GGPL BBP Fi V3

BUSINESS BLUEPRINT FOR SAP ECC 6.
0
IMPLEMENTATION
AT
GUJARAT GLASS (P) LTD.
JAMBUSAR, KOSAMBA
RATMALANA, NATTANDIYA
MODULE FI
FINANCIAL ACCOUNTING
Document Information
Project Name: Gujarat glass private limited SAP ECC 6.0 Implementation
Project Director: Parthasarthy De Document Version No: 3.0

Phase: Business Blueprint Preparation Document Version Date: 27/ 10/2006
Quality Review Method: Peer Review
Prepared By: KR Mahesh Preparation Date: 15/ 09/2006
Reviewed By: Suriyanarayan Review Date: 17/10/2006
Distribution List
From Date Phone/Fax
KR Mahesh 27/10/2006 +91 9867743920
To Action* Due Date Phone/Fax
Mr A Balaji Acceptance/Signoff
HP V Rajshekar
* Action Types: Approve, Review, Inform, File, Action Required, Attend Meeting, Other (please specify)
Version History
Ver. No. Ver. Date Revised By Description Filename
Ver. 1.0 14.09.06 KR Mahesh New Document Draft Version GGPL_BBP_FI_Ver1.0.doc

Ver. 2.0 15.09.06 KR Mahesh Modified the document to add GGPL_BBP_FI_Ver2.0.doc
standard reports and GAPS
Ver. 3.0 27.10.06 KR Mahesh Modified the documents, GGPL_BBP_FI_Ver3.0.doc
explained processes in detail,
added flow charts, reports ,
GAPS added US and UK Blue
print
SAP ECC 6.0 Business Blueprint for Hewlett-Packard Page 1 of 157

GGPL Financial Accounting - confidential -
CONTENTS
1 Executive Summary....................................................................................................................................................... 7
1.1 Background........................................................................................................................................................... 7
1.2 Enterprise Resource Planning (Erp) Project Objectives................................................................................... 8
1.3 Overview Of Blueprint Phase .............................................................................................................................. 8
2 Financial Accounting Module ..................................................................................................................................... 10
2.1 Financial Accounting Purpose ....................................................................................................................... 10
2.2 Sap Finance Organisation Structure For Ggpl ................................................................................................ 11
2.3 Definition Of Sap Organisational Units ............................................................................................................ 12
3 Financial Accounting Basic Settings......................................................................................................................... 14
3.1 Chart Of Accounts.............................................................................................................................................. 14
3.2 Account Group.................................................................................................................................................... 14
3.3 Field Status Group.............................................................................................................................................. 15
3.4 Fiscal Year And Accounting Posting Period.................................................................................................... 16
3.5 Posting Period Variant ....................................................................................................................................... 17
3.6 Posting Key......................................................................................................................................................... 17
3.7 Document Type................................................................................................................................................... 19
3.8 Document Number Ranges................................................................................................................................ 20
3.9 Retained Earnings Account............................................................................................................................... 20
3.10 Exchange Rate Table.......................................................................................................................................... 21
4 General Ledger Overview............................................................................................................................................ 22
4.1 Overview.............................................................................................................................................................. 22
4.2 Scope Of Implementation .................................................................................................................................. 24
4.3 Gl Master Record................................................................................................................................................ 24
4.4 Line Item Display ................................................................................................................................................ 25
4.5 Account Balances............................................................................................................................................... 25
4.6 Gl Account Posting ............................................................................................................................................ 25
4.7 Reconciliation Of Subsidiary Ledger................................................................................................................ 26

4.8 Open Items .......................................................................................................................................................... 26
5 Gl Master Data.............................................................................................................................................................. 27
5.1 Gl Master Record................................................................................................................................................ 27
5.1.1Process Explanation..................................................................................................................................... 28
6 Gl Business Process ................................................................................................................................................... 31
6.1 Post And Park Documents................................................................................................................................. 31
6.2 Month End Processing....................................................................................................................................... 35
6.3 Year End Processing.......................................................................................................................................... 38
7 Accounts Payable ........................................................................................................................................................ 41
7.1 Overview.............................................................................................................................................................. 41
7.2 Implementation Scope ....................................................................................................................................... 42
7.3 Ap Master Record............................................................................................................................................... 42
7.4 Invoices And Credit Memos............................................................................................................................... 42
7.5 Payments............................................................................................................................................................. 43
7.6 Special Transactions.......................................................................................................................................... 43
8 Vendor Master Data ..................................................................................................................................................... 44
8.1 Ap-Master Record Non Purchasing .................................................................................................................. 44
8.2 Ap-Master Record Purchasing .......................................................................................................................... 45
9 Ap Business Processes .............................................................................................................................................. 46
9.1 Vendor Invoice Processing Non Purchasing ................................................................................................ 46
9.2 Vendor Invoice Processing Purchasing / Services ...................................................................................... 49
9.3 Vendor Credit Memo Processing ...................................................................................................................... 53
9.4 Vendor Down Payment Processing .................................................................................................................. 54
9.5 Manual Outgoing Payment Processing............................................................................................................ 55
9.6 Automatic Outgoing Payment Processing....................................................................................................... 57
9.7 Staff Advance And Claim Processing............................................................................................................... 59
9.8 Period End Processing ...................................................................................................................................... 60

10 Accounts Receivable................................................................................................................................................... 64
10.1 Overview.............................................................................................................................................................. 64
10.3 Ar Master Record................................................................................................................................................ 65
10.4 Invoices And Credit Memos............................................................................................................................... 65
10.5 Special Transactions.......................................................................................................................................... 65
10.6 Document And Account Display ....................................................................................................................... 66
10.7 Customer Credit Management........................................................................................................................... 66
11 Ar Master Record ......................................................................................................................................................... 67
11.1 Customer Master Record................................................................................................................................... 67
12 Ar Business Process ................................................................................................................................................... 68
12.1 Invoice Processing............................................................................................................................................. 68
12.1.1Process Explanation................................................................................................................................... 69
12.2 Credit Memo Processing.................................................................................................................................... 70
12.3 Downpayment Processing................................................................................................................................. 70
12.4 Incoming Payment Processing ......................................................................................................................... 71
12.5 Period End Processing ...................................................................................................................................... 73
13 Bank Accounting ......................................................................................................................................................... 77
13.2 Bank Master Data................................................................................................................................................ 77
13.3 Bank Data Accounting Process ........................................................................................................................ 80
13.4 Petty Cash Management .................................................................................................................................... 82
14 Taxes Country India Version ................................................................................................................................... 84
15 Mapping Of As Is Process In Blue Print Document.................................................................................................. 86
16 Reports ......................................................................................................................................................................... 90
16.1 Financial Accounting Reports........................................................................................................................... 90
17 Annexure-A: Summary Of Discussions..................................................................................................................... 99
18 Gaps ............................................................................................................................................................................ 113
19 Business Blue Print Financial Accounting Module Us & Uk .............................................................................. 114
19.1 Financial Accounting Purpose ..................................................................................................................... 114
19.2 Sap Finance Organisation Structure For Gg-Us & Ggi & Pir Uk .................................................................. 115
19.3 Definition Of Sap Organisational Units .......................................................................................................... 115

20 Financial Accounting Basic Settings Us & Uk ..................................................................................................... 117
20.1 Chart Of Accounts............................................................................................................................................ 117
20.2 Account Group.................................................................................................................................................. 117
20.3 Field Status Group............................................................................................................................................ 117
20.4 Fiscal Year And Accounting Posting Period.................................................................................................. 118
20.5 Posting Period Variant ..................................................................................................................................... 118
20.6 Posting Key....................................................................................................................................................... 118
20.7 Document Type................................................................................................................................................. 118
20.8 Document Number Ranges.............................................................................................................................. 119
20.9 Retained Earnings Account............................................................................................................................. 119
20.10 Exchange Rate Table........................................................................................................................................ 120
21 General Ledger Overview Us & Uk........................................................................................................................ 121
21.1 Overview............................................................................................................................................................ 121
21.2 Gl Master Record.............................................................................................................................................. 122
21.3 Line Item Display .............................................................................................................................................. 123
21.4 Account Balances............................................................................................................................................. 123
21.5 Gl Account Posting .......................................................................................................................................... 124
21.6 Reconciliation Of Subsidiary Ledger.............................................................................................................. 124
21.7 Open Items ........................................................................................................................................................ 124
22 Gl Master Data Us & Uk .......................................................................................................................................... 125
22.1 Gl Master Record.............................................................................................................................................. 125
23 Gl Business Process Us & Uk ............................................................................................................................... 126
23.1 Post And Park Documents............................................................................................................................... 126
23.2 Month End Processing..................................................................................................................................... 127
23.3 Year End Processing........................................................................................................................................ 128
24 Accounts Payable Us & Uk .................................................................................................................................... 129
24.1 Overview............................................................................................................................................................ 129
24.2 Ap Master Record............................................................................................................................................. 130
24.3 Invoices And Credit Memos............................................................................................................................. 130
24.4 Payments........................................................................................................................................................... 130
24.5 Special Transactions........................................................................................................................................ 131
25 Vendor Master Data Us & Uk ................................................................................................................................. 132
25.1 Ap-Master Record Non Purchasing ................................................................................................................ 132
25.2 Ap-Master Record Purchasing ........................................................................................................................ 132
26 Ap Business Processes Us & Uk .......................................................................................................................... 134
26.1 Vendor Invoice Processing Non Purchasing .............................................................................................. 134
26.2 Vendor Invoice Processing Purchasing / Services .................................................................................... 135
26.3 Vendor Credit Memo Processing .................................................................................................................... 135
26.4 Vendor Down Payment Processing ................................................................................................................ 136
26.5 Manual Outgoing Payment Processing.......................................................................................................... 137

26.6 Automatic Outgoing Payment Processing..................................................................................................... 138
26.7 Period End Processing .................................................................................................................................... 139
27 Accounts Receivable Us & Uk ............................................................................................................................... 141
27.1 Overview............................................................................................................................................................ 141
27.2 Ar Master Record.............................................................................................................................................. 142
27.3 Invoices And Credit Memos............................................................................................................................. 142
27.4 Special Transactions........................................................................................................................................ 142
27.5 Document And Account Display ..................................................................................................................... 142
27.6 Customer Credit Management................................................................................. Error! Bookmark not defined.
28 Ar Master Record Us & Uk ..................................................................................................................................... 144
28.1 Customer Master Record................................................................................................................................. 144
29 Ar Business Process Us & Uk ............................................................................................................................... 145
29.1 Invoice Processing........................................................................................................................................... 145
29.2 Credit Memo Processing.................................................................................................................................. 146
29.3 Downpayment Processing............................................................................................................................... 146
29.4 Incoming Payment Processing ....................................................................................................................... 147
29.5 Period End Processing .................................................................................................................................... 148
30 Bank Accounting Us & Uk...................................................................................................................................... 150
30.1 Bank Master Data.............................................................................................................................................. 150
30.2 Bank Data Accounting Process ...................................................................................................................... 152
30.3 Petty Cash Management .................................................................................................................................. 154
31 Reports Us & Uk......................................................................................................................................................... 156
31.1 Financial Accounting Reports......................................................................................................................... 156

1 EXECUTIVE SUMMARY
1.1 BACKGROUND
Gujarat Glass (P) Limited [GGPL] is a leading manufacturer of glass based products for pharmaceutical and
cosmetic industries. The manufacturing facilities are spread out in different parts of the world like India, Srilanka,
USA & UK.
The scope of implementation is in India & Srilanka. The specific solution in the scope of this document comprises
of Implementation of SAP ECC 6.0 covering Jambusar, Kosamba (in India) & Ratmalana (in Srilanka) plants.
N athandiya plant was not part of the scope originally. GGPL has requested to include the same in scope. We
have included N athandiya plant in blueprint document with express understanding that addition efforts required
will be suitably addressed via change management.
The GGPL product profile covers

Pharmaceuticals
Cosmetics/Toiletries
Stationery
Liquors
Sand
Polythene sheets
The production capacities at Kosamba Plant are

5 Furnaces and 18 lines
The production capacities at Jambusar Plant are
The production capacities at Ceylon glass Plant are
The production capacities at Nathandiya Plant are
Two sand processing units & one Polythene sheet machine.
Jambusar plant is the world's largest pharma amber bottles manufacturing plant at a single location. In all, the 7
furnaces of the company with 27 automatic production lines, many of which are electronically controlled state-of-
the-art machines, produces 7 million glass bottles and vials every day throughout the year for quality conscious
customers in the healthcare and cosmetics industry.

Major expansion plans for capacity increase are already on anvil. After successful commissioning of those
projects, GGPL will further consolidate its position as market leader in Glass Industry.
GGPL has decided to implement an integrated ERP solution and have selected SAP R/ 3. GGPL is implementing
SAP R/3 ECC 6.0. HP is the Implementation Partner for SAP R/3 implementation.
The R/3 Modules, which are being implemented in Phase 1, are

FI/CO Financial Accounting and Controlling
SD Sales and Distribution
PP Production Planning & Control
MM Materials Management
QM Quality Management
WM Warehouse management
HR Human resources
1.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES
Objectives for the implementation project are:

Implement SAP R/3 standard business processes
Adhere to business basic's and use SAP as a model for best business practices
1.3 OVERVIEW OF BLUEPRINT PHASE
This document summarizes the findings of the Hewlett-Packard (HP) consulting team, which conducted
requirement analysis of GGPL for the SAP R/ 3 system. The information was gathered through interviews
conducted at the GGPL plant with the managers, key users and personnel from Information Systems, as well as
through reviews of business processes, business procedures, documentation and relevant reports using Q & A db
from Value SAP methodology.
The immediate purpose of the analysis is to prepare to move forward rapidly with the implementation of GGPL's
R/ 3 system. At the conclusion of the blueprint, the HP consultants will determine the SAP functionality required to
run the GGPL business.
The Blueprint and its associated appendices present a summarized perspective of all functional business
processes that will be implemented. Blueprint document will serve - from this point forward the dual role of both
official project scope as well as system acceptance criteria.

The body of this document describes the organizational structure, enterprise area, and R/ 3 functional process
flows to be implemented at GGPL. Generally, requirements that can be met using standard R/ 3 functionality
through routine configuration tasks are not explicitly documented. However, certain key requirements are
explicitly identified and summarized to highlight their importance to GGPL and to document the approach
proposed to meet the requirement.
One section of the report summarizes identified gaps. The project team should discuss this list with agreement on
the approach going forward. Acceptable approaches may require:
Additional programming or technical effort
Recognition and acceptance of procedural changes ("W orkarounds") using standard R/ 3 Additional
resource commitment
The deferral of a feature to a later phase
Simply the recognition and acceptance of a limitation.
The Blueprint reiterates the R/ 3 organizational structures that have been identified and will serve as the basis for
the initial configuration activities. The HP team believes that R/ 3 can accurately model GGPL's organizational
requirements.
N o significant configuration choices have been identified that will prevent the future implementation of additional
capabilities within the R/3 environment.
The information gathered and documented in the Blueprint is sufficient for the team to go forward into the
Realization phase. However, it is critical that both the HP and GGPL team agree on the scope of the project as
presented in this document. Acceptance - by both teams - is required to move the project into the next phase.

2 FINANCIAL ACCOUNTING MODULE
2.1 FINANCIAL ACCOUNTING PURPOSE
The Financial Accounting (FI) application component fulfills all the international requirements that
must be met by the financial accounting department of an organization. It provides the following
features:
Management and representation of all accounting data
All business transactions are recorded according to the document principle, which provides an
unbroken audit trail from the financial statements to the individual documents.
Open and integrated data flow
Data flow between Financial Accounting and the other components of the SAP System is ensured by
automatic updates.
Data is available in real time within Financial Accounting. Postings made in the sub ledgers always
generate a corresponding posting in the general ledger.
Integration:
Integration of Financial accounting with other components
All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR)

components are posted real-time to Financial Accounting by means of automatic account
determination. This data can also be passed on to Controlling (CO).
This ensures that logistical goods movements (such as goods receipts and goods issues) are
exactly reflected in the value-based updates in accounting.
Integration within Financial Accounting
Every posting that is made in the sub ledgers generates a corresponding posting to the assigned
G/ L accounts. This ensures that the sub ledgers are always reconciled with the general ledger.
Following are the sub components of Financial accounting applications which are considered for
Phase I implementation in FI.
General Ledger (FI-GL)
Accounts Payable (FI-AP)
Accounts Receivable (FI-AR)

Bank Accounting (FI-BL)

2.2 SAP FINANCE ORGANISATION STRUCTURE FOR GGPL
To cater for external and internal accounting requirements, SAP database is designed with
organization structure objects, which are configurable according to user s requirements. Overall,
these organization objects, such as company code, are hierarchically integrated to ensure that any
business data are properly stored and linked within the organization.
Considering the modules to be implemented for GGPL, the following Financials organizational
structure object is relevant for external accounting purposes:
The following diagram will explain the proposed structure for GGPL.
Organizational Units with GGPL US & UK

Company
Client: 400
Company Code
GGPL CGCL PIR UK GG US GGI
RTH NTH HO FTR WTN MLD

HO KOS JAM BADI RURK
Business Area /
Plant
All of the Company Codes within a company will have the same Chart of Accounts
and Fiscal Year Variant.
27-Oct-06 Confidential - For Internal Use Only 3

2.3 DEFINITION OF SAP ORGANISATIONAL UNITS
Definition:
COMPANY:
An organizational unit in accounting which represents a business organization in a particular country
An organizational unit for which individual financial statements can be drawn up according to the
relevant commercial law
A Company can consist of one or more Company codes
GGPL is considered as Company in SAP .
Currency of the Company GGPL will be INR
COMPANY CODE:
A company code is the smallest organizational unit for which complete, independent accounting can
be carried out. This includes the entry of all transactions subject to posting and the creation of all
items for legal individual financial statements, such as the balance sheet and the profit and loss
statement.
Company code application in GGPL

A company code needs to be created for each of the companies and all the posting from various
modules will be updated to the individual company code for reporting purposes.
The legal reporting of the respective country will be in respective company code currency.
Naming convention
In SAP system, a four-character field is used to denote the company code. As for GGPL scope of
implementation, Following are the proposed naming convention for GGPL.
Company Name Company Code Currency Company Code
GGPL India INR GGPL
CGCL Srilanka LKR CGCL
BUSINESS AREA:
Organizational unit of external accounting that corresponds to a specific business segment or area of
responsibility in a company. Movements in value entered in Financial Accounting are assigned to
business areas.

Financial statements can be created for business areas for internal purposes.
Business areas are used in external segment reporting (over and above company codes), based on
the significant areas of operation of a company (for example, product lines, branches)You define
business areas if you wish to create a balance sheet and a profit and loss statement for internal
areas, in addition to company codes. Using Business Area Financial reports can be generated for
respective plants where as SBU wise reporting for plant is addressed in CO module.
Business Area application in GGPL

Considering the legal reporting requirement and to have uniformity across the companies, we have
treated Business Area as location and we need to identify the naming convention for each of the
business area after discussion and finalization. In SAP system four character fields is used to denote
business Area.
Business Areas Location Company Code
1000 GGPL-Head Office GGPL
1100 GGPL-Kosamba GGPL
1200 GGPL-Jambusar GGPL
1300 CFA- Roorki GGPL
1400 CFA-Baddi GGPL
4000 CGCL-Head Office CGCL
4100 CGCL-Rathmalana CGCL
4200 CGCL-Nattandiya CGCL
PLANT:
A plant is a place where either material is produced or goods and services provided and Material
Valuation takes place. Considering the requirement we are treating manufacturing location as plant
for all the company codes.
For GGPL Plant is created for following locations, they are
GGPL India Head Office
GGPL India Kosamba
GGPL India Jambusar
CGCL- Srilanka Rathmalana
CGCL- Srilanka Nattandiya
CGCL- Srilanka Head office

3 FINANCIAL ACCOUNTING BASIC SETTINGS
3.1 CHART OF ACCOUNTS
Definition
Chart of account is a list of all G/ L accounts used by one or several company codes. It is shared by
Financial Accounting as well as Controlling. For each G/ L account, the chart of accounts contains
the account number, account name, and the information that control how an account functions and
how a G/L account is created in a particular company code
Chart of account will be created for GGPL (GGPL & CGCL). Chart of Accounts list is prepared
keeping in view of financials reporting for GGPL. Chart of accounts are grouped together to identify
Balance Sheet and P&L items. GGPL Chart of accounts consists of 7 digits. GGPL will be using
common Operating Chart of accounts for all the Company Codes. This will facilitate in
standardizing GL accounts list across company codes. Only company code account data with
respect to currency will be different across GGPL company codes.
The Operating Chart of Accounts is named as GGPL (name of GGPL chart of account).
The Grouping of GL accounts are shown in point 3.2 for Account Group.
3.2 ACCOUNT GROUP
Definition
Account group is used to classify certain G/ L accounts of same features in the chart of accounts, for
example assets and liabilities. On the other hand, proper number range can be assigned such that
accounts of same nature will appear next to each other in the chart of accounts.
Recommendation
To have a better control over the account codes, an Account Group is created for each different
grouping of accounts as listed under Chart of Account. The groupings are normally made with
reference to Balance Sheet and P&L reporting layout.
Following is List of Account Group for GGPL Chart of Accounts.

3.3 FIELD STATUS GROUP
Definition
SAP provides for definition of control parameters called Field Status Groups, which control
maintenance of various fields in the transaction screens during input. In R/ 3 system, it is possible to
specify the field status via field status group, which is specified for each G/ L account. In order to
minimize definition of field status group, R/ 3 allows referencing to a same set of field groups via
field status variant.
Field status group determines the status of each field, which user can enter the value during posting.
The status can be either:
Optional
Mandatory

Suppressed
A particular field status group may be assigned to a particular G/L code.
Field Status Variant 0001 will be created for GGPL and below mentioned groups are assigned to
this variant.
Following are the list of Field status group to be used for GGPL. Incase any additional Group is
required to be added during configuration time , same will be added and attached to variant 0001.
Field Status Group Description

G001 General (with text, allocation)
G002 Material consumption accounts
G003 Bank accounts
G004 Material accounts
G005 Clearing accounts
G006 Receivables/payables clearing
G007 General (obligatory text)
G008 MM adjustment accounts
G009 Freight/customs provisions/clearing (MM)
G010 Accounts for down payments made
G011 Change in stock accounts

G012 Accounts for down payments received
G013 Revenue accts (with profit centre)

G014 Tax office clearing accounts
G015 Goods/invoice received clearing accounts
G016 Amortization accounts

G017 Inventory accounting material stock acct
G018 Investment support accounts
G019 Reconciliation accounts
3.4 FISCAL YEAR AND ACCOUNTING POSTING PERIOD
Definition
A fiscal year is generally a period of 12 months for which the company produces financial
statements and takes inventory. It may or may not correspond to the calendar year.

A fiscal year variant specifies the number of periods and special periods in a fiscal year and how
the system is to determine the assigned posting periods.
GGPL fiscal year is April March which is non calendar Fiscal Year. The end of a period is the last
day of the month, and the end of the year is 31 st March. SAP fiscal year variant V3, with 12
Accounting periods for the 12 months and 4 special periods (13-16) recommended to be used.
GGPL is having common financial year closing for India and Srilanka
Fiscal Year Variant Description

V3 Non Calendar Year, 4 special periods
V3 is assigned to both the company code of India and Srilanka. This will also help in taking
consolidated financial reporting for GGPL Group Company.
3.5 POSTING PERIOD VARIANT
Definition
Once a fiscal year is defined, it is possible to specify whether a period is allowed for posting or not.
In order to standardize maintenance of accounting period especially across the group, SAP R/ 3
system allows the specification of open or close status to be maintained via a posting period variant.
It is proposed that one posting period variant will be used for one company code. As Period
opening and closing can be done at respective companies. Following posting period variants will
be created for GGPL.
Posting Period Variant Name Company code

1000 Gujarat Glass pvt ltd -India GGPI
2000 CGCL- Srilanka CGCL
3.6 POSTING KEY

Definition
A posting key is a two-character numerical key that controls the entry of line items. It is defined at
client level and therefore applies to all company codes in SAP system. It is differentiated by the
account types. It also controls the posting at the line item level.
Standard SAP posting key will be used. Attached is the list of standard posting keys which can be
used.
Posting Key Description Debit/Credit Account Type

01 Invoice Debit Customer
02 Reverse credit memo Debit Customer
03 Bank charges Debit Customer
04 Other receivables Debit Customer
05 Outgoing payment Debit Customer
06 Payment difference Debit Customer
07 Other clearing Debit Customer
08 Payment clearing Debit Customer
09 Special G/L debit Debit Customer
11 Credit memo Credit Customer
12 Reverse invoice Credit Customer
13 Reverse charges Credit Customer
14 Other payables Credit Customer
15 Incoming payment Credit Customer
16 Payment difference Credit Customer
17 Other clearing Credit Customer
18 Payment clearing Credit Customer
19 Special G/L credit Credit Customer
21 Credit memo Debit Vendor
22 Reverse invoice Debit Vendor
24 Other receivables Debit Vendor
25 Outgoing payment Debit Vendor
26 Payment difference Debit Vendor
27 Clearing Debit Vendor

Posting Key Description Debit/Credit Account Type
28 Payment clearing Debit Vendor
29 Special G/L debit Debit Vendor
31 Invoice Credit Vendor
32 Reverse credit memo Credit Vendor
34 Other payables Credit Vendor
35 Incoming payment Credit Vendor
36 Payment difference Credit Vendor
37 Other clearing Credit Vendor
38 Payment clearing Credit Vendor
39 Special G/L credit Credit Vendor
40 Debit entry Debit G/L account
50 Credit entry Credit G/L account
80 Stock initial entry Debit G/L account
81 Costs Debit G/L account
83 Price difference Debit G/L account
84 Consumption Debit G/L account
85 Change in stock Debit G/L account
86 GR/IR debit Debit G/L account
89 Stock inward movement Debit Material
90 Stock initial entry Credit G/L account
91 Costs Credit G/L account
93 Price difference Credit G/L account
94 Consumption Credit G/L account
95 Change in stock Credit G/L account
96 GR/IR credit Credit G/L account
99 Stock outward movement Credit Material
3.7 DOCUMENT TYPE

Definition
A document type is a key that is used to classify accounting documents and distinguish between
business transactions to be posted. The document type is entered in the document header and
applies to the whole document.
The SAP standard document types will be maintained. However, it is possible to add additional
document types to further differentiate specific posting for analysis purposes and same will be added
if required.
3.8 DOCUMENT NUMBER RANGES
Definition
A document number range is linked to the document type via a unique key. It identifies the document
number for each document type posted in the SAP.
The document number ranges are specific for each document type. The naming convention on the
document number ranges can be as follow:
XX YYYYYYYY
Where:
XX = refer to fiscal year
YYYYYYYY = document running number
The number ranges will be set for each company code based on the above coding structure and will
be assigned to Company Codes of GGPL.
3.9 RETAINED EARNINGS ACCOUNT
Definition
Before creating income statement accounts in the chart of accounts, it is required to specify the
retained earnings account to which profits or losses are carried forward. There is a special program
designed to carry forward these amounts to this account, which is part of procedures to open of a
new fiscal year in the system.
In SAP system, every income statement account is assigned to a retained earnings account via
income statement account type. Hence it is actually possible to have more than one retained
earnings account by creating more than one income statement account type.
However, most companies have only one retained earnings account. As such, only one income
statement account type is recommended for GGPL.

3.10 EXCHANGE RATE TABLE
Definition
Depending on the relevancy, exchange rates must be defined in the system. The rate is required for
the following:
To translate foreign currency amounts when posting or clearing, or to check the manually
entered rate
To calculate gains or losses from exchange rate differences
To valuate open items in foreign currency and foreign currency balance sheet accounts
Frequency of maintaining the exchange rate is according to company specific requirements or at

different intervals according to exchange rate movements. As such, the Accounts Department will be
responsible to maintain the table as and when required.
Recommendation
Standard SAP exchange rate table will be used. GGPL will be using average rate for the month, i.e.
on end of the month, the average rate for that month is maintained for the purpose of valuation of
foreign currency balance sheet items, vendors and customers. The end of month rate will be the next
month beginning rate and all transactions related to profit and loss accounts for next month are
based on this rate.

4 GENERAL LEDGER OVERVIEW
4.1 OVERVIEW
This section outlines the master data structures, business processes and related configuration
parameters required for the General Ledger module for GGPL.
However, General Ledger module is also heavily involved in other business process designs from
other modules and how they post into the General Ledger. These issues are covered in the relevant
sections in Asset Accounting, Account Receivable, Account Payable, Purchasing, Inventory
Management and Logistic Invoice Verification.
The central task of G/L accounting is to provide a comprehensive picture for external accounting and
accounts. Recording all business transactions in a software system that is fully integrated with all the
other operational areas of a company ensures that the accounting data is always complete and
accurate.
Key improvements to be realized from this implementation include:
Reduction in data redundancy: The shared master data concept in SAP will inevitably reduce

duplication of data stored and used in the business processing
Greatly reduced administration: through the elimination of re-keying, reconciliation and manual
collation of data. This gives the finance staff the time to analyze the figures rather than spending
the majority of their time performing administration tasks
Better control of data: through the validation of the data at point of entry.
Seamless Integration: a complete integrated system will provide better control and reduce data entry
and errors and also provides a complete audit trail for the organization
The processes and its integration can be summarized in a diagram as follows:-

4.2 SCOPE OF IMPLEMENTATION
The functions identified to be implemented in this phase of implementation from General Ledger
module in SAP R/3 system are as follows:-
Area To be Process Related R/3 Functions

General Ledger GL Account Maintenance GL Master Record
Open Item Clearing Account Clearing
Foreign Currency Valuation Period end processing
Standing/Recurring Journal Entry GL Document posting
Accrual/Reversal Processing GL Document posting and
processing
Balance Sheet and Profit & Loss GL Information System
Statements
4.3 GL MASTER RECORD
Each account used for posting is defined in the general ledger and contains information that reflects
or describes its function. This information is stored in the master record of an account. It controls how
business transactions are entered and posted to the account as well as how posting data is
processed.
G/L account master data is divided into two areas:
Chart of accounts area:

This area contains information that applies to the complete master record (G/ L account number,
account name, P&L account, or balance sheet account). In addition, you use it to store data that
controls the creation of a master record in the company code (account group and screen layout).
Company code-specific area:

This area contains data that controls the entry of business transactions for the related account
and account management in the respective company code (currency; open item management).

4.4 LINE ITEM DISPLAY
A line item display provides an overview of the open, cleared, and parked items from an account.
You determine which information about the individual line items is to be displayed on the screen.
However, you can also change the view dynamically after the list of items has been processed.
Various sort options (by assignment, document number, or clearing data) allow you to interactively
select, vary, total and the required documents on the screen. Search and summarization functions are
available on the initial screen as well, so it is not necessary to display all items. Line item display
functions are available for:
An account in a company code
You can switch from the line item list to the document display at any time.
A line item list can also be exported and processed further using a spreadsheet. You can file it as a
PC file or you can store it directly in Microsoft Excel format and then process it in Excel.
4.5 ACCOUNT BALANCES
W henever documents are posted to an account, the system automatically updates the account
balance. For GL accounts with line item display, it also indicates which items from a document are
posted to the account. You can display the account balance and depending on the account
attributes the line items for each account.
4.6 GL ACCOUNT POSTING
Each transaction relevant to posting must be entered in the originating area of the company in
compliance with all applicable posting rules. The precise, reliable, and complete recording and
entering of all required data is only possible at the point of data origin. This data priority means that
both the originating and responsible areas of all company entities are monitored.
General ledger postings may be the result of:
Operational transactions (for example, issue of goods causes material issue posting) if the SAP
Materials Management (MM) system is active and integrated
Transactions originally assigned to the general ledger, if the General Ledger (FI-GL) system is
active

At the same time, interrelationships with Controlling and its components can be taken into account.
The extent and type of the integrated systems used determine how entries, account assignments, and
updates are processed for business transactions. The important factor is that the posting documents,
together with the original data and account assignments from the operative transactions, are
simultaneously reflected in the general ledger through subsidiary ledgers.
4.7 RECONCILIATION OF SUBSIDIARY LEDGER
The chart of accounts, with its primary asset and balance sheet accounts provides the central posting
link between the general ledger and the related subsidiary ledgers. The general principle of posting
via reconciliation accounts is that each business transaction is simultaneously reflected in the
subsidiary ledger as a line item and as a totals item in the general ledger via the assigned balance
sheet account. As a result, updating is timely and automatic. Moreover, it ensures that:
General ledger and subsidiary ledgers are always reconciled

Integrated report displays can be generated from the financial statement using the subsidiary
ledgers down to single document level
The effects of each posting procedure on assets and profit and loss are used immediately by the
financial information system
4.8 OPEN ITEMS
Open item management can be activated for each G/ L account. It allows you to clear debit and
credit postings by document (groups). Accounts with open item management can be updated when
business transactions are processed

5 GL MASTER DATA
Definition
General Ledger (G/ L) account master records contain the data that is always needed by the general
ledger to determine the account s function. The G/ L account master records control the posting of
accounting transactions to G/L accounts and the processing of the posting data.
General ledger accounting is divided into two portions in SAP. One is the creation of G/L accounts
at the Chart of Accounts (COA) level and the other is the creation of the G/ L account in the
company code level.
Among the fields to be maintained during the creation of G/L account in the COA level are:
Account group
Whether the account is a balance sheet or profit & loss account
Long text and short text of the description
Among the fields to be maintained during the creation of G/ L account in the company code level
are:
Account currency
Reconciliation account type
Open line item management
Line item display
Field status group
Sort key
To control and standardize the G/ L accounts, it is highly recommended that the creation of G/ L
accounts to be centralized for GGPL. This recommendation entails the need to devise necessary
approval and communication mechanism to govern the process.
It is important that all requirements are carefully considered before deciding to create a new G/ L
account or suggesting an alternative G/L account. Among others, key issues to be looked into are:
business and accounting needs
integration to other modules e.g. automatic posting
impact on current financial or management reporting
similarity to other existing G/L account

5.1.1 PROCESS EXPLANATION
Presently GL accounts are created separately for different company codes and GL accounts are
identified by the HO and created at all locations. W ith the following recommended process, GL
accounts creation will become standardized and Controls can be centralized.
The following processes recommended to be used for GL master data creation

Step Procedures
1 W hen the need arise, the Accounts might need to create
GL account.
2 Before GL account can be created, an input form needs

to be manually completed and submitted for approval.
3 For creation only, check SAP to ensure that the GL

account does not exist in the system.
4 Approver to decide whether the GL account needs to be

created in SAP. Approve the maintenance form.
5 Create GL account at COA level in SAP. For P&L account

creation only, the cost element is automatically created in
CCA.
Generally, COA level consists of:

Account group
W hether the account is a balance sheet or profit
& loss account
6 Display GL account at COA level in SAP.
7 Complete the GL account creation at company code

level.
Generally, company code level consists of:

Account currency
Previous account no.
Line item display
Sort key etc.
Field status group
8 Display the master record at COA and company code

level.
9 Edit the automatically created primary cost element if the

account is P+L type.
By clicking at the edit cost element button, you have to

specify / edit the following:
Valid from
Name
Description
Cost element category
10 Complete, sign and date GL maintenance form. File the

maintenance input form.
11 File GL master data maintenance form for future

reference.
Attached below flow chart for creating GL master record

Start
Change, Block
Identify need to Create, Change
or Block GL account
Create
Complete the master data

maintenance form
Yes
Possible
duplication
Inform the
No user and
end process
No
Approve form
Yes
Maintain GL account at
COA level
Display account at
COA level
Maintain GL account
at Co code level
Display account at Co
code level
No Yes Complete and

Is it OK file master
data form
End

6 GL BUSINESS PROCESS
Requirements and Expectations

Accounting of business transaction on daily basis and reporting of the financials as per the
requirement. To do reconciliation of accounts on time and preparing of schedule on time. Need to
have proper audit trial for the documents and have integrated system to reduce manual errors in
accounting.
The Organizational need of financial accounting is to report for external purposes to meet legal
reporting purpose.
6.1 POST AND PARK DOCUMENTS
Business Mapping to R/3

In a manual process, ledger books are maintained to store accounting entries. In contrast, SAP uses
document principle whereby accounting entries are kept in document database and can be referred
to via document number. On data integrity side, SAP allows only balanced transactions to be
posted. Additionally, changes are allowed for permitted fields such as text information.
It is possible to post G/L documents via:
G/L document posting
Recurring entry
Account assignment model
Reference document
In principle, this process is equivalent to manual bookkeeping entry. However SAP automates it with
additional functionality especially for integration of G/ L with other modules. Minimum data normally
required to post a G/L document are:
Document header information e.g. posting date, posting period, document date etc.
G/L account number
Cost object assignment (for profit and loss elements)
Amount
Since sometimes not all the required data are immediately available, SAP also provides an option to
temporarily keep the posting as statistical entry. Upon completion of all required data, the entries can be
posted. This functionality is termed as Parking Document.
It is recommended for GGPL to use the Park document functionality to ensure that the document posting
process will be monitored and postings are done after checking have been done.

Presently GGPL is using Account code, Sub account code concept to post the General ledger
transactions. In Addition to that they are also doing the other activities like, Accruals , Journal entries
, Payroll accounting, Inventory accounting , revenue recognition , inter unit transactions and inter
company transactions , Bank Transactions , Cash transactions through GL accounts.
The SAP GL Process is not using the Sub account code concept instead; transactions are accounted
through GL accounts to a cost center and profit center or to a business area combination.
SAP GL Process also takes care of Existing GL process of GGPL and in addition, it has integration
with MM, SD, CO and HR modules. Purchases, Sales, Inventory postings, Payroll postings are
tightly integrated with GL and other modules and entries are reconciled always. All Tax related
accounts, revenue, inventory accounts, Payroll accounts are having account determination and GL
accounts are defaulted during posting of these transactions.
Presently GGPL is using Inter Unit transactions, they transfer funds to respective bank accounts of
plants through swap transfer, they make payment to vendor but bills are booked in respective plants,
they make payment on behalf of employees travel expenses and make transfer entries to respective
plants, they transfer the material from one plant to other plant. In SAP this is address using business
area clearing accounts concept and will overcome the existing tedious process of monthly
reconciliation of inter unit transactions by HO and Plants. GL accounts needs to be created for
location clearing accounts and entries are knocked off using account clear option when the
intimation and bills are received from HO. Since the requirement is to have financial statement at
plant level, business area wise accounting is required for each of the location.
Presently GGPL India is transferring the finished goods stock to their subsidiaries basically CGCL,
GG-US and GGI. For the purpose of GGPL India local reporting purpose these transactions are
shown as the sales made to respective countries and accordingly Customer and Vendor accounts are
created at respective locations. Since GGPL is a group company in India and is having majority
stake in subsidiaries, it has to show group company financials along with the stand alone financials
of GGPL India. Presently in SAP we are treating stock transfer from India to any other subsidiary
outside India as sales in GGPL India books and customer and vendors are created for them
separately, this will meet the requirement of GGPL India legal reporting of financials. In SAP group
company consolidation is addressed through SEM Consolidation, SEM- Consolidation is used for
business consolidation of group company , which will take into consideration, Inter Company Sales
Elimination, Inter Company Purchases elimination , Currency Valuation at group level , it also allows
to pass manual adjustment entries at group level for consolidated units. In SAP for GGPL we have
using group currency concept which is in INR, to ensure that all transaction data are converted into
group currency at the time of transactions. Based on group currency, financial statement Versions of
respective company code, consolidated units can be grouped and consolidation configuration can
be done. How ever, SEM-consolidation is part of Phase II and detailed process of consolidation is
explained and addressed.

Presently GGPL is selling its product to Domestic and Overseas Customers. Revenue is recognized
when shipment happens from respective GGPL plants and domestic and export revenue is identified
separately. In SAP revenue recognition happens when billing document is generated at respective
plant. Accounting entries are automatically posted to Revenue account and Debtors account at the
time of generation of billing document from SD Module. Domestic and Export Revenue are booked to
respective GL accounts based on nature of sales through account determination maintained in SD
Pricing Procedure/Condition type.
Presently GGPL is procuring Raw material for manufacturing activity, Inventory valuation for Raw
material is at weighted average and finished goods and semi finished goods at cost or net
realizable value which ever is less. In SAP for GGPL, Raw material purchased from domestic and
overseas vendor is valuated at weighted average and finished and semi finished goods are valuated
at standard price. Accounting entries for reduction of RM inventory and consumption for issues to
production is accounted through MM and FI integration while finished goods and semi finished
goods valuation entries are triggered from FI and Product costing integration. GGPL is also importing
the caps and brushes as traded items and selling it along with the finished goods. In SAP traded
materials are valued at moving average and accounted as trading purchases. Trading materials sold
to customer are treated as revenue. In addition to Raw material and traded items, GGPL is also
purchasing stores and spares , packing materials, furnace oil which are treated as consumables and
account assignment are maintained at Material level for these items in SAP, so that system will trigger
automatically GL account while doing GR/IR. GGPL is also purchasing moulds and manufacturing
moulds. For moulds which are purchased are valuated at moving average and for the in house
manufacturing of moulds it is at standard rate.
Presently Payroll postings are generated through payroll system and posted to GL accounts after
verification. In SAP Payroll postings will be done through payroll module. GL accounts for Basic
salary, HRA, Benefits etc will be assigned to each of the wage type in payroll system through
symbolic account assignment and system will automatically identify the GL accounts when month end
payroll postings happen. There will be always reconciliation between payroll data and GL account
data. All details regarding the payroll data will be available in payroll and HR system. All Employee
related loans schedule are maintained in HR/Payroll system and is available any point of time.
Presently Foreign currency valuation entries are not done automatically for GGPL. In SAP foreign
currency valuation for foreign currency GL balances, foreign currency open items of vendor and
customer are done automatically, realized and unrealized loss or gains are calculated and posted to
GL accounts through account determination maintained in customization. GGPL will be using foreign
currency valuation with reversal option for monthly valuation.
Presently Interest on Bank OD balances are calculated manually and posted if required. In SAP
interest calculation is done automatically by system for Bank OD balances and entries can be posted
to GL accounts through account determination, how ever GGPL requirement is limited to calculate the
interest only and not to post.
Postings to GL account triggers through integration of various models as explained above. Detailed
process is explained in other related module for cross functional postings like MM, SD, HR and CO.

The following function shall be used to handle any GL document processing in SAP for GGPL,
among other:
Reclassification posting
Accrual posting
Adjustment posting
Monthly provision (e.g. bonus provision)
The following processes are proposed for GL document posting:

Step Procedures
1 Assign appropriate account codes and other required
information on the journal voucher.
2 Determine the nature of transaction and the relevant

document type.
3 Create park journals based on the journal voucher.
4 Record document number generated by the system.
5 At the end of every working day, perform daily checking

of parked journals (Generate Parked Document Report).
6 Edit/Verify parked documents.
7 Post parked documents if there is no error found.
8 File the journal voucher or the supporting document.
Description of Improvement
Park and Post option is one of the best options, as this has the facility to store the document with
document details for any number of documents and also got flexibility to take reports on the parked
documents. Users need not waste efforts on re entering the document.
Inter unit transaction are simplified as business area clearing will be used for each inter unit transfers

Recurring Documents, Account Assignment Model, Reference posting documents are very help full
option in SAP, which will reduce time of processing and help in doing value addition.
Special configuration consideration

N o special configuration required. N ormal SAP configuration with N umber ranges and Document
Types are used.
Description of Functional Deficit

No deficits
Approaches to covering Functional Deficit

Not Applicable
6.2 MONTH END PROCESSING

Month-end closing comprises all activities involved in closing a posting period. Accounting period is
a division of a company s fiscal year.
Each posting into the system must be associated with an accounting period. This is to ensure that
each transaction can be reported in the corresponding period. In the same token, periods must be
controlled to ensure validity of the reports.
Explained below month end closing process for GGPL

For GGPL April to March is identified as financial year with 12 accounting period and 4 special
periods and closing activity will happen every month. Presently monthly closing is happening in
decentralized manner at respective locations and data is sent to Head office for upload. Head office
uploads the data and closed the period for that month. In SAP period closing activity is centralized
and there is no need to upload the data from different locations. Data is updated real time and
period control can be at Head office level. This will reduce the closing time monthly and gives time
for data analysis further.
Attached flow chart diagram for month end processing and process explanation document

The below proposed month-end processing shall be used as a guideline for this blueprint as the
activities may not be finalized until Realization phase
Step Procedures
1 Run payroll postings to update FI.
2 Execute the recurring entry program and post the entries
3 Complete all the outstanding journal entries related to

month end closing.
4 To prepare and post accrual journals.
5 To execute accrual reversal entries.
6 Execute depreciation run to compute and post

depreciation.
7 Execute GR/ IR clearing entries to clear the matched

GR/IR clearing transactions.
8 Run foreign currency valuation transactions

9 Close posting period to ensure no transaction can take
place and open new posting period.
10 Generate monthly reports:

Trial Balance
Profit & Loss statement
Balance sheet etc.
Since SAP is an integrated system, Data flow happens in real time to finance from all the modules,
and system is updated always. This helps in closing monthly, accounts on time with greater

accuracy. This also helps in giving the required reports on time and there are many standard reports
which will meet the requirement. Closing schedule preparations will become simpler and valuation
procedures will get standardized and there will be uniformity in procedure. Reporting data can be
drilled down up to the document level by just clicking the buttons. Reports can be directly down
loaded to system or can be converted to several formats provided by SAP.
Document control principle always ensures postings are matched and posted.
Data is available in system GL account wise with the complete audit trial.
It is possible to view Monthly Trial Balance, P&L and Balance Sheet reports for Plants also.

Types are used.

No deficits
Not Applicable
6.3 YEAR END PROCESSING

The SAP System offers a range of reports with which you can carry forward balances into the new
fiscal year. During this process the profit and loss accounts are carried forward to retained earnings
accounts. The balances on the balance sheet accounts are simply carried forward into the new fiscal
year. You do not have to create special opening financial statements.
Any postings you make in the old fiscal year automatically adjust the relevant carry-forward balance.
You do not have to close the old fiscal year and make the closing postings before opening the new
fiscal year.

The Present Year end process of GGPL is similar to the Month end process explained in earlier point
6.2.1. In SAP Year end process is again similar to the month end process. But additional activity of
Balance carry forward program is used to carry forward the balances and any entries posted there
after to the previous year will automatically updates the next year opening balance. Presently GGPL
is not having the option of automatic carry forward and adjustment of balances on subsequent
postings.
The below proposed year end processing shall be used as a guideline for this blueprint as the
activities may not be finalized until Realization phase

Step Procedures
1 Execute year end closing program on the 1st day
working day after year end. After Plants completing all
the entries and confirming of the same. And HO
Competing all the entries and related process.
2 To post year end provisions e.g. provision for customer

doubtful debt.
3 Post additional posting in special period.
4 After confirmation of completed all the additional

postings. HO Close the posting period / fiscal year
5 Generate year end reports:

Trial Balance
Profit & Loss statement
Balance sheet etc.
and system is updated always. This helps in closing monthly, quarterly and Yearly accounts on time
with greater accuracy. This also helps in giving the required reports on time and there are many
standard reports which will meet the requirement. Closing schedule preparations will become simpler
and valuation procedures will get standardized and there will be uniformity in procedure. Reporting
data can be drilled down up to the document level by just clicking the buttons. Reports can be
directly down loaded to system or can be converted to several formats provided by SAP.
Balances are automatically carried to next year by just selecting the balance carry forward program.
Retained earnings are calculated automatically and transferred to next year as Balance sheet item.
Even after the balance carry forward program, entries can be posted to previous year, which will
automatically updates the opening balance.
Closing and opening period will be simpler and also special periods are provided to post audit
related entries that are part of adjustment entries pertaining to previous year.
It is possible to obtain yearly Trial Balance, P&L and Balance Sheet reports for Plants also.

No special configuration required. Normal SAP configuration with Number posting period variant &
Retained earnings account will be used.
No deficits
Not Applicable

7 ACCOUNTS PAYABLE
7.1 OVERVIEW
parameters required for the Accounts Payable module for GGPL.
SAP R/ 3 Accounts Payable Accounting maintains and manages accounting data for all vendors.
Moreover, it is an integral component of the purchasing system. Orders, deliveries and invoices are
maintained by vendor and aid in vendor assessment. SAP R/ 3 automatically makes postings based
on operational transactions.
The figure below illustrates the relationships between the accounts payables and the other parts of the
FI module and other SAP R/3 modules:
Accounts Payable Accounting is integrated with the general ledger in real time. All postings to
vendor accounts will also be updated to the general ledger at the same time. Depending on the
transaction, the system updates various general ledger accounts (such as payables and down
payments). Flexible account analysis features and due date forecasts provide you with an overview
of individual vendor accounts status

7.2 IMPLEMENTATION SCOPE
The functions identified to be implemented in this phase of implementation from Accounts Payable

Accounts Payable Vendor Master Maintenance Vendor Master Record
Down Payment Processing Down payment
Non PO Invoice Processing AP Invoice Processing
Credit/Debit memo Processing AP Credit/Debit Memo Processing
Automatic Payment Processing Payment Processing
Manual Payment Processing Payment Processing
GR/IR Clearing Account Clearing
7.3 AP MASTER RECORD
The vendor master record contains all the information a company needs for its business relationships
with vendors. This data controls the posting transaction as well as the processing of posting data.
Both the accounting and purchasing departments use the master record for this purpose. Vendor
master records are centrally stored in the system. This ensures that data is always consistent, up-to-
date and without duplication
7.4 INVOICES AND CREDIT MEMOS
A special feature is available for SAP R/ 3 systems that have integrated purchasing and financial
accounting modules. W ith the Material Management invoice verification feature, you can enter
incoming invoices. This feature references order and delivery data.
Credit memos are automatically set off through the payment program as soon as they are posted to
the system. The payment program automatically offsets invoice-related credit memos against the
respective invoice.

7.5 PAYMENTS
Automatic payment transaction management clearly represents the greatest advantage to Sap s R/ 3
Accounts Payable Accounting system. The system also supports manual or ad-hoc payment
processing.
The payment program initially creates a payment proposal list. The list is based on data in the
documents, the vendor master record, special tables, and your selection criteria. The payment
proposal can be edited. Payments can also be triggered directly. W ith large payment runs, several
people in accounting can work on the payment proposal simultaneously.
The payment program creates payments using the corresponding posting documents based on the
(revised) proposal. Payables are cleared and linked to the payment. Forms are printed and the
system logs the payment run so that you can review and monitor transactions at any time.
7.6 SPECIAL TRANSACTIONS
The posting of accounting transactions (invoices, credit memos, payments to the vendor account) also
results in simultaneous changes to the associated general ledger account for accounts payable. This
general ledger account is labeled as a reconciliation account and entered in the vendor's master
record. For a number of particular accounting transactions, the system updates an alternative general
ledger account. This is the case for:
Down payments made
Staff advance
Vendor for Raw Material
Vendor for Capital goods
Vendor for Services
These special transactions are noted in the R/ 3 System using a special general ledger indicator. A
number of special general ledger transactions can be entered into the system.

8 VENDOR MASTER DATA
8.1 AP-MASTER RECORD NON PURCHASING
Definition:
Business transactions are posted to accounts and managed using those accounts. A master record
must be created for each account that is required. In SAP R/ 3, the master record controls how data
is entered and processed for the vendor concerned.
Business transactions are posted to accounts and managed using those accounts. You must create a
master record for each account that you require. The master record controls how business
transactions are recorded and processed by the system. Among the specifications you make in
master records are used:
As default values when you post items to the account. For example, the terms of payment
you specify in the master record are defaulted for document entry.
For processing business transactions For instance, bank details and the payment methods
(check or bank transfer, for example) are required for automatic payments.
For working with master records. You can prevent certain users from accessing an account
by setting up authorization groups.
In addition, line item display and open item management are defined automatically for each vendor
account.
Presently GGPL is making direct payment to vendors by creating vendors in FI. In SAP FI will create
vendors for non purchase related activities such as electricity bill payment, water payment and any
other payment not related to purchase. FI will have to create the vendor by filling up payment terms,
reconciliation account, and payment method. Before creating the vendor master, they need to obtain
the form requesting for creating of vendor and same needs to be approved by the concerned. Once
the request form is approved, FI will create the vendor with above mentioned details. They will also
check whether it is one time vendor or regular vendor. After verifying the details, FI will create the
vendor and file the vendor request form along with vendor number. Once this process is done next
process is to book the bills and make payment to the vendor.
Following data is required for creating vendor for non purchasing

Vendor create request form for direct payment
Whether it is one time vendor or regular vendor
Payment terms of the vendor
Mode of payment i.e. by cheque or bank transfer
Reconciliation account for the vendor
Tax code to be maintained for deducting TDS on bill or payment of advance if any

8.2 AP-MASTER RECORD PURCHASING
Definition:
transactions are recorded and processed by the system.
Specifications you make in master records are used:
account.
Presently GGPL has got Import Vendors, Domestic Vendors, One time Vendors. GGPL Procures Raw
materials, Consumables like Spares, tools, Capital goods from various vendors and also there are
service vendors. It has categorized vendor group for each type of purchases. In SAP Purchases are
categorized using reconciliation accounts for each type of vendor i.e. Raw material vendor , vendors
for capital goods, services vendors etc, One time Vendor group is identified separately to simplify
payments for one time activity without creating vendor accounts separately. To Maintain Common
vendors groups across company codes, single vendor group is created for purchases which will be
having internal number allocation and one time vendor group is created for making one time
payments which will also have internal number allocation. The number ranges and vendor grouping
is explained in MM blue print documentation.
Presently there is no concept of employee vendor in GGPL. In SAP each employee is treated as
vendor and is grouped under Employee vendor group. This vendor group is basically to identify and
process transactions related to employee vendors. The employee numbers are identified by HR and
are part of HR blue print documentation.

9 AP BUSINESS PROCESSES

Accounts payable will have to be record and manage the accounting data relating to all vendors. It
will also need to be closely integrated with the procurement and inventory management system. Any
transaction in procurement, which has a financial implication, would have to automatically be
reflected in accounts payable as well as the general ledger. Also, different GL accounts should be
affected based on the nature of the transaction, for example, advance payments and security
deposits given.

The Accounts payable Application Component Records and Manages Accounting data related to
vendors. The AP module contains master records that control how business transactions are recorded
and posted to the account. These master records are also used to process posting data. The vendor
master record also contains all the data you require to do business with your vendors.
The master record is used not only in Accounting but also in Materials Management. By storing
vendor master data centrally and sharing it throughout your organization, you only need to enter it
once. The Process of AP will start from Invoice Verification, Advance Payment, Services payments,
Direct Payment and will end once the payment is made.
Presently GGPL is procuring Raw materials, Trading materials, consumables, Moulds and tools,
capital items, and also making payment to service vendors towards transportation, Annual
maintenance contracts and sub contracting vendors. Payments are released based on purchase
order, agreement etc. In addition GGPL is also making direct payment towards electricity charges,
water charges etc. In SAP all purchase related transactions are routed through Materials
Management and are integrated with FI Model and invoice is booked by Finance through logistic
Invoice verification for GGPL. All other direct payments are booked directly in Vendor bill booking
transaction and payment will be released after making necessary statutory deductions for which tax
codes are maintained in vendor master.
9.1 VENDOR INVOICE PROCESSING NON PURCHASING

Upon receiving invoice from the non-trade vendor (e.g. GSCB for the electricity charges), you can
park the bill before you post them. This is useful for example, if the data you want to enter is
incomplete, or the parking and posting functions are carried out by different accounting clerks (dual
control principle).
The following processes will be used for the for vendor invoice processing non purchasing

Presently GGPL books bill directly in FI system for W ater, Telephone, electricity and any other
transactions which are not routed through purchase department. In SAP direct bill booking for non
purchase related transactions are done using vendor bill booking options and payment are released
to these vendors. The following procedure is followed in SAP for booking of non purchase related
bills.
Flow chart explaining vendor direct bills booking.
Start
Bills recd from

vendor
No
Approved Send for
approval
Yes
Park the
document
Verify and post

the document System checks for
duplicate invoice
and throws error
Down payment saying duplicate
exists
Yes
Clear down
payment
File the
document
Release payment
on due date

Process explanation for vendor direct bill booking
1. N on purchasing related bill / invoice will be passed
to Finance dept. e.g. water, telephone & electricity
bills, any other bills not related to purchasing.
2. After received the bill / invoice, the Accounts will

send the invoices to the respective department for
verification and approvals.
3. Once approved, Accounts parks the entries into SAP.
4. Accounts Executive will verify and post the parked

document.
5. If the down payment exists, it can be cleared against

the invoice.
6. File the invoice / document (pending for payment).
Sub ledger and GL integration will definitely help in solving reconciliation issues of matching vendor
balances to creditors in GL. SAP system post data in Sub ledger and updates the transaction in GL
real time, there by ensuring that data between sub ledger and GL are always reconciled. Statutory
deduction for vendors is maintained in vendor master and there by ensuring taxes are recovered for
services and remitted to government on time.
Vendor standard reports are very useful and are available for ageing, open items, balances with
many selection options and can be down loaded to excel directly.

No special configuration required.

No deficits

Not Applicable
9.2 VENDOR INVOICE PROCESSING PURCHASING / SERVICES

In the existing system the general service department and the procurement department place the
order with the vendor. The finance department makes the advance if any, in accordance with the
purchase order. After the goods are received and are verified by the procurement department the
payment is processed by the finance department in terms of the purchase order. Materials related to
Inventories are currently posted to consumption at the time of issue from stores to production using
weighted average rate.

Upon delivery of goods or completion of services, vendors shall send invoices which normally
describe name of the goods or services, the quantity sent and the amount due. In the case of goods
received, there is a facility in SAP R/ 3 to perform 3 ways matching of Purchase Order, Goods
Receipt and Invoice. You can park the invoice before you post them. This is useful for example; if the
data you want to enter is incomplete, or the parking and posting functions are carried out by different
accounting clerks (dual control principle).Service related payments and Material procurement related
payments are routed through Materials Management Module. Finance will be doing the IV (Invoice
verification activity only).
All GGPL purchases such as Raw Materials, Furnace Oil, Moulds, Stores and Spares, Packing
Materials, Services, Sub contracting charges, Annual Maintenance charges, and Transporters bills
payment are routed through Purchase department. In SAP all purchase related transactions are
routed through Material Management and GRIR will be done for all such transactions other than
service related like AMC, service entry sheets are used for monthly service related transaction like
AMC. Explanation about valuation class and other movement types is covered in Materials
Management. One of the examples of Inventory accounting is shown below and the procedure is
same for other materials accounting, different GL accounts are assigned to valuation class for
different type of materials. Explained below how accounting takes place in FI and how the accounts
are determined in Material Management, this process is basically followed for all purchases related
materials.
Valuation Classes
Valuation Class is the field, which is used to link the materials to the GL accounts. Valuation classes
are created according to GGPL requirement. Detailed explanation is given in Material Management
Module about Valuation Class, Movement Type, and Material Master.
Goods Receipt

The Stores department will prepare the Goods receipt against PO using the movement type 101.
Material document created at the time of Goods Receipt in transaction code MIGO will pass the
following accounting entry:
Accounting entry for Goods Receipt pertaining to RM or PM
Debit RM/PM Stock Account
Credit GRIR Clearing Account
Invoice Verification
Invoice is a Document received from an invoicing party containing the payments to be made based
on business transactions performed in Purchasing (Fixed assets, consumables & services, Inventory).
Invoices received from Vendors is to be entered in the system and the data will be
verified with respect to Purchase orders and Goods Receipt
Invoice processing begins with entering invoice with invoice amount into the system for
goods receipt, purchase order, delivery note or service entry sheet.
Invoices can be posted with reference to Purchase orders and Payment can be made to
alternate payee
The invoice can be posted and blocked for payment, subject to later invoice
release/billing processing or be released for payment
Accounting entry for Invoice Verification of supplier
Debit GRIR Clearing Account
Credit Vendor account
deduction for vendors is maintained in vendor master and there by ensuring tax is recovered for
services while booking the bill or making the down payment. Same is remitted to government on
time.

Valuation of Raw material takes place on movement of material to production automatically and
accounting entries are posted automatically at various stages of completion. However this process
has to be discussed in details to get further benefits.


Freight Module for freight Outward accounting is not part of Standard SAP functionality. Each and
every freight outward payment should be linked to LR number of transporter and cost is distributed to
respective cost center. System automatically books the bills from freight module to accounting system.

In SAP freight outward accounting is possible through Materials Management where in each and
every bill can be accounted. Since the requirement is to link the LR number and customer Invoice, a
program has to be developed which will have link with SD module and posting to FI can be done
using direct vendor bill booking process through Z development. However, direct bill booking
process can process each and every freight outward payment directly without linking to SD module
which is a standard functionality in SAP.
Given below flow chart showing accounting through MM and Logistic invoice verification

Vendor Bill Booking Purchase Inventory related
Start of
process
Receipt
Of Goods
GR by
Reference to PO
purchase Posting to Stock account
& GRIR account
Invoice verified no
Invoice back
Subject to tolerance
To purchase
By Finance
yes
Invoice GRIR account is Reversed

accounted Stock and Vendor account
updated
File the
End of Process
document
27-Oct-06 HP GDIC SAP Practice 16

9.3 VENDOR CREDIT MEMO PROCESSING
Business Mapping to R3
In normal business transactions, there are instances whereby vendors will send credit memos in order
to reduce invoices. Such cases might arise due to incorrect invoiced amount or rejection of goods. A
credit memo is then required to substantiate the adjustment.
Being an adjustment entry, credit memo shall affect Financials module only unless the adjustment is
related to MM such as good return etc.
The processes are similar to invoice processing. Only the accounting treatment will be different

The processes are similar to invoice processing. Only the accounting treatment will be different.
Presently GGPL is following this process, where in vendor has over charged or goods is rejected. In
SAP for only value related adjustment credit notes, FI can pass direct adjust entry with reference to
the particular invoice document. W hen the goods are rejected, the process of credit note related to
quantity and value is routed through Materials Management and this process is similar to vendor bill
booking process through logistics invoice verification. Only difference is that accounting entries
which will be reverse of invoice booking.
NA

No deficits

Not Applicable

9.4 VENDOR DOWN PAYMENT PROCESSING
N ormal payment to vendor is carried out against claim for goods delivered or services rendered i.e.
payables. However sometimes vendors might request payment before delivery of goods or services.
This type of payment is known as down payment and is shown on the asset side in the balance
sheet. In the normal business flow, down payment should be cleared with the closing invoice upon
delivery of goods or services.
SAP has Special transaction to post supplier advances.
Presently GGPL has got vendor down payment process, where in they will be making advance
payments to various vendors like advance towards capital purchases, advance towards Stores and
Spares Purchases, advance towards packing material. In SAP down payment request and down
payment process is used to make down payments to vendors. Depending on the nature of down
payment, by creating special GL indicator down payment made to various activities such as
Advance towards capital purchases, towards spares and packing material purchase can be handled
for GGPL. Also at the time of booking the bill, system will show the advance paid against the vendor
and same can be cleared against the bill to ensure balance payment is released to vendor.
The Special GL indicator currently required for down payment for GGPL is
Advance for capital purchases
Advance for any other purchases
Earnest Money deposit payment
Vendor down payment processing process explanation
Step Procedures
1. W hen a vendor request for a down payment, approval
from the Finance is required.

2. The vendor account is then determined by the Accounts
via SAP.
3. The Accounts then post down payment and subsequently

print the cheque.
4. The cheque is ready for signing and disbursement

5. File the documents for reference purpose.
All Down payments can be tracked and adjusted while making the bill payment. System keeps track
of the down payments and it is treated specially in GL so that it is easy to identify down payment
details.


No deficits

Not Applicable
9.5 MANUAL OUTGOING PAYMENT PROCESSING
SAP R/ 3 uses document principle to store transaction entries. In the case of vendor, transaction of
invoices will be stored as open items. Open items are in fact outstanding transactions.
The open items of an account can only be cleared when an identical offsetting amount to the
account is posted. The balance resulting from the items allocated to each other must therefore be
zero. Correspondingly, the offsetting entry here represents outgoing payment to vendor (bank).
In SAP, manual outgoing payment is generally performed for a small number of payments on ad-hoc
basis.

Payment made to vendors may not always be straight forward; therefore the system is configured to
handle various scenarios as follows:
Partial Payment, where the original open item and the partial payment remain as open
documents on the account. W hen user posts the remaining amount for the invoice, both the
partial payment and the invoice are cleared.
Residual item - only the new residual item is left on the account, clearing the original document
and the payment. A new document number is created referencing the original document.
Contra of vendor and customer balance is handled automatically by the system. In order to
activate contra balance, vendor and customer have to be linked in the vendor and customer
master record.
Clearing of Open Item while making payment and tracking of cleared item separately
.

Presently GGPL is using manual payment process for making payment to vendors and in SAP manual
payment process is used to meet the similar requirement.
Step Procedures
1. The Accounts will determine vendor account and invoices
to be paid.
2. If payment is automatic, run payment program. Refer to

automatic outgoing payment.
3. Approver approves the payment.

4. Post the outgoing payment into the system and note
down the document number. Print cheque and payment
voucher.
5. File the payment voucher together with the supporting

document.

System can make partial payment, residual payment and also can adjust against the customer while
making vendor payment.

No deficits

Not Applicable
9.6 AUTOMATIC OUTGOING PAYMENT PROCESSING
W hen the volume of payments is large and the frequency depends more on the due dates, it is
recommended then to utilize SAP R/ 3 s automatic outgoing payment function. In this manner,
offsetting entries i.e. outgoing payments (bank) are automatically posted. Subsequently, open items
are automatically cleared.
To create automatic payment program, several configuration steps to be maintained, which will have
details of house bank, account id, ranking orders, maximum payment limit, payment for special gl
transactions this will be configured during realization stage.

Presently GGPL is not having automatic payment processing options for bulk vendors whose payment
are due on date. Instead they are using batch process for making vendor payment. In SAP automatic
payment program generates payment for all vendors whose payment is due on date. In addition it
has got the feature of blocking the vendor payment for any valid reason and makes other payment
related to the vendor. It has also got the advantage of printing cheque for multiple vendors at a time.

Step Procedures
1. To make payments to vendor using the automatic
payment program, the Accounts executes the payment
proposal via SAP system.
2. A payment proposal list is generated.

3. Edits the proposal if necessary by blocking or unblocking
invoices for payment.
4. The edited proposal list is then given to the Finance

Manager for approval.
5. After approval, the payment run is executed.
6. A confirmed payment list is generated.

7. Print cheque and payment voucher.
8. File the payment proposal & payment list.
making vendor payment. You can select multiple vendors together to make payment and cheque can
be printed for multiple vendors using automatic payment program.
This is one of the features which will reduce when multiple vendor payment has to be made.


No deficits

Not Applicable

9.7 STAFF ADVANCE AND CLAIM PROCESSING
.Requirement and Expectation

N eed to track staff advances and settle their claims on regular basis. N eed to identify the difference
in claim for the purpose of making payment to staff or recovering the balance from staff.
This process involved the preparation and submission of staff advance and follow by the claim
processing. The claim will be matched with the advance to determine the next step of action.
Staff advance is tracked employee wise and claims can be adjusted against the advance while
making payment, employee wise claim transactions are available which will reconcile real time with
GL accounts.
Presently GGPL is handling staff advances and other claims. In SAP staff advances related to Loan,
vehicles and claims like medical , vehicle allowance which are part of CTC are handled through
payroll and HR system. Accounts are configured using symbolic accounts and wage type in payroll
system and entries are populated directly while processing the payroll data, postings to respective GL
accounts are triggered automatically.
Presently Employee also under takes travel to various locations. This travel can be a domestic travel
or Foreign Travel for which they take advance which is tracked manually. In SAP travel advance
and claims are handled through Travel Management module which is in phase II. However, till the
implementation of Travel Management following process is suggested.
Travel advance of employees is tracked in FI by creating separate GL accounts for domestic travel
advance and foreign travel advance. A report can be generated employee wise advance
outstanding using GL accounts, for which employee code has to be maintained during advance
booking. W hen the employee submits the claim, same is accounted by FI and the balance due from
employee or due to employee is posted to employee vendor account. If the employee has not paid
the due on time, then intimation to be sent to HR for recovering the same from Payroll. If the payment
is due to employee, then release the payment to employee.
Other employee claims like conveyance which is not part of payroll are directly handled in FI and
payments can be released to employees after the approval formalities for claiming is completed.
To Track employee loan like housing loan, vehicle loan special GL indicators needs to be created for
GGPL, Following special GL indicators are created for tracking employee loans in FI.

Special GL indicator for Employee housing loan advance
Special GL indicator for other employee advances
Employee wise advance can be tracked in the system


No deficits

Not Applicable
9.8 PERIOD END PROCESSING
Once all parked documents are completely posted and payments for the month are completed, the
posting period for vendors can be closed. This is to prevent the occurrence of back posting invoices
to the previous period after reports are generated.
Before posting period can be closed, other month end processing activities such as executing the
recurring program need to be performed if applicable.
Opening the new period and closing the previous period are two parts of the closing procedure.
Presently GGPL is following the process of closing of month end period at respective plants. In SAP
closing of activity is centralized and vendor posting can be blocked for all the location after
completing the vendor related transactions for that month. This will avoid delay in closing the month
end and results in streamlining of closing activity.

Step Procedures
1. Accounts posts / deletes the outstanding parked
documents through parked document program.
2. Execute recurring program, if applicable.
3. After completed all the additional postings. Run
Currency Valuation for valuating open items in foreign
currency. Post the valuation differences. Close AP
posting period and open the new period.
4. Generate month end reports:
AP Ageing
Vendor Balances
Open Items, etc
Since sub ledger and GL are matched real time, period end closing will be faster and accurate.
Obtaining of reports like Vendor Ageing, Vendor Balances and Open items is possible at any point
of time for a transaction or list of transactions.
Report can be viewed for respective currencies in which transactions are updated.


No deficits

Not Applicable

At the end of the fiscal year, carry forward program is required to be executed to carry forward the
vendor and vendor account balances to the new fiscal year. After running the carry forward
programs, when a transaction is posted to the previous year, the account balances in the current
year are immediately updated automatically. Balance carry forward program is done after entries
are completed.
Presently year end closing is happening at respective locations and data is sent to Head Office for
uploading plant TB for consolidation of accounts. In SAP year end closing is similar to the month end
process with additional activity of carry forward of balances to next year. The advantage of this is
even after balances are carry forwarded to next year, any entries to previous year will automatically
update the opening balance of next year, this functionality was not available in existing system and
this is the added feature of SAP.

This process is in addition to month end closing activities mentioned in previous point.
Step Procedures
1. Execute AP balance carry forward program to carry
forward vendor balances to the new fiscal year.
2. Post additional posting in special period, if

applicable.
3. After completed all the additional postings. Close the

posting period / fiscal year and open the new period
/ fiscal year. System allow for the current year even
though previous account is not closed yet.
4. Generate year end reports, e.g.:

AP Ageing
Vendor balances
Open items, etc

Since sub ledger and GL are matched real time, year end closing will be faster and accurate.
Automatic carry forward of balances to next year and also update the next year balances
automatically if any entries are posted to previous year.


No deficits

Not Applicable

10 ACCOUNTS RECEIVABLE
10.1 OVERVIEW
This section outlines the master data structures, business processes required for the Accounts
Receivable module for GGPL.
Accounts receivable accounting in SAP R/ 3 maintains and manages a customer accounting data. It
is also an integral component of sales management. Sales and accounting have the same
information requirements. If the customer order results in delivery and subsequent invoicing, then these
transactions are posted automatically in the accounting system. The various stages of this process are
updated in real time the system.
The figure below illustrates the relationships between the accounts receivable and the other parts of
the FI module and SD module.

The functions identified to be implemented in this phase of implementation from Accounts Receivable

Accounts Receivable Customer Master Customer Master Data
Maintenance
Down Payment Down Payment Processing
Processing
N on Sales order AR Invoice Processing
Invoice Processing
Credit/ Debit memo AR Credit/Debit Memo Processing
Processing
10.3 AR MASTER RECORD
A customer master record contains all the information that a company needs for its business relations
with a customer. This data controls the posting procedure and subsequent processing, such as
payments and dunning. Customer master records also provide information on customers for the
accounting and sales departments. Customer data records are centrally stored in the system. This
means that the data record is always consistent, up-to-date, and free of redundancy
W ith the integrated use of SAP R/ 3 s sales and financial accounting systems, the billing system
prepares and posts outgoing invoices. There is an option to account for credit momos.
There are certain business transactions that should be posted to the customer but not updated in the
line item of receivables from goods and services in the general ledger. An example of this is down
payments. These are identified separately in the balance sheet. Using a special G/ L indicator, the
system is told that a posting should not be actualized in the reconciliation account from the customer
master record. Instead, it is done in a G/L account specially set up for that purpose

10.6 DOCUMENT AND ACCOUNT DISPLAY
W hen business transactions are posted to an account, the system automatically updates the account
balance. It also notes which items of a document have been posted to the account. Thus, the
account balance and line items for any account can be viewed. The account balance offers an
overview of the transaction figures per period, separated into debits and credits. Similarly, sales per
period and special G/ L transactions such as down payments for the fiscal year can be discerned at
a glance. From here, you can go directly to the display of items. A line item display provides an
overview of an account s open and cleared items. You can specify which information on individual
items appears on the screen. For example, one user could be interested in the terms of payment,
while another could be more interested in the dunning data for the line items.
10.7 CUSTOMER CREDIT MANAGEMENT
Customer credit management offers the option of making order acceptance dependent on an
assessment of a customer s creditworthiness. This is done through a credit limit. The limit is checked in
financial accounting and sales upon posting. If the limit is exceeded, the system issues a warning or
an error message, depending on setup. The document can be posted. Other actions can follow. An
example would be an examination of the customer or a block on the master record. The credit limit
can be assigned on various levels. Credit limits are assigned and monitored using credit control
areas." A credit control area consists of one or more company codes. If a credit control area has
been set up and a preset value has been indicated for a customer, then the credit master record is
automatically set up when a customer master record is set up.

11 AR MASTER RECORD
11.1 CUSTOMER MASTER RECORD
Definition:
All non trade customers are maintained by Finance Department without any involvement with Sales
Department. Therefore the customer master will not have information maintain in the sales area view
The structures of master records for purely finance use are:
General Data
This is data that is equally relevant to every company code and every sales
organization within a company. General data includes the address,
telecommunications data (telephone, telex, and fax), general information on the
customer (plant number, industry, group allocation) and bank details.
Data for Company Codes

This is data that reflects the company-specific agreements with the customer. Company
code data includes the terms of payment. In addition, the reconciliation account for
G/ L accounting is indicated at the company level. Transaction figures for this general
ledger account are automatically updated to the customer account upon posting.
N ote that if the customer is also a vendor, such as inter-company customer, the vendor number can
be recorded in the general part of the customer master as a means of reference.
Presently in GGPL Customer master data is maintained for Domestic and Export Customer as they are
selling products to domestic and international customers. In SAP two customer groups will be created
for GGPL, they are Domestic customer and Export Customer. These customer groups will be having
different reconciliation accounts to identify export customer and domestic customer separately.
Accordingly following reconciliation accounts will be created
Reconciliation account for Domestic Customer

Reconciliation account for Export Customer
Reconciliation account for Inter company customer
It is also required to maintain payment terms for each and every customer in master data to track
accounts receivable due date wise. Payment terms needs to be maintained for each and every
customer and same is assigned to customer while doing master data upload for customers.

12 AR BUSINESS PROCESS
12.1 INVOICE PROCESSING

This scenario is when sales order is not necessary to be created for the purpose of invoicing a
customer. Hence, all these invoices will be created as AR invoice. Examples of AR invoices are:
1 Sales of assets, which have been fully depreciated.
2 Non-trade customer
All AR invoices created directly can be differentiated through the Document Type field. For example,
AR invoices are created with document type DR (Customer invoice), and the accounting entries are:
Dr. Customer
Cr. Revenue
SAP R/3 provides automatic error checking by barring user from posting a transaction in the event of
that the debits and credits are not equal. In addition, prior to actual posting, users are allowed to
simulate posting entries and check for possible posting errors. Users can also choose to park the
documents for verification before posting.
Invoice process for one-time customer will use one common master record and relevant customer
information such as name and addresses will be entered directly in the invoice. The accounting
entries generated are:
Dr. One-time customer
Cr. Revenue
Presently GGPL is billing to export and domestic customer. In SAP customer billing pertaining to Sales
Order is routed through Sales and Distribution Model (SD). The GL accounts for export customer and
domestic customer is maintained in SD module using pricing condition. W hen ever billing happens
from SD, Revenue accounts and customer accounts are determined automatically and posted to FI.
Postings to GL will happen in the currency in which transaction is executed. System will track
transaction currency, local currency and group currency for each posting. This will help in taking FI
report on receivables on either of the currencies. GGPL also selling the products through CFA located
at Roorki and Baddi. The stock is transferred from plant to CFA locations and Sales is recognized
when CFA sells the product. W hen the material is transferred from Plant to CFA, Finished goods
stock is reduced and Stock in transit is created. W hen CFA received the material, finished goods
stock is updated and stock in transit is adjusted. W hen CFA sells the material, revenue is recognized
and debtors are created. Sales data pertaining to CFA is available and details of sales made by
CFA can be tracked. More explanation is given in SD business blue print about sales order related
billing and same can be referred in SD.

Below process explains the non sales order related billing which is also part of standard SAP
functionality.
Presently GGPL is taking letter of credits (LC) from customer and tracking LC dues manually. In SAP LC
dues from customer can be tracked by using Bills of Exchange functionality. Special GL indicator has
to be defined for Bills Receivable and Accounting entry to be passed for moving AR from general
receivable account to Bills Receivable account. W hile moving to Bills Receivable account LC number
and due date can be entered in system. Any point of time report on LC due can be generated and
system will show LC due dates from customer. On receipt of payment from customer, Bills receivable
accounts can be cleared.
Step Procedures
1. Received memo from user department to issue an
invoice to a customer
2. Review and/or approve the memo
3. Once approved, Accounts parks the entries into SAP.
4. Accounts will verify and post the parked document.
5. If the down payment exists, it can be cleared against

the invoice.
6. File the invoice / document (pending for payment

from customer).

No Special configuration required.

No deficits
12.2 CREDIT MEMO PROCESSING

Credit memo will be created when a customer is over-billed. It adjusts previous entries that were
overstated. Therefore, posting a credit memo always leads to a credit posting on the customer
account. A credit memo will only be prepared if the corresponding invoice was created and sent
out to the customer. A credit memo will not be created if the invoice has not been sent to the
customer, as user is able to cancel the original invoice, reversing the relevant G/ L entries and create
a new invoice.
For credit memo with reference to AR invoice, the credit memo must be created with reference to the
original invoice in order to correctly reflect customer outstanding balance. This is done by updating
"Invoice Reference" field during the creation of the credit memo.
The processes are similar to invoice processing. Only the accounting treatment will be different.


No deficits
12.3 DOWNPAYMENT PROCESSING

All down payment received are to be reflected as a liability. The down payment is to be
subsequently cleared against the actual invoice when it is issued to the customers. All down
payments will reduce invoice amount accordingly.

Presently GGPL receives advance payment from customer and is tracked in customer separately. In
SAP down payment made by customer can be tracked separately by creating the special GL
indicator for Down Payment from Customer. This will track the advance received from customer.
Special GL indicator will be created for Advance Received from Customer for GGPL.
Step Procedures
1 Accounts will receive an advance or down payment from
customer
2 The customer account is then determined by the Accounts

via SAP.
3 Accounts will then post down payment in SAP system with

special G/L indicator.
4 Receipt will be printed to be issued to the customer.


No deficits
12.4 INCOMING PAYMENT PROCESSING

The system is able to handle customer payments in different modes such as cheque, cash payment,
etc.
The incoming payment process can be done using a one step or two step methods:
Posting without Clearing - The receipts will be posted in using the normal document entry
functions i.e. there will be no selection of open items available. At frequent intervals, or adhoc
basis, the customer account will be cleared whereby the payments document will be matched
against the invoice document. A clearing document will be created with zero.
This method is only useful when at the point of entry, the user is uncertain for which open item
the customer is paying for. Otherwise, it is advisable that user adopt the second option.
Posting with Clearing - Open items are cleared at the point of posting incoming payments. This
results in the selected line items being cleared . All cleared items will not be available to
knock of other open items. In other word, the incoming payment document is the clearing
document of the customer invoice.
Payment received from customer may not always be straight forward; therefore the system is
configured to handle various scenarios as follow:
Partial Payment, - where the original open item and the partial payment remain as open
Contra of customer and vendor balance is handled automatically by the system. In order to
activate contra balance, customer and vendor have to be linked in the customer and vendor
master record.

Presently Incoming payment from customer is accounted against Customer by GGPL. In SAP
Incoming payment process not only meets the requirement of adjusting the payment against the
customer but also has got additional feature of accounting for Partial payments, residual payment to
show balance amount after adjusting the partial payments. This also has the additional activity of
clearing the customer outstanding against advance separately.
Below process explains the accounting for incoming transactions for customer payments

Step Procedures
1 The Accounts will determine the customer account number
for the payment received.
2 If the invoices can be identified for the payment received,

Accounts will post the incoming payment in SAP and
cleared the invoices.
3 If the invoices cannot be identified during payment

received, the Account will post the payment without
clearing any outstanding invoices.
4 Send the receipt to the customer
5 Once the invoices for the payment can be identified, the

Accounts will manually match the payment with the
invoices in SAP system.
6. File the documents for future reference.


No deficits

Each SAP R/ 3 module has its own period-end and year-end closing procedures. Opening the new
period and closing the previous period are two parts of the closing procedure.

Open and closing FI period is usually given to the G/L users who will ensure that the previous period
for each account types (A assets, D customers, K vendors, S G/ L accounts) are closed first
before generating the financial statements for the previous period. For transactions entered in
Accounts Receivables, the system will check that the posting period entered for a customer
transaction is opened for posting as specified in the From period and To period fields for account
type D (such as debit a customer) and account type S (such as credit a revenue account). Otherwise,
the system will prompt an error message that the period is not opened for posting. This process is
similar to AP closing process and has got similar benefits that of AP
Once all invoices are completely generated, the posting period for customers can be closed. This is
to prevent the occurrence of back posting invoices to the previous period.
Once the period is closed, customer invoices will be generated in the new period.
Step Procedures
1. Accounts, executes and posts / deletes the outstanding
parked documents through parked document program.
2 Executes recurring program, if applicable.

3. After completed all the additional postings, close AR
posting period and open the new period.
Since sub ledger and GL are matched real time, month end closing will be faster and accurate.
Reports can viewed for Customer Ageing, Customer Balances and Open Items at any point of time
for posted transactions.


No deficits

Not Applicable

customer and vendor account balances to the new fiscal year. For customer account, the program
copies the year end balances to the beginning of the following year.
W hen running any carry forward programs, it is necessary to make sure that nobody is posting
entries to accounts. After running the carry forward programs, when a transaction is posted to the
previous year, the account balances in the current year are immediately updated automatically. This
process is similar to AP year end process and has got the similar benefits of AP year end process.
Step Procedures
1 Execute AR balance carry forward program to carry
forward customer balances to the new fiscal year.
2 Post additional posting in special period, if

applicable.
3 After completed all the additional postings. Close the

posting period / fiscal year and open the new period
/ fiscal year. System allow for the current year even
though previous account is not closed yet.
4 Generate year end reports, e.g.:

AR Ageing
Customer balances
Open items, etc



No deficits
Not Applicable

13 BANK ACCOUNTING
It includes the management of bank master data; cash balance management, and the creation and
processing of incoming and outgoing payments.
Bank Accounting is part of FI but master data related to bank are taken from Cash Management. The
Cash Management deals with Cash Position, Liquidity Forecast and Bank Reconciliation aspect.
Currently we are considering Bank Master Data and Bank Reconciliation for the scope,

Bank Accounting Bank Master Data Bank Master Data
Bank reconciliation Bank Reconciliation
13.2 BANK MASTER DATA
In the SAP system, bank master data is stored centrally in the bank directory. In addition to defining
bank master data, you also define your own bank details (house banks) and those for your business
partner (entered in the business partner's master record). The following are the components of bank
master data.
Bank Directories
The bank directory contains the bank master data. This includes the bank address data and control
data, such as the SW IFT Code and Bank Groups. Details for post office banks should be identified
specially.
The bank directory must contain the master data for all the banks that you require for payment
transactions with your business partners
Bank Details
To be able to run the payment program, the system requires details on your own bank, and these
details must be entered in the customer and vendor master records. In the company code-specific
data of a vendor master record, you could for example enter the house bank from which payment is
to be made to this vendor. If you do not enter a bank in the master record, you must specify the rules

by which the payment program determines the bank. The data that you enter is the same in both
cases - an ID code for your bank.
House Bank
A list of house bank represents the bank in which the company uses for its outgoing and incoming
payments. SAP will then refer to this list maintain in table BNKA for its automatic payment program as
well as to forecast bank balances with SAP treasury function.
These lists are maintained at the company code level and each house banks are given a user
defined bank ID that can be alphanumeric. For this implementation, bank list will be maintained in all
company codes, List of bank of various company codes has to be obtained and customized.
The house banks will be created for every main and branch bank. The naming conventions for the
bank ID are base on these logics:
Use the first letter of the bank name and the first letter for bank as acronyms which described
the house bank. The graph below illustrates acronyms for Citibank. The last two digit of the
house bank will use 00 to denote first bank listed in the system. Therefore for Citibank, it can
have up to 100 branches entered in the system using the CB convention. It is recommended
to use 00 to identify the main bank of the company.
Example: CB000 Citibank Main Branch

CB001 Citibank Bangalore
CB002 Citibank Mumbai
Bank accounts are maintained for every house banks using a unique bank ID. This bank ID is used to
enter specification for bank payment and general ledger master records.
Bank account such as current account and saving account are created for every house banks. It is
proposed to follow the following naming conventions of the account ID:
The letter CA is use for Current Account.

The letter SA is use for Saving Account
The last 3-digits will be running number

Bank Account ID
Each bank ID is unique within a company code. For each bank, enter the bank country, and either
the bank number or an appropriate country-specific key. The system uses this information to identify
the correct bank master data.
GL Account
A G/ L master record is created for each bank account. One bank account will have a
corresponding two bank clearing accounts, i.e. outgoing and incoming payment.
The benefit of having two bank clearing accounts is that it helps to simplify processing of electronic
bank statements
House Bank and Bank Account Creation

There are two key master data types in Cash Management, namely the house banks and the bank
accounts. The critical information required to set up these master data include bank name, bank key,
bank branch and bank address.
The use of the bank account G/L structure can be seen through the following example.
W hen the company executes the payment program and makes payments for open payables, the
following postings take place:
Dr Vendor AP account
Cr Outgoing clearing account (G/L Account XXXXXX02)
This amount will remain in the outgoing clearing account until it clears the bank. Once the outgoing
payments clear the bank, the following postings take place:
Dr Outgoing clearing account (G/L Account XXXXXX02)

Cr Main bank G/L account (G/L Account XXXXXX00

13.3 BANK DATA ACCOUNTING PROCESS
Requirement and Expectation

There is need for accounting of all bank related transactions like, vendor payment, customer receipt
and any other payments and receipts through bank. On regular basis bank account is reconciled
with bank statement and reconciliation differences are shown to match both the balances
SAP bank accounting application helps in posting transaction for funds transfer between the banks,
and for doing bank reconciliation. And also Bank Account will impact based on the Receipt from
customer or payment to vendor.
Presently GGPL is having banks accounts at Head Office, Plants and in addition to that they have
bank with current account balances. In SAP House bank and account ID is created for each of the
banks and bank clearing accounts will be used for posting transactions related to payment and
receipts. Bank Account will be created for each of the bank and bank clearing accounts are
configured to the respective bank accounts. Presently GGPL is having following Banks in various
locations for which master data will be created and uploaded to SAP.
HDFC Main Bank at HO Mumbai where in all payments of HO and collections from Customer
are accounted in HO
HDFC Branch Kosamba location where in all payments are released pertaining to Kosamba
HDFC - Branch - Jambusar location Where in all payments are released pertaining to Jambusar
Bank of Baroda Kosamba All small payments and petty cash related transactions are handled
using this bank
Citi bank Srilanka where in all payment and collections are handled through this bank
.
Bank Master and Account ID and bank account is created for each bank and will be mapped to
automatic payment program , Cheque lots will be maintained for manual check payment and
automatic check payment. Bank master data has to be uploaded at the time of realization
Cheque Management Process

This function is used to enter checks you receive. After the input is complete, you can access the
additional functions to further process the entered checks (see Entering Incoming Checks).
Normal bank payment transactions are happening through Accounts Payable Model.
Manual Bank Reconciliation

There are basically two steps in this method:
First, in the transfer-posting screen under G/ L, the users retrieve the open items under incoming bank
clearing account and select them if they appear on the deposit column of the statement. The open
items can be sorted by date to ease matching. Upon completion, post them against the main bank
account. The system will generate the accounting entries like the followings:
Dr Main bank
Cr bank incoming clearing
Second, in the transfer-posting screen under G/ L, the users retrieve the open items under outgoing
bank clearing account and select them if they appear on the withdrawal column of the statement.
The open items can be sorted by date to ease matching. Upon completion, post them against the
main bank account. The system will generate the accounting entries like the following:
Dr bank outgoing clearing

Cr main bank
Step Procedures
1. Received hardcopy of bank statement
2. Identify bank statement items that can be matched with

the line items in the GL bank account
3. Manually post items that exists in bank statement but not

yet captured in the system
4 Manually post and clear the matched items
5. Manually prepare the reconciliation statement.

Reconciliation can be done as often as you get the bank statement and will ensure that data is
captured on time. This will also automatically match the bank statement and bank account
It is very obvious that the balance in the bank clearing account is the not reconciled.


No deficits

Not Applicable
13.4 PETTY CASH MANAGEMENT

There is a need to keep cash and make petty cash transaction at various locations to meet petty cash
activity.
Cash Journal
Cash Journal is a feature in SAP, which permits separate tracking of cash transactions. Each cash
journal should be assigned to one G/ L account, which represents the cash journal in the general
ledger. It is however possible, to connect multiple cash journals with one G/ L account. Cash
transactions are saved separately in the cash journal and are transferred periodically (for example,
daily) to the general ledger. The Cash Journal also permits generation of daily balance statements for
tallying physical cash with the books of account. Cash journal will not support for making special GL
indicator postings. All postings need to be done to vendor or customer and adjustment entries to be
routed separately to special GL indicator.

A separate cash journal and GL account would be maintained for each location handling cash.
Separate cash journals and corresponding GL accounts would also be maintained. Following Cash
Journals will be created for GGPL
CJ1 for Head office- GGPL India
Cj2- for kosmba
Cj3- for Jambusar
Cj4- for Head office - CGCL srilanka
Cj5- for Ramayana Srilanka
Cj6- for natandia Srilanka
Cash Journal is very effective in SAP, which can track petty cash transaction for each of the locations
separately and also will be tracking balances on daily basis.


No deficits

Not Applicable

14 TAXES COUNTRY INDIA VERSION
There is a need to meet legal requirement related to Excise Duty (ED), Sales Tax (ST), Tax deducted
at Source (TDS). Taxes are calculated, deducted and remitted according to the requirement. Cenvat
Credits are availed and Returns are filed. Required forms are generated.
The Country Version India is an add-on component for SAP ECC 6.0.
Country Specific functions
Most of the country-specific functions for India relate to Financials and Logistics. The main areas are
as follows:
· Excise duty and the central value-added tax system (CENVAT)
· Withholding tax (also known as tax deducted at source)
· Sales tax
· Maintenance and printing of statutory excise registers
Country Version India uses the standard functions for calculating and collecting withholding taxes.
However, both Classic W ithholding Tax and Extended W ithholding Tax come with additional
functions for tax remittance, journal vouchers, creating withholding tax certificates, and preparing
annual returns.
If you want to handle excise duties, you must post the excisable transactions using the Materials
Management (MM) and Sales and Distribution (SD) components. The system calculates the excise
duty in these components and creates the appropriate line items in Financial Accounting (FI)
The configuration part of it involves MM, SD and FI integration
Presently GGPL India is taking Cenvat credits, Vat input credit and service Tax input credits as per the
act and filing returns monthly by reconciling the excise register and accounts books through
utilization. In SAP through CIN module Cenvat credit, Vat and Service Tax credits are addressed.
GL accounts are maintained for each, in the pricing schema in Material Management and when the
transaction takes place system will automatically post the taxes to RG23A II for non capital items and
RG23CII for capital items. It also takes care of 50% credit for capital items and balance 50% will be
posted as advance available for taking next year credit. System will also update RG23A I for
quantity updates. These activities are carried out by Excise person.

Similarly GL accounts Vat input credit and Service Tax input credit are identified using Tax Codes.
GL accounts are assigned to tax codes and system will automatically pick up the tax rate and GL
accounts while posting the transaction. The additional requirement of taking vat input credit and
service tax credit on payment to vendor is to be tracked and credit to be taken on confirmation of
payment to vendor. The process is different for Jambusar as they are having tax exemption, VAT input
credit is not availed ,instead they accumulate the same in books of accounts till the returns are filed
and on completion of assessment entries will be passed to P&L by offsetting these accounts. Excise
related reports are available in Standard SAP while Service Tax and Vat reports have to be
generated for GGPL.
Month end utilization has to be done for reconciliation of excise records and FI records, system will
automatically post the accounting entries to respective GL accounts and balances will be reconciled.
GL accounts are assigned in the CIN configuration for automatic generation of GL accounts.
C form tracking for customer is possible; it will help in filing sales tax returns. System will post sales
tax entries automatically to the respective GL accounts while billing to customer. These GL accounts
are mapped to pricing condition in SD and calculation is done based on the rates maintained in
pricing condition.
Detailed CIN activities are addressed in MM and SD document which will help in understanding the
process from all the levels.
Withholding tax recovery from Vendor is addressed in SAP for all types of recoveries. They are
TDS on Contact and Sub Contracts
TDS on Professional & Consultancy Charges
TDS on Rent
Tax Codes are created for each of the activity and are linked in vendor master data. GL accounts
are created for each of the activity and linked to tax code to enable system to pick up GL accounts
while doing the transactions. TDS can be deducted while making advance payment or while
booking the bill which ever is earlier. TDS certificates can be generated for each vendor and data
for filing annual returns can be obtained from SAP. GGPL has got certain vendors who claim tax
exemption as per TDS act, same is addressed and exemption rate can be maintained in Vendor
master for each tax code.
Srilanka is paying debit tax for all payment realized in banks and stamp duty on collection received
from customer. In SAP Srilanka taxes is not standard functionality however , Debit tax and Stamp duty
taxes can be calculated based on the standard reports provided by SAP. Stamp duty recovery from
employee for salary payment is addressed in Payroll module and same is explained by HR and
Payroll documents.
Srilanka taxes are not having Excise duty, Service Tax requirement. They have vat for purchases and
sales, same can be addressed in SAP by creating tax codes for vat related purchases and sales
using pricing schema and pricing condition in MM and SD so that GL accounts are automatically
determined and postings can happen to FI.

15 MAPPING OF AS IS PROCESS IN BLUE PRINT DOCUMENT
Sr.No. AS-IS Business Process Coverage in Business Blue Print Cover

document ed
(Y/N)
1.00 India Operations AP Process
1.01 Creditor Reconciliation Section 9.1.1 & 9.2 refer Y
1.02 PO Validation Section 9.2 refer Business Y
mapping to R/3
1.03 Bill Booking GR IR Based Section 9.2 Y
1.04 Bill Booking - Freight Outward Section 9.2 Y
1.05 Bill Booking - Trading items Section 9.2 Y
1.06 Bill Booking - Others-Foreign Consultancy Section 9.1 Y
1.07 Bill Booking - Others-Sales Promotion Section 9.1 Y
1.08 Bill Booking - Others-selling agent Section 9.1 Y
1.09 Bill Booking Others Section 9.1 Y
1.10 Debit Note / Credit Note / Party JV Section 9.3 Y
1.11 Advance to Supplier Section 9.4 Y
1.12 Payment - GRIR Based ( Ageing) Section 9.5 or 9.6 Y
1.13 Payment - Bill Booking Section 9.5 or 9.6 Y
1.14 Payment Direct Section 9.5 or 9.6 Y
1.15 Advance Adjustment Section 9.5 or 9.6 Y
2.00 AR Process
2.01 Sales CFA Section 12.1 , & SD Module Y
2.02 Sales Reconciliation Section 12.1 Y
2.03 Account Receivable - Customer Section 12.4 Y
2.04 Account Receivable Others Section 12.4 Y
3.00 Bank Accounting

3.01 Bank Reconciliation Section 13.3, Y

document ed
(Y/N)
3.02 Petty Cash Section 13.4 Y
4.00 General Ledger Process

4.01 Inventory Valuation including CFA Refer 6.11 and also MM & Y
CO document
4.02 Consumption Accounting Refer 6.11 and also MM Y
document
4.03 Exchange Rate Section 3.10 Y
4.04 General Ledger Section 4 Y
4.05 IUT Section 6.1.1 Y
4.06 Payroll Accounting, Process Integration with HR Section 6.1.1 Y
5.00 Accounts Closing

5.01 Forex Management-Currency Valuation Section 3.10 & 6.2 Y
5.02 Closing of Accounts Section 6.2,6.3,9.8 Y
6.00 Taxes
6.01 Statutory Payments- With Holding Tax Section 14 Y
6.02 VAT - Input & Output tax Section 14 Y
6.03 Excise - C & F Section 14 Y
6.04 Service Tax Section 14 Y
6.05 Statutory Compliance Section 14 Y
6.06 S TAX - Collection & Issue of Forms Section 14 Y
6.07 S TAX -Sales Tax Assessment Section 14 Y
7.00 Srilanka Operations AP Process

7.01 Bill Booking GR IR Based Section 9.2 Y
7.03 Advance to Supplier Section 9.3 Y
7.04 Payment - Bill Booking Section 9.5 or 9.6 Y

document ed
(Y/N)
7.05 Payment Direct Section 9.5 or 9.6 Y
7.06 Advance Adjustment Section 9.5 or 9.6 Y
8.00 AR Process
8.01 Account Receivable - Customer Section 12.4 Y
8.02 Account Receivable Others Section 12.4 Y
9.00 Bank Accounting

9.01 Bank Reconciliation Section 13.3 Y
9.02 Petty Cash Section 13.4 Y
10.00 General Ledger Process

10.01 Inventory Valuation including CFA Refer 6.11 and also MM & Y
CO document
10.02 Exchange Rate Section 3.10 Y
10.03 General Ledger Section 4 Y
10.04 Payroll Accounting, Process Integration with HR Section 6.2 Y
11.00 Taxes
11.01 Statutory Payments- Stamp Duty Section 14 Y
11.02 Vat Section 14 Y
12.00 Accounts Closing

12.01 Closing of Accounts Section 6.2,6.3,9.8 Y
13.00 Following points discussed identified as report requirement

and or /part of phase II implementation
13.01 Working Capital Report Requirement Y
13.03 Project Financing Phase II Y

document ed
(Y/N)
13.04 Inter Company Transaction stock transfer Section 6.1.1 Y
13.05 Insurance Report Requirement Y
13.06 Fixed Assets Phase II , Y
13.07 Depreciation Phase II, Y
13.08 Consolidation- part of SEM Section 6.1.1 & Phase II Y
13.09 Income Tax Assessment Report Requirement Y
13.10 Tax Audit Report Requirement Y
13.11 FBT Reporting Requirement Y
13.12 Stamp Duty & Debit Tax Section 14 and Report Y
requirement
13.13 Cash flow statement Report requirement Y

16 REPORTS
16.1 FINANCIAL ACCOUNTING REPORTS

List of reports discussed and identified as standard or z development.
Functional sub unit Frequency of Standard SAP Key functional process
Sl No
Generation
This report gives a summary of the

Mkting Exec. Collection
1 Daily Z Development collections made by each ME (in lacs) date
Summary
wise for the period specified.
This report gives customer wise, Invoice

wise aging as on date. (aging based on
2 AR Aging by Invoice Date as & when standard
Inv Date) (Parameters - customer
type (expo, local, , & GL Account code)

wise back dated aging. (aging based on
3 AR Aging as of Effective Date as & when Standard Inv Date) (Parameters - customer
type (expo, local, Byp), salesperson & GL
Account code) other tan ME
This report gives customer wise,

Commercial Invoice wise aging in IN R and
Class wise AR Aging by Due foreign currency as on date. (for export
4 as & when Z Development
Date customers)
(Parameters - customer type (expo, local,
Byp), salesperson & GL Account code)

wise collections done for a particular period
5 Mktg/Cust Collection Analysis as & when Z Development along with the no of days taken for the
Invoice to be realized from the Inv date
along with the aging. ME wise
This report gives a summary of the amounts

getting due week wise in the coming month
6 Class wise Collection Due as & when Standard for each customer. (This can be generated
salesperson wise or customer wise) ,
standard other than ME
This report gives the listing of the sum total

of all the transactions that have taken place
with a particular party during a particular
7 Debtor Ledger as & when standard period and for export parties it should give
the transactions in foreign currency.

Sl No Functional sub unit Frequency of Standard SAP Key functional process
Generation
This report gives a list of balances lying in

the accounts of various parties as well as
8 Debtors Trial Balance Annually standard
summary of the transactions entered into
with the party during the given period.
This report helps in checking whether a

particular cheque has been received by us,
if yes, then to what customer account it has
9 Payment Inquiry as & when standard
been credited to and against which
Invoices it has been adjusted. This check
can be done using invoice number
This report helps in checking in which party

the particular invoice has been generated
10 DR/CR Memo Inquiry as & when standard and whether the said Invoice has realized,
if yes, against which cheque N o. the same
has been realized.
This report gives you a list of amounts and

their respective cheque No.'s which had not
been adjusted against any invoices when
11 Payment Application Register as & when standard the same had been received but the same
had been adjusted at a later date and it
also gives the Invoices against which they
have been adjusted and on which date.
This report gives salesperson wise, customer

wise comparison of outstanding on two
Sales Person wise O/ S
12 Daily Standard different dates. Further it also gives SBU
Comparison
wise debtors status as on a particular date.
Multiple reports to be used
This report gives a list of total customers

along with their codes, group codes,
respective MEs, credit limits, cr terms,
13 Customer Master in Excel as & when Standard Type, Region, currency, city, state, country
& AR Acct.
This report would give a list of Bounced

14 List Of Bounced Cheques. as & when Z Development cheques for a particular period along with
ME's name
Export Ar Aging in foreign This report would give the aging of export
15 currency with effective date. as & when standard parties in their respective currency with the
(Back dated aging) provision to generate back dated aging.

Generation
This report would give the overdue aging of

Ar overdue aging report with domestic as well as export parties in IN R
16 effective date. (Back dated as & when standard with the provision to generate back dated
aging). aging. It would also show the not due and
overdue amounts separately.
This report would give a list of credit notes

17 Credit Note Register as & when standard
passed in a particular period.
This report would re-evaluate the export

debtors in foreign currency as on a
Report revaluating debtors as
18 as & when standard particular date at the existing exchange rate
on a particular date.
and throw up the Exchange Gain/ Loss in
the process.
This report would give the collections "for

Collections & Debtors status as the day" and "MTD" with SBU wise
19 Daily Standard
on a particular date bifurcation and Local / Export wise
bifurcation.
Pay in slip is the document indicating the

various cheques sent to the bank every day
20 Pay-In-Slip Printing Daily Z development
with bifurcations such as Local, High value,
outstation & transfer cheques.
Bank receipt voucher is the document

indicating the amount received from various
parties and sent to a bank on a particular
21 Bank Receipt Voucher Daily standard day. It also gives details as to the party
code, cheque N o, Amount, Invoices
against which the amount has been
adjusted, the bank code and Date.
This document gives details of credit given

to a particular party on account of rejection,
22 Credit Note Printing as & when standard short receipt, rate diff etc. It also gives
details of the party code, Party name,
Amount, GL Code, Inv reference & Reason.

wise aging as on date. (aging based on
Customized AR Aging by
23 as & when Z Development Inv Date) (Parameters - customer
InvDate
type (expo, local, Byp), salesperson & GL
Account code)
This report gives a summary of the amounts

getting due week wise in the coming month
24 Class wise Collection Due as & when Z Development
for each customer. (This can be generated
salesperson wise or customer wise)

Sl No Generation
Repairs and Maintenance - Preparation of department wise repairs and

25 Monthly & YTD Standard
Department wise (Excel) maintenance incurred
Department wise & Employee wise

Travel Expenses (statement in Domestic, Foreign, Hotel Stay,
26 Annual Standard
excel) Conveyance, and Lunch on duty expenses.
Department wise report can be generated
Debit N ote/ Credit N ote

27 Once Zdevelopment Debit Note/Credit Note Register
Register
28 Aging Report As & when Standard Debtors outstanding Status
29 Debtors Ledger As & when Standard Customers Account
30 Receipt Settlement Daily Standard Advance Application
31 Collection Register Daily Standard Collection Register
32 AR/VS GL As & when Standard Reconciliation
33 Debtors Ledger As & when Standard Sales & collection transactions
34 Debtors Trial Balance As & when Standard Abstracts of Accounts
35 LC Register As & when GAP Due date wise LC Records
Monthly / As &
36 Bank Book Printing ( Bank ) Standard printing of Bank statement from system
when
Bank Book Printing ( Company Monthly / As &

37 Standard printing of Bank book from system
) when
38 Manual Matching Bank Daily Standard Bank Reconciliation
Manual Matching -Company-

39 Daily Standard Bank Reconciliation
>Bank
40 Manual Matching -Bank Daily Standard Bank Reconciliation

Sl No
Generation
41 Manual Matching Bank Reco Daily Standard Bank Reconciliation
42 Bank Pass Book Printing - Monthly Standard Bank Reconciliation
43 Dr. by bank but not accounted Monthly Standard Bank Reconciliation
44 Cr. by bank but not accounted Monthly Standard Bank Reconciliation
45 cq. Issued but not presented Monthly Standard Bank Reconciliation
cq. deposited but not credited -

46 Monthly Standard Bank Reconciliation
Standard
47 Bank Reconciliation Statement - Monthly Standard Bank Reconciliation
48 Bank Reconciliation Statement Monthly Standard Bank Reconciliation with various annexure
49 Cash book/Bank Book - Monthly Standard Book generation
50 Sales Register Monthly Standard Invoice wise customer wise sales register
51 General Ledger - Monthly Standard Individual GL printing
52 JV Journal - Monthly Standard Journal Printing
53 Accounts Balance Summary As & When Standard Individual GL printing

Generation
54 Accounts Balance Details As & When Standard Individual GL printing
Transaction Activity for Given

55 Quarterly Standard Stores Reconciliation support report
Account -
56 Voucher V/S Grir Matching Quarterly Standard PO Receipt reconciliation
57 Debit Balance Quarterly Standard Party wise transaction wise debit balances
Grir recpt.-Tax wise / a/ c

58 Quarterly Open Clarity awaited from GGPL
code wise
59 Grir recpt.-Tax acct. vou.wise Quarterly Open Clarity awaited from GGPL
60 Creditors Trial Balance Monthly Standard
Debit N ote / Credit N ote Product W ise Party wise Debit note / credit
61 Quarterly Standard
Register - Customer Note register with details ED & Sales Tax
Monthly/Otly/
62 Trial Balance Summary Standard Financial GL Account Abstracts
Yrly
63 Trial Balance Detail As & When Standard Financial GL Account Abstracts
Monthly/Otly/
64 Balance Sheet Standard Financial GL Account Abstracts
Yrly
Monthly/Otly/
65 Income Statement Standard Income & Expenses data
Yrly
Monthly/Otly/
66 Balance Sheet comparative Standard Financial GL Account Abstracts
Yrly
Monthly/Otly/
67 Income Statement comparative- Standard Income & Expenses data
Yrly
Down Load -Accounts Monthly/Otly/

68 Standard Consolidated Financial Report
Balance Details Yrly

Generation
69 GL Calendar Report - As & when Standard Selection on calendar year
70 Format Position Report As & when Standard Financial statement format report
71 Account Code Report 2 As & when Standard GL accounts report
Consolidation of P&L and B/ sheet for

72 Combine GL, B/Sheet & P&L Monthly Standard
Jambusar, Kosamba & Corporate
Reconciliation of inter unit transaction for

73 IUT Reconciliation Monthly Standard
payment, material, debtor & Fund Transfer
A statement of prepaid Insurance with other

74 Prepaid Insurance Regular Standard
details to monitor insurance accounting
To ensure timely process of getting quotes

75 Policy History Records Regular Standard
for insurance
76 Fixed Asset for Fire Insurance As & when GAP- FA related Available once FA is implemented
Item wise voucher wise details for

77 Capitalization Monthly GAP- FA related
capitalization
Project Code wise sanctioned, utilization &

78 Project Control Sheet As & When GAP FA related
Balance
79 Depreciation Monthly GAP- FA related Accounting & MIS Computation
80 Freight Liability posting- fortnightly GAP Liability of transport
81 Export Freight Liability posting- As & when GAP Liability of transport
Export Freight paid unpaid

82 As & when GAP Z Development
report -
83 Cheque Status As & when Standard
84 Supplier Advance Register list As & when Standard Supplier Pending Advance status
85 Creditors Aging Report As & when Standard Suppliers Status due for payment

Sl No
Generation
86 Creditors Ledger Monthly Standard Individual Creditor Ledger printing
87 Voucher Mail Register - As & when Standard List of cheque prepared on particular date
88 Voucher Mail Register - As & when Standard List of cheque prepared on particular date
Details of certificate received from party for

89 Tax Certificate Register As & When GAP
reduced rate / No TDS
details for contractor

90 ETDS Certificate details Quarterly Standard
, professional , rent & employee
91 Fringe Benefit Statement Quarterly GAP To Calculate to FBT Liability
92 Control Register As & When Standard TDS deduction & Investment Register
93 Withholding Tax Monthly Standard Statutory
94 Withholding Certificate Monthly Standard Statutory
Register for taking acknowledgement from

95 Withholding Register Manual Monthly GAP
supplier
96 Withholding Tax Return Monthly Standard Statutory
97 Stamp Duty Monthly GAP Statutory
98 Stamp Duty Return Quarterly GAP Statutory
Purchase Register - Tax, Party & Tax Code wise, Party wise & Invoice wise
99 Quarterly Standard
Invoice to issue form
Debit N ote/ Credit note

100 Monthly Standard VAT Output and Input Tax
summary for VAT
101 VAT Return Monthly GAP Vat Returns format
To work out refund applicable for tax paid

102 Sales Tax Exemption Register Monthly GAP
on Gujarat purchases

Generation
W orking to total incentive utilized by refund

103 Incentive Return Monthly GAP / remission and Balance available on the
month end.
Details of Branch Transfer & work out

104 Branch Transfer Register Monthly GAP
reversal of tax credit
Quarterly/Yearl
105 Income tax & Return GAP Statutory
y
To have head wise details of receipts &

106 Cash Flow -/ Manual Daily Standard
payments

17 ANNEXURE-A: SUMMARY OF DISCUSSIONS
Sr. No. Discussion Point on Blue Print HP Response Remarks Status
Page N o. 37 Section 10 N o Service Tax input credit is Zreport for Close
mention of Cenvat against addressed in standard CIN encashment
Service Tax -procedure indicated along with z report for Details
in SD-HP. Not mentioned in BBP. of cheque encashment of
1
vendors for the purpose of
submitting it to tax authorities
on payment base.
Page:4, Section:1.1 Scope of Nattandiya process is Close

Nattandiya not included discussed separately and is
2 considered part of current
scope
Page:4, Section:1.1 Only One One sand processing plant is Close

3 sand processing unit instead of in N attandiya & one in
two at CGC-NAT Keenakalya
Page:5, Section:1.3 There was Interview in this context means Close
only AS-IS process presentation discussion
4 not the interview as mentioned in
the report
Page:6, Section:1.3 To know Key requirements are major Close

5 whether key requirements are functions in business process
Checklist or something else
Page:6, Section:1.3 As is General comment Close
6 process need to be discussed in
detail
Page: 6, Section: 1.3 W hat is Major development involving Close
meant by 'no significant SAP access key.
7 configuration choice has been
identified'???
Page:8, Section:2.2 W e need to N ew Company code Close

discuss and confirm Organization requirement is withdrawn by
8 Structure with Management in GGPL
light of re-alignment of business at
CGC
Page:10, Section:2.3 How Close
segment reporting(Pharma & through report painter PCA
CN P) requirement is address - and geography wise report
9 separately ,COPA.business
looking to business area
area report will be at plant
level and not sbu level

Segment reporting annual Reporting is available for p&l Close

account geographical and others , for B/ s items can be linked
to profit center and reports
10
can be generated , assuming
FA is implemented in fist
phase
Page:11, Section:3.1 Account Account group is created at Close
group and COA was submitted COA level, during master
11 before release of this blue print as data preparation, this will be
per our point of view filled up with co code level
and additional gl accounts
Page:12, Section:3.4 How Addressed, Report through Close

12 Quarterly closing issue is FSV.
addressed in SAP
Page:13, Section:3.6 Posting Key is defined for Dr or Cr for Close
13 Key need to see in detail GL or Vender or Customer.
Page:13, Section:3.7 Document KR for Vendors, RV for Sales Close
14 type need to understand in detail
Page:13, Section:3.9 How profit Appropriation A/ c to created Close
appropriation entries will be and marked as P&L A/ c
taken care for retained earning linked with Retained Earnings
15 net balance to be carried to A/ c. A J/ v to be passed.
Balance Sheet - Specifically for Reporting for Financial
Auto Posted Statements needs to be
checked.
Page:14, Section:3.10 For sd billing, system will Close
Exchange rate should be spot pickup system rate, and
rate on the date of transaction agreed. For imports,
instead of pre defined rate for a Differential rate (system rate &
particular period bill rate) is updated to
16 inventory at the time of IV, if
the stock is available it will hit
inventory otherwise p&l as
price difference
Page: 14, Section: 3.10 1. informed to use with reversal Close

Exchange revaluation at qtrly and just to check 12 month
closing reversal posting
17
Page: 14, Section: 3.10 2. Close

Subsequent gain / loss for those
18 items should be compared with
previous qtrly closing v/ s issue addressed, to have
transaction exchange rate separate revaluation account
and gain or loss account
Page:17, Section:4.2 Reversal Close
process should not happen at the
19 end of Fiscal Year.( N EED TO
accrual reversal and normal
UNDERSTAND IN DETAIL)
reversal explained
Page:19, Section:4.8 Open Item Close
20 need more clarity through live
examples
OI explained
Page:21, Section:5.1.1 W hile System checks for the Account Close
creating new account number code and control at duplicate
system should prompt for any account number level.
21
duplicate account
narration/ similar type of narration
being entered
Page:23, Section:6.1 Parking of Parking of document is not Close
22 documents generated via part of Recurring document
recurring document
Page:23, Section:6.1 account N ew functionality is SAP Close
assignment model and reference explained and is additional
document need to be explained feature. Template creation for
23
posting and reference
documents copying for
posting
Page:24, Section:6.1.1 N ew functionality is SAP Close
Reclassification posting and other explained and is additional
points need to be explained in feature. Adjustment posting ,
detail( all these 4 posting accrual postings , rectification
24
methods refer to which as-is postings
process and at which point of
time and also for IUT Transaction
)
Page:24, Section:6.1.1 Detail IUT accounting explained and Close
discussion on IUT is required flow to be shown during
scenario testing
25
Page: 26, Section: 6.2.1 W hat transaction wise details of Close

is manual reconciliation and for documents can be generated
26 what activity. using transaction codes ,
useful if auditor asks for
control check on documents
Page:26, Section:6.2.1 W hether Close

closing process will continue even closing process is possible,
if parked documents are still there but need to follow process of
27 verifying pending parked
document to be followed
every month before closing
Page:27, Section:6.3 Balance carry forward Close
Recommended procedure for program needs to be run end
28 year end closing and balance of the year, and closing
carry forward process need to activities needs to be
understand in detail followed.
Page: 30, Section: 7.2 Vendor Material can be booked for Close
invoice to be booked fully. In full value and debit note can
case of any discrepancies Debit be raised separately for
note / Credit should be booked rejected item which will have
automatically and alert should be GR reference. The Return GR
raised. DN/CN Should not effect will be sent to accounts for
29 inventory valuation. debiting the vendor. Printing
of the return Gr in vat format.
To check with MM for Z
development or standard Print
out as per vat format
Page: 30, Section: 7.2 Except Jumbo bag treatment can be Close
Jumbo Bag credit treatment, addressed by creating
30 freight difference retrospective. separate line item in Purchase
%age deduction in case of sand Order. Realization time to be
should not effect inventory checked
Page: 30, Section: 7.2 Part of Payment can be made Close

freight is being paid to driver separately to both the parties
while balance is being paid to
vendor. ( how to handle the same
31
in SAP)
Page:31, Section:7.5 W ill AP Vendor open item will show close

Bill Booking give alert for any debit balance and credit
32 advance given against a balances for the vendor.
particular Purchase Order/ Debit Report can be generated on
balance against that vendor any particular date.
Page: 31, Section: 7.5 N O W hile Advance payment close

Vendor settlements against the PO P.O. No. has to be assigned.
without adjusting advance W hile making payment
against that po. advance can be adjusted
against the Purchase order
33 during APP run or can be
manually adjusted during
open item selections. LOI
number can be edited with
Purchase Order number in the
Assignment field
Page:31, Section:7.5 Installment Down payment request is Close
payments in PO like 10% adv , raised by requesting
20% against rcpt etc ----- How is department, submits request
handled in SAP document along with request
34 number to finance. Finance
will release payment by
selecting the down payment
request and release down
payment
Page:31, Section:7.5 How to Advance against LOI can be Close
give advance against LOI and paid but PO number has to
35 handle the same subsequently be assigned in assignment
column subsequently
Page: 31, Section: 7.5 Services Service confirmation is Close

provided under AMC, how addressed , with service
36 accounts will know whether master and service entry sheet
service is provided or not. approvals
Page:31, Section:7.5 W hat type Several authorization are Close

of authorizations are there for available including additional
37 automatic payment proposal authorization in free selection
options
Page: 31, Section: 7.5 Special Discussed about employee Close

General Ledger Indicatory need loans and other various
38 to see with practical examples. account handling with
employee wise account wise
details
Page: 33, Section: 8.2 Page 33 Page to be deleted Close

39 Section is not explained. ( Part
info is missing
Page:35, Section:9 How to track Provision of special GL Close
security deposit given to various Indicator in aging report
40 vendors / customers without option. These deposits will be
reflecting in aging report / Party bypassed in case of normal
account aging report.
Page: 35, Section: 9 For GRIR need to be prepared at Close

purchases at HO, we are raising HO also and accordingly
PO for various items but GRN is payment can be released.
41 not prepared. In such cases how This will help to maintain
Bill booking is handled. asset register also. Discussed
with Prakash Birla
Page:35, Section:9.1.1 In case W ith Tax code structure it can Close

statutory deductions are be possible.
42 maintained in vendor master then
how different tax rates will be
handled in the system
Page: 35, Section: 9.1.1 Through One time Vendor Close

W ithholding tax to one time creation, this is possible
vendors without going through AP
module - i.e. direct payment. -
43
How this process is handled in
the SAP and we need to issue
TDS Certificate also
Page:35, Section:9.1.1 Vendors There is Field in Master for Close

with concessional withhold tax giving Exemption rate. For
44 certificate - how to maintain the each tax code exemption rate
same can be maintained
Page:36, Section:9.2 Inventory Correction to be done in Blue Close

45 posting to consumption and Print.
inventory valuation misunderstood
Page: 36, Section: 9.2 Some Addressed in sub contract Close
Service orders where material is third party scenario. Scenario
46 also being supplied by vendor in unit testing
(on site / outside site). How
material accounting will be done
Page:36, Section:9.2 Purchase Purchase order to be put in Close

Order where GRN is not assignment block during
prepared we want to know how document. It is only text field
47
much payment is made against and for reference only. N o
that PO Control or check will be
there.
Page: 36, Section: 9.2 For PO for different rate contract , Close
Engineering spares where Rate will be addressed through
48 Contract is issued, how GRIR will delivery schedule
be prepared on receipt of spares
at various point of time.
Page: 36, Section: 9.2 In Goods Vat and Cenvat are part of Close
Receipt what about VAT, standard SAP CIN
49 CEN VAT account etc. These functionality and are linked to
need to be linked with Excise excise module
module
Page: 36, Section: 9.2 Credit of Excise document number will Close
VAT and Cenvat taken in excise have reference of GR
module for each GRN is document
required. Purpose of this to have
50
internal check whether credit is
taken or not and duplicate copy
of transporter bill received or not
Page:36, Section:9.2 Import This can be addressed Close

GRN need actual working for through partner function and
51 customs , CVD and other charges planned and unplanned
for each item and payment need delivery cost. During IV actual
to be linked PO wise freight cost can be put.
Page:36, Section:9.2 Import Assignment during Payment. Close

Deposit to port authority need to Special reconciliation account
be tracked order wise can be defined for making
deposit payment to various
52 authorities like Port authority,
container deposit etc. N EED
TO check actual transaction
for import GRIR
Page: 37, Section: 9.2 Provision In Standard available, TDS to Close

for alternate payee should have main vendor and payment to
53 proper checks and control (i.e. the driver through alternate
For each payment authorization is payee
required)
Page:37, Section:9.2 Outward Creation of liability is possible To be Close

freight payment should create through price schema through considered in
simultaneous service tax as MM. ZProgram relating to WM
liability cheque encashment dates.
Through Service Order and
Service entry sheet, freight
54 outward can be booked and
service tax liability can be
created. Freight Provision at
the time of delivery to be
considered
Page:37, Section:9.2 Inward part of standard functionality Close

services should have cenvat as in CIN , report to know
55 well as liability for service tax - encashment by vendor for
link with excise system on service tax related
payment basis transactions to be provided
Page: 37, Section: 9.2 In case On Receipt, transfer to CW IP Open

of capital goods receipt GRN is possible but later part of
would affect directly CW IP quantitative records and
account and there should not be value, needs to discussed
56 any further financial entries in the with MM. further clarification
system (i.e. at the time of issue of
goods). But quantity accounting
need to be maintained
Page:37, Section:9.2 How It is part of standard sap Close

CEN VAT accounting is taken functionality. Condition type
57 care in case of goods are manual
purchased through Trader
Page: 37, Section: 9.2 In case It is part of standard sap Close

of furnace Oil price is mentioned functionality. Condition type
as inclusive of taxes and cenvet is manual
58 charged based on the accessible
valued being fixed by the vendor
at the time of dispatch.
Page:37, Section:9.2 Discount in Quantity discount addressed Close

IOCL procurement need to in SAP
59
discuss with MM for inventory
valuation
Page:37, Section:9.2 W hat if part of standard SAP Close

GRN is prepared and material is functionality, difference will
60 consumed also then PO need to go to price differences
be amended for pricing etc account
Page:39, Section:9.3 For every This is addressed in SAP MM Close

Goods inward GRN should be standard functionality
prepared and in case of rejection
Return to supplier document need
61
to be prepared to track all the
GRN as well as vendor
evaluation purpose
Page: 39, Section: 9.3 In case Retention money of 10% can Close
of Project PO there is a provision be moved to retention money
of retention money (say 10%). spl gl indicator and tracked
62 How to track the same to ensure separately. Payment control is
that payment is not released for addressed on spl gl indicator
that outstanding amount
Page:41, Section:9.5 Residual Explained Close

63 Items to be explained
Page:45, Section:9.8.1 Aging Aging report as on a Close
report as on a particular date particular date can be
need to be generated ( for generated ( for example
64 example today we want to today we want to generate a
generate a report for 31/ 03/ 06 report for 31/ 03/ 06 on
on 15/09/06) 15/09/06)
Page:45, Section:9.3 Employee Loan tracking is possible Z report for Close

entitlements need to be tracked through system (Via Payroll or travel
through HR Module and in case Special Ledger Indicator). advance
of direct payment an entitlement Forex travel advance report
pop-up should be available at the procedure explained and
65 time of making payment Zprograme is required to take
travel advance outstanding
report. Policy related
payments will be routed
through payroll other than
travel expenses
Page:45, Section:9.3 Payment This is standard functionality Close
receipt from vendor should be
66 allowed in AP module and
similarly Payment to customer
Page:49, Section:10 How Vendor will be created by HR Close

67 Employees will be treated as through a program run.
vendors
Page:49, Section:10 Flexibility Customer group level and Close
should be there to define credit customer level credit limit is
68 limit at individual customer level possible
as well as customer group level
Page:49, Section:10 W hile Standard SAP function, Close

checking for credit check system confirmed with SD
69 should verify for timely payments
also
Page:49, Section:10 Shipment Z reports for tracking C forms Considered Z-Development

should be restricted in case due to Vendor and Customer in report list
70 customers has not given C-Form
for previous qtr
Page:49, Section:10 How LCs LC is a payment guarantee Close

will be handled while checking and based on this the credit
for Credit limit and collection block of the default customer
71 will be removed using a
transaction. The authorization
to the transaction is restricted.
Page:49, Section:10 LC Tracking To tracking of LC is available, Close

is required but to work around looking to
Foreign trade module or Bills
of Exchange procedure ,
72
suggested to use bills of
exchange procedure for lc
tracking
Page:49, Section:10 Standard report gives Total Close

Outstanding report is required report for Bill to party only but
sold-to wise in their respective for Bill to party whatever is
currency with an option to the currency, ageing can be
generate report in our company received currency wise like
73 code currency USD, Euro, and GBP as well
as in the reporting currency.
To understand with SD for
group reporting.
Page:52, Section:12 How to Is not possible and Close

redefine one time requirement is removed
74 vendors/ customer into regular
type of customer/ vendor or vice
versa
Page:52, Section:10 How If it is one line item, then it is Close
trading sales where an invoice is not possible to separate
prepared in Toto ( i.e. Bottles , Trading sales from Export
75 caps and brushes) will be Sales, but if it is separate line
captured item then only it is possible.
Trading revenue gl to be
created
Page:52, Section:10 Accessories It is addressed in SAP and Close
sales directly at port and confirmed with MM for 3rd
76 additional recovery in commercial party purchases
invoice should be covered
Page: 55, Section: 10 Credit Credit note is part of standard Close

notes can be raised even after sap functionality
77
getting full payment against an
invoice.
Page: 52, Section: 10 C&F A report can come through Point to be Close
Sales need to be accounted plant Profit centre accounting. & to removed
78 wise. Employees incentive is check with HR for incentive
linked with it calculations. HR is discussing
this point with CO & PP
Page:52, Section:10 How Part of standard functionality Close

differential duty for C&F sales will in CIN , RG23D register is
79 be calculated and accounted in updated. Additional excise
the system entries can be posted
Page:52, Section:10 How BRS is part of standard Close

collection at different location will functionality. To provide
80 be accounted in lieu of CMS paying slip reference at the
facility time of reconciliation.
Page:52, Section:10 Any Reversal at old price is Close

reversal of export sales should be possible. Checked by FI with
81
done at old rates ( i.e. Invoice SD
rate)
Page:52, Section:10 Stamp duty Z development to track stamp Considered Close
charges need to be calculated on duty payable in report list
82 collection of Payments from
Customers - CGC Requirement
Page:60, Section:13 Bank If bank statement is the Z Development

Statement upload facility to be required format of SAP,
83
provided through Z programme it is
possible.
Page:61, Section:13.2 Bank BRS is part of standard Close
code setting should be done for functionality. To provide
84 CMS purpose also paying slip reference at the
time of reconciliation.
Page:61, Section:13 Loans from Cash flow statement is part of Considered Close
85 various institutes / Banks - how to standard sap functionality, in report list
handle with respect to cash flow information will be available.
Page:61, Section:13 Date of W ith Z programme for Considered Close
check clearance need to be cheque encashment it is in report list
86 tracked and linked with Service possible.
tax/cenvat availment
Page:61, Section:13 Calculation Z program for debit tax Considered Close

87 of Debit tax should be done from calculation is required in report list
the system - CGC Requirement
Page:64, Section:13.4 Interest Available without Posting. Close
verification in case of OD Interest Calculation is possible
account for Bank Accounts,
Customers, Vendors and any
88
other GL which is balance
managed account. Display is
possible through test
simulation
Page:64, Section:13.4 In case Cash Sales collection is auto Close
of petty cash there should be postings. And from this
provision of restricting overdrawn separate account only fund
89 transfer to be allowed for
money deposit in bank
account. It can be addressed
in SAP.
Page: 66, Section: 14 Srilankan Srilankan tax will be Close
Taxes has not been considered. addressed using India tax
90
version and withholding tax
also addressed
Page: 66, Section: 14 FBT N o Standard available, to be Considered Close
calculations not considered into part of z development in report list
91
Blue Print.
Page: 66, Section: 14 Service Service tax credit capturing Realization

Tax Charge, Cenvat, Liability not and utilization are standard
92 considered. functionality in SAP. Service
tax register is Z development
Page, Section: 14 VAT Input Standard SAP functions, at the Close

93 credit is on the basis of Bill time of bill booking. Through
booking and not GRIR. clearing account
Page, Section: VAT Input Credit is Input credits to be reversed for Close
not available in case of Branch bottles manufactured and
Transfer. It's a charge to P&L and transferred to depot. Manual
system to give value of such entries to be passed for
94
charge reversal. Multiple reports from
MM, PP and transfer to depot
required
Page, Section: On certain Is available in standard. Close

Materials VAT input credit is not
95
allowed, its charge to P&L
account.
Page:, Section: On receipt of Procurement needs to be Close
Gas, if it is used for CPP Vat addressed through pipeline
credit is not allowed and for other processing. Adjustment of Vat
96 use total credit is restricted after for the gas consumed at CPP
deducting 4% needs to be adjusted in
Finance by passing JV
Page, Section: To create liability To check URD treatment in Realization

for purchases from URD dealers. MFGPRO and to address at
97 And on payment, credit can be the time of realization
taken.
Page, Section: Jambusar - VAT Vat output tax payable and Close
treatment is altogether different. Vat input tax Receivable to
have separate GL account.
Same will be set off on
account of assessment. Also
need to track exemption limit
98 on sales to of 80 crores
within Gujarat (vat) through
report
Page:, Section: Service tax Report for service tax input Close
distribution from H.O. credit from HO, bifurcation of
credit for different location on
99
manual basis. JVs to be
passed through clearing
account
Energy Utilization Quantity cost Discussed with CO & PP is Close
100 centre wise for FI entry CC part of CO discussion
account wise.
Commission to Agents for Sales Commission payable to Z Development
101 selling agents based on sales,
collection.
Outward Domestic Freight on To be Close
102 Local Sales as well as Export considered in
Sales WM
Outward Sea Freight for Export To be Close
103 Sales considered in
WM
Blue print is prepared without Reports and wish list Close
104 considering reports and wish list discussed and finalized
head Office / CFA name not Discussion taken place on Close
105 mentioned Head office process,
CFA Sales Plant wise report CFA Sales Plant wise report is Close
possible at COPA Level.
106 (Either Batch wise or Separate
storage location)
Incentive calculation - CFA sales To check with HR for Incentive Point to be Close
107 calculation for CFA Sales. HR removed
is discussing with CO & PP
Inventory Valuation at CFA for Inventory Valuation at CFA for Considered Realization
both plants both plants discussed with in CO
108 CO and to address during
realization
Form "C" for Interstate Purchases Separate screen for capturing Considered Close
on quarterly basis. C form against Invoice in report list
booked as Z developemnt. Z
109
report will be developed
based on the this info for
outstanding C forms
18 GAPS
Freight outward bill booking for Domestic and Export Freight (up to Mumbai Port) is currently captured in
Freight Module S/W maintained by GGPL. This is not part of Standard SAP Module. SAP FI application
support only accounting of Freight Outward charges based on the bills provided by the freight vendor.
This requires a development to identify LR wise, Invoice wise freight charges to respective SBU. Postings
can be made to FI using normal bill booking process via z program, if above data is generated.
Electronic Bank Statements are downloaded to MFGPRO accounting System for the purpose of Bank
Reconciliation at Kosamba and Jambusar. This has got an interface with Bank and MFGPRO. Standard
SAP system will not address the interface with external Software, it requires a development.
Commission to Agents is currently paid based on sales made by each agent and timely payment
received from customer. This is not the Standard SAP functionality as it requires a development to identify
the sales made by each commission agent, also should check for various payment parameters like,
timely payment, full payment and not partial payment. Postings can be made to FI using normal bill
booking process via z program, if above data is generated.
FBT calculation is required from system for GGPL. Same is not part of standard SAP functionality and
program needs to be developed for calculation of FBT separately. How ever information is available in
GL accounts and FBT calculation can be done manually based on available information.
C form tracking and endorsement of C form received in system. System should show balance C form to
be collected from customer at any point of time from customer. Similarly to track C forms to be issued to
vendors for purchases made has to be tracked. C form details to be collected is standard SAP report
functionality where as endorsement of C form and identifying the balance C form is not part of SAP
functionality. Z program has to be developed for endorsement of C forms.
.
19 BUSINESS BLUE PRINT FINANCIAL ACCOUNTING MODULE
US & UK
19.1 FINANCIAL ACCOUNTING PURPOSE
The Financial Accounting (FI) application component fulfills all the international requirements that
must be met by the financial accounting department of an organization. It provides the following
features:
Management and representation of all accounting data
All business transactions are recorded according to the document principle, which provides an
unbroken audit trail from the financial statements to the individual documents.
Open and integrated data flow
Data flow between Financial Accounting and the other components of the SAP System is ensured by
automatic updates.
Data is available in real time within Financial Accounting. Postings made in the sub ledgers always
generate a corresponding posting in the general ledger.
Integration:
Integration of Financial accounting with other components
All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR)

components are posted real-time to Financial Accounting by means of automatic account
determination. This data can also be passed on to Controlling (CO).
This ensures that logistical goods movements (such as goods receipts and goods issues) are
exactly reflected in the value-based updates in accounting.
Integration within Financial Accounting
Every posting that is made in the sub ledgers generates a corresponding posting to the assigned
G/ L accounts. This ensures that the sub ledgers are always reconciled with the general ledger.
Following are the sub components of Financial accounting applications which are considered for
Phase I implementation in FI.
General Ledger (FI-GL)
Accounts Payable (FI-AP)
Accounts Receivable (FI-AR)

Bank Accounting (FI-BL)
19.2 SAP FINANCE ORGANISATION STRUCTURE FOR GG-US & GGI
& PIR UK
To cater for external and internal accounting requirements, SAP database is designed with
organization structure objects, which are configurable according to user s requirements. Overall,
these organization objects, such as company code, are hierarchically integrated to ensure that any
business data are properly stored and linked within the organization.
Considering the modules to be implemented for US, and the following Financials organizational
structure object is relevant for external accounting purposes:
As per the understanding, it is assumed that GGPL has got two subsidiary companies in US. GG-
USA is involved in Trading Operation while GGI is involved in Glass Operation, Plastic Operation,
and Parma-tech Operations and also in UK. Accordingly we are suggesting one Company Code for
GG-US to manage Trading activity and one Company Code for GGI to manage Manufacturing
Activity and one company code for UK. These Company codes will be using the year independent
fiscal year April to March in SAP. The Fiscal year is considered as April to Mar to ensure common
Fiscal year across GGPL subsidiaries. Since GGPL Group Company is located in India and its legal
reporting period is April - March and it has to submit its group company financials, hence the
common fiscal year variance across subsidiaries.
19.3 DEFINITION OF SAP ORGANISATIONAL UNITS
Definition:
COMPANY:
An organizational unit in accounting which represents a business organization in a particular country
An organizational unit for which individual financial statements can be drawn up according to the
relevant commercial law
A Company can consist of one or more Company codes
GGPL is considered as Company in SAP, but naming convention has to be finalized.
Currency of the Company GGPL will be INR
COMPANY CODE:
A company code is the smallest organizational unit for which complete, independent accounting can
be carried out. This includes the entry of all transactions subject to posting and the creation of all
items for legal individual financial statements, such as the balance sheet and the profit and loss
statement.
Company code application for GG- USA and GGI & PIR UK
A company code needs to be created for both the companies and all the posting from various
modules will be updated to the individual company code for reporting purposes. The company Code
Currency will be USD for US and GBP for UK.
BUSINESS AREA:
Organizational unit of external accounting that corresponds to a specific business segment or area of
responsibility in a company. Movements in value entered in Financial Accounting are assigned to
business areas.
Financial statements can be created for business areas for internal purposes.
Business areas are used in external segment reporting (over and above company codes), based on
the significant areas of operation of a company (for example, product lines, branches)You define
business areas if you wish to create a balance sheet and a profit and loss statement for internal
areas, in addition to company codes.
Business Area application for GG-USA & GGI & PIR UK

W e have assumed GGI has got three locations and each of the locations is treated as business
area. W e have assumed that the requirement is similar to the requirement of GGPL-India for business
areas.
PLANT:
A plant is a place where either material is produced or goods and services provided and Material
Valuation takes place. Considering the requirement we are treating manufacturing location as plant.
20 FINANCIAL ACCOUNTING BASIC SETTINGS US & UK
20.1 CHART OF ACCOUNTS
Definition
Chart of account is a list of all G/ L accounts used by one or several company codes. It is shared by
Financial Accounting as well as Controlling. For each G/ L account, the chart of accounts contains
the account number, account name, and the information that control how an account functions and
how a G/L account is created in a particular company code.-
GGI, PIRUK and GG-USA will be using the Common Operating Chart of accounts.
20.2 ACCOUNT GROUP
Definition
Account group is used to classify certain G/ L accounts of same features in the chart of accounts, for
example assets and liabilities. On the other hand, proper number range can be assigned such that
accounts of same nature will appear next to each other in the chart of accounts.
W e have assumed that, GGI is currently using only one account group for all the chart of accounts
list. Considering the GGPL group company reporting requirement, even GGI and GG-USA & PIR UK
should follow the same account group structure, as the Operating chart of accounts are common
across the group and also should help in reporting financial statement.
20.3 FIELD STATUS GROUP
Definition
SAP provides for definition of control parameters called Field Status Groups, which control
maintenance of various fields in the transaction screens during input. In R/ 3 system, it is possible to
specify the field status via field status group, which is specified for each G/ L account. In order to
minimize definition of field status group, R/ 3 allows referencing to a same set of field groups via
field status variant.
Field status group determines the status of each field, which user can enter the value during posting.
The status can be either:
Optional
Mandatory
Suppressed
A particular field status group may be assigned to a particular G/L code
20.4 FISCAL YEAR AND ACCOUNTING POSTING PERIOD
Definition
A fiscal year is generally a period of 12 months for which the company produces financial
statements and takes inventory. It may or may not correspond to the calendar year.
A fiscal year variant specifies the number of periods and special periods in a fiscal year and how
the system is to determine the assigned posting periods.
GGI and GG US & PIR UK Fiscal year will be in line with GGPL parent company fiscal year that is
April to March.
20.5 POSTING PERIOD VARIANT
Definition
Once a fiscal year is defined, it is possible to specify whether a period is allowed for posting or not.
In order to standardize maintenance of accounting period especially across the group, SAP R/ 3
system allows the specification of open or close status to be maintained via a posting period variant.
20.6 POSTING KEY
Definition
A posting key is a two-character numerical key that controls the entry of line items. It is defined at
client level and therefore applies to all company codes in SAP system. It is differentiated by the
account types. It also controls the posting at the line item level.
Standard SAP posting key will be used.
20.7 DOCUMENT TYPE
Definition
A document type is a key that is used to classify accounting documents and distinguish between
business transactions to be posted. The document type is entered in the document header and
applies to the whole document.
The SAP standard document types will be maintained. However, it is possible to add additional
document types to further differentiate specific posting for analysis purposes.
20.8 DOCUMENT NUMBER RANGES
Definition
A document number range is linked to the document type via a unique key. It identifies the document
number for each document type posted in the SAP.
The document number ranges are specific for each document type. The naming convention on the
document number ranges can be as follow:
XX YYYYYYYY
Where:
XX = refer to fiscal year
YYYYYYYY = document running number
The number ranges will be set for each company code based on the above coding structure.
20.9 RETAINED EARNINGS ACCOUNT
Definition
Before creating income statement accounts in the chart of accounts, it is required to specify the
retained earnings account to which profits or losses are carried forward. There is a special program
designed to carry forward these amounts to this account, which is part of procedures to open of a
new fiscal year in the system.
In SAP system, every income statement account is assigned to a retained earnings account via
income statement account type. Hence it is actually possible to have more than one retained
earnings account by creating more than one income statement account type.
However, most companies have only one retained earnings account. As such, only one income
statement account type is recommended for each Company Code.
20.10 EXCHANGE RATE TABLE
Definition
Depending on the relevancy, exchange rates must be defined in the system. The rate is required for
the following:
To translate foreign currency amounts when posting or clearing, or to check the manually
entered rate
To calculate gains or losses from exchange rate differences
To valuate open items in foreign currency and foreign currency balance sheet accounts
Frequency of maintaining the exchange rate is according to company specific requirements or at

different intervals according to exchange rate movements. As such, the Accounts Department will be
responsible to maintain the table as and when required.
Recommendation
Standard SAP exchange rate table will be used.
21 GENERAL LEDGER OVERVIEW US & UK
21.1 OVERVIEW
parameters required for the General Ledger module for GGPL.
However, General Ledger module is also heavily involved in other business process designs from
other modules and how they post into the General Ledger. These issues are covered in the relevant
sections in Asset Accounting, Account Receivable, Account Payable, Purchasing, Inventory
Management and Logistic Invoice Verification.
The central task of G/L accounting is to provide a comprehensive picture for external accounting and
accounts. Recording all business transactions in a software system that is fully integrated with all the
other operational areas of a company ensures that the accounting data is always complete and
accurate.
Key improvements to be realized from this implementation include:
Reduction in data redundancy: The shared master data concept in SAP will inevitably reduce
duplication of data stored and used in the business processing
Greatly reduced administration: through the elimination of re-keying, reconciliation and manual
collation of data. This gives the finance staff the time to analyze the figures rather than spending
the majority of their time performing administration tasks
Better control of data: through the validation of the data at point of entry.
Seamless Integration: a complete integrated system will provide better control and reduce data entry
and errors and also provides a complete audit trail for the organization
The processes and its integration can be summarized in a diagram as follows:-
Each account used for posting is defined in the general ledger and contains information that reflects
or describes its function. This information is stored in the master record of an account. It controls how
business transactions are entered and posted to the account as well as how posting data is
processed.
G/L account master data is divided into two areas:
Chart of accounts area:

This area contains information that applies to the complete master record (G/ L account number,
account name, P&L account, or balance sheet account). In addition, you use it to store data that
controls the creation of a master record in the company code (account group and screen layout).
Company code-specific area:

This area contains data that controls the entry of business transactions for the related account
and account management in the respective company code (currency; open item management).
21.3 LINE ITEM DISPLAY
A line item display provides an overview of the open, cleared, and parked items from an account.
You determine which information about the individual line items is to be displayed on the screen.
However, you can also change the view dynamically after the list of items has been processed.
Various sort options (by assignment, document number, or clearing data) allow you to interactively
select, vary, total and the required documents on the screen. Search and summarization functions are
available on the initial screen as well, so it is not necessary to display all items. Line item display
functions are available for:
An account in a company code
You can switch from the line item list to the document display at any time.
A line item list can also be exported and processed further using a spreadsheet. You can file it as a
PC file or you can store it directly in Microsoft Excel format and then process it in Excel.
21.4 ACCOUNT BALANCES
W henever documents are posted to an account, the system automatically updates the account
balance. For GL accounts with line item display, it also indicates which items from a document are
posted to the account. You can display the account balance and depending on the account
attributes the line items for each account.
21.5 GL ACCOUNT POSTING
Each transaction relevant to posting must be entered in the originating area of the company in
compliance with all applicable posting rules. The precise, reliable, and complete recording and
entering of all required data is only possible at the point of data origin. This data priority means that
both the originating and responsible areas of all company entities are monitored.
General ledger postings may be the result of:
Operational transactions (for example, issue of goods causes material issue posting) if the SAP
Materials Management (MM) system is active and integrated
Transactions originally assigned to the general ledger, if the General Ledger (FI-GL) system is
active
At the same time, interrelationships with Controlling and its components can be taken into account.
The extent and type of the integrated systems used determine how entries, account assignments, and
updates are processed for business transactions. The important factor is that the posting documents,
together with the original data and account assignments from the operative transactions, are
simultaneously reflected in the general ledger through subsidiary ledgers.
21.6 RECONCILIATION OF SUBSIDIARY LEDGER
The chart of accounts, with its primary asset and balance sheet accounts provides the central posting
link between the general ledger and the related subsidiary ledgers. The general principle of posting
via reconciliation accounts is that each business transaction is simultaneously reflected in the
subsidiary ledger as a line item and as a totals item in the general ledger via the assigned balance
sheet account. As a result, updating is timely and automatic. Moreover, it ensures that:
General ledger and subsidiary ledgers are always reconciled

Integrated report displays can be generated from the financial statement using the subsidiary
ledgers down to single document level
The effects of each posting procedure on assets and profit and loss are used immediately by the
financial information system
21.7 OPEN ITEMS
Open item management can be activated for each G/ L account. It allows you to clear debit and
credit postings by document (groups). Accounts with open item management can be updated when
business transactions are processed
22 GL MASTER DATA US & UK
Definition
General Ledger (G/ L) account master records contain the data that is always needed by the general
ledger to determine the account s function. The G/ L account master records control the posting of
accounting transactions to G/L accounts and the processing of the posting data.
General ledger accounting is divided into two portions in SAP. One is the creation of G/ L accounts
at the Chart of Accounts (COA) level and the other is the creation of the G/ L account in the
company code level.
Among the fields to be maintained during the creation of G/L account in the COA level are:
Account group
Whether the account is a balance sheet or profit & loss account
Among the fields to be maintained during the creation of G/ L account in the company code level
are:
Account currency
Line item display
Field status group
Sort key
To control and standardize the G/ L accounts, it is highly recommended that the creation of G/ L
accounts to be centralized. This recommendation entails the need to devise necessary approval and
communication mechanism to govern the process.
It is important that all requirements are carefully considered before deciding to create a new G/ L
account or suggesting an alternative G/L account. Among others, key issues to be looked into are:
business and accounting needs
integration to other modules e.g. automatic posting
impact on current financial or management reporting
similarity to other existing G/L account
23 GL BUSINESS PROCESS US & UK
Requirement is to create blue print document for GG-US and GGI & PIR UK. W here as per our
assumption below mentioned process will apply for GG-US & GGI & PIR UK. GGI is already using
the SAP 4.6 C version and as per the available document study, it is assumed that, they are already
using SAP standard functionality.
23.1 POST AND PARK DOCUMENTS

In a manual process, ledger books are maintained to store accounting entries. In contrast, SAP uses
document principle whereby accounting entries are kept in document database and can be referred
to via document number. On data integrity side, SAP allows only balanced transactions to be
posted. Additionally, changes are allowed for permitted fields such as text information.
It is possible to post G/L documents via:
G/L document posting
Recurring entry
Account assignment model
Reference document
In principle, this process is equivalent to manual bookkeeping entry. However SAP automates it with
additional functionality especially for integration of G/ L with other modules. Minimum data normally
required to post a G/L document are:
Document header information e.g. posting date, posting period, document date etc.
G/L account number
Cost object assignment (for profit and loss elements)
Amount
Since sometimes not all the required data are immediately available, SAP also provides an option to
temporarily keep the posting as statistical entry. Upon completion of all required data, the entries can
be posted. This functionality is termed as Parking Document.
It is recommended for GGPL to use the Park document functionality to ensure that the document
posting process will be monitored and postings are done after checking have been done.
Park and Post option is one of the best options, as this has the facility to store the document with
document details for any number of documents and also got flexibility to take reports on the parked
documents. Users need not waste efforts on re entering the document.
Inter unit transaction are simplified as business area clearing will be used for each inter unit transfers
Recurring Documents, Account Assignment Model, Reference posting documents are very help full
option in SAP, which will reduce time of processing and help in doing value addition.

Types are used.

No deficits

Not Applicable
23.2 MONTH END PROCESSING

Month-end closing comprises all activities involved in closing a posting period. Accounting period is
a division of a company s fiscal year. The number of periods and definition of period are to be
determined during configuration.
Each posting into the system must be associated with an accounting period. This is to ensure that
each transaction can be reported in the corresponding period. In the same token, periods must be
controlled to ensure validity of the reports.
and system is updated always. This helps in closing monthly, accounts on time with greater
accuracy. This also helps in giving the required reports on time and there are many standard reports
which will meet the requirement. Closing schedule preparations will become simpler and valuation
procedures will get standardized and there will be uniformity in procedure. Reporting data can be
drilled down up to the document level by just clicking the buttons. Reports can be directly down
loaded to system or can be converted to several formats provided by SAP.
Document control principle always ensures postings are matched and posted.
Data is available in system GL account wise with the complete audit trial.
It is possible to view Monthly Trial Balance, P&L and Balance Sheet reports for Plants also.

The SAP System offers a range of reports with which you can carry forward balances into the new
fiscal year. During this process the profit and loss accounts are carried forward to retained earnings
accounts. The balances on the balance sheet accounts are simply carried forward into the new fiscal
year. You do not have to create special opening financial statements.
Any postings you make in the old fiscal year automatically adjust the relevant carry-forward balance.
You do not have to close the old fiscal year and make the closing postings before opening the new
fiscal year.
and system is updated always. This helps in closing monthly, quarterly and Yearly accounts on time
with greater accuracy. This also helps in giving the required reports on time and there are many
standard reports which will meet the requirement. Closing schedule preparations will become simpler
and valuation procedures will get standardized and there will be uniformity in procedure. Reporting
data can be drilled down up to the document level by just clicking the buttons. Reports can be
directly down loaded to system or can be converted to several formats provided by SAP.
Balances are automatically carried to next year by just selecting the balance carry forward program.
Retained earnings are calculated automatically and transferred to next year as Balance sheet item.
Even after the balance carry forward program, entries can be posted to previous year, which will
automatically updates the opening balance.
Closing and opening period will be simpler and also special periods are provided to post audit
related entries that are part of adjustment entries pertaining to previous year.
It is possible to obtain yearly Trial Balance, P&L and Balance Sheet reports for Plants also.

No special configuration required. Normal SAP configuration with Number posting period variant &
Retained earnings account will be used.
No deficits
Not Applicable
24 ACCOUNTS PAYABLE US & UK
24.1 OVERVIEW
parameters required for the Accounts Payable module for GGPL.
SAP R/ 3 Accounts Payable Accounting maintains and manages accounting data for all vendors.
Moreover, it is an integral component of the purchasing system. Orders, deliveries and invoices are
maintained by vendor and aid in vendor assessment. SAP R/ 3 automatically makes postings based
on operational transactions.
The figure below illustrates the relationships between the accounts payables and the other parts of the
FI module and other SAP R/3 modules:
Accounts Payable Accounting is integrated with the general ledger in real time. All postings to
vendor accounts will also be updated to the general ledger at the same time. Depending on the
transaction, the system updates various general ledger accounts (such as payables and down
payments). Flexible account analysis features and due date forecasts provide you with an overview
of individual vendor accounts status
Accounts Payable Vendor Master Maintenance Vendor Master Record
Down Payment Processing Down payment
Non PO Invoice Processing AP Invoice Processing
Credit/Debit memo Processing AP Credit/Debit Memo Processing
Automatic Payment Processing Payment Processing
Manual Payment Processing Payment Processing
GR/IR Clearing Account Clearing
24.2 AP MASTER RECORD
The vendor master record contains all the information a company needs for its business relationships
with vendors. This data controls the posting transaction as well as the processing of posting data.
Both the accounting and purchasing departments use the master record for this purpose. Vendor
master records are centrally stored in the system. This ensures that data is always consistent, up-to-
date and without duplication
A special feature is available for SAP R/ 3 systems that have integrated purchasing and financial
accounting modules. W ith the Material Management invoice verification feature, you can enter
incoming invoices. This feature references order and delivery data.
Credit memos are automatically set off through the payment program as soon as they are posted to
the system. The payment program automatically offsets invoice-related credit memos against the
respective invoice.
24.4 PAYMENTS
Automatic payment transaction management clearly represents the greatest advantage to Sap s R/ 3
Accounts Payable Accounting system. The system also supports manual or ad-hoc payment
processing.
The payment program initially creates a payment proposal list. The list is based on data in the
documents, the vendor master record, special tables, and your selection criteria. The payment
proposal can be edited. Payments can also be triggered directly. W ith large payment runs, several
people in accounting can work on the payment proposal simultaneously.
The payment program creates payments using the corresponding posting documents based on the
(revised) proposal. Payables are cleared and linked to the payment. Forms are printed and the
system logs the payment run so that you can review and monitor transactions at any time.
The posting of accounting transactions (invoices, credit memos, payments to the vendor account) also
results in simultaneous changes to the associated general ledger account for accounts payable. This
general ledger account is labeled as a reconciliation account and entered in the vendor's master
record. For a number of particular accounting transactions, the system updates an alternative general
ledger account. This is the case for:
Down payments made
These special transactions are noted in the R/ 3 System using a special general ledger indicator. A
number of special general ledger transactions can be entered into the system.
25 VENDOR MASTER DATA US & UK
25.1 AP-MASTER RECORD NON PURCHASING
Definition:
transactions are recorded and processed by the system. Among the specifications you make in
master records are used:
account.
25.2 AP-MASTER RECORD PURCHASING
Definition:
transactions are recorded and processed by the system.
Specifications you make in master records are used:
account.
This section explains the concept of vendor master data and describes how to create, display,
change, block, and delete vendor master data related to Purchasing.
26 AP BUSINESS PROCESSES US & UK
Requirement is to create blue print document for GG-US and GGI. W here as per our assumption
below mentioned process will apply for GG-US & GGI. GGI is already using the SAP 4.6 C version
and as per the available document study, it is assumed that, they are already using SAP standard
functionality.
26.1 VENDOR INVOICE PROCESSING NON PURCHASING

Upon receiving invoice from the non-trade vendor (e.g. GSCB for the electricity charges), you can
park the bill before you post them. This is useful for example, if the data you want to enter is
incomplete, or the parking and posting functions are carried out by different accounting clerks (dual
control principle).
deduction for vendors is maintained in vendor master and there by ensuring taxes are recovered for
services and remitted to government on time.


No deficits

Not Applicable
26.2 VENDOR INVOICE PROCESSING PURCHASING / SERVICES

Upon delivery of goods or completion of services, vendors shall send invoices which normally
describe name of the goods or services, the quantity sent and the amount due. In the case of goods
received, there is a facility in SAP R/3 to perform 3 ways matching of Purchase Order, Goods
Receipt and Invoice. You can park the invoice before you post them. This is useful for example; if the
data you want to enter is incomplete, or the parking and posting functions are carried out by different
accounting clerks (dual control principle).Service related payments and Material procurement related
payments are routed through Materials Management Module. Finance will be doing the IV (Invoice
verification activity only).
deduction for vendors is maintained in vendor master and there by ensuring tax is recovered for
services while booking the bill or making the down payment. Same is remitted to government on
time.
Valuation of Raw material takes place on movement of material to production automatically and
accounting entries are posted automatically at various stages of completion. However this process
has to be discussed in details to get further benefits.


No deficits

Not Applicable
26.3 VENDOR CREDIT MEMO PROCESSING
In normal business transactions, there are instances whereby vendors will send credit memos in order
to reduce invoices. Such cases might arise due to incorrect invoiced amount or rejection of goods. A
credit memo is then required to substantiate the adjustment.
Being an adjustment entry, credit memo shall affect Financials module only unless the adjustment is
related to MM such as good return etc.
The processes are similar to invoice processing. Only the accounting treatment will be different
NA

No deficits

Not Applicable
26.4 VENDOR DOWN PAYMENT PROCESSING
N ormal payment to vendor is carried out against claim for goods delivered or services rendered i.e.
payables. However sometimes vendors might request payment before delivery of goods or services.
This type of payment is known as down payment and is shown on the asset side in the balance
sheet. In the normal business flow, down payment should be cleared with the closing invoice upon
delivery of goods or services.
SAP has Special transaction to post supplier advances.
All Down payments can be tracked and adjusted while making the bill payment. System keeps track
of the down payments and it is treated specially in GL so that it is easy to identify down payment
details.

No deficits

Not Applicable
26.5 MANUAL OUTGOING PAYMENT PROCESSING
In SAP, manual outgoing payment is generally performed for a small number of payments on ad-hoc
basis.
Payment made to vendors may not always be straight forward; therefore the system is configured to
handle various scenarios as follows:
Partial Payment, where the original open item and the partial payment remain as open
Contra of vendor and customer balance is handled automatically by the system. In order to
activate contra balance, vendor and customer have to be linked in the vendor and customer
master record.
Clearing of Open Item while making payment and tracking of cleared item separately
making vendor payment.

No deficits

Not Applicable
26.6 AUTOMATIC OUTGOING PAYMENT PROCESSING
W hen the volume of payments is large and the frequency depends more on the due dates, it is
recommended then to utilize SAP R/ 3 s automatic outgoing payment function. In this manner,
offsetting entries i.e. outgoing payments (bank) are automatically posted. Subsequently, open items
are automatically cleared.
making vendor payment. You can select multiple vendors together to make payment and cheque can
be printed for multiple vendors using automatic payment program.
This is one of the features which will reduce when multiple vendor payment has to be made.


No deficits

Not Applicable
Once all parked documents are completely posted and payments for the month are completed, the
posting period for vendors can be closed. This is to prevent the occurrence of back posting invoices
to the previous period after reports are generated.
Before posting period can be closed, other month end processing activities such as executing the
recurring program need to be performed if applicable.
Opening the new period and closing the previous period are two parts of the closing procedure.
Since sub ledger and GL are matched real time, period end closing will be faster and accurate.
Obtaining of reports like Vendor Ageing, Vendor Balances and Open items is possible at any point
of time for a transaction or list of transactions.
Report can be viewed for respective currencies in which transactions are updated.


No deficits

Not Applicable
vendor and vendor account balances to the new fiscal year. After running the carry forward
programs, when a transaction is posted to the previous year, the account balances in the current
year are immediately updated automatically. Balance carry forward program is done after entries
are completed


No deficits

Not Applicable
27 ACCOUNTS RECEIVABLE US & UK
27.1 OVERVIEW
This section outlines the master data structures, business processes required for the Accounts
Receivable module for GGPL.
Accounts receivable accounting in SAP R/ 3 maintains and manages a customer accounting data. It
is also an integral component of sales management. Sales and accounting have the same
information requirements. If the customer order results in delivery and subsequent invoicing, then these
transactions are posted automatically in the accounting system. The various stages of this process are
updated in real time the system.
The figure below illustrates the relationships between the accounts receivable and the other parts of
the FI module and SD module.
Accounts Receivable Customer Master Customer Master Data
Maintenance
Down Payment Down Payment Processing
Processing
N on Sales order AR Invoice Processing
Invoice Processing
Credit/ Debit memo AR Credit/Debit Memo Processing
Processing
27.2 AR MASTER RECORD
A customer master record contains all the information that a company needs for its business relations
with a customer. This data controls the posting procedure and subsequent processing, such as
payments and dunning. Customer master records also provide information on customers for the
accounting and sales departments. Customer data records are centrally stored in the system. This
means that the data record is always consistent, up-to-date, and free of redundancy
W ith the integrated use of SAP R/ 3 s sales and financial accounting systems, the billing system
prepares and posts outgoing invoices. There is an option to account for credit momos.
There are certain business transactions that should be posted to the customer but not updated in the
line item of receivables from goods and services in the general ledger. An example of this is down
payments. These are identified separately in the balance sheet. Using a special G/ L indicator, the
system is told that a posting should not be actualized in the reconciliation account from the customer
master record. Instead, it is done in a G/L account specially set up for that purpose
27.5 DOCUMENT AND ACCOUNT DISPLAY
W hen business transactions are posted to an account, the system automatically updates the account
balance. It also notes which items of a document have been posted to the account. Thus, the
account balance and line items for any account can be viewed. The account balance offers an
overview of the transaction figures per period, separated into debits and credits. Similarly, sales per
period and special G/ L transactions such as down payments for the fiscal year can be discerned at
a glance. From here, you can go directly to the display of items. A line item display provides an
overview of an account s open and cleared items. You can specify which information on individual
items appears on the screen. For example, one user could be interested in the terms of payment,
while another could be more interested in the dunning data for the line items.
28 AR MASTER RECORD US & UK
28.1 CUSTOMER MASTER RECORD
Definition:
All non trade customers are maintained by Finance Department without any involvement with Sales
Department. Therefore the customer master will not have information maintain in the sales area view
The structures of master records for purely finance use are:
General Data
This is data that is equally relevant to every company code and every sales
organization within a company. General data includes the address,
telecommunications data (telephone, telex, and fax), general information on the
customer (plant number, industry, group allocation) and bank details.
Data for Company Codes

This is data that reflects the company-specific agreements with the customer. Company
code data includes the terms of payment. In addition, the reconciliation account for
G/ L accounting is indicated at the company level. Transaction figures for this general
ledger account are automatically updated to the customer account upon posting.
N ote that if the customer is also a vendor, such as inter-company customer, the vendor number can
be recorded in the general part of the customer master as a means of reference.
29 AR BUSINESS PROCESS US & UK
Requirement is to create blue print document for GG-US and GGI & PIR UK. W here as per our
assumption below mentioned process will apply for GG-US & GGI & PIR UK. GGI is already using
the SAP 4.6 C version and as per the available document study, it is assumed that, they are already
using SAP standard functionality.
29.1 INVOICE PROCESSING

This scenario is when sales order is not necessary to be created for the purpose of invoicing a
customer. Hence, all these invoices will be created as AR invoice. Examples of AR invoices are:
Sales of assets, which have been fully depreciated.
Non-trade customer
All AR invoices created directly can be differentiated through the Document Type field. For example,
AR invoices are created with document type DR (Customer invoice), and the accounting entries are:
Dr. Customer
Cr. Revenue
SAP R/3 provides automatic error checking by barring user from posting a transaction in the event of
that the debits and credits are not equal. In addition, prior to actual posting, users are allowed to
simulate posting entries and check for possible posting errors. Users can also choose to park the
documents for verification before posting.
Invoice process for one-time customer will use one common master record and relevant customer
information such as name and addresses will be entered directly in the invoice. The accounting
entries generated are:
Dr. One-time customer
Cr. Revenue

No deficits
29.2 CREDIT MEMO PROCESSING

Credit memo will be created when a customer is over-billed. It adjusts previous entries that were
overstated. Therefore, posting a credit memo always leads to a credit posting on the customer
account. A credit memo will only be prepared if the corresponding invoice was created and sent
out to the customer. A credit memo will not be created if the invoice has not been sent to the
customer, as user is able to cancel the original invoice, reversing the relevant G/ L entries and create
a new invoice.
For credit memo with reference to AR invoice, the credit memo must be created with reference to the
original invoice in order to correctly reflect customer outstanding balance. This is done by updating
"Invoice Reference" field during the creation of the credit memo.
NA

No deficits
29.3 DOWNPAYMENT PROCESSING

All down payment received are to be reflected as a liability. The down payment is to be
subsequently cleared against the actual invoice when it is issued to the customers. All down
payments will reduce invoice amount accordingly.
NA

No deficits
29.4 INCOMING PAYMENT PROCESSING
The system is able to handle customer payments in different modes such as cheque, cash payment,
etc.
The incoming payment process can be done using a one step or two step methods:
Posting without Clearing - The receipts will be posted in using the normal document entry
functions i.e. there will be no selection of open items available. At frequent intervals, or adhoc
basis, the customer account will be cleared whereby the payments document will be matched
against the invoice document. A clearing document will be created with zero.
This method is only useful when at the point of entry, the user is uncertain for which open item
the customer is paying for. Otherwise, it is advisable that user adopt the second option.
Posting with Clearing - Open items are cleared at the point of posting incoming payments. This
results in the selected line items being cleared . All cleared items will not be available to
knock of other open items. In other word, the incoming payment document is the clearing
document of the customer invoice.
Payment received from customer may not always be straight forward; therefore the system is
configured to handle various scenarios as follow:
Partial Payment, - where the original open item and the partial payment remain as open
Contra of customer and vendor balance is handled automatically by the system. In order to activate
contra balance, customer and vendor have to be linked in the customer and vendor master record.


No deficits

Each SAP R/ 3 module has its own period-end and year-end closing procedures. Opening the new
period and closing the previous period are two parts of the closing procedure.
Open and closing FI period is usually given to the G/L users who will ensure that the previous period
for each account types (A assets, D customers, K vendors, S G/ L accounts) are closed first
before generating the financial statements for the previous period. For transactions entered in
Accounts Receivables, the system will check that the posting period entered for a customer
transaction is opened for posting as specified in the From period and To period fields for account
type D (such as debit a customer) and account type S (such as credit a revenue account). Otherwise,
the system will prompt an error message that the period is not opened for posting.
Since sub ledger and GL are matched real time, month end closing will be faster and accurate.


No deficits
Not Applicable

customer and vendor account balances to the new fiscal year. For customer account, the program
copies the year end balances to the beginning of the following year.
W hen running any carry forward programs, it is necessary to make sure that nobody is posting
entries to accounts. After running the carry forward programs, when a transaction is posted to the
previous year, the account balances in the current year are immediately updated automatically.


No deficits

Not Applicable
30 BANK ACCOUNTING US & UK
It includes the management of bank master data; cash balance management, and the creation and
processing of incoming and outgoing payments.
Bank Accounting is part of FI but master data related to bank are taken from Cash Management. The
Cash Management deals with Cash Position, Liquidity Forecast and Bank Reconciliation aspect.
Currently we are considering Bank Master Data and Bank Reconciliation for the scope,

Bank Accounting Bank Master Data Bank Master Data
Bank reconciliation Bank Reconciliation
30.1 BANK MASTER DATA
In the SAP system, bank master data is stored centrally in the bank directory. In addition to defining
bank master data, you also define your own bank details (house banks) and those for your business
partner (entered in the business partner's master record). The following are the components of bank
master data.
Bank Directories
The bank directory contains the bank master data. This includes the bank address data and control
data, such as the SW IFT Code and Bank Groups. Details for post office banks should be identified
specially.
The bank directory must contain the master data for all the banks that you require for payment
transactions with your business partners
Bank Details
To be able to run the payment program, the system requires details on your own bank, and these
details must be entered in the customer and vendor master records. In the company code-specific
data of a vendor master record, you could for example enter the house bank from which payment is
to be made to this vendor. If you do not enter a bank in the master record, you must specify the rules
by which the payment program determines the bank. The data that you enter is the same in both
cases - an ID code for your bank.
House Bank
A list of house bank represents the bank in which the company uses for its outgoing and incoming
payments. SAP will then refer to this list maintain in table BNKA for its automatic payment program as
well as to forecast bank balances with SAP treasury function.
These lists are maintained at the company code level and each house banks are given a user
defined bank ID that can be alphanumeric. For this implementation, bank list will be maintained in all
company codes, List of bank of various company codes has to be obtained and customized.
The house banks will be created for every main and branch bank. The naming conventions for the
bank ID are base on these logics:
Use the first letter of the bank name and the first letter for bank as acronyms which described
the house bank. The graph below illustrates acronyms for Citibank. The last two digit of the
house bank will use 00 to denote first bank listed in the system. Therefore for Citibank, it can
have up to 100 branches entered in the system using the CB convention. It is recommended
to use 00 to identify the main bank of the company.
Example: CB000 Citibank Main Branch

CB001 Citibank Bangalore
CB002 Citibank Mumbai
Bank accounts are maintained for every house banks using a unique bank ID. This bank ID is used to
enter specification for bank payment and general ledger master records.
Bank account such as current account and saving account are created for every house banks. It is
proposed to follow the following naming conventions of the account ID:
The letter CA is use for Current Account.

The letter SA is use for Saving Account
The last 3-digits will be running number
Bank Account ID
Each bank ID is unique within a company code. For each bank, enter the bank country, and either
the bank number or an appropriate country-specific key. The system uses this information to identify
the correct bank master data.
GL Account
A G/ L master record is created for each bank account. One bank account will have a
corresponding two bank clearing accounts, i.e. outgoing and incoming payment.
The benefit of having two bank clearing accounts is that it helps to simplify processing of electronic
bank statements
House Bank and Bank Account Creation

There are two key master data types in Cash Management, namely the house banks and the bank
accounts. The critical information required to set up these master data include bank name, bank key,
bank branch and bank address.
The use of the bank account G/L structure can be seen through the following example.
W hen the company executes the payment program and makes payments for open payables, the
following postings take place:
Dr Vendor AP account
Cr Outgoing clearing account (G/L Account XXXXXX02)
This amount will remain in the outgoing clearing account until it clears the bank. Once the outgoing
payments clear the bank, the following postings take place:
Dr Outgoing clearing account (G/L Account XXXXXX02)

Cr Main bank G/L account (G/L Account XXXXXX00
30.2 BANK DATA ACCOUNTING PROCESS

There is need for accounting of all bank related transactions like, vendor payment, customer receipt
and any other payments and receipts through bank. On regular basis bank account is reconciled
with bank statement and reconciliation differences are shown to match both the balances
SAP bank accounting application helps in posting transaction for funds transfer between the banks,
and for doing bank reconciliation
And also Bank Account will impact based on the Receipt from customer or payment to vendor.
Cheque Management Process

This function is used to enter checks you receive. After the input is complete, you can access the
additional functions to further process the entered checks (see Entering Incoming Checks).
Normal bank payment transactions are happening through Accounts Payable Model.
Manual Bank Reconciliation

There are basically two steps in this method:
First, in the transfer-posting screen under G/ L, the users retrieve the open items under incoming bank
clearing account and select them if they appear on the deposit column of the statement. The open
items can be sorted by date to ease matching. Upon completion, post them against the main bank
account. The system will generate the accounting entries like the followings:
Dr Main bank
Cr bank incoming clearing
Second, in the transfer-posting screen under G/ L, the users retrieve the open items under outgoing
bank clearing account and select them if they appear on the withdrawal column of the statement.
The open items can be sorted by date to ease matching. Upon completion, post them against the
main bank account. The system will generate the accounting entries like the following:
Dr bank outgoing clearing

Cr main bank
Reconciliation can be done as often as you get the bank statement and will ensure that data is
captured on time. This will also automatically match the bank statement and bank account
It is very obvious that the balance in the bank clearing account is the not reconciled.

No deficits

Not Applicable
30.3 PETTY CASH MANAGEMENT

There is a need to keep cash and make petty cash transaction at various locations to meet petty cash
activity.
Cash Journal
Cash Journal is a feature in SAP, which permits separate tracking of cash transactions. Each cash
journal should be assigned to one G/ L account, which represents the cash journal in the general
ledger. It is however possible, to connect multiple cash journals with one G/ L account. Cash
transactions are saved separately in the cash journal and are transferred periodically (for example,
daily) to the general ledger. The Cash Journal also permits generation of daily balance statements for
tallying physical cash with the books of account
A separate cash journal and GL account would be maintained for each location handling cash.
Separate cash journals and corresponding GL accounts would also be maintained
Cash Journal is very effective in SAP, which can track petty cash transaction for each of the locations
separately and also will be tracking balances on daily basis.

No deficits
Not Applicable
31 REPORTS US & UK
31.1 FINANCIAL ACCOUNTING REPORTS

Some of the Standard Report attached, however detailed reporting requirement needs to be discussed.
Sl No. Reports Frequency SAP Remarks
B/ S and P&L
1 Yes Balance Sheet and P&L report
Statement-report
Actual/Actual Compare current year actual and previous
2 Yes
Comparison -Quarterly year actual for the quarter
Actual/Actual
Compare current year actual and previous
3 Comparison Half Yes
year actual for the Half Year
Yearly
Actual/Actual Compare current year actual and previous
4 Yes
Comparison Yearly year actual for the Half Year
5 GL Account Balances Yes GL Balances report
6 GL Line Item Balance Yes GL-Line Item report
GL Business Area
7 Yes Business Area wise Balances report
Balance
Customer Balance in
8 Yes Customer Balances in Local Currency
Local currency
Customer Due Date
9 Yes Customer Due days open item report
Analysis for open item
10 Customer Line item Yes Customer Line Item report
11 Customer Open Item Yes Customer Open item
Due Date Analysis for

12 Yes Vendor Open Item due date analysis
Open Item
List of Vendor Line
13 Yes Vendor Line item list
Items
Vendor Balance in
14 Yes Vendor Balances in Local Currency
Local Currency
Vendor Payment history Vendor payment history with Open Item
15 Yes
with OI sorted out shown separately
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BUSINESS BLUEPRINT FOR SAP ECC 6.

GUJARAT GLASS (P) LTD.

Project Director: Parthasarthy De Document Version No: 3.0

KR Mahesh 27/10/2006 +91 9867743920

To Action* Due Date Phone/Fax

Ver. 1.0 14.09.06 KR Mahesh New Document Draft Version GGPL_BBP_FI_Ver1.0.doc

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The GGPL product profile covers

The production capacities at Kosamba Plant are

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The R/3 Modules, which are being implemented in Phase 1, are

1.2 ENTERPRISE RESOURCE PLANNING (ERP) PROJECT OBJECTIVES

Objectives for the implementation project are:

1.3 OVERVIEW OF BLUEPRINT PHASE

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2.1 FINANCIAL ACCOUNTING PURPOSE

Management and representation of all accounting data

Open and integrated data flow

Integration of Financial accounting with other components

All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR)

Integration within Financial Accounting

Phase I implementation in FI.

General Ledger (FI-GL)

Accounts Payable (FI-AP)

Accounts Receivable (FI-AR)

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Organizational Units with GGPL US & UK

GGPL CGCL PIR UK GG US GGI

RTH NTH HO FTR WTN MLD

27-Oct-06 Confidential - For Internal Use Only 3

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Company code application in GGPL

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Business Area application in GGPL

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3.1 CHART OF ACCOUNTS

3.2 ACCOUNT GROUP

Following is List of Account Group for GGPL Chart of Accounts.

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A particular field status group may be assigned to a particular G/L code.

Field Status Group Description

G011 Change in stock accounts

G013 Revenue accts (with profit centre)

G016 Amortization accounts

G019 Reconciliation accounts

3.4 FISCAL YEAR AND ACCOUNTING POSTING PERIOD

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Fiscal Year Variant Description

3.5 POSTING PERIOD VARIANT

Posting Period Variant Name Company code

3.6 POSTING KEY

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Posting Key Description Debit/Credit Account Type

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3.7 DOCUMENT TYPE

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