BBP - Sap - Format

Business Blueprint <Customer Logo>
Business Blueprint
<T_BBP_1.5> [Internal / Confidential/ Public] P a g e | 1< Project name / Name of document>

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Project Identification
Project Name
SAP Project Manager
Business Process Owner
Prepared By
Reviewed By
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Business Process Owner

Contents
Heading............................................................................................................................................................ 3

Contents
1 PROJECT PROFILE......................................................................................................................................................4
2 KEY DATA STRUCTURE.............................................................................................................................................4
3 PROCESS.....................................................................................................................................................................5
3.1 Process - General Ledger Accounting.............................................................................................................................................6
Process Description Business............................................................................................................................................................................6

Process Flow............................................................................................................................................................................................................ 6
Process Description – SAP................................................................................................................................................................................. 7
3.2 Process - Accounts Payable...............................................................................................................................................................16
Process Description –Business.......................................................................................................................................................................16

Process Flow.......................................................................................................................................................................................................... 16
Process Description – SAP............................................................................................................................................................................... 17
3.3 Accounts receivable............................................................................................................................................................................ 23
Process Description – SAP............................................................................................................................................................................... 24
Process Flow.......................................................................................................................................................................................................... 27
3.4 Process - Cash and Bank Accounting............................................................................................................................................30

Process Flow.......................................................................................................................................................................................................... 30
Process Description –SAP................................................................................................................................................................................ 30
3.5 Process - Asset Accounting............................................................................................................................................................... 33

Process.................................................................................................................................................................................................................... 34
Process Description –SAP................................................................................................................................................................................ 35
3.6 Cost centers........................................................................................................................................................................................... 40
3.7 Internal Order........................................................................................................................................................................................ 41
4 BUSINESS PROCESS MATRIX.................................................................................................................................41
5 GAPS.........................................................................................................................................................................41
6 WRICEF.....................................................................................................................................................................41
7 LOGIC / CONSIDERATIONS / OPEN POINTS........................................................................................................41

Project Profile
[Elaborated project profile]
Key Data Structure
KDS Code Description

Company Code

Functional Areas

Chart of Depreciation

Credit Control Area

Fiscal Year and Fiscal Periods

Profit Center
]\
Business Area
Payment Term
Depreciation Key

Process
This document covers the process related to all the products as gathered through the business process understanding
and demo. All Finance sub module processes relevant to all the products are defined. Applicability of processes for all
the products are shown in the following table:
GT Process Applicability
Process Mapping
General Ledger Straight Fit
Accounts Payable Straight Fit
Accounts Receivable Straight Fit
Cash and Bank Accounting Straight Fit
Asset Accounting Straight Fit
Cost center accounting Straight Fit
Internal Order Straight Fit
Process - General Ledger Accounting
Process Description Business

Requirement and Expectations:
 Passing Financial Entries

 Provisions / Accruals / Adjustments
 Month end closing
 Preparation of Financial Statements – Trial Balance, Balance Sheet, Profit & Loss Account,
 Statutory Compliance and Reporting
 Management Reporting

Process Flow
Process Description – SAP

Functional Solutions
General Ledger Accounting
The central task of G/L accounting is to provide a comprehensive picture of accounts for external
reporting and recording of all business transactions .The SAP FI General Ledger would enable the
following:
 Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger
accounts (reconciliation accounts).
 Simultaneous updating of general ledger and controlling.
 Real-time evaluation and reporting of current accounting data, in the form of account displays,
financial statements with different financial statement versions and additional analysis.
Essentially, the general ledger serves as a complete record of all business transactions. It is the
centralized, up-to-date reference for the rendering of accounts. Actual individual transactions can be
checked at any time in real-time processing by displaying the original documents, line items, and
transaction figures at various levels such as:
 Account information
 Journals
 Totals/transaction figures
 Balance sheet/profit and loss evaluations
General Ledger Masters
Chart of Accounts :
 A single chart of accounts “OL10” will be used across OLAM as operational chart of accounts
 In SAP GL can be identified as Profit and loss and Balance sheet account. By using the account
groups GLs can be grouped to different categories based on the nature of GL.
 All GL accounts will be created under the Chart of Accounts "OL10“. This Chart of Accounts will
again be assigned to Company Code SAG Gabon.
 GL Master will contain two segments, one is Chart of accounts segment and another is company
code segment. The chart of accounts segment will be created for all GL accounts used across the
OL10 group. The company code segment for SAG Gabon will be created only for those GL
accounts used by Gabon.
 The COA segment is for identification of whether it is P&L account or BS account, GL account
group and description.

 The company code segment contains details like currency, which type of tax is allowed, whether
posting is possible without tax, Open item Management, Line item management, whether it is
reconciliation account etc., Once GL is defined at COA level, it can be extended to different
company codes within the same client.
 GL Accounts Groups and number ranges for OLAM Chart of Accounts
 Every GL account created at Operative COA level will be assigned to a Group Account number
which is created under Group Chart of Accounts – "OL00“. The Group Chart of Accounts will be
used to obtain a trial balance as per Singapore Corporate requirements.
 The below are three kinds of Chart of Accounts defined in OLAM:

Operational chart of account” for normal accounting purposes:
 Operational chart of accounts (OL10) will be centrally defined.
 “EN” will be used as the language for Operational chart of accounts.
 The operative COA is used for legal/statutory purposes to prepare financial statements using
GL accounts assigned to this COA.
Group chart of account” for consolidation of accounts at a group level &

 Group chart of accounts (OL00) will be centrally defined & linked to operational chart of
accounts.
 “EN” will be used as the language for group chart of accounts.
 The group COA is used for preparing audit pack.
 This Group COA will be assigned to Operative Chart of Account.
 Account Groups will be defined to separate GL accounts
Country chart of account” for local requirements

 If co. code SAG Gabon requires to report locally with Local Chart of Account, then we will be
creating country chart of accounts.
 Country chart of accounts will be represented by 4 characters – GA00 Codification First 2
alphabets representing country code and the next two digits will be “00”.
 The Language of Country Chart of accounts will be in English “EN”.
 Post all products rollout in SAP, country chart of account will be mapped as alternative GL
Accounts.
Functional Solutions: - General
 One set of books is maintained and manual adjustments are passed at the period end to facilitate
separate reporting for the following: Following Ledgers will be created Gabon for the following: .
o Financial Reporting - Leading Ledger (0L) - Fiscal Year Variant (Jan to Dec)
o Local Reporting – Parallel Ledger (L1)-Fiscal Year Variant (Jan to Dec)
o Local Tax - Parallel Ledger (L2) – Fiscal Year Variant (Jan to Dec)
o Management Reporting – Parallel Ledger (L3) – Fiscal Year Variant (Jan to Dec)

Transaction currency other than local currency (XAF) & Group currency (USD) , i.e EUR reports
can be take Vendor wise with transaction currency (document currency).
 All entries will be updated simultaneously in all the Ledgers except depreciation which will be
posted in the relevant ledgers.
 At the period end, ledger specific adjustments can be passed for differences based on accounting
practices in the ledgers.
 Separate financial statement versions (grouping for financial statements - FSV) will be created as
per the business requirement for local reporting purpose.
 Trial Balance, Balance Sheet, Profit & Loss account can be generated from SAP based on the
Ledgers for the specified period.
 Accruals and provisions entries are passed at the month end for closing.
 Adjustment entries are passed after verification.
 Payroll information is uploaded manually as a Journal entry based on the Excel file from HRD on a
monthly basis.
Functional Solutions:-Tax
Input tax
For all the Local purchase in, Gabon is liable to pay Input Tax. For the same Gabon defined various Input
Tax Codes for local purchases. TVA is applicable @ 10% and 18% on all domestic material /service
procurement.
The Accounting entry is as follows:
Description Debit Credit

GR / IR Account 100
Input VAT Account 10
To Vendor Account 110
Withholding Tax (TPS)

TPS is applicable for Gabon at the time of Invoice. Hence, Extended Withholding Tax should be
activated for Gabon. Withholding tax is applicable for vendor related transactions. Withholding tax @
9.25% & 15% for all unregistered vendor.
TVA exemption certificate

Some purchases for SAG Gabon will be exempt from TVA. In such cases, we need to issue TVA
exemption certificate to vendors and also track it against vendor invoice.
Functional Solutions : Posting
Manual Entry.

 All expenditure, incomes, manual outgoing payments will be manually booked in FI (simply these
transactions are with/without reference to purchase order). Such postings are represented by an
accounting document within SAP. An accounting document can be uniquely identified by the
Company Code, Fiscal Year and Accounting Document Number.
 If user has entered an incorrect document, the same can be reversed. Note that FI can reverse a
document only if the following conditions are met: Was posted within the FI system
 Item is not cleared in the system. An item is cleared if it is matched a corresponding contra within the
same account. For example, a prepaid expense could be matched against the actual expense booking.
A credit to the GR/IR account at the time of goods receipt posting could be cleared against the debit
to the GR/IR account at the time of invoice posting. If an item is cleared, we have to first reset cleared
items and then reverse the incorrect accounting document.
 Ordinarily, user posts a reversing document in the same period user posted the original document. If
the period is not open, user can overwrite the posting date field with a date in an open period, such as
the current period.
 The user will have to enter a reason code for reversing the document. The following reason codes will
be defined in the system:
Reason code Description

01 Reversal in current period
02 Reversal in closed period
03 Actual Reversal in current
period
04 Actual Reversal in closed
period
05 Accrual / deferral posting
06 Cheque returned
07 PDC returned
 The reason code 01 will be used when a document is reversed in the same period as it
was originally posted. Here the posting date for the reverse document will be same as
that of the original document.
 The reason code 02 is used when a document needs to be reversed in a posting period
which has been closed allowing the user to enter an alternative posting date for the
reversed document.
 For reversal of items that have been cleared transaction code FBRA shall be used. This
function resets clearing and then reverses the transaction.
 Documents can be reversed in two ways:
 Mass Reversals (F.80)
 Individual reversals. (FB08)
 It is proposed to use the second method for having proper control. The first method can
be used if documents to be reversed are in a continuous sequence.

 If entire document is not desired for reversal, then correction JV can be entered to fix the
error. The link of the documents must be maintained manually in text, using transaction
FB02 or FB09.
Automatic Updation through Integration with other SAP Modules like:
 MM Module for all Purchases, Material Issues, Transfers, Inventory Valuation etc.
The Data will flow from other modules into FI Module thereby updating all the required Books of
Accounts.
Automatic Account determination will be setup for automatic posting of FI entries based on the
material movements in MM.
SAP Business processes will be followed in the following areas where FI posting will be
generated from respective SAP FI sub-modules:
Various posting tools are also provided by SAP for manual entries. These are mentioned as below:
■ Recurring Entries (FBD1)

 This feature is useful for booking of expenses that are periodic and fixed. An example for
the same is tran sfer of prepaid expense, say prepaid insurance, from balance sheet to
expense over the period of the insurance policy.
 This can be taken care by defining a recurring document in the system and executing the
same at the month end (F.15).
■ Park Document
 Park & Held document will not get post to books of accounts. The objective of park/Held
document will get stored incomplete transaction once get finished the document can post
to books of accounts.
 Ex: Making of expense payment parking to get the respective head.
 For Gabon wants to follow the “Park document practice to avoid the rectification &
duplication entries.
■ Clearing Document
 Clearing will take place those GL Accounts has been maintained as open item
management.
 It will clear the line-item debit/credit which transaction has been posted.
■ Ex: While making GRN Entry will get posted
■


Stock Account 100
To GR/IR Account 100
■ Invoice Verification (MIRO)

■
GR/IR Account 100
■ The GR/IR Account can now be cleared to remove the debit and credit from line-item
display of open items (GR done invoice not done and vice versa) in this account.
Accruals and Deferral’s
Accruals and Deferral’s will be set up for Gabon as per the requirement.- What is Gabon requirement?
 The Accrual Deferral transaction will be used to post month end journal vouchers, which
will be reversed on the first day of the following month.
 Maintain and Post Accrual Deferral Document
 The system provides posting accrual/deferral document in SAP by giving
following details
 Document date
 Posting date
 Document type
 Company code
 Currency
 Reversal reason
 Reversal date
 The original document is posted with the above details. This can be reversed using the
program (transaction code F.81). This will reverse the original document on the reversal
date mentioned while posting the original document.
A new document type will be created in SAP for posting Accrual entries. These entries
will be reversed in the beginning of the next month using Tcode F.80.
Functional Solutions : Closing

 Month end closing will be done every month.

Closing Operations
The closing operations be carried out in a manner that reduces manual monitoring and supports MIS
generation in time. Closing operations recur periodically and can be subdivided as follows
 Month-end closing
 Year-end closing
The closing operations component supports the preparation and carrying out of activities
required for closing. For this purpose, the system provides various standard reports that
the business can use to generate evaluations and analyses directly from the posted
account balance. All the three levels of closing operations are summarised below
Month-End Closing:
Following activities as part of month-end closing
 Obtain Confirmation from all modules that their month end activities are complete.- Mail
 Open and close posting periods: Gabon can close one or more posting periods in the past for
posting, and permit posting to be made to one or more current or future posting periods for
specific users. Previous period will be closed for all users other than those participating in the
month end activities and current period will be open for all users. – ZFI032
 Maintain Exchange Rates in the system – TCURMNT
 Open the next month for MM postings - MMPV
 Use different reports like: 1.Compact journal 2. Balance audit trail 3. Accounts reconciliation 4.
Account balances 5. Open item list to review balances, open items and postings during the month.
 Stock Count and Post Differences, if any
 Post any accrual/provision/recurring entries – Payroll, T&E etc. – JV Upload, FBD1, F.14, F.15, FBS1,
F.81, F.80
 Open item clearing automatically can be done when postings to vendors, but any adjustment
entries are passed to vendors, these accounts will not be cleared automatically. For clearing for
vendor transaction code F-44 can be used.
 Capitalisation of Capital Work in Progress to Final Asset – AIAB / AIBU / KO88
 Posting Depreciation and Review the postings – Tcodes AFAB / SM37 / F.08 / S_ALR_87013611
 Complete CO activities
 Perform Foreign Exchange Translations. – For Trial Balance in USD
 Check the Trial Balance, Profit and Loss, Balance Sheet –ZFI004, S_ALR_87013611, S_PL0_86000028,
ZFI065, ZFI066, ZFI080.
 Close the previous period for all users.
 Submit reports to stakeholders.

Year-End Closing:
 At the beginning of the new fiscal year, the user is required to open the posting periods in the
new fiscal year and carry forward the balances (A/R, A/P and GL balances) from the previous year.
 Profit and Loss Accounts/Retained Earnings Account
 You can also carry forward the balance of your profit and loss accounts to retained earnings
account for the new fiscal year. Once Profit & Loss accounts balance is carry forwarded to
Retained Earning accounts, in the new fiscal year the P&L will be zero.
Foreign Exchange Translations
Preparation of USD TB
 Translation – This is for determining the USD TB. For the purpose of determining the translation
rate, system determines the month end conversion rate between the document currency and USD.
For example, if local currency is GAU and an account has balance in EUR, then the translation is
from EUR to USD and not VND to USD.
Translation of P&L Items
 All the P&L items - for the month numbers - posted in currency other than USD is converted to
USD using month end Exchange Rate
 The result of the exchange revaluation has a P&L and a balance sheet impact. The P&L impact is
shown as translation exchange gain /loss. The balance sheet impact is shown as exchange
realignment.
Translation of Balance Sheet Items
 All the balance sheet items are translated to USD from document currency using the month end
exchange rate. The result of the exchange translation will have only a balance sheet impact. One
leg is shown in the same place as the original balance sheet account and the other leg is exchange
realignment.
 However the following are not translated.
o Equity
o Reserves accounts/provision for dividends accounts
o Inter Product funding accounts
Pay Roll Management
o Payroll information will be uploaded using the JV excel file format.
o In SAP the payment details under each head has to be debited to separate accounts and
credited to the respective Vendor.
o Bank payment can be made against the vendor line item.
General Ledger Transactions T.Code

ID Process Step Description Transaction Codes

1 General Postings F-02
2 Transfer or adjustments between GL accounts FB50
3 Mass Reversals F.80
4 Individual Reversals FB08
5 Cleared Reversal Items FBRA
6 Accrual /Deferral Document F.81
7 Accrual /Deferral Document – Reversal F.80
8 Recurring Entries – Creation FBD1
9 Recurring Entries – Execution F.15
10 Posting period Open/Close ZFI032
11 Maintain Exchange Rate OB08
12 Open /Close MM Posting Period MMPV
14 Clearing Vendor Accounts F-44
15 Clearing GRIR Accounts F-13,
16 Capitalization of Capital work in progress AIAB, AIBU, KO88
17 Posting Depreciation AFAB
Process - Accounts Payable
Process Description –Business

The requirements of accounts payable process in Gabon are as follows:
Sub-
Process Mapping GAPs / Remarks
Process
Vendor Master Straight Fit No GAP
Maintenance
Vendor Payment terms Straight Fit No GAP
Down Payment from Straight Fit No GAP

Vendors
Vendor Invoice Straight Fit No GAP

Verification
Debit/Credit Note Straight Fit No GAP
Payment for Due Items Straight Fit No GAP
Vendor Payment Straight Fit No GAP

/Clearing
 Reporting for Accounts Payable

 Vendor ageing reports

 Line item analysis based on classification
 Vendor balances
Process Flow

 Invoice Verification Process

Invoice Verification for Purchase Order (PO) with Goods receipt (GR)

The Invoice verification will be carried out with reference to purchase orders. Since the GR based invoice verification is
selected in the purchase orders the invoice verification can be carried out only after a GR (for materials) or service
entry sheet (for services) has been created.
The invoices are received from the vendors for goods supplied or services rendered. These invoices are input into SAP
and are verified against the goods receipt documents or service entry sheet and the corresponding purchase order.
Invoice verification for Raw Materials will be done at a defragment weight after analysing and recording the quality
parameters.
The following information is entered by the user during logistics invoice verification in SAP as header data.
 Vendor invoice date
 Vendor invoice number
 Vendor invoice amount
 Purchase tax code
 Purchase order number or service entry sheet or delivery note number.
In case a purchase order is chosen as reference all the open goods receipts for the purchase order are displayed. The
user will choose the GR line items pertaining to the invoice and post the invoice.
In case the service entry sheet, the service entry sheet is selected for service entry.
Simulation of invoice posting
Before posting the invoice, the user can simulate the invoice posting. The system will perform a three-way match and
propose whether the invoice can be posted or not. The system will also display error messages if the invoice cannot be
posted.
FI Entries

Spares and Consumables ( Price Control – V)
During GRN (MIGO)
Description Debit Credit Explanation

Stock Account 100 As per moving average
To GR/IR Account 100 As per PO
During Invoice Verification (MIRO)
1) Price Difference - Stock is available

2) Description Debit Credit Explanation
GR/IR Account 100
Stock Account (price diffrence value) 50
2) Price Difference – Partial Stock is available (proportionate to stock availability)

GR/IR Account 100
Stock Account 30
Price Difference Account 20
3) Price Difference - Stock is not available

GR/IR Account 120
Price Difference Account 50
Reverse entry value set automatically for full reversal.
If you post a credit memo for a smaller quantity than that invoiced to date, the amount of the credit memo cannot be
larger than the amount invoiced so far. If you post a larger amount, the system displays an error message, such as:

“Reversal value is greater than value invoiced to date “The system does not check if your entries in the columns Amount
and Quantity correspond to the purchase order price or the invoice price.
■ Vendor Payment Terms

Refer KDS Document for detailed Vendor Payment terms to be used in Olam Gabon
■ Down (Advance) Payment Process for Vendors

In SAP, the Advance Payment to the Vendors will be paid against the Purchase Order. The Purchase order number
should be entered at the time of creation Down Payment request in SAP. The following entry will be generated at the
time of Down (Advance) Payment to Vendors and subsequent clearing of Down Payment against the Actual Vendor
Invoice.
Down Payment

Vendor Account (with SP GL) 100
To Bank Outgoing Account 100
Down Payment Clearing

Vendor Account 100
To Vendor Account (with SP GL) 100
Payments for Vendors
Olam Gabon uses the following Payment Methods to pay their Vendors:
 Cheque Payment
 Bank Transfer
 Cash Payment
Payments can be made through agreed payment methods with the Vendors.
In the case of payment user must manually select the open items for which the payment has to be done.
Vendor Credit Limit

OLAM in its day to day operations may issue advances to the Vendors. To capture such transactions, Vendor Credit
Limit is maintained at the Purchase Organization Level. (Enhanced by OLAM GT)

When Down Payment is posted with reference to PO then system will check the Credit limit which is available in the
Vendor Master Data
Purchase Organization Level:

In Company Code level we will maintain Credit limit with Currency. If the down payment is to be made with reference
to PO, the credit limit maintained in the vendor master, under the Purchase Organisation push button (customized /
developed) will manage the credit limit activities.
Under this method, the credit limit is maintained at each individual Purchasing Organization level. For e.g. Vendor
‘ABC’ is supplying to SAG Gabon then the Credit Limit is maintained at 1 Purchasing Organization Levels (Namely: SAG
Gabon Ports).
When Down Payment is posted with reference to PO then system will check the Credit limit which is available in the
Vendor Master Data for respective Purchase Organization and if the Down Payment is less than the Credit limit then
system will allow posting the Down Payment else it will through an error message with “Payment is exceeded than
Limit maintained”.
After receiving the GR/IR invoice against purchase order if we want to offer more down payment to the Vendor in such
scenario system will allow the down payment to the extent of GR/IR invoice value.
The flow Chart is as follows:

Account Payable Transactions T.Code with Sequence

Transaction
ID Process Step Description Codes
1 Down Payment Request (Noted Item) F-47
2 Down Payment Made ME2DP / F-48
3 Posting of Vendor Invoice F-43
4 Posting Outgoing Payment F-53
5 Posting Vendor Invoice - Enjoy Transaction FB60
6 To View Vendor Account FBL1N
7 Vendor Credit Memo F-41
8 Vendor Credit Memo - Enjoy Transaction FB65
9 Purchase Invoice Posting F-43
10 Transfer of Advance from Special G/L to Normal by clearing Special G/L A/c F-54
11 Clearing of Normal Item - Account Clear F-44
Clearing of Vendor Open Items

Vendor ledger represents items like invoice, collections, debit notes etc. These items constitute the balance that is due
to/from him. There may be cases where the number of transactions is huge resulting in vendor ledger getting bulky,
with historic details. To maintain vendor ledger with details of amount that are currently due, SAP has devised a
clearing process. By clearing we mean linking of invoices with payments or like documents and do not represent an
outstanding (open item). The system shall, on clearing an invoice or other documents, create automatically a clearing
document. The document groups together the various debits and credits which were used to clear the ledger balance.
Manual Clearing
Using standard SAP transactions, one can clear the vendor balances either by assigning the document number at the
time of data entry or clear it at a later stage (clearing process). On providing the vendor number at the time making
the payment manually all invoices that are pending against the vendor will be listed. The amount paid can be applied
against the invoice listed and can be cleared.
If a payment has been accounted using differential posting (like on account), clearing process must be used at a later
stage to set off the payment against the invoice. This is practiced when outgoing payment is done without invoice
details or as an advance. To clear the advance payment or on account payment with the invoices manual clearing must
be performed.

Automatic Vendor clearing
Clearing will be done on FIFO Basis by using the transaction –ZFI076.

Vendor clearing
When a vendor is also a customer the two accounts can be linked together by specifying the customer code in vendor
master and vendor code in customer master. In this case the vendor and customer balances can be view together and
cleared against one another.
Payment methods
Standard payment methods are available in vendor master like cheque, Cash payment and Bank transfer. A single
vendor can have multiple payment methods, in this case while making the payment corresponding payment method
must select manually, otherwise priority can be set for payment methods.
 Period End Activities

Statement of accounts
The statement of accounts will be sent to the vendors for a given period, with the opening and closing balances.
T-Code ZFI086
Balance Confirmation
Balance confirmations are sent to customers and vendors to verify that account balances are correct. Balance
confirmation program automatically creates balance confirmations (including reply slips) for vendors and customers.
The vendors/customers check the balance information they receive and send their reply.
FI – MM Integration
FI – MM Integration
Main Process Sub Process Mapping GAPs / Remarks

Spares & Straight Fit No GAP
Procurement
Consumables
Services Straight Fit No GAP
Accounts receivable
The requirements of accounts payable process in Gabon are as follows:

Accounts receivable is a repository of all customers related transaction details, namely, sales accounting,
collections, credit notes etc. While details are captured in the accounts receivable module of SAP, the general
ledger is updated on a real time basis. This ensures that the general ledger is always reconciled with the sub
ledgers. This document covers the accounting invoices on the customers , receipts from customers,

adjustment of receipts against invoices outstanding, and generation of various information to customers such
as, account statements, payment notices in case of short payment etc.
All revenue for SAG Gabon will be recognised under G/L (Needs to finalize) i.e. sale of service.
The requirements of Accounts Receivable process are as follows:
Process Sub-Process Mapping GAPs / Remarks

Customer Master Data Straight Fit No GAP
Customer Credit Limits Straight Fit No GAP
Customer Invoices Straight Fit No GAP
Receipt from Customer Straight Fit No GAP
Advance from Customer Straight Fit No GAP
Advance clearing Straight Fit No GAP
Manual-Customer Clearing Straight Fit No GAP

Process Flow
Customer Invoice (Integrated with SD)
Module Process
Sales Contract
VA41
Sales Order
VA01
Delivery of
Goods
VL01N
Post Goods Accounting

Issue Document
VL02N
SD
Shipment Accounting
Document Document
VT01N/VI01
Billing Accounting
Document Document
VF01
Clear
Accounting
Prepayment
Prepayment YES Document
against Debtors
F-32
FI NO
Accounting
Bank Receipt Document
F-28

Customer Master
A complete customer account consists of the following three segments
General data at client level - This is data that applies to every company code and every sales area in your company.
The general area includes, for example, the customer’s name, address, language, and telephone number.
Company code segment - This is data that is specific to an individual company code. Company code data includes, for
example, the reconciliation account number and payment terms.
Sales area segment - This is data relevant to the sales area of a company. For example, customer pricing procedure,
customer group fields. This sale data is maintained for each sales area. More details about sales area is covered in the
org structure document.
Control Data Segment - Tax category and TIN of the Customer can be maintained here.
Account Groups & Number Ranges

Accounts group controls the grouping of customers by type. Entry of account group is mandatory while
creating a customer master record.
Account groups determine:
 The type of number assignment
 A number range for assigning account numbers
 Which fields are displayed and whether their entry is optional or required (field status) when you
create or change vendor master data.
 Whether the account is for one-time customers
Customer Account Groups in SAP GT
Grou Externa
p l Description
Z001 Third Party Customers
Z003 Institutional Customers
Z004 XX Olam Subsidiaries
Z005 XX Inter Plant Customers
Z006 Finance Customers
Z007 One Time Customers
Z008 XX Employee Customers
Z009 Goods Receipient

■ Customer Reconciliation Accounts

When you post items to a subsidiary ledger, the system automatically posts the same data to the general
ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger. These
reconciliation accounts ensure that the balance of G/L accounts is always matching to the balances in
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. Reconciliation account have to be maintained in every
customer master record.
■ Customer Invoice in Accounts Receivable

Accounts receivable controls the customer accounts which are integrated with the sales and distribution
module. Invoices flow from sales and distribution module into the accounts receivable module when there is a
sale recorded or a sale return is generated to impact financials.
The sales invoices also can be generated from FI, when the process is not integrated with logistics.
■ Incoming payments
Normal accounting of collection in FI
The amount collected will be accounted against outstanding from the customer. Here the amount will be credited to
the customer account by debiting the bank clearing account to which the amount is deposited in. Where the details of
invoice are readily available the amount collected can be set off against the outstanding invoice
The following options are available if the incoming payment is cleared against the open items in the customer account
at the time of entry:
The various types of clearing are discussed here under:
■ Full clearing
When a customer remits amount that are due by him against invoices the same will be cleared if he provides details of
the invoice against which the amount paid by him is to be applied. If the amount paid by the customer is the same
which is due by him, the invoice can be cleared in full. This is termed as full clearing.
■ Partial payment
When the customer remits a part of the amount the partial clearing option will be used. The original invoice and the
collection amount shall remain as open item, until the entire amount is adjusted. A link between the invoice and the
collection is established in the field “payment for”. Using the assignment field, it is possible to group related document
for analysis.
■ Advances received from Customer

Advances are received from customers as per the terms of the contract for meeting the business needs. The advances
received from customers are adjusted at the time of settlement of invoices. To distinguish the type of advance, each
advance will be linked to a special general ledger account code. Different special GL indicators are used to capture
different advances from customers.

Customer Receipt against Invoice

Bank Main Account 100
To Customer Account 100
Customer Advance Receipt

Bank Main Account 100
To Customer A/c (SPGL Ind) 100
■ Payment Terms:
The payment terms define the payment terms agreed with the customer. The payment terms determine the due date
for payment. The payment terms specified in the customer master are defaulted at the time of invoice entry; however,
the same can be changed during invoice entry.
■ Credit Management
Credit Limits for the Customers maintain in Credit Master using Tcode FD32.While delivery of goods, System
does the Real time checking of credit. If the delivery order amount exceeds the limit of the customer or the
maximum percentage of overdue open items, then the delivery is blocked automatically. OLAM follows the
Credit Management module being followed as below
 Credit Control Area is responsible for managing the Credit Management. Separate Credit
Control Area is created for the product Specific.
 Credit Control Area is assigned to the Sales Organisation, Distribution Channel and Division for
the specific product.
 Categorize the customers as High Risk, Medium Risk and Low Risk Customers
 Maintain the upper credit limit for the customer categories.
 While creating Sales Order system will check the unpaid pending amount (with the credit limit)
pending for the predefined time pri based on the customer categories (high/ medium/ low)
 Predefined time, i.e. number of days the oldest open item can be overdue, for the different
customer categories is as follows:
 Credit Blocks with respect to Hight risk category

Account Receivable Transaction codes are as follows.
Account Receivable Transactions T-Code

1 Posting Incoming Payment F-28
2 Posting Customer Invoice - Enjoy Transaction FB70
3 Customer Credit Memo - Enjoy Transaction FB75
4 Customer down payment request F-37
5 Down Payment Received F-29
6 Clearing of Normal Item - Account Clear F-32
Accounts Receivable reports are as follows.
Account Receivable Reports T-Code

1 Customer Line-Item Display FBL5N
2 Customer Balance Display FD10N
3 Customer Sales S_ALR_87012186
4 Customer Balances in Local Currency S_ALR_87012172
Process - Cash and Bank Accounting

Bank reconciliation is to be carried out daily. The data from the bank statement and the bank transactions in company
books should be reconciled with each other and the matched transactions should be marked as cleared.
This activity should be automated with the banks statements uploaded into SAP to avoid manual intervention since
the same is time consuming.
Process Flow
Process Description –SAP
 Bank Accounting
The bank statement can be manually entered in SAP or an electronic bank statement can be imported into and
processed automatically in SAP.
Initially all receipts and payments are posted to a bank GL Account.
■ House Bank

Each house bank of a company code is represented by a bank ID in the SAP system, every account at a house bank by
an account
In the SAP system, we use the bank ID and the account ID to specify bank details. These specifications are used, for
example, for automatic payment transactions to determine the bank details for payment or for posting customer
incoming payment.
The lists of house banks need to be provided by the business.
Bank GL accounts in SAP

In SAP for every Bank account of the company three set of GL accounts shall be maintained.
 Bank main account

 Bank Outgoing account
 Bank Incoming account
The Bank clearing accounts ensure that all incoming and outgoing payments are only posted to the bank Main
account when the transaction is debited /credited in the Bank statement. The entries from the bank clearing account
to bank main account takes place in SAP when the bank statement received from the bank is uploaded in SAP.
An example of the bank GL accounts to be maintained for UGB Bank Gabon is explained below
 UGB Bank Gabon Main account
 UGB Bank Gabon Incoming Account
 UGB Bank Gabon Outgoing Account
The bank main account will always show the balance at the bank for that account up to the last reconciliation update.
The balance as per books in SAP is reflected as a sum of the bank main account and the sub-accounts.
For Gabon Cash Crop the following bank accounts to be opened whereas for export crop the bank account is yet to be
finalised.
UGB Bank Gabon
The Incoming Receipt sub-account will reflect the receipt entered in books but not yet credited in bank statement and
other un-reconciled items.
During the bank statement upload, if the bank entry is matched with the entry in SAP the following transactions take
place in SAP
Accounting entry is posted in SAP as explained below

The item in the bank sub-account is cleared and moved from open items to cleared items.
Maintenance Bank Data in Vendor Master Data

If we want to make payment from a specific bank to some specific vendors, we can maintain the Bank
details in Customer / Vendor Master data for the same.
Bank Reconciliation Process (FF67- Manual Bank Statement)
All accounting entries for collections and payment will first be posted to the bank sub-account. On bank reconciliation
the entry will be transferred from the bank sub account to the bank main account.
The balance in the bank sub-account will reflect the un-reconciled items. The following are the examples of open items
in the bank sub-account.
Bank transfer advice given to bank but not reflected in statement

Entries in bank statement not accounted in company books
The open items will be reviewed, and necessary action will be taken by the user managing the bank reconciliation. The
user may force match the entries or take up with the bank for more details.
The details required for the bank reconciliation in the bank sub-account will be managed by defining document types.
Check printing will be taken in future if required.
Bank Charges
Bank charges, while doing the Bank reconciliation statement, will be directly posted to Bank Main account
Document types in SAP for Bank reconciliation
The following document types will be defined for bank reconciliation and will be applicable as given below.
SL No Document type Description

1 ZR Bank reconciliation
Cash Journal
Cash Journal is used to manage the company's cash transactions. It supports posting cash receipts and payments. The
system automatically calculates and displays the opening and closing balances, and the receipts and payments totals.
Several cash journals can be maintained for each company code. You can also carry out postings to G/L accounts, as
well as vendor and customer accounts. You can run several cash journals in each company code. You can create a cash
journal for each currency.
The cash journal is assigned to the “Cash” GL account. The cash journal serves as a basis for entries in the general
ledger and thereby completing the double entry.

The cash journal is a single-screen transaction. This means that you can enter, display, and change cash journal
documents on one screen.
The SAG Gabon business would want to limit the cash journal transaction to below listed.
CAPEX VENDOR ADVANCE
CASH DEPOSIT INTO BANK
CUSTOMER ADVANCE
CUSTOMER POSTING
EMP EXPATRIARTES ADVANCE
EMPLOYEE ADVANCE
EMPLOYEE LOAN STAFF&EXPA
EMPLOYEE TRAVEL ADVANCE
RENT DEPOSIT
REVENUE POSTINGS
VENDOR ADVANCE PAYMENT
VENDOR POSTINGS
WITHDRAWALS FROM BANK
The GL account should be defined, as ‘Automatic posting only’ and posting cannot be made to this GL account
directly. Posting to this GL account can be made only through the cash journal.
You can save cash journal entries locally in the cash journal sub ledger, and copy or delete them. The cash journal
entries saved is posted to the general ledger, for example at the end of the working day.
You can also print the cash journal entries you have saved (receipts) as well as the cash journal entries posted in a date
range displayed.
The Cash point to be created for SAG Gabon.
Process - Asset Accounting

Asset Accounting covers the following scenarios

1. Manage Capital Budgets

2. Project Tracking (Investment Order)
3. Purchase of Fixed assets
4. Retirement, Sale and Transfer of Fixed Assets
5. Depreciation posting
6. Fixed Assets reporting
Process

Process Description –SAP

The following Structure for Asset Accounting will be created for Gabon.
In SAP Assets related accounting will be done through FI-AA module.
In Asset Accounting module, we group assets of same types in an Asset Class. Asset Classes establishes the connection
between the Asset master record and the corresponding accounts in the General Ledger in Financial Accounting.
One NEW Chart of Depreciation for Gabon will be created and assigned to Company Code SAG Gabon. Chart of
Depreciation is the organization unit in the AA module under which all asset related functionalities are managed for a
legal entity.
The following depreciation areas will be created under above Chart of Depreciation: Different procurement costs and
depreciation rates can be assigned to the same asset in each depreciation area.
01 Book depreciation
15 Tax balance sheet (Depr as per Income Tax Act)
18 Tax balance sheet
20 Cost-accounting depreciation
30 Consolidated balance sheet in local currency
31 Consolidated balance sheet in group currency
32 Book depreciation in group currency
33 Depreciation Audit Pack - L3 -Local Currency
34 Depreciation Audit Pack - L3 -Group Currency
70 Book Depreciation - L1
71 Book depreciation in group currency - L1
The asset class also controls the assignment of asset numbers. Asset numbers will be system generated.
Each Asset Class will be linked to a separate GL account for APC, Depreciation and Accumulated depreciation.
Manage Capital Budgets
 Capital Budget is sanctioned for the year and complete tracking and reporting is done against the
same. Sometimes, the project gets carried forward to the next year.
 The un-utilized budget gets expired at the end of the year. The carry over spending is booked
against the next year budget
 Capital Budget is done through Internal (Investment) Orders.
 The control and tracking of capital budgets will be done using internal orders functionality in SAP.
 The entire capital budget will be broken into separate capital projects which will be created as
separate internal orders.
 Every project will be created as a separate internal order and budget will be maintained against the
same for every year. The orders will then be released for postings.

 Every order will have various statuses. Only those orders with “open” status can be budgeted. Only
those with “budgeted and released” statuses can be used for actual postings.
 Every CWIP (Capital Work in Progress Asset) created in the system will be assigned to an internal
order. As soon as Investment order is created, CWIP will be created automatically.
 Investment order has to be settled periodically to CWIP, every period (month) end. This is a
mandatory step.
 All purchases / actual bookings will be made against the CWIP initially. This will ensure that the
system always checks against the budget when posting the actual amounts.
 Error message will be activated at the time of PO/ FI transaction, in case the budget is exceeded.
 Warning message will be activated at the time of PO/ FI transaction, in case the budget has reached
at 90% level.
 Error message will be activated at the time of PO/FI transaction, incase the budget has reached at
100% level.
 All Investment Orders (projects) which are complete will be closed in the system.
Project Tracking (Investment Orders)
 Tracking and reporting of actual, budgets and commitment by project and year will be available for
Internal Orders.
 Investment Orders (projects) are tracked against capital budget manually.
Purchase of Fixed assets
The procurement of all capital Items will be done against purchase orders as capital work in progress,
Master data for internal order (project) will have to be created, budget should be assigned and the order released
before creation of purchase order.
Master data for AUC (Asset under Construction or CWIP) will have to be created before creation of purchase order. The
AUC should refer to the internal order.
The purchase orders will be linked to AUC and internal order.
Total cost will be considered as the cost of acquisition. Necessary condition types will be maintained in the purchase
order for the same.
Goods Receipt will be posted when the asset is physically received at Gabon port. System will pass the entry
PNL Expenses (Invest Ord) 100
To GR / IR Clearing 100
During the Month end, it is mandatory to settle the investment order to AUC as part of month end closing activity. The
accounting entry will be
Asset CWIP 100
To PNL Expense (Invest Ord) 100

When the asset is put to use or capitalized, AUC settlement will be done to the main asset. Main Asset Master and
settlement rules at the AUC level will have to be created for the same.
System will pass the entry
Final Asset 100
To Asset CWIP 100
No depreciation will be calculated for AUC. The depreciation will be calculated for the main asset based on
capitalization date.
In case of any adjustments to the purchase cost on account of debit / credit note from the vendor, the same can also
be posted to the main asset or to the CWIP Asset as per the requirement.
Retirement, Sale, Scrapping and Transfer of Fixed Assets

The functionalities for Sale and Retirement of Assets would be configured for Gabon port.
Such transactions will take place at net book value (APC-Acc. Dep.) and the gain / loss would be posted accordingly.
Asset can be retired completely or partially i.e. retirement of the complete asset or retirement of some parts of the
assets. The assets can be retired in one of the following manner:
An asset is sold with revenue to a customer.
An asset is sold with revenue but without customer number in system (cash sale).
An asset is scrapped with no revenue.
Accounting entries at the time of asset sold with revenue to a customer.

Customer Account 100
Accumulated Depreciation Account 70
Loss on Sale of Asset account 10
To Asset Account (Gross Block) 180
To Profit on sale of Asset Account
Accounting entries at the time of asset sold without customer (cash sale)

Asset Clearing Account 100
To Profit on sale of Asset Account
Accounting entries at the time of asset scrapped with no revenue


■ Depreciation posting
Depreciation will be calculated based on depreciation keys maintained for each of the asset at Depreciation area level.
Different depreciation rates and useful life can be maintained for each depreciation area. Depreciation will be
calculated based on useful life and straight-line method defined in the depreciation keys.
Depreciation will be posted monthly using background jobs for each of the Depreciation area and will be updated in
the relevant Ledgers.
The following accounting entry will be generated:

Depreciation Account 100
To Accumulated Depreciation 100
Refer KDS for the Depreciation Key details.
■ Period End Closing

Fiscal Year Change: For carrying forward the asset values from the previous year to the current year, a fiscal year
change needs to be carried out. Only after the fiscal year change takes place, the posting can be carried out in the
assets in the current year. However, the posting in the last fiscal year can still be done. The fiscal year change can be
carried out anytime during the last month of the previous fiscal year or the first month of the current fiscal year.
Fiscal Year Close – Only 2 years can be open in Asset accounting. For example, in the year 2012-2013, only 2011-12
and 2012-13 or 2010-11 and 2011-12 can be open. To open 2012-12 by performing fiscal year change, it is necessary
to close 2010-11 in the system. Once a fiscal year is close no entries are possible in the asset books for that closed
year.
Reconciliation between FI & Asset Accounting Balances. All the balances in Asset Masters will be tallied with the
updated values in General Ledger Accounting.
■ Fixed Assets Reporting
 Fixed Assets Register

 Fixed Assets transactions during the year.
 Tracking of Asset in case of Inter-plant transfers.
 Idle assets are also tracked.
 Business Process Master List
Asset Accounting
ID Process Step Description Tcodes
1 Main Asset Purchase Posting F-90
2 Sub-Asset Purchase Posting F-90
3 Asset Explorer AW01N
4 Asset History Sheet S_ALR_87011965
5 Depreciation Run AFAB
6 Purchase Commissioning charges, etc. F-90
7 Creation of Main Asset Master to which Asset Under Construction is AS01

to be settled
8 Settlement of Capital Work-in-Progress AIAB
9 Transfer of APC Asset Values - Periodic Asset Postings ASKB
10 Reconciliation of Assets with General Ledger ABST2
11 Sale of Asset F-92
12 Sale of Asset Without Customer ABAON
13 Transfer of Asset ABUMN
14 Scrapping of Asset ABAVN
15 Post Capitalization of Asset ABNAN
16 Manual Depreciation ABMA
17 Unplanned Depreciation ABAA
Cost centres
Cost Centers Accounting is used to identify the costs incurred by an organization. Costs are tracked by
individual areas (Divisions) of the organization called cost centers. Cost centers have responsibility for
controlling costs.
SAP is facilitated to maintain the business transactions by assigning the cost center to the business transaction
while entering SAP and SAP providing a standard T. Code (S_ALR_87013611) for reporting the cost center base.
Internal Order
Internal order is a virtual place of collecting/pooling the costs of a activity/task. i.e. it is a method to collect
those costs and business transactions related to the task/activity. It is a means of tracking costs of a specific job,
service, or task. Periodically the costs which are pooled in an internal order can be settled to an asset or to a
cost center or to a GL Account or to an order.
An internal order is used to accumulate cost for a specific project or task for a specific time.
An internal order is therefore used for a short period with a specific deadline.
Business Process Matrix
Business Process Description

General Ledger bookings Book and enter transactions to the General Ledger
Vendor Processing Book and track vendor Invoice and payment processing
Asset Accounting Book and track the Asset and depreciation posting
Cash & Bank Process Cash and bank related transaction and do the
periodic reconciliation
GAPS
WRICEF
Logic / Considerations / Open Points

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Business Blueprint <Customer Logo>

<T_BBP_1.5> [Internal / Confidential/ Public] P a g e | 1< Project name / Name of document>

Version control History

SIGN OFF AND APPROVAL

Name Date (DD-MMM-YYYY)

<T_BBP_1.5> [Internal / Confidential/ Public] P a g e | 2< Project name / Name of document>

<T_BBP_1.5> [Internal / Confidential/ Public] P a g e | 3< Project name / Name of document>

2 KEY DATA STRUCTURE.............................................................................................................................................4

3.1 Process - General Ledger Accounting.............................................................................................................................................6

Process Description Business............................................................................................................................................................................6

Process Description –Business.......................................................................................................................................................................16

Process Description –Business.......................................................................................................................................................................30

Process Description –Business.......................................................................................................................................................................33

7 LOGIC / CONSIDERATIONS / OPEN POINTS........................................................................................................41

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[Elaborated project profile]

Key Data Structure

KDS Code Description

KDS Code Description

KDS Code Description

KDS Code Description

KDS Code Description

KDS Code Description

KDS Code Description

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Accounts Payable Straight Fit

Accounts Receivable Straight Fit

Cash and Bank Accounting Straight Fit

Asset Accounting Straight Fit

Cost center accounting Straight Fit

Internal Order Straight Fit

Process - General Ledger Accounting

Process Description Business

 Passing Financial Entries

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Process Description – SAP

General Ledger Masters

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 The below are three kinds of Chart of Accounts defined in OLAM:

Group chart of account” for consolidation of accounts at a group level &

Country chart of account” for local requirements

Functional Solutions: - General

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The Accounting entry is as follows:

Description Debit Credit

Withholding Tax (TPS)

TVA exemption certificate

Functional Solutions : Posting

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Reason code Description

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Automatic Updation through Integration with other SAP Modules like:

■ Recurring Entries (FBD1)

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Description Debit Credit

■ Invoice Verification (MIRO)

Accruals and Deferral’s

Functional Solutions : Closing

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