bp- fi bearings

8/8/2019 Bp- Fi Bearings

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Project: REVOLVEDocument: Business BlueprintDocumentModule: FIVersion: 0

Contents: Page

1.Introduction................................................................................2

2. Organisation Structure................................................................3

3. Masters.......................................................................................................5

3.1.1 Accounts Receivable.....................................................................5

3.1.2 House Bank.....................................................................7

3.1.3 General Ledger..............................................................................8

3.1.4 Accounts Payable........................................................................... 9

4. Business Processes................................................................................. 10

4.1.1 Accounts Payable........................................................................11

4.1.2 General Ledger............................................................................. 58

4.1.3 Accounts Receivable................................................................... 71

4.1.4 Cash & Bank..................................................................................76

5. TDS Cycle.................................................................................................. 73

6. Payment Procedure.................................................................................83

7. Interface................................................................................................. 102

8. Asset........................................................................................................105

- Valuation area .............................................................................................................................. ..4

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Relevant transactions.....................................................................8

Levels Attributes............................................................................9Transaction Codes..........................................................................9

Authorizations................................................................................9

Officer...........................................................................................91.1.1 Relevant Transactions ....................................................................................................................................13

Relevant transactions .............................................................................................................................................14

Authorization .......................................................................................................................................... ...... ...... ...16

OTHERSPECIAL ISSUES....................................................................................18

Annexure 7

Data Migration Strategies and Plan

DATA MIGRATION

Master DataValidated information be mapped into SAP Master Tables.

BalancesCut out date for Balances be maintained and moved in SAP Tables.

Annexure 8

Interface



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NON Officer related payments / Officers (If Required) payment will be done

through SAP by Interface.

Here Data from Avalon/ Oracle will be populated into two tables used by

Interface .

These Data in turn will be converted into a document with all the requisite

Bank codes, GLs and Cost Centers for Posting into SAP.

Bank Code be given for Wages posting to Banks.

Cost Centers Be Identified for Cost posting in respective Cost Centers.

GL codes be identified for FI posting .

Once the Document Nos. are generated through ABAP Program with Bank

Codes, GL. Cost Center , the Entries are passed into SAP.

At End, Payments will be done for Wages Using Transaction code F110.

Annexure - 9MM-FI Integration



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When you enter a goods movement, you do not have to enter G/L accounts since R/3automatically determines the correct accounts. R/3 does this by using account

information that you set up in advance in an area of Customizing known as "accountdetermination".

- Valuation Grouping Code 0001-

Valuation grouping code determines the GL Accounts to which aGoods Movement is posted

(Automatic Account Determination).

- Valuation area

Organizational level at which the material is valuated. A valuationarea can be

- at Plant Level ( Val Area 055, 056 , 057 , 058)

- At Company Code level (All Plants belonging to a Company Code)

The valuation class has the following functions:

Allows the stock values of materials of the same Material Type to beposted to different GL Accounts.

Allows the stock values of materials of different Material Type to beposted to the same G/L account.

Determines the G/L accounts updated for a valuation-relevanttransaction (eg. Goods Movement).

SD-FI Integration

Tax on sales/purchases code

The tax code represents a tax category which must be taken into consideration whenmaking a tax return to the tax authorities.

Tax Codes are unique per country. The Tax Rate calculation rules and further featuresare stored in a table for each tax code.

You must define new tax codes if tax rates are changed by the state. The old codeswith the old tax rates must remain in the system until no more open items which usethis tax code exist.



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CO-FI Integration

Expense Amount Flows to Cost Center in Controlling Module through Primary CostElement.

ASSET ACCOUNTING



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The Asset Accounting (FI-AA) component is used for managing and supervising fixedassets with the SAP R/3 System. In SAP R/3 Financial Accounting, it serves as a

subsidiary ledger to the FI General Ledger, providing detailed information ontransactions involving fixed assets.

The Asset acquiring program for TATA STEEL BEARINGS DIVISION will behandled in SAP is as follows:

INVESTMENT PROGRAM

The Investment Management (IM) component provides functions to support the planning,investment, and financing processes for:

Capital investments, such as the acquisition of fixed assets as the result of-house production or purchase

Projects that fall primarily under overhead, such as continuing education ofemployees or establishing new markets

Maintenance programs

An investment program represents the planned or budgeted costs for the capital

investments (or other projects) of an enterprise or corporate group in the form of ahierarchical structure.

Structure & Budgeting for Direct Acquisition of Asset InvestmentProgram Creation

The system displays the program structure in maintenance transactions in theform of a horizontal tree diagram. It is possible to assign investment measures andappropriation requests to the investment program positions.

The system uniquely identifies each program position based on its:

Investment program name and approval year

Position ID that has a maximum of 24 characters

The most important task of an investment program is to manage planned costsand approved budget values for a given time period.



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Prerequisites include defining planning profiles and budget profiles in Customizing.Assigning a planning profile and a budget profile to each program type, which allows

to control planning and budgeting differently for each program type.

One has to have created a program definition and program positions, and also haveassigned measures and appropriation requests to the program positions.

This process includes creation of capital schemes with the various elements i.e. theinvestment programs and investment program positions, internal orders in SAP.It also includes budgeting for the schemes at the investment program position leveland phasing the scheme by year based on approved budget estimates.

This process relates to asset acquisitions, which are capitalized in the same year.

In SAP the investment program is being handled with the following T_Codes:

Internal Order Creation

When Investment program and the Investment Program position are in existence, anInternal Order is created to monitor the capital expenditure of a time-restricted joband assigned to AUC.

In SAP creation of Internal order is being handled by Transaction code KO01 which

gives the option to Create Internal Order with the links to the lowest level of theInvestment Program Position.

Settlement for Direct acquisition

This process describes the capitalization of directly acquired assets via the capitalschemes.

The process of settlement can be explained with the help of following diagram.

MM Integration SAP



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Relevant transactions

Transaction Description

KO88 Settle Internal Order to Assets,individual processing

KO8G Collective Processing

Budget Distribution and Carry Forward

Budget distributionThis procedure is being used to distribute the sanctioned budget from the node in theinvestment program to the Internal Order. Perform this procedure before thebeginning of the procurement cycle. Prerequisites include,

Budget exists at the node of the Investment Program.

Internal Order assigned to the relevant node of the Investment ProgramPosition.


IM32Edit Budget, (Create budgets with ayear-wise phasing).

IM38 Return Budget.

IM52Distribute budget from InvestmentProgram Position to the Internal Order.

Carry Forward

If the Investment Program does not complete during the fiscal year then it isnecessary to carry forward the budget to the next year. In SAP this is done bytransaction code CJCO.

Integration and related scenarios:



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IM-FA; Creation of Investment Program and Investment Program Positions CO-OM-OPA; Creation of Internal Orders and Budgeting. IM-FA, settlement of capital schemes CO-OM-OPA, settlement of investment orders. FI-GL, GL posting.

AuthorizationsLevels Attributes Transaction

CodesAuthorizations Officer

Creation / Change oftop most node ofInvestment Programand yearly Budget

IM01, IM11,

IM32

Distribution / Transfer of BudgetbetweenSub-nodes

IM52, IM32,

IM38

AUC Settlement KO88, KO8G

ASSET CREATION

You can differentiate between different types of assets in the FI-AA component. Thestructure of the master record is identical for all asset main numbers, asset sub-numbers and group assets. Therefore, the basic procedure for creating any of these

objects is essentially the same.Check whether you are creating an entirely new asset, or if you are adding to analready existing asset:



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o For a completely new asset, first determine the correct asset class. Enter

the asset class and the company code in the initial screen of the master

data transaction (Asset Create Asset) or directly through T_CodeAS01. Another option is to use an existing asset as a reference whencreating the new asset.

o If you are adding to an already existing asset, you must first identify theasset main number of the existing asset. Create a new asset sub-number for this asset (AssetCreateSub-numberAsset) or directlythrough T_Code AS11. The system uses the main asset number todetermine the asset class for the new asset.

If you are using external number assignment, enter the new asset main number (orsub-number). If you are using internal number assignment, the system automatically

assigns the number.

This process illustrates the various steps involved in creating an asset master record.

The asset master record contains all information relating to an asset that remainsunchanged over a long period of time:

Technical master data

Organizational allocations (usually time-dependent) Depreciation terms

The system stores all the values and transaction data per each asset master record.

Maintain the relevant master record information on the tabs as needed:

General data (description, capitalization date, inventory date)

Time-dependent assignments (for example, cost center)

Allocations (evaluation groups, investment support measures)

Information on the origin of the asset

Specifications for net worth tax



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Insurance data

Leasing information (especially the relevant data for the openingentry and, if necessary, determination of present value)

Maintain depreciation and valuation information for each depreciation area (orcheck the default values):

Depreciation key

Useful life in years/periods

Start date for depreciation calculation

Index series (for the calculation of replacement value)

Sub level of Asset

This procedure is basically used to capitalize the forex fluctuation related to forexloans as per Indian Accounting Standard 11. It is advisable to perform this procedureat the year end when the fluctuation related to the forex loans is identified to theAsset, as it is a prerequisite.

In SAP this is being handled by transaction code AS11.

Authorisation

This function does notallow creating multipleassets thatautomatically have thesame long text.

Levels Attributes

Transactions Group Head,Deputy GroupHead

Officer

Create Asset AS01

Display Asset AS03

Change asset AS02

ASSET UNDER CONSTRUCTION DISTRIBUTION & SETTLEMENT

Rule for Capitalization



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Use this procedure to create the distribution rule to capitalize the asset build-up oncapital scheme to the respective assets. Perform this procedure when the asset is

ready for capitalization. Prerequisites include: Creation of AUC.

Creation of Assets to which the AUC must be settled,

Amount capitalized to the Asset.

Relevant TransactionTransaction DescriptionAIAB AUC Distribution Rule

Details:

Required Fields: Company CodeAsset No.Sub asset no.

This will show Settlement AUC: Line item list

Select that AUC line items that you want to settle to asset and execute postsettlement.

The asset value date is the value date for Asset Accounting, hence it becomerequired field.

Authorizations

Levels Attributes Transactions Group Head,Deputy GroupHead andofficer

Supervisor

AUC DistributionRule

AIAB

Capitalize the AUC to Gross Block Asset

At the point of commissioning of Capital schemes that span across years the amountto be capitalized is settled to the asset/assets being commissioned. Use thisprocedure to capitalize the assets from the schemes. Perform this procedure when



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the scheme build up is to be capitalized. Prerequisites include AUC created andcapitalized with values.

1.1.1 Relevant Transactions


AIBU Settle AUC to Assets.

Details:

Required Fields: Company CodeAsset No.Sub asset no.

Select and click Enter Rule to Maintain Settlement Rule for AUC to Asset.

The account assignment category specifies the object type for the settlementreceiver. For example of account assignment category is FXA ( Fixed Asset ). Thesettlement receivers are the Asset no to which this has to settle.

Authorizations

Levels Attributes Transactions Group Head,Deputy GroupHead andofficer

Supervisor

Asset Capitalisation AIBU

SCRAPPING AND TRANSFER OF ASSET

Discarding or Retiring of Asset after Verification



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This process is triggered by the physical verification, which results in the discrepancyin the asset records. This triggers the asset retirement and after verification in

BEARINGS DIVISION will be handled in SAP as follows:

SAP


Procedure:

1. Choose Posting Retirement Scrapping.

2. Enter the asset.

Check the date specifications, and make any necessary entries on theTransaction data tab page. If you do not enter an asset value date, thesystem automatically determines this date when you save.


Inputs

Comp CodeAsset No

Period

Doc Type

Prior/ Current year

Scrapping Assets

(Based on inputs from userdeptOffline)

FIdocument

(Loss on scrapping)

Asset Module posted


ABAVN Asset scrapping.


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3. Enter additional posting information (such as document type) on theAdditional

details tab page.

If you do not enter a transaction type, the system automaticallydetermines one when you save.

4. To post a partial retirement, enter a posting amount, a percentage or aquantity on the Partial transfer tab page. Specify whether the retirementapplies to prior-year acquisitions or to current-year acquisitions.

If you do not make any entries on this tab page, the system carriesout a complete transfer.

5. Enter a text for the posting document on the Note tab page.

6. Save.

The system posts the retirement.

Using this transaction, it is not possible to:

Manually enter different amounts for different depreciationareas

Have the system propose depreciation areas for certaintransaction types

If you need to use one of these functions, then use transaction ABAV.

Authorizations

Levels Attributes Transactions Group Head,Deputy Group

Head andofficer

Sup

ervisor

Asset Scrapping ABAVN X



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Asset Reposting due to verificationThis process illustrates event in which the Asset Reposting transaction is

triggered. It also details the procedure of Asset Reposting in the FI-AA sub-module.Purpose of this procedure is to repost the asset from one asset class to another.

Perform this procedure when assets have been wrongly classified. Prerequisitesinclude, asset to be transferred have been identified.

The process can be illustrated as bellow:

INPUTS SAP

ISSUES

Physical flow of documents authorising reposting from all across toJamshedpur for effecting the reposting of Assets

Centralised / Decentralised Control

Authorization



ABUMN Transfer within company code, reposting.

Comp CodeExisting Asset No

Document Date

Posting DateAsset Value Date

New Asset No

New Asset Class

New Asset Creationwith New Value

TRANSFER OFASSET

AT NET

VALUE


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Levels Attributes Transactions Group Head,Deputy GroupHead and officer

Supervisor

ASSET REPOSTING ABUMN

Transfer within Company Code - Change of Cost Center, Depreciation Keyetc

This process illustrates the events that trigger a change to the asset master fields;location, cost center and profit center and describe how the change is to be carriedout in SAP. The process can be explained with the help of following

SAPRef: KDS


Physical

verification results

in transfer ofassets

Master Data: Group Asset

Cost Center

Asset Super

Number Internal Order

Profit Center

Change Asset Master-Location Code

-Cost Center

-Profit CenterIn the case of change to a large number

of assets

(Mass change)Create a work listCreate the substitution rule

Release work list

Asset Changed

Company Code

Chart of

DepreciationPlant

Location Code

Asset Class

DepreciationKey


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Authorisation

Levels Attributes Transactions Group Head,Deputy GroupHead

Supervisor

and officer

DisplayAsset

AS03

Create Wordlist AR01

Release Edit/wordlist AR31

Mass change rule OA02

Other special Issues

Application of Govt. grant for capital contribution and/or posting of subsidyto an asset



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This process describes the process of accounting for Govt. Grants towards theconstruction / acquisition of assets. The process can be illustrated with the help of

the following:

Authorizations

Levels Attributes Transactions Group Head,Deputy GroupHead and officer

Supervisor

GL posting FB50

Asset Acquisition ABZE

Year-end closing



FB50 General Ledger entry.

ABZE

Asset acquistion ( account for the grant against

AUC ).


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This document describes the year-end close procedures in the FI-AA module.Theprocess can be illustrated with the help of the following


Authorities

Levels Attributes Transactions GroupHead,

Deputy GroupHead

AssetClosing

AJRW


Year-end closed

No further Depreciation

To be done before GL closing


AJRW ASSET FISCAL YEAR CHANGE


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CIN in SAP

In fact this sub module is country specific and takes care of the Excise and Sales /VAT related laws. The schema of entries and documentation would only be writtenafter doing testing during the realization phase.

Version: 0 P 21 f 21 26 D b 2010

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