ASIS FOR SAP FICO

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ASIS FOR SAP FICO

Text of ASIS FOR SAP FICO

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D1007TBP/FICO /1.0/06/09/2000

Financial Accounting & Controlling D1007 KBL e-MAD

Table of Contents

3Organization Structure

Company Code3Business Area3Chart of Accounts3Controlling Area4Operating Concern4Master Data5General Ledger5Customer5Vendor6Cost Centres7Cost Centre Standard Hierarchy7Cost Centre Group (Alternate Hierarchies)7Profit Centres8Profit Centre Standard Hierarchy8Profit Centre Groups (Alternate Hierarchies)9Cost Elements (Primary and Secondary)9Revenue and Cost Element Group9Activity Types11Statistical Key Figures (SKF)12General Ledger13G/L Posting Standard13G/L Posting Offsetting15G/L Planning ( Standard )17Manual Clearing (Standard)19Accounts Receivable20Customer Invoices (SD and SM Module Related)20Customer Invoices (FI Generated)22Customer Down Payment (Standard)24Manual Account Clearing (Customer)26Manual Incoming Payments28Manual Outgoing Payments30Posting of parked documents ( Standard )32Customer Down Payment Clearing34Customer Credit Memo (FI Generated)36Accounts Payable38Vendor Invoices38Vendor Credit Memo (Invoice related)40Vendor Down Payment (Standard)42Manual Clearing (Vendor)44Vendor Invoice ( Standard ) (Direct FI Invoices)46Vendor Credit Memo ( Standard ) (Direct FI related)48Manual Outgoing Payments50Posting of parked documents ( Standard )52Vendor Down Payment (Clearing)54Closing Operations55Foreign currency valuation (balances)55Foreign currency valuation Open items57Regrouping of Receivable and Payables59Business Area Adjustment60Customer / Vendor balance interest calculation61Maintain GR/IR clearing account63Periodic Reporting65Balance carried forward (FI)67Material Debit / Credit68Material Price Change69Withholding Tax70Periodic Processing72Dunning Notice (Customer)72Automatic Clearing74Dunning Notice (Vendor)75Profit and Cost Planning76Statistical Key Figures76Cost Centres76Activity Prices77Profit Centres77Profitability Segments77Actual Posting (Regular as well as Period-end)79Statistical Key Figures79Cost Centres79Internal Orders80Profit Centres80Service Orders80Sales orders which are cost objects (other than make to stock)81Profitability Segments81Management Reporting83Cost Centre Accounting83Internal Orders83Profit Centre Accounting83Sales Orders / Service Orders84Profitability Analysis84

Organization Structure

Company Code

Minimum one company code is required in SAP R/3 system. Audited Accounts for KBL e-MAD will be required to include the same in the accounts of Kirloskar Brothers Limited (KBL). KBL e-MAD shall present its financial statements as per the requirements of Schedule VI to the Companies Act, 1956 so that consolidation process with KBL accounts will be smooth.

CodeName

KB10Kirloskar Bros Ltd. E-MAD

Business Area

As explained by KBL, the company is required to disclose its segments as based on product groups (8 Segments) and geographic locations i.e. about 30 segments (India and all other countries). R/3 will provide segmental data based on product groups (defined as business areas), while geographic location wise information will be available through Profit Center Accounting. Additional balance sheet related data such as fixed assets, bank balances etc. need to be compiled by the accounts department. CodeName

BA01Industrial Pumps Group

BA02Project and Engineered Pumps Group

BA03Valves Group

BA04Machine Tools Group

BA05Agricultural and Domestic Pumps Group

BA06Printing Press Group

BA07Anti-Corrosion Products Group

BA08Other Products

BA09Common Services

Chart of Accounts

One company code can use only one Chart of Accounts and hence only one will be defined.

CodeName

KBCAKirloskar Bros Chart of Accounts

Controlling Area

At least one controlling area is required to activate the CO Module and one company code can be assigned to only one controlling area. CodeName

KB10Kirloskar Bros Ltd. E-MAD

Operating Concern

At least one operating concern is required to be defined to activate Profitability Analysis. A decision in taken by the project management to activate Profiatbility Analysis module at a later date. Therefore it will not be activated but the TOBE document contains the procedure for future. The operating concern when activated will be Costing Based .CodeName

KB10Kirloskar Bros Ltd. E-MAD

Master Data

General Ledger

The G/L master will be of 6 digits as in the legacy system. It will help in maintaining the user comfort. These G/L accounts will be logically grouped into account groups within chart of account (KBCA). The account groups and number ranges for the G/L masters are as follows:

Type of GLAccount GroupNumber Range

LiabilitiesLIAB100000 to 199999

AssetsASST200000 to 299999

IncomeINCO300000 to 399999

ExpensesEXPS400000 to 499999

Creation of new G/L account and changes thereto in Chart of Account will be controlled centrally by Corporate Finance and Accounts Department, Pune. Display authority should be available to all the users.

The entire general ledger accounts except for control (Reconciliation) accounts will be subject to line item management. Most of the balance sheet accounts will be subject to open item management. EEFC accounts are to be maintained in foreign currency.

Customer

Customer master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, whether registered dealer or unregistered, in case of registered dealer his registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act, type of customer, whether he is a vendor also.

Customers should be bifurcated into various types such as: Dealers, Direct Customers, Industrial Sector, Government / Semi Government Undertakings, Original Equipment Manufacturers, Turnkey Project Customers, Associate Concerns, Overseas Clients, One Time (Stray) Customer.

The range of accounts numbers will be of 6 digits which is allocated as under:

Customer Group CodeCustomer Group NameNumber RangeReconciliation Account

KBEXExports KBL151000 to 170000240200

KBINInland KBL100000 to 150000240100

KBOTOne-time cust.- KBL171000 to 171100240100

Every customer will have unique account number for E-MAD operations.

Whenever new customer master is to be opened the requiring department will forward a requisition in specific format to concerned department. On the basis of such requisition, new customer master will be opened. In case of change it will be informed to the concerned department to effect the changes in master record.

Vendor

Vendor master should contain data regarding his complete name, complete postal address, telephone number, fax number, E-mail address, name of contact person, registration numbers under local sales tax, central sales tax, works contract tax, income tax, excise act. It should also be mentioned whether he is small-scale industrialist, type of vendor, whether he is a customer also.

Vendors should be bifurcated into various types such as: Employee, Factories and offices of KBL, Ancillary Units, Small Scale Industries, and Overseas Suppliers, Contractors, Associate Concerns and others.

The range of accounts numbers will be of 6 digits which is allocated as under:

Factories and offices of KBL

200001 to 200200-KBFA

Ancillary Units

200201 to 210000-KBAU

Small Scale Industries

210001 to 220000-KBSS

Overseas Suppliers

220001 to 225000-KBOS

Contractors

225001 to 230000-KBCT

Associate Concerns

230001 to 231000-KBAC

Others

231101 to 240000-KBOT

Capital Goods

231001 to 231100-KBCG

Employees

000001 to 200000 - KBEM

(Employees ticket number will be his account number in AP Ledger)

Following will be the respective Reconciliation Accounts in General Ledger for above range of accounts:

140300 Depot Ledger Controlling Account for range of accounts with numbers 200001 to 200200.

140400 Advance Ledger Controlling Account for range of accounts with numbers 1000 to 200000

140500 Accounts Payable Controlling Account for all the remaining accounts.

Every vendor will have unique account number for E-MAD operations.

Whenever new vendor is to be opened, the requiring department will forward a requisition in specific format to concerned department. On the basis of said request, new account will be opened.

In case of change it will be informed to the concerned department to effect the changes in master record.

Cost Centres

Cost centres will be defined to reflect location and product group. The cost centre numbers will be numeric of five digits. The numbering logic will be as follows:

First two numbers

Location (e.g. Pune, Mumbai)

Last three numbers

Product group (e.g. DB, KPD, and Mini)

For each location, common cost centres will also be created to collect costs, which are not directly allocable. One additional common cost centre will also be created at locations with service centres for service management.

Combination of product groups will form a product division (e.g. industrial pumps, valves). Product division will not form part of cost centre numbering logic but will be reflected through sub-groupings (nodes) in cost centre standard and alternate hierarchies.

Cost Centre Standard Hierarchy

Standard hierarchy will be maintained location wise, product division wise. The node names will be KBC00 + location code + P