the

process of year-end closing.

The fiscal year will cons ist of maximum of 12 posting periods and 4 special periods.

Fiscal year is defined as fiscal year variant which is then as signed to Company Code. One fiscal year

variant can be used by several Company Codes. The following are the available options for definingfiscal year variants:

Fiscal year same as calendar year.

Fiscal year differs from calendar year (non-calendar fiscal year). The posting periods can

also be different to the calendar months.

The fiscal year variant that would be used by EWS will be K4 (Jan to Dec + 4 Special periods).

4.8.1.5.3 Employee Master

Employee master data contains all relevant information of employees like Name, Employee ID,Grade, Address, Contact Details etc. Employee Master Data will be created under DGPC HR Module

by the HR Department. FI Module creates these employees as Employee Vendor under the EmployeeVendor Group with the same Employee Code created by the HR Department.


EWS is a separate fund maintained at Corporate Office for the welfare of the DGPC Staff. The

monthly contributions as per the DGPC Welfare Guidelines are deducted from the payroll anddeposited to bank account maintained and operated separately from DGPC's.

4.8.2.1 Deduction from Payroll

At the time of payroll run in DGPC Company Code, employee contribution will be deducted based on

employee grade or category. The deduction made by DGPC from employees will beposted/transferred to SWF A/C in DGPC by the system automatically. User has to post a manual JV,

to transfer the collected amount after payment made on claims if any, from DGPC to SWF.

Employee Contribution:

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Grade / Category of the Employee Contribution Amount (in Nu.)

M and above 250.003

O S 200.00–2 1

–GSC O 150.002 3

The following diagram explains the deduction of EWS from DGPC and how the transfer ishappening to SWF;

Employee welfare Scheme

S TAR T P ay ro ll R u n I n t im at i on t o FI

D e d uc ti o n

f ro m Sa la ry

Au t om a ti cS al ar y A / C D r . P ay me nt To S alar y P ay ab le A / C Dr .Po st i ng inT o S ala r y P ay a bles

Emp l oy ee s T o B a nk Out goi ng A /CFIT o S WF

JV P os ti n g

(O ut Go in gS WF A /C Dr .

P ay me n tTo B an k

P os ti n g)

C he q ue I ssu eI nt i ma t io n t o

t o SWF E N DB an k

C o mp a ny Co d e

STAR T

JV P os ti n gB ank A / C Dr .

(I n co mi ngDG P C SW F

P os ti n g)

C o nt i nu e

Journal entries in the books of DGPC

1 At the time of Payroll Run This transaction will be triggered from HR). ;(

Salary A/c Dr xx,xxx

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To Salary Payables A/c xx,xxx

To Welfare Scheme A/c xx,xxx

2. Transferring the deductions (net) made from the payroll from DGPCCompany Code to SWF Company Code (This transaction will be posted fromCorporate Office)

Welfare Scheme A/c Dr. xx,xxx

To Outgoing Bank A/c xx,xxx

Journal entries in the books of EWS

1. GL posting in SWF Company Code for Incoming Payment (This transactionwill be posted from Corporate Office)

Incoming Bank A/c Dr. xx,xxx

To Welfare Scheme A/c xx,xxx

4.8.2.2 Release to Beneficiary.

As and when claimant raise c laim on occurrenc e of distress, as a result of death of employee, his/ herparents, children, spouse, and parent-in-laws, the claim will be settled from DGPC Company Code

and adjusted later by transferring the fund between DGPC and EWS or adjusted from thecontribution.


1. At the time of advance claim from employees ;( This transaction will betriggered from HR),

Staff Welfare Advances A/c Dr. xx,xxx

To Salary Payable A/c xx, xxx

2. At the time of release of payment from Finance; (This transaction will betriggered from respective Plants),

Salary Payable A/c Dr. xx,xxx


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3. Settlement of advances at the time of final settlement; (This transaction willbe triggered from HR),

Welfare Scheme Dr. xx, xxx

To Staff Welfare Advances A/c xx,xxx

To Salary Payable A/c (if the final claim is more than advances)

4. At the time of balance payment if the claim is more than the advance;

(This transaction will be triggered from respective plants),



4.8.3 Loan to Employees (Welfare Fund Members)

The providing of loan to employees out of welfare fund account shall come into effect in future with

the noble objective of providing immediate financial relief to its employees at times of need and alsoto enable the funds to grow and be self sustainable in the long run.


1. At the time of running of off cycle payroll from HR; ( This transaction willbe triggered from HR),

Staff Welfare Advances A/c Dr. xx,xxx

To Salary Payable A/c xx,xx x

2. At the time of release of payment from Finance ;( This transaction will betriggered from respective plants),



3. On refund of loan amount from SWF Company Code ; ( This transactionwill be triggered from Corporate Office)

Incoming Bank A/c Dr. xx ,xxx

To Staff Welfare Advances A /c xx,xxx

4. At the time of deduction of loan and instalment from payroll ;( This

transaction will be triggered from HR at the time of payroll run),

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Salary A/c Dr xx,xxx

–To Employee Liabilities Others A/c xx,xxx

5. On transfer of the loan amount and int erest deducted from payroll toSWF Company Code; ( This transaction will be triggered from CorporateOffice)

Employee Liabilities – Others A/c Dr xx,xxx


Journal entries in the Books of SWF:

1. On refund of loan amount to DGPC ;( This transaction will be triggered from

Corporate Office)

Employee Loan A/c Dr xx,xxx.


2. On receipt of deductions from employees (Principal + Interest) ;( This

transaction will be triggered from Corporate Office),

Incoming Bank A/c Dr. xx,xxx

To Employee Loan A/c xx,xxx

To Interest Income A/c xx,xxx

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NOTE: - Reports related to employee loans, deductions, no. instalment paid, loan details of employee

wise, etc can be generated from HR module.

4.8.4 FSBP Link


1 Deduction From Payroll 14.A 14.A

Annexure 1_FSBP.VSD- SWF2 Release to Beneficiary 14.B 14.B

4.8.5

o The following reports related to EWF will be generated from DGPC & SWF Company Code.

1. Contribution per employee

2. Deduction by employee wise

3. Claims details like no. of claims, amount, reasons etc.

4. Employee wis e loan details

5. Loan installment payment (Employee wise)

4.9 Controlling

Controlling is a Standard Module provided by SAP to c apture organization s cost related information.The information available like which division is performing well in terms of cost by capturing cost of

that division in the form of cost center will help management to take decis ion on whether to continuewith the division. System will provide all c ost and revenue related information cost centre and profit

centre wis e respectively. It facilitates coordination, monitoring and optimization of all processes in anorganization. This involves recording both the consumption of production factors and the services

provided by an organization.

Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. Thedata flow between the two components takes place on real time basis.

Therefore, all cost relevant data flows automatically to CO from FI. At the same time, the systemassigns the costs and revenues to different CO account assignment objec ts, such as Cost Centres,

Business Processes, Projects or Orders. The relevant accounts in FI are managed in CO as costelements or revenue elements . This enables to compare and reconcile the values from CO and FI.

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The following are the basic requirements of Controlling Module for DGPC;

Cost Center Accounting

Profit Center Accounting

Internal Orders


1. Costs are tracked at the origin.

2. Responsibility is fixed for costs incurred.

Cost Control will be achieved through Cost Center Accounting (CCA). The lowes t level of control willbe the cost center. All costs when posted in FI will have a parallel entry to the respective cost centers

in CCA. It is possible to plan costs at the cost center level and check the variances, and variances will

be on Actual against Plan or Actual against Budget. If Cost Centre planning is done in system, thenvariances will be against the actual for the month end. The reports can be displayed at anysummation levels of the organization structure hierarchy.

Cost Center output will be measured as Cost Center Activities and activity type price will be calculated

for plan and actual.


Profit Center Accounting (PCA) evaluates the profit or loss of individual, independent areas within anorganization. These areas are responsible for their costs and revenues. Plants are classified as profit

centers to get complete financ ial statements (i.e. Profit & Loss Accounts and Balance Sheets) andother c ritical reports for each plant separately.

Apart from company level profits – location wise profits can be arrived at on a profit center level. Each

profit center will hav e a profit center head, which will be responsible for the revenue & costs of theprofit center.

Reports will show individual profitability of each profit center. Apart from the profit and loss accounts,

balances in the balance sheet accounts will also be available profit center wise.

Drill down is also available in many of the PCA reports to navigate right through the originatingdocument in FI.

Internal Order

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Internal Order is a Cost Object which can capture cost for Management Reporting. Cost Object is atool against which actual cost are captured .Internal Order, Cost Centre, WBS Element, Sales Order

are the examples of Cost Object whic h are used to c apture costs for Management Reporting.

There are two types of Internal Orders in SAP:-

1. Real Internal Order:Real Internal Order is used to capture the cost of special events/occasion for reporting to

management and to further settle the cost to respective Cost Center / Asset aftercompletion of the Event/ Occasion.

During booking into real internal order, the real posting goes into Real order and if a cost

center is also entered, only statistical entry will flow into cost center.

While capturing real time cost if one is not clear about cost object, real internal order canbe used as a cost object then settle the cost on actual cost centre.

2. Statistical Internal Order:Statistical Internal Order helps in parallel recording of expenses in addition to the booking

in specific cost center. In this case, the real entry flows into the cost center and onlystatistical entry flows into the statistical internal order.

The Statistical order cannot be settled as it contains only statistical postings since the real

posting is already gone to the desired cost center.

With the help of Statistical Internal Order, analys es of some of the expenses GLs couldbe carried out.

Based on the nature of posting (FI postings), DGPC will decide and choose the expense GLs for

which the statistical internal orders are to be created. At the time of manual posting, the statis ticalinternal orders can be booked into in addition to the cost center (CO object). This will avoid the period

end activity of transferring cost data from internal order to cost center.

DGPC business is not intending to create real orders as on date. If requirement is realized in futurecourse of time, it can be created. As per the present requirement, the statistical order relevant

transactions will come from PS, PM, Investment Orders coming from AA which will originate outsideCO.

Geographical Coverage

The following plants are within the scope of SAP implementation at DGPC:

Plant Other DetailsBHP Basochhu Hydropower Plant

CHP Chhukha Hydropower Plant

KHP Kurichhu Hydropower Plant

THP Tala Hydropower Plant

CO Corporate Office

Functional Scope

The Controlling System Document contains the configuration details of the Controlling Module as of the

document release date and also describes briefly the maintenance required when there are changes inSAP Organization Structure, Processes and Master Data.

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The objective of this document is to provide important configuration details of the module to enable the

application system administrator(s) / authorized users to further configuration, if required any. Anychanges in the configuration can affect any of the other CO sub-modules, as such care should be taken

to understand the implications before any changes are made.

The following Controlling sub-modules will be implemented during this implementation:

Cost & Rev enue Element Accounting

o Master Data

o Actual Postings

o Information System


o Master Data

o Planning

o Actual Posting

o Period End Processing



o Basic Settings

o Master Data

o Actual Postings


Internal Orders

o Master Data

o Budgeting

o Postings

o Period End Processing


4.9.2 Module Integration

CO is integrated with FI for all cost related transac tions.

Sales related data are transferred from SD.

Material related data are captured from MM.

Depreciation and Asset related data are transferred / captured from Asset Accounting.

PM orders are settled from PM.

Projects/WBSs are settled from PS.

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4.9.2.1.1 Integration with FI

The Controlling Module is fully integrated with FI module. All the c osts captured in Controlling will be

passed from FI by way of GL accounts.

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FFiinnaanncciiaall CCoonnttrroolllliinnggAc c o u ntingAc c o unting

(In c llu ddiin gg P ro fit Cee n trre

•Cost Centre AccountingAc c o u n tin g )Ac c o u n tin g )

•Internal OrdersBalanc e

S he e tS he e tAc c o untsAc c o unts

Addjjus tmeennttAc c o untsAc c o unts

Inccoommee S ttatteemmeennt Prrimmaryy Coss ttAc c ou nts Ele m e ntsAc c o un ts Ele me n ts

•General Ledger •Income Statement &•Accounts Payable Revenue Accounts•Accounts Receivable•Fixed Assets

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All the income statement accounts will be created as Primary Cost Element/ Revenue Element.

4.9.2.1.2 Integration with SD

All the rev enues c aptured in Sales and Distribution(S&D) will be passed to Controlling Module through

profit centers by assigning profit center fields to material master. This will help analyze profitabilityregion wise.

4.9.2.1.3 Integration with MM

All goods movements and price adjustments in MM also gets reflected in FI and CO via the relevant

account assignment and cost objects.

4.9.2.1.4 Integration with PM

The broad level integration with PM is for,

Cost Center Activity Planning

Calculation of Variances (Variance for Standard to Actual).

All the maintenance costs will be captured from Plant Maintenance Module by settling the Plant

maintenance order. Once the order is settled, the cost center will be debited with the maintenancecost.

4.9.2.1.5 Integration with PS

All the cost will be captured from PS Module through WBS element then settled to AUC and then final

Asset.

In addition to Financial Application Module, following module integrations are required,

MM - for Inventory Values & Material Transactions.

SD - for Sales Data.

–Asset Accounting Asset Values & Depreciation.

PM - Orders from PM.

–PS Projects & WBS.

4.9.3 Organizational Structure –Controlling.

In the R/3 s ystem, the user can use several structures to represent the Organizational Structure of theentity from the point of view of Financial Accounting, Controlling, Materials Management, and Sales

and Distribution. The Organizational Structures form a framework in which all business transactionscan be processed. An Organizational Structure consists of several organizational levels, which are

used by different functional groups within an organization. The organizational levels relevant toControlling (CO) are given below.

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Operating Concern1000

Controlling AreaDP01

Company CodeDG01

Profit Profit Profit Profit ProfitCenter Center Center Center Center

DG01BS01 CH01 KU01 TA01

Cost Centers

4.9.3.1.1 Operating Concern

It is a SAP organizational unit, where market segments are evaluated for their profitability. It

represents a part of the organization for which the sales market is structured in a uniform manner.

By setting off the costs against the revenues, operating profit can be calculated for the individual

market segments, which are defined by a combination of classifying characteristics (such as productgroup, customer group or distribution channel). The market segments are called profitabilitysegments.

Multiple controlling areas can be assigned to one operating concern.

Operating Concern is the highest level in CO organizational structure and can span across multiple

legal entities (Company Codes) within a group.It has been decided to have one operating concern for DGPC.

As the fiscal year for DGPC is from January to December, the operating concern will have the same

fiscal year variant of Jan to Dec.

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The decided Operating Concern is: OP01

Attributes of Operating Concern:

Operating Concern OP01

Controlling Area Code DP01

Controlling Area Name Druk Green Power Corporation Limited

Type of Profitability Analysis Costing Based

Currenc y BTN

Fiscal Year Variant K4 Jan-Dec

Company Code Currency Active

Create data structure for operating concern. Data structure definition controls which characteristics

and value fields will be used in operating concern.

Fixed characteristics lik e Company Code, Profit Center, Customer Group etc, are part of the operatingconcern, which cannot be changed or deleted. User defined characteristics can be added.

Creation of value fields are for amounts and quantities. There are no fixed value fields. Value Fields

are the fields which can be expressed in terms of value (Gross price, Cash discount, Material Price)However, we c an choose from the value field catalogue.

Once characteristics and value fields have been decided, the next step is to save, activate and

generate the operating concern.

4.9.3.1.2 Profit Centers

Profit Centers represent separate areas of operation/locations within an organization and can be usedacross Company Codes.

They are balancing entities which are able to create their own set of financial s tatements for internal

purposes.

Movements in value entered in Financial Accounting are assigned to profit centers. This entity is usedfor segmental reporting by drawing P&L statement and Balance Sheet for a segment (typically a line

of business or geographical location).

Following are the profit centers for DGPC







4.9.3.1.3 Controlling Area

The Cost Accounting system uses controlling area as an Organizational unit. Controlling area delimitsthe company s Managerial Accounting operations. Organization structure is replicated in the

controlling system. The Company Code and Controlling area use identical Chart of Accounts,

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Currenc y & Business area. Cost Centers, Internal Orders, Profit Centers are used to classify thecontrolling area. All inter Organizational allocations refer to objects within the same controlling area.

DGPC will have DP01 as its Controlling Area.

The following are the configuration values;Controlling area DP01

Name DGPC Controlling Area

Assignment control Cross Company-Code Cost Accounting

Currenc y type 10 Company Code Currenc y

Currenc y BTN

Chart of Accounts 3000

Fiscal year variant K4 – Jan to Dec & 4 special periods

Cost Center Standard Hierarchy DGPC

Activate Components/Control Indicators

Controlling area DP01

Fiscal year 1890 To 9999

Cost Centers 1 (Component active)

Order Management 1 (Component active)

Commitment Management 1 (Component active)

Profit Analysis 1 (Component active)

Activity Based Costing Component not active

Projects X (active)

Cost Objects X (active)

Other Indicators

All Currencies X

Variances X

CC Validation X

–Assignment of Company Code to Controlling Area DP01

Company Code Company NameDG01 Druk Green Power Corporation Limited

The Controlling area settings are defined here. The deciding factor for setting basic data is the

organization of cost accounting, i.e. the assignment of Company Codes to a Controlling area. Thisdecision, i.e. assignment of Company Code to Controlling area, is irreversible as soon as master data

is created.

The way Company Code and Controlling area are assigned affects the currency settings, i.e.Currenc y Type, Currency, and Currency updating, in addition to the Controlling area Chart of

Accounts and the fiscal year variant.

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Further, basic data of the Controlling area are the Currency, Fiscal Year Variant & StandardHierarchy. The c ontrol indicators activate or deactivate certain CO components or functions according

to fiscal year.At DGPC, the Company Code is equal to the Controlling area.

The fiscal year variant will be K4 (Jan-Dec) for the Company Code DG01 and for Controlling area as

well.

4.9.3.1.4 Version

Vers ions enable to have independent sets of planning and actual data.

In planning, versions can be used to configure alternative scenarios based on different assumptions.For example, the different versions can represent different employment markets, price and wage

increases, or sales programs.

Configure the most likely scenario in version 1000. The plan data entered there forms the basis forcalculating planned prices for activity types and determines the rates with which activities containing

actual amounts can be settled. Version 1000 also contains all actual data postings. The plan andactual data for version 1000 can be used in plan/actual comparisons and variance analysis.

For DGPC, standard version 1000 will be used which will save data for both plan and actual.

4.9.3.1.5 Cost Centers

Cost Centers are responsibility areas for costs within the organiz ation. Cost Centers are logical unitsor functional areas or locations of a company. Before Cost center is created, a hierarc hical structure

(called Standard Hierarchy) is set up and assigned to the Controlling area. Once created, it cannot bedeleted or c hanged in Controlling area. The Cost center is the lowest node of the Hierarchical

Structure.

In DGPC, a standard hierarchy (DGPC) is to be assigned to the controlling area DP01 and costs are created considering the company s overall operational stcenter ructure.

4.9.3.1.6 Activity Type

Activity Types classifies the activities produced in the cost centers in the controlling area.

To plan and allocate the activities, the s ystem record quantities that are measured in activity units.

Activity Quantities are valuated using a price (allocation price). The prices of the activity type of a cost

center can be either entered manually or calculated by the system based on the c osts allocated to the

activ ities.

In DGPC, conversion costs are allocated to products through activity types. Activity types measures

the quantity output of the cost centers.

At DGPC, the following activity type will be defined,

Unit ofActivity Type Description Measures

AUXMNT AUXILIARY MAINTENANCE Hours

AWMMTN VEHICLE AND MACHINARY MAINTENANCE Hours

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BLDDIV BUILDING MAINTENANCE Hours

CAPMTN CAP MAINTENANCE Hours

CCVMTN CHK CIVIL MAINTENANCE Hours

CIVDIV CIVIL MAINTENANCE Hours

CVLMTC CIVIL MAINTENANCE Hours

CVUACT CIVIL MAINTENANCE Hours

DAMCIV DAM CIVIL MAINTENANCE Hours

DAMMTC DAM MAINTENANCE Hours

DAMMTN DAM MAINTENANCE Hours

DIAMA DIELE&MATL ANALYSIS Hours

DISDIV DISTRIBUTION SYSTEM MAINTENANCE Hours

ELEMNT ELECTRICAL MAINTENANCE Hours

ELEMTC ELECTRICAL MAINTENANCE Hours

GENMTN GENERATOR MAINTENANCE UNIT Hours

HRTMNT HRT MAINTENANCE Hours

MCHMTN MECHANICAL MAINTENANCE Hours

MECMTC MECHANICAL MAITNENACE Hours

MTCACT POWER PLANT MAITENANCE Hours

PCVMTN PLING CIVIL MAINTENANCE Hours

RABMNT ROADS AND BUILDING MAINTENANCE Hours

SYDMTN SWITCHYARD MAINTENANCE UNIT Hours

TCVMTN TSL CIVIL MAINTENANCE Hours

TURMTN TURBINE MAINTENANCE UNIT Hours

VAMMTN VEHICLE AND MACH MAINTENANCE Hours

VEHMTC VEHICLE AND MACH MAINTENANCE Hours

VIATA VIBR&THER ANALYSIS Hours

Activity types are created in general and not machinery/resource specific . General activity type canbring out different combinations with different resources. These values can be defined in Realization

Phase.

4.9.3.1.7 Profit Centers

Profit Center is a management oriented Organizational unit in SAP used for internal c ontrolling

purpose. It enables to analyze the profitability of the responsibility areas and to delegate responsibilityto such units.

Profit Center will be of Geographical Areas (Regions, Sites, and Offices), Functional Areas

(Production, Sales) or Products (Products or Product lines).

The Standard Hierarc hy of the profit centers will be DGPC.

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DGPC

BS01 CH01 KU01 TA01DG01Basochhu Hydro Chhukha Hydro Kurichhu Hydro Tala Hydropower

Corporate Officepower Plant power Plant power Plant Plant

The List of Profit Centers of DGPC: -






4.9.4 Business Process

4.9.4.1.1 Cost & Revenue Element Accounting

There are two types of cost elements:

1. Primary Cost / (Revenue) Elements

Primary c ost and Revenue element form the link between Financial Accounting and Cost Accounting.Each of these cost elements have a G/L account backing.

Business will create the Primary Cost Elements at the time of creating the G/L ac count with the

appropriate cost element category (i.e Primary Cost (1), Revenue (11), Sales Deduction (12) etc.)

In DGPC, Company Code DG01 is assigned to controlling area DP01.

Primary Cost Element in DP01 Controlling area c orresponds to a Revenue and Expense G/Laccounts in General Ledger. General Ledger accounts are defined by Chart of Accounts of the DGPC

Company Code.

Once the GL account is created, Primary Cost Element is created in CO under the Controlling area byentering validity period, description and cost element category for it.

All Primary Cost Elements must have G/L backing.

Cost Element Category

Cost Element Category is used to determine the relevant transaction of a cost element. For example,

Cost Element Category 1 is for primary cost postings, Cost Element Category 11 is for revenuepostings from sales accounting and 12 are for sales deductions.

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Cost of Goods Manufactured (COGM), WIP Offsetting & Price difference accounts should not be

created as cost elements.In case of any addition to Expenses & Revenue GLs, Cost element will be created in the same screen

immediately after creation of GL Account.

Examples of Cost elements with Category: -

Category Cost Element Name (Examples)1 Telephone Expenses, Consumption of Material, R&M Expenses.

11 Sales Revenue, Rent Receipt

12 Discounts, Rebates

22 External Settlement

Codes & Descriptions of Primary Cost & Revenue Elements will be same as that of corresponding GL.

There would not be any default account assignment in Cost Element Master Data. However, thederivation of cost center default account assignment functionality (OKB9) will be used, which is a

customization activity.

2. Secondary Cost Elements

Secondary Cost Elements are used to carry costs from one cost object to another within Controllingmodule without affecting FI postings. In other words , Secondary Cost Element postings occur in CO.

Accordingly, secondary cost element will not appear in FI Chart of Accounts. i. e. Secondary CostElements does not have G/L backing.

The following secondary cost elements have been created for DGPC.

CostElement

Cost Elements Description Category

921000000 Internal Settlement 21

921000023 PS Settlement –Others 21

943000001 Labour Activity 43

961000001 Earned Value Analysis 61

3. Cost Element Group.

Cost Elements are grouped for the purpose of analysis, reporting, allocations (distributions &assessments), creation of allocation structures & PA transfer structures. Business can also create

new cost element groups as and when needed for above purposes.

4. Cost Center Standard Hierarchy & Cost Centers.

Once cost elements are set up, the entered cos ts are assigned to the organizational areas where they

are incurred.

Cost Centers are responsibility areas for costs within the organization. Cost Centers are logical unitsor functional areas or locations of a company.

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Before Cost Center is created, a hierarchical structure (called Standard Hierarchy) is set up andassigned to the controlling area. Once created, it cannot be deleted or changed in Controlling Area.

The Cost Center is the lowest node of the hierarchical structure.

In DGPC, a standard hierarchy (DGPC) is to be assigned to the Controlling Area DP01 and Costs are created considering the company s overall operational structure.Center

It is suggested to k eep the no of Cost Centers minimum to the level it can be managed. If CostCenters are opened at the further lower level but no data (plan/actual) is flowing to many of them,

then it is not advisable to increase the number of Cost Centers.

On the other hand, it should also be kept in mind that Cost Centers are to be opened at lowest levelfor which management needs break-up of cost and at the same time it is also practical to book

expenses at that level.

In view of above, the following Cost Centers are finalized for DGPC.

–C OS T CE N TR E DGP C

He ad sO ff ice o f HR & F in an c e &

Co r po r at e Au to I nt er n alP ro je ct o f M at er ia l B oa r d ofS ec u ri ty Fi re Ma n ag in g In ve st m en tAd m in .A ff air s w o rk sh o p Au d itD ep tt M an ag m e nt Dir ec to r sP lan t s

Dir ec to r De pt t. D ep tt .( Of fi ce )

M at er ia lR es ea rc h Co r p or a teCo r p or a te Co rp o r at eCe n te rs o f BHP

An d Of fi ce Ad m in M a na g em e ntCo . M D Of fic e P r o je ct Of fi ce V e h icl es E q ui pm e n tsE xc ell en ce(CO )De ve lo p -S ec u ri ty Of fic e F in an ce

m e nt V eh ic le - M ac h in er yCHP M at er ia l

Gu e st Co . BHP BHPBHP BHPP r o je ct M a na g em e ntCo E V a- Dis as te r Ho us e A dm i nCo . F ir e

S ec ur it y P l an n in g F in an ce ( BHP )T A Ma n ag e- - CO . . V eh ic le - M ac hi ne r y&

m e n t KHP COCH P

D es ig n M at er ia lCHPCH P

CoE D I- BHP A dm i n Ma n ag em e n tB HP F ir e F in an ce V eh ic le -B us in es s M ac hi ne r yS ec u ri ty M A ( CHP ) CHP

KH PDe ve lop - T HPP ro je ctm en t Co ns tr u ct KHP V eh ic le -

M ac hi ne r yKHP Co E He R F in an ceC HP F ir e - io n Gu e st KHPT HPS ec u ri ty BHP S to r es & Ma te r ialF W Ho us e

Co r po r at e A dm i n Rec ei pt Mg t.V eh ic le -- BHP

P la n ni ng ( P /lin g ) (C HP )N ika ch h u T ala T HPT HP K HP F ir e P ro je ct CH P HR & F in an ce

S ec ur it y Co E CP M at er ia lAd m in

M an a ge m en t

( KHP )ICTTH P F ir e

CHP M at er ia lGu es tHR &

Ma n ag em e n tHo us eA dm

IC T- BH P ( T HP )

S to r es &Ma te r ialG ue st Gu e st

IC T- CH P Rec ei pt sMg t (T HP )Ho u se - Ho us e- (P l in g)

S i lig . C HP

I CT - C OT HP HR &

A dm i n KH P Ad m in

ICT - KHPGu es t

K HPT HP HR & G ue st Ho u se Ho us eBH U

Ad m in .Ad m in - T HP - K HP .

ICT - TH P

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DHPC (Cost Center)

Construction DivisionFinance Division Administration Division Board of Directors

(DGM - Office)

Head Works Division ICT Unit Environment Unit

Power HouseFinance Division Liaison Unit

Division

HRT Division

Contract Division

Quality Control

Division

Infrastructure

Division

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Context Diagram for Cost Center Accounting

MM Module FI Module

Indirect Material

Consumption GL Posting withCost Centre

Cost CentreAccounting

Cost Centre Assessment of

CostsDepreciation Profitability

Analysis

(CO-PA)

AM Module

5. Cost Center Group

Each Cost Center in SAP can belong to one or more than one Cost Center groups for differentpurposes. The Cost Center groups are defined for allocation cycle and reporting purposes.

Besides standard hierarchy, DGPC needs to create Cost Center groups on the basis of the

functionality. In DGPC, the Cost Center groups are HR, Operation and Civil etc.

6. Assessment of Cost Centers

Assessment Cyc le is created to transfer primary and secondary costs by way of secondary cost

elements from a s ender cost center to receiving cost centre.

This functionality will be used for allocation of cost like Servic e Cost Center Costs over OperationCost Centers.

In DGPC, assessment will be created to transfer/allocate primary costs by way of secondary cost

elements from a sender Cost Center to receiving Cost Center based on tracing factors such as PlantCapacity or Employee Numbers etc. In assessment, original cost elements of the sender cost object

will remain at the sender cost object and a secondary cost element (as defined in configuration ofassessment cycle) will carry the amount to the receiver cost object on the basis defined in the c ycle.

However, the process of alloc ating the Corporate Office Cost and Revenue to respective plant for thepurpose of tariff determination without affecting the profit centers reporting may require to be

developed.

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Actual Value Flow to Cost Center

MM SD FI CO

VendorInvoice

CostAccounting

Posting toDocument

Cost Center

Goods

Issue

Expenses(including

depreciationposting)

Revenueposting to

Sales Billing AccountingDocument Profit

Centers

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Period End Closing

Cost Centers

Start

RunDefine

AllocationAllocation

CycleCycle

(Test Run)

Check Log Correct thefor Errors error

If any errors YES

NO

RerunAllocation

Cycles-Posting Run

RunReports

End

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Description of Improvements

S.No Description of improvements CSBP pain area addressed Remarks1 Ass essment is possible in the system.

2 Online reporting with variousCombinations

3 Online capturing of cost on CostCenters.

4.9.4.1.2 Profit Center Accounting

Profit Center Accounting (PCA) helps to analyze the operating results of the internal organizationalunits. Profit Center Reporting is used to control the res ults of the individual areas of responsibility

(profit centers) within the organization.

Broad objective of Profit Center Accounting in DGPC is to get Profit and Loss ac count and BalanceSheet for each profit center in FI for analysis, reporting and consolidation purposes.

Profit Center Standard Hierarchy

The Standard Hierarchy is a profit center group or tree structure, which contains all the profit centersin one Controlling Area. The Standard Hierarchy us ually corresponds to the organizational structure

used in PCA. At the time of creation of a profit center, profit centre must be assigned to a node of thestandard hierarchy. The standard hierarchy is used in the information system, allocations and various

planning functions.

o In DGPC, standard hierarchy of the profit centers will be DGPC.

Creation of Standard Hierarchy is a customizing activity. It is created in „Maintain ControllingoArea Settings in P CA.

o As new GL is activated, PCA need not be activated in Controlling Area.

o The Standard Hierarchy can be changed in Easy Access Screen.

Evaluation of P & L Ac count and Balance Sheet are done by FI, even though Profit Centers are

created by CO as the data mainly flow from FI.

Assignment to Company Code will determine from which Company Code the profit center will receivepostings.

Create Profit Centers

In DGPC, all the Plants will be created as Profit Centers.






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However, as DGPC is going for profit Center wise Profit & Loss Accounts and Balance Sheets, profit

center s hould be assigned to the following objects : -

1. Material Master2. Projects

3. Cost Centers4. Internal Orders

5. Maintenance Orders6. Fixed Assets (through Cost Center)

7. Sales Orders

These assignments s hould be strictly followed.

Like cost centers, time based profit centers can be defined.

Time-based fields let to change information in the profit center master record, such as the personrespons ible for the profit center at a specific point in time, without having to create a new profit center

and without losing any information about the previous person responsible.

Unlike cost centers, profit centers need activation after creation as they are created in inactive status.

Profit Center Group

A Profit Center Group is an alternative hierarchy to the Standard Profit Center Hierarchy. In addition to

the standard hierarchy for controlling area, alternative profit center hierarc hies can also be creatednamely "Profit center Groups" for use in the information system, allocations and planning. In contrast

to the standard hierarchy, these profit center groups do not have to contain all the profit centers in thecontrolling area. On the c ontrary, profit center groups let to select only certain profit centers and

reorganize them to allow more flexibility.

DGPC will create profit centers for its Plants and Corporate Office, hence no grouping is needed.

Flow for Profit & Loss Account

For billing documents, profit center will be deriv ed from the material in the s ales order.

For any goods movement, profit center will be derived from the material and plant

combination.

For all FI direct postings, profit center derivation will be through cost centers.

For asset related postings, profit center deriv ation will be through cost center assigned to the

asset master. This will be based on the DGPC Cost Center Hierarchy and different cost

center for different divisions.

For other P&L Accounts, profit center will be derived through cus tomized automatic account

assignment.

In brief, for all expenses, data flows from cost center to profit center and revenue profit center will be

derived from material master.

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Flow for Balance Sheet Items

Flow from Asset Management: Profit center will be derived through the cost center or internal

order information in the asset master.

Transfer of Material Stock: For inventory values profit center will be derived from the

Material/Plant Combination.

Flow from Accounts Payable and Receivable: Receivables are divided according to the

corresponding revenue line items and assigned to the profit centers through document

splitting in FI module. Payables are posted to the profit center through the material ordered in

purchase orders.

Other Balance Sheet items will be derived through Document Splitting Structure in FI module.

Flow from Controlling - Period End Closing

For allocations in Cost Acc ounting (distribution or assessment) the following records are updated in

Profit Center Ac counting:

Whatever allocation will happen in system will affect profit c enter balance als o.

If allocation is inter profit centre s, then balances of respective profit center will be affectedentre sand if allocation is intra profit c , then there will be no effect on balances.

In case of any inter profit center assessment, system will use document splitting configuration

to derive the profit center.


S.No Description of improvements CSBP pain area Remarksaddressed

1 Online reports are availableat Profit Center Level

System will automatically derive Profit

2 Center for every transactional entry in

system

4.9.4.1.3 Internal Orders

Internal Order is a Cos t Object which can capture Costs for Management Reporting.

In DGPC, the Internal Orders will be Plant specific (Profit Center Specific).

Order types (Plant Specific) will be different and will be driven by the requirement of Account Heads.

Internal Orders are of two types,

1. Real Internal Order

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2. Statistical Internal Order

1. Real Internal Order:

Real Internal Order can be used to capture the cost of special events/occas ion for reporting to

Management and further after completion of the event, the costs can be settled to respective CostCenters.

During booking into Real Internal Order, the real posting goes into Real Order and if a Cost Center is

also entered, only statistical entry flows into Cost Center.

If initially the appropriate receiver (Cost Center) of the costs is not known, the costs are s ettled to RealInternal Order. After completion of the event, the Costs are then settled to respective Cost Centers on

a defined/decided basis maintained in Settlement Rule.

DGPC is not intending to create real orders as on date. If requirement is realized in future course oftime, it will then be l created. As per the present requirement, the orders relevant transactions will

come from PS, PM, Investment Orders coming from AA, which will originate outside CO.

2. Statistical Internal Order :

Statistical Internal Order helps in parallel recording of expenses in addition to the booking in Specific

Cost Center. In this case, the real entry flows into the Cost Center and only s tatistical entry flows intothe Statistical Internal Order.

The Statistical Order need not /can not be settled as it contains only statistical postings since the real

posting have already gone to the relevant Cost Center.

With the help of Statistical Internal Order, analysis of some of the expense GLs could be carried out.

Example: -Telephone Expenses

Annual Conference Expenses

All the telephones and annual conference expenses can be created as Statistic al Internal Orders.

Unlike Real Order, at the time of booking into Statistical Internal Order, the Cost Center is known andposted into.

Based on the nature of posting (FI postings), DGPC will decide and choose the expense GLs for

which the Statistical Internal Orders are to be created, to which as at the time of manual posting theInternal Orders can be booked into.

It has been decided to create Statistical Internal Orders for those GLs in which data flows only from FI

entry.

In Internal Order, there is an option to release the order for posting. An unreleased Internal Ordercannot receive postings into it. However, the order can be released automatically when saving by

selecting the appropriate activity in Order Type.

For analysis and reporting purposes, internal order groups can be used, however, in DGPC InternalOrder Group will not be created. Though no Internal Order Group will be created, all analysis and

reporting will still be available at Internal Order Level.

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A. Internal Order Settlement

Real Internal Order can be used to capture the cost of special events /occas ion for reporting to

management and further after completion of the event the costs are settled to respective CostCenters.

Only Real Internal Orders can be settled.

During booking into Real Internal Order, the real posting goes into Real Order and if a Cost Center is

also entered, only statistical entry flows into Cost Center.

Hence, the costs booked into the Real Internal Order needs to be settled to the respective CostCenters.

If initially, the appropriate receiver (Cost Center) of the costs is not known, the costs are settled to

Real Internal Order. After completion of the event, the Cos ts are then settled to respective CostCenters on a defined/decided basis maintained in Settlement Rule.

Settlement needs a Settlement Profile, Allocation Structure and Settlement Rule.

Settlement profile defines the valid receivers and Allocation Structure. Settlement Profile is attached

to Order Type.

Allocation Structure contains the assignments, source cost elements and settlement cost elements.Allocation Structure is attached to the Settlement Profile.

Settlement Rule contains the type of receiver (that is allowed in Settlement Profile), the rec eivers–(Example Cost Centers) and the proportion of settlement.

Different Settlement Rule can be maintained for different periods. However, in case of DGPC, perioddependent settlement scenario does not exist as on date.

Order settled can also be reversed if required.

Statistical Internal Orders cannot/need not be settled as the real posting is already in place while

booking to Statistical Order. An Internal order after Technical completion cannot receive any posting.However, the TECO s tatus (TECHO is a status of the Order and once user made this status, then that

Internal Order cannot receive any postings) can be revoked. But a closed order cannot be revok ed forFurther use. Hence, all the orders those are fully s ettled and no further posting is expected to it,

should be closed.

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Internal Order Processing

CO FI SD MM

Start

Create

Internal

Order

DirectCreateposting inPlannedFinancialCost and

AccountingBudget forI.O

Create /Release

ReleaseOrder

P.O w.r.t I.O

AutomaticReceive

posting togoods &

IO and Costservices

Center

Accounting

DocumentPeriodic

PostingCost

Allocation

Settle order

cost to Cost

Center

End

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B. PM Order Settlement

The costs that arise from processing an order (for example - costs for material/stores & spares, issued

to the order) have the individual technical objects (equipment, functional locations) as a referenceobject.

The costs are initially collected on the order. They are then transferred to the settlement receiver

specified in the settlement rule.

Orders are mainly settled automatically at regular intervals.

In DGPC, the maintenance orders will be time independent. Hence, they need to be settled onmonthly basis. List of PM order types that will be maintained for DGPC are as below: -

S. No. Order Type Name1 PM01 Maintenance Order- Preventive

2 PM02 Maintenance Order- Breakdown

3 PM03 Maintenance Order- Notification

4 PM04 Reimbursement Order

5 PM05 Calibration Order

6 PM06 Capital Investment Order

The system settles the order to the specified receivers (Cost Centers).

In DGPC, only Revenue Expenses Postings will happen in PM orders. Hence, they will be settled torespective Cost Centers. After the settlement, the balance on the order is 0.

In case the life of maintenance order is more than 1 month, at the month end, the order will bepartially settled and only after completion of the order, it will be fully settled.

Partial Settlement: -

The total amount booked into the order till the month end will be settled and the Order will be k ept

open for further posting into it.

Full Settlement: -The final cost booked to the order after the last month will be settled and the order will be closed torestrict it from further posting.

C. Project System Settlement

Projects are generally part of the internal processes of a c ompany.

One of the first steps in project planning is to break down the work into tasks and set up a hierarchy.

In the Project System, the organization of the work and people in the project can be plannedaccording to the work breakdown structure (WBS).

The costs that are captured in Project needs to be settled to the receiver (Assets/AUC).

DGPC will create projects to capture Capital Expenditures and at the end of the project it is capitalized

to the respective Assets or to Assets under Construction.

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In the case of WBS elements flagged as capital investment measures, separate settlement runs mustbe carried out for costs which can be capitalized and for costs which cannot be capitalized i.e. in WBS

Element, two possibilities are there;

1. User can s ettle all cost to Asset, and

2. Out of total cost one can settle some cost on Asset and some can be settled on Cost Centre.

The settlement process has to be run periodically and by cost element.

The cost which can be capitalized will be settled to AUC/Asset and the cost which cannot be

capitalized will be settled to respective Cost Centers.

Where the life of the project is more than one month, at month end, the cost captured in the project

needs to be settled to the respective Assets under Construction (AUC).

With the help of Budget Profile, controlling system c an be established for Project related expenses.

Settlement Profile defines valid Receivers, Allocation Structure and GL Document Type.

Settlement rule defines the category of receiver and the receiver object. Settlement rule can be time

dependent.

Simulate the settlement first in a test run, without saving it and run actual settlement after checking

and confirmation of the correct amount.

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Period End Closing

Cost Centers Internal Orders

Start Start

SelectDefine

InternalAllocation

Order forRules

settlement

RunDefine

AllocationSettlement

CycleRules

(Test Run)

RunCheck Log Settlementfor Errors Cycle

(Test Run)

RerunAllocation Check log

Cycles- for errorsPosting Run

RerunRun Settlement

Reports Cycles-Posting Run

End RunReports

End

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S. No Descriptions of improvements CSBP pain area addressed Remarks

1 Settlement will be very easy in thesystem.

2 Reports available according toOrder

3 Tracking of Expenses will be online

5 STANDARD INFORMATION SYSTEM

SAP as standard functionality offers various module wise reports for various analysis & help in

decision making for the business organization. Lis t of such standard reports is given below:

S_ALR_87012326 Chart of Accounts

S_ALR_87012328 G/L Account List

S_ALR_87012330 Account assignment manual

S_ALR_87012308 Display Changes to G/L Accounts

S_ALR_87012333 G/L Accounts List

S_PL0_86000030 G/L Account Balances- Trail Balance (New)

S_PL0_86000031 Transaction Figures – Account balance

S_PL0_86000032 Structured Account balance

FBL3N GL Line Item Display

FS10N GL Balance Display

KS13 Cost Centers: Master Data Report

KA23 Cost Elements: Master Data Report

S_ALR_87012301 Totals and Balances(trial balance)

S_ALR_87011963 Asset Balances by Asset Number

S_ALR_87011964 Asset Balances by Asset Class

S_ALR_87011966 Asset Balances by Cost Center

S_ALR_87011967 Asset Balances by Plant (FAR)

S_ALR_87011979 Physical Inventory by Cost C enter

S_ALR_87011981 Physical Inventory by Asset Class

S_ALR_87011963 Asset Balances A series of query programs based ondifferent selection criteria.

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Physical Inventory Lists

A series of query programs based on different selectionS_ALR_87011979 – 82

criteria.

Depreciation on Capitalized Assets (Depn Simulation)

Simulated depreciation on assets/asset classes and ProjectsS_ALR_87012936

(can be restricted t o specific WBS elements).

Depreciation Current YearS_ALR_87012026

Depreciation analysis by asset.

S_ALR_87012075 Asset history(Asset card maintainedManually) Complete detailed history of each asset.

AW01N Asset Explorer

FK10N Display Vendor Balances

FBL1N Vendor Line Item Display

S_ALR_87012084 Open Items - Vendor Due Date Forecast

S_ALR_87012078 Due date analysis for open items

S_ALR_87012103 List of vendor line items

S_ALR_87012084 Open item- vendor due date forecast

S_ALR_87012105 List of down payment open on key date

J1IINMIS TDS report

MB51 Material Display Document

MB52 Display Warehouse Stocks

MM54 Consignment Stock

MB59 Material Display Document

MB5T Stock In Transit

MMBE Stock Overview

FBL5N Customer Line item Display

FD10N Customer Balance Display

FD03 Display Customer in Company code

XD03 Display Customer centrally

S_ALR_87012182 Display changes to customers

S_ALR_87012173 List of all customer line items

S_ALR_87012199 List of customer down payments open on key date

S_ALR_87012168 Due date analysis for open items

S_ALR_87012169 Transaction figures: Account balance

S_ALR_87012170 Transaction figures: Special sales

S_ALR_87012171 Transaction figures: Sales

S_ACO_52000887 Receivables: Profit center

F.30 Customer Evaluation (Based on Reconciliation Account,Credit representative, Credit Risk Category)

F.17 Customer balance confirmation

F.27 Customer account statement

FBCJ Cash Journal

FCHN Cheque Register

S_ALR_87009712 Profit Center List: Plan/Actual

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S_ALR_87013340 Profit Center Group: Plan/Actual/Variance

S_ALR_87009717 Profit Center Group: Quarterly Comparison of Actual Data

S_ALR_87013343 Profit Center: Receivables

S_ALR_87013344 Profit Center: Payables

KSB5 CO Documents: Actual Costs

KA23 Cost Element Master List

KALR Cost Elements: CO Line Items

S_ALR_87013611 Cost Centers: Actual/Plan/Variance

S_ALR_87013633 Cost Centers Actual /Plan /variance previous year

S_ALR_87013612 Range: Cost Centers

KP07 Display Cost Element Plan

KP27 Display Activity Plan

KSBL Planning Report for Cost Center

KSBT Cost Centers/ Activity Prices Report

KOK3 List of Internal Orders

S_ALR_87012993 Orders: Actual/Plan/Variance

KO2B Display Budget Document

KOB4 Budget Line Items

S_ALR_87012995 List: Orders

S_ALR_87013001 Orders: Actual Yearly Comparison

S_ALR_87013002 Orders: Actual Quarterly Comparison

S_ALR_87013003 Orders: Actual Period Comparison

S_ALR_87012993 Orders: Actual/Plan/Variance

KOC4 Cost Analysis

S_ALR_87013326 Profit Center Group: Plan/Actual/Variance

KE5Z Profit Center: Actual Line It ems

MCI8 Cost Analysis

IW33 Plant Maintenance Orders

IW39 List of plant maintenance Orders

IW43 Confirmation display for Plant Maintenance Orders

S_ALR_87013532 Plan/Actual/Variance

S_ALR_87100185 Actual Costs for Each Month (Current Fiscal Year)

S_ALR_87100186 Planned Costs for Each Month (Current Fiscal Year)

S_ALR_87100190 Plan/Actual/Variance for Each Project and Person

Responsible

CJI8 Budget

CJI3 Actual Cost/ Revenue booked on PS Order

CJI4 Plan Cost/ Revenue booked on PS Order

S_ALR_87013556 Funds Overview

S_ALR_87013557 Budget/Actual/Variance

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6 ANNEXURES

6.8 Annexure 1 –Key Data Structure

2_BP_FSBP_FIC O_0.3.vsd

6.9 Annexure 2 –Business Process Master List

A sset_Master.xlsx Bank Master.x lsx GL Master.x lsx eGreen_FI_BPML.XLS

–6.10 Annexure 3 FRICE Objects

DGPC - Reports.xls Report List -RFP.xlsx

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fico bbp final

Economy & Finance

division of wipro limited

wipro infotech

signature wipro

business blueprint overview

master data

asset master

vendor master

customer master