AML Business BluePrint - Finance and Controlling 1.1

P
ALKALI Metals SAP Implementation

Business Blueprint – Finance
Presented to:
Sankar Rao
G M (Finance)
April 1, 2019
Confidential
ALKALI Metals Finance Business Scope and Blueprint
Table of contents
1. List of Business Processes________________________________________________6
2. Organization structure_____________________________________________________7
3. Business Process Scenario – AMFI01 - Master Data_________________________7
3.1 General Ledger Master Data:____________________________________________________8
3.2 Vendor Master Data:___________________________________________________________11
3.3 Customer Master Data:________________________________________________________11
3.4 Bank Master Data:_____________________________________________________________12
3.5 Fixed Asset Master Data:______________________________________________________12
3.6 Tax Master Data:______________________________________________________________12
3.7 Cost Center Master Data:______________________________________________________13
3.8 Profit Center Master Data:_____________________________________________________13
3.9 Activity Type:__________________________________________________________________13
4. Business Process Scenario – AMFI02 - Cash Accounting___________________13
4.1 Brief Business Process Description:___________________________________________13
4.2 Business Process Flow Diagram:______________________________________________14
4.3 Solution Feasibility Analysis in SAP:___________________________________________15
5. Business Process Scenario – AMFI03 - Bank Accounting___________________15
5.1 Brief Business Process Description____________________________________________15
5.2 Business Process Flow Diagram :______________________________________________16
5.3 Solution Feasibility Analysis in SAP____________________________________________17
6. Business Process Scenario – AMFI04 - Collection Process_________________17
6.3 Solution Feasibility Analysis in SAP_______________________________________________20
6.4 Business Process Flow Diagram:__________________________________________________21
Doc Ver No: 1.0 Doc ID: FICO – Business Blue Print Page 1 of 41
Effective Date: 23 – FEB – 2010 Classification – Internal

____________________________________________________________________________________21
7. Business Process Scenario – AMFI05 - Payment Process___________________21
7.3 Solution Feasibility Analysis in SAP____________________________________________23
8. Business Process Scenario – AMFI06 - Letter of Credit/Bank Guarantees____26
9. Business Process Scenario – AMFI07 - Taxes______________________________27
9.2 Solution Feasibility Analysis in SAP____________________________________________________28
9.3 Business Process Flow Diagram : (Sales/Excise)________________________________29
9.4 Business Process Flow Diagram : (TDS)________________________________________30
10. Business Process Scenario – AMFI08 - Fixed Asset Management____________30

____________31

11. Business Process Scenario – AMFI09 - Cost Center Accounting____________32
12. Business Process Scenario – AMFI10 - Profit Center Accounting____________34
12.1 Brief Business Process Description :___________________________________________34
13. Business Process Scenario – AMFI11 - Period End Activities________________35

1. List of Business Processes
Business Description InScope Comments

Process Code (Yes/No)
AMORFI01 Organization Structure Yes OK
AMMDFI01 General Ledger Master Data Yes Ok
AMMDFI02 Bank Master Data Yes OK
AMMDFI03 Asset Master Yes oK
AMMDFI04 Cost Element Master Data Yes oK
AMMDFI05 Cost Centres Yes oK
AMMDFI06 Profit Centres Yes K
AMMDFI07 Customers – FI Yes OK
AMMDFI08 Vendors – FI Yes OK
AMMDFI09 Employee as Vendor Yes OK
AMBPFI01 Maintain Exchange Rates Yes oK
AMBPFI02 Service Invoice Yes K
AMBPFI03 Purchase Invoice Posting Yes K
AMBPFI04 Service Credit / Debit Memo Yes K
AMBPFI05 Advances to Vendors Yes K
AMBPFI06 Outgoing Payments Yes K
AMBPFI07 Check/Payment Printing Process Yes K
AMBPFI08 Travel Expenditure Postings Yes K

AMBPFI09 Advances from Customers Yes K
AMBPFI10 Check Billing Document Yes K
AMBPFI11 Incoming Payments Yes K
AMBPFI12 Cash Receipts process Yes K
AMBPFI13 Cash Payments process Yes K
AMBPFI14 Letter of Credits from Customers Yes

Process
AMBPFI15 Bill of Exchange from Customers No

process
AMBPFI16 Letter of Credits to Vendors process Yes
AMBPFI17 Bill of Exchange to Vendors process No
AMBPFI18 Bank Guarantees to Vendors Yes

Process
AMBPFI19 Normal Accounting document Yes K

reversal
AMBPFI20 Clearing Document Reversal Yes K
AMBPFI21 Define Condition Records Yes K
AMBPFI22 Asset Acquisition Process Yes K
AMBPFI23 Asset Transfer Process Yes K
AMBPFI24 Asset Retirement Process Yes K
AMBPFI25 CWIP Asset Process Yes K
AMBPFI26 Depreciation Run Yes K
AMBPFI27 Recurring Postings Yes K
AMBPFI28 Accrual/Deferral Posting Yes K

AMBPFI29 Foreign Currency revaluation Yes K
AMBPFI30 Interest Calculation on GL's No
AMBPFI31 Interest Calculation on Customers No
AMBPFI32 Interest Calculation on Vendors No
AMBPFI33 Month End Adjustment Entries Yes K

Posting
AMBPFI34 Bank Reconciliation Statement Yes K

process
AMBPFI35 Bad Debts Provision for Customers Yes K
AMBPFI36 Dunning Letters Yes K
AMBPFI37 Tax Payments (CST, VAT, Service, Yes K

PLA)
AMBPFI38 With Holding Tax Process Yes K
AMBPFI39 Costing Run Yes
AMBPFI40 Repost Cost form One cost center Yes K

to another cost center
AMBPFI41 Repost value from one profit center Yes K

to another profit center
AMBPFI42 Order settlement Yes K
AMBPFI43 Accrued posting(bonus) Yes K
AMBPFI44 Assessment run Yes K
AMBPFI45 Distribution run Yes
AMBPFI46 Costing variance calculation Yes
AMBPFI47 Cost element planning Yes K
AMBPFI48 Year End Activities: G/L Balances Yes K

Carry forward
AMBPFI49 Year End Activities: Yes K

Customer/Vendor balances carry
forward
AMBPFI50 Profit Centre balances carry Yes K

forward
AMBPFI51 Asset year end activities Yes K

2. Organization structure – AMORFI01
3. Business Process Scenario – AMMDFI01 - Master Data
A master record contains information relating to an individual object, which remains unchanged
for a long period of time. Basically, Master data consists of all the details which would be easier
to facilitate identify the best possible source.
Finance module in SAP has the following Master Data namely,
a. General Ledger Master Data
b. Vendor Master Data
c. Customer Master Data
d. Bank Master Data

e. Fixed Asset Master Data
f. Tax Master Data
g. Cost Center Master Data (Controlling module)
h. Profit Center Master Data (Controlling module)
i. Activity Types (Controlling module)
3.1 General Ledger Master Data:

General Ledgers are the basic for posting any transaction in Finance. In order to have General
Ledgers, firstly these are to be grouped under Account group which in turn linked to Chart of
Accounts.
Chart of Accounts & Account Group
Chart of Accounts is a grouping of General Ledger (GL) accounts used to post transactions from across
module and FI modules. These can be further used for reporting like Trial Balance, Profit & Loss
account, Balance Sheet etc., The GL accounts that are contained in the Chart of Accounts
can be used by one or more Company codes.
Account Group Description Account Group Account Code – Account Code –

Starting from Ending with
Liabilities LIAB 10000000 19999999
Assets ASST 20000000 29999999
Revenue REVN 30000000 39999999
Expenditure EXPN 40000000 49999999
Initial Balances Upload IBAL 90000000 99999999
The General Ledger master is consisting of different details; the following are the views,
a. Type/Description :
In this, system expects the information relating to the Account Group, Type of General Ledger
along with Description of the Account.

b. Control Data :
Currency of the Account, whether a particular General Ledger is an Open Item Account, the
way of sorting in information etc., are details which the system expects from this view.
c. Create/Bank/Interest :
The important fields which to be appeared at the time of using a particular General Ledger,
whether a particular Account is an automatic account etc., are the details which has to be
entered under this view.
3.2 Vendor Master Data:

Vendor master is the centrally maintained data, unique for the company code, purchase
organization and account group. The Master data is one time activity for a vendor to have
complete details which will be helpful in purchase and invoice clearance process. The number for
maintaining Vendor Master Data can be an internal number range or external number range.
The vendor master is consisting of different details in the different views, the following are the
views.
a. General Data :
In this view, system expects the data relating to the complete Address of the Vendor along
with Bank details and the Contact person details.
b. Tax :
Following are the details have to mention for a particular vendor, so that whenever we do a
transaction system takes the relevant data automatically. This data includes, the data relating
to Excise details, Sales Tax/Service Tax No. and Withholding Tax (TDS).
c. Company Code Data :
All vendor accounts are considered as Sub ledgers in SAP. These will be linked to the
General Ledger through an Account called Reconciliation Account with the help of this we can
come to know whether the Vendor is a Domestic or Foreign. The payment terms applicable
to the respective vendor also to be mentioned in this area.
d. Purchase Organization Data :
This data is necessary only when the Materials are being procured from this vendor. Order
Currency, Inco terms, Schema group (Tax procedure), Partner Functions are covered under
this head of Data.
3.3 Customer Master Data:

Customer master is the centrally maintained data covering both Sales and Finance details. The
number for maintained Customer Master Data can be an internal number range or external
number range
The customer master is consisting of different details in the different views, which are as follows
General View:
In this view, system expects the data relating to the complete Address of the Customer along with
Bank details and the Contact person details.

Company Code View:
All customer accounts are considered as Sub ledgers in SAP. These will be linked to the General
Ledger through an Account called Reconciliation Account with the help of this we can come to
know whether the Customer is a Domestic or Foreign. The payment terms applicable to the
respective customer also to be mentioned in this area along with the Withholding Tax (TDS) if any
Sales Area View:
Under this, information relating to shipping conditions, pricing procedure to this customer, Inco
terms, along with Account Assignment Group will be mentioned. Account Assignment Group
helps in finding the General Ledger when the Sales process completes in SAP.
3.4 Bank Master Data:

The Bank Master Data will establish the link between the Bank Account number with the General
Ledger in SAP. There are two unique codes which tells the identity of the respective Bank
Account which are House Bank and Account ID. The bank data is determined using House Bank
key and Account ID together with the house bank uniquely defines a bank account. The
combination of these will help in running the Bank Reconciliation Statement.
This master data requires information in relation to the address of the Bank and its Account
number.
3.5 Fixed Asset Master Data:

Asset accounting is a subsidiary ledger of the general ledger and is used to manage and
document in detail fixed asset transactions. In general ledger accounting, you can update
depreciation and changes to asset balance sheet values in asset accounting. You can also make
various account assignments to cost accounting for these transactions.
A fixed asset is an object, a right, or another item owned by an enterprise that is intended for
long-term use and can be individually identified in the balance sheet. Maintaining fixed assets
involves creating, changing, and displaying asset master records.
The different items of information are structured according to area of use and functions in the
system to make it easier for users to create, maintain, and evaluate master data. Each asset
master record consists of two parts that are described below.
General Master Data:
This part of master data contains general information about the Fixed Asset. The information
includes Name of the Asset, Capitalization date, the plant where it is to be located, cost center
where it is to be located along with Leasing information (if any).
Valuation Parameters:
The main valuation parameters are the start date for ordinary depreciation, which is determined
by the depreciation key and the asset value date of the acquisition posting, the depreciation key,
and the useful life.

3.6 Tax Master Data:

This is an important master data for flowing the Tax information into the SAP system. There are
basically two steps one is Creating Tax Code and the other one is maintaining Condition Records.
While creating the Tax Code, system asks whether a particular Tax code is an Input Tax Code or
Output Tax code and the country in which this is to be created.
Once the Tax Code is created, the Tax rates are to be assigned in Condition Records through,
which in turn is to be assigned to the respective GLs.
When we consider the respective Tax Code, system calculates the tax amount and posts to the
General Ledgers which are assigned in the above.
3.7 Cost Center Master Data:

This Master Data comes under Controlling. Cost Center Accounting is used for controlling
purposes within the organization. It is useful for a source related assignments of costs to the
location in which they occurred. This enables to control costs of individual functional area and
provide decision making data for management.
Will be creating all Cost Centers Master Data in the respective Controlling Area. The information
which requires in this Master Data includes the name of the cost center, address and the Profit
Center where the costs which are captured to flow.
3.8 Profit Center Master Data:

Profit centers represents MIS oriented internal organizational units. Profit Centers are viewed as
the revenue centers within your organization. It is like a separate company within the company.
In SAP Profit Centers defined in controlling area.
The information required in this Master Data includes the name of the Profit Center, Address, and
Validity period along with the hierarchy if any.
3.9 Activity Type:

Activity is the action in the Production process. These are the Cost drivers in the Controlling
area, cost absorption takes place with the help of Activity Types which will be leading to the Cost
of Production.
4. Business Process Scenario – AMFI02 - Cash Accounting
4.1 Brief Business Process Description:

Cash Payments:
Cash Book is maintained in each of the plants separately in the Legacy system to report the daily
Cash balances and all the transactions relating to Receipts & Payments transacted.

Cash Payments are made based on the withdrawal from the respective Bank in each of the plant,
the Accounts executive of the respective will pass an entry in the existing system
4.2 Business Process Flow Diagram:
Accounts Executive Accounts Supervisor

4.3 Solution Feasibility Analysis in SAP:

a. A Cash Journal is to be maintained in the SAP system for each Plant for posting Cash
payments and Cash withdrawals from the Bank
b. Cash Receipts from Customers, Cash Advances from Customers are to be tracked from SAP
system separately.
c. The Cash Journal helps to see the Cash Balance of the plant at any given point of time.

5. Business Process Scenario – AMFI03 - Bank Accounting

5.1 Brief Business Process Description
Bank Transactions:
a. All the receipts from the Customers are received through cheques from each unit. All Units
bank accounts will be reconciled at the end of each month.
b. All the payments to the Vendors are paid through cheques from each unit. Sometimes
payments made thru Unit I on behalf of Unit II all transactions will be reconciled at the end of
the month.
c. All Customer cheques are deposited into the Bank, will be reconciled when the Bank
Reconciliation Statement is executed. Currently the users of AML are preparing the Bank
Reconciliation Statement once in each month in the books of each plant. All Bank charges
and Interest charges debited by the Bank are accounted as on the date of reconciliation.

5.3 Solution Feasibility Analysis in SAP

a. All Bank Accounts are considered as a Master Data in SAP, which are segregated into
Main Account and Sub-ledgers.

b. All Bank transactions are transacted through sub-ledgers and when the Bank
Reconciliation Statement is executed manually, the balances of all sub-ledgers would be
updated in the Main Bank Account.
c. With the help of sub-ledgers, the user would be knowing the pending transactions the
Bank individually.
6. Business Process Scenario – AMFI04 - Collection Process

This scenario describes the entire process sequence of AML accounting and collection process
with a customer. The business process in this includes all steps from invoice to the clearing of a
customer account after payment is received
a. The area of sales of AML includes intra-state, inter-state and Export Sales
b. Sales include Sale of Custom Specific Products, Proprietary Products and Scrap Sales
c. Sales process includes Advances from the Customer, Invoices to the Customers, and
Payment from customers based on Payment terms

d. Sometimes Cheques received from the Customers by way of Advance which will be adjusted
against the respective invoice.
e. Accounts assistant of AML applies the receipt against the invoice for which payment is
received
f. If the payment details are not known, the accounts assistant records an incoming payment
and follows up with the customer to understand the details. Once the details are available,
Accounts assistant matches the receipt against the invoice
g. It is also possible, when there is no exact amount match of the payment against the invoice,
customer is actually making partial amount. If this is the case, the Accounts assistant will
apply the receipt against the invoice as a partial amount
h. If it is not a partial amount, the Accounts Assistant will follow up the Sales, to check whether
there is any credit memo has occurred which has not been updated in the system.
i. The payments received from the Customers are based on the payment terms
j. AML is maintaining the bad debts provision for every six months once. If we get the amount
from customers then we reverse provision entry otherwise we will reduce the amount from
customer in later period. Until AML wants to show the balance separately.
k. Sometimes AML is receiving Letter of Credits from customer and immediately they are
discounting in bank. In due date customer will pay the amount and AML will clear the
customer invoice as well as LC. Until they want to show the balances separately.
l. Late Payments Company is issuing payment reminders to customers.
m. Some times company will sale the products thru commission basis. We need to give the
commission on sales for consignee .On that commission we need to remit the TDS and repay
the amount to Government.

6.2 Business Process Flow Diagram :

a. The list of Suppliers for the required materials should be maintained in the system

b. Customer pays the due amount, In SAP system should clear the open item automatically.
c. The system should consider the taxes proportionately in the case of Returns from Customer
automatically.
d. Bad debts provision purpose we will use special g/l indicator and we will route the value thru
separate g/l account. Whenever they want to clear then at that time they can nullify the
amounts.
e. For commission sales process
f. AML needs Customer Account Group based on Domestic, Foreign & Inter Company.
g. Customer Ageing Analysis Report based on Custom Mould/Proprietary Mould/Plant wise
h. Report on Customer wise open item balances
i. Report on Sales Register

7. Business Process Scenario – AMFI05 - Payment Process

This scenario describes the entire process sequence of AML accounting and payment process
with a vendor. The business process in this includes all steps from invoice to the clearing of a
vendor account after payment is made.
a. The area of purchases of AML includes intra-state, inter-state, and Import purchases
b. Purchases process includes Advances to Vendor, invoices to vendor, and payment to vendor
based on Payment terms.
c. Two types of Advances are using in AML those are Normal Down payments and Capital
work in progress Down payments
d. Purchase of Materials will be done by each unit they have three Units Unit II and Unit III is
purely for export.
e. Sometimes, there will be some difference in value in Invoice when compare to the Purchase
Order. Accounts personnel will send back the Invoice to the Stores Department for changing

the price, in turn the Stores Department will consult the supplier. Director approval is required
for changing the price both in Purchase Order and Invoice if the Supplier doesn’t accept.
f. For any deductions/adjustments suggested by the Purchases Department, a Debit note is

raised.
g. In case of imported material the payment is made in advance vide LC.
h. Cash and Cheque Advances will be given to the Vendor which will be adjusted against the
respective Invoice.
i. Payment to Vendor will be made by each unit separately.
j. Payment to the Vendor is made based on the Payment Terms. The general Payment Terms
are Cash/Cheque payments, 15 days, 30 days, 45 days, 60 days and 90 days. However,
these can be changed at the time of invoice entry.
k. The cheque paid to the vendor against an invoice for which the payment is made, the date of
issuing the cheque will be considered as date of clearing.
l. All purchase of services are generally for service based on requirements but service
purchases also will route thru service purchase order.
m. Withholding tax is deducting on service invoices this tax will deduct at the time of invoice or at
the time of payment which is comes earlier.
n. Work Contract Tax: sometimes AML receive material as well as service from specific parties
then at that time AML will use Work contract tax. Here we will calculate WCT on 70% and
service tax we will calculate on 30%.
7.2 Business Process Flow Diagram :


a. The list of Suppliers for the required materials should be maintained in the system
b. For Advances purpose we will use two separate special g/l accounts one for normal down
payments and another one for CWIP down payments.

c. When we pays the due amount, In SAP system should clear the open item automatically.
d. For Import scenario before receiving the goods we will issue the LC’s to respective suppliers.
When due date comes into picture AML will remit the amount in bank and bank will pay the
amount to that respective party.
e. The system should consider the taxes proportionately in the case of Returns to Vendor
automatically.
f. Withholding tax purpose we will create separate TDS tax codes and we will maintain in
vendor masters and at the time of invoice/payment posting it will deduct the TDS accordingly.
g. Work contract tax purpose we will create one TDS tax code for 70% amount purpose and
30% amount purpose we will create one service tax code. Based on tax codes tax amount
will calculate.
h. AML needs Vendor Account Group based on Domestic, Foreign & Inter Company.
i. Vendor Ageing Analysis Report based on Vendor Mould/Proprietary Mould/Plant wise
j. Report on Vendor wise open item balances
k. Report on Bank Stock statement.


8. Business Process Scenario – AMFI06 - Letter of Credit/Bank Guarantees

a. AML is having two types of letter of credits one is local letter of credits and another one is
foreign letter of credits. Initially bank will give certain limits and based on that we will use for
LC's but each LC we need to give 15% of margin amount and bank will give interest on this
amount and deduct the TDS on this interest and will give one TDS certificate for that
respective amount. If the limits cross then we need to give 100% margin against each LC.
b. Whenever the due date comes into picture then we remit the amount into bank and banker
will pay the amount to respective parties.
c. Bank Guarantees process also same as Letter of credits process.

d. For Letter of credits we will use special g/l indicator functionality we will define two special g/l
indicators for LC’s and one for Bank guarantees.
e. At the time of Issuing LC’s/BG’s we will route thru special g/l indicator along with respective
suppliers.
f. In case of LC/BG charges, manual entry is passed for the amount in the advice given by the
bank.
g. At the time of making payment LC/BG is cleared. We will select vendor invoice and we will
nullify the LC/BG.
h. Changes are carried out in LC/BG on the basis of instructions from supplier. Changes such
as change in due dates can be carried out, but the LC amount cannot be changed.

9. Business Process Scenario – AMFI07 - Taxes

a. Currently all the applicable Taxes like Excise, Customs, VAT, CST, Tax Deducted at Source
(Withholding tax), Service Tax, Additional Taxes etc., are being manually calculated as and
when required.
b. The person responsible for deducting tax at source and collecting tax at source should obtain
tax deduction account number. It is mandatory to deduct TDS on salaries, Interest on
securities, Dividends, Contractors/Sub contractors, Commission, Rent and Profession &
Technical services
c. The transport services rendered by Transporters would come under Service Tax coverage.
The Transport vendor should raise the bill including service tax. The whole amount is
considered as Expenditure, if the invoice contains the Service Tax
d. All monthly, quarterly, half-yearly, and annual returns are being prepared manually and
remitted on the due date.
a. System to calculate all applicable taxes as and when required automatically
b. All forms and returns to be submitted to the statutory authorities are to be generated from
the system itself.

c. System to post all the Tax amounts to the respective General Ledgers automatically in FI
d. All required forms for submission of monthly, quarterly and annually returns are updated
automatically

9.2 Business Process Flow Diagram: (Sales/Excise)
Credit can take only after making the payment; it is purely on payment basis.

9.3 Business Process Flow Diagram: (TDS)
10. Business Process Scenario – AMFI08 - Fixed Asset Management

This scenario describes the process sequence of Fixed Asset Management i.e., Acquisition,
Capitalization, Retirement, Transfer etc.,
a. All Assets are bought by issuing a Purchase Order & the Acquisition is considered as Cost of
Asset
b. All Assets are grouped as per Asset type
c. All purchased Assets will be capitalized on the date when the asset is put to use.
d. Assets built within the organization (capitalized work in progress) will be capitalized on the
date of commencement of commercial production.
e. Two types of Depreciation rates are being followed in calculating depreciation on Assets.
One as per Companies Act and the other as per Income Tax Act
f. The Straight line method (SLM) is using for Companies act and Written down value method
(WDM) is using for Income tax act.
g. Retirement of Fixed Assets, the gain or loss on sale/scrapping of Asset, gain or loss realized
on such transaction would be recorded in Profit or Loss on sale of Asset Account.



a. System to calculate the Depreciation automatically.
b. While settling the CWIP asset it will settle the values to respective assets.
c. System to post to the respective General Ledgers when the Depreciation run is done on
monthly basis
d. While selling/scrapping the asset respective G/L accounts will post automatically.
e. Fixed Asset register should generate from the system
f. Asset Register and analysis can be done by any parameter like Cost Center, Plant, Location,
Business center etc.,
11. Business Process Scenario – AMFI09 - Cost Center Accounting

This scenario describes the expenses of each department known as Cost Centers. Currently,
users are posting all expenses transactions by considering the respective department. Each
plant of AML has set of Departments, which are considered while posting transactions


a. Costs are captured through Cost Center in SAP which will flow into Financial Statement
through the Profit Center.
b. All Expenses are segregated into Direct and Indirect Expenses. Direct Expenses are
captured through Production cost center whereas Indirect Expenses are captured through
Service cost centers
c. System to show the Cost center wise expenses along with Plan and Variance

12. Business Process Scenario – AMFI10 - Profit Center Accounting
12.1 Brief Business Process Description:

AML does not have any process for Responsibility Center Accounting to analyse the Profit or
Loss made by an independent business unit/division
Profit Center Accounting is a powerful tool that evaluates the financial strength and profit or loss
of an individual unit within the Organization. These areas are responsible for their Costs and
Revenues. Profit Center Accounting provides the companies the ability to report profitability on
their various product lines. It is a pooling of the costs data (from Cost Center Accounting) and the
revenues data (from Sales Billing data and manual revenue entries in Finance) combine to
generate the reports on financial position.
Profitability can be measured and the company’s management can make more informed
decisions about resource allocation.

Operating
Expenses &
Revenues
Operating
Expenses

a. Profit Centers are legal entities within the Company.
b. System to provide Plant wise Financial Statements i.e., Profit & Loss account, Balance Sheet
13. Business Process Scenario – AMFI11 - Period End Activities

This would cover the process of monthly/period and annual closing of accounts. The activities of
both period end and year end are same. For closing posting periods a series of programs are to be run,
which are explained
a. Revalue Foreign Currencies
b. Reverse Documents
c. Financial Statements i.e., Profit & Loss account and Balance Sheet
d. Open and Close posting periods
e. Distribute capital expenses Capital Work in Progress(AUC) Assets
f. Settlement of AUC
g. Automatic GR/IR clearing

h. Adjustment entries
i. Running Depreciation
j. Bank Reconciliation Statement
k. Running of Standard Cost Estimation
l. Statutory Reports
The following are activities which are to take at the end of each fiscal year. Apart from the above
mentioned month end activities, the following are the additionals
a. Carrying forward GL Balances
b. Carry forward Accounts Payable & Accounts Receivable Balances
c. Opening of new Fiscal year in Finance
d. Assets Fiscal Year change
e. Schedule VI reports

FI Exclusions List:
Sr. No Exclusion Remarks
1. Cash Voucher- Email based Approval Procedure for Cash Payments with entry by Clerk
notifications and Workflow. and approval, post by Manager.
2. JV Posting - Email based

JV entry will be done by Clerk and approval, Post by Manager.
notifications and Workflow
Vendor Payments - Email

3. Vendor Payment Voucher will be created by Clerk and
based notifications and
approval, Post by Manager,
Workflow
FI – List of Customized Reports
Sr. No Report Name Description Category
1. Trial Balance Format available in SAP but the Category II

layout Still to be decided by Jyoti
Income Statement with Category III

2. Not Available in Std SAP but
Variance and
required by Jyoti
Percentages
Vendor Ageing Analysis Not a std SAP report. Vendor aging Category II
3.
based on Material Type analysis in SAP shows vendor
payables on a timescale
Customer Ageing Not a std SAP report. Vendor aging Category II

4.
Analysis based on analysis in SAP shows Customer
Division payables on a timescale
5. Ratios Not Available in Std SAP but Category III

required by Jyoti
Tracking of Post Dated Not Available in Std SAP . Not Category III
6.
Cheques Vendor-wise decided by Jyoti so far whether
required or not
7. Insurance details each Format available in SAP but the Category II

Asset layout Still to be decided by Jyoti

List of Customized Print Forms:
Sr. No Form Name Category
1 Voucher Printing Category III
2 Cheque Printing Category I

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P

ALKALI Metals SAP Implementation

Effective Date: 23 – FEB – 2010 Classification – Internal

Effective Date: 23 – FEB – 2010 Classification – Internal

Effective Date: 23 – FEB – 2010 Classification – Internal

Effective Date: 23 – FEB – 2010 Classification – Internal

1. List of Business Processes

Business Description InScope Comments

AMORFI01 Organization Structure Yes OK

AMMDFI01 General Ledger Master Data Yes Ok

AMMDFI02 Bank Master Data Yes OK

AMMDFI03 Asset Master Yes oK

AMMDFI04 Cost Element Master Data Yes oK

AMMDFI05 Cost Centres Yes oK

AMMDFI06 Profit Centres Yes K

AMMDFI07 Customers – FI Yes OK

AMMDFI08 Vendors – FI Yes OK

AMMDFI09 Employee as Vendor Yes OK

AMBPFI01 Maintain Exchange Rates Yes oK

AMBPFI02 Service Invoice Yes K

AMBPFI03 Purchase Invoice Posting Yes K

AMBPFI04 Service Credit / Debit Memo Yes K

AMBPFI05 Advances to Vendors Yes K

AMBPFI06 Outgoing Payments Yes K

AMBPFI07 Check/Payment Printing Process Yes K

AMBPFI08 Travel Expenditure Postings Yes K

Effective Date: 23 – FEB – 2010 Classification – Internal

AMBPFI09 Advances from Customers Yes K

AMBPFI10 Check Billing Document Yes K

AMBPFI11 Incoming Payments Yes K

AMBPFI12 Cash Receipts process Yes K

AMBPFI13 Cash Payments process Yes K

AMBPFI14 Letter of Credits from Customers Yes

AMBPFI15 Bill of Exchange from Customers No

AMBPFI16 Letter of Credits to Vendors process Yes

AMBPFI17 Bill of Exchange to Vendors process No

AMBPFI18 Bank Guarantees to Vendors Yes

AMBPFI19 Normal Accounting document Yes K

AMBPFI20 Clearing Document Reversal Yes K

AMBPFI21 Define Condition Records Yes K

AMBPFI22 Asset Acquisition Process Yes K

AMBPFI23 Asset Transfer Process Yes K

AMBPFI24 Asset Retirement Process Yes K

AMBPFI25 CWIP Asset Process Yes K

AMBPFI26 Depreciation Run Yes K

AMBPFI27 Recurring Postings Yes K

AMBPFI28 Accrual/Deferral Posting Yes K

Effective Date: 23 – FEB – 2010 Classification – Internal

AMBPFI29 Foreign Currency revaluation Yes K

AMBPFI30 Interest Calculation on GL's No

AMBPFI31 Interest Calculation on Customers No

AMBPFI32 Interest Calculation on Vendors No

AMBPFI33 Month End Adjustment Entries Yes K

AMBPFI34 Bank Reconciliation Statement Yes K

AMBPFI35 Bad Debts Provision for Customers Yes K

AMBPFI36 Dunning Letters Yes K

AMBPFI37 Tax Payments (CST, VAT, Service, Yes K

AMBPFI38 With Holding Tax Process Yes K

AMBPFI39 Costing Run Yes