AL-ITTEFAQ STEEL HOLDING

SAP BPC
(Business Planning &
Consolidation)

Overall Project Scope

Quantitative Income Statement Per Ton
Income Statement of Detailed Revenue and Product Cost per ton of
operating companies at Stand Alone and Consolidated Level.
Product Profitability
Monthly Profit Center wise Contribution Margin with unique stock valuation
and data extraction for decision making and operational measurements.

Management Consolidation
Monthly Consolidated and Stand Alone Management Report at ISPC
operating entities with all performance ratios, direct cash flow movements.

Legal and Zakat Consolidation

Monthly and Annual Consolidation of all SAP and Non SAP Companies at
ISPC Level for Statutory Audit and special purpose Financial Statements for
Zakat.

Reports Covered in SAP BPC

Quantitative Analysis (Per Ton
Report)
Entity wise Stand Alone QR Report
Entity wise Contribution Margin
Report
Consolidated QR Report
Cost Analysis report
Performance Snap Shot Report
Legal and Zakat
Consolidation
Balance Sheet Consolidated
Balance Sheet Columnar Entities
with Elimination Column
Balance Sheet GL Group Split
Statement of Income
Consolidated
Statement of Income - Columnar
Entities with Elimination Column
Statement of Income GL Group
Split
Indirect Cash Flow Stand Alone
and Consolidated
Fixed Asset Schedule
Investment Reconciliation

Management Consolidation
Balance Sheet Consolidated
Balance Sheet Columnar Entities
with Elimination Column
Balance Sheet GL Group Split
Statement of Income
Consolidated
Statement of Income - Columnar
Entities with Elimination Column
Statement of Income GL Group
Split
Direct Cash Flow Stand Alone and
Consolidated
Ratio Analysis Summary and
Detailed
Product Profitability
Contribution Margin
Pricing Standard
Entity-Segment (Profit Centre) wise
performance
Closing Stock Valuation (Additional)
GL wise Detailed Report (Additional)
Production Quantity, Material wise and
Profit Centre wise (Additional)

Achievements from Project Platinum

Earlier Process

Implementation

Excel Based
Working
Material and GL
Wise Data
extraction
Process Gaps and
Reporting
Manual Data and
Reporting Process
Multiple Excel
Files
Manual Data
Sharing
Distributed and
Discrete Data
Time Gap in
Report and
System Entry

Process
Streamlining
Report
Developments
Report Validation
and Simulation
Data Extraction
Modeling
Data reporting
Modeling
Reporting
Structure
Refinements
Efficient Data
Extraction Design

After
Implementing
One
Data Source
BPC
Distributed
and

Controlled Access
Excel Interface for
Enhanced
Integrity
Process
Transformation
Process
Automation
Least Manual
Intervention
Timely Availability
of Reports
Reporting
Structure
Refinements
Streamlined Data
Extraction
Indirect Control
over System
Entries
User Friendly

Value Addition
One Data Source Distributed and Controlled Access
All management reports are on one Platform, adding value by time
saving for report retrieval.
Least Manual Intervention
All calculation logics, complex GL grouping, Material Grouping are
automated. The core value addition of the project, as once data is
updated in any GL or Material, all related reports will get updated
automatically.
Process Automation
Manual generation of Per Ton report is automated with complex data
extraction and calculation logic. This provides daily updated Per Ton
Report which add value in cost analysis and decision making. This will
automate all formulas for calculation, by saving time on checking
each report every time.
Process Transformation
Loophole in important report are removed and reporting process
streamlined for all Management Reports covered under Project. This
will eliminate all the data cleansing and manual processing.
Excel Interface for Enhanced Integrity
All Reports are excel based, user can save these reports as a normal Excel and also customize
existing report as per their requirement.

Value Addition Project Platinum

Timely Availability of Reports
All Per Ton Report, Consolidation Reports and Profitability reports are
automated and available on one platform with updated value. Adding
value in business analysis as on time availability of critical report.
Reporting Structure Refinements
Management reporting structure is refined with elimination all reporting
loopholes which were existing because of Manual Processing of Data. All
reports are now in one format, color and fonts as required by business.
Streamlined Data Extraction
Data Extraction for Per Ton report logic is refined with filling gaps in
current logic. Even for some of companies it is totally reinvented with
extreme efforts to add value to report with proper numbers in it.
Indirect Control over System Entries
Process automation calls for refined data entry structure as well, by
implementing system to it now there will be indirect control over the
wrong entry posing.
User Friendly Reports
All reports are in Excel, with value added drag and drop, user defined and in the format required
with color in every cell level values.

INTRODUCTION SAP FI/CO

Components of Financial Accounting
(FI); Lets an organization manage
external reporting
The
Financial
Accounting
(FI)
application component fulfills all the
international requirements that must be
met by the financial accounting
department of an organization.
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.
Preparation of operational information
to assist strategic decision-making
within the organization
Components
of
Management
Accounting (CO); Lets an organization
manage internal reporting
Controlling
provides
you
with
information for management decisionmaking. It facilitates coordination,
monitoring and optimization of all
processes in an organization.

MANAGEMENT ACCOUNTING
(CO)

FINANCIAL ACCOUNTING
(FI)

General
General Ledger
Ledger
Accounts
Accounts Receivable
Receivable

GENERAL
LEDGER
ACCOUNTS

Cost
Cost Element
Element
Accounting
Accounting
Cost
Cost Center
Center
Accounting
Accounting

Accounts
Accounts Payable
Payable

Internal
Internal Orders
Orders

Asset
Asset Management
Management

Product
Product Costing
Costing

Bank
Bank Accounts
Accounts

Profit
Profit Center
Center
Accounting
Accounting

GENERAL LEDGER (FI-GL)

The central task of General Ledger accounting is to provide
a comprehensive picture for external accounting and
accounts.
Recording all business transactions (primary postings as well
as settlements from internal accounting) that is fully
integrated with all the other operational areas of a company
ensures that the accounting data is always complete and
accurate.

Essentially, the general ledger serves as a

complete record of all business transactions.
Automatic and simultaneous posting of all subledger items in the appropriate general ledger
accounts (reconciliation accounts)
Simultaneous updating of general ledger and cost
accounting areas

ACCOUNTS RECEIVABLE (FI-AR)

Financial
Accounting

The Accounts Receivable application

component
records
and
administers
accounting data of all customers.
It is also an integral part of sales
management.
Postings in Accounts Receivable are also
recorded directly in the General Ledger.

Accounts
Receivable

Master
Data /
Credit
Management

Different G/L accounts are updated

depending on the transaction involved (for
example, receivables, down payments, and
bills of exchange).

Invoice
Processing

Receipt /
Payments

Account
Analysis &
Reconciliation

Periodic
Processing

Reporting

ACCOUNTS PAYABLE (FI-AP)

Vendor Invoice Process - Three-Stage Verification

Financial
Accounting

The Accounts Payable application

component records and
administers accounting data for
all vendors
It is also an integral part of the
purchasing system

Accounts
Payable

Master
Data

The system automatically makes

postings in response to the
operative transactions

Invoice
Processing
Sundry
Logistics

Payments /
Disbursements

Account
Analysis &
Reconciliation

Periodic
Processing

Reporting

BANK ACCOUNTING (FI-BA)

This component is used to handle accounting

transactions that business process with bank
It includes variety functions such as
Management of Bank Master Data
Check Processing
Bank statement Processing
Incoming and outgoing payments
Cash Journal Master Data
Cash Journal Posting & Reports

ASSET ACCOUNTING (FI-AA)

Asset Accounting component is used for
managing and supervising fixed assets
In Financial Accounting, it serves as a
subsidiary ledger to the General Ledger,
providing detailed information on
transactions involving fixed assets
With the integration feature in the SAP
System, Asset Accounting transfers data
directly to and from other SAP
components. For example,
it is possible to post from the MM
component directly to FI-AA.
When an asset is purchased or
produced in-house, we can directly
post the invoice receipt or goods
receipt, or the withdrawal from the
warehouse, to assets in the Asset
Accounting component.
From the Plant Maintenance (PM)
component, we can settle maintenance
activities that require capitalization to
assets.
At the same time, we can pass on
depreciation and interest directly to the
Financial Accounting (FI) and Controlling
(CO) components.

Balance
sheet
General
ledger
accounts

Buildings

Vehicles

Assets under
construction

Fixtures and
fittings

Asset
classes
Asset
master
records

COST ELEMENT ACCONTING (CO-CE)

Cost Element Accounting is the area of
cost accounting where we track and
structure the costs incurred during a
settlement period. its a detailed recording
of data that forms the basis for cost
accounting
Each business transaction that involves
costs updates the CO component with
detailed information on the cost element
and on the account assignment object.
The cost and revenue flows will update FI
and simultaneously create equivalent
postings into CO.
The relevant accounts in FI are managed in
CO as cost elements or revenue elements.

COST CENTER ACCONTING

Cost Center is an organizational unit within
a controlling area that represents a clearly
delimited location where costs occur
Cost Center Accounting lets business
analyze the overhead costs according to
where they were incurred within the
organization.

INTERNAL ORDERS (CO-IO)

Internal Orders
Overhead
orders

Investment
orders

Recoverable
Orders

Cost Accounting Functions

Internal orders describe individual jobs within a controlling area. Orders support action-oriented planning,
monitoring, and allocation of costs.
Internal orders may be used for a variety of purposes:
Monitor internal actions settled to cost centers
Monitor internal actions settled to fixed assets
Monitor internal actions settled to GL accounts

PROFIT CENTER ACCONTING (CO-PCA)

PCA enables:Structuring of the A

Group according to
Strategic Business Units
(SBUs), leading to: Full
Income Statements
according to lines of
business (Product
Groups rolled up to
SBU/Sectors)

PRODUCT COSTING (CO-PC)

BUDGET CONTROL SYSTEM (FM-BCS)

SCRAP
REPORTING REQUIREMENT

SCRAP FI Financial Accounting Modules

Accounts Payable

General
Ledger

GL

Accounts Receivable
Asset Management