Archit BBP FI V1.0 30092010

Project: ARCHIT
ARCH Pharmalabs Limited
Business Blueprint
Financial Accounting
BBP_FI_V1.0
SIGNATORY
NAME
TITLE
Prepared by
Sreenivasa Rao Bollepalli
Zensar-Consultant
Reviewed/
Approved by
A Sreenivasan
Zensar-PM
Reviewed by
Bhushan Punekar
CTM-Lead
Reviewed/
Approved by
Reviewed/
Approved by
BPO
Govind Joshi
Client-PM
DATE
SIGNATURE
Business Blue Print

DOCUMENT NUMBER: BBP_FI_V 1.0
TITLE: Financial Accounting (FI)
ADDENDUM/AMENDMENT #: New Document
PAGE: Page 2 of 189

SUPERSEDES: N/A
Document Control
Document ID
ZTL/2010/PRJ-252/FI/03
Compliance Status
Mandatory
Security Classification
Company Restricted
Issue Date
30th September, 2010
Document Status
Prepared by
Quality Review
JN Rao
Authorized by
Sreenivasan A
Distribution
Bhushan P Arch Pharmalabs Limited
Document History
V1.0
Zensar Technologies Limited
Draft,
Revised,
Final
B Sreenivasa Rao
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DOCUMENT CONTROL:
S NO
Revision
Creation Date
Last Modified
Remarks
1
2
3
4
5
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Table of Contents
1.
INTRODUCTION............................................................................................8
2.
Financial Accounting Key Components.....................................................8
3.
2.1
Financial Accounting........................................................................................... 8
2.2
CO Module Overview.......................................................................................... 9
Enterprise Structure..............................................................................11
3.1
Client................................................................................................................ 12
3.2
Operating Concern............................................................................................13
3.3
Controlling Area................................................................................................13
3.4
Company Code.................................................................................................13
3.5
Segments......................................................................................................... 14
3.6
Sales Organization............................................................................................ 14
3.7
Distribution Channel......................................................................................... 14
3.8
Divisions........................................................................................................... 15
3.9
Purchasing Organization...................................................................................15
3.10
Plant................................................................................................................. 16
3.11
Credit Control Area...........................................................................................18
3.12
Financial Management Area..............................................................................18
3.13
Planning Plant and Maintenance Plant..............................................................19
3.14
Chart of Accounts.............................................................................................21
Global settings......................................................................................22
4.1
Currency........................................................................................................... 22
4.2
Fiscal Year Variant.............................................................................................22
4.3
Document Types...............................................................................................23
4.4
Document Numbering.......................................................................................23
4.5
Posting Key....................................................................................................... 25
4.6
Posting Period................................................................................................... 26
4.7
Field status group............................................................................................. 26
4.8
Exchange Rates................................................................................................27
4.9
Tax procedure................................................................................................... 28
4.10
Real Time Integration CO with FI.......................................................................28
4.11 New GL with Document Splitting......................................................................30

4.11.1
Online Split and scenario assignment........................................................30
4.11.2
Define Zero-Balance Clearing Account......................................................30
4.11.3
Document Splitting Characteristics for GL Accounting...............................30
4.11.4
Document Splitting Characteristics for GL Accounting...............................32
4.12
Retained Earnings Account...............................................................................34
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5
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Master Data..........................................................................................35
5.1
FI
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9
Master Data..................................................................................................35
General Ledger.............................................................................................. 35
Customer Account......................................................................................... 40
Vendor Account............................................................................................. 42
Bank Accounting........................................................................................... 45
House Banks................................................................................................. 45
Fixed Assets.................................................................................................. 46
Material Master............................................................................................. 52
FI - Master Data - Transaction / Activity Chart...............................................54
Financial Accounting Master data Integration:............................................54
5.2
CO Master Data................................................................................................55
5.2.1 Cost Elements............................................................................................... 55
5.2.2 Cost Element Groups.....................................................................................57
5.2.3 Cost Center................................................................................................... 57
5.2.4 Cost Centre Groups.......................................................................................58
5.2.5 Activity Types................................................................................................ 59
5.2.6 Activity type groups......................................................................................59
5.2.7 Statistical key Figures....................................................................................59
5.2.8 Internal Order................................................................................................ 60
5.2.9 Profit Centers................................................................................................ 60
5.2.10
Material Master - Costing Views.................................................................61
5.2.10.1
5.2.10.2
5.2.10.3
5.2.10.4
5.2.10.5
5.2.10.6
5.2.11
5.2.12
6
Raw / Packing and Lab Chemicals........................................................................... 62

Semi-finished and Finished Goods...........................................................................62
Allied Products..................................................................................................... 63
Stores and Spares / Operating Supplies...................................................................63
Capital Inventory................................................................................................ 64
Material Types, Valuation Type, Valuation Class.........................................................64
Controlling Master Data - Transaction / Activity Chart................................65

Controlling Master data Integration:.......................................................67
Business Processes Financial Accounting.............................................67

6.1
General Ledger Accounting...............................................................................67
6.1.1 Posting General Ledger Journal Vouchers......................................................68
6.1.2 Parking and posting Parked documents.........................................................69
6.1.3 GL Posting Using Reference Documents........................................................71
6.1.3.1
6.1.3.2
6.1.3.3
6.1.4
6.1.5
6.1.6
6.1.7
6.1.8
6.1.9
Fast Entry Screens......................................................................................... 73

Document Change......................................................................................... 73
Accounting Document Reversal.....................................................................74
Open item clearing of GL accounts................................................................74
Financial Statement Versions........................................................................75
Closing Operations........................................................................................76
6.1.9.1
6.1.9.2
6.1.10
6.1.11
Sample Documents............................................................................................... 71
Account Assignment Models................................................................................... 72
Recurring Document.............................................................................................. 72
Month end closing.............................................................................................. 76

Year end closing................................................................................................. 77
GL Process Steps.......................................................................................78
General Ledger Integration:....................................................................81
6.2
Accounts Payable.............................................................................................. 81
6.2.1 Vendor Down Payment..................................................................................82
6.2.2 Down payment request.................................................................................82
6.2.3 Vendor Invoice without Purchase Order.........................................................84
6.2.4 Goods Receipt based Vendor Invoice Verification..........................................86
6.2.5 Goods Receipt based Invoice Verification for Imports....................................90
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6.2.5.1
6.2.5.2
6.2.6
6.2.7
6.2.8
6.2.9
6.2.10
6.2.11
6.2.12
6.2.13
6.2.14
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Direct Imports to Manufacturing Plant.......................................................................90

Imports through Bonding Process............................................................................92
Invoice for Delivery Costs..............................................................................92

Vendor Credit Memo Processing....................................................................92
Loans / Advance to Employees......................................................................93
Payments to Vendors.....................................................................................93
Bills of Exchange.......................................................................................95
Retention Money........................................................................................ 96
Post Dated Checks.....................................................................................96
Correspondence........................................................................................97
Closing Operations....................................................................................97
6.2.14.1
6.2.14.2
6.2.15
Monthly end Closing........................................................................................... 98

Year end closing................................................................................................. 99
AP Process Steps.....................................................................................100
6.3
Accounts Receivable.......................................................................................102
6.3.1 Sales Invoices posting to Accounting..........................................................102
6.3.2 Credit Memo Processing..............................................................................103
6.3.3 Customer Down Payment............................................................................103
6.3.4 Customer Incoming Payment......................................................................104
6.3.5 Receipt of Post Dated Check from Customer...............................................104
6.3.6 Bills of Exchange......................................................................................... 105
6.3.7 Agent Commission Recognition...................................................................106
6.3.8 Tax Collected at Source on Scrap Sales.......................................................106
6.3.9 Dunning Customers for overdue receivables...............................................106
6.3.10
Credit Management.................................................................................107
6.3.11
Closing Operations..................................................................................107
6.3.11.1
6.3.11.2
6.3.12
Monthly end Closing......................................................................................... 107

Year end closing............................................................................................... 108
AR Process Steps.....................................................................................109
6.4
Asset Accounting............................................................................................111
6.4.1 Asset Acquisition......................................................................................... 112
6.4.1.1
Direct Capitalization............................................................................................. 112
6.4.1.1.2 Acquisition in Asset Accounting with Vendor........................................................113
6.4.1.1.3 Acquisition in Asset Accounting without Vendor....................................................114
6.4.1.2
Asset under Construction / Capital WIP..................................................................114
6.4.1.2.1 Assets under Construction without Internal Order / Project....................................114
6.4.2
6.4.3
6.4.4
Assets under Construction with Internal Order............................................115

Assets under Construction with Project Systems.........................................115
Asset Retirement......................................................................................... 116
6.4.4.1
6.4.4.2
6.4.5
Asset Transfers............................................................................................ 117
6.4.5.1
6.4.5.2
6.4.5.3
6.4.6
Asset Transfer Location transfer (within the Plant)..................................................117

Asset Transfer Plant to Plant transfer...................................................................117
Asset Transfer Wrong to correct asset class..........................................................118
Leased Assets............................................................................................. 118
6.4.6.1
6.4.7
Asset Retirement with Revenue - Asset Sale...........................................................116

Asset Retirement Scrapping - Asset Abandonment................................................116
Assets taken on Lease......................................................................................... 118
Asset Depreciation......................................................................................119
6.4.7.1
6.4.7.2
6.4.7.3
Calculation of Depreciation................................................................................... 119

Depreciation Keys............................................................................................... 120
Posting of Depreciation........................................................................................ 120
6.4.8 Revaluation of Assets..................................................................................121

6.4.9 Impairment of Assets..................................................................................121
6.4.10
Physical Inventory of Assets....................................................................121
6.4.11
Closing Operations..................................................................................122
6.4.11.1
6.4.11.2
Monthly end Closing......................................................................................... 122

Year end closing............................................................................................... 122
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6.4.12
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Asset Accounting Process Steps..............................................................124
6.5
Cash and Bank Accounting.............................................................................126
6.5.1 Bank Accounting......................................................................................... 126
6.5.1.1
Check Payment.................................................................................................. 126
6.5.1.2
Check Receipt.................................................................................................... 127
6.5.1.3
Bank Reconciliation Statement (BRS).....................................................................128
6.5.1.3.1 Automatic Bank Reconciliation.......................................................................... 129
6.5.1.3.2 Electronic Bank Statement and Manual Bank Statement.......................................130
6.5.1.4
Liquidity Forecast................................................................................................ 131
6.5.1.5
Cash Position..................................................................................................... 133
6.5.2
Cash Journal................................................................................................ 133
6.5.2.1
Business Transactions......................................................................................... 136
6.6
Taxes............................................................................................................... 136
6.6.1 Tax on Sales and Purchases.........................................................................136
6.6.2 Excise Duty................................................................................................. 137
6.6.3 Service Tax.................................................................................................. 141
6.6.4 Extended Withholding Tax (TDS).................................................................145
6.6.4.1
6.6.4.2
6.6.4.3
6.6.4.4
6.6.4.5
6.6.4.6
6.6.4.7
6.6.4.8
6.6.4.9
6.6.4.10
6.6.5
6.6.6
Official Withholding tax key................................................................................... 145

Recipient type:.................................................................................................... 145
Withholding Tax types:......................................................................................... 145
Withholding Tax Codes:........................................................................................ 146
TDS remittance:.................................................................................................. 148
Bank Challan updation:........................................................................................ 148
TDS certificate:................................................................................................... 148
Quarterly E-Returns:............................................................................................ 148
Acknowledgement No. updation in table.................................................................149
TDS deducted by Customers:............................................................................... 149
Forms Capturing.......................................................................................... 149

Other Taxes................................................................................................. 150
Integration considerations...................................................................151
Process Requirements.........................................................................156
Reporting requirements.......................................................................176
10
Output requirements...........................................................................188
11
Interface / Enhancement Requirement..................................................189
12
Authorizations.....................................................................................190
13
File Conversion Considerations............................................................190
History of Change......................................................................................191
1. Introduction
The purpose of this document is to compile the requirements gathered during business
process design workshops. And also Arch has submitted the User Requirement document.
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based on the business process requirements of the company. With this, how the company
intends to run its business within the SAP System.
This document describes the design of the proposed solution and implications for the
business process. This document is to communicate the new business solution and
expected changes to the business process. The information needs to include:
Enterprise organizational structures
The proposed integrated business processes
Associated function definitions
Business requirements in term of reports/script and functionality
Authorizations
With the information conveyed by this document, the business should be able to approve the
proposed
solution.
The
Process
Definition
Document
becomes
the
master
deliverable/document, which serves as a basis for the entire project.
2. Financial Accounting Key Components

2.1
Financial Accounting
The Financial Accounting Module is a complete accounting system capable of recording all
business transactions. The system has the following features:
Powerful tools for real-time evaluation and reporting of current accounting data.
Comprehensive tools (balance lists, journals, balance audit trails and other standard
reports) for documenting accounts.
The main components of FI Module include:
FI Module
Components
Description
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General
Ledger The general ledger contains a record of all relevant accounting
Accounting
transactions from a business point of view in the G/L accounts.
The central task of G/L accounting is to provide a comprehensive
picture for external accounting and accounts.
Accounts Receivable The Accounts Receivable application component records and
Accounting
administers accounting data of all customers. It is also an integral
part of sales management.
Accounts
Accounting
Payable The Accounts Payable application component records and

administers accounting data for all vendors. It is also an integral
part of procurement management
Asset Accounting
Asset accounting component makes it possible to manage and

update values for all fixed assets and to monitor the accounting
procedures affecting fixed assets. The Asset Accounting
component is used for managing and supervising fixed assets
with the SAP System.
Bank Accounting
This component is used to manage transactions that are entered

into with the various banks
2.2
CO Module Overview
Controlling provides the information for management decision-making. It facilitates

coordination, monitoring and optimization of all processes in an organization. This involves
recording both the consumption of production factors and the services provided by an
organization.
As well as documenting actual events, the main task of Controlling is planning. It determine
variances by comparing actual data with plan data. These variance calculations enable you
to control business flows.
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Income statements are used to control the cost efficiency of individual areas of an
organization, as well as the entire organization.
The various components of CO include:
CO
Module
Description
Components
Cost and Revenue Cost and Revenue Element Accounting provides you with an
Element Accounting
overview of the costs and revenues that occur in an organization.
It provides the structure for the assignment of CO data through
the classification of transaction line items according to the nature
of the cost or revenue posting to an object in CO. Most of the
values are moved automatically from Financial Accounting to
Cost Center Accounting
Controlling.
This component is used to track the occurrence of costs in the
organization. As costs are incurred, they are assigned or posted
to the appropriate Cost Center. The posting and assignment of
costs to Cost Centers not only makes Managerial Accounting
possible but is a vital step in using other CO components. The
standard hierarchy of the CO Area includes all Cost Centers and
provides the ability to analyze costs at different positions.
It is a very flexible tool that can be used for a wide variety of
Internal Orders
purposes to collect costs and also Revenues, it provides

capabilities for planning and monitoring and allocation of costs.
While Overhead Orders are used to monitor overhead costs for
particular purposes, Investment Orders are used to collect costs
Product
Controlling
incurred in the creation of a Fixed Asset

Cost It is concerned with all aspects of planning the cost of producing
products as well as analyzing and tracking the actual costs in the
production process. It has the following sub-components
a. Product cost planning refers to the creation of cost estimates
for the production of goods.
b. Cost Object Controlling where the actual costs incurred in
the production of a good is collected using Process Orders. It
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CO
Module
Description
Components
also provides the tools for calculating the Work in Process and
the variances at the period end closing.
Profitability
(CO-PA)
Analysis Profitability Analysis analyzes the profit or loss of an organization

by individual market segments. The system allocates the
corresponding costs to the revenues for each market segment.
Profitability Analysis provides a basis for decision-making, for
example,
for
price
determination,
customer
selection,
conditioning, and for choosing the distribution channel.

Profit
Center It lets you analyze internal profit and losses so that evaluating
Accounting (EC-PCA)
different areas or units within an organization is possible. Profit
Structure can be structured according to the region, function or
product classifications.
3. Enterprise Structure
Within the Financial Accounting Module, specific high-level organizational structures are
defined. These Enterprise Structures provide a direction for how the solution operates and
how business functions, data and reporting are defined.
The Enterprise Structure in SAP Financial Accounting and Controlling as below:
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3.1

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Client
The client is the highest level in the SAP System hierarchy. Specifications or data entered at
this level are valid for all company codes and for all other organizational structures. Each
Client contains a separate and unique set of master data, and data tables.
The following will be the client numbers for Arch:
Server
Development
Development
Sandbox
Quality
Production
Solution
Manager
3.2
Client
100
200
300
500
700
Purpose
Configuration and Development environment
Pre-test, to conduct the initial testing by Consultant
Training / Testing / Practice to all users
Testing - Unit and Integration testing
Production - To record all business transactions
252
Project Implementation, Optimizer, EWA, Service Desk
Operating Concern
An operating concern represents an organizational unit of the company, which provides the
sales and marketing information in a uniform structure. It is the valuation level for Profitability
Analysis (CO-PA).
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By setting off the costs against the revenues, an operating profit for the individual market
segments that are defined by a combination of classifying characteristics (such as product
group, customer group, country, or distribution channel) can be calculated. The market
segments are known as profitability segments in CO-PA.
3.3
Operating Concern
Description
1000
Arch Operating Concern
Controlling Area
Controlling Area is an Organizational Unit in Controlling Module which is used for Cost
Accounting. Data in the Controlling Area is simultaneously updated with the various postings
in the Financial Accounting / Material Management / Sales and Distribution / Production
Planning / Human Capital Management modules.
The Controlling Area for Arch is given below:
Controlling Area
1000
3.4
Description
Arch Controlling Area
Company Code
Company Code is the Organizational Unit of Financial Accounting for which a complete selfcontained set of accounts can be drawn up for purposes of external reporting. This includes
recording of all relevant transactions and generating all supporting documents required for
financial statements. At each Company Code level Balance Sheet and Profit and Loss
Account and all financial statements can be generated. Statements required for Legal
Reporting can be generated / balanced at Company Code level. Company code is used for
various processes within Financial Accounting in order to balance entries, post transactions
and manage security.
The Company Code for ARCH is given below:

Company Code
1000
Description
Arch Pharmalabs Limited
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3000
Avon Organics Limited
3.5

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Segments
Segment is the can be an organizational unit or a sales area or a division of the company. It
has both the functionalities of the Business area as well as the Profit Centre and it can be
termed as an organization with in the main company code and is like a group of Profit
Centre. The segment as such is derived from the assigned profit centre.
Segments will be activated in future.
3.6
Sales Organization
Sales Organization is an organizational element, which represents all activities of Sales and
Distribution module with in SAP such as Sales, Distribution of goods and services, Billing. It
is an organizational unit within logistics that structures the company according to its sales
requirements.
The Sales Organizations for ARCH are:
Company
Sales
Code
1000
1000
3000
3000
Code
1100
1500
3100
3500
3.7
Org
Sales Organization Description
Arch Domestic Sales Organization
Arch Export Sales Organization
Avon Domestic Sales Organization
Avon Export Sales Organization
Distribution Channel
Distribution channels are the means through which the sold materials reach the customer.
A distribution channel can be assigned to one or more sales organizations.
The Sales Distribution Channels are:
Distribution
Channel
10
20
30
90
Description
Direct
Depot / Warehouse
Inter-company Sale
Stock Transfer
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3.8

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Divisions
A division can be defined as a Product group or business segment or line of business that
could be made up of a wide-ranging spectrum of products. This entity normally groups
together saleable materials and services for the purpose of responsibility and analysis.
The Sales Divisions for Arch are:
Division
10
20
31
32
40
51
90
90
92
3.9
Description
Intermediates
API
CRAMS Intermediates
CRAMS API
Agro Chemicals
Services
Others
Job work
Scrap Sales
Purchasing Organization
Purchasing organization is an organizational unit responsible for procuring materials or

services for one or more plants and for negotiating general conditions of purchase with
vendors. The purchasing organization assumes legal responsibility for all external purchase
transactions.
Arch will have the following Purchasing Organizations
Purchase
Organization
1000
1100
1101
1102
1103
1104
1105
1106
1107
1171
1172
1173
1200
Description
CPO - Mumbai
Arch - Maharashtra
Arch - Tarapur factory
Arch - Badlapur Unit
Arch - Taloja G - 6 Unit
Arch - Taloja R & D Unit
Arch - Tarapur, Plot E-64 & E-82
Arch - Dombivali unit
Arch - Turbhe R & D Unit
Arch - Tarapur W/H
Arch - Bhiwandi
Arch - Bhiwandi W/H
Arch - Andhra Pradesh
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Purchase
Organization
Description
1201
Arch - Merven Unit
1202
Arch - Siddipet Unit
1203
Arch - Sibra Unit
1271
Arch - Hyderabad W/H
1272
Arch - Sibra W/H
1300
Arch - Haryana
1301
Arch - Vitalife Laboratories
1371
Arch - Vitalife Godown1
1372
Arch - Vitalife Godown2
1471
Arch - Vadodara Godown
1571
Arch - Vitalife Bhiwadi Godown
3101
Avon - Solapur unit
3200
Avon - HO
3201
Avon - Sadasivpet unit
3401
Avon - Vadodara unit
3171
Avon - Bhiwandi Ware House

SUPERSEDES: N/A
3.10 Plant
Plant is an organizational unit within a company code. A Plant is an organizational unit that
divides the enterprise according to production, procurement, distribution and Stock storage
area etc. It is a place where materials are produced, or goods and services are provided.
The following are the plants in Arch:

Company
Code
Plant
Plant Description
Plant
Location
1000
1000
1000
1000
1000
1100
1101
1102
1103
1104
Head Office
Arch Pharmalabs ltd - Tarapur factory
Arch Pharmalabs ltd - Badlapur Unit
Arch Pharmalabs ltd - Taloja G - 6 Unit
Arch Pharmalabs ltd - Taloja R & D Unit
Mumbai
Tarapur
Badlapur
Taloja
Taloja
Activity
ARCH
HO
MFG
MFG
MFG
R&D
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Company
Code
1000
1000
1000
1000
Plant
1105
1106
1107
1151
Plant Description
Arch Pharmalabs Ltd- Tarapur, Plot- E-64 & E-82
Arch Pharmalabs ltd - Dombivali unit
Arch Pharmalabs ltd - Turbhe R & D Unit
Logical Port- Maharashtra
1000
1000
1000
1152
1153
1161
Logical Port- Andhra Pradesh

Logical Port- Haryana
Arch Pharmalabs Ltd- Tarapur, Plot- E-80 & E-81
Plant
Location
Tarapur
Dombivali
Turbhe
Maharashtra
Andhra
Pradesh
Haryana
Tarapur
1000
1000
1171
1172
Arch Pharmalabs ltd - Tarapur WH

Arch Pharmalabs ltd - Bhiwandi
Tarapur
Bhiwandi
1000
1173
Arch Pharmalabs ltd - Bhiwandi Godown
Bhiwandi
1000
1000
1000
1000
1000
1200
1201
1202
1203
1272
Arch Pharmalabs ltd - RO- Hyderabad

Arch Pharmalabs ltd - Merven Unit
Arch Pharmalabs ltd - Siddipet Unit
Arch Pharmalabs ltd - Sibra Unit
Arch Pharmalabs ltd - Sibra WH
Hyderabad
Hyderabad
Hyderabad
Hyderabad
Hyderabad
1000
1271
Hyderabad
1000
1301
Gurgaon
MFG
1000
1000
1000
1302
1371
1372
Arch Pharmalabs ltd - Hyderabad WH

Vitalife Laboratories (A divison of Arch Pharmalabs
Ltd)
Vitalife Laboratories R&D (A divison of Arch
Pharmalabs Ltd)
Arch Pharmalabs ltd - Vitalife Godown1
Arch Pharmalabs ltd - Vitalife Godown2
Bonding
Bonding
MFG
NE
Depot
E Depot
NE
Depot
ARCH
RO
MFG
MFG
MFG
E Depot
NE
Depot
Gurgaon
Gurgaon
Gurgaon
1000
1471
Arch Pharmalabs ltd - Vadodara Godown
Vadodara
1000
3000
1571
3101
Arch Pharmalabs ltd - Vitalife Bhiwadi Godown

Avon Organics Limited - Solapur unit
Bhiwadi
Solapur
3000
3000
3000
3200
3201
3251
Head Office
Avon Organics Limited - Sadasivpet unit
Logical Port- Maharashtra
3000
3000
3000
3252
3253
3401
Logical Port- Andhra Pradesh

Logical Port- Haryana
Avon Organics Limited - Vadodara unit
Hyderabad
Hyderabad
Maharashtra
Andhra
Pradesh
Haryana
Vadodara
R&D
E Depot
E Depot
NE
Depot
NE
Depot
MFG
AVONHO
MFG
Bonding
3000
3171
Avon Organics Limited - Bhiwandi Ware House
Bhiwandi
Activity
MFG
MFG
MFG
Bonding
Bonding
Bonding
MFG
NE
Depot
Page 17 of 189
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SUPERSEDES: N/A
3.11 Credit Control Area

Credit Control Area is an organizational unit that represents an area responsible for granting
and monitoring credit limit of Customers. Credit information can be made available per
customer within a credit control area.
The following is the Credit Control Area for Arch:
Credit Control Area
1000
Description
Arch Credit Control Area
3000
Avon Credit Control Area
3.12 Financial Management Area

The Funds Management Area is the organizational unit within an organization, used to
represent a closed system for funds management, budgeting, and budget execution. The
Funds Management Area also contains attributes or settings that impact master data and/or
transactions within the FM Area. FM Area is linked to Company Code and Controlling area,
which will enable integration with all other organizational units within an enterprise. Funds
Management within an Enterprise is controlled through Master Data called (a) Funds
Centers and (b) Commitment Items.
Funds Center represents the organizational areas of responsibility for budgetary monitoring
and reporting. It is linked to Cost Center. Funds Center identifies where in the organization
revenue, expense, and budget are managed, reported, and controlled. Budget is assigned to
Funds Centers and postings can be controlled against this budget based on the linking of
other organizational objects. Funds Center usually represents the lowest levels of the
organization where management responsibility exists.
Commitment Item represents budget classification. It is used to reflect the type of revenue
and expenditure being budgeted and also to detail balances in FM. Commitment Items are
linked to revenue and expense general ledger accounts, as well as primary and secondary
cost elements. Additionally, Commitment Items may be created for specific budgetary and
carry forward needs. Commitment Item identifies the business transaction for which budget
is consumed.
Essentially commitment items will get mapped to General Ledger Account(s) or group of GL
Accounts based on nature of Expenditure. Commitment hierarchies are maintained in the
preparation of commitment items for the grouping of commitment items of similar nature and
reporting purpose.
Page 18 of 189
Business Blue Print

The following FM area will be used:
Company Code

SUPERSEDES: N/A
Financial Management FM Area Description

Area
1000- Arch Pharmalabs Limited

3000- Avon Organics Limited
1000
Arch Group FM Area
3.13 Planning Plant and Maintenance Plant
In Plant Maintenance, a distinction is made between the organizational units "planning

plant" and "maintenance plant".
Maintenance plant is the organization in which technical objects and main work
centers can be maintained
In a Planning plant, maintenance task lists are defined for the respective
maintenance plants, material planning is carried out on the basis of bills of material in
task lists and orders, maintenance plans are managed and scheduled, maintenance
notifications are created and maintenance orders can be handled.
Company
Code
Maintenance
Plant
1101
Arch Pharmalabs
Tarapur factory
ltd
1000
1102
Arch Pharmalabs
Badlapur Unit
ltd
1000
ltd
1000
1103
Arch Pharmalabs
Taloja G - 6 Unit
1104
Arch Pharmalabs
Taloja R & D Unit
ltd
1000
1000
1105
Arch
Pharmalabs
LtdTarapur, Plot- E-64 & E-82
1105
1000
1106
Arch Pharmalabs
Dombivali unit
Plant Description
Maintenance
Planning
Plant
1101
Arch Pharmalabs ltd Tarapur factory
1102
Arch Pharmalabs ltd Badlapur Unit
1103
Arch Pharmalabs ltd Taloja G - 6 Unit
1104
ltd
Plant Description
1106
Arch Pharmalabs ltd Taloja R & D Unit

Arch Pharmalabs ltd.
Arch Pharmalabs ltd Dombivali unit
Page 19 of 189
Business Blue Print

Company Maintenance Plant Description
Code
Plant
Arch Pharmalabs
Turbhe R & D Unit
1000
1107
1000
1161
1000
1201
Merven Unit
1202
Arch Pharmalabs
Siddipet Unit
1000

SUPERSEDES: N/A
Maintenance Plant Description
Planning
Plant
ltd
1107
Arch
Pharmalabs
Ltd- 1105
Tarapur, Plot- E-80 & E-81
Arch Pharmalabs ltd - 1201
Arch Pharmalabs ltd Turbhe R & D Unit

Arch Pharmalabs ltd
Arch Pharmalabs ltd Merven Unit
- 1202
Arch Pharmalabs ltd Siddipet Unit
Arch Pharmalabs ltd - Sibra 1203

Unit
Vitalife Laboratories (A 1301
divison of Arch Pharmalabs
Ltd)
Avon Organics Limited - 3101
Arch Pharmalabs ltd Sibra Unit

Vitalife Laboratories (A
divison
of
Arch
Pharmalabs Ltd)
ltd
1000
1203
1000
1301
3000
3101
Solapur unit
Avon Organics Limited Solapur unit
3201
Avon Organics Limited - 3201

Sadasivpet unit
Avon Organics Limited Sadasivpet unit
3000
3.14 Chart of Accounts

A chart of accounts provides a framework for the recording of values, in order to ensure an
orderly rendering of accounting data. The general ledger accounts they contain are used by
one or more company codes. Arch will be using the 8 digits as GL Account ID.
Arch will operate under the single chart of accounts that will be centrally maintained.
Chart of Accounts
1000
Description
Arch Chart of Accounts
The numbering logic for Arch GL account, the first digit represented as follows,:
Page 20 of 189
Business Blue Print

1 - Liabilities

SUPERSEDES: N/A
2 - Assets
3 - Revenues
4 & 5- Material Consumption & Manufacturing Expenses
Employee Benefits & Administrative Expenses
Selling Expenses & Interest and other charges
Depreciation, Deferred Expenses & Appropriations
9 - Secondary Cost Elements
Page 21 of 189
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SUPERSEDES: N/A
Global settings
Posting of Transaction in SAP require the following settings
4.1
Currency Settings
The fiscal year in which the transaction is to be posted
Fiscal year variant for determining the posting periods
Document types
Document numbering
Document posting keys(debit/credit)
Posting period variant to determine the open and close periods
Field Status Group
Tax structure
Currency
Arch Pharmalabs Limited will use Indian Rupees (INR) as the base currency. The Company
will define all other currencies in relation to the Indian Rupees.
Sl No
Company Code
Currency
Group Currency
1000
INR
INR
Group Currency will be activated in future, based upon the requirement.
4.2
Fiscal Year Variant
Fiscal year variant represents the accounting period as per the financial year of an
organization. A fiscal year is usually for 12 months (12 periods). A fiscal year need not
correspond to the calendar year. The fiscal year variant specifies the number of posting
periods and special periods in a fiscal year. The fiscal year variant also determines the
posting periods during posting.
In addition to the normal 12 posting periods, SAP supports additional 4 months to post the
Book Closure, Audit and Year end entries.
Fiscal year variant for Arch can be as follows
Page 22 of 189
Business Blue Print

Company Fiscal
Code
1000
3000
4.3
Variant
V3
V3

SUPERSEDES: N/A
Description
April to March, 4 Special Periods
April to March, 4 Special Periods
Document Types
Document types are required in SAP ECC 6.0 system to create and post financial documents
(e.g. Bank Payment Voucher, Receipt Voucher etc.)
The document type controls the following:
Document Number
Document header details (Reference / Header Text)
Classification of nature of business transactions e.g. customer invoice, Customer

Incoming Payment, Customer Credit Memo, Vendor payments / Invoice, etc.
Area of Posting (Customers, Vendors, Assets, GL Accounts)
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.
4.4 Document Numbering

The document number range defines the allowable range in which a document number must
be positioned and cannot overlap. The number ranges may be defined to be internal i.e.
automatically generated by the system in chronological order. Alternatively they may be
external i.e. enterable by the transaction user. Arch will have an Internal numbering for all the
documents.
The Document number range for Arch will be year dependent. Each document type can be
assigned with one number range.
In Arch some of the document types can be defined as below:
Document
Type
AA
AB
AF
C0
Text
Asset posting
Accounting document
Depreciation Postings
Cash Voucher
Rev.
Type
AA
AB
AF
C0
Doc. No.
Range
12
11
13
16
From No.
12000001
11000001
13000001
16000001
To No.
12999999
11999999
13999999
16999999
Page 23 of 189
Business Blue Print

Document
Type
CR
CP
BT
DA
DG
DR
DZ
ED
KA
KG
KP
KR
KZ
PR
RA
RE
RV
SA
SL
TD
UE
WA
WE
WI
WL
X1
X2
Z0
ZP
ZR
JH
JS
Text
Cash Receipt
Cash Payment
Bank Transfers
Customer document
Customer credit memo
Customer invoice (FI)
Customer payment
Excise document
Vendor document
Vendor credit memo
Account Maintenance
Vendor invoice (FI)
Vendor payment
Price change
Sub. cred. memo stlmt
Purchase
Invoice
document
Billing document
G/L account document
Settlement Documents
WHT Documents
Data transfer (upload
entry)
Goods issue
Goods receipt
Inventory document
Goods issue/delivery
Recurring entry doc.
Sample document
CO-FI Posting
Payment posting
Bank reconciliation
Hard
JV
(Journal
Voucher)
Soft JV (Provisional JV)
Rev.
Type
CP
CR
BT
DA
DG
DR
DZ
ED
KA
KG
KP
KR
KZ
PR
RA

SUPERSEDES: N/A
Doc. No.
Range
17
18
19
20
21
22
23
87
30
31
47
32
33
38
51
From No.
17000001
18000001
19000001
20000001
21000001
22000001
23000001
87000001
30000001
31000001
47000001
32000001
33000001
38000001
51000001
To No.
17999999
18999999
19999999
20999999
21999999
22999999
23999999
87999999
30999999
31999999
47999999
32999999
33999999
38999999
51999999
RE
RV
AB
SL
TD
39
90
80
84
85
39000001
9000000001
80000001
84000001
85000001
39999999
9999999999
80999999
84999999
85999999
UE
WA
WE
WI
WL
Z0
ZP
ZR
14
40
42
48
44
46
89
88
34
60
14000001
40000001
42000001
48000001
44000001
46000001
89000001
88000001
34000001
60000001
14999999
40999999
42999999
48999999
44999999
46999999
89999999
88999999
34999999
60999999
JH
JS
52
53
52000001
53000001
52999999
53999999
Page 24 of 189
Business Blue Print


SUPERSEDES: N/A
4.5 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 may be entered for the respective line item.
Posting keys are defined at client level in SAP ECC system. The SAP ECC system provides
certain predefined posting keys. These predefined posting keys would be used wherever
applicable. For every posting key, properties control the entry of the line item.
The most used are:
Account
Reverse
Types
D
Posting Key
12
Reverse credit memo
11
09
Special G/L debit
19
11
Credit memo
19
Special G/L credit
21
Credit memos
32
29
Special G/L debit
39
31
Vendor Invoice
22
32
Reverse credit memo
21
39
Special G/L credit
29
40
Debit entry
50
50
Credit entry
40
70
Debit asset
75
75
Credit asset
70
Posting Keys
Description
Debit / Credit
01
Customer Invoice
02
For each posting key, a reversal-posting key may be defined. The reversal-posting key is
used to reverse a document posted in financial accounting. A Document can be reversed in
Financial Accounting if the following conditions are fulfilled
The original transaction has originated in Financial accounting
There are no cleared items
The line items contain only G/L, Debtors and Creditors
Page 25 of 189
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SUPERSEDES: N/A
A reason code can be set and assigned to a reversal document and a mass reversal of
documents is possible through a batch process.
4.6
Posting Period
Once a fiscal year is defined, it is possible to specify whether a period is allowed for posting
or not. In order to standardize maintenance of accounting period especially across the
group, SAP ECC 6.0 system allows the specification of open or close status to be
maintained via a posting period variant.
Following posting period variant will be created for Arch.
Posting Period Variant
1000
3000
Description
Arch Posting Period Variant
Avon Posting Period Variant
Company Code
1000
3000
4.7 Field status group

The field status group is a logical grouping of various field status combinations. During
transaction entry the available fields for entry can acquire status such as mandatory for
entry, optional for entry or suppressed i.e. not available for entry. The various field status
groups are attached to field status variant in order to link it with a company code. Each
company code would have a field status variant containing possible combination of field
status groups.
For Arch and Avon field status variant can be defined as 1000 Arch Field Status Group
and some of the field status groups can be defined as below.
Field Status Group
Description
G001
General (With Text, Assignment)
G003
Material Consumption Accounts
G004
Cost Accounts
G007
Asset Accounts
G012
Receivable/Payables Clearing
G019
Other receivables/Payables
G029
Revenue Accounts
Page 26 of 189
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4.8
Field Status Group
Description
G067
Reconciliation Accounts

SUPERSEDES: N/A
Exchange Rates
Exchange rates can be defined for each currency pair. Exchange rates will be maintained
under exchange rate type and can be used for the following purposes.
Valuation of imported materials

Export revenue conversion
Open items revaluation
Customs /Excise duty calculation rate
For Arch the following exchange rate types can be defined:

Exchange Rate Type
K
D
R
ED
M
Usage
Purchase Rate for Imports
Sales Rate for Exports
Revaluation Rate for Open items
Excise / Custom Rate
Average Rate
For all the exchange rate types, Currency Translation ratios will be maintained as below:
Exchange Rate Type
K
K
K
K
K
K
K
D
D
D
D
D
D
D
R
R
R
R
R
R
R
ED
ED
From
DEM
EUR
JPY
USD
SGD
AUD
GBP
DEM
EUR
JPY
USD
SGD
AUD
GBP
DEM
EUR
JPY
USD
SGD
AUD
GBP
DEM
EUR
To
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
Page 27 of 189
Business Blue Print

ED
JPY
ED
USD
ED
SGD
ED
AUD
ED
GBP
M
DEM
M
EUR
M
JPY
M
USD
M
SGD
M
AUD
M
GBP

SUPERSEDES: N/A
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
INR
4.9 Tax procedure

Tax procedure contains the necessary specifications for the calculation and posting of taxes
on sales/purchases. Every calculation procedure groups several tax types together into a
condition type (for example, output tax or input tax) in the calculation procedure, and
determines calculation rules for it.
It is mandatory to define a tax procedure in SAP System and assign to country. Tax
procedure is defined for each country. Input tax and out tax codes are created and defaulted
for the country.
Tax code
Country
Tax Procedure
Tax type
Other fields
A0
V0
IN
IN
1TAXINN
1TAXINN
A (Sales tax)
All other active fields blank
V (Purchase tax) All other active fields blank
4.10 Real Time Integration CO with FI

During allocations in Controlling, most of the postings will not affect Financial Accounting.
These postings do not update any G/L account transaction figures in General Ledger, they
are posted within Controlling. If, however, an allocation in Controlling leads to a change in
Profit Center or Segment, that is relevant for evaluations in Financial Accounting, a shift
occurs between the affected items in the profit and loss statement. For this reason, this
information has to be transferred to Financial Accounting. This reconciliation between
Controlling and Financial Accounting takes place by means of real-time integration.
Page 28 of 189
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SUPERSEDES: N/A
As a result of real-time integration, all Controlling documents that are relevant for General
Ledger Accounting are transferred from Controlling to General Ledger Accounting in real
time. This means that Financial Accounting is always reconciled with Controlling.
A document is created in Financial Accounting for each posting in Controlling. This means
that the detailed information contained in the CO documents is always available in reports in
New General Ledger Accounting.
Value flows within controlling that are relevant for General Ledger Accounting such as
assessments, distributions, confirmations, and CO-internal settlements are transferred
immediately. The FI documents are posted with the business transaction COFI. They contain
the number of the CO document. This means that you can call up the CO document from the
FI document, and vice versa.
If a document could not be transferred because the posting period was blocked in Financial
Accounting or no account was found, for example, the document is included in a post
processing work-list.
The following variant will be created and assigned to the Company Code 1000 and 3000.
Z001 Arch CO-FI Real Time Integration Variant
The Variant activated with the scenarios of:
Document Type used to post the CO to FI

o
Z0 CO-FI Real Post
Real Time Integration Active
Account determination Active
The following integration scenarios will be checked:

o
Cross Company Code
Cross Profit Center
Cross Segment
Cross Fund
The following Account Assignment will be made:
Page 29 of 189
Business Blue Print

40190099
CO to FI Document Splitting

SUPERSEDES: N/A
4.11 New GL with Document Splitting

4.1.1
Online Split and scenario assignment
Document splitting enables a complex display of documents. Line items are split here for
selected dimensions. This ensures that you can draw up complete financial statements for
the selected dimensions at any time. Using the document splitting procedure, you can also
create a segmented display of a (partial) balance sheet according to a legal requirement (for
example, IAS) or according to areas of responsibility.
In addition, you can allocate at the time of posting additional costs (such as realized or
valuated exchange rate differences) to the CO account assignment objects that incurred the
costs. Assets can also be subsequently capitalized at the time of posting.
4.1.2
Define Zero-Balance Clearing Account
Here you define a clearing account for account assignment objects for which you want to
have a zero balance setting when the balance is not zero, at Profit Center level. This
account will be used to post the debit / credit, with same amount, with different profit centers.
Inter-unit Clearing
4.1.3
Document Splitting Characteristics for GL Accounting
Here you specify to which document splitting characteristics document splitting applies, for
example, profit centre or segment. Arch requires to draw the P&L and Balance sheet based
on Profit centre wise and Business segments. To take care this business requirement both
profit centre and segment is considered as scenario which required to be mapped.
COA
1000
1000
1000
1000
1000
1000
1000
Account
from
11110000
12000000
12200000
12310010
12340000
12410000
12410300
Account
to
11299999
12099999
12299999
12339999
12349999
12410299
12419999
Categeroy
1000
1000
1000
1000
4000
3000
1000
Description
Balance Sheet Account
Cash Account
Vendor
Overrd.
Page 30 of 189
Business Blue Print

SUPERSEDES: N/A
Account Account
COA from
to
Categeroy Description
Overrd.
1000 12500000 12599999 1000
1000 13100000 13119999 3000
Vendor
1000 13120000 13129999 1000
1000 13130000 13139999 1000
1000 13140000 13149999 1000
1000 13150000 13159999 1000
1000 13160000 13189999 1000
1000 13900099 13900999 1000
1000 14100000 14199999 1000
1000 15100000 15199999 1000
1000 15200000 15299999 1000
1000 15300000 15310000 1000
Vendor: Special G/L
1000 15310010 15310010 3100
Transaction
X
1000 15310011 15319999 1000
Customer: Special G/L
1000 15320000 15329999 2100
Transaction
X
1000 15333000 15999999 1000
1000 16100000 16109999 1000
1000 16110000 16199999 1000
1000 16200000 16299999 5200
Withholding Tax
1000 16300000 16899999 1000
1000 16900000 16999999 1000
1000 21100000 21310069 7000
Fixed Assets
Vendor: Special G/L
1000 21310070 21310070 3100
Transaction
X
1000 21310071 21314999 7000
Fixed Assets
1000 21315000 21315000 7000
Fixed Assets
1000 21315001 21316999 1000
1000 21317000 21317050 6000
Material
1000 22100000 22199999 1000
1000 22200000 22299999 1000
1000 22300000 22399999 1000
1000 22400000 22499999 1000
1000 23100000 23109999 6000
Material
1000 23210000 23309999 2000
Customer
1000 23310000 23399999 1000
1000 23400000 23599999 4000
Cash Account
Vendor: Special G/L
1000 23610000 23640999 3100
Transaction
X
1000 23641000 23729999 1000
1000 23730100 23829999 1000
1000 23830000 23830399 3100
Vendor: Special G/L X
Page 31 of 189
Business Blue Print

SUPERSEDES: N/A
Account Account
COA from
to
Categeroy Description
Overrd.
Transaction
1000 23831000 23899999 1000
1000 24110000 25149999 1000
1000 25150000 25399999 1000
1000 31000000 32999999 30000
Revenue
1000 33000000 33999999 30000
Revenue
1000 40000000 49999999 20000
Expense
1000 50000000 59999999 20000
Expense
4.1.4
Document Splitting Characteristics for GL Accounting
Every business transaction that is entered is analyzed during the document splitting process
by the system. In this process, the system determines which splitting rule needs to be
applied to the document. In order to determine the splitting rule by the system, must assign a
business transaction variant to each Document Type.
Splitting rule is assigned appropriately, to the relevant documents must meet requirements.
These requirements relate in particular to certain item categories. This information is
specified for each business transaction variant and is checked against the current document
during posting. If the document does not meet these requirements, the system rejects the
posting, stating that document split is not able carryout.
Document type is generally used for a large variety of business transactions that would also
have to be treated differently in document splitting.
While posting the transactions, system will check the combination of GL Account and
Document Type to arrive the splitting rules.
Example Bank Transaction posting
Cash and Bank GL Account - Cash Account
Document type
- Payment Transactions
The following are the splitting rules assigned to the Document Types.
Page 32 of 189
Business Blue Print

Document Document
Type Transaction
Type
Description
Type
AA
Asset posting
0000
Accounting
AB
document
0000
AF
Dep. Postings
0000
AN
Net Asset Posting
0000
C0
Cash Voucher
0000
C1
Cash Receipt
0000
C2
Cash Payment
0000
CH
Contract Settlement 0000
DA
Customer document 0200
Customer
credit
DG
memo
0200
DR
Customer invoice
0200
DZ
Customer payment
1000
ED
Excise Document
0000
EU
Euro Rounding Diff.
0000
EX
External Number
0000
KA
Vendor document
0300
KG
Vendor credit memo 0300
KN
Net Vendors
0300
Account
KP
Maintenance
1010
KR
Vendor invoice
0300
KZ
Vendor payment
1000
ML
ML Settlement
0000
PR
Price change
0000
Sub.Cred.Memo
RA
Stlmt
0000
Reserve for Bad
RB
Debt
0000
RE
Invoice - gross
0300
RN
Invoice - net
0300
RV
Billing doc.transfer
0200
G/L
account
SA
document
0000
SB
G/L Account Posting 0000
SK
Cash Document
0000
Settlement
SL
Document
0000
Adjustment
SU
Document
0000
TD
EWT - TDS
0000
UE
Data Transfer
0000
WA
Goods issue
0000

SUPERSEDES: N/A
Transaction
Type
Description
Variant
Unspecified posting
0001
Name
Standard
Unspecified posting
Unspecified posting
Unspecified posting
Unspecified posting
Unspecified posting
Unspecified posting
Unspecified posting
Customer invoice
0001
0001
0001
0001
0001
0001
0001
0001
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Customer invoice
Customer invoice
Payments
Unspecified posting
Unspecified posting
Unspecified posting
Vendor invoice
Vendor invoice
Vendor invoice
Clearing
transactions
(account maint.)
Vendor invoice
Payments
Unspecified posting
Unspecified posting
0001
0001
0001
0001
0001
0001
0001
0001
0001
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
0001
0001
0001
0001
0001
Standard
Standard
Standard
Standard
Standard
Unspecified posting
0001
Standard
Unspecified posting
Vendor invoice
Vendor invoice
Customer invoice
0001
0001
0001
0001
Standard
Standard
Standard
Standard
Unspecified posting
Unspecified posting
Unspecified posting
0001
0001
0001
Standard
Standard
Standard
Unspecified posting
0001
Standard
Unspecified posting
Unspecified posting
Unspecified posting
Unspecified posting
0001
0001
0001
0001
Standard
Standard
Standard
Standard
Page 33 of 189
Business Blue Print

Document Document
Type Transaction
Type
Description
Type
WE
Goods receipt
0000
WI
Inventory document 0000
Goods
WL
issue/delivery
0000
WN
Net Goods Receipt
0000
X1
Recurring entry doc. 0000
X2
Sample document
0000
ZO
CO-FI Posting
0000
ZP
Payment posting
1000
ZR
Bank reconciliation
0400
ZS
Payment by Check
1000
ZV
Payment Clearing
1010

SUPERSEDES: N/A
Transaction
Type
Description
Variant
Unspecified posting
0001
Unspecified posting
0001
Unspecified posting
Unspecified posting
Unspecified posting
Unspecified posting
Unspecified posting
Payments
Bank account statement
Payments
Clearing
transactions
(account maint.)
Name
Standard
Standard
0001
0001
0001
0001
0001
0001
0001
0001
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
0001
Standard
4.12 Retained Earnings Account

Before including P&L statement accounts in the chart of accounts, it is required to specify
the retained earnings account to which profits or losses are transferred. There is a special
program designed to transfer these amounts to this account. In order for this program to be
able to carry forward the profit or loss, it is required to enter the number of this retained
earnings account in the system.
Each P&L account is assigned to a retained earnings account via a key. You have to enter
this key in the P&L statement account type field found in the chart of accounts area of each
P&L account.
Chart of Accounts
1000
P&L Statement Account Type

X
GL Account
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SUPERSEDES: N/A
5 Master Data
7.1 FI Master Data
7.1.1
General Ledger
The basic element of the master data structure in the GL is the chart of accounts. Chart of
Account will be assigned to a Company Code. Chart of Account contains the master list of
general ledger accounts that are required for external reporting for the Company Code /
organization.
Chart of Accounts is a classification of GL accounts, through GL account grouping i.e.
Balance Sheet Accounts, PL Accounts. It provides a framework for the recording of values,
in order to ensure an orderly recording of accounting data.
The chart of accounts contains the definitions of all GL accounts that are going to be used by
the Organization.
In SAP, the GL account traditionally represents what most organizations refer to as the
natural account (e.g. travel expense, sales revenue etc). The internal/management reporting
structures such as cost centers are not embedded in the GL account. These structures are
represented in the Controlling module.
General Ledger Master Data Maintenance Functions
SAP provides the following functionality for maintaining GL account master records:
Create a new account at Chart of Account Level
Extend the new account at Company Code Level
Create a new account centrally ( both COA and Company Code level)
Create a new account with template
Change an account
Display an account
Block/unblock an account for creation, posting
Mark an account for deletion
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The above operations may be undertaken at the chart of accounts level, the company code
level, or centrally against both levels.
The ARCH general ledger account maintenance requirements will be centralized and
creation of any new accounts will go through an approval process.
Account Group
When creating a GL account within a chart of account, it must be assigned to an Account
Group. The account group determines the individual master data fields that are relevant to
the master record at Company Code level and the GL Account number (whether it is falling
within the number range of Account Group or not).
The Account Groups and the G/L Account Number Range for Chart of Accounts 1000 is as
follows.
Account
Group
111
112
113
114
115
116
117
118
121
122
123
124
125
131
141
151
152
153
154
160
161
162
163
191
Text
Share Captial - Equity Shares
Share Captial - Share Application Money
Res & Sur - Capital Reduction Reserve
Res & Sur - Securities Premium Account
Res & Sur - Debenture Redemption Res A/c
Res & Sur - General Reserve
Res & Sur - Subsidy (State Investment)
Res & Sur - Accumulated P& L A/c
Secured Loans - Debentures
Secured Loans - Term Loans
Working Capital Loans
Hire Purchase Loans
Unsecured Loans
Deferred Tax Liability
Sundry Creditors
GR/IR Clearing Accounts
Other Clearing Accounts
Initial Balances
Outstanding Liabilities
Salary Payables
Duties & Taxes - TDS
Duties & Taxes - Sales Tax
Duties & Taxes - Excise Duty & Service Tax
Provisions - Taxation
From No.
11100000
11200000
11300000
11400000
11500000
11600000
11700000
11800000
12100000
12200000
12300000
12400000
12500000
13100000
14100000
15100000
15200000
15300000
15400000
16000000
16100000
16200000
16300000
19100000
To No.
11199999
11299999
11399999
11499999
11599999
11699999
11799999
11899999
12199999
12299999
12399999
12499999
12599999
13199999
14199999
15199999
15299999
15399999
15499999
16099999
16199999
16299999
16399999
19199999
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192
211
212
213
221
222
223
224
231
232
233
234
235
236
237
238
241
251
310
320
401
402
403
411
421
422
423
424
425
431
441
511
Provisions - For Dividend

Fixed Assets Gross Block
FA - Accumulated Depreciation
Fixed Assets - CWIP
Investments - Shares
Investments - Mutual Funds
Investments - Share Application Money
Investments - Govt. Securities
Inventories
Sundry Debtors
Branch Accounts
Bank Accounts
Cash In Hand
Loans and Advances
Duties & Taxes Recoverable - ST, IT, Incentive
& others
Deposits
Duties & Taxes Recoverable - Excise Duty
Duties & Taxes Recoverable - Service Tax
Sales Accounts
Other Receipts
Consumption
Purchase A/c's & Purchase Off-setting A/c
Consumption - Scraps
Other Manufacturing Expenses
Staff Cost
Administration Expenses
Selling & Distribution Expenses
Financial cost
Exchange Fluctuation
Depriciation & Amortisation
Prior Period & Extra-ordinary items
Provision , Appropriation & Dividend

SUPERSEDES: N/A
19200000
21100000
21200000
21300000
22100000
22200000
22300000
22400000
23100000
23200000
23300000
23400000
23500000
23600000
19299999
21199999
21299999
21399999
22199999
22299999
22399999
22499999
23199999
23299999
23399999
23499999
23599999
23699999
23700000
23800000
24100000
25100000
31000000
32000000
40100000
40200000
40300000
41100000
42100000
42200000
42300000
42400000
42500000
43100000
44100000
51100000
23799999
23899999
24199999
25199999
31099999
32099999
40199999
40299999
40399999
41199999
42199999
42299999
42399999
42499999
42599999
43199999
44199999
51199999
General Ledger Account Fields

There are two segments in the General Ledger Master record:
a. Chart of Accounts Segment
b. Company Code segment
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The following table describes some of the important fields in the GL account master record
and their significance:
Sr. No.
Field Description
Description
G/L Account Number
The G/L account number identifies the G/L

account in a chart of accounts
Company Code
The company code in which the GL account will

get used. This field will be populated in order to
specify company code specific items in the GL
master.
G/L account group
An object whose attributes determine the

creation of master records. An account group
must be assigned to each master record. It
controls account number ranges and screen
layouts.
Account is a balance sheet Indicates that the G/L account is managed as a

account
balance sheet account.
P&L statement account
Indicates that the G/L account is managed as a

P & L account.
Description (Short text)
Short text is used for online displays and

evaluations which do not have sufficient space
for the long text. (20 Characters )
Description (Long Text)
Given sufficient space, long text is used for

online displays and Evaluations. (50 Characters
)
Account currency
Enter the currency in which the account is to be

managed I.e. generally the company code
currency.
Indicator:
Only
Manage Allows you to maintain balances only in local
Balances in Local Currency
currency
10
Exchange Rate Difference Key
The system uses this key to find the accounts

for gains and losses for the valuation of foreign
currency balances
11
Valuation Group
A valuation group can include a number of

different freely definable G/L accounts
12
Tax Category
Determines whether the account is a taxrelevant, a tax account, a tax-relevant G/L

account
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SUPERSEDES: N/A
Sr. No.
Field Description
Description
13
Posting without tax allowed
Indicates that the account can still be posted to

even if a tax code has not been entered
14
Recon Account Type
An entry in this field characterizes the G/L

account as a reconciliation account for vendors,
customers or assets. The reconciliation account
ensures the integration of a sub ledger
accounts into the general ledger.
15
Alternative account number in The alternative account number field in the

company code
company code area is freely definable. This
field can be used to track the related legacy
account number.
16
Indicator:
management
17
Indicator: Line Items Display
Indicates that line item display is possible in this

account. Do not set this indicator for accounts
in which the number of postings is so great that
line item display online would not be
advantageous.
18
Sort Key
Specifies a basis on which line item reports of

that particular GL account would be sorted.
19
Field status group
Determines the screen layout for document

entry. Fields can have the following statuses.
(1)Optional entry - you can enter data in the
field. (2)Mandatory entry - you must enter data
in the field. (3)Suppressed - the field does not
appear on the screen.
20
Indicator: Posted automatically This indicator means that the account can be
only
only posted through by way of automatic
system postings. No manual entry would be
possible.
Open
item Setting this indicator on allows display of the

open and cleared items and amounts in an
account.
we can add P&L statement account type (will

applicable in case of having Non-Leading
ledger for IFRS), house bank, planner group
etc.
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7.1.2

SUPERSEDES: N/A
Customer Account
The customer master record contains all the data required to do business with the customer.
Data in customer master records also control how transaction data is posted and processed
for a customer. Individual fields within the customer master record are also used:
As default values when posting to the account
For restricting access to particular accounts through authorization groups
To control cash management forecast
Accounts Receivable Master Data Maintenance Functions

SAP provides the following transactions for maintaining Accounts Receivable master
records:
Create a new account
Change an account
Display an account
Block/unblock an account
Set the deletion indicator
The above operations may be undertaken at the general/company code level, the sales area
level or centrally against both levels.
The ARCH accounts receivable account maintenance will be centralized with ARCH Co SAP
Support Team, Hyderabad, and that the creation of any new accounts will go through an
approval process.
Data in the customer master is stored in 3 views:
General Data: Data that applies to all company codes and sales areas (e.g.
customers name, addresses, language and telephone data).
Company Code/Accounting Data: Data that is specific to a company code (e.g. the
reconciliation account number, payment terms and dunning area).
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Sales Area Data: Data specific to the sales area of the company (e.g. sales office,
sales district, pricing information, as well as information relating to shipping and
billing).
Customer Reconciliation Account
Customer account is linked with General ledger with a reconciliation account (operative chart
of account). A reconciliation account is account to which one or more customers account is
attached. The reconciliation account is to be maintained in customer master data.
Account Groups
The account group determines the data that is relevant for the master record, and a number
range from which numbers are selected for the master records. ARCH uses the following
account groups with external number.
The Customer Account Groups and their number ranges for the Arch Pharmalabs Limited
are as under.
Sr.
No.
Account
Group
Account Group Description
Numbering
Scheme
From
Number
To
Number
1
2
3
4
5
6
7
8
ZE01
ZD01
ZE02
ZD02
ZE03
ZD03
ZDIC
ZDIP
Exports (Sold-to-Party)
Domestic (Sold-to-Party)
Exports (Ship-to-Party)
Domestic (Ship-to-Party)
Exports (Bill-to-Party)
Domestic (Bill-to-Party)
Inter Company Customer
Plants (For Stock Transfer)
10
20
11
21
12
22
90
09
100000
200000
110000
210000
120000
220000
900000
1000
109999
209999
119999
219999
129999
229999
909999
9999
Payment Terms
Payment terms enable the system to determine the required terms of payment automatically.
The specified terms of payment are assigned using a key. This key can be:
Stored in the master record of the customer account (in the sales view and in the
accounting view)
Entered when the FI document is created (or changed)
Entered when the logistics documents (in the sales order and the outgoing invoice,
for example) are created (or changed)
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Terms of payment include settings for the payment terms, the day limit, the baseline date for
payment, and installment payments. Baseline date determines the date from which payment
terms will be calculated. The Baseline date will be defaulted from the Document Date of the
document. The Payment Due date is arrived as follows:
Payment Due Date = Baseline Date + No of days from the Payment Terms
7.1.3
Vendor Account
The vendor master record contains all the data required to do business with the vendor. Data
in vendor master records also control how transaction data is posted and processed for a
vendor. Individual fields within the vendor master record are also used:
As default values when posting items to the account. E.g. payment terms specified in
the master record are used on invoices posted against that vendor.
For processing business transactions e.g. bank details and the types of payment
method (check or bank transfer)
To control cash management forecast
Accounts Payable Master Data Maintenance Functions

SAP provides the following transactions for maintaining Accounts Payable master records:
Create a new account
Change an account
Display an account
Block/unblock an account
Set the deletion indicator
The above operations may be undertaken at the general/company code level, the
purchasing organization level or centrally against both levels.
The Arch accounts payable account maintenance will be centralized with Arch Support
Team, Hyderabad, and that the creation of any new accounts will go through an approval
process.
Data in the vendor master is stored in 3 views:
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General Data: Data that applies to every company code and purchasing organisation
(e.g. the vendors name, addresses, language and telephone data).
Company Code/Accounting Data: Data that is specific to a company code (e.g. the
reconciliation account number, payment terms, and payment methods).
Purchasing Organisation Data: Data specific to the purchasing organisation of the

company (e.g. settings for request for quotations, purchase orders, invoice
verification and inventory control). The Materials Management module is required to
enter this data and to print purchase orders.
Vendor Reconciliation Account

Vendor account is linked with General ledger with a reconciliation account. A reconciliation
account is account to which one or more vendor account is attached. The reconciliation
account is to be maintained in vendor master data.
When you post items to a subsidiary ledger, the system automatically posts the same data to
the general ledger. These reconciliation accounts ensure that there are no differences
between the balance of G/L account and the total of subsidiary ledger. This means that you
can draw up balance sheets at any time without having to transfer totals from the sub
ledgers to the general ledger.
You have to specify a reconciliation account in every vendor master record.
Account Groups
Account group determines the data that is relevant for the master record, and a number
range from which numbers are selected for the master records.
The Vendor Account Groups and their number ranges for the Arch Pharmalabs Limited are
as under
Sr.
No.
Account
Group
Account Group Description
Numbering
Scheme
From
Number
To
Number
1
2
3
4
ZDOM
ZIMP
ZCPD
ZCPI
Domestic Vendors
Import Vendors
Domestic Capital Vendors
Import Capital Vendors
10
11
12
13
100001
110001
120001
130001
109999
119999
129999
139999
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5
6
7
8
9
10
11
12
13
14
15
16
ZEXV
ZSER
ZSCV
ZTPV
ZMFG
ZFIN
ZEMP
ZINT
ZPLJ
ZMGT
ZOTV
ZPLT
Expense Vendors
Service Vendors
Sub Contract Vendors
Transport Vendors
Manufacturer
Finance Vendors
Employee Vendors
Affiliated Vendors
Plants (For Job Work)
Allied Vendors
One Time Vendor
Plants (For Stock Transfer)

SUPERSEDES: N/A
14
15
16
17
18
19
20
21
22
23
24
99
140001
150001
160001
170001
180001
190001
200001
210001
220001
230001
240001
1000
149999
159999
169999
179999
189999
199999
209999
219999
229999
239999
249999
9000
Payment Terms
It is the key for defining payment terms composed of cash discount percentages and payment
periods. It is used in purchase orders and invoices.
Some of the payment terms applicable for Vendors is given below:
Payment Term
Payment Description
M001
100% Advance by T/T
M002
100% DP at Sight
M003
100% Cash Against Documents
M004
100% Advance with PO
M005
100% Against Delivery
Some of payment terms applicable for Customers is given below:

Payment Term
Payment Description
SD60
60 days from the date of Supply
SD90
90 days from the date of Invoice
SE90
DA 90 days from AWB date
Terms of payment include settings for the payment terms, the day limit, the baseline date for
payment, and installment payments. Baseline date determines the date from which payment
terms will be calculated. The Baseline date will be defaulted from the Document Date of the
document. The Payment Due date is arrived as follows:
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SUPERSEDES: N/A
Payment Due Date = Baseline Date + No of days from the Payment Terms
Note: Vendor payment terms are recorded in both Accounting Data view of Company Code Area
and Purchasing Organization view, and apply respectively to the creation of financial documents
and logistics documents. User has to maintain the same payment terms in both the areas of the
Vendor Master Record, to synchronize the data and flow the values to Financial Accounting.
Payment Methods
The payment method in the Vendor master determines the form or payment carrier (such as
check, bank transfer) of payment for a line item, and the relevant bank account that a payment
will be made out of. Some of the payment methods which will be used for Arch:
Payment Method
C
T
Description
Check
Bank Transfer
Vendors as Customers:
ARCH has vendors as customers. Hence in the customer master data, vendor field is
updated with Vendor. And in vendor master data, customer field is updated with customer
code. By this ARCH will know the net payables/receivables.
7.1.4
Bank Accounting
Bank Accounting takes care of the transactions, which take place with the Banks the
company, is dealing with. It is further subdivided on the basis of incoming & outgoing
payments. House banks take care of all the banks with which the organization deals with on
a day-to-day basis. House bank Master records contain all information about the particular
house bank and also the Accounts maintained by the organization in the respective House
bank.
7.1.5
House Banks
A house bank is any banking institution with which the organization conducts business. Bank
master record data includes the bank key, the name of the bank, the address and country
specification. Each house bank of a company code is represented by a bank ID and every
account at a House Bank by an account ID. G/L accounts will be created and assigned for
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SUPERSEDES: N/A
the various bank accounts. The G/L account shall be managed in the same currency as the
account at the bank.
Some of the house banks can be maintained for ARCH as below:
House Bank Description

Code
Allahabad
Bank
ALM01
Account ID
Bank Key
Account No.
Branch
CA01
Fort
5001624845
Fort,
Mumbai
ALM01
Allahabad
Bank
CC01
Fort
50019150341
Fort,
Mumbai
AXM01
Axis
Bank
Ltd Fort - CC01
OD
Fort
004010300020873 Fort,
Mumbai
7.1.6
Fixed Assets
The Fixed Asset Master Data component is used for recording the master data of fixed
assets on an individual asset basis. A fixed asset is defined as an individual economic good
that it is recognized in the balance sheet at the time of closing, and is in the long-term
service of the enterprise.
Asset Classes: From an accounting point of view, the asset class is the most important
element for structuring fixed assets. Each asset must be assigned to one asset class only.
The asset class assigns the assets and their business transactions to the appropriate
general ledger accounts. Several asset classes can be assigned to the same account. This
makes it possible for fixed assets to be structured in more detail at asset class level.
Data for Calculating Asset Values
Depreciation terms in the asset master record can be specified for each depreciation area. In
order to make these specifications, the master record contains an overview of the
depreciation areas. In addition, there is a detailed display available for each depreciation
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SUPERSEDES: N/A
area. If there are depreciation areas that are not needed for a specific asset, it is possible to
deactivate these depreciation areas at the asset level.
The Finance Department will be responsible for creating or changing asset master records.
Fixed Asset Classes and its number ranges have been defined for the Arch Pharmalabs
Limited are as below.
Asset
Class
Asst Class Description
Number
range
NR From
NR To
1000
Land Freehold
10
110000001
110999999
1100
Land Leasehold
11
111000001
111999999
1200
Buildings Factory SLM
12
112000001
112999999
1250
Building Factory WDV
13
113000001
113999999
1300
Buildings - Non-Factory SLM
14
114000001
114999999
1350
Buildings - Non-Factory WDV
15
115000001
115999999
2000
Plant & Machinery SLM
20
120000001
120999999
2050
Plant & Machinery WDV
21
121000001
121999999
2100
Plant & Machinery LVA
22
122000001
122999999
2200
Lab Equipment SLM
23
123000001
123999999
2250
Lab Equipment WDV
24
124000001
124999999
2300
Lab Equipment-LVA
25
125000001
125999999
2400
Safety Equipment SLM
26
126000001
126999999
2450
Safety Equipment WDV
27
127000001
127999999
2500
Safety Equipment-LVA
28
128000001
128999999
2600
Air Conditioners SLM
29
129000001
129999999
2650
Air Conditioners WDV
30
130000001
130999999
2700
Air - Conditioners LVA
31
131000001
131999999
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Asset
Asst Class Description
Class

SUPERSEDES: N/A
Number
range
NR From
NR To
2800
Electrical Installation SLM
32
132000001
132999999
2850
Electrical Installation WDV
33
133000001
133999999
2900
Electrical Installation-LVA
34
134000001
134999999
3000
Office Equipment SLM
35
135000001
135999999
3050
Office Equipment WDV
36
136000001
136999999
3100
Office Equipment LVA
37
137000001
13799999
Furniture & Fixtures SLM
38
138000001
138999999
3250
Furniture & Fixtures WDV
39
139000001
139999999
3300
Furniture & Fixtures LVA
40
140000001
140999999
3400
Computers SLM
41
141000001
141999999
3450
Computers WDV
42
142000001
142999999
3500
Computers LVA
43
143000001
143999999
Vehicles SLM
44
144000001
144999999
Vehicles WDV
45
145000001
145999999
Software
46
147000001
147999999
4100
Software LVA
47
147000001
147999999
4200
Product Development
48
148000001
148999999
4300
Technology
Copyright
49
149000001
149999999
4400
Drug Master File
50
150000001
150999999
5000
Asset Under Construction (w/o PS)
51
151000001
151999999
5100
Asset Under Construction (PS)
52
152000001
152999999
320
0
3600
3650
4000
Transfer/
Patent
&
Once the asset classes are defined different asset master records will be created under the
asset classes.
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SUPERSEDES: N/A
While creating asset data the following data has to be entered
Assets Class
Company Code
Description of assets
Serial number
Quantity & Unit of Measure
Location
Cost Center
Plant
Vendor Name
Room No.
Evaluation Group
Depreciation Key
Location field in master data will be used by ARCH for the purpose of entering/identifying
the physical location of asset.
Evaluation Groups: Evaluation groups can be used for reports to sort assets
according to the criteria required. You can use 4 evaluation groups. The evaluation
groups first have to be configured and then allocated correctly to the asset master
records.
The following will be the some of the evaluation groups for Arch:
Evaluation Group
1001
1002
1003
1004
1005
1006
1007
1008
1009
1010
1011
Description
AIR COMPRESSOR
AIR CONDITIONER
AIR CURTAIN
AIR HANDLING UNIT
AMBULANCE
ANALYSER
APPARATUS
ATTENDANCE SYSTEM
AUTO DISINTEGRATION TEST M/C
AUTO TITRATOR
AUTOCLAVE
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Evaluation Group
Description
1012
AUTOMATED DISSOLUTION
1013
BAR CODE READER
1014
BEDS
1015
BLENDER
1016
BOILER
1017
BRINE
1018
CABLE
1019
CAMERA
1020
CAR
1021
CCTV
1022
CENTRIFUGE
1023
CHAIN PULLY
1024
CHAIRS
1025
CHILLER
1026
CHIMNEY
1027
CLOCK SYSTEM
1028
COMPACTORS (FOR DOCUMENTS)
1029
COMPRESSION MACHINE
1030
CONVEYOR
1031
COOLING TOWER
1032
COUNTING MACHINE
1033
CROSS OVER BENCHES
1034
CRT MONITOR
1035
CUPBOARDS
1036
DATA LOGGER
1037
DEEP FREEZER
1038
DESKTOP
1039
DG SET
1040
DISSOLUTION UNIT
1041
DISTILLATION COLUMN
1042
DM WATER PLANT
1043
DRYER
1044
EJECTOR
1045
ELECRTICAL INSTALLATIONS
1046
EPABX
1048
EVAPORATOR
1049
FACTORY BUILDING
1050
FANS
1051
FAX MACHINE
1052
FILING CABINET
1053
FIRE ALARM SYSTEM
1054
FIRE EXTINGUISHER
1055
FIRE HYDRANT SYSTEM
1056
FLUID BED DRYER
1057
FORK LIFT
1058
FRIABILITY TESTER
1059
FTIR
1060
FTIS

SUPERSEDES: N/A
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Evaluation Group
Description
1061
FUME HOOD
1062
FURNITURE
1063
GAS CHROMATOGRAPH
1064
GAS PURIFICATION SYSTEM
1065
GEYSER
1066
GLASSWARE WASHING MACHINE
1067
HOIST
1068
HOT WATER SYSTEM
1069
HPLC
1070
HYDRAULIC PRESS
1071
HYDRAULIC TROLLEY
1072
INCUBATOR
1073
JET MILL
1074
LAB FURNITURE
1075
LAN CABLE
1076
LAN SWITCHES
1077
LAPTOP
1078
LCMS
1079
LEASEHOLD LAND
1080
LIFT
1081
MELTING POINT APPARATUS
1082
METAL DETECTOR
1083
METER
1084
MICRONISER
1085
MICROSCOPE
1086
MOTOR CYCLE 2 WHEELER
1087
MUFFLE FURNACE
1088
MULTIMILL
1089
NITROGEN PLANT
1090
NUTSCHE FILTER
1091
OFFICE WORKSTATIONS
1092
OIL BATH
1093
OTHERS
1094
OVEN
1095
OXYGEN GENERATOR
1096
PALLET TRUCK
1097
PALLETS
1098
PANEL
1099
PASS BOX
1100
PHONES
1101
PHOTO COPIER
1102
PHOTOSTABILITY
1103
PIPELINES
1104
POWER CONTROL CIRCUIT
1105
POWER DISTRIBUTION BOARD
1106
PRINTERS
1107
PROJECTOR
1108
PUMP

SUPERSEDES: N/A
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Evaluation Group
Description
1109
REACTOR
1110
RECEIVER
7.1.7

SUPERSEDES: N/A
Material Master
Material Master represent the various goods that are the subject of business activity.
Material Masters are used for goods which can be traded, used in manufacture, consumed,
or produced.
The data contained in the material master record is required for many functions like
Purchasing data for ordering, Inventory management data for posting goods movements and
managing physical inventory and also accounting data for material valuation.
Since materials are processed by various functional groups within a company and each
group will stores different information for the materials, the material master is subdivided into
information grouped by various functions or uses. Each group has a different view of the
material master record and is responsible for maintaining the data to support its function.
The valuation area is the organizational level at which material is valuated. When stock is
valuated at plant level, you can valuate a material in different plants at different prices. For
Arch, each Plant will represent a Valuation Area. Existing Material Types and Valuation
Classes are used for the valuation area of Company code Arch.
The Accounting views contain important data which is relevant to the Financial Accounting.
Consequently, only the Finance Department will have the authorization to maintain this view.
Important fields
Price Control - indicates the price control used to valuate the stock of a material. In the SAP
System, there are two types of price control:
S - Standard price - A constant price at which a material is valuated without taking

goods movements and invoices into account.
V - Moving average price - Price that changes in consequence of goods

movements and the entry of invoices, and which is used to valuate a material. The
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moving average price is calculated by dividing the value of the material by the
quantity of material in stock. It is recalculated automatically by the system after each
goods movement or invoice entry.
These two types of price control differ in how they handle price variances resulting from
goods receipts or invoice receipts
Valuation using a standard price has the following features:
All inventory postings are carried out at the standard price
Variances are posted to price difference accounts
Variances are updated
Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at
this price. If goods movements or invoice receipts contain a price that differs from the
standard price, the differences are posted to a price difference account. The variance is not
taken into account in valuation.
Valuation using a moving average price results in the following:
Goods receipts are posted at the goods receipt value.
The price in the material master is adjusted taking into account the delivered price.
If a material is assigned a moving average price (MAP), the price is automatically adjusted in
the material master record when price variances occur. If goods movements or invoice
receipts are posted using a price that differs from the moving average price, the differences
are posted to the stock account; as a result, the moving average price and the value of the
stock change.
For Arch all the materials i.e. Raw materials, packing material, spares will be valued using
Moving Average Price and Lab Chemicals will be valued at Moving Average.
Valuation Class is used to combine materials for assigning G/L accounts so that you do not
have to manage a separate stock account for each material. Based on the Material Types
the Valuation class will be assigned in the Material Master. Valuation Class determines which
stock account and offsetting account to be posted based upon goods movement.
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7.1.8

SUPERSEDES: N/A
FI - Master Data - Transaction / Activity Chart
Sl.No Transaction
T.code
1
Create/ Change / FS00
Display / Block GL
Account
4
5
7.1.9
Input
Output
User Role Controls
GL
Account General
FI Master GL to
be
Number,
Ledger
User
created under
Account
Account
existing
Group,
Text, created
Account
Sort Key, Field
Group
Status Group
Customer Account FD01/FD02 Account Group Customer
FI Master Account
create/Change/
/ FD03 / Company
Account
User
Group
and
Display
/ FD05
Code
Reconciliation
Block/Unblock
Name, Recon
Account
customer
(FI
Account,
Customers)
Payment terms
Vendor Account FK01/FK02/ Account Group Vendor
FI Master Account
(FI
Vendors) FK03
/ Company
Account
User
Group
and
Create / Change / FK05
Code
Reconciliation
Display
/
Name, Recon
Account
Block/Unblock
Account,
Vendor
Payment terms
House
Bank FI01/ FI02 / Bank Country House Bank FI user
Master Create / FI03
and Bank Key key
Change / Display
Asset
Master AS01
/ Asset
Class, Asset Master FI Master Asset Class
Create / Change / AS02
/ Text,
Cost
user
Display
AS03
Centre
Financial Accounting Master data Integration:
The following are the integration points:
Sl No
1
Module
CO
MM
SD
Details
To create the Primary Cost Elements, it is required to have the
corresponding General Ledger Account in the FI System.
Cost center and Profit center will be assigned corresponding Company
code
Material Master is being created in Material Management module.
Accounting 1 and Accounting 2 views will be extended on need basis.
Vendor Masters created in Material Management Module can also be
used for postings directly in Financial Accounting since Company code
relevant data will be maintained.
Customer Masters created in Sales and Distribution module can also
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be used in Financial Accounting directly, since Company code relevant
data will be maintained.
4
PP
General Ledger Accounts created in Financial Accounting can also be
used in Production planning module for material consumption and
Goods receipt.
7.2
CO Master Data
The Master data for Controlling, the following items are covered.
Ref No.
Description
Cost element
Cost Element Groups
Cost center
Cost Center Groups
Activity type
Activity type Groups
Statistical Key figures
Internal Order
Profit Center
10
Profit Center Groups
11
Material Master
7.2.1
Cost Elements
The cost element tells the nature and origin of cost. Cost Element is used for entering all
costs within the entire cost accounting system.
Cost element is of two types
Primary cost element: A primary cost element is an item in a chart of accounts, which is
used within controlling area to record the value-assigned to cost objects.
Secondary cost element: Secondary cost element exists only in Controlling. Second Cost
Element will be used to allocate costs within CO. Secondary cost element will not have any
link to GL in financial accounting.
Important Fields in Cost Elements
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Name: The cost element name is used for online displays and evaluations. When create a
primary cost element, the SAP R/3 System uses the corresponding general ledger account
name as the default for the cost element name.
Cost Element category: Number identifying a Cost element category, used only in the
Controlling (CO) component.
Primary Cost Element Categories: The following cost element categories used for primary
cost elements:
Cost Element Category
01
11
12
Description
Primary costs/cost-reducing revenues
Revenues
Sales deduction
The Cost element category for the Secondary Cost Elements differ from primary cost
element. For secondary cost element below categories are used.
Cost Element Category
31
42
43
Description
Order/project results analysis (For Order Analysis)
Assessment (Allocation purpose)
Internal activity allocation (Activity Type purpose)
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7.2.2
Cost Element Groups
Cost elements will be grouped for the purpose of allocation, planning, analysis and reporting.
One cost element can be assigned to multiple groups, based on the reporting requirements.
7.2.3
Cost Center
Cost center is the smallest organizational unit within the companys overall organizational
structure which collects cost for the purpose allocation, analysis and reporting.
Creation of new Cost Center: Whenever a new Cost Center is to be created, the Cost
Center Group and the Profit Center for the same would have to be determined.
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Change Cost Center: It will be possible to change the Cost Center Group for a Cost Center
in case the need arises.
Delete Cost Center: Cost Center can be deleted if there are no actual postings and if there
are no plan data for the same
Cost center naming convention will be first four digits of profit centre name and next four
digits are the cost centers. For Functional Cost Centers, department name will be the last
four digit code and for production department cost centers will be critical process areas.
Cost Center Hierarchy -1000STD has been maintained for Arch Pharmalabs Limited as
given as annexure-B to this document.
Important Fields in Cost Center
Person responsible : Person responsible for the given cost center
Cost Center category: Cost center categories determine the type of activity.
Department: In this field, enter the name of the department to which the cost center
belongs. Then it can be used for evaluations
Hierarchy Area: under which hierarchy group the cost center going to be creating.
Company Code: For which company code cost center is created.
Profit center: The actual postings made to the Cost Center are updated to this Profit
Center.
7.2.4
Cost Centre Groups
To combine similar cost centers to form cost center groups. You may then combine similar
groups into further groups to create a cost center hierarchy
You can use cost center groups:
In the information system to create reports for selected cost centers
To process multiple cost centers in a single transaction:
Cost center planning
Distribution
Assessment
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You must maintain the standard hierarchy for your controlling area in the master data. Here,
you have the option of creating and changing other cost center groups
7.2.5
Activity Types
The Activity Type classifies the specific activities that are provided by one or more Cost
Centers. If a Cost Center provides activities for other Cost Centers, Orders, Processes, etc.
then it implies that its resource is being used. The costs of these resources need to be
allocated to these receivers of the activity. Activity Types serve as the tracing factors for this
cost allocation. To plan and allocate the activities, the system records quantities that are
measured in activity units.
Important Fields
Activity Unit: For production related activity type unit of measure hour is used.
Cost Center categories: Indicator determining for which cost center types an activity
type is allowed for planning and as a sender in internal activity allocation.
Activity Type
Activity Type Description
1100
Machine Hours
1200
Labour Hours
1300
Quality Hours
1400
Power Units
7.2.6
Activity type groups
Activity type groups will be created for the purpose of analysis and reporting. The following
are the Activity Groups for Arch:
Activity Type group
1000
Name
Arch - Activity Group
7.2.7
Statistical key Figures
Statistical key figures serve as a basis for internal allocations and as references in the key
figure analysis framework.
The following are the Statistical Key Figures will be used by Arch:
Statistical Key Figure
1400
Name
Power units
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1500
Head Count

SUPERSEDES: N/A
7.2.8
Internal Order
Internal Orders are used to plan, collect and settle the cost of specific activity or task. They
can be monitored through their entire life-cycle i.e. from their initial creation, the planning and
posting of actual costs and the final settlement wherever required.
Statistical Internal Orders can be used for monitoring objects in Cost Accounting whereas
Real Orders can be used where the costs collected are to be capitalized.
7.2.9
Profit Centers
A profit center is a management oriented organizational unit used for internal controlling
purposes. Dividing company into profit centers allows to analyze areas of responsibility and
to delegate responsibility to decentralized units, thus treating them as companies within the
company.
Important fields in Profit Center
Profit Center Group: The standard hierarchy is a tree structure which displays the
organization of all the profit centers in one controlling area. Each profit center must be
assigned to a node in the standard hierarchy for its controlling area. This ensures that the
standard hierarchy contains all the profit centers in the controlling area.
Company Code: Company Code 1000 will be assigned to all Profit Centers of Arch.
Some of the Profit Centers for the Arch Pharmalabs Limited are as under:
Company Code
1000
1000
1000
1000
1000
Profit Center
110000
110010
110020
110051
110052
Profit Centre Description

HO Corporate Office
H O - Intermediates
Head Office - API
Head Office - FTE
HO - R & D Services
7.2.10
Material Master - Costing Views
Material master will be created part of the Logistics module. Some of the important fields
need to be updated in the Material master; the same has been discussed below.
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Important fields in Costing View

Origin Group: OrigiThe combination of the Cost Element and Origin Group is updated in the
Cost Component Structure. ARCH will use Origin Groups for all the Raw Material.
Material Origin: Origin group is a subdivision of Cost Element. When material costs are
calculated, each material is given a general ledger account to post the consumptions and
thus is assigned to a primary cost element. If origin group is maintained in the material
master, the combination of source group and cost element is updated.
If this indicator is selected, the material number will be written to the cost element itemization
in Controlling.
This enables the analysis of material costs in the information system in more detail.
Define calculation bases for determination of overhead rates for particular material
groups.
Define cost components in product costing for particular material groups.
Create rules for activating work in process for each material group.
The following are the Origin Groups assigned in the Material Master:
Z001 Key Material: Based on this key, Cost of the materials need to be identified in a
different line item, in cost component structure.
Variance Key: A key that ensures the object is selected during variance calculation. Also
controls whether scrap costs are reported in a separate category.
Variances can only be calculated for the orders for which a variance key has been entered.
This key is defaulted through the costing view in the material master record. If the variance
key is activated variance calculation in the variance key, the value of the scrap is calculated
at target cost and subtracted from the actual costs before the variances are determined.
Standard Variance Key 000001- Variance Calculation for orders will be used.
Costing lot size is used as the basis for costing of the material. The base quantity of the Bill
of Material should be maintained as the Costing lot size. Fixed cost will be identified for the
Costing lot size.
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Do not Cost the material is excluded from selection and BOM explosion, so that no cost
component split will be created by the costing process. The following is not possible, if this is
activated:
Material cost estimate
Sales order cost estimate
Profit Center- In the material master profit center will be assigned. Based on the
assignment, while posting the financial transactions for the material movement, system will
determine the Profit Center, automatically from the Material master. Based on the Plant /
material / product segment,
relevant profit center need to be assigned in the Material
Master.
7.2.10.1
Raw / Packing and Lab Chemicals
These materials are procured from the External vendor through Purchase order Process.
The material can be procured different source of supply and need to be classified based on
its duties / tax payment status. To meet this requirement, these materials are maintained
based on the following split valuation types:
Raw Materials
o Domestic purchase
o Domestic Excise Paid (excise inventorized)
o Imported purchase (Customs duty paid)
o Imported purchases (against advance license No customs duty payment )
Lab Chemicals
o Domestic purchase
o Imported purchase
Packing Materials
o Domestic purchase
The price control for all the above materials are V Moving Average Price.
7.2.10.2
Semi-finished and Finished Goods
In general goods which are manufactured internally are known as Semifinished goods or
Finished goods, based on its stage of manufacturing. In case of Arch some of the materials
are manufactured internally and purchased from external source. In view of this it is decided
to use a common material code, whether manufactured or procured. To identify the source of
the material, it has been decided to have the split valuation for the materials.
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In case of Semi-finished goods the following are the split valuation types and their price
control as follows:
Inhouse Manufacturing
-S
Domestic Job work
-V
Domestic Purchase
-V
Imported Purchase
-V
In case of Finished goods the following are the split valuation types and their price control as
follows:
Inhouse Manufacturing
-S
Domestic Purchase
-V
Imported Purchase
-V
7.2.10.3
Allied Products
Arch procuring some of the materials, based on the market demands and supplying to
customers and these materials are not manufactured internally.
These materials are
identified as Allied Products and received in Depots and sold to the customers from depots.
In case of Allied Products the following are the split valuation types and their price control as
follows:
Domestic Purchase
-V
Imported Purchase
-V
7.2.10.4
Stores and Spares / Operating Supplies
Spares and Operating supplies are in the nature of maintenance materials. Some of the
spares and consumables are being stored in the stores and consumed based on the
maintenance schedule or breakdown maintenance. Some of the materials are used as
regular consumption i.e. Consumables, Fuel, Coal, etc.,
In case of Stores and Spares the following are the split valuation types and their price control
as follows:
Domestic Purchase
-V
Imported Purchase
-V
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In case of Operating supplies the following are the split valuation types and their price
control as follows:
Domestic Purchase
-V
Imported Purchase
-V
Power / Fuel / Diesel
-V
7.2.10.5
Capital Inventory
Some of the materials, for construction of fixed assets and maintained as inventory, in the
stores. As and when required by the Project Engineering Department, stores department will
issue the goods to the project. All these nature of materials are created under the material
type Capital inventory. These materials can be procured locally and imported.
In case of Capital Items the following are the split valuation types and their price control as
follows:
Domestic Purchase
-V
Imported Purchase
-V
7.2.10.6
Material Types, Valuation Type, Valuation Class
Split
Mat
Type
Mat Description
Val Type
Mandatory
ZRAW
Raw Material
Domestic
Domestic
Paid
Mandatory
ZLAB
Mandatory
ZPKG
Mandatory
ZINT
Mandatory
ZFIN
Val
Type
Codes
DOM
Excise DOMEP
Import- Duty paid

Import- Adv Lice
Lab Chemicals
Domestic
Imported
Packing Material Domestic
Imported
Semi
Finished Inhouse- Mfg
Goods
Domestic- JW
Domestic- PUR
Import - PUR
Finished Goods
Inhouse- Mfg
Domestic- Trd
Import - Trd
Price
Val
Control Class
V
V
1000
IMP
IMPAL
DOM
IMP
DOM
IMP
MFG
V
V
V
V
V
V
S
1050
JOB
DOM
IMP
MFG
DOM
IMP
V
V
V
S
V
V
3050
3100
3150
4000
4050
4100
1100
1150
1200
1250
3000
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Mandatory ZTRG Allied Products- Domestic- Alp
for Trading
Different
Mat
Codes
Mandatory
Optional
Scrap
ZSPA
Stores/SparesEngg Goods
ZOPS
Mandatory
7.2.11
ZSRP
ZCAP
Operating
Supplies
Capital Materials
DOM
SUPERSEDES: N/A
V
4500
Import - Alp
IMP
V
S
4550
3900
Domestic
DOM
6000
Imported
DomesticConsumables
IMP
DOM
V
V
6050
6100
ImportedConsumables
IMP
6150
Power/
Fuel POW
Diesel,
LDO,
Furnace oil,Coal,
different
Mat
Codes
6500
Domestic
Imported
V
V
7000
7050
DOM
IMP
Controlling Master Data - Transaction / Activity Chart
Sl.No Transaction
T.code
1
Primary
Cost KA01
Element
KA02
KA03
2
Secondary
Element
Cost KA06
Delete
Element
Cost KA04
Display Changes KA05

to Cost Element
Cost
Element KAH1
Group
KAH2
KAH3
Cost
Center OKEON /
Standard
OKENN
Hierarchy
Cost Center
KS01 /
KS02 /
Input
Output
User Role Controls
/ GL
Account Primary Cost CO User
GL account
/ Number
Element will
must
be
Validity Period be created
FI Master created in the
Cost Element
User
system
Type
CO User
No
GL
Account
created with
same ID
Cost Element Cost Element CO BPO
No postings
Number
will
be
should made
deleted
CO User
/ Group ID
CO User
/ Group Name
Assign
the
Cost Elements
Controlling Are Controlling
CO BPO
Area
Standard
Hierarchy
External
10 Cost Center CO User
digit Code
is created or
Cost
authorization
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Sl.No Transaction
T.code
Input
Output
User Role Controls
KS03
Validity Date & displayed in
need to be
other
master the screen
maintained
data
8
Delete
Cost KS04
CO BPO
If
the
center
postings are
not made can
be deleted
9
Display Changes KS05
CO User
to Cost Center
10
Cost
Center KSH1 /
External ID
CO User
Groups
KSH2 /
Assign the cost
KSH3
centers
11
Activity Types
KL01 /
4 Digit External
CO User
KL02 /
number
KL03
12
Delete
Activity KL04
CO BPO
Type
13
Display changes KL05
CO User
to Activity Type
14
Activity Groups
KLH1 /
Group ID
CO User
KLH2 /
Assign Activity
KLH3
Types
15
Statistical
key KK01 /
4 Digit code for
CO User
Figures
KK02 /
Cost Center
KK03
16
Delete Statistical KK03DEL
CO BPO
No postings
key Figures
17
Profit
Center KCH1 /
Standard
COBPO
Standard
KCH5N
Hierarchy
Hierarchy
KCH6N
18
Profit Centers
KE51 /
6 Digit Code for
CO User
KE52 /
profit center
KE53
19
Delete
Profit KE54
Profit center to
CO User
No postings
Center
delete
20
Display
Profit 6KEA
Change in the
CO User
Center Changes
a report
21
Profit
Center KCH1 /
Profit
Center
CO User
Groups
KCH2 /
Group ID
KCH3
22
Internal Orders
KO01 /
Order type
CO User
KO02
IO Number
KO03
23
Internal
Order KOH1 /
Group ID
CO User
Will be used
Groups
KOH2 /
Assign the IO
in reporting
KOH3
24
Material Master
MM01
Material Type Material
MM Master Need to be
MM02 /
Industrial
Master will be User
maintained
MM03
Sector
maintained
Display to all
the
Plant
CO User
relevant
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Sl.No Transaction
T.code
Input
Output
Valuation Type,
etc.,
7.2.12

SUPERSEDES: N/A
User Role Controls
views
Controlling Master data Integration:
Sl No
1
Module
FI
MM
Details
code
Costing View will be extended on need basis
8 Business Processes Financial Accounting

8.1
General Ledger Accounting
General Ledger is the sub-module in which all of the financial accounting data for the legal
entity is recorded either manually or automatically through integrated processes. Business
transactions with a financial accounting impact are posted to the General Ledger submodule on a real-time basis either directly or through integration from other modules and FI
Sub-modules. Posting of entries in the general ledger are made using the accounts as
defined in the Chart of Accounts. The Financial General Ledger will allow Arch to:
Automatically and simultaneously post all sub-ledger items in the appropriate general
ledger accounts (through reconciliation accounts)
Simultaneously update the general ledger and cost accounting areas
Real time evaluation of and reporting on current accounting data, in the form of
account
Displays, financial statements and additional analyses
The general ledger will serve as a complete record of all business transactions for Arch. It is
the centralized, up-to-date reference for the rendering of accounts. Using the general ledger,
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ARCH will be able to check any financial transaction in any general ledger account in realtime processing by displaying the original documents, line items, and transaction figures at
various levels.
8.1.1
Posting General Ledger Journal Vouchers
Arch will post journal vouchers directly in the general ledger, which do not originate from a
sub-ledger or another module. Such entries could be to make corrections to the general
ledger or part of the period end process. ARCH will be able to post, Valid documents into
SAP System.
For posting a Journal Voucher, the following minimum information will be required in the
document header:
Posting date: This is the date on which the transaction is posted in the General
Ledger. It determines the posting period.
Document date: Issue date of the original document (not necessarily the same as
the posting date). For invoices it is called the invoice date.
Document type: Refers to the type of voucher pertaining to a specific Document

Number Range
Currency: Transaction currency in which the Document is posted.
Reference and Document header text will be additionally required for specific
Document Types.
Each Journal Voucher will have at least two line items, a minimum of one debit and one
credit.
Every line item contains a:
Posting key - a two-digit numeric key that controls how document line items are
entered and posted. The posting key
Specifies whether the line item is a debit or credit
Specifies the account type i.e. Customer, Vendor, General ledger account, Asset
and Material.
Contains Field Status definitions that are used as a factor in determining the
screen layout while posting transactions.
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G/L Account number The G/L Account created for Arch in the operating Chart of
Accounts 1000 will be used while posting Documents.
Amount All amounts shall be converted to the Company Code currency, if the
Document Currency is a foreign currency by the system automatically.
The Assignment field (alphanumeric, up to 18 characters) is updated automatically

with the data from the field referenced in the Sort Key field of the general ledger
account. The Assignment field will be used to sort line items during general ledger
line item display and Automatic Clearing. A value in the Assignment field can also be
manually entered.
Line Item Text (alphanumeric, up to 40 characters) user can enter an explanation to

the accounting line, as a information.
Since it is posted at the Company Code level, where balanced financial statements are
ensured, a document can only be posted if the total debits equal to the total credits. In the
system, a document is created for every business transaction and receives a unique
document number. Document number ranges are defined per company code and are
assigned to each document type in the system. Number ranges will be defined for each
fiscal year for financial documents.
8.1.2
Parking and posting Parked documents
Arch will be using the Document Park and Post functionality as a measure of introducing
internal control procedures. Both complete and incomplete documents can be parked and
then posted at a later date by a different user.
Parking Documents
Information entered as part of a parked document is only checked as to whether it exists.
Only a few fields - for example the posting key and account number will be the required
entry fields.
The authorization checks carried out for document parking are basically the same as those
made for standard document entry and processing. Instead of the activity "posting", the
activity "parking" is required for document parking.
Necessary authorizations will be
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SUPERSEDES: N/A
assigned which differentiate between users who only have parking authorization and those
who can park and post documents.
The required entry fields defined using the field selection strings in the Posting Key and G/L
Account Field Status Group are reduced to the status of optional entry fields.
No tolerance checks will be carried out while parking a document. Though Account
Assignment models can be used, Reference Documents will not be available for Document
Parking. Substitutions and validations will not be supported while parking a document, but
will be supported when parked documents are completed and posted.
Parked Documents will not update transaction figures but can be included in Document
Journals and in the reports for line items. Cash Management data will however be updated
with the preliminary posting.
When a parked document is saved, a message containing the document number is
displayed. Since these numbers are assigned in the same way as the standard document
posting function, the posted document will retain the parked documents number.
Posting Parked Documents
A parked document can be changed and gradually completed. A large number of header and
item fields can be changed during this process, including the amounts. Certain values that
cannot be changed are the currency and the company code. The data in parked documents
is deleted when they are posted, a document is written to the document database and the
appropriate data (transaction figures etc.) is updated. The number of the parked document
will be transferred to the posted document.
Parked documents can also be deleted. The Document No. of the deleted Parked Document
cannot be reused. The following are the some of the exceptions to the park documents:
Down Payments
Vendor/Customer clearing
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8.1.3

SUPERSEDES: N/A
GL Posting Using Reference Documents
8.1.3.1
Sample Documents
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 to save
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time during document posting. A document is created but does not update the transaction
figures. A separate number series will be used for Sample documents
8.1.3.2
Account Assignment Models
An account assignment model is a pattern for document entry. For posting the various
monthly closing entries, multiple account assignment models will be used to enter items in
list form using screen templates. The posting in the account assignment model does not
need to be complete. The blank fields will have to be filled when the model is actually used.
The account assignment model will be primarily used to post transactions to general ledger
accounts only. Using account Assignment model, it is not possible to post the Sub-ledger
transaction and GL Transactions together.
At the time of posting, the account assignment model can be called up multiple times within
one document to add the same line items over and over again. Other account assignment
models can also be used in the same posting. In addition, more line items can be added
manually and the pre-assigned fields can also be changed.
8.1.3.3
Recurring Document
Recurring Documents are created for processing transactions that are of routine and
repetitive nature. A recurring document needs to be created as a reference document. For
every recurring entry, a first run date and repeat run timeframe need to be given. At any point
in time, recurring entries pertaining to a specified period may be processed using options of
periodic processing.
Alternatively, a time schedule for processing these transactions may be entered and system
would automatically carry out the processing of such prescheduled transactions.
Recurring entries may be used for transactions recurring at periodic intervals.
In ARCH recurring entries can be used for recurring transactions like insurance, Interest and
rent etc.
Recurring documents can have two types of Schedule posting dates:
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Fixed Intervals - Fixed Day with period as interval, on the Fixed date system will post
entry
Date Schedule If the posting has to be done on irregular intervals, i.e. date is not
the same for all the posting periods, Run Schedule will be created, with the dates
actually to be posted. Based on the dates mentioned in the run schedule, system will
post the documents. Posting date determined based on the dates specified in rn
schedule.
8.1.4
Fast Entry Screens
Fast entry screens are used for quick entry of transactions having multiple line items. Fast
entry screens may be best used when majority of the fields are suppressed for a particular
business process transaction. This would simplify the procedure of document entry by
adopting a simplistic screen for document entry.
Entries in the fast entry screens would have similar validations at the time of posting as
compared to a normal transaction entry screen. The users can use the fast entry screens for
transactions with multiple line items.
Fast entry screens may be best utilized for general ledger / customer / vendor transactions
having multiple line items.
The following layout can be used for Arch for fast entry screen:
Layout
ZARCH
8.1.5
Description
Fast entry layout screen for Arch
Document Change
Some of the fields in the posted accounting document can be changed i.e. Header Text, Line
Item Text, Assignment Field, etc. Some of fields, in the posted accounting document, system
will not allow any changes i.e. Posting Key, Amount, Cost Center, Profit Center, etc. For
control purpose, all fields are being in display mode except Line item text and Document
Header reference (if the document is not cleared).
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8.1.6
Accounting Document Reversal

SUPERSEDES: N/A
User can reverse the posted document using the document reversal option. It is possible for
a user to make an error while posting. In order to provide an audit trail of the correction, the
user must reverse the document using the Document Reversal option.
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
reversal. The reason code also controls if the reversal date is allowed to be different from the
original posting date. Documents with cleared items cannot be reversed. The document
must first be reset.
Document reversal is possible in SAP only if
It contains no cleared items
It contains only customer, vendor, and G/L account items
It was posted with Financial Accounting
All entered values (such as cost center, and tax code) are still valid
If a line item from a source document has been cleared, a reversal can only be carried out
after the clearing is reset.
Mass Reversal can also be done for a particular set of documents.
8.1.7
Open item clearing of GL accounts
Open items reflect unfinished transactions. For example, a Liability that has not been settled
remains in the Liability account as an open item until it is settled. The open items of an
account can only be cleared once posting an identical offsetting amount to the account is
made. In other words, the balance of the items assigned to each other must equal zero.
During clearing, the system enters a clearing document number and the clearing date in
these items.
Open item management is automatically set for customer and vendor accounts. For GL
accounts, however, the open item management option has to be set in the master record
before any postings are done to the GL Account.
Open item management would be set for the following GL accounts:
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Goods receipt/invoice receipt Accounts

SUPERSEDES: N/A
Check issue and Check receipt accounts.
Clearing accounts like salaries payable, outstanding expenses, provisions, etc
Open items of an account can be cleared manually using the Account Clearing function, or
they can be cleared automatically by the system. Automatic clearing is especially useful for
clearing accounts in the GL account area.
Chart of Account
accounts
Type
From
Account
To
account
Criterion
Remarks
1000
1000
1000
1000
1000
1
A
A
1
999999999
Z
Z
29999999
ZUONR
ZUONR
ZUONR
ZUONR
XBLNR
Cenvat Clearing GLs
D
D
K
S
S
8.1.8
Financial Statement Versions
The financial statement version forms the basis for creating a balance sheet and profit and
loss statement. The SAP standard Financial Statement analysis allows for the comparison of
financial statements from two time periods, and the determination of the differences in the
individual financial statement items. Financial statement can be carried out for the following
time periods:
Year comparisons
Half-year comparisons
Quarterly comparisons
Monthly comparisons
In addition to financial statement, SAP provides a standard Balance Display report (Trial
Balance). This report facilitates the evaluation of transaction figures.
The following are the Financial Statement Versions for ARCH:
Sl. No.
Chart of Accounts
Financial Statement Version
1000 - ARCH Chart of Accounts
1000 - Financial statement version
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8.1.9
Closing Operations

SUPERSEDES: N/A
The following are the operations that are to be covered as a part of closing operations
The operations shall cover:
Monthly closings
Yearly closings
8.1.9.1
Month end closing

Month-end closing comprises all activities involved in closing a posting/accounting period.
Accounting period is a division of a companys fiscal year.
Each posting into the system must be associated with an accounting period. This is to
ensure that each transaction can be reported in the corresponding period. In the same time,
periods must be controlled to ensure validity of the reports.
The check list for month end process will be documented after the Realization Phase of this
project.
The below proposed flow for month-end processing shall be used as a guideline for this
blueprint as the activities may not be finalized until Realization phase.
Process Overview Explanation
Step
Procedures
Execute the recurring entry program and post the entries
2
3
Post the Provisional entries using sample document program and account
assignment model
Complete all the outstanding journal entries related to month end closing.
To prepare and post accrual journals.
To execute accrual reversal entries.
Asset Accounting
Project AUC Posting
Capitalize AUC Assets to Regular Assets
Depreciation Posting
Evaluate all Clearing Accounts (target to keep Zero balance in clearing
accounts)
GR/ IR clearing
Bank Sub-Accounts
Cash to Asset Clearing
Cash Bank Clearing
Cenvat Clearing
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Step
Procedures
8
9
Run foreign currency valuation transactions

Close posting period to ensure no transaction can take place in that period
and open new posting period.
Closing Process of Other modules
Billing Due list
Review the Vendor Invoice postings
Physical Inventory Verification
Controlling Closing process
Generate monthly reports:
Trial Balance
Profit & Loss statement
Balance sheet etc.
10
10
8.1.9.2
Year end closing
Year-end closing comprises all activities involved in closing the financial year apart from
Month-end closing activities.
The check list for year-end process will be documented after the Realization Phase of this
project.
The below proposed flow for year-end processing shall be used as a guideline for this
Step
Procedures
Carry forwarding of GL Balances
Carry forwarding of Customer/Vendor Balances
AUC Tracking
Fixed Assets fiscal year change
Fixed Assets Year end closing
Open new fiscal year.

Generate yearly reports:
Trial Balance
Profit & Loss statement
Balance sheet etc.
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8.1.10
SUPERSEDES: N/A
GL Process Steps
Main process
Description
1. General
2.
Parking
the document:
3. Sample
Document
of
Transaction
Process of SAP
code
FS00
F-02
FB03
FS10
Creation of new account

Creating a New GL and Posting an entry
Viewing a document
Posting of documents
Viewing an Account
Parking of documents Parking of the document
where
authorization
F-65
is
Releasing parked document

required before posting.
When
there is a
transaction which will be Creation of sample document
posted
every
FBV0
F-01
month
whose date is fixed but

amount is not fixed, this
Posting with reference
technique will be utilized.

When
there
is
a Creation
of
F-02
recurring
transaction which will be document

4. Recurring
Document
posted every month and Recurring document display

whose date and amount
F.15
are fixed, this technique
F.14
will be used.
Whenever there
is
Recurring document posting
a Posting of accrual / deferral
provision to be made for document

5. Accrual
FBD1
/ accrual
deferral
deferral
documents, SAP provides
documents
a screen to make it and

later
reverse
the
Reversing
the
accrual
deferral document
transaction.
of Whenever there is an Individual reversal
documents
error while posting SAP Mass reversal
Cleared item reversal
offers a methodology to
6. Reversal
make a reverse posting. A

reversal
FBS1
reason
is
F.81
FB08
F.80
See
cleared
items and do
un clearing and
reverse
it,
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Main process
Description

SUPERSEDES: N/A
Transaction
Process of SAP
code
FBRA
(to see
recently
cleared items),
configured and different

number
ranges
were
Accrual / deferral document
reversal reversal
Reversal of reversal
documents
from
FI
as
per
By using SAP we can see
given
7. General
Ledger
account
analysis
for
FAGLL03
of GL accounts and also

change
the
layout
of
display by adding any GL Balance Analysis

necessary things like cost
accounts
clearing
F-02
the line items / balances GL Line Item Analysis
center etc.,
Open
items
8. Account
F.81
in
ex.
FAGLB03
GL
Like
outstanding expenses can

be cleared one by one
and can be arranged in
Without
Specification
of
Clearing Currency
F.13
ascending / descending
9. Foreign
order and can be cleared.

In
closing,
foreign Define Valuation method
currency
currency loans or items
revaluation
related to foreign currency

can be revaluated using
the
transaction
represented
in
loss
assignment of exchange rate

to GL
or
F-02
the
balance sheet. Based on

either
Creation of GL accounts and FS00
and Posting of loan
FAGL_FC_VAL
OB59
profit
Repayment
(outgoing F-07
payment)
Revaluation of FC Transaction
FAGL_FC_VAL
different GL accounts can

be mentioned and the
values
automatically
can
sent
be
to
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Main process
Description
Process of SAP
SUPERSEDES: N/A
Transaction
code
those GL accounts to
Based
company
code
maintainonthe
balances.
or document type wise
payables
can
regrouped
be
receivables
to
represent in the company
10. Regroup
payables
receivables
code balance sheet or Vendor

companywide
consolidated
sheet.
Customer
Regrouping
F101
balance
Use
F101
to
generate a batch input

program
to
group
payables / receivables.
11. Maintain
GR/IR
Month end GR/IR open
Clearing
items document posting
Maintain GR/IR Clearing
MR11
Account
Whenever it is required to
accounts and FS00
calculate interest on GL Define GL
accounts
an
interest attach the interest indicators
12. Interest
calculation:
indicator
is
attached
with
set
the
and
GL
account master record, it

F-02
see Repayment by posting
Viewing
the
interest F-52
interest accrued based on
accumulated
number of days.
is also possible to
8.1.11
General Ledger Integration:
Sl No
1
Module
FI
Details
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code
Costing View will be extended on need basis
MM
8.2
Accounts Payable
In SAP, Accounts Payable works on sub-ledger concept and each vendor account is
assigned to a General Ledger Account. Such GL Account is updated as and when
transactions are posted to the Vendor Account. Such GL Accounts purpose will be to collect
the transactions posted into vendors that are link to it (through Vendor Master Record). Such
GL Accounts will not allow to post any direct entry into it.
Accounts Payable is the sub-module in which the financial accounting transactions involving
vendors and employees are recorded and administered. All postings in Accounts Payable
are recorded simultaneously in General Ledger. The components of Accounts Payable will
be closely integrated with components of Materials Management to support an automated
Procurement Cycle.
Primary tasks required for managing Accounts Payables include:
Maintaining Accounts Payables master data
Processing invoice and debit / credit adjustment transactions
Paying vendor liabilities
Analyzing vendor accounts
Key Improvements / Business Changes for Managing Accounts Payables
Ability to use systematic verification of invoices against purchase orders and goods
receipts
Automatic accrual for goods received but not yet invoiced
The following are the some of Account Payable Reconciliation Accounts;
Procurement process Vendors

o
Material Vendors
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o Capital Vendors
o

SUPERSEDES: N/A
Service Vendors
Vendor Managed only in Financial Accounting

o
Employee Vendors
Bills of Exchange
Transport Vendors
8.2.1
Vendor Down Payment
Advance payments will be made according to the terms of payments with the vendor. The
advance payments 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 Reconciliation GL Account assigned in the Vendor Master, which is called
Special GL account.
Special GL Indicator
A
B
Text
Down Payments other than Capex
Down Payments-Capital Items
8.2.2
Down payment request
A Down Payment Request is raised by the authorized person requesting for down payment.
Based on the request, a down payment may be released to the particular vendor and
request item is cleared.
When posting in SAP, processing of a down payment involves a number of steps:
Down Payment request, a notational item recorded against the vendor,
Make payment against the payment request,
Post the invoice which required the down payment,
Clear the down payment against the invoice, and
Make final vendor payment i.e. the balance of the invoice.
All down payments to Vendors can be paid only with reference to Down Payment Request
for the same or can be made down payment direct without reference to Down Payment
request. These Down Payment Requests shall identify the Vendor to whom the payment is
to be made, the special G/L indicator, the amount and the requested date for payment. The
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Down Payment Request can be made with reference to the Purchase Order Number and the
Line Item identification against which the down payment is to be made.
Down Payment Requests are only noted items and do not update any G/L Account
balances. However, since they can be managed as a line item in the account, line item
display will be active for the special G/L Account for Down Payment Requests.
The down payment can be cleared against the Invoice after the Invoice Verification is done.
The down payment can also be cleared while making an outgoing payment to the vendor.
Down payments will also be updated in the Purchase Order history.
An information message will be flashed at the time of invoice booking that a down payment
exists for the particular vendor. This message will only be displayed if the down payment
exists.
8.2.3
Vendor Invoice without Purchase Order
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As a matter of practice, Purchase order should be raised for all goods and services
procurement and vendor payments without a purchase order should be only on exceptional
basis. There are invoices of a purely financial nature, which are not generated by Materials
Management Module (MM) e.g. payment of utility bills, settlement of temporary advances
given to employees etc. Some of the invoices are as follows:
Delivery charges not part of the Purchase orders
Expenses not routed through Purchase / Service orders
Professional Charges not routed through Purchase / Service Orders
Travel Expenses Bills
In this case, there will not be any three way match and expenses will be posted directly from
the Vendor invoice itself. An FI invoice entry in SAP is made through transaction code FB60
or F-43 without reference to Purchase Order.
TDS will be calculated automatically by the system if applicable and on the basis of tax
codes assigned in Vendor Master code can be posted to TDS Payable account at the time of
posting of invoice/credit memo.
ARCH receives Vendor Invoices in respect of expenses for which Purchase Orders are not
created. These Invoices would be accounted for directly in the FI Module without any
procurement process. Since there are no preceding documents like Purchase Orders,
Goods Receipt / Service Entry Sheet, the Invoice would be physically verified and approved
by the concerned Department Head responsible for incurring the expense.
For posting a Vendor Invoice, the following minimum information will be required in the
document header:
Vendor Code
Posting Date: This is the date on which the transaction is posted in the General
Ledger and vendor sub ledger. It determines the posting.
Document date: Issue date of the original document (not necessarily the same as
the posting date). For invoices it is called the invoice date.
Reference: The Invoice No. (As mentioned by the Vendor in the Invoice) shall be
entered as Reference and the system shall check if an earlier Invoice has been
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entered for the same Vendor with the same Reference detail. An error message will
be issued in case of duplication in the Reference field.
Amount: The total amount of the Invoice
Document type
Currency
Document header text would be optional
G/L Account number: The G/L Accounts created for Arch in the operating Chart of
Accounts 1000.
Amount: All amounts shall be converted to the Company Code currency INR if the
Document Currency is a foreign currency.
Additional assignments including Cost Center would be required depending on the G/L
Account used. The Assignment field (alphanumeric, up to 18 characters) is updated
automatically with the data from the field referenced in the Sort Key field of the general
ledger account. A value in the Assignment field can also be manually entered.
8.2.4
Goods Receipt based Vendor Invoice Verification
The main task of the Invoice Verification component is to complete the procedure of
materials procurement by posting the vendor invoice and to pass on information concerning
the invoice to Financial Accounting and subsequent applications. Invoices that originate in
procurement of services can also be processed.
ARCH will use GR based invoice verification for all Domestic procurement processes.
An Invoice against a Purchase Order will be processed with reference to the Purchase Order
Number or the Delivery Note. An invoice for a service will refer to a service entry sheet.
Goods-receipt-based Invoice Verification must be defined in all purchase orders. Each
invoice item can then be matched up uniquely with the goods receipt item.
All deliveries or services provided by a vendor can be settled in a single invoice. On the item
list all purchase order items that match the reference allocation and that are ready to be
invoiced will be suggested.
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All invoice items in which the quantity expected to be invoiced is not zero will be selected by
default. Only the selected invoice items are copied to the document when you post the
invoice. Any invoice items that has been proposed and selected should be manually
deselected if they do not appear in the Vendors invoice.
In the Quantity column, the quantity to be invoiced will be proposed. This quantity will be the
difference between the quantity delivered and that invoiced so far for each goods receipt.
In the Amount column, the product of the quantity proposed and the order price will be
proposed. This amount will not include taxes.
The following information will be mandatory entry during the Invoice Verification process.
Document Date i.e. date of invoice
Posting Date
Invoice Number (Reference field)
Invoice Amount
Purchase Order / Delivery Note or Service Entry Sheet number
The following information will be then copied from the Purchase Order:
Vendor, terms of payment (if defined there), currency
Invoice items
The following information is derived from the Purchase Order history:
Quantity, Amount
Tolerances limits may be specified for different types of variances which are defined in the
various Tolerance Keys. When processing an Invoice, each item shall be checked for
variances between the invoice and the Purchase Order or Goods Receipt.
In the material master defined that the Goods Receipt of the material is subject to inspection
then the Invoice for the material should be blocked for payment due to Quality
Inspection/usage decision.
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It will not be possible to post an invoice before the goods receipt. Also, the invoice quantity
will not be greater than the actual delivered quantity.
All Invoices will be initially parked before being posted. For each incoming invoice, Invoice
Verification creates an MM invoice document and an FI invoice document. Both these
document numbers will be informed via the system message when the document has been
successfully processed. When the invoice is posted, the GR/IR clearing account is debited
and the vendor account is credited.
After the invoice has been posted, the document appears as an open item on the vendor
account. It will also update the purchase order history.
Double Invoice Check: Double Invoice check can be marked in Vendor Master and
the system will check for the incoming invoices and credit memos for
double/duplicate entries at the time of entry.
In checking for duplicate invoices, the system compares the following characteristics
default:
Vendor
Company Code
Gross Amount of Invoice
Reference document number
Invoice Posting date

If all these characteristics are the same, the system will issue an error message.
When you enter credit memos or subsequent adjustments, the system does not
check for duplicate invoices.
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8.2.5

SUPERSEDES: N/A
Goods Receipt based Invoice Verification for Imports
Purchase Orders in foreign currencies are created for imports of Raw material, or semifinished goods and capital assets. In case of Invoice Verification in respect of imports, the
currency of the document is determined from the Purchase Order currency. The exchange
rate differences are calculated from the exchange rate at the time of the goods receipt and
the exchange rate at the time of the invoice receipt. The difference between them will be
automatically calculated and posted to separate G/L Account so that the amounts posted in
Local Currency to GR/IR Clearing Account are identical.
Custom duty paid on the imports purchases is added in the value of the raw material. Also
other charges, related to the delivery, like transportation, clearing agent charges are added
to the value of material.
8.2.5.1
Direct Imports to Manufacturing Plant
The following are steps:
Duty Payment based on Bill of Entry
Invoice Posting for Duties as per Bill of Entry
Goods Receipt at Manufacturing plant
Cenvat posting for CVD
Invoice posting for Material Supplier
Invoice posting for other clearing charges
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8.2.5.2

SUPERSEDES: N/A
Imports through Bonding Process
The following are steps:
Goods Receipt at Bonding Logical Plant
Invoice posting for Material Supplier
Duty Payment
Purchase order in the name of bonding vendor with two line items, one is for transfer
and another for returns
Goods Receipt at Manufacturing plant
Cenvat posting for CVD
Invoice posting for other clearing Duties
Invoice posting for other clearing charges
8.2.6
Invoice for Delivery Costs
Freight charges are sometimes planned in the purchase order. More often, they are not
known in detail when the purchase order is created and are entered only in Invoice
Verification on the basis of information in the invoice. Therefore, delivery costs can be
divided into:
Planned delivery costs which are entered at item level in the Purchase Order
Unplanned delivery costs which are entered at invoice receipt.
For planned delivery costs, postings will be made to the GR/IR clearing account at goods
receipt. These postings are cleared when the invoice is posted.
Unplanned delivery cost will be posted to separate expense accounts when the stock is not
available.
8.2.7
Vendor Credit Memo Processing
In normal business transactions, there are instances whereby vendors will send credit
memos in order to reduce invoices. Such cases might arise due to incorrect invoiced amount
or rejection of goods. A credit memo is then required to substantiate the adjustment.
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Being an adjustment entry, credit memo shall affect Financials module only unless the
adjustment is related to MM such as good return etc.
The processes are similar to invoice processing. Only the accounting treatment will be
different. In SAP for only value related adjustment credit notes, FI can pass direct adjust
entry with reference to the particular invoice document. When the goods are rejected, the
process of credit note related to quantity and value is routed through Materials Management
and this process is similar to vendor bill booking process through logistics invoice
verification.
Only difference is that accounting entries which will be reverse of invoice
booking.
8.2.8
Loans / Advance to Employees
ARCH has various types of transaction excluding salary payments with its employees. For
the purpose of recording these transactions separately, the employees shall be created as
Vendor Accounts.
Since the majority of transactions with employees are in the form of advances related to their
carrying out their official duties, the normal reconciliation account for the Employee Vendor
Accounts shall be Employee Advances. Special G/L Transactions would be used for the
purpose of tracking different advances.
The following Special GLs identified for employee advances tracking:
1
2
3
8.2.9
Description
Salary Advance
Travel Advance - Domestic
Medical / other Advances
Payments to Vendors
Payments can be manual payments and automatic payments from time to time to pay the
outstanding Vendor Invoices which are due for payment. If the outgoing payment involves a
payment in foreign currency, the defaulted local currency would have to be changed to the
foreign currency being used for payment. The exchange rate maintained as on the Posting
Date which is defaulted can be changed if the buying rate is different.
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Separate bank sub-accounts for outgoing payment would be maintained for each House
Bank and Account. The bank sub-account from which payment is being made as well as the
payment amount and the bank charges, if any for the payment has to be determined in case
of manual payment. The bank charges would then be automatically posted to the
appropriate G/L Account.
Vendor payments can be recorded into system, in the following ways:
Manual payment (Write the check manually and post the corresponding accounting
entry into the Vendor account and bank account)
Post + Print ( Select the House Bank, Payment Method, Vendor, Open Item. Based
on which System will post the accounting document and print the check)
Automatic Payment (Based on the house Bank and Range of Vendors, system will
select the open due items for payment. Post vendor wise accounting entry and print
the check correspondingly Vendor wise. If the payment method is bank transfer,
system will not print the check and it will generate the DME file)
If the payment is being made through the printed check the following Header Data would be
maintained first
i.
Payment method as C for check
ii.
the House Bank from which the check is being issued
iii.
the Check lot which is being used
iv.
the printer defined for printing the check
The bank sub-account would be determined automatically from the House Bank.
Both normal open line items and special G/L line items can be selected while making the
payment. Additional selections can be made based upon specific fields including Amounts,
Document Number, Reference, etc. Additional field of Net Due Date will be available in the
display and for sorting so that the open items can be sorted based on their due dates.
Any under-payment or over-payments within the tolerance limits shall be accounted for in the
specified G/L Accounts. Similarly, in the case of payment in foreign currency any gain / loss
between the exchange rate for the payment and the original / revaluated open item will be
posted to separate Gain and Loss on realized foreign exchange G/L Accounts.
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ARCH will be usually making full payments against invoices. Occasionally partial payments
will also be made to the vendors. In case of partial payments, the invoice and the partial
payment amount shall both appear as open items.
Once the payment document is posted, the items selected for the payment shall be marked
as cleared items and no longer appear in the open item list. The number and posting date of
the payment document shall be updated in the documents which were cleared against it.
Additionally, in case of payment with print, the check shall be printed immediately on posting
the payment document and the check information created.
Payment advice and Payment Voucher will be printed subsequently.
8.2.10
Bills of Exchange
Bills of Exchange Payable are handled as Special G/L transactions in SAP.
These
transactions are maintained independently of other transactions in the subsidiary ledger and
are posted to an alternative reconciliation account in G/L. This allows the user an overview
of Bills of Exchange payable at any stage.
Step 1:
Vendor Invoice
ARCH post a vendor invoice through FI transaction or MM Transactions.
Step 2:
Payment by bill of exchange

ARCH select to pay an invoice with a bill of exchange. As a result, the vendor
payable is cleared, and a Vendor bill of exchange payable is created.
Step 3:
Payment of a bill of exchange

Arch bank pays the bill of exchange by debiting the amount from Arch
account. Post the bank debit entry and cancel the bill of exchange payable
and the bill of exchange liability.
Special GL Indicator for Bills of Exchange

W
Description
Bills of Exchange
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8.2.11
Retention Money

SUPERSEDES: N/A
Retention money payable is handled through Special G/L transactions in SAP.
These
transactions are maintained independently of other transactions in the subsidiary ledger and
are posted to an alternative reconciliation account in G/L. This allows the user an overview
of retention money payable for each Vendor.
H
8.2.12
Description
Retention Money
Post Dated Checks
In some of the cases, Post dated cheques will be issued to vendors against supply /
services. In some cases the Checks issued to Regional office, to use them in case of
emergency or payment of duties. The following are options available:
Through Special General Ledger Transaction clear the Invoice and post PDC Open
item to Vendor
As Noted item post to the vendor account
Post the payment document with a posting date as Post dated check date
Post dated cheques can be routed through Special General Ledger Transaction clear the
Invoice and post PDC Open item to Vendor:
Make document posting with post with clearing transaction with special GL
indicator(T):
Dr. Sundry creditor account
Cr. Sundry Creditors PDC account
On PDC due date: Make payment entry with bank GL. The following entry will be
posted:
Dr. Sundry Creditors PDC Account
Cr. Bank cheque issue account
In the above scenarios, whenever the PDC is accounted, Vendor open items will also
be cleared, so that duplication of payment can be controlled.
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In case of checks issued to Regional office (blank value) or vendors (not over amount), will
be posted into the system as a Noted Items. So that user will get the track of the checks
issued. On obtaining the correct payment amount the noted item will be reversed and normal
payment accounting document will be created.
8.2.13
Correspondence
Account Statement and Open Items List
The account statement created for vendors is an extract from the Vendor account,
which enables to check the items for information purposes. The account statement
displays the balance carried forward, all items in the chosen period and the closing
balance of the account.
The open items list is a special form of account statement. It is also sent to the
Vendors for verification or information purposes. The open items up to the chosen
key date are displayed in this list.
Both letters contain the document number or reference document number, the
document date, the document type, the currency and the amount for every item as
well as the balance of the open items at the key date.
Vendor outstanding ageing analysis
Ageing of Vendor accounts will be done from invoice date(s) of open invoices
following standard SAP application. Ageing of unadjusted Debit notes may also be
done by using separate filter by document type in the Vendor account.
8.2.14
Closing Operations
Objective
Monthly closings
Yearly closings
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8.2.14.1
Monthly end Closing

SUPERSEDES: N/A
Once all parked documents are completely posted and payments for the month are
completed, the posting period for vendors can be closed. This is to prevent the occurrence
of back posting invoices to the previous period after reports are generated.
Before posting period can be closed, other month end processing activities such as
executing the recurring program need to be performed if applicable.
Opening the new period and closing the previous period are two parts of the closing
procedure.
In SAP closing of activity is centralized and vendor posting can be blocked for all the
location after completing the vendor related transactions for that month. This will avoid delay
in closing the month end and results in streamlining of closing activity.
Month-end closing comprises all activities involved in closing a posting/accounting period.
Accounting period is a division of a companys fiscal year. The number of periods and
definition of period are to be determined during configuration.
Each posting into the system must be associated with an accounting period. This is to
ensure that each transaction can be reported in the corresponding period. In the same
token, periods must be controlled to ensure validity of the reports.
blueprint.
Step
Procedures
Accounts posts /
through parked document program.

Execute recurring program, if applicable.
After completed all the additional postings. Run Currency Valuation
deletes the
outstanding
for valuating open items in foreign currency.

4
parked documents
Post the valuation
differences. Close AP posting period and open the new period.

Generate month end reports:
AP Ageing
Vendor Balances
Open Items, etc
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Step
Procedures
Reclassification of Vendor Debit Balances
Check Number updation to Reference field
8.2.14.2
Year end closing
At the end of the fiscal year, carry forward program is required to be executed to carry
forward the vendor and vendor account balances to the new fiscal year. After running
the carry forward programs, when a transaction is posted to the previous year, the account
balances in the current year are immediately updated automatically. Balance carry forward
program is done after entries are completed.
In SAP year end closing is similar to the month end process with additional activity of carry
forward of balances to next year. The advantage of this is even after balances are carry
forwarded to next year, any entries to previous year will automatically update the opening
balance of next year.
blueprint.
Step
Procedures
Execute AP balance carry forward program to carry forward vendor
balances to the new fiscal year.

Post additional
posting
applicable.
After completed all the additional postings. Close the posting period / fiscal
in special
period,
if
year and open the new period / Fiscal year. System allow for the current
4
year even though previous account is not closed yet.

Generate year end reports, e.g.:
AP Ageing
Vendor balances
Open items, etc
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8.2.15

SUPERSEDES: N/A
AP Process Steps
Main process
Description
Transaction
Process of SAP
code
Creation of GL accounts FS00
(for all sundry creditors,
inventories etc)
Creation
of
Vendor
master (in sync with MM)

If
Reconciliation
1. General
GL
&
Vendor master will be

Created
Withholding
tax
Attach
withholding
codes
to
account
Payment
2. Advance Payment
the
tax
vendor
posting
(if
FI
posting
F-43
FK10N
and F-53 / F-58
printing the checks

particular Creating the special GL FS00
vendor asked for any accounts

Down payment request
down payment before
Advance
Payment
sending the goods it will
posting
be collected in a special Invoice posting
GL account by using Clearing
advance
Special GL indicator payment by transferring
and after goods are to normal account
received it will be Clearing the normal item
3. Banks:
XK03
is XK02
vendors)
To See the party wise
XK02,
applicable to the vendor,
master
Invoice
When
XK01,
F-49
F-48
F-43
F-54
F-44
cleared.
Payment to Vendor by Creation of check lots
FCH1
Payment through bank
F-53
Check
Manual check updating or FCH5 or F110.
when automatic payment
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Main process
Description
Process of SAP
program
is
SUPERSEDES: N/A
Transaction
code
configured
system takes the next

available check number
and prints it and matches
to the invoice.
Check register
To
enter
FCHN
check FCHR/FCH6
encashment date
Un-issued
check FCH3
cancellations
Issued
check FCH8.
cancellations
By using SAP we can
see the line items /
Vendor line item analysis
FBL1N
adding any necessary Vendor balance analysis.

fields like cost center
FBL1N
balances
of
vendors
4. Vendor account and also change the

analysis
5. Account Clearing
layout
of display by
etc., into display

After
the
outgoing Manual Clearing
payment
posted
has
all
F-44
been
vendor
invoices can be cleared

either age wise or one
by one.
8.3
Accounts Receivable
Accounts Receivable is the sub-module in which the financial accounting transactions

involving customers are recorded and administered. All postings in Accounts Receivable are
also recorded simultaneously in General Ledger. The components of Accounts Receivable
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are closely integrated with components of Sales and Distribution and Materials Management
which will support an automated sales cycle.
8.3.1
Sales Invoices posting to Accounting
The billing document is a document which supports the creation of customer invoices, credit
or debit memos, and the recording of the financial impact of these transactions in the
general ledger. In ARCH, the Billing Document or Sales Invoices created in Sales &
Distribution Module will automatically create an Accounting Document. The Accounts
Department shall as part of the closing process verify that the policies in respect of Revenue
recognitions have been followed for the Sales Invoices. The Billing Document and the
Delivery Documents in respect of the Sales Invoices which do not meet the Revenue
recognition criteria will be cancelled / reversed.
As a result of the creation of a billing document, integration to the Financial Accounting
module occurs with the automatic creation of an accounting document containing the
following accounting entries:
Debit to the customer account (sub-ledger) and the appropriate general ledger
reconciliation account assigned to it
Credit to the appropriate general ledger revenue account
Credit to Excise duty collected
Credit to Tax payable account (VAT/CST)
The Payment Term maintained in the Sales Area segment of the Customer should be the
same as in the Accounting Document. Consequently changes in the Payment Term will be
allowed while creating the Sales Order or Billing Document. A change in the Payment Terms
in the Sales Order would be considered as a credit-sensitive field for the purpose of Credit
Management and due date calculation.
8.3.2
Credit Memo Processing
Credit memo will be created when a customer is over-billed. It adjusts previous entries that
were overstated. Therefore, posting a credit memo always leads to a credit posting on the
customer account.
A credit memo will only be prepared if the corresponding invoice was
created and sent out to the customer.
A credit memo will not be created if the invoice
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has not been sent to the customer, as user is able to cancel the original invoice, reversing
the relevant G/ L entries and create a new invoice.
For credit memo with reference to AR invoice, the credit memo must be created with
reference to the original invoice in order to correctly reflect customer outstanding balance.
This is done by updating "Invoice Reference" field during the creation of the credit memo.
8.3.3
Customer Down Payment
Some of the Customers will make the advance payment along with their orders. Advances
are treated as Down Payments in SAP System. Down payment is to be made with reference
to Sales order in case of both export sales and domestic sales. If the customer pays an
amount in advance, a down payment is captured in a separate GL account distinct from the
normal reconciliation GL Account which is used for normal transaction. This is a special GL
Account. This account is used to record only transaction related to down payment. This
Advance can be adjusted against the invoice after goods are dispatched.
A
Text
Down Payments from Customers
Customer account is linked with General Ledger Account by a reconciliation account. All
transactions related to customer are automatically posted to this reconciliation account.
Special GL Account is the reconciliation account used to record the down payment
transaction to a separate account than the normal reconciliation account.
8.3.4
Customer Incoming Payment
This function allows user to record receipts from customers in the system and adjust them
against invoices and debit memos. In the case of payments received against invoices, the
invoices can be adjusted against the payments. In case the payment is not with reference to
specific Invoices, the receipt is recorded as an On Account receipts, and linked to one or more
invoices later or the oldest invoice is adjusted. Invoices, advances and debit memos can be
settled to the extent of the outstanding amount. Incoming payment can be booked partially.
Invoices, advances and debit memos can be partially settled.
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In case the receipt currency is not the local currency, the same is converted into local currency
for accounting purposes. However, the receipt details are stored in the entered currency but can
be viewed in local and foreign currency as and when required.
8.3.5
Receipt of Post Dated Check from Customer
The receipt of Post Dated Checks (PDC) will be handled differently by ARCH since such checks
cannot be considered at the time of receipt of the check as a realized payment. ARCH will be
using Special G/L Indicator T for this purpose so that the normal Accounts Receivable
Reconciliation G/L Account Balances are not affected. Instead the alternate Reconciliation G/L
Accounts balances will be updated with the PDC amounts when the Customer Account is
credited with this Special G/L indicator. A separate G/L Account shall be used to represent the
Checks in Hand which shall be debited at the time of receiving such PDC.
When the check is deposited in the bank on the instrument date, the Check in Hand Account is
cleared with the posting to the Checks Receipt - Sub Account. The amount shall be transferred
to the main Bank Account upon the realization of the check. The normal open item shall be
cleared against the special item in the Customer Account subsequently to reflect the correct
receivable amounts.
In case of dishonor of check, the Customer Account shall be manually blocked for delivery and
all the payment documents reversed.
T
Text
Customer - Post date cheques
8.3.6
Bills of Exchange
Customers make the payment to ARCH by accepting the Bills of Exchange. BOE document is
sent from ARCH and duly accepted for payments as per the terms of the payment. ARCH will
discount the accepted BOE with the Banker and take proceeds. BOE liability will be monitored.
Banker will send the BOE to the Customer Banker for payment. Based on the BOE due date
Customer makes the payment to the Banker.
Bills of exchanges are handled as special G/L transactions by ARCH. These transactions are
thus maintained independently of other transactions in the subsidiary ledger and are posted to a
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special G/L account in the general ledger. This will facilitate an overview of bills of exchange
receivable at any stage.
Following are the list of entries will be posted at the time of receiving bills from the customer,
bills sent for collection and discounting of bills.
Bills Submitted with the bank
Customer A/c (Bills Receivable) ..
Dr
To Customer A/c (Trade Receivables) Cr

Bill is either Discounted or Negotiated.
Bank Account
Dr
Bill of Exchange Discounting A/c Cr

Bills paid by the customers for the Bills negotiated
Bill of exchange Discounting A/c
To Customer A/c (Bills Receivable)
Dr
Cr
Bill paid by the customer for the Bills under Bill Receivable account (not discounted /negotiated
i.e. bills sent on collection.
Bank
Dr
To Customer A/c (Bills Receivable A/c)
8.3.7
Cr
Agent Commission Recognition
Agent commission can be determined by maintaining accrual condition in Sales Order or

statistical condition in sales order. If statistical condition maintained in every sales order, the
amount is not going to post into books, but can be viewed from reports.
For ARCH Agent commission details are maintaining in Sales order level as a separate manual
condition for statistical Purpose.
8.3.8
Tax Collected at Source on Scrap Sales
Tax will be collected while sales of Scrap. This can be captured by maintaining a tax code and
respective GL will be assigned. While billing document post in Financial accounting
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Dunning Customers for overdue receivables
ARCH will send Customers a payment reminder or a dunning notice to remind them of their
outstanding debts. The dunning program duns the open items from Customer Accounts in which
the overdue items create a debit balance. It will select the overdue open items, determines the
dunning level of the account in question, and creates a dunning notice. It then saves the
dunning data created for the items and accounts affected.
The Dunning Procedure controls how dunning is carried out by the system. ARCH and AVON
will use Dunning Procedure 1000 ARCH Dunning Procedure which has a dunning interval of
14 days and 4 dunning levels for dunning the customers.
The dunning levels will be calculated based on the number of days the open items are in
arrears. The dunning program determines the accounts and items which are to be dunned, the
dunning level and all other details necessary for dunning. The dunning program produces a
dunning proposal list. The dunning proposal list can be created as often as required since the
dunning data for the item and in the account is not updated until the dunning notices have been
printed.
The dunning proposal list can be edited by raising or lowering the dunning level of some line
items, blocking some line items from being dunned, or removing dunning blocks. The print
program prints the dunning notices. It will update the fields Dunning level and Dunning date
in each line item, and dunning date and level in the master records.
The dunning texts will be different for each of the dunning levels. Only those Customer Accounts
which contain a dunning procedure in the master record will be included in the dunning run.
8.3.10
Credit Management
ARCH will define Credit Limits for each Customer to minimize its Credit risks. Automatic Credit
check will be applied for each Customer at the point of creation of Sales Order
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In case a new Sales Order leads to the credit limit being exceeded for the Customer, a warning
message will be issued but the Sales Order will not be prevented from being created. However,
the Sales Order will be blocked for delivery till it is released by the concerned.
8.3.11
Closing Operations
Objective
Monthly closings
Yearly closings
8.3.11.1
Monthly end Closing
Once all parked documents are completely posted and payments for the month are
completed, the posting period for customers can be closed.
This is to prevent the
occurrence of back posting invoices to the previous period after reports are generated.
Before posting period can be closed, other month end processing activities such as
executing the recurring program need to be performed if applicable.
Opening the new period and closing the previous period are two parts of the closing
procedure.
blueprint.
Step
Procedures
Accounts posts /
through parked document program.

Execute recurring program, if applicable.
After completed all the additional postings. Run Currency Valuation
deletes the
outstanding
for valuating open items in foreign currency.

4
parked documents
Post the valuation
differences. Close AR posting period and open the new period.

Generate month end reports:
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Step
8.3.11.2
SUPERSEDES: N/A
Procedures
AR Ageing
Customer Balances
Open Items, etc
Year end closing
At the end of the fiscal year, carry forward program is required to be executed to carry
forward the customer and customer account balances to the new fiscal year. After
running the carry forward programs, when a transaction is posted to the previous year, the
account balances in the current year are immediately updated automatically. Balance carry
forward program is done after entries are completed.
In SAP year end closing is similar to the month end process with additional activity of carry
forward of balances to next year. The advantage of this is even after balances are carry
forwarded to next year, any entries to previous year will automatically update the opening
balance of next year.
blueprint.
Step
Procedures
Execute AR balance carry forward program to carry forward customer
balances to the new fiscal year.

Post additional
posting
applicable.
After completed all the additional postings. Close the posting period / fiscal
in special
period,
if
year and open the new period / Fiscal year. System allow for the current
4
year even though previous account is not closed yet.

Generate year end reports, e.g.:
AR Ageing
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Step
8.3.12
SUPERSEDES: N/A
Procedures
Customer balances
Open items, etc
AR Process Steps
Main process
Description
Process of SAP
Creation
Reconciliation GL
1. General
&
customer
master
will
be
created
of
GL
Transaction code
accounts FS00
(sundry debtors, etc., )

Creation of customer master XD01,
(in sync with SD)
XD03
Customer invoice posting (in F-22
case of FI customers)
View the customer accounts
Incoming
payment
FBL5N
and F-28
When a
clearing the customer invoice

Creation of Special GL FS00
customer paid
accounts
any down
payments
Link between sundry debtors OBXR
payment before
sending the
goods it will be
for
advance
and advance payments

Advance receipt
Invoice posting (in case of
F-29
F-22
2. Advance
collected in a
Payment:
special GL
FI customers)
Transfer
of advance from F-39
account by using
special GL to normal account
Special GL
by clearing
Clearing of normal item
indicator and
XD02,
F-32
after goods are

received it will be
3. Bills of
cleared.
In the cases of
Creation
Exchange
payments by LC
accounts
(bills of
exchanges
Invoice posting
exchange) it will
of
for
Special
bills
GL FS00
of
F-22
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Main process
Description
SUPERSEDES: N/A
Process of SAP
Transaction code
F-36
be recorded into
SAP system and
can be checked
Any payments
Receipt of BOE
Discounting with the bank
Party wise due list
Reverse Contingent liability
F-33
S_ALR_87012213
F-20
from customer
can be checked
4. Customer
with the down
Payments
payments, bills of
Manual Incoming Payments
F-28
Customer line item analysis
FBL5N
Customer balance analysis.
FD10N
Manual Clearing
F-32
exchange and
pending invoices
and cleared.
By using SAP we
can see the line
items / balances
of Customers and
5. Customer
also change the
account analysis
layout of display
by adding any
necessary things
like cost center
etc., into display
After the outgoing
payment has
been posted all
6. Account
Clearing
Customer
invoices can be
cleared either
age wise or one
by one.
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8.4

SUPERSEDES: N/A
Asset Accounting
The Asset Accounting module provide, processes required for the management of fixed
assets. The module is integrated with all other modules and data for all asset-related
transactions is updated into GL online. Accounting for assets is done on the concept of sub
ledger - all postings made to any asset are updated in the GL account and there is never any
difference between the values as shown by the asset reports and the GL balances.
The depreciation calculation process is also automatic, and depreciation is posted to the
books of accounts at pre defined periodical intervals (generally monthly). Depreciation can
be calculated according to different principles for the same asset, based on business
requirements. For example, the depreciation rates for accounting purposes and for tax
purposes can be different.
The asset master contains all the important information required, and the depreciation
calculation, postings to cost centers etc. depends upon the assignments made in the master
data.
Asset Accounting (FI-AA) transfers data directly to and from other SAP components. It is
possible to post from the Materials Management (MM) / Project System (PS) component
directly to FI-AA. At the same time, you can pass on depreciation directly to the Financial
Accounting (FI) and Controlling (CO) components.
8.4.1
Asset Acquisition
The primary business process in asset accounting is the purchase of assets and/or the
capitalization of in-house produced goods or services. The Asset Accounting component
supports various methods of handling this business process.
8.4.1.1
Direct Capitalization
Direct capitalization refers to asset acquisitions that do not have an asset under construction
phase. Instead, they are capitalized and begin depreciation immediately.
An external asset acquisition is a business transaction resulting from the acquisition of an
asset from a business partner (in contrast to an acquisition from in-house production). You
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can post the acquisition of a purchased asset in several different ways, using different
application components:
In Materials Management (MM) at goods receipt or invoice receipt
In Asset Accounting (FI-AA) in integration with Accounts Payable (FI-AP), but without
reference to a purchase order
8.4.1.1.1 Acquisition through Material Management (MM)

Asset Accounting is integrated with all other relevant SAP modules. There are no interface
requirements as such for asset accounting. Asset procurement is linked with MM module,
Asset which can be used immediately on receipt like Furniture, computers, office
equipments, vehicles etc. In all these cases capitalization will be done based on
GRN/Invoice Verification date.
Acquisition of asset by purchase department, like other standard purchases in SAP is
integrated with MM. The following activities are involved:
Creation of a purchase requisition
Creation of an asset master record
Creation of the purchase order

Using account assignment type A (A=asset) you can enter an asset master record
while creating the purchase order. It is not possible yet to create asset master record
in the purchase order (transaction code ME21N).
Asset master record must be
created before creation of the Purchase Order.
Goods receipt
When you enter the purchase order, you determine whether the asset is posted
directly to Asset Accounting, and thereby capitalized, when the goods receipt is
posted (valuated goods receipt), or whether capitalization does not take place until
the invoice receipt is posted (non-valuated goods receipt). The first option would be
used when the goods receipt takes place before the invoice receipt.
When the
invoice is received later, there may be differences between the invoice amount and
the amount posted at the time of the goods receipt. In this case, adjustment postings
are made to the asset. No corrections are necessary for a non-valuated good receipt,
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since the asset was not yet capitalized. However, the system uses the date of the
goods receipt as the capitalization date.
Invoice receipt
If the goods receipt was non-valuated, the asset is capitalized, line items are created
and the value fields are updated.
8.4.1.1.2 Acquisition in Asset Accounting with Vendor

Asset can be acquired in Finance Asset accounting module in integration with FI AP
module. The Process flow for acquisition of assets with vendor is given below:
FI will post the capital items invoice.
At this stage the system will prompt in case an advance is already paid to the vendor.
Excise duty will be captured and updated in Excise register.
In the next step payment is processed for the fixed assets purchased while adjusting
the advance already received.
Respective bank a/c is updated & vendor liability cleared.
8.4.1.1.3 Acquisition in Asset Accounting without Vendor

Asset can be acquired in Finance Asset accounting module without integration with FI AP
module. The Process flow for acquisition of assets without vendor is given below:
FI will post the capital items invoice while debiting the asset account and crediting the
asset acquisition clearing account.
In the next step payment is processed for the fixed assets purchased
Respective bank a/c is updated & Asset Acquisition clearing account will be cleared.
8.4.1.2
Asset under Construction / Capital WIP
Assets under construction (AUC) is special form of tangible asset. They are usually
displayed as a separate balance sheet item and, therefore, require separate account
determination and asset classes. During the phase in which an asset is under construction,
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all actual postings are assigned to the AUC. Once the asset is completed, a transfer is made
to a master record that has to be created in the completed fixed assets.
8.4.1.2.1 Assets under Construction without Internal Order / Project

Assets under construction are acquisitions to fixed assets that are not permitted to be
capitalized and depreciated immediately.
During the construction phase, all the assets are initially booked to the assets under
construction account (capital works in progress Account).After the completion of the
construction and when the assets are put to use the assets under construction need to be
transferred to the assets account. This transfer of assets from assets under construction to
the assets is known as settlement in SAP. Before making the settlement, it is to be clearly
known, as to in which proportion the line items under assets under construction are to be
settled to the assets. Basing on this, the distribution rules are defined and then assets can
be settled.
8.4.2
Assets under Construction with Internal Order
Statistical Internal Orders will be used to control the budgets and when certain business
transactions are entered that create costs on the corresponding Internal Order, the system
checks whether the available budget or available released budget is sufficient. It uses the
tolerance limits specified in Customizing for this check. Tolerance limits can be defined as
the usage level from the current budget or the release.
Step 1: Create an Internal Order as Statistical

Step 2: Maintain Budget for the Internal Order
Step 3: Create the AUC Asset Master
Step 4: Assign the Internal Order in the Origin Tab of the AUC Asset Master
Step 5: Release the Internal Order
Step 5: Execute Any Business Transaction against this AUC
Step 6: Availability Check for Budget will perform whenever any business transaction
is executed against the asset
Step 7: When the Asset is commissioned or put to use settle the AUC to the main
asset
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8.4.3
Assets under Construction with Project Systems

SUPERSEDES: N/A
Projects will be used to capture the cost of the Asset and control the budget. Initially values
will be posted to AUC assets in every month based on settlement and after completion of the
project AUC assets will be transferred to the Main Asset.
Step 1: Create Project for Capex/Create WBS element under Project
Step 2: Enter Investment Profile for WBS element
Step 3: Maintain Budget for Project/WBS element
Step 4: Release WBS element (AUC will be created automatically based on
investment profile)
Step 5: Execute Any Business Transaction against the Project (Atual costs will be
captured in the project/WBS element)
Step 6: Availability Check for Budget will performed whenever any business
transaction is executed against the Project/WBS element
Step 7: Run Month end Settlement (Periodic Settlement) to transfer the cost incurred
during the month to AUC
Step 8: During final settlement of Project/WBS costs from AUC will be transferred to
Actual Main Asset (Project / WBS status must be in TECO before running final
settlement)
Step 9: Close the Project
8.4.4
Asset Retirement
The asset disposal process includes activities for identifying, approving and accounting for
the disposal of fixed assets.
Generally, when an asset is destroyed, obsolete, or is no
longer needed, it will either be re-deployed to another business unit that may have a need
for the asset or the company may dispose of the asset in partial or full. For assets that are
re-usable, the company may try to re-deploy the asset.
After a re-deployment effort is
pursued and a new owner cannot be identified, the asset will then become available for sale
or scrap/abandonment.
8.4.4.1
Asset Retirement with Revenue - Asset Sale
By using Asset Retirement with Revenue from Customer option the sales process can be
initiated in the system. While booking the Retirement, system will calculate the Loss or Gain
on the Asset disposal and post necessary accounting entries. User will have option to retire
completely or he can choose partially. Accordingly system will reduce the Gross block as
well as Accumulated depreciation.
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8.4.4.2

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Asset Retirement Scrapping - Asset Abandonment
In the instance that an asset cannot be re-deployed, sold(due to damage, obsolescence,

etc.) within a reasonable period of time, the asset will then be scrapped.
The fixed asset
accountant will then remove the asset from the books by performing disposition posting for
loss on abandonment.
SAP Solution for the requirements:
Step #
Process Description
SAP Module
Retirement of Asset with revenue or losses shall go
Standard
SAP
to Profit & Loss Account. Partial retirement of asset Configuration

2
is possible through the system.

Standard SAP shall automatically calculate Profit &
F-92 / ABAON
Loss on sale of assets and the accumulated

depreciation till the time of retirement and to the
extent of retirement asset value will be reduced. If
the asset is disposed off completely, the asset will
not
3
be
taken
into
account
for
any
further
depreciation run.
After complete retirement of assets the same shall
Standard SAP
be reduced from General Ledger and will be

4
cleared from FA register.

System shall calculate the profit & loss upon the
retirement
transaction.
and
reversal
F-92 / ABAON
of
accumulated depreciation.
8.4.5
8.4.5.1
Asset Transfers
Asset Transfer Location transfer (within the Plant)
In case of transfers within the same company i.e. Intra Company transactions, the new
location need to be updated in the location field in the asset master record using AS02. The
different locations wherein the asset was located at different time intervals can be viewed in
the asset master record.
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In case of transfers from one cost center to another, the same needs to be updated in the
cost center field in the asset master record using AS02. The different cost centers wherein
the asset was located at different time intervals can be viewed in the asset master record.
8.4.5.2
Asset Transfer Plant to Plant transfer
The following process needs to be followed for transfer of Asset from One plant to another
plant:
1. Create Non-Valuated material
2. Goods Receipt
3. Stock Transport Order
4. Take 50% balance cenvat credit if the asset is purchased during the year
5. Create Excise Invoice (Excise duty liability will be generated)
6. Create new Asset in Receiving Plant
7. Do delivery in sending Plant
8. Goods Receipt in Receiving Plant
9. Excise capture and Post in receiving Plant (Excise values will be posted)
10. Make Asset Transaction (ABUMN) for making the effect in Financial Accounting. Both
acquisition value and accumulated depreciation value will be transferred from
sending Asset to receiving asset. Values will be updated in both the profit centers.
8.4.5.3
Asset Transfer Wrong to correct asset class
In case of postings to a wrong asset class, transfers can be made through the system (T.
code: ABUMN) in order to transfer the assets to its correct asset class.
All the above transfers i.e. from one location to another, from one cost center to another can
be tracked through the standard reports available in the system. In case of any change in
cost centers in the asset master record, depreciation will get charged to the respective cost
centers based on specific time intervals for which they were held by each cost center. In
case the location change happens for the earlier period, the revised cost centre wise
depreciation will not be updated for the previous period.
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Leased Assets
8.4.6.1
Assets taken on Lease
The "acquisition of a leased asset" is considered to be the entry of the leased asset in the FIAA System. This does not necessarily mean that the leased asset must be capitalized. You
can enter a leased asset simply to manage purely statistical data. You handle the asset as a
master record, with no values in the book or tax depreciation areas.
Posting the acquisition of a leased asset may be necessary for one of the following reasons:
You have received a new leased asset (goods receipt).
You need to change the way bookkeeping is handled for a leased asset due to a
change in the conditions of the lease.
You need to post a leased asset to a new asset master record due to a transfer.
Before posting the acquisition of the leased asset, you must determine the bookkeeping
method to be used, either:
capitalization of the leased asset in the asset portfolio, with the present value of the
future lease payments and depreciation of the present value (capital lease)
statistical management of the leased asset (no capitalization), and direct posting of
the lease payments as rental expense in the profit and loss statement (operating
lease)
8.4.7
8.4.7.1
Asset Depreciation
Calculation of Depreciation
The depreciation areas specify the different methods for calculating depreciation for the
asset to which they are assigned. Each asset of ARCH will have at least two depreciation
areas which are defined in the Chart of Depreciation
S.No. Depreciation Area
01
01
02
15
Description
Book Depreciation area
IT Depreciation area
For each asset depreciation keys are assigned in the asset class in accordance with the
information provided in the depreciation areas to calculate the depreciation/expense and
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post it to the general ledger. The useful life in years shall be maintained for each Asset
Class. When an Asset Master is created, this useful life maintained in the Asset Class shall
be defaulted.
While calculating the book depreciation, depreciation will be calculated based on
Depreciation key. In case of leased assets, system will calculate depreciation on the life of
the asset. Separate general ledger accounts will be established to collect the values for
depreciation for different Asset Classes.
The system determines the start or end of depreciation based on the asset value date of a
transaction (of the acquisition or retirement) using period controls. For ARCH, depreciation
will be calculated from the day of acquisition or Ordinary Depreciation Start Date.
8.4.7.2
Depreciation Keys
Some of the following depreciation keys will be created for Arch to calculated depreciation
for Fixed Assets:
Dep. Key
SL01
SL02
SL03
SL04
SL05
SL06
SL07
SL08
SL09
SL11
SL12
SL13
SL14
GWG
Description
Straight Line Method - 1.63%
LVA 100 % Complete depreciation
Separate depreciation keys will be created for WDV and will be assigned for WDV asset
classes for which depreciation needs to be calculated.
8.4.7.3
Posting of Depreciation
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Depreciation shall be calculated and posted every month end as part of the monthly closing
process. The depreciation values will be posted to the corresponding expense and asset
balance sheet accounts in the General Ledger. The periodic posting will take place using a
batch input session. Only summarized postings will be made per G/L Account instead of
individual documents.
8.4.8
Revaluation of Assets
Revaluation of Assets can be posted using the Transaction Manual Value Correction. The
respective Asset Class will be debited and Revaluation Reserve A/c will be credited with the
revaluated amount. The depreciation on the revaluated portion will be adjusted against
Revaluation Reserve A/c. The System provides for accommodating revaluation requests and
updating of asset records.
8.4.9
Impairment of Assets
Impairment loss refers to carrying value of the assets is more than the recoverable amount
and value in use of the asset. Impairment loss needs to be charged off to the P&L a/c. In
case of the impairment loss is more than the carrying value of the asset, excess value over
and above carrying value of the asset shall be treated as liability in the balance sheet.
On each Balance Sheet date the enterprise should assess whether there is any indication of
impairment of an asset. An asset is said to be impaired when carrying amount of the asset is
more than recoverable amount. If yes, the enterprise should estimate the recoverable
amount and amount of impairment loss will be carrying amount less recoverable amount.
If an asset is carried at a historical cost, impairment loss will be charged to P & L A/c and if
an asset is carried at Revalued amount, impairment loss will first be set off against
revaluation reserve and for any excess over revaluation reserve will be charged to P & L A/c.
Impairment can be made through SAP Transaction code ABAW and entries passed in SAP
T-code F-02
8.4.10
Physical Inventory of Assets
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The FI-AA component provides the following functions to support the physical inventory
Inventory list. The system provides an inventory list to assist with physical inventory. You find
this list in the standard Information System for Asset Accounting. You adapt the structure and
sorting of the list to meet your specific needs. You make these modifications using standard
report. The list displays only those assets in which the inventory indicator is set in the asset
master record
8.4.11
Closing Operations
Objective
Monthly closings
Yearly closings
8.4.11.1
Monthly end Closing
The check list for month end process will be documented after the Realization Phase of this
project.
8.4.11.2
Step
Procedures
Settlement of completed CWIP assets to main assets
Execute Depreciation Run
Year end closing
Fiscal Year Change

Fiscal Year change is the opening of a new fiscal year for a company code. At the fiscal year
change, the asset values from the previous fiscal year are carried forward cumulatively into
the new fiscal year. Once the fiscal year change takes place, user can post to assets using
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value dates in the new fiscal year. At the same time, continue to post in the previous fiscal
year.
The fiscal year change can only be carried out (even in test mode) for the new fiscal year.
The earliest that you can carry out a fiscal year change is in the last month of the old fiscal
year. You can choose any point in the new fiscal year for carrying out the fiscal year change.
Before you can change to fiscal year YYYY, you must have already closed fiscal year YYYY.
Maximum of two successive fiscal years can be opened for posting at one time.
No business transactions can be posted in a new fiscal year before the fiscal year change.
You can continue to post in the old fiscal year, even after the fiscal year change. The system
automatically corrects any values that are affected by postings in the past. The fiscal year
change has to be carried out as background processing for performance reasons. The
system carries out the fiscal year change for all assets, even if the assets have errors. The
system provides statistics per company code for the assets that have been changed. The
system writes assets with errors to an error log. In the case of program termination, you can
repeat the fiscal year change as often as required.
Year-End Closing
Before close a fiscal year in Financial Accounting from a bookkeeping perspective, carry out
Year End Closing activity in Asset Accounting to close the fiscal year for the company codes
from an accounting perspective.
Once the fiscal year is closed, no longer post or change values within Asset Accounting (for
example, by recalculating depreciation). The fiscal year that is closed is always the year
following the last closed fiscal year and cannot close the current fiscal year. Perform the
year-end closing as background processing for performance reasons.
The system only closes a fiscal year in a company code if
The system found no errors during the calculation of depreciation (such as,
incorrectly defined depreciation keys).
Planned depreciation from the automatic posting area has been completely posted to
the general ledger.
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All incomplete assets (master records) have been completed.
The system lists any assets that do not meet the above requirements in the log of the
year-end closing.
The log also shows the reason for the errors.

Step
Procedures
Execute the standard SAP inbuilt check which will validate the pre closing
activities.
Execute fiscal year change program which will validate and carry forward
asset balances to next fiscal year

Execute year-end closing program to close the fiscal year for one or more
company codes from an accounting perspective.
8.4.12
Main
process
Asset Accounting Process Steps
Description
Transaction
Process of SAP
In this step asset master record Creation of master record

will be created, any changes
Asset
can be done and also asset
Creation of Sub Asset
AS21, AS24
AS02, AS22
on asset classes defined.

Receipts
AM01
AS11
Maintenance retirement can be done. Group Creation of group asset

asset can be identified based
Asset shutdown
Once asset master record is Direct acquisition
code
AS01, AS11,
with
F-90
made, asset acquisition shall vendor

be posted depending on with
PO / without PO and with
Acquisition
and
clearing ABZON,
vendor / without vendor. All with offsetting entry
F-91
down payments to be taken

care
of
and
also
any
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Down payments
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F-48
subsequent acquisition posted

as asset sub number.
Retirement with Revenue
All the asset retirements will be
Retirements
taken care of in this step and Asset
While
sale
without
customer
Asset
Retirement
any profits / losses posted.
Depreciation
with Customer
Scrapping
the Manual depreciation
calculating
by
F-92
ABAON
ABAVN
ABMA
depreciation first depreciation

planning can be done which will
be processed along with cost
centers and
if
overhead orders
Unplanned depreciation
ABAA
Depreciation Planning and AFAB
Posting
any and then depreciation
posting
run
will
be
made
periodically. This is a batch

input transaction that will be run
at the time of period closing.
All the transactions relating to Settlement of AUC
AIAB, AIBU,
asset under construction will be
AIST
collected separately and after

they
will
be
Post Capitalization
Business
finishing
transactions
capitalized. Post capitalization Reposting

transactions include adding
Write ups.
value after capitalizing the
Closing
asset.
The existing asset inventory Physical asset inventory
operations
can be taken out by using the

SAP
standard
report.
Fiscal year change
ABNA (Post
cap)
ABUMN
ABZU
AR01
AJRW
Changes to the fiscal year will

the Preparations for yearend AJAB
previous year is closed. Before closing for assets.
be carried out and
opening
the new period,
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Depreciation postings
AFAB
depreciation postings will be

made.
8.5
Cash and Bank Accounting
8.5.1
Bank Accounting
The component Bank Accounting is used to handle accounting transactions that you process
with your bank. All country specific characteristics such as the specifications for manual and
electronic payment procedures, payment forms or data media can be freely defined.
It includes the management of bank Master data, the creation and processing of incoming
and outgoing payments.
8.5.1.1
Check Payment
The Bank payment process encompasses among others, payment to Creditor (Vendor) and
Employees, Advance payments and the settlement of statutory dues or other commitments.
Cash / liquidity position at the start of each day needs be scrutinized to ascertain the
quantum of payments that can be made out for the day. This will ensure an optimization of
the available Cash/Bank balance and better utilization of the float period.
Next step would be to identify Invoices, which are to be paid either because the due date
has approached, or some other prioritization criteria.
SAP works on the principle of Open and Cleared Creditor (Vendor)/Customer line items.
An Open item represents a liability or an asset, which is pending payment or receipt. On
the subsequent payment/receipt, the Open item gets converted into a Cleared item i.e. the
liability gets exhausted on payment.
In case, if a payment has to be made to an entity other than the Invoicing party, the
Alternate payee needs to be defined at the transaction entry level. The Check in such
cases would be in the name of the Alternate payee; however liability to the Invoicing party is
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extinguished. In the Sub-ledger, the Invoicing Creditor (Vendor) Open items will get cleared
and the reference of the Alternate payee will be recorded in the payment document.
In order that check may be printed through the system, a Creditor (Vendor) Master needs to
be necessarily defined.
Check lots needs to be entered in the system as and when received from the Bank under a
House Bank and Account ID combination.
The accounts department would pass the payment entry by using Outgoing payments (F-07)
or automated payments (F110) or outgoing payment post (F-53) or payment with Form (F58). This would really depend on case-to-case basis.
8.5.1.2
Check Receipt
ARCH will process check receipt from customers by clearing open items in the Customer
Account. Posting of an check receipt will create an accounting entry, which will debit the
appropriate general ledger bank account and credit the appropriate customer account. At the
same time, a credit is posted to the general ledger reconciliation account assigned to the
Customer Account. A partial payment leaves the original invoice intact and creates a credit in
the customer account for the amount of the partial payment. No items will be cleared as a
result of a partial payment.
All incoming payments shall be routed through the Bank Check Receipt Sub account and
the amount shall be transferred to the main Bank Account upon the realization of the check.
The Bank Check Receipt Sub G/L Account shall be open-item managed so that the details
of checks in clearing can be seen from the open-item list.
In case of check dishonor the incoming payment document shall thereafter be reversed
which will clear the item in the Bank Check Receipt Sub Account and the Customer
Invoices shall again be open. Bank charges for such dishonor can be recoverable from the
Customer for which Debit Notes shall be issued to the Customer.
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If there is any difference in payment and if such differences are within the tolerance limits,
such differences arising out of under or over payment shall be posted to separate G/L
Account.
The realized exchange gain / loss will be calculated and posted automatically while clearing
open items in foreign currency. Any Bank charges specified when settling payments will also
be automatically posted to the G/L Account for bank charges.
The following will be the some of house banks created for Arch:
Account ID
Company code
1000
1000
8.5.1.3
House
Code
ALM01
ALM01
Bank
HB Description
Allahabad Bank
Allahabad bank
Branch
Name
and Address
CA01
CC01
Fort, Mumbai
Fort, Mumbai
Bank Reconciliation Statement (BRS)
For each bank, apart from its main bank account, an intermediate Check Receipt & Check
issue bank account will be created. The Bank reconciliation process is based on the entries
passed through the Bank sub account and main account. The process is dependent on the
Bank Statement updating.
Any check deposited in the bank will be debited to the bank check receipt sub account and
will be credited to corresponding G/L or sub-ledger account such as customer account.
Similarly, any check issued will be credited to the bank check issue sub account and will be
debited to the corresponding G/L or sub-ledger account.
The bank statement will be uploaded in SAP ECC system or a manual bank statement entry
is done in the system.
Bank reconciliation will be carried out based on the Check number or any other unique
identification automatically captured or entered in the assignment field.
Bank Main account balance is the actual balance as per the bank statement whereas the
Bank sub accounts denote the reconciliation items. These sub accounts show those entries,
which are not cleared in the bank statement.
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During uploading of the electronic bank statements, data in these files is supplied with SAPspecific information, such as:
Chart of accounts
Company code
After the import transaction is completed, the data in the bank data memory is analyzed. The
system tries to identify the individual business transactions and filter out the information
necessary for posting, for example, check numbers from the note to payee fields on the
bank statement. Note that the system will not clear the bank clearing items unless the
amount on the statement is also equal to the bank clearing items amount.
If the necessary information can be interpreted, the system will automatically post the
transactions based on the pre-defined clearing criteria. As an example, for outgoing
payments, system uses outgoing check numbers as matching criteria.
Note: The assumption for the automatic clearing is that the bank statement can
provide the necessary information required for automatic clearing (i.e. for matching
with the data in SAP system).
If the Bank Statement data is not available in standard Multi cash format, periodically the
data is obtained in the desired format from bank carrying details like document number,
check number, amount, date, etc. This file will be loaded /copied into the system and the
entries in incoming bank account & outgoing bank account will be posted to main bank
account.
If the Bank Statement data is not available in electronic format, the data will be entered
manually for bank reconciliation.
Data that cannot be matched will be manually matched and posted for clearing
8.5.1.3.2 Electronic Bank Statement and Manual Bank Statement
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Each banks account will be controlled by three types of bank accounts
Main Account: Where the balance of this account will be matched with the bank
statement.
Check Issue Sub Account: Where all the check issued will be posted.
Check Receipt Sub Account: Where all the collections will be posted.
Direct Debits and Direct Credits : Where the bank directly debits and credits will be
posted.
After the automatic bank reconciliation process entries in the Check Issue Sub Account and
in the Check Receipt Sub Account will be transferred to the main account.
Following are the clearing accounts for Electronic Bank Statement (EBS)
12XXXX20 Main accounts (Reflects the actual bank statement balance. To be

updated periodically)
12XXXXX21 Check Receipt Sub Account
12XXXX22 Check Issue Sub Account.
When the bank statement is uploaded in SAP the following will happen:For checks issued out based on checks cleared in the bank account the following entry will
be passed automatically.
Account description
Check Issue Sub Account
Main Bank account
Debit /Credit
Debit
Credit
For checks received in based on checks cleared in the bank account the following entry
will be passed automatically.
Account description
Main Bank Account
Check Receipt Sub Account
Debit /Credit
Debit
Credit
Thus after uploading the bank statement in the system, the Main bank account will exactly
match with the balance shown in the bank. All the clearing accounts having balances will be
the reconciliation items
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The following some of the transaction types can be used for manual uploading the bank
statement:
Transaction type
Description
ZA01
Cheque Deposit
ZA02
Deposit reversals
ZA03
Check issue
ZA04
Check Issue reversal
Each business transaction will be assigned to Account symbols and Posting rules and GL
coding masking will be done against account symbols.
8.5.1.4
Liquidity Forecast
Cash Management would be designed as below for meeting the requirements of Arch
Structure for Liquidity Forecast
Planning Level:
Financial transactions in Cash management are displayed using planning levels to explain
the beginning and ending account balances. In Arch it is envisaged that Planning levels are
maintained in GL accounts for reporting in liquidity forecast
Source Symbols:
It divides the planning levels according to the sources that supply them with data. In Arch it is
envisaged that source symbols PSK, MMF and SDF will be maintained to specify that the
source is from sub ledger accounting, materials management and sales &distribution.
Planning Groups
In cash management, customers and vendors are assigned to planning groups by means of
master data entries. Planning group represents particular characteristics, behavior or risks of
the customer or vendor group. In Arch Planning groups will be maintained to categorize the
customers and vendors as per the requirement and assigned to the customer and vendor
master records. Planning levels (which tells How an amount is posted) are assigned to the
planning groups
Groupings
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Groupings will be maintained to specify which levels and accounts / planning groups, the
system should select for the liquidity forecast. In Arch it is envisaged that Groupings would
be maintained to group the planning levels that the system should select for cash position
Structure
Structures enable you to group together bank and sub ledger accounts in the cash position
and liquidity forecast. For the cash position and liquidity forecast, we can specify:
The accounts we wish to see and those we wish to exclude
The summarization term under which we wish to group together the lines for levels in
the display.
In Arch it is envisaged that summarization terms are maintained to combine the planning
levels and planning groups of one grouping for the cash position and liquidity forecast
Planning Type & Memo Records
In Cash management, planning type controls the manual entry of planned memo record. For
each planning type, we specify:
The level to which the planning type is allocated
The number range to which the planning type is allocated
Whether the memo records expire automatically
The archiving category in which a memo record is stored after it becomes invalid.
In Arch it is envisaged that planning types will be maintained for manual entry of memo
records in case of expected receivables and proposed payables.
Liquidity Forecast Report: T-Code FF7B

On execution of the liquidity forecast report, a drilldown report appears with the following
levels
a) Currency level
a) Summarization group level
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b) Planning level
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c) Planning group level

d) Line item level
8.5.1.5
Cash Position
The Cash Position supplies information on the current financial situation in the various bank
accounts and bank clearing accounts. It is used to overview the short-term liquidity position.
The various postings made to the various G/L Accounts relevant to Cash Management is the
main source for the Cash Position.
Groupings are used to specify the set-up of the Cash Position. The grouping will determine
which level and bank account will be displayed in the Cash Position. Detailing by planning
level will provide information on the causes of bank or account transactions for bank
accounts.
The planning levels can be used by Arch are:
Level
F0
LB
8.5.2
Planning level long text

Posting to bank account
Bank loans
Cash Journal
A double-entry compact journal managed in account form that records the postings for cash
transactions.
It is used to manage a company's petty cash transactions. The system automatically
calculates and displays the opening and closing balances, and the receipts and payments
totals. You can run several cash journals for each company code. You can also carry out
postings to G/L accounts, as well as vendor and customer accounts.
Separate cash journal required for each currency.
Cash balance is maintained at plant to meet day to day expenses. When cash refill is
necessary, a self-withdrawal check is drawn on the House bank Payment A/c & received at
the location.
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At Plant, cash book will be maintained in the SAP standard Cash Journal form. Cash Journal
is a sub-ledger of Bank Accounting. It is used to manage a company's cash transactions.
The system automatically calculates and displays the opening and closing balances, and the
receipts and payments totals.
Several cash journals can be run for each company code. The user can carry out postings to
G/L accounts, as well as vendor and customer accounts.
The features supported in cash journal are as follows:
Entering, saving, and posting cash journal entries
The cash journal entries will be saved locally in the cash journal. Thereafter, the
system will calculate the balances, subsequent to which the cash journal entries
saved will be posted to the general ledger.
Cash journal entries saved can be printed.
Cash Journal allows to post cash documents (like expenses, cash withdrawals from banks,
payments to vendors, employees etc.,) in a simple way.
Instead of typical accounting
transactions for posting it can be pre-defined business transactions.

This function also allows you to print typical cash journal documents and cash report for a
specified period.
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A validation with error message can be configured to restrict of payment postings exceeding
Rs. 20,000/- for each cash journal. The validation will not trigger at the time of saving a
document but posting the cash journal document into accounts.
The cash journal facilitates to take printout even on saving of a document with posting it to
accounts, this printout can be used a withdrawal request for the amount to be withdrawn
from the bank to obtain the approval and after receiving the cash by the cashier it can be
posted.
With regard to cash withdrawal and deposit system provides a dual control and the entries
will thorough a intermediary GL account will be an open item managed can be cleared
periodically with mass clearing.
The following will be the Cash Journals for Arch:
Company Code
Cash Journal
Description
1000
1000
1000
1000
1100
1101
1102
1103
1000
1000
1104
1106
1000
1000
1000
1000
1000
1000
1000
3000
1107
1154
1200
1201
1202
1203
1301
3101
Cash-Head Office
Cash-Tarapur T86
Cash-Badlapur
Cash-Taloja G6
Cash- Corporate R&D Centre
- I, Taloja
Cash- Dombivli
Cash- Corporate R&D Centre
- II,Turbhe
Cash-Tarapur Oncology
Cash-Hyd Regional Office
Cash- Merven
Cash- Siddipet
Cash-Sibra
Cash-Vitalife Laboratories
Cash-Solapur
8.5.2.1
Business Transactions
In Cash Journal, each transaction will be posted against particular business transaction. The
following business transactions will be used for posting the transactions through cash
Journal:
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Business Transaction
Description
1
2
3
4
5
6
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EXPENSES
REVENUE
VENDOR
CUSTOMER
RECEIPT FROM BANK
PAYMENT TO BANK
Other than the above normal business transactions, for each expenses account separate
business transactions can also be created. For each business transaction, relevant GL
account can be assigned. This facilitates the user to reduce the mistakes in selection of
GLs. Only user needs to be select the relevant business transaction. The following business
transactions can be taken for cash journals. I.e. Printing and Stationery, Travelling expenses,
Conveyance etc. While making payment, user can select relevant business transaction so
that General Ledger account will be taken automatically from business transaction.
8.6
8.6.1
Taxes
Tax on Sales and Purchases
For Arch on each taxable sale (i.e. non-exempt) and on each taxable purchase (i.e. nonexempt) made inside the respective state, a value added tax (VAT) will be applied. The rate
is determined by the kind of product, service that is purchased. The taxes on the sales and
purchase transactions are classified as exempt, zero tax rate, or standard tax rate. It is
possible for the VAT Tax on some purchases to be non refundable. For these transactions
the Vat amount will be added to the actual cost of the product.
A tax code will be set for every vendor and every material in the SAP system. This denotes
that taxes are calculated automatically. The code can be manually overwritten with a nontaxable code if taxes are not applicable to a certain transaction when the transaction is
entered. Tax codes are to be assigned to the Vendors and Materials records.
Some of the tax codes maintained for ARCH are:
Tax Indicator
Description
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A0
Tax on sales VAT Exempt (0%)
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V9
ED Creditable (10+2+1) & Vat Creditable 4%
C3
ED Creditable (10+2+1) & CST 2% Against Form

C
M9
No ED & Vat Creditable 4%
CJ
No ED & CST 2% Against Form C
CC
ED Non Creditable (10+2+1) & CST 2% Against

Form C
8.6.2
Excise Duty
Separate set of Cenvat accounts will be maintained for each excise registration. This will
help in utilization of the excise amount against credits lying in books.
Excise Group:
Excise Group will be created under each plant for specific excise registration number. All
excise related transactions i.e input credits, duty payables and utilization transaction will be
posted to the excise group. Excise Registers will also be drawn for each excise group.
Excise Duty on Input Material:

Each excisable material with Chapter id combinatory and Excise Vendor details will be
maintained in Excise Master as input/out material. Whenever excise related transaction
happens for the material, system will propose the values from Excise master.
At the time of Goods receipt, system will capture the duty amount in excise registers. One
more transaction will be performed to post the captured values at Goods receipt. While
posting the transaction into Excise registers, financial accounting entry will also be posted
into books:
Dr.RG23A BED
Dr. RG23A BED E.Cess
Dr. RG23A BED SH E.Cess
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Cr. Cenvat clearing account
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If it is capital goods, the following entry will be posted:

Dr.RG23C BED
Dr. RG23C BED E.Cess
Dr. RG23C BED SH E.Cess
Dr. RG23C onhold 50%
Cr. Cenvat clearing account
Cenvat clearing account will be debited and Vendor will be credited at the time of invoice
verification.
RG23C onhold account will be credited and RG23C BED account will be debited while
transferring the onhold duty to current year (will be on next year beginning)
Excise Duty accounting in case of Imported Material:
The following entry will be posted while calculating import duties:
Dr. Customs duty account
Dr. Additional Duty account
Dr. CVD account
Dr. E.Cess on CVD
Dr. SH E.Cess on CVD
Dr. E.Cess on customs duty
Dr. SH E.Cess on customs duty
Cr. Customs duty payable
While doing GRN, Customs duty ( which cannot taken set off) will be added to material cost.
The entry will be:
Dr. Stock account (material cost + Customs duty+ E.Cess on duty + SH E.Cess on duty)
Cr. GR/IR clearing account
While posting CVD/part II entry:
Dr. RG23A AED
Dr. RG23A BED
Dr. E.Cess on BED
Dr. SH E.Cess on BED
Cr. Cenvat Clearing Account
While doing invoice verification for material:
Dr. GR/IR clearing account
Cr. Vendor Account
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Excise Duty Liability on Sales:

After billing document generation for sales, Excise invoice will be generated based on billing
document. The following entry will be generated while billing document:
Dr. Customer a/c
Cr. Sales revenue
Cr. Excise duty collected on sale
Cr. VAT/CST Payable
The following entry will be posted while creating excise invoice based on billing document:
Dr. Excise duty (expenditure) account
Cr. Excise duty payable account
If the material removed in case of LUT/Bond there is no need to pay excise duty.
If the material is moved against Duty draw back in case of exports, the following entry will be
posted through separate excise transaction type:
Dr. Excise duty receivable a/c
Cr. Excise duty payable a/c
Excise duty amount while sending material for Job work:
No Excise duty amount will be debited in books, while sending the Material for Jobwork.
Material will be sent on Job work excise challan.
If the material wont return within a
specified time, then excise duty liability needs to be created manually.

Excise duty liability while transfer of Capital Goods:
The duty payable amount on capital goods will be calculated manually based on the
capitalization date and the amount of credit taken during capitalization.
Utilization of excise amount:

Excise duty utilization will be done at Plant and excise group level. If the excise amount is
going to utilize from service tax also, those accounts needs to be given while execution of
utilization transaction.
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Excise duty payable based on sales invoices will be shown as payable and on hand credit
amounts will be shown while doing utilization. Against each item i.e against BED payable,
BED credit amount and against E.Cess payable, E.Cess credit amount and against SH
E.Cess payable, SH E.Cess credit amount will be selected.
The following entry will be posted, while utilization:
Dr. Excise duty BED payable
Cr. RG23A BED/RG23C BED/ PLA
Dr. Excise BED E.Cess payable
Cr. RG23A E.cess / RG23C E.Cess / PLA E.Cess
Dr. Excise SH E.Cess payable
Cr. RG23A SHE.Cess / RG23C SH E.Cess / PLA SH E.Cess
Excise duty credits or Excise duty debits can also be taken through Excise JV in SAP.
PLA Accounting:
While payment of PLA, the following entry will be posted:
Dr. PLA on hold a/c
Cr. Bank
While updation of PLA records, the entry to be posted through Excise JV and the document
will be:
Dr. PLA BED a/c
Dr. PLA E.Cess a/c
Dr. PLA SH E.Cess a/c
Cr. PLA Onhold account.
In all the above cases, wherever Excise GL accounts will be hit, in the same time excise
registers will also be updated. There wont be any separate reconciliation for financial books
with excise records. Always the balance in both the books will be tallied.
Excise Duty on Sales Returns:

Excise duty will be posted through Excise JV for sales returns.
The following will be the entry while taking excise :
Dr. RG23A BED
Dr. RG23A E.Cess
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Dr. RG23A SH E.Cess
Cr. Excise Duty collected
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RG1 Register:
Separate transaction will be performed for updating the entries in RG1 register. The updating
can be based on movement type or material document or storage location.
Monthly Returns:
Monthly excise return i.e. ER1 form will be generated based on the excise transactions
happened during the period.
8.6.3
Service Tax
Separate Tax Codes will be defined for GTA Set Off / GTA Non Set Off and Other Service
Tax transactions.
Each Plant is created as business place. Separate set of GL accounts are defined for each
plant service tax registration accounts, where ever the registration is available.
Two sets of GL accounts will be defined. First set is meant for Input Service Tax Accounts
and the second Set is meant for Utilizable Service Tax Accounts.
Whenever the bill is accounted with service tax code, system will post service tax amount to
service tax input account. A BDC program will be made available for transfer the service tax
input amount to Service tax utilizable account. System will check whether the vendor line
item is cleared from the original entry. If it is cleared, system will transfer the balances from
Input Service Tax accounts to Utilizable service tax accounts. The balances in these
accounts are used for utilization.
The original document number and financial year is updated in the reference field of transfer
entry. With this, the track of the BED, Ecess and SHecess can be maintained.
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For foreign payments, the exact amount of service tax eligibility will be known only after
making the payment with prevailing exchange rate. Due to this reason the service tax portion
has to be directly debited to Service Tax utilizable accounts and bank account Is credited.
Once the entry is made in utilizable accounts, system shows the amount automatically in the
Service tax register.
GTA Service Tax accounting :
A separate Tax code is made available with 25% service tax liability, system will
automatically post the same liability to Service Tax input account. On making the payment to
the supplier, system will transfer the amount from service tax input account to utilizable
account.
Where ever the service tax is not liable to deduct from the bill, user can select tax code S0,
then system will not post any service tax amount for that document. We can get the service
tax exemption details, by using this option.
Service tax return in ST3 can be prepared manually by taking the data from SAP.
Transfer service tax from HO to the plants:
While transferring the service tax amount from HO to plants, the following entry will be
posted: Debit the concerned Receiving plant Service tax Utilizable accounts and credit the
HO utilizable accounts.
Data can be extracted from the HO service tax register and can be sent to the concerned
plants for utilization. Since the profit centers of the sending plant and receiving plant are
changed, system will trigger the segment clearing account.
Where ever the service tax is not eligible on any bills, service tax inventoried tax code has to
be used. With this system debit the same to expense accounts.
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Transfer of service tax happens only at the end of the month through custom developed
program (BDC). It is also advisable to clear the line items only at the end of the month.
Service tax Register will provide the vendor service tax registration number from the vendor
master.
Separate excise register will be developed for service tax purpose. It will not be clubbed with
RG23A Part II Register.
Register will be provided at each service tax registrations, based on the Service tax utilizable
GL accounts.
After completion of running the BDC, Service tax input accounts will give list of input service
tax un availed.
Service input account will give the consolidated list of open items. It will contain eligible for
utilization and not eligible for utilization line items. It is not possible to divide between these
two categories. After running the BDC program the eligible line items will move to service tax
utilizable accounts.
Register will be developed per registration for GTA Input, GTA Output, Non-GTA and for
Foreign payments. Nature of service will be maintained in the vendor master Control data
tab data tab against Profession field.
Service tax liability (collected on conversion charges) can be adjusted through journal
voucher as below:
Service tax payable
Service tax utilizable account
Dr
Cr
Service tax payable on GTA should be paid directly to the Govt. Authorities and cannot be
adjusted from utilizable account. Only after payment, that much amount can be Service tax
utilization for Excise duty payment.
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While doing monthly utilization for normal excise duty, service tax utilizable GL accounts for
the concerned plant will need to be entered.
Total service tax codes indicate rates will be:
Some of the service tax codes can be defined for Input tax :
S0 Service tax Nil
S1 - For normal service tax 10+2+1
SA GTA set off
SB GTA inventorized
S2 for Service tax with VAT
S3 Service tax with CST
GTA Service Tax:
While payment of GTA service tax liability to Govt.
Service tax payable
House Bank Cheques Issue
Dr
Cr
(this amount can be taken from service tax payable GL by selecting tax codes SA
and SB for particular period)
Service tax payable on non-GTA (on conversion charges etc.) will be adjusted through JV as
below:
Service tax payable
Service tax utilizable account
8.6.4
Dr
Cr
Extended Withholding Tax (TDS)
TDS will be covered as:
TDS on salary of employees: will be captured through payroll accounting process,

which is maintained in other systems (not in SAP)
TDS on others: TDS on Others will be categorized as per the following sections
under Income Tax Act, are being tracked in SAP System.
8.6.4.1
Official Withholding tax key
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The deduction of TDS takes place under various sections of the Income Tax Act. These
sections are defined as Withholding Tax keys in the system and mapped to the sections of
the Income Tax Act under which TDS is to be deducted. Based on the above, the following
official Withholding Tax codes shall be created in the system:
Section-194A
Section-194C
Section-194H
Section-194I
Section-194J
Section-195
TDS on Interest other than Interest on securities

TDS on payment to Contractors and sub contractors
TDS on Commission and Brokerage
TDS on Rent
TDS for Professional and Technical services
TDS on payments for Foreign services
Any new section which attracts TDS can be configured as Official Withholding Tax Key
8.6.4.2
Recipient type:
The vendors from whom TDS is deducted need to be classified as Company and Others.
Recipient type enables categorization of the vendors. This categorization is required for
creation of separate challan and printing the TDS certificates
8.6.4.3
Withholding Tax types:
Withholding tax types are defined at client level to represent the various types of withholding
taxes for i.e. 194C, 194J, 194I
etc. Withholding tax types are also used to determine
whether the deduction of TDS will take place at the time of invoice verification or at the time
of payment. These withholding tax types can be used once these are linked to the Company
codes. Withholding tax types shall be configured as per ARCH requirement.
8.6.4.4
Withholding Tax Codes:
The various sections of the Income tax Act prescribe the rate at which the Tax is to be
deducted. Withholding tax codes are used to define the rate at which tax is to be deducted
and the base amount on which the tax is to be calculated.
Vendor master: WHT type /codes shall be maintained in the Vendor master as applicable to
the vendor. Tax computation will be done by the system based on the WHT type/code
maintained in the vendor master at the time of invoice entry and also advance payments.
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Only tax type is maintained at the Payment level. This will ensure tax will not be deducted
both at the time of invoice and payment.
In the case of Advance payment, tax type will be
maintained and user needs to select the tax code. If multiple TDS sections are applicable to
a particular vendor, then all the tax types and tax codes for invoices applicable for those TDS
sections must be maintained in the vendor master. However at the time of invoice entry the
user has to select the correct tax type and code and exclude those which are not applicable.
System will facilitate manually enter the taxable amount: - At the time of posting user shall
amend the base amount.
Once the tax is calculated, it should be posted to the respective account Tax Payable A/c
automatically is a standard functionality. TDS Payable Account will be maintained section
wise and Recipe wise (whether Co or OT)
Exemptions rates will be maintained at the Vendor Master level for deducting tax to vendors.
Accounting entry at the time of Invoice entry:
Dr Expense a/c
Cr Vendor
Cr TDS Payable
(Separate GL accounts shall be created section wise like TDS payable Contractors,
TDS payable - Professional fee. etc.)
Accounting entry for advance payment to vendors:
Dr. Vendor Advance a/c
Cr. Bank a/c
Cr. TDS Payable
The following are the WHT types and codes, which will be maintained for ARCH:
WHY
Type
I1
I1
I1
I3
I3
I3
I4
I4
I4
WHT
Code
I1
I9
F1
I1
I9
F1
I1
I9
F1
Description
Sec 194C - Contract Inv Co/Firms 2%
Sec 194C - Contract Inv Hu/Indiv 1%
Sec 194C - Contract Inv 20%
Sec 194A - Interest Inv Co/Firms 10%
Sec 194A - Interest Inv Hu/Indiv 10%
Sec 194A - Interest 20%
Sec 194D - Ins Comm Inv Co/Firms 10%
Sec 194D - Ins Comm Inv Hu/Indiv 10%
Sec 194D - Ins Comm. Inv 20%
Tax Rate
2
1
20
10
10
20
10
10
20
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I5
I5
I5
I6
I6
I6
I7
I7
I7
I8
I8
I8
IA
P1
P1
P1
P3
P3
P3
P4
P4
P4
P5
P5
P5
P6
P6
P6
P7
P7
P7
P8
P8
P8
8.6.4.5
I1
I9
F1
I1
I2
F1
I1
I9
F1
I1
I9
F1
I1
P1
P9
F1
P1
P9
F1
P1
P9
F1
P1
P9
F1
P1
P9
F1
P1
P9
F1
P1
P9
F1
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Sec 194I - Rent Land &Bldg Inv Co/Firms 10%

Sec 194I - Rent Land &Bldg Inv Hu/Indiv 10%
Sec 194I - Rent Land &Bldg 20%
Sec 194I - Rent Pl & Mach Inv Co/Firms 2%
Sec 194I - Rent Pl & Mach Inv Hu/Indiv 2%
Sec 194I - Rent Pl & Mach Inv 20%
Sec 194J - Prof Fees Inv Co/Firms 10%
Sec 194J - Prof Fees Inv Hu/Indiv 10%
Sec 194J - Prof Fees Inv 20%
Sec 194H - Comm/Brkg Inv Co/Firms 10%
Sec 194H - Comm/Brkrg Inv Hu/Indiv 10%
Sec 194H - Comm/Brkrg Inv 20%
Sec 195 - Inv. Non Residents & Foreign Cos.
Sec 194C - Contract Pymt Co/Firms 2%
Sec 194C - Contract Pymt Hu/Indiv 1%
Sec 194C - Contract Pymt 20%
Sec 194A - Interest Pymt Co/Firms 10%
Sec 194A - Interest Pymt Hu/Indiv 10%
Sec 194A - Interest Pymt 20%
Sec 194D - Ins Comm Pymt Co/Firms 10%
Sec 194D - Ins Comm Pymt Hu/Indiv 10%
Sec 194D - Ins Comm Pymt 20%
Sec 194I - Rent Land &Bldg Pymt Co/Firms 10%
Sec 194I - Rent Land &Bldg Pymt Hu/Indiv 10%
Sec 194I - Rent Land &Bldg Pymt 20%
Sec 194I - Rent Pl & Mach Pymt Co/Firms 2%
Sec 194I - Rent Pl & Mach Pymt Hu/Indiv 2%
Sec 194I - Rent Pl & Mach Pymt 20%
Sec 194J - Prof Fees Pymt Co/Firms 10%
Sec 194J - Prof Fees Pymt 10%
Sec 194J - Prof Fees Pymt 20%
Sec 194H - Comm/Brkg Pymt Co/Firms 10%
Sec 194H - Comm/Brkrg Pymt Hu/Indiv 10%
Sec 194H - Comm/Brkrg Pymt 20%
10
10
20
2
2
20
10
10
20
10
10
20
2
1
20
10
10
20
10
10
20
10
10
20
2
2
20
10
10
20
10
10
20
TDS remittance:
Remittance will be made through the system by standard T-code J1INCHLN. Challans will
be updated for each section wise, corporate and Non corporate separately. Due dates will be
defined in the configuration for each section wise.
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Dr TDS Payable
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Cr Bank a/c
8.6.4.6
Bank Challan updation:
Bank challan number will be updated in the system through standard T code J1INBANK.
This will link the remittance challans with the external bank scroll number. No accounting
entry will be generated.
8.6.4.7
TDS certificate:
Certificates for the vendors can be generated by T Code- J1INCERT. Certificates cannot be
generated more than once. However duplicate certificate can be issued.
8.6.4.8
Quarterly E-Returns:
E-Returns for TDS shall be generated from the system by T code J1INQEFILE. The return
shall be converted into required excel file and can be validated for filing.
8.6.4.9
Acknowledgement No. updation in table
Quarterly acknowledgement number needs to be shown in TDS certificate which will be

issued to Vendor. Ack. No. will be maintained in separate TDS table and from there it will
flow to certificate.
8.6.4.10
TDS deducted by Customers:
A separate set of WT tax code & tax type shall have to be created for customers. Following
accounting entry shall be generated at the time of receiving the payment:
Dr.
Bank a/c
Dr.
TDS deducted by customer a/c
Cr.
Customer a/c
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The system will propose the TDS amount and the user can overwrite the amount, if
required.
After receiving the TDS certificate from the customer, J1INCUST transaction shall be
run and following accounting entry shall be generated:
Dr. Advance Tax Paid A/c/TDS certificates received a/c
Cr. TDS deducted by customer a/c
8.6.5
Forms Capturing
Form Capture Procurement: For purchases made against form C, Sales tax forms needs
to be submitted to the Vendor. The forms can be availed from the Sales Tax Department on
submission of relevant documents like invoice, monthly returns filing details etc. The details
can be tracked in SAP by developing the report. It contains the following process:
All the purchases made against C form will be displayed in one table.
Forms taken from the department will be recorded in Master table.
Forms issued against purchases invoice will be recorded against the invoice no.
Balance line items for which forms are to be issued can be identified.
Form Capture Sales: Sales made against form C/ H, Sales tax forms needs to be
submitted to be collected from customers. These forms can be issued by the customers
quarterly basis. Such forms need to be recorded in SAP for better control. The details can be
tracked in SAP by developing the report. It contains the following process:
All the Sales made against Form C or Form H will be considered in one table.
Form Type needs to be update against each billing document.
Forms received against billing documents can be maintained against the billing
document number.
Balance line items for which forms are to be issued can be identified.
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The above forms tracking requirement will be taken up through ABAP development.
8.6.6
Other Taxes
Other than sales tax and excise duty, Navi Mumbai tax needs to be paid for purchase made
for Plants located in Navi Mumbai. 1% cess will be calculated on the total purchases during
the month and month end provision needs to be made for the tax payable and subsequently
the same will be paid.
Page 148 of 189
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PAGE: Page 149 of

189
SUPERSEDES: N/A
9 Integration considerations
Chart of Accounts:
The operating chart of accounts is shared by Financial Accounting as well as Controlling.
The accounts in a chart of accounts can be both expense or revenue accounts in Financial
Accounting and cost or revenue elements in cost/revenue accounting.
General Ledger Account:
Automatic account determination / posting is one of the most powerful methods to determine
the correct G/L account to post to by considering the type of transactions and other factors.
This feature provides a lot of flexibility and eliminates the need to hard code the G/L account
in the source code.
FI CO Integration:
The operating chart of accounts is shared by Financial Accounting as well as Controlling.
The accounts in a chart of accounts can be both expense or revenue accounts in Financial
Accounting and cost or revenue elements in cost/revenue accounting. Relevant GL-P&L
accounts are maintained as cost elements in Controlling.
MM FI Integration:
MM and FI are integrated by way of automatic account assignments to GL accounts for
material movements types, which have an impact on financial information. Also valuation
classes are linked to FI for purpose of providing inventory valuation and other material
movement postings in FI.
SD FI Integration:
SD account assignments depend on the condition tables & access sequences to determine
the correct G/L account. One can set up condition tables / types to use different
characteristics such as:
Customer Account Assignment Group
Page 149 of 189
Business Blue Print

Sales Organization
Material Account Assignment group
Account keys
PAGE: Page 150 of

189
SUPERSEDES: N/A
These account modifiers are used to assign different G/L accounts to various condition
types.
The following Customer Account Assignment groups will be created for Arch:
Customer
Account Description
Assignment Group
11
12
21
31
41
Domestic - Normal
Domestic - SEZ
Export
Merchant Export
Affilated Cos.
The following Material Account Assignment groups will be created for Arch:
Material
Account Description
Assignment Group
10
20
31
32
40
45
51
90
91
92
Intermediates
API
CRAMS-Intermediates
CRAMS-API
Agro Chemicals
Trading Material
Services
Others
Job work
Scrap sale
The following Account Keys will be created for Arch:

Account Key
110
300
200
130
120
520
Description
Sales Revenue
Sales Returns
Excise duty collected
Insurance
Freight charges collected
Commission
Page 150 of 189
Business Blue Print

521
Commission Accruals
JN7
CST Payable
JN6
VAT Payable
260
TCS
410
Customs Duties collected
420
Misc. Expenses collected
PAGE: Page 151 of

189
SUPERSEDES: N/A
Page 151 of 189
Business Blue Print

Process
FI
CO
Organisation
Company Codes, Chart of Accounts, Profit
Controlling
Structure
Centres, Currencies
Elements
Dr. Cost of Goods Sold A/c
Controlling
Cr. Finished Goods Inventory A/c
generates
PAGE: 152 of 189

SUPERSEDES: N/A
MM
Area,
Cost
Plant,
Locations,
SD
Storage
Purchase
Organization
PPQM
Sales Organization,
Distribution
Channel, Division
Sales & Distribution
Post Goods Issue
Document
Material Document is
posted
Dr. Customer A/c

Billing
Invoice
Creation
Cr. Sales Revenue A/c
Controlling
Cr. Excise Duty collected
generated
Document
Cr. VAT/CST Payable

Return
Delivery
Processing
Post Goods Receipt
Return
Invoice
Credit Memo
Dr. Finished Goods Inventory A/c
Controlling
Cr. Cost of Goods Sold A/c
generated
Dr. Sales Returns A/c
Controlling
Cr. Customer A/c
generated
Document
posted
Document
Materials Management
Purchase
Documents
Purchase
Requisition
Purchase
Commitments
Requisitions
updated on the Account
will
be
Assignment object
Purchase
Commitments
Purchase Orders
Order
will
be
updated on the Account

Assignment object
Inventory Management
Goods Receipts
Goods Issue
Subsequent
Dr. Raw Material Stock A/c
Controlling
Cr. GR / IR Clearing A/c
generated
Dr. Consumption of Material A/c
Controlling
Cr. Raw Material Stock A/c
generated
Accounting Document generated
Controlling
Adjustments
Document
Document
generated
Transfer Postings
Cancellation
Document
Controlling
Document
generated
of
documents
Physical Inventory
Controlling
Document
generated
Controlling
Document
generated
Service Entry
Service Entry Sheets
Controlling
Document
generated
Page 152 of 189
Business Blue Print

Process
FI
PAGE: 153 of 189

SUPERSEDES: N/A
CO
MM
SD
PPQM
Invoice Verification
Invoice

Subsequent Credit
Document
generated
Controlling
Document
generated
Subsequent Debit
Controlling
Document
generated
Credit Memo
Cancel
Controlling
Controlling
Document
generated
of
invoice
documents
Controlling
Document
generated
Production Planning
Goods issue against
Process Order
Confirmation
of
posted
Document
generated
Goods
Receipt
against
Process
Order
Settlement
Document
generated
Controlling
Process Order
Process
Controlling
Order
Controlling
Document
generated
Controlling
generated
posted
Document
posted
Page 153 of 189
Business Blue Print

PAGE: 154 of 189

SUPERSEDES: N/A
10 Process Requirements
Req. Ref #
Requirement
SAP Process
Purchase Invoice Booking Procedure
001/001
It
should
check
tax Based on Purchase
schedule at the time of Order entered Invoice
booking the invoice
verification, system will
check tax schedule of
PO.
001/002
On saving the invoice in the On posting the invoice
system it should reflect in document
Vendor
vendor account.
account
will
be
updated.
001/003
System should check for GR qty. will be copied in
GRN and bill qty at the Invoice verification and
time of booking
that qty. can be cross
check with Vendor bill
qty.
001/004
System should check the System will check PO
PO rate and invoice rate at rate, since PO will be
the time of booking the entered in Invoice.
invoice.
001/005
Form capturing option at Based on requirement,
the time invoice booking
process needs to be
developed
001/006
In case of RM local and Local Purchase GR
import Purchase booking based
invoice
the system should check all verification and Import
the standard measures Purchase Invoice
which are needed which verification for duty, GR
booking the invoice
based
on
invoice
verification and Invoice
verification for Material
001/007
In case of PM local and System will check the
import Purchase booking standard measures for
the system should check all invoice verification:
the standard measures PO Terms Supplier,
which are needed which Material, Qty, Price
booking the invoice
Goods Receipt - Qty.
and Value
Invoice verification will
be posted as per PO
and GR and consider
tolerances maintained
for price or Qty.
001/008
In case of Engg local and System will check the
import Purchase booking standard measures for
the system should check all invoice verification:
the standard measures PO Terms Supplier,
Status
Standard
Standard
Standard
Standard
Development
Standard
Standard
Standard
Page 154 of 189
Business Blue Print

Req. Ref #
Requirement
which are needed which
booking the invoice
001/009
In case of Capital local and

import Purchase booking
the system should check all
the standard measures
booking the invoice
001/010
In case of Traded local and

import Purchase booking
the system should check all
the standard measures
booking the invoice
001/011
In case of Lab Chemical

Purchase
booking
the
system should check all the
standard measures which
are needed which booking
the invoice
001/012
In case of High Seas

Purchase
booking
the
system should check all the
standard measures which
are needed which booking
PAGE: 155 of 189
SAP Process
SUPERSEDES: N/A
Status
Material, Qty, Price

and Value
be posted as per PO
and GR and consider
for price or Qty.
System will check the
standard measures for
invoice verification:
PO Terms Supplier,
and Value
be posted as per PO
and GR and consider
for price or Qty.
PO Terms Supplier,
and Value
be posted as per PO
and GR and consider
for price or Qty.
PO Terms Supplier,
and Value
be posted as per PO
and GR and consider
for price or Qty.
PO Terms Supplier,
Standard
Standard
Standard
Standard
Page 155 of 189
Business Blue Print

Req. Ref #
Requirement
the invoice
001/013
How the tolerance limit will

help in invoice booking in
SAP for material
001/014
In import purchase the

exchange rate are taken as
per EXIM rate in the start of
the month and is kept the
same for full month. This is
also applicable for Sales.
All foreign remittance and
payments are done on the
basis of actual bank advice
PAGE: 156 of 189
SAP Process
SUPERSEDES: N/A
Status

and Value
be posted as per PO
and GR and consider
for price or Qty.
Tolerance limits will Standard
help in Price verification
of Vendor Invoice while
accounting and Qty.
tolerance for accounting
Goods Receipt
Separate exchange rate Standard
types for imports and
exports
will
be
maintained in SAP.
Against
each
type,
exchange rates will be
maintained
in
the
beginning of the month.
Import/Export
documents will be post
based on the exchange
rate maintained.
Payment Procedure
002/001
At the time of making the
advance , system should
ask for PO allocation and it
should also check for
previous advances
002/002
002/003
002/004
In
Purchase
Order Standard
itself, Down Payment
details
will
be
maintained and will be
tracked up to invoice
verification.
In case of part payment PO will be available for Standard
made in advance against a next
advance
for
particular PO then that PO balance amount.
should again be available
for next advance for
balance amount if any.
If for the vendor TDS is TDS conditions will be Standard
applicable then at the time maintained in Vendor
of making the advance Master. While making
payment system should advance payment or
prompt for TDS deduction
invoice
verification,
system will proposed
for TDS deduction.
System should check at the Since
the
advance Standard
time of making advance details will be entered in
payment against PO that Purchase order itself,
Page 156 of 189
Business Blue Print

Req. Ref #
Requirement
whether the advance does
not cross the PO value.
002/005
Require cheque printing
through system with advice.
Also
manual
cheque
feeding. The stock of
cheque leaves are there for
6 months from Jun-10
onward
002/006
The system should be able
to give reports on payment
made based on type of
payment made ie Material
Payment for Local and
Import, Service Payment for
Local and Import, Expenses
payment,
contractual
payment, statutory payment
etc.
Cash Receipt & Payment Procedures

004/001
Provision for accounting of
IOUs.
004/002
Limit control for Imprest
cash & Petty cash.
PAGE: 157 of 189
SAP Process
SUPERSEDES: N/A
Status
advance does not cross

the PO Value.
Cheque Printing and Development
Advice can be possible
with development
Advances
Recon Standard
accounts needs to be
created for each type
i.e. RM Local, RM
Import, Service Local,
Service
Import,
Expenses payment. If
advance
recon
accounts maintained as
above, all advances
can be routed through
different Special GL
Indicators.
IOUs will be treated as Standard
advances in SAP
Limit control can be put Standard
for Cash or Petty cash if
it routed through cash
journal
Sales Invoice Booking Procedure

005/001
It
should
check
tax Sales Tax schedule will
schedule at the time of be determined in billing
booking the invoice
based on Customer
Region, Plant region
and
Material
tax
classification.
005/002
On saving the invoice in the On saving the invoice
system it should reflect in and if released to
customer account.
accounts, then it reflect
in customer account.
005/003
System should check for Will check DO and bill
DO and bill qty at the time qty. at the time of
of booking
billing.
005/004
System should check the Sales Order rate will be
SO rate and invoice rate at taken for billing.
the time of booking the
invoice.
005/005
Form capturing option at Based
on
the
the time invoice booking
requirement,
Form
Standard
Standard
Standard
Standard
Development
Page 157 of 189
Business Blue Print

Req. Ref #
Requirement
PAGE: 158 of 189
SAP Process
SUPERSEDES: N/A
Status
capturing
process
needs to be developed
005/006
Provision for TCS for scrap Provision
will
be Standard
sales to be finalized
available by maintaining
a condition type in
Scrap Sales pricing.
005/007
Sale in transit Export for Instead of Cost of Work around
month end change over. goods sold account,
(BL Date & CI Date)
Sale in Transit account
will be hit and the same
will be reversed while
billing.
005/008
Excise rebate receivable Will be traced through a Standard
has to be tracked in SAP
separate excise sub
transaction type.
Stock Transfer Procedure
006/001
In case of inter branch Postings will happen to Standard
transfers the system should Stock accounts and
take care of entries for STO Inter
unit
clearing
accounts.
006/002
In stock transfer from plant Excise component will Standard
to plant the system should be taken into RG23D
not expense out the excise register, in case of
component
Depo transfer.
Loan & Rent Accounting Procedure
007/001
ECS / cheque recurring Recurring entries can Work around
entries to be automated
be
automated
by
maintaining background
scheduling
on
a
particular
period
in
every month.
Credit Note-Debit Note Procedure
010/001
Quantity rebate to be
Work around
automatically
calculated
(On sales as well as
purchase).
010/002
Debit and credit note Debit and Credit note Standard
should be passed in system can be routed through
with reference to vendor or MM and SD module
customers bills so that no with reference to the
double discount should be invoice
or
billing
given to customer against documents.
the same Invoice.
010/003
Purchase Return & Sales Can be captured while Development
Return
should
be developing
the
considered in Purchase Purchase and Sales
Register & Sales Register registers.
respectively.
Bank Reconciliation Procedure
Page 158 of 189
Business Blue Print

Req. Ref #
Requirement
011/001
Upload of bank statement
in
the
system
for
reconciliation in predefined
format
011/002
Daily Reconciliation to take
place automatically
DEPB Advance License

012/001
Mechanism
for
proper
recording
of
Exports
incentives such as DEPB,
Advance license & duties
saved in case of advance
license.
Currency for Books of Accounts
015/001
For Notes to accounts, we
have to give information as
Expenditure incurred in
foreign currency. Hence,
there should be provision
for
inputting
certain
expenses
in
foreign
currency also ie. foreign
travel, interest, professional
fees.
015/002
For Notes to accounts, we
have to give information as
Earnings
in
foreign
currency. Hence, there
should be provision for
inputting certain Income in
foreign currency also ie.
Export Income
Foreign Currency Valuation
016/001
System should do the
revaluation automatically as
per AS-11
PAGE: 159 of 189
SAP Process
SUPERSEDES: N/A
Status
Banker needs to be Development

given the statement in
SAP required format.
Open items in Cheque Standard
issue
and
Cheque
deposit account are
reconciliation
items.
This can be viewed at
any point of time.
Can be achieved from Development
EMS package, to be
confirmed.
In document entry level Standard

such expenditure can
be accounted in foreign
currency
and
subsequently converted
in INR and posted into
books of accounts.
In document entry level, Standard

receipt
can
be
accounted in foreign
currency
and
subsequently converted
in INR and posted into
books of accounts.
Open items in Foreign Standard
exchange will be done
based on the valuation
type and exchange rate
maintained in the table
Customer Master
017/001
Proper Customer
should be possible
017/002
coding Customer coding is Standard

internally based on
Customer
Account
groups
System should not allow to Can
be
controlled Standard
change the description as through authorization
Page 159 of 189
Business Blue Print

Req. Ref #
Requirement
and when required
017/003
System should not allow
the grouping to be changed
as per the requirements
017/004
System should bifurcate
between Domestic and
Export customers
Vendor Master
018/001
Proper
Vendor
should be possible
PAGE: 160 of 189
SAP Process
SUPERSEDES: N/A
Status
Can be make display Standard

once the transactions
are posted
Can be bifurcated by Standard
maintaining
separate
reconciliation accounts
in relevant customer
masters
coding Vendor coding will be

based
on
Vendor
groups,
can
be
maintained
either
internal or external.
018/002
System should not allow to Can
be
controlled
change the description as through authorization
and when required
018/003
System should not allow Can be make display
the grouping to be changed once the transactions
as per the requirements
are posted
018/004
System should bifurcate Can be bifurcated by
between local and imported maintaining
separate
vendor.
reconciliation accounts
in
relevant
Vendor
masters
018/005
During the process of Vendor taxation details
creation of vendor the can be maintained in
taxation details needs to be Vendor Master and
captured and this should be validation cannot be
validated.
possible
018/006
Vendor
change Master
change
confirmation feature should confirmation can be
be activated
activated
018/007
Vendor codification types Vendor groups can be
should be provided such as maintained as caped,
capex vendor, material Raw Material, Service
vendor, service vendor, etc. etc.
GL and Bank Master
019/001
Proper GL and Bank GL and bank master
Master coding should be coding will be external
possible
019/002
Audit
trail should be Changes in Master can
available in the master
be identified
Asset Master
020/001
Proper Asset Master coding Asset Master coding
should be possible
will be depends on
Asset Classes
020/002
Asset Class should be Asset Master will be
Standard
Standard
Standard
Standard
Not Possible
Standard
Standard
Standard
Standard
Standard
Standard
Page 160 of 189
Business Blue Print

Req. Ref #
Requirement
available in the master
020/003
PAGE: 161 of 189
SAP Process
SUPERSEDES: N/A
Status
created under Asset

class
Purchase history can Standard
be available in Asset
Master
Other details like Plant, Standard
Cost centre, rate of
depreciation can be
available.
Asset master should also

contains
the
purchase
history
020/004
Asset master should also
contain other details ie.
plant,
cost
centre,
equipment no for physical
verification,
rate
of
depreciation as per Cos.
Act and IT Act, 1961 and
owner of the asset
Asset Acquisiton,Sale, Transfer and Depreciation
021/001
There should be asset Cost Centre, Plant,
master with field of cost location, identification
centre,
plant,
location, mark, class of asset,
identification mark, class of depreciation key will be
asset, depreciation rate, available
in
Asset
method of depreciation, etc. Master
021/002
There should be asset Asset history sheet will
history card which gives the be available, which
details of purchases such contains
Vendor,
as vendor name, invoice Invoice, PO details etc.
no, po no, etc.
from document
021/003
There should be auto asset Auto asset numbering
numbering based on the should be possible for
class of asset and plant.
each Asset Class
021/004
Single assets current and In Asset History sheet
future depreciation card
current and future years
depreciation available
021/005
How
to
return
the
purchased asset back to
vendor
021/006
How to tackle Direct and Direct capitalization
indirect assets (Direct Purchase order will be
Direct capitalization and raised for Asset PO and
Indirect - First CWIP and Direct Asset No. will be
expenses relates to assets maintained
in
PO.
will be accumulated to While doing GR or IV,
CWIP
and
then Asset will be capitalized
capitalization
to
Main directly. If it is from
Asset )
CWIP, subsequently it
will
be
distributed/transferred
to Main Asset
021/007
How to tackle tangible and Through
Separate
intangible
asset
like Asset
Class
and
patents, software etc.
Account Determination
Standard
Standard
Standard
Standard
Standard
Standard
Page 161 of 189
Business Blue Print

Req. Ref #
Requirement
021/008
If the asset is capitalized
and after that during audit if
the auditor says it is to be
expensed out then how to
do that and also vice-aversa
021/009
How to check that the
particular asset is not
depreciated more than the
capitalized value ie cut off
value
for
end
of
depreciation should not be
in go in minus value
021/010
How to take care of assets
purchase
for
pollution
control or other regulatory
assets from depreciation
point.
021/011
How to tackle the RG23C
amount if the asset is
purchased in one unit and
transferred to other unit in
same year, the excise value
021/012
How to tackle the RG23C
amount if the asset is
purchased in one unit and
transferred to other unit in
second year, the excise
value
021/013
Facility to record the
Physical
verification
of
Asset
021/014
Insurance details like expiry
date, insurance covered or
not covered
021/015
021/016
PAGE: 162 of 189
SAP Process
SUPERSEDES: N/A
Status
Retirement
without Standard
revenue concept can be
used and JV credit to
expenses and debit to
asset can be used in
expenses case.
Asset
cannot
be Standard
depreciated more than
acquisition value.
Separate Asset class Standard

and depreciation key
can be maintained
In the same year Standard
remaining 50% also can
be taken into books
Excise value can be Standard
calculated
manually,
system will provide the
details of purchase
In
Asset
Master
Physical
verification
date can be maintained
Whether insured or not
insured details can be
maintained in Asset
Master. For insurance
tracking, needs go for
development based on
detailed requirement
CWIP details Assets class Through separate Asset
wise ie. CWIP Buildings, classes for CWIP this
CWIP Plant and Machinery can be achieved
etc. Internal order wise
details (WBS element wise
from PS Module) required
for Pending Capitalization
Assets.
Asset Class wise balances Asset
class
wise
in Asset Module should tally balances
will
be
Standard
Standard
and
Development
Standard
Standard
Page 162 of 189
Business Blue Print

Req. Ref #
Requirement
with
GL balances
in
Financial Module. What
Precautions we should
take.
021/017
Plug in or Direct assets are

to be routed through
Internal Order and projects
through WBS element of
PS Module
021/018
System should have the

facility of recording the
physical verification details
of assets
System should have the
facility of recording the
details of insurance in SAP
regarding expiry, etc
CWIP to be maintained
asset class wise.
021/019
021/020
021/021
021/022
021/023
021/024
PAGE: 163 of 189
SAP Process
SUPERSEDES: N/A
Status
automatically
tallied
with GL balances, since
Asset related GLs are
Reconciliation
accounts.
Plug in Assets can be Standard
directly capitalized or
can be routed through
internal
order
and
Project assets can be
routed the PS module
Physical
verification Standard
date can be maintained
in Asset Master
Needs to be developed Development
a report separately as
per the requirement
CWIP Assets can be Standard

created under relevant
CWIP Asset class
Internal Order should be Assets can be routed Standard
maintained class wise and through internal order
if this facility is not available through project systems
in SAP then it should be
Projects (WBS) wise.
Asset class wise balances Always tallied with GL Standard
in FI_AA should tally with balances since all GLs
GL balance.
are Asset Reconciliation
accounts. Documents
will
be
posted
simultaneously both in
AA sub ledger and GL
System should allow to take Can be maintained Standard
care of assets less than different asset classes
Rs.5000/100% and assets needs to be
depreciation p.a. but in created under relevant
Avon the asset less that asset classes i.e Under
Rs.5000/- are not fully Low Value Asset class
depreciated but are taken and normal Asset Class
under office equipment
class and then depreciated
as the companies act
depreciation rate
System should be able to Asset Purchase, Sale Standard
cater all asset requirement and Transfers can be
in case of Purchase, Sales, handled
Transfer as per Income Tax
Page 163 of 189
Business Blue Print

PAGE: 164 of 189
SUPERSEDES: N/A
Req. Ref #
Requirement
SAP Process
Status
021/025
CWIP ledgers should be Different GLs needs to Standard
class wise
be created for each
CWIP asset class
021/026
CWIP status should be Line item details will be Standard
there such as OP + available under CWIP
Addition Capitalized = CL GL
021/027
The system should have Detailed
requirement Standard
the
facility
of
Asset needs to be given by
Revaluation
Arch to configure the
same
021/028
The system should have Impairment process is Standard
the facility of Impairment of available
in
Asset
Asset.
Module through sub
Asset concept
022/001
The asset history card While sale or discard Standard
should be there which will the Asset, system will
allow the user to find out automatically calculate
the depreciation and net loss or profit on the
book value as on the date particular asset and
of sale or discard.
details can also be
available
022/002
The asset history card In drill down option all Standard
should also give the details the details can be
of purchases such as available
vendor name, invoice no,
po no, date of purchase,
gross value, accumulated
depreciation, etc.
022/003
In case of discard, the Discarded Asset details Standard
asset should be there in can be available and
asset register but the depreciation will not be
depreciation should not be charged
calculated, such provision
should be there.
023/001
The asset history card Asset history details Standard
should be there which will can be having such
allow the user to find out details like Acquisition
the depreciation and net value, Depreciation, Net
book value as on the date book value etc.
of transfer.
023/002
The asset history card Drill down option will be Standard
should also give the details available to view all the
of purchases such as details
vendor name, invoice no,
po no, date of purchase,
gross value, accumulated
depreciation, etc.
024/001
The asset history card Asset history details Standard
should be updated after can be having such
Page 164 of 189
Business Blue Print

Req. Ref #
Requirement
posting depreciation and
the user should be able to
find out the depreciation
and net book value as on
the date.
024/002
Depreciation should be
calculated as per the class
of asset and if need be on
the special rate as given
while creating the asset
master.
PAGE: 165 of 189
SAP Process
SUPERSEDES: N/A
Status
details like Acquisition

value, Depreciation, Net
book value etc.
By default system will Standard

take the Asset class
depreciation rate, if
needs to be changed
can be change the
depreciation key while
creating the asset
024/003
Depreciation should also be Report
can
be GAP
calculated as per Income developed based on
Tax.
Group Asset concept.
Product Development Cost
025/001
System should be able to Expenses
incurred Standard
co-relate expenses incurred through the project can
for particular project wrt be
available
from
WBS element
Project Systems reports
Excise Duty
026/001
Job work Out : Any Material Such input can be Standard
sent to Party for Job work reversed manually and
which is not received back accepted the same by
within
180 days duly Arch
team
while
processed or as it is, reviewing FRS
amount equal to the Cenvat
Credit availed on such
inputs must be reverse
automatically with reference
to inward GRN Number.
026/002
In case of input removal as If the selling price Standard
such from the factory maintained
as
the
amount equal to Cenvat purchase price, removal
Credit availed must be as such option can be
reverse through Excise available.
If selling
Invoice and the duty price is other than the
amount should come to purchase base price,
Excise
Invoice excise duty will be
automatically with reference calculated based on the
to inward GRN Number.
percentage maintained
in condition against the
material.
026/003
In case of Capital goods Remaining 50% on hold Standard
removed
as
such/after amount also can be
being used within same taken during the year ,
Financial year the Balance by executing relevant
50% deferred cenvat Credit transaction
is to be taken before
Page 165 of 189
Business Blue Print

Req. Ref #
Requirement
removal of such Capital
Goods Automatically with
reference to inward GRN
Number.
026/004
Criteria for reversal of
Cenvat Credit availed on
CG at the time of removal
are as under. This duty has
to calculate automatically in
the System.
Example:
Capital Goods received on
dtd 15th feb 2009
Amt of cenVat credit Amt of
Rs.10000/CG removed or sold on
ded: 1st April 2010
Rs. 10000/- Six Qtr to be
consider = 15%(2.5%PM*6
QTR) Rs.8500/Rs.10000/- - Rs.1500/- =
rs.8500/Total amt to be reverse
Rs.8500/026/005
Additional duty paid on
capital goods under section
3(5) of custom tariff act
1975 must availed 100%
instead of 50% (in case of
Avon 50% in current year
and 50% for Next year)
026/006
Invoice Chain:
Base on SO- DO
must be prepared
On the basis of DO
excise invoice must
be
generate
automatically.
On the basis of
excise invoice ARE1 must be generate
Automatically
for
export and deemed
Export
There should be
separate
excise
Invoice series for
Domestic
and
PAGE: 166 of 189
SAP Process
SUPERSEDES: N/A
Status
Cenvat credit details Standard

can be available. Based
on
the
details,
Assessable
value
needs to be arrived
manually and the same
has been discussed
while reviewing URS
Additional
duty Standard
condition
percentage
will be maintained as
100%.
Delivery order will be Standard

prepared based on
Sales order.
Excise invoice will be
created based on billing
document or proforma
invoice.
ARE-1 invoice will be
created based on billing
document or proforma
invoice.
Separate
invoice
numbers
can
be
maintaining
separate
series
groups
for
domestic and export
sale.
Page 166 of 189
Business Blue Print

Req. Ref #
Requirement
Export Sale
026/007
Generate Job work out
Challan Annexure 60
026/008
Unit
wise
Excise
profile(Registers) for Audit
purpose
026/009
026/010
026/011
026/012
026/013
026/014
Payment Received against

outstanding excise refund
should be allocated to the
respective invoice in Excise
refund GL account and MIS
should
be
available
reflecting o/s excise refund
entries
Need
the
system
of
Supplementary
Excise
Invoice
for
Dealer
registration
for
Rate
Difference
on
the
manufactured
material
received from Arch location
and sold at higher rate to
the customer(Concept of
Depot Sale)
In case of Job work
Material 180 days are over
and material not received
on time then automatic
reminders
should
be
generated.
show pending Proof of
Exports and pending claim
for Rebates
PAGE: 167 of 189
SAP Process
SUPERSEDES: N/A
Status
Job work challan can Standard

be generated
Excise groups will be Standard
created
for
each
excisable
unit
and
registers can be drawn
based on excise group
Excise rebate refund Standard
receivable
can
be
maintained as open
item managed and
clearing can be done
while receipt of the
payment
Supplementary excise Standard
invoice
will
be
generated by original
plant from where the
material is shifted to
Godown/ warehouse
Needs to be tracked by Standard

analysis of reports
Pending
proof
of Standard
exports can be tracked
through EMS and open
items in Cenvat claim
receivable account is
pending
claim
receivable
PLA and TR6 Challan PLA and TR6 Challan Standard
provision to be maintained provision
will
be
in SAP
available
through
Excise JV and PLA
register can be drawn
from SAP based on
Excise group
Excise RG balances should RG register balances Standard
tally with accounts GL will be automatically
balances location wise.
tallied
with
GL
Page 167 of 189
Business Blue Print

Req. Ref #
Requirement
026/015
026/016
026/017
026/018
026/019
026/020
Separate excise register

should be available in case
of job work IN with excise
credit.
Supplementary
invoicing
facility should be available
ER-1, 6 Returns are

prepared and submitted to
excise dept on monthly
basis before 10th, this
should be available from
the system.
ER-4, 5 and 7 Returns are
prepared and submitted to
excise dept on yearly basis
this should be available
from the system.
If the supply is with
tolerance limit than duty
captured will be as per gate
pass.
If supply is out of tolerance
then duty will be captured
on actual qty received.
Material transferred to RG1 in BP grade and 50 kg
pack but want to sell to
customer the same material
in EP grade and 20 kg
pack. How to tackle this in
SAP because if we remove
the material for this purpose
then it will go through
captive consumption but
then Captive consumption
material should be removed
PAGE: 168 of 189
SAP Process
SUPERSEDES: N/A
Status
balances, since both

registers and GLs will
be
updated
simultaneously
while
posting the transactions
Details can be available
by maintaining separate
excise group or sub
transaction type
Supplementary excise
invoice
will
be
generated by original
plant from where the
material is shifted to
Godown/ warehouse
ER1 returns can be
available
and
ER6
returns needs to be
checked after receipt of
requirement from ARCH
Standard
Standard
Standard
and
Development
Developments can be Development

made based on receipt
of requirement from
ARCH
Duty can be taken Standard
based on the Goods
receipt Qty. if the supply
is
within
tolerance
limits. If supply is out of
tolerance, duty credit
can be taken as per the
exact qty. received in
Goods receipt.
For updating of any Standard
Material movement in
RG1,
separate
transaction needs to be
performed.
As and
when final GR for sale
material, then RG1 can
be updated and sale
transaction
subsequently.
Page 168 of 189
Business Blue Print

Req. Ref #
Requirement
for using it in other material
manufacturing
026/021
Sales Tax
027/001
027002
027/003
027/004
027/005
027/006
027/007
PAGE: 169 of 189
SAP Process
SUPERSEDES: N/A
Status
Input removal as such

should have the excise duty
transferred the one which
had come in original
If the selling price Standard

maintained
as
the
purchase price, removal
as such option can be
available.
If selling
price is other than the
purchase base price,
excise duty will be
calculated based on the
percentage maintained
in condition against the
material.
Any tax amt reflected to

Sales and purchase tax GL,
transaction should be taken
place
in
Sales
and
Purchase Register.
Purchase Report should be
Combination of All Type of
purchase (Format attached)
Purchase
Summary
(purchase Tax summary
base is Tax description)
Sales Tax Report should be
combination of All type of
Sale
Sales Summary (base is
Tax description)
Sales & Purchase Tax
Summary
Can be reflected in Development

Sales and Purchase
register, which needs to
be developed
As per fomat, Purchase Development
register
will
be
developed
Tax description wise Development

sales register can be
developed
Can
be
available
through GL or needs to
be developed based on
the requirement
On basis of GTO calculate Stock transfer details
Stock Transfer % of Out of can be taken from SAP
Maharashtra
and percentage needs
to be derived based on
the information
T-code require for C form, Report needs to be
H form, F form Etc developed based on the
Number update into system requirement
by Sale man after collection
of Forms
No of digit for taxation fields Validation cannot be
and duplication validation possible
should be put
Standard
and
Development
Standard
Development
Manual
check
Page 169 of 189
Business Blue Print

Req. Ref #
Requirement
027/008
Type of Sales require in
Report
Type of Purchase Require
in Report
027/009
Bonding of material for
temporary purpose without
taking in the plant but GRN
to be done and purchase
should be of that particular
plant
027/010
027/011
027/012
027/013
027/014
027/015
027/016
PAGE: 170 of 189
SAP Process
SUPERSEDES: N/A
Status
Purchase and Sales

registers
can
be
developed based on the
type of materials
Bonding material GR
will be prepared in
Logical port plants.
Material
will
be
transferred
to
the
relevant plant through
STO
Transaction of high seas High Sea Purchase and
purchase and sales should Sales can be identified
be identifiable in accounts through Purchase and
and sales tax
sales
registers
by
maintaining
separate
sales order type and
billing document type
Online rejection booking
when we have purchased in
C form and how to treat
purchase return booking
State wise general ledger Different sales tax rates
for sales tax required ie transactions can be
12.5%, 4%, 2% etc
routed to separate GLs
Drill down of sales type Drill down will be
should be available from available
up
to
P&L accounts
document level for all
General
Ledger
accounts whether P&L
or Balance Sheet
Multiple Tax Posting Facility Multiple tax postings
require
can be available by
maintaining different tax
codes
for
input
materials
and
by
different
tax
classifications for Sales
No of digit for taxation fields Validation cannot be
and duplication validation possible
should be put
PO amendment for CST At the time of Bill
and VAT at the time of bill booking, option will be
booking
available for change of
tax codes and the
difference
will
be
posted to Stock or Price
difference. If PO needs
to be changed, then GR
Development
Standard
Standard
and
Development
Standard
Standard
Standard
Manual
check
Standard
Page 170 of 189
Business Blue Print

Req. Ref #
Requirement
027/017
Service Tax
028/001
028/002
028/003
028/004
028/005
028/006
028/007
028/008
PAGE: 171 of 189
SAP Process
SUPERSEDES: N/A
Status
should be cancelled.
Proper matrix on deemed Deemed
exports Standard
export treatment from sales revenue will be treated
tax and accounts angle
as domestic revenue in
Financial Accounting.
At the time of payment to
Service Tax vendor then
Service
Tax
amount
transfer to Service Tax
utilization account against
the Excise Cenvat Payable.
Service Tax GL wise report
with
Service
Tax
Registration Number of
Vendor
By
maintaining
the
Service tax utilization
account while running
cenvat
utilization
process, this can be
possible
Service tax details can
be
maintained
in
Vendor Master and the
same can be captured
in Purchase Register
Form ST/3 should generate Needs to be developed
automatically
as per the requirement
View report separately.
Needs to be developed
Service Tax/Others (based as per the requirement
on the payment made to
Vendor)
Service Tax/GTA (inward
based on the payment
made to Vendor)
Service Tax/GTA (outward
based on the payment
made to Vendor)
Consolidated
Report
Service Tax GTA (based on
the payment made to
Vendor)
Consolidated
Repots
Service Tax other + Service
Tax GTA Inward (based on
the payment made to
Vendor)
Without service Tax number Manual check
Invoice should not post in
system.
Report for Input Service Details can be taken
Distribution from HO to APL from GL line item report
locations
Utilized Service Tax Link Can be available
with ER/1 monthly Excise
Return
Service Tax Register for as Needs to be developed
per Manufacturing Register as per the requirement
Standard
Development
Development
Development
Manual
check
Standard
Standard
Development
Page 171 of 189
Business Blue Print

Req. Ref #
Requirement
028/009
Service tax Credit Register
for Head Office and All
Location
028/010
Item wise breakup of
Service tax credit un
availed
Municipal Tax
029/011
Service type filed will be
given while booking the
purchase
service
Tax
Invoice in the system.
029/012
Service Tax service types

should be available for
selection at the time of PO
and also make the field
mandatory
029/013
ISD invoice should be

printed directly from SAP
029/014
GTA
payment
liability
should be created and paid
in the same month in which
the invoice is booked.
029/015
Option of selecting whether
service
tax
credit
is
available or not of the
service.
029/001
Navi
Mumbai
inward
Material GRN
Calculate 1% Municipal
Cess
on
Gross
Amt
(Material cost + Excise +
Sales Tax = Gross Amt)
Tax Deducted at Source
030/001
Company
level
TDS
transaction should be get in
one click
030/002
Following additional Filed
require in vendor master
Type of Services (multiple
Facility Require)
TDS
Section
(multiple
facility require)
Rate of TDS
(Multiple
Facility require)
030/003
PAN validation (link to
NSDL)
PAGE: 172 of 189
SAP Process
SUPERSEDES: N/A
Status
Development
Development
Service type can be

maintained in Vendor
Master, the same can
be taken in Service tax
register
Not
feasible
while
entering
each
transaction.
Service
type needs to be
maintained in vendor
Master.
Invoice format to be
developed.
Liability will be created
in the same month
when the invoice is
accounted
Option available while
accounting invoice for
selection of service tax
code
Separate tax code will
be
maintained
for
accounting
Municipal
cess
Standard
and
Development
Not feasible
Output
Standard
Standard
Standard
Details can be viewed Standard

from Section code wise
GL report
Withholding
tax Standard
type(section
code
base), Withholding tax
code(rate) options can
be
maintained
in
multiples in Vendor
Master
While confirming the GAP
Vendor
Master,
respective user needs
Page 172 of 189
Business Blue Print

Req. Ref #
Requirement
030/004
030/005
030006
030/007
030/008
030/009
030/010
030/011
PAGE: 173 of 189
SAP Process
SUPERSEDES: N/A
Status
to be validate the PAN

number.
Link to NSDL not
possible
Breakup of GL on which TDS deducted details Standard
TDS is deducted with can
be
available
entries where TDS is through TDS section
deducted with TDS Rate code wise GL report
and Entries where TDS is
not
Deducted
either
because
TDS
is
not
applicable or TDS is not
deducted due to exemption
certificate
Extension .FUV file to be Quarterly return file can Standard
generate as per TDS GL be generated from SAP
(consolidated)
system
Provision for incorporate Provision is available in Standard
TDS-Exemption certificate Vendor Master
details Like Time Period,
TDS
Rate
for
TDS
Applicability.
Control GL of TDS link with All TDS GLs will be Standard
sub ledger as per TDS GL maintained as main GL
Section wise.
only, no sub ledger
concept
If party is not having PAN Can be deducted at Development
no. then the package higher
rate.
should automatically show Development needs to
deduction at a higher rate
be made
Data Direct link to our From Capturing of TDS GAP
current
TDS
Software and upto Quarterly
(Sensys) from SAP
return filing process can
be followed in SAP.
Direct link to Sensys
software not required
Professional fees wherein TDS certificates can be Standard
the
same
vendor
is issued TAN no. wise,
rendering the services in 2 since Each TAN no. is a
different TAN areas we section code in SAP
issue TDS certificate TAN
no-wise
Revised TDS returns facility Total return can be Standard
is required only for those download
rectified entries.
Page 173 of 189
Business Blue Print

PAGE: 174 of 189

SUPERSEDES: N/A
11 Reporting requirements
Report
Report Requirement
Req. Ref #
001/REP
- Purchase
Register
001
Location wise, state wise
and consolidated
001/REP
- Report of invoices not
002
booked location wise and
consolidated
001/REP
- Statement of Accounts
003
(Outstanding reports for
accounts payable bill wise
and party wise summary).
001/REP
- Statement of Accounts
004
(Outstanding reports for
accounts payable location
wise and consolidated).
001/REP
- Details of Purchases &
005
Input Credit available for
VAT & CST returns.
001/REP
- Report on SME unit
006
outstanding payable
001/REP
- Quantitative and value
007
wise report on purchases
during the year location
wise and consolidated.
001/REP
- For Notes to Accounts,
008
Reports
on
import
purchases
into
two
categories
as
Raw
Material & Capital Goods
giving C.I.F. value.
001/REP
- Purchase register party
009
wise, material wise, form
wise, etc
001/REP
- Forms tracking register010
Forms C, F, H, I, E1-E2
001/REP
- Month wise, location wise
011
and
consolidated
purchase summary in
columnar from.
001/REP
- Bifurcation of purchases
012
into Material wise - Raw
Material, Power & Fuel,
Engineering
Goods,
CWIP/Assets, Services,
Expenses
,
Traded
Input Parameters
Status
Company
Code/Plant/Period
ABAP
Development
Company
Code/Plant/Period
Standard
SAP
Company
Code/Profit ABAP
Centre/Vendor/Period
Development
Company
Code/Profit ABAP
Development
Company
Code/Business Standard
Place/Plant/Period/ Material SAP
Type
Company Code/GL/Period
Standard
SAP
Company
Code/Business ABAP
Place/Plant/Period/ Material Development
Type
Company
Code/Plant ABAP
/Material
Type/Material Development
Group/Period
Company
Code/Profit
Centre/Vendor/
Material
Type/ Material Code/ Period
Company Code / Plant /
Period / Form No. / Vendor
Company
Code/Profit
Centre/Vendor/
Material
Type/ Material Code/ Period
ABAP
Development
Valuation Class
ABAP
Development
ABAP
Development
ABAP
Development
Page 174 of 189
Business Blue Print

PAGE: 175 of 189
SUPERSEDES: N/A
Material.
001/REP
- Bifurcation of Purchase Company
Code/Profit ABAP
013
Tax wise Such as Vat Centre/Vendor/
Material Development
4%, 12.50%, 8% etc & Type/ Material Code/ Period
CST 2 % etc
001/REP
- Vendor ageing analysis Company
Code/Profit Standard
014
report
SAP
001/REP
- Balance
confirmation Company code/ Vendor/ ABAP
015
certificate
Key Date
Development
002/REP
- Creditors Analysis for Company Code / Vendor / Standard
001
payment
Period / Profit Centre / Plant SAP
002/REP
- List of advances given Company Code / Vendor / ABAP
002
Vendor-wise, Material Period / Profit Centre / Plant Development
wise,
Location-wise, / Material
Project-wise
002/REP
- List of PDCs given if any, Company Code / House Standard
003
Vendor-wise,
Material- Bank / GL Code / Profit SAP
wise,
Location-wise, Centre / Date range
Project-wise
002/REP
- Bank Book
Company Code / Vendor / Standard
004
Payment terms
SAP
002/REP
- Cheque
register
and Company Code / GL Standard
005
cheque cancel register
Account
/
Vendor
/ SAP
Customer / Date Range
002/REP
- Agreed pay term v/s Company Code / Vendor / ABAP
006
actual pay term report Period / Profit Centre / Plant Development
requirement to be given
002/REP
- Daily
Cash
Flow Company Code / Vendor / ABAP
007
Statement
Period / Profit Centre / Plant Development
/ Material
003/REP
- Summary of Total Salary Company code / Cost ABAP
001
paid Salary Structure- Centre / GL / Date Range
Development
wise Location wise,
state wise, consolidated
003/REP
- Summary
of
Total Company code / Cost ABAP
002
deductions made in salary Centre / GL / Date Range /
Development
Salary Structure-wise
Location wise, state wise
and consolidated
003/REP
- Detail & summary of Company Code / GL / Profit Standard
003
Statutory payments such Centre / Date Range
SAP
as Provident Fund, ESIC,
Gratuity, Profession Tax,
TDS on Salary etc
003/REP
- BDC file to be prepared BDC Format
ABAP
004
for uploading Salary cost
Development
centre and profit centre
wise into various Salary
Structure G.L.s based on
the data given by H.R.
Department.
Page 175 of 189
Business Blue Print

PAGE: 176 of 189
SUPERSEDES: N/A
004/REP
- Cash Book Expenses Company Code / Cash ABAP
001
wise in columnar form Journal / GL / Profit Centre / Development
Location wise with name Date Range
of persons responsible for
Cash Expenses.
004/REP
- List of IOU Person-wise, Company Code / Vendor / Standard
002
Department wise
Recon a/c / SGL Indicator / SAP
Date range
004/REP
- Person wise, Department Company Code / Vendor / Standard
003
wise, location wise & Recon a/c / SGL Indicator / SAP
consolidated
Expenses Date range
detail.
004/REP
- System should not allow Company code / Cash Standard
004
cash payments exceeding Journal
SAP
Rs.20,000 from view point
of Income-Tax.
005/REP
- Sales Register Location Company Code / Sales ABAP
001
wise, state wise and Organization / Plant / Date Development
consolidated
Range
005/REP
- Report of invoices not Company Code / Plant / Standard
002
booked location wise and Sales Orgnization
SAP
consolidated
Company Code / Profit
Centre / Customer / Date
Range
005/REP
- Statement of Accounts Company Code / Profit Standard
003
(Outstanding reports for Centre / Customer / Date SAP
accounts receivable bill Range
wise and party wise
summary).
005/REP
- Statement of Accounts Company Code / Sales ABAP
004
(Outstanding reports for Organization / Plant / Date Development
accounts
receivable Range
location
wise
and
consolidated).
005/REPDetails of Sales & Sales Company Code / Profit Standard
005
VAT & CST returns.
Centre / Plant / Customer / SAP
Date Range
005/REPReport on SME unit Company Code / Sales Standard
006
outstanding receivable
Organization
/
Date SAP
Range /Material Type
005/REPQuantitative and value Company Code / Sales ABAP
007
wise report on sales Organization / Plant / Date Development
during the year location Range
wise, segment wise and
consolidated.
005/REPFor Notes to accounts, Company Code / Plant / Standard
008
Reports on Earnings in Sales Organization
SAP
foreign currency.(CIF and
FOB)
through
Export
sales
Page 176 of 189
Business Blue Print

PAGE: 177 of 189
SUPERSEDES: N/A
005/REPSales register party wise, Company
Code
/ ABAP
009
material wise, form wise, Customer / Material / Development
etc
Material Type
005/REPForms tracking register
Company
Code
/ ABAP
010
Customer / Date Range / Development
Form
005/REP-011 Month wise, location wise Company Code / Plant / ABAP
and consolidated Sales Customer / Material / Development
summary in columnar Material Type
form.
005/REPBifurcation of sales into Company Code / GL ABAP
012
Material wise - Services, Account / Date Range / Development
Expenses and Traded Material
Material
and
own
manufacturing.
005/REPBifurcation of Sales Tax Company Code / Plant / ABAP
013
wise Such as Vat 4%, Customer / Material / Development
12.50%, 8% etc & CST Material Type
2 % etc
005/REPCustomer ageing analysis Company
Code
/ Standard
014
report (Criteria on Customer / Date Range
SAP
payment terms)
005/REPSales should be further Account
Assignment Standard
015
analyzed in Sales API, Groups / Customer Master / SAP
Sales-INT, etc ie segment Material Master
wise
006/REPDetail of Stock Transfer Company code / Plant / Standard
001
Inward & Outward Region / Date range
SAP
Location wise, State-wise
006/REPDetail of Stock Transfer Company code / Plant / Standard
002
Inward & Outward Date range
SAP
Material
wise
Indigenous & Imported

007/REPLedger of Individual Loan Company code /
GL Standard
001
Accounts
Account / Profit centre / SAP
Date range
007/REPStatement of rent paid Company
code /
GL ABAP
002
Vendor-wise-Locationaccount / Business Place / Development
wise,
Location-wise, Section code / Date range
Nature-wise
008/REPExpenses Detail Period Company Code / Profit ABAP
001
Wise, Location-wise, Centre / GL / Date Range
Development
vendor-wise,
Consolidated.
008/REPDetail of Term Loan Company Code / Profit Standard
002
interest paid Bank-wise, Centre / GL / Internal Order SAP
loan-wise & month-wise
/ Date Range
008/REPDetails of FDs FD Wise, Company Code / Profit Standard
003
Due date wise, Bank Wise Centre / GL / Internal Order SAP
/ Date Range
009/REPDebtors
Age-wise Company
Code
/ Standard
Page 177 of 189
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PAGE: 178 of 189
SUPERSEDES: N/A
001
Analysis
Customer / Profit Centre / SAP
Age days / Date Range
009/REPDebtors
Overdue Company
Code
/ Standard
002
Outstanding
Customer / Profit Centre / SAP
Age days / Date Range
009/REPBank wise Detail of Bills Company Code / GL / Standard
003
Discounted Breakup- Vendor / Date Range
SAP
Vendor-wise
(Reconciliation)
009/REPReport Showing details of Company code / House ABAP
004
packing credit facilities & Bank / Date Range
Development
its utilization.
010/REPDebit Note & Credit Note Company Code / Plant / ABAP
001
Register Location Profit Centre / Vendor / Development
wise, Tax-wise, Purchase Customer
&
Sale
Type
wise,
Material Wise, Vendor /
Customer wise.
011/REP-001 Daily
Reconciliation Company
code /
GL Standard
statement
account / Date range
SAP
012/REPDEPB & Advance License Company
code /
GL Standard
001
register
account / Date range
SAP
013/REPLocation
wise
Trial Company Code / Profit Standard
001
Balance and Consolidated Centre / PC Group / Date SAP
Range / GL
013/REPLocation wise Profit & Company Code / Profit Standard
002
Loss
Account
and Centre / PC Group / Date SAP
Consolidated
Range / GL
013/REPLocation wise Balance Company Code / Profit Standard
003
Sheet and Consolidated
Centre / PC Group / Date SAP
Range / GL
013/REPLocation wise Schedules Company Code / Profit Standard
004
and Consolidated
Centre / PC Group / Date SAP
Range / GL
013/REPLocation wise Fixed Asset Company Code / Profit Standard
005
Schedule
and Centre / PC Group / Date SAP
Consolidated
Range / GL
013/REPSales
made
from Company Code / Profit ABAP
006
warehouses should reflect Centre / PC Group / Date Development
in the profit & loss account Range / GL
of the respective location
and Consolidated
013/REPVirtual Plants to be Plants
Standard
007
created for Bonded Ports
SAP
015/REPReport on Expenditure in Company Code / GL Standard
001
Foreign currency.
Account / Profit Centre / SAP
Date Range
015/REPReport on Earnings in Company Code / Profit Standard
002
Foreign currency.
Centre / Date Range
SAP
016/REPDetail Foreign exchange Company Code / GL Standard
001
revalued report
Account
SAP
Page 178 of 189
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PAGE: 179 of 189
SUPERSEDES: N/A
017/REPCustomer Master report Company Code / Sales Standard
001
should be available giving Organization / Date Range
SAP
requisite
details
from
Sales Tax perspective.
017/REPThere should be a report Company Code / Customer Standard
002
which tells the number of Code / Date Range
SAP
customer created during
the given period.
017/REPCustomer Trial Balance Company Code / Profit ABAP
003
should be available at centre / Customer / Date Development
Reconciliation account & Range
Plant level.
018/REPVendor Master report Company Code / Vendor / Standard
001
should be available giving CIN Details
SAP
requisite
details
from
Sales Tax perspective.
018/REPThere should be a report Company
Standard
002
which tells the number of Code / Vendor
/ Date SAP
vendor created during the Range
/
Purchase
given period.
Organization
018/REPVendor
Trial
Balance Company Code / Vendor / ABAP
003
should be available at GL / Date Range
Development
Reconciliation account &
Plant level.
019/REPThere should be a report GL Account No. / Changed Standard
001
which tells the number of from date / Changed to date SAP
GL and Bank masters / Company Code
created during the given
period.
020/REPFixed
Asset
register Company Code/Plant/Asset Standard
001
needs to be available with Class/Cost Centre/Location SAP
tracing of individual asset
wrt Asset no. for physical
verification of fixed assets
as per CARO requirement
020/REPThere should be a report Company Code/Plant/Asset Standard
002
which tells the number of Class/Cost Centre/Location SAP
asset masters created
during the given period.
020/REPSchedule of Fixed Assets Company Code/Plant/Asset Standard
003
i.e.
Gross
Block
, Class/Cost Centre/Location SAP
Additions, deletions, Net
Block and Depreciation as
per Schedule VI of
Companies Act should be
made available
021/REPFixed
Asset
Register Company
Code/Asset Standard
001
should be available giving Class/Plant/Cost
Centre/ SAP
the requisite information Date Range
as per CARO requirement
ie plant, location, cost
Page 179 of 189
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PAGE: 180 of 189
SUPERSEDES: N/A
centre,
asset
class,
asset/equipment
no,
acquired,
sold/discard,
transfer, asset value.
021/REPThere should be proper Company
Code/Asset Standard
002
Depreciation
register Class/Plant/Cost
Centre/ SAP
along
with
future Date Range
depreciation
021/REPThere should be Budget Company
Code/Asset Standard
003
control/ balance register Class/Plant/Cost
Centre/ SAP
for internal order
Date Range
021/REPThere should be Capital Company
Code/Asset Standard
004
Commitment
Register- Class/Plant/Cost
Centre/ SAP
Capital Pos needs to be Date Range
identified
021/REPFixed Asset Schedule as Company
Code/Asset Standard
005
per Schedule VI of the Class/Plant/Cost
Centre/ SAP
Act,1956 along with CWIP Date Range
details asset class wise.
021/REPCWIP pending asset class Company
Code/Asset Standard
006
wise for capitalization Class/Plant/Cost
Centre/ SAP
detail report required
Date Range
Code/Asset Standard
001
Asset Sale or discard Class/Plant/Cost
Centre/ SAP
Register which can be Date Range
viewed consolidated (cost
centre wise, location wise,
asset wise, class wise,
value wise, etc)
Code/Asset Standard
002
Asset Sale Register which Class/Plant/Cost
Centre/ SAP
can be viewed plant wise Date Range
(cost centre wise, location
wise, asset wise, class
wise,
value
wise,
customer wise, etc)
022/REPThere should be during Company
Code/Asset Standard
003
the year asset sale or Class/Plant/Cost
Centre/ SAP
discard register
Date Range
022/REPThere should be profit or Company
Code/Asset Standard
004
loss register on sale of Class/Plant/Cost
Centre/ SAP
asset
Date Range
022/REPAsset wise details for Company
Code/Asset Standard
005
Income Tax requirement Class/Plant/Cost
Centre/ SAP
like
purchase,
sales, Date Range
depreciation etc.
Code/Asset Standard
001
Asset Transfer Register Class/Plant/Cost
Centre/ SAP
which can be viewed Date Range
consolidated (cost centre
wise, location wise, asset
Page 180 of 189
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PAGE: 181 of 189
SUPERSEDES: N/A
wise, class wise, value
wise, etc)
Code/Asset Standard
002
Asset Transfer Register Class/Plant/Cost
Centre/ SAP
which can be viewed plant Date Range
wise (cost centre wise,
location wise, asset wise,
class wise, value wise,
etc)
023/REPThere should be during Company
Code/Asset Standard
003
the year asset transfer Class/Plant/Cost
Centre/ SAP
only register/ report
Date Range
Code/Asset Standard
001
Asset
Depreciation Class/Plant/Cost
Centre/ SAP
viewed consolidated (cost
value wise, etc)
Code/Asset Standard
002
Asset
Depreciation Class/Plant/Cost
Centre/ SAP
viewed plant wise (cost
value wise, etc)
024/REPThere should be for the Company
Code/Asset Standard
003
year asset depreciation Class/Plant/Cost
Centre/ SAP
register
Date Range
024/REPThere should be asset Company
Code/Asset Standard
005
register which can give Class/Plant/Cost
Centre/ SAP
the details of assets which Date Range
are fully depreciated
024/REPThere should be asset Company
Code/Asset Standard
006
register which gives the Class/Plant/Cost
Centre/ SAP
details of low value assets Date Range
which
are
fully
depreciated (less than
Rs.5000/-)
024/REPImmovable Assets like Company
Code/Asset Standard
007
F&F (partitions, fall ceiling Class/Plant/Cost
Centre/ SAP
etc.) created on leased Date Range
property
should
be
depreciated over a period
of lease or as per
companies policy
025/REPWe should know, how Company
Code/Project Standard
001
much cost incurred for No./WBS
Element/Cost SAP
every Project, activity wise Centre
along with the Budget.
026/REPPlant level Register for Company
Code/Excise Standard
Page 181 of 189
Business Blue Print

PAGE: 182 of 189
SUPERSEDES: N/A
001
RG23A Part II, RG23C Group/Date Range
SAP
part II (refer Excel file
Final Repot Format, Sheet
Excise duty-Purchase)
026/REPPlant level ER-1 (Refer Company
002
Excel file Final Report Group/Date Range
SAP
Format, Excise duty-Sale)
026/REPPlant level ER-4 (Annual Company
Code/Excise ABAP
003
Financial / production / Group/Date Range
Development
consumption / dispatch
information) due 30th Oct
for previous FY
026/REPPlant level ER-5 (major Company
Code/Excise ABAP
004
inputs norms along with Group/Date Range
Development
co-efficient) due date 30th
April for current FY.
026/REPPlant
level
ER-6 Company
Code/Excise ABAP
005
(production
and Group/Date Range
Development
consumption) monthly
026/REPPlant level ER-7 (Annual Company
Code/Excise ABAP
006
Plant installed capacity Group/Date Range
Development
statement) due date 30th
April for current FY.
026/REPPlant level RG-1 stock Company
007
register (Refer Excel file Group/Date Range
SAP
Final
Report
Format,
sheet Quantitative Details)
026/REPExcise refund MIS
Company
008
Group/Date Range
SAP
026/REPMIS
Report
ABAP Company
Code/Excise ABAP
009
Development
Group/Date Range
Development
026/REPDispatch Report
Company
010
Excise GRN Reports
Group/Date Range
SAP
026/REP-011 Plant level Register for Company
PLA
Group/Date Range
SAP
Plant level Register for Company
Code/Excise ABAP
Service Tax utilized
Group/Date Range
Development
026/REPRegister for Job work In
Company
012
Group/Date Range
SAP
Register for Job work out
Company
Group/Date Range
SAP
026/REPReport as per section Company
Code/Excise ABAP
013
145A of income act 1961. Group/Date Range
Development
026/REPQuarterly
Dealers Company
Code/Excise ABAP
014
Returns.
Group/Date Range
Development
026/REQCenvat Credit Register for Company
015
Head Office and All Group/Date Range
SAP
Location
027/REP/001 All plant wise, Location Company
ABAP
wise Purchase Register Code/Plant/Vendor/Material/ Development
(Refer Excel file final Material Type/Date Range
Page 182 of 189
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PAGE: 183 of 189
SUPERSEDES: N/A
Report Format, Sheet
Purchase)
027/REP/002 All plant wise, Location Company
ABAP
wise
Sales
Register Code/Plant/Vendor/
Development
(Refer Excel file final Material/Material Type/Date
Report Format, Sheet Range
Sales)
027/REP/003 Set off Value (before Company
Standard
Calculate retention)
Code/Plant/Vendor/
SAP
Material/Material Type/Date
Range
027/REP/004 Reports For (Refer Excel
file final Report Format,
Sheet Sal C Form ,F Form
,H Form & E1-E2),
C Forms (OMS Sales)
(2%)
Company
Code/Plant/ ABAP
F Forms
(OMS Stock
Vendor/Material/Material
Development
Transfer)
Type/Date Range
H Forms
(Deemed
Export)
I Forms (SEZ unit) (Zero
Sales Tax)
E1-E2 Forms (Goods In
Transit Sales)
027/REP/004 Report
for
Statutory Company Code/ Plant / ABAP
Forms (Refer Excel file Vendor / Material
Development
final Report Format, Sheet
Pur C form, F form & H
form)
Issuing C forms (OMS
Purchase Every QTR
Require Base is Bill date)
Issuing F Forms (OMS
stock Transfer-Purchase)
027/REP/005 MIS Reports (on base on Company
Standard
GL Code)
Code/Plant/Vendor/Material/ SAP
Material Type/Date Range
027/REP/006 Tracking of Declaration Company
ABAP
forms
Code/Plant/Vendor/Material/ Development
027/REP/007 Work Contract Register Company
ABAP
(Refer Excel file final Code/Plant/Vendor/Material/ Development
Report Format, Sheet Material Type/Date Range
Purchase WCT)
027/REP/008 State wise balance sheet Company
Standard
Sales Tax point of View.
Code/Plant/Vendor/Material/
027/REP/009 Form 704 Annexure D Company
ABAP
(WCT Details)
Code/Plant/Vendor/Material/ Development
Page 183 of 189
Business Blue Print

PAGE: 184 of 189
SUPERSEDES: N/A
027/REP/010 Form 704 Annexure H Company
ABAP
(H form not Received Code/Plant/Vendor/Material/ Development
Details)
027/REP/011 Form 704 Annexure I Company
ABAP
(C form not Received Code/Plant/Vendor/Material/ Development
Details)
027/REP/012 Form 704 Annexure J Company
ABAP
Sec I (Purchase Details Code/Plant/Vendor/Material/ Development
on basis of TIN Number)
ABAP
Sec II (Sales Details As Code/Plant/Vendor/Material/ Development
per TIN Number)
ABAP
Sec III (Debit and Credit Code/Plant/Vendor/Material/ Development
Note)
027/REP/015 Customer wise Sales Company
Standard
Report
Code/Plant/Vendor/
SAP
Material/ Material Type/Date
Range
027/REP/016 As per State wise Sales
Register
As
per
State
wise
Company
purchase Register
ABAP
Code/Plant/Vendor/Material/
Development
As per State wise plant
wise Sales Register
As per State wise plant
wise Purchase Register
028/REP/001 Company level Service Company Code/Plant/Profit ABAP
Tax Report on basis of Centre
Development
Vendor payment (in case
of only Service tax
applicable) : In Case of
Others (Refer Excel file
final Report Format, Sheet
Service Tax others) In
case of GTA (Refer Excel
file final Report Format,
Sheet Service Tax /GTA)
028/REP/002 Location wise Service Tax Company Code/Plant/Profit ABAP
Report:
Centre
Development
028/REP/003 Service
Tax
Credit Company Code/Plant/Profit
document list with Details Centre
028/REP/004 Register of pending (non- Company Code/Plant/Profit Standard
payment of Vendor) in Centre
SAP
case Service Tax
028/REP/005 Register of non transfer Company Code/Plant/Profit ABAP
Cenvat
Credit
(after Centre
Development
making Vendor Payment)
028/REP/006 Report
of
Service Company Code/Plant/Profit ABAP
Tax/Others & Inward GTA Centre
Development
(after
transferred
to
Page 184 of 189
Business Blue Print

PAGE: 185 of 189
SUPERSEDES: N/A
Service Tax Recoverable
GL in RG Register) Refer
Excel file final Report
Format, Sheet Service
Tax credit)
028/REP/007 Service Type wise Report Company Code/Plant/Profit ABAP
Centre
Development
028/REP/008 Non-transfer Services Tax Company Code/Plant/Profit Standard
Details
Centre
SAP
028/REP/009 Location
wise
non- Company Code/Plant/Profit Standard
Transfer
Service
Tax Centre
SAP
Repot
028/REP/010 Report for not used Company Code/Plant/Profit Standard
Service type during the Centre
SAP
Booking
029/REP/001 Report for Municipal Tax Company Code / GL ABAP
on basis of GRN
Account / Date Range
Development
030/REP/001 Plant wise TDS and TCS Company code/Plant/Profit Standard
Payment Details (Refer Centre/GL Account
SAP
Final Report format. excel
Sheet TDS)
030/REP/002 Plant wise TDS and TCS Company code/Plant/Profit Standard
Summary on Basis of Centre/GL Account
SAP
TDS Section and GL
Code Refer Final Report
format. excel Sheet TDS)
030/REP/003 TAN Number wise TDS Company
Code/Vendor Standard
and TCS Reports Refer Master/Profit Centre
SAP
Final Report format. excel
Sheet TDS)
030/REP/004 Party wise TDS and TCS Company
Code/Vendor Standard
Report Refer Final Report Master/Plant
SAP
format. excel Sheet TDS)
030/REP/005 Detail Report as per Company
code/Bus. ABAP
format attached and form Place/Section Code
Development
16A and 16
030/REP/006 MIS Report as per TDS Company
Code/GL Standard
Section wise.
Account/Section Code
SAP
030/REP/007 Detail
Report
for Company
Code/GL Standard
Company
and
No Account/Section Code
SAP
Company
with
TDS
Section wise
12 Output requirements
Output
Req. Ref #
002/001
Output Requirement
cheque printing with payment
advice
Status
ABAP
Development
Page 185 of 189
Business Blue Print

021/001
Asset
Capitalization
document (document print)
022/001
Asset sale document
023/001
Asset transfer document
024/001
026/003
Asset
Depreciation
document
Getting complete details of
RG-A & C
Getting Complete details of
Sales ER-1
As per ER-1
026/004
As per ER-4
026/005
As per ER-5
026/006
As per ER-6
026/007
As per ER-7
026/008
As per RG-1
026/009
MIS
027/001
Purchase Register
027/002
Purchase Tax Summary on

basis of Purchase Register
Sales Register
026/001
026/002
027/003
028/001
028/002
Sales Tax Summary on basis

Sales Register
List of C Forms, F Forms,
and H Forms etc
Final Summary for payment
030/001
Transfer entry to Service tax

utilizable Credit a/c
Non-payment Vendor list
related to Service Tax
Register for Service Tax
(basis of payment) (refer
Final Report Format. excel
File)
TDS Details for Payment
030/002
GL wise Summary
028/003
028/004
PAGE: 186 of 189

SUPERSEDES: N/A
ABAP
Development
ABAP
Development
ABAP
Development
ABAP
Development
Standard
SAP
Standard
SAP
ABAP
Development
ABAP
Development
ABAP
Development
ABAP
Development
ABAP
Development
Standard
SAP
ABAP
Development
ABAP
Development
ABAP
Development
ABAP
Development
ABAP
Development
ABAP
Development
Standard
SAP
Standard
SAP
Standard
SAP
ABAP
Development
Standard
SAP
Standard
SAP
Page 186 of 189
Business Blue Print

030/003
Tan Number wise summary
030/004
Party wise TDS Details
030/005
Final Form 16A and 16
PAGE: 187 of 189

SUPERSEDES: N/A
Standard
SAP
Standard
SAP
Standard
SAP
13 Interface / Enhancement Requirement

Output
Req. Ref #
001
002
003
004
005
006
007
008
Output Requirement
Status
Pay Roll Posting
BDC Format
RTGS Payment interface

with bank
Validation for user master
from Custom table
Check no. updation in TDS
certificate
Special
GL
functionality
option in Cash Journal for
advance payments
Valuation type price updation
for VPRS condition
Bank
statement
upload
format (in case of manual
bank statement)
Service tax amount transfer
for cleared line items
Format
Table development
User Exit
User Exit
Routine
BDC Format
BDC
ABAP
Development
ABAP
Enhancement
ABAP
Development
ABAP
Enhancement
ABAP
Enhancement
ABAP
Enhancement
ABAP
Development
ABAP
Development
Page 187 of 189
Business Blue Print

PAGE: 188 of 189

SUPERSEDES: N/A
14 Authorizations
Authorization matrix will be prepared as per the Arch role matrix.
15 File Conversion Considerations

Cutover data for the following will have to be captured as part of data migration. The formats
for the same will be finalized during the realization phase. Data will be uploaded using
LSMW data migration tool.
GL master records, Customer masters, Vendor masters and Asset masters would be
uploaded through standard SAP functionality LSMW
GL balances & Asset balances would be uploaded through standard SAP

functionality LSMW.
FI-GL, FI-AR & FI-AP Open Items loaded through LSMW would have Cost Object
assignments like Cost Centre, Internal Order, Profit Centre & Profitability Segment
attached to it.
Cost Centre, Profit Centre Master Data would be uploaded through standard SAP
functionality LSMW.
Internal Orders would be created manually in the system.
CO-PA Characteristics and Value Fields would be manually defined.
Inventory of Raw Material, Packing Material and Consumable valuated at Moving

Average Price would be uploaded using LSMW programs.
Inventory of Semi Finished & Finished Goods would be uploaded at the legacy stock
value.
Page 188 of 189
Business Blue Print

PAGE: 189 of 189

SUPERSEDES: N/A
History of Change
Date
Version
Section
Reason for Revision
Number
Page 189 of 189

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Project: ARCHIT

ARCH Pharmalabs Limited

Sreenivasa Rao Bollepalli

Business Blue Print

PAGE: Page 2 of 189

30th September, 2010

Bhushan P Arch Pharmalabs Limited

Zensar Technologies Limited

Business Blue Print

PAGE: Page 3 of 189

Zensar Technologies Limited

Business Blue Print

PAGE: Page 4 of 189

Financial Accounting Key Components.....................................................8

Credit Control Area...........................................................................................18

Financial Management Area..............................................................................18

Planning Plant and Maintenance Plant..............................................................19

Fiscal Year Variant.............................................................................................22

Field status group............................................................................................. 26

Real Time Integration CO with FI.......................................................................28

4.11 New GL with Document Splitting......................................................................30

Retained Earnings Account...............................................................................34

Zensar Technologies Limited

Business Blue Print

PAGE: Page 5 of 189

Raw / Packing and Lab Chemicals........................................................................... 62

Controlling Master Data - Transaction / Activity Chart................................65

Business Processes Financial Accounting.............................................67

Fast Entry Screens......................................................................................... 73

Month end closing.............................................................................................. 76

Zensar Technologies Limited

Business Blue Print

PAGE: Page 6 of 189

Direct Imports to Manufacturing Plant.......................................................................90

Invoice for Delivery Costs..............................................................................92

Monthly end Closing........................................................................................... 98

Monthly end Closing......................................................................................... 107

Assets under Construction with Internal Order............................................115

Asset Transfers............................................................................................ 117

Asset Transfer Location transfer (within the Plant)..................................................117

Leased Assets............................................................................................. 118

Asset Retirement with Revenue - Asset Sale...........................................................116

Assets taken on Lease......................................................................................... 118

Calculation of Depreciation................................................................................... 119

6.4.8 Revaluation of Assets..................................................................................121

Monthly end Closing......................................................................................... 122

Zensar Technologies Limited

Business Blue Print

PAGE: Page 7 of 189

Asset Accounting Process Steps..............................................................124

Cash Journal................................................................................................ 133

Business Transactions......................................................................................... 136

Official Withholding tax key................................................................................... 145

Forms Capturing.......................................................................................... 149

Interface / Enhancement Requirement..................................................189