Mandhana SD BBP-mumbai2

8/11/2019 Mandhana SD BBP-mumbai2

1/75

Mandhana Industries Ltd.

Business Blue Print document

ForSALES AND DISTRIBUTION

Author Ms. Niti Jh

Reviewer Mr. Sudee! Mundd

Approver Mr. Sudeep MundadaRelease Date "#$Oct$%%


2/75

Table of Contents

AN INTRODUCTION TO MANDHANA INDUSTRIES LIMITED

A. ORGANIZATIONAL UNITS....................................................................................................5

1. SALES& DISTRIBUTION....................................................................................................5

1.1. SALESAREA..........................................................................................................20

1.2. SALESORGANIZATION:.............................................................................................221.3. SALESOFFICE.......................................................................................................23

1.4. SALESGROUP........................................................................................................24

1.5. DISTRIBUTIONCHANNELS.........................................................................................25

1.6. DIVISIONS.............................................................................................................26

1.7. PLANTS................................................................................................................ 26

2. INVENTORYMANAGEMENT..................................................................................................27

2.1 STORAGELOCATION..................................................................................................27

2.2 SHIPPINGPOINTS......................................................................................................28

B. MASTER DATA..................................................................................................................... 29

GENERALMASTERRECORD.................................................................................................29

1.1 CUSTOMERMASTERRECORDS........................................................................................29

1.2 CUSTOMERACCOUNTASSIGNMENTGROUP.......................................................................32

2. SALES& DISTRIBUTION.....................................................................................................34

2.1 PRICECONDITIONS......................................................................................................34

2.2 PRICINGPROCEDURES..................................................................................................35

C.BUSINESS PROCESSES......................................................................................................40

1. SALESANDDISTRIBUTION...............................................................................................40

1.1CUSTOMERINQUIRYPROCESSING.....................................................................................40

1.2 CUSTOMERQUOTATIONPROCESSING................................................................................41

1.3. SALESORDERPROCESSING.........................................................................................42

1.4 CREDITCONTROL.....................................................................................................481.5. SHIPPING.................................................................................................................49

1.6. BILLING.................................................................................................................. 55

1.7. BILLINGCANCELLATION............................................................................................. 60

1.8. EXCISE...................................................................................................................61

1.9. PROCESSOVERVIEWTABLEFORSALES& DISTRIBUTIONS..................................................62

REPORTING.......................................................................................................................66


3/75

Business Blueprint DocumentSales & Distribution (umbai!

Sales & Distribution TeamOrganization

Hierarchy Designation Acceptance/SignatureMrs. VarshaRaghuraman

V.P. (Garment Export

Dn.)

P. Tyagi

Mr. Jagdish

Pamwani,

NovelERPTeam

Niti Jha SD Consultant

Sudeep M.

SD Lead & Project

Coordinator

Doc :

Ver : 1.0

Copyright NovelERP Solutions Pvt.

Ltd

All Rights Reserved

Softcopy: SD MIL BBP

Ver : 1.0

Page 3 of

75


4/75


Mandhana Industries Ltd.

ShAPe IT ProjectIntroduction

Mandhana is a multi-divisional Textile Company spread over multiple geographical

locations. MIL engages in Manufacturing of textiles and garments with state-of-the-art

infrastructure. The scope of Mandhanas business includes designing, yarn dyeing,

weaving, processing, printing and garment manufacturing. Planned infrastructural

developments have helped MIL integrate vertically and establish a niche player in the

Indian Textile. The SAP R/3 SD & AFS module will encompass all the activities in

Sales & Distribution and the integration activities with Production, Quality, Financeand Purchase.

Document Change Control :

Rele

aseDescription

Create

d byDate

Reviewed

byDate

Sec

tio

n

Description

1.0Sales &

DistributionNiti Jha

13th

Oct, 11

Sudeep

Mundada

14th

Oct, 11

2.0Sales &


8th Nov,

11

Sudeep

Mundada

8th

Nov, 112.1

Concept Of Z

Screen is added.

2.0Sales &


9th Nov,

11

Sudeep

Mundada

10th

Nov, 11

C-

1.8

Process Overview

Table & Reports

are added.

3.0Sales &


17th

Dev, 11

Sudeep

Mundada

17th

Dec, 11

B-

2.2

Overhead

condition type

removed from

Pricing Procedure

3.0Sales &

Distribution

Niti Jha17th

Dev, 11

Sudeep

Mundada

17th

Dec, 11

A-

1.4

Merchandisers

name removed

from Sales Group.

Replaced by Group

A, B etc.

4.0 Sales &

Distribution

Niti Jha 27th

Jan, 12

Sudeep

Mundada

27th

Jan, 12

Added Stock Sale

(Fresh & Surplus)

in Sales doc. Type

Chart.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 4 of

75


5/75


5.0 Sales &

Distribution

Niti Jha 23rd

Feb, 12

Sudeep

Mundada

23rd

Feb, 12

Added Deemed

Exp dist.channel

& order type,

pricing. Changed

Nomenclature.

New account

group added.

A. Organizational Units

1.Sales & Distribution.

Sales Organization:

Sales Organization stands for a selling unit in the legal sense, being responsible

for product liability and other claims made by customers. Each sale business

transaction is processed within one sale organization, which has to be entered

by the user when starting the transaction.

AS IS:

A) Existing Sales Organization structure For Garments (Export) division

Sales

Organizati

on

Description

MPO Mandhana Industries Ltd. (Export Division)

Existing Sales Organization structure For Garments (Domestic) division

SalesOrganization

Description

MDD Mandhana Domestic Division

TO BE

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 5 of

75


6/75


Proposed Sales Organization structure For Garments (Export &Domestic)

division

Sales Organization Description

1000Mandhana Garments (Export & Domestic

Division)

AS IS:

B) Existing Sales Organization structure For Fabrics (Export/Domestic)

division


MIL Mandhana Industries Ltd.

TO BE

Proposed Sales Organization structure For Fabrics (Export/Domestic)

division


2000 Mandhana Textile

TO BE

C)In addition we are proposing Sales Organization structure for Retail

Segment also.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 6 of

75


7/75


Proposed Sales Organization structure For Retail division

Sales Organization Description3000 Mandhana Retail

Distribution Channel:

The distribution channel represents the channel through which salable

materials or services reach customers. Within a sales organization a customer

can be supplied through several distribution channels. In addition, the

material master data relevant for sales, such as prices, minimum order

quantity, minimum quantity to be delivered and delivering plant, can differ for

each sales organization and distribution channel.

AS IS

A) Existing Distributional Channel Structure for Garments (Export)

division

Sr. No. Distribution Channel

1. Export Sale

2. Stock Transfer

Existing Distributional Channel Structure for Garments (Domestic)

division


1. Domestic Sale

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 7 of

75


8/75


TO BE

Proposed Distributional Channel Structure For Garments (Export &

Domestic) division


1. Domestic Sale (10)

2. Export sale (20)

3. Stock Transfer (30)

4. Domestic Agent (40)

5. Export Agent (50)

6. Stitching (60)

7. Deemed export (80)

AS IS

B) Existing Distributional Channel Structure For Fabrics

(Export/Domestic) division


1. Domestic Sale

2. Export Sale

TO BE

Proposed Structure for Fabric (Export & Domestic) division

Sr. No. Distribution Channel1. Domestic Direct Sale (10)

2. Export Direct Sale (20)



Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 8 of

75


9/75



6. Processing (70)


TO BE

C)In addition we are proposing Distribution Channel for Retail

Segment also.Proposed structure For Retail division


1. Domestic Sale (10)

2. Export sale (20)





Division

The division is used to group materials, products and services of a

company from sales point of view.

AS IS

A) Existing Division Structure for Garments (Export) division

Sr. No. Division

1. Direct Sale

2. Agent Sale

3. Stock Transfer

4. Sampling

5. Stock Sale (Garment and Fabric)

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 9 of

75


10/75


Existing Division Structure for Garments (Domestic) division

Sr. No. Division

1. Direct Sale

2. Agent Sale

3. Sampling

TO BE

Proposed Division Structure for Garments (Export & Domestic)

division

Sr. No. Division

1. 10 - Garment

2. 20 - Accessories

3. 30 - Fabric

4. 40 - Common

AS IS

B) Existing Division Structure for Fabrics (Export/Domestic) division

.

Sr. No. Division

1. Direct Sale

2. Agent Sale

TO BE

Proposed Division Structure for Fabric (Export & Domestic) division

Sr. No. Division

1. 50 - Yarn

2. 30 - Fabric

3. 40 - Common

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 10 of

75


11/75


TO BE

C)In addition we are proposing Division for Retail Segment also.

Proposed Division structure For Retail division

Sr. No. Division

1. 10 - Garment

2. 20 - Accessories

3. 40 - Common

Sales office

Sales office is used to reflect geographical aspects of a company. For each

sale transaction entered in the system it is responsible to capture the

responsible sales office. The sales office information can be used to carry

out reporting for the different branches and representative offices of a

company.

AS IS

A) Existing Sales office Structure for Garments (Export) division

Sr. No. Sales Office

1. Parel, Mumbai

2. Peenya, Bangalore

Existing Sales office Structure for Garments (Domestic) division


Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 11 of

75


12/75


1. Parel, Mumbai

TO BE

Proposed Sales office Structure for Garments (Export & Domestic)

division. Any other changes for the same will be taken in the

realization phase.


1. Mumbai 1001

2. Chennai 1002

3. Delhi 1003

4. Bangalore 1004

AS IS

B) Existing Sales office Structure For Fabrics (Export/Domestic)

division


1. Parel, Mumbai

To BE

Proposed Sales office Structure For Fabric (Export & Domestic)

division


1. Mumbai 1001

2. Chennai 1002

3. Delhi 1003

4. Bangalore 1004

5. Tarapur 1005

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 12 of

75


13/75


Sales Group

The staff of a sales office may be subdivided into sales groups.

AS IS

A) Existing Structure for Garments (Export) division

Sr. No. Sales Group

1. Export Sales

Existing Structure for Garments (Domestic) division

Sr. No. Sales Group

1. Domestic Sales

Existing Structure for Fabrics (Export/Domestic) division

Sr. No. Sales Group

1. Domestic Sales2. Export Sales

TO BE

Proposed structure for Sales group for Garment (Domestic/Export)

Fabric (Export & Domestic)

We will create Sales Group based on individual senior Merchandisers

belonging to each group as specified below.

Sales Group for Garment-Exports

Sr. No. Sales Group

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 13 of

75


14/75


1. Group A 100

2. Group B 101

3. Group C 102

4. Group D - 103

5. Group E - 104

6. Group F 105

7. Group G 106

8. Group H 107

9. Group I 108

10. Group J 109

11.Group K - 110

Any other changes for the same will be taken into in the realization

phase.

Proposed structure for Sales group for Fabric (Export & Domestic) is

to be done also Person wise (like garments).

Plant:

In sales, plant refers to a physical organization unit from where goods

are/from delivered.

AS IS

A)Existing Plant Structure for Garments (Export) division

Sr. No. Plant Location

1. Mandhana Dyeing Tarapur2. Mandhana Dyeing Unit II Tarapur

3. Mandhana Weaving House Tarapur

4. Mandhana Weaving House (Shirting Division)Tarapur

5.Mandhana Industries Ltd. (Bangalore

Division)Bangalore

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 14 of

75


15/75


6. Mandhana Industries Ltd. (Garment Division) Bangalore

7. Sampling Mumbai

Existing Plant Structure for Garments (Domestic) division


1. Mandhana Dyeing Tarapur

2. Mandhana Dyeing Unit II Tarapur



5. Mandhana Industries Ltd. (BangaloreDivision)

Bangalore


7. Sampling Mumbai

B) Existing Plant Structure for Fabrics (Export/Domestic) division


1. Mandhana Dyeing Tarapur

2. Mandhana Dyeing Unit II Tarapur



5.Mandhana Industries Ltd. (Bangalore

Division)Bangalore


7. Sampling Mumbai

TO BE

A & B) Proposed Plant Structure for Garments (Export & Domestic)

division, Fabric (Export & Domestic) division.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 15 of

75


16/75


In addition to above we are also proposing plant structure for Retail

segment also. We are proposing each Retail storage location as

separate Plant.

Sr.

No.Plant Location

1. Mandhana Head Office-HO (1001)

Lower

Parel,

Mumbai

2. Mandhana Sampling Sewri (1002) Mumbai

3. Mandhana Dyeing-MTD (2003) Tarapur

4. Mandhana Dyeing Unit II-CDR (2004) Tarapur

5. Mandhana Weaving House-MWH (2001)Tarapur

6.Mandhana Weaving House (Shirting Division) -

MWS (2002)

Tarapur

7. Mandhana Garment Division-MGT (2005) Tarapur

8.Mandhana Industries Ltd. (Garment Division)-

MIB1 (3001)Bangalore







12.Mandhana Industries Ltd. (Garment Warehouse

Division)-MIBW (3005)Bangalore


MBR1 (4001)Baramati


MBR2 (4002)Baramati

15.Mandhana Industries Ltd. (Retail Division)-MRV

(5001)Mumbai

16. Mandhana Industries Ltd. (Retail Store 1) -(5002) Mumbai

17. Mandhana Industries Ltd. (Retail Store 2)-(5003) Mumbai



Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 16 of

75


17/75


Sales Persons

We can maintain personnel master records for sales representatives in

your company. In the personnel master record, we assign the salesperson

to the sales office and the sales group. Sales People from Marketing can

be created and selected at the time of Sales Order creation

Storage Locations

An organizational unit allowing differentiation between the various stocks

of a material in a plant, in SD module we are concerned with finished

goods storage locations at which the material is store. A plant may

contain one or more storage locations. Several storage locations can beassigned to one plant. Multiple storage location will be created plant wise

for finished product and depending on the plant and product the storage

location will be determined if it is stored in unique storage location.

AS IS

Structure for Garments (Export) division

Structure for Garments (Domestic) division

Sr. No. Store Location

1. Sewree Warehouse, Mumbai

2. Peenya central warehouse, Bangalore

Structure for Fabrics (Export/Domestic) division


1. Sewree, Mumbai

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 17 of

75


1. Sewree warehouse, Mumbai



18/75


2. Dyeing Unit I, Tarapur

3. Dyeing Unit II, Tarapur

4. Weaving Unit, Tarapur

5. Shirting Unit, Tarapur

TO BE

Please refer Storage Location Structure from MM BBP document.

Shipping Points

An organizational unit in Logistics is that performs shipping processing.

The physical location (for example, a warehouse or collection of loading

ramps) from which you ship the items. The shipping point is the part ofthe company responsible for the type of shipping, the necessary shipping

materials and the means of transport.

AS IS

A) Existing Shipping Structure for Garments (Export) division

Sr. No. Shipping Point



Existing Shipping Structure for Garments (Domestic) division




B) Existing Shipping Structure for Fabrics (Export/Domestic)

division


Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 18 of

75


19/75


20/75


MBR2 (4002)

14.Mandhana Industries Ltd. (Retail Division) )-MRV

(5001)Mumbai

15. Mandhana Industries Ltd. (Retail Store 1) -(5002) Mumbai




Current SD Organization Structure

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 20 of

75


21/75


Proposed SD Organization Structure for MIL:

1.1. Sales Area

Sales area determines which distribution channel can be used to sell the products

from one division in a sales organization. Each sales transaction will have to be

created in one of the sales area. This will ensure segregation of local and export &

stock transfer sales.

a)TO/BE:

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 21 of

75

"ompan# "o$e %000

TARAPUR

A'DA'A)AR*'+ % 000

D,S+R,B-+,'"A''*/S

)AR*'+

A""*SSSR,*S

MUMBAIDEL&I'&ENNAI

BAN(ALORE

SA/*S,"*S

ABR," "'

D*S+," % 0

*1R+ % 20

S+"3 +RA'S*R %0

D*S+,"A)*'+ % 40

*1R+A)*'+ % 50

S+,+",')% 0

A'DA'A+*1+,/* % 2000

A'DA'AR*+A,/ % 000

SA/*SR)A',6A+,'

7AR' ABR," )AR*'+ A""*SSSR,*S

'OMMON

D,8,S,'S

MUMBAIDEL&I'&ENNAIBAN(ALORE

'OMMON

D*S+," % 0

*1R+ % 20

S+"3 +RA'S*R %0

D*S+,"A)*'+ % 40

*1R+A)*'+ % 50

rocessin% :0

D*S+," % 0

*1R+ % 20

S+"3 +RA'S*R %0

D*S+,"A)*'+ % 40

*1R+ A)*'+ % 50

D***D*1R+ % ;0

D***D*1R+ % ;0


22/75


MIL will have below sales areas in the system:

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 22 of

75


23/75


Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 23 of

75

Sr. No. Sales Organization Distribution Channel Division

1 Mandhana Garment-1000 10 Domestic 10 Garment

2 Mandhana Garment-1000 10 Domestic 20-Accessories

3 Mandhana Garment-1000 10 Domestic 30- Fabric

4 Mandhana Garment-1000 10 Domestic 40 -Common

5 Mandhana Garment-1000 20 Export 10 - Garment

6 Mandhana Garment-1000 20 Export 20-Accessories

7 Mandhana Garment-1000 20 Export 30 - Fabric

8 Mandhana Garment-1000 20 Export 40 - Common

9 Mandhana Garment-1000 30Stock Transfer 10 - Garment

10 Mandhana Garment-1000 30Stock Transfer 20- Accessories

11 Mandhana Garment-1000 30Stock Transfer 30 - Fabric

12 Mandhana Garment-1000 30Stock Transfer 40 - Common

13 Mandhana Garment-1000 40Domestic Agent 10 - Garment

14 Mandhana Garment-1000 40Domestic Agent 20- Accessories

15 Mandhana Garment-1000 40Domestic Agent 30 - Fabric

16 Mandhana Garment-1000 40Domestic Agent 40 - Common

17 Mandhana Garment-1000 50Export Agent 10 - Garment

18 Mandhana Garment-1000 50Export Agent 20- Accessories

19 Mandhana Garment-1000 50Export Agent 30 - Fabric

20 Mandhana Garment-1000 50Export Agent 40 - Common

21 Mandhana Garment-1000 60Stitching 10-Garment

22 Mandhana Garment-1000 60Stitching 20- Accessories

23 Mandhana Garment-1000 60Stitching 30 - Fabric

24 Mandhana Garment-1000 60Stitching 40 - Common

25 Mandhana Garment-1000 80Deemed Export 10-Garment

26 Mandhana Garment-1000 80 Deemed Export 20- Accessories

27 Mandhana Garment-1000 80 Deemed Export 30 - Fabric

28 Mandhana Garment-1000 80 Deemed Export 40 - Common29 Mandhana Textile-2000 10 Domestic 50 - Yarn

30 Mandhana Textile-2000 10 Domestic 30 - Fabric

31 Mandhana Textile-2000 10 Domestic 40 - Common

32 Mandhana Textile-2000 20 Export 50 - Yarn

33 Mandhana Textile -2000 20 Export 30 - Fabric

34 Mandhana Textile -2000 20 Export 40 - Common

35 Mandhana Textile -2000 30Stock Transfer 50 - Yarn

36 Mandhana Textile -2000 30Stock Transfer 30 - Fabric


24/75


1.2. Sales Organization:

a)Requirements/Expectations

Company Code-1000 requires three sales organizations.

b)General explanations

The sales organization is an organizational unit within logistics, which

structures the company according to its sales requirements.

A sales organization is responsible for the sale and distribution of goods and

services.

Sales organization is a entity being responsible for product liability and other

resources claims made by the customers. It could be regional sub-division of

the market also.

c)Existing Configuration

Three sales organizations MPO, MDD, and MIL for company code MIL.

d)System configuration for MIL

New sales organizations 1000, 2000 & 3000 to be created and assigned to

company code 1000.

1.3. Sales Office

a) Requirements/Expectations

1000-Company Code requires multiple Sales Offices for all sales areas.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 24 of

75


25/75


26/75


1.4. Sales Group

a)Requirements/Expectations

Company code-1000 requires Merchandisers belonging to specific groups as

sales group for sales transactions.


A group of sales people who are responsible for processing sales of

certain products or services.


Sales Organization Sales Office Sales Group

MPO Mumbai Export Sale

MPO Bangalore Export Sale

MDD Mumbai Domestic Sale

MIL Mumbai Export Sale

MIL Mumbai Domestic Sale


Sales Group are created based on individual Senior Merchandisers and are

assigned to sales office.

1.5.Distribution Channels

a)Requirements/Expectations.

Company Code-1000 has requirement of five common distribution channels

Domestic, Export, Stock Transfer, Domestic Agent, Deemed Export & Export

Agent for Garment, Textile & Retail segment.Garment segment has

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 26 of

75


27/75


Stitching-60 and Textile segment has Processing-70 as an additional

distributional channel respectively.


Distribution channel is used to define how different products reach to

consumers.


Currently MIL has three distribution Channels viz.

Domestic

Export

Stock Transfer


Distribution Channels (Domestic-10, Export-20,Stock Transfer- 30,Domestic

Agent-40,Export Agent-50, Deemed Export- 80) to be used and assigned to

all three Sales Organizations- 1000,2000 & 3000. Distribution Channel

Stiching-60 has to be assigned to Sales Organization- 1000.

Distribution Channel Processing-70 to be assigned to Sales Organization-

2000.

1.6. Divisions

Requirements/Expectations.

Company Code-1000 has requirement of 4 Divisions for Garment segment, 3

Divisions for Textile segment & 3 Divisions for Retail segment.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 27 of

75


28/75


General explanations.

The division is one of the organizational units in Sales & Distribution and is

required for business area account assignment for logistics transactions in

Financial Accounting.

Existing Configuration

Currently MIL has four Divisions as mentioned below.

Direct Sale

Agent sale

Sampling

Stock Transfer

System configuration for MIL

We are completely redefining the Divisions structure. New Divisions like 10

-Garments, 20 -Accessories, 50 -Yarn, 30 - Fabric, 40 - Common has been

created and to be assigned to Sales Organization 1000, 2000 & 3000.

1.7. Plants


Company Code-1000 has requirement of nineteen plants.

General explanations.

To monitor the stock of material it is necessary to be able to store in

the system the locations at which materials are kept. You can do this using

the terms plant and storage location. A plant can either be a place of

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 28 of

75


29/75


30/75


31/75


2.2 Shipping Points


Company Code-1000 has requirement of eighteen shipping points.

b)General explanations.

The shipping point is the top level in the organization for shipping. It may be

a logical or physical element in the organization.


There are 6 existing Shipping Points at Sewree, Peenya & Tarapur.


One shipping point has to created and assigned to each plant.

There are 18 shipping points.

B. Master Data

General Master Record

1.1 Customer Master Records

a) Requirements/Expectations:

The SAP system will store master data for customer which will be used for

reporting and sales cycle processing.

b)General Explanations

A business partner can be a natural or legal person who is directly involved in

a business transaction with MIL.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 31 of

75


32/75


The following partner functions are defined in the SAP system.

Sold-to party

Ship-to party

Payer

Bill-to party

Forwarders

Agents

In most of the cases, the sold to party (company which places an order for

the delivery of goods), at the same time acts as ship-to party (receives

goods), payer (pays or settles the invoice) and bill-to party (receives invoice).

In this case the customer fulfills all the above listed first four predefined

partner functions.

It is also quite common, however, that subsidiaries place orders, and the

head office settles the respective invoices. In this case the partner functions

are divided among different companies.

If a customer fulfills all functions at the same time, only one master record

is necessary, in which all data required for these functions is entered. In this

case a master record for the sold-to party is created. If the functions are

divided among different companies, a corresponding number of master

records are needed. In one master record you enter, for example, the address

of the sold-to party for correspondence, in another master record the

address of the ship-to party for the delivery. Only in the customer master

record of the sold-to party is a link between the individual partners

established and entering the customer number of the respective partners

does this.

Account Group:

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 32 of

75


33/75


The account group ensures that for the different partner functions of a

customer only the necessary screens and fields are displayed for input. The

screens and fields accessed can be limited in the customer master record so

that only the necessary data is entered. This is another function of the

account group. The function of a customer is defined by assigning an

account group.

The account group determines whether internal or external number

assignment is allowed for a customer master record.

Number Range

A unique external name is assigned to every customer master record. This

external name can be used to access the master record again later, or to

refer to the customer when carrying out business transactions.

Every customer is assigned to an account group.

A customer's name is unique for all-sales areas and company codes when a

customer master record has been created for a customer in a sales area.

c) Existing configuration

Following important account groups are present in SAP.

0001 Sold-to party

0002 Goods recipient

0003 Payer

0004 Bill-to party

0006 Competitors

0007 Sales partners

CPDA One-time cust. (ext.no.assgnmt)

d) System configuration for MIL:

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 33 of

75


34/75


35/75


01 Domestic Revenue

02 Foreign Revenues

And following key combination to be used to assign G/L accounts

1 Cust.Grp/MaterialGrp/AcctKey

2 Cust.Grp/Account Key

3 Material Grp/Acct Key

4 General

5 Acct Key


Following customer account group should be made available in MIL

01 Domestic Revenues

02 Foreign Revenues

System to use Chart of Account 1000

1.3 Material Master Records

a)Requirements/Expectations.

The SAP system will store master data for customer which will be used for

reporting and sales cycle processing.

General explanations

The material master record contains all information about the materials a

company procures, manufactures, stores and ships. The data stored in the

material master is not only used by Warehouse Management (WM), but also

by other application components, such as Inventory Management (IM),

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 35 of

75


36/75


Production Planning (PP), Quality Management (QM) and Shipping (SD-

SHP).

The integration of all information about a material into a single record

eliminates redundancy and makes it possible to store material data for allrelevant system components in a single database.

Existing Configuration.

Currently material masters are maintained in Legacy systems

System configuration for MIL:

Refer details given in MM BBP doc.

1.4 Material Account Assignment Group


System should automatically determine revenue account during billing.

General explanations

Group of materials with the same accounting requirements.

Used by the system when creating an accounting document from a billing

document to determine the revenue or sales deduction account.

Existing Configuration

01 Trading

02 Services

03 Scrap

04 Semi Finished05 Raw Materials

d) System configuration for MIL

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 36 of

75


37/75


Following material account assignment group to be made available in MIL

Finished goods.

Semi-finished goods.

Raw Material.

Scraps.

2. Sales & Distribution

2.1 Price Conditions.


System should automatically pick price for conditions for which condition records

are maintained & should allow to enter value manually in documents for

conditions which are manually entered.

b) General Explanations:

The system uses a pricing procedure relevant for a Sales Area. The procedure has

the elements of pricing stored in it and each of them is known as a condition

type.

At the time of creating a sales order or an invoice, the pricing procedure will take

effect. The system will pick up these values automatically and calculate the final

price based on the condition

Pricing elements are generally only valid for a certain period. A price agreement

can be limited to a period by specifying a validity period. Pricing elements are

managed according to three criteria

c) Existing Configuration.

Not Applicable

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 37 of

75


38/75



Following key combination is used to maintain condition record in basic

price.

Plant/ Sales Org/Dist Ch/Customer/Material.

Customer/Material with release status

Material with release status.

2.2 Pricing Procedures.

Provision For Z-Screen:

Novel will provide a Z-Screen to enter the entities required to derive the basic

price for fabric.

For Garment: Z screen For Basic price will include

1)Fabric cost, Fabric Weight,Consumption,UOM

2)Trim Fabric cost3)Trims cost

4)Garment washing charges

5)Embroidery/Print cost if any

6)Packing Cost

7)Labour Cost

8)Shrinkage cost

For Processed Fabric: Z screen For Basic price will include

1)Yarn Cost

2)Warping+ Weaving Cost

3)Sizing Cost

4)Labour Cost

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 38 of

75


39/75


5)Shrinkage cost

Above entries has to be entered manually in Z- Screen. This will generate a

reference number. The same reference number will be used by user in future toenter manually pricing details to derive a new reference number for new order.

Based on above details we have derived on the below pricing structure:

Prices have to be entered manually in the system by the user.


A) Basic Pricing structure For Garment Export& Garment Deemed

Export

Condition Condition

Type

A Basic Price Value

B Freight Value

C Insurance Value/Qty/%

D Total of A+B+C

E Discount (on net) Value/Qty/%

F Grand Total (D+E )

Apart from above defined condition types if there are any other extra

costs then that will be added in the basic price itself or if it has to done

through subsequent invoice then that will be captured by Finance.

B) Basic Pricing structure For Garment Domestic

Condition ConditionType

A Basic Price Value

B Discount Value/Qty/%

C Freight Value

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 39 of

75


40/75


D Octroi Value/Qty/%

E Total of A+B+C+D

F Excise Duty (10.3% on

net)

%

G VAT( 5%) on net Value %

H CST (2%) %

I Grand Total

(E+F+G+H)

Apart from above defined condition types if there are any other extra

costs then that will be added in the basic price itself or if it has to done

through subsequent invoice then that will be captured by Finance.

C) Basic Pricing structure For Fabric Domestic

Condition Condition

Type

A Basic Price Value


C Freight Value

D Packing+Handling Value

E Postal Charge Value

F Insurance Value/Qty/%

G Octroi Value/Qty/%

H Loading+Unloading Value

I Stamp Duty Value

E Total of

A+B+C+D+E+F+G+H+I

F Indirect Tax on Total

Value

%

G Vat Charges on net

value of Fabric

%

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 40 of

75


41/75


H CST Charges on net

value of Fabric

%

I Grand Total (E +

F+G+H)

D) Basic Pricing structure For Fabric Export & Fabric Deemed Export

Condition Condition

Type

A Basic Price Value


C Freight Value

D Packing+Forwarding+Clearin

g Charges

Value

E Postal Charge Value

F Insurance Value/Qty/%

G Octroi Value/Qty/%

H Loading+Unloading Value

I Stamp Duty Value

E Total of

A+B+C+D+E+F+G+H+I

E) Basic Pricing structure For Scrap Sales/ Asset sales

Condition Condition

Type

A Basic Price Value


C Freight Value

D Packing+Forwarding+Clearing

Charges

Value

E Octroi Value/Qty/%

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 41 of

75


42/75


F Loading+Unloading Value

E Total of A+B+C+D+E+F

F Vat Charges on net value of

Fabric

%

G Grand Total (E + F)


Pricing procedure are used in sales document to calculate final value , each

pricing procedure contains various condition types which controls how

pricing is done at each stage & final value is calculated.

c) Existing Configuration.

Currently system is using different pricing procedures for different sales

process.


Following are the new pricing procedures to be created for MIL defined above

.

1) Domestic sales (Fabric)- ZA0DOF

2) Domestic sales (Garment)- ZA0DGM

3) Exports sales (Fabric) & Deemed Export(Fabric) - ZA0EOF

4) Exports sales (Garment) & Deemed Export ( Garment)- ZA0EOG

5) Stock Transfer Garments ZA0STO

6) Scrap Sales Garments-ZA0SCR

7) Sample Sales Domestic-ZASAMP

8) Export Sample Sales- ZAESAM

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 42 of

75


43/75


9) JOB work sales_Garment-ZA0JOB

Assumption

1)Sample Sales will be created in the system only for Salesman Samples.

2)Free Samples sales of any kind willnot be created in the system for

Garments but for Fabric they can create wherein the invoice will be of

Zero value and no accounting effects.

3) For JOB Work process (Stitching / Processing) only one condition type

Basic price (processing charges / Stitching charges) is applicable in pricing

procedure.

C.Business Processes

1. Sales and Distribution

1.1Customer Inquiry Processing a) Requirements/Expectations

A customer inquiry comprises one or more items that contain the quantity

of a material that the customer asked for. The total quantity of an inquiry

item can be subdivided between the schedule lines in different amounts

and relevant delivery dates.

Explanation of Existing Functions and Events: For Garment (Exports

& Domestic) Division & For Fabric (Domestic/Exports) Division.

Inquiry generating leading to receipt of customer orders involved the

following steps

o Company representatives visiting customers or customer visiting /

contacting company through telephone, fax, email and internet,

taking part in exhibitions.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 43 of

75


44/75


o Customer contacting through other buyers.

o Inquiries through traders, brokers and agents.

o Inquiries from existing customers for repeat purchases (orders).

o Finished Material stock position, pending order position and

production plans are taken into before sending offers to customer.

o Only for Garment Export: Export inquiries are received directly from

customers or through major international brokers / commission

agents.

b) General Explanations

The Inquiry represents a general sales query for a new product. A customer

or prospective customer intents to buy certain product or services. System

can list enquiries based on customers, materials, distribution channels,

divisions and dates


CurrentlyMIL is not creating inquiry. No inquiry will be maintained at any

plant level.


MIL doesnt want the inquiries to be created in SAP too. NovelERP will create

the configuration though to create inquiries if MIL wants them to create in

future.

1.2 Customer Quotation Processing


A quotation presents the customer with a legally binding offer for

delivering a product.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 44 of

75


45/75


46/75


The next document in the process, which is the Sales Order, can be created

with reference to the quotation i.e. by automatic copying the details of the

quotation document.

The system will use internal numbering. It can track quotations based on

enquiries, materials, divisions, customers, and dates.


Currently MIL is creating Quotations for only those customer request that are

converted into orders.


MIL wants creation of Quotations for confirmed orders only in SAP too.

1.3. Sales Order Processing


Existing Sales order Process

Inquiries, Quotations will be taken care by merchandising department and

orders received for execution will be authorized by HOD before releasing to

exports logistics department.

After finalization of quotation and approval of garment sample buyer gives

Purchase Order. Purchase order mainly contains style number, quantity, rate,

delivery terms and payment terms. It may consist of more than one style

numbers and their relevant information. After receiving Purchase Order frombuyer, size wise ratio is given to the CAD department for fabric consumption

to book the fabric. Against this purchase order received from buyer, first Pro-

Forma Invoice is prepared and then Production Order (Lot Number) is made by

the merchandising department. Mostly one production order is made for one

style number. Production order contains the collective information of

quotation, details of trims and fabric. Against production order Purchase

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 46 of

75


47/75


Requisition is released for Trims and Fabric separately which is then passed

to the Trims and Fabric Procurement Departments. For local trims and

imported trims purchase requisitions are released separately.

One copy of purchase order received from buyer is sent to the account

department along with Pro-forma invoice for opening LC for FOB or CIF as per

negotiated in quotation.

The Trims and Fabric Procurement department procures Trim material and

Fabric as per purchase requisition received from merchandising department

for the production order, from the vendors by releasing Trim Purchase Order

and Fabric Purchase Order respectively. GRN is taken in respective store for

received goods and then the goods are issued to factory at Mumbai or

Bangalore or to Job worker in Mumbai or Bangalore.

The HOD of the merchandising department plans the orders and decides

which order will go to which factory for production. The lead time from order

received from buyer to shipment is 90 to 120 days. And the same is around

30-60 days for production.

General Explanation for Garment (Exports) Division:

Explanation of existing Functions and Events

Merchandising department to check all export orders to prepare Export

order execution for Export logistics and for distribution to QC, Production

after approval and authorization of HOD.

One copy of all export orders approved and signed by HOD will be sent to

Finance department.

Pre-shipment samples and Co-shipment samples related to export orders are

arranged by merchandising department.

Pro-forma invoice is prepared and copy of the same is forwarded to finance

department.

Production order (Lot number) preparation.

Planning of orders.

Preparation of Job File.

Customers to be kept informed about dispatch details by Export Logistics.

Collections of payments related to export shipment are through bank and is

closely monitored by the finance department. In case of any delay in receipt

of payments merchandising department is informed by finance department

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 47 of

75


48/75


who will take up the matter suitably with customer and ensure receipt of

payments.

The export documents includes,

Buyer PO Details

Proforma Invoice

Trim Purchase Requisition

Fabric Purchase Requisition

Job Card

Credit Note

Reporting s

Status of outstanding orders. Statement showing commission paid / payable in USD, Euro, HKD, etc.

Statement showing number of container shipped per months, country wise,

product wise and value wise.

Statement of freight paid throughout the year.

Total charges of expenses paid such as barges, survey fees.

Statement showing full details of exports with invoice number and date,

quantity, container number, B/L advance license number, CIF value,

freight, insurance, commissions, FOB value, bank details, destination.

Statement of Production / Shipment done in each unit.

Claims form buyers.

General Explanation For Garment (Domestic) Division.


Merchandising department to check all orders to prepare order execution

for logistics and for distribution to QC, Production after approval and

authorization of HOD.

One copy of all orders approved and signed by HOD will be sent to Finance

department. Pre-shipment samples and Co-shipment samples related to orders are

arranged by merchandising department.

Collections of payments related to shipment are through bank and is

closely monitored by the finance department. In case of any delay in

receipt of payments merchandising department is informed by finance

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 48 of

75


49/75


department who will take up the matter suitably with customer and

ensure receipt of payments.

The documents includes,

o Buyers PO Details

o Pro-forma Invoice

oTrim Purchase Requisition

o Fabric Purchase Requisition

oJob Card

o Credit Note

All purchase orders received by marketing department is sent to the

dispatch section after completion of following formalities.

o Check purchase order for Product, Grade, Quantity, Packing, Price,

Specifications, Delivery location & Schedule, Payment Terms.

o Prepare Sales order confirmation for domestic dispatches by sales

administration and the same is checked and approved by marketing

department as per guidelines from HOD.

o Customers to be kept informed about dispatch details by dispatch

department in case of domestic sales.

Fabric (Domestic / Export) Sales Process:

After finalization of quotation and approval of fabric sample, sort number

is generated and given to it. Customer sends purchase order for approved

sample that contains quantity, rate, delivery terms and payment terms.

After receiving purchase order from customer for export order Pro-forma

invoice is prepared and sent to account department for opening LC. Sales

contract is made for finished fabric. Copies of sales contract is forwarded

to Customer, MIL representative at Dyeing unit (Tarapur), Account

department. Purchase Order is released to Weaving House Unit, Tarapur

for Greige Fabric. Once the greige fabric is ready, it is dispatched to the

Dyeing Unit I / Dyeing Unit II as per Delivery Location mentioned in the

purchase order for final processes.

Once the processing is complete the goods are dispatched to the folding

and packing department for preparation of dispatching documents, like

packing list, delivery challan and excise invoice. The copies of the

packing list and excise invoice are sent to HO for preparation of

Commercial Invoice.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 49 of

75


50/75


Customer is kept informed about the dispatched details by dispatch

department after the product (Fabric) is finished. The dispatched details

are also given to account department through mail. The account

department releases commercial Invoice accordingly.

General explanation For Fabric (Domestic/Exports) Division


o Marketing department to check all domestic / export orders to

prepare order execution for logistics and for distribution.

o Preparation Pro-forma invoice and copy of the same is sent to finance

department for export orders.

o Preparation of Contract for sale and copy of the same is sent tofinance department.

o One copy of all export orders approved and signed by HOD will be

sent to Finance department.

o Customers to be kept informed about dispatch details by Export

Logistics in case of Export shipments.

o Collections of payments related to export shipment are through bank

and is closely monitored by the finance department. In case of any

delay in receipt of payments marketing department is informed by

finance department who will take up the matter suitably with

customer and ensure receipt of payments.

The documents includes,

o Pro-forma invoice

o Sales Contract

o Purchaser Order


The user can enter a sales order with several items in a single screen.

The system automatically proposes data from the relevant master

records such as sales, shipping, pricing, and billing data from the

customer master record of the sold-to party.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 50 of

75


51/75


For each material in the sales order, the system automatically proposes

data from the relevant material master records, such as data for pricing,

delivery scheduling, and availability check and tax determination.

All sales transactions are allocated to a combination of sales

organization, a distribution channel, and a division. The sales

documents can form part of chain of inter-related documents (Inquiry ,

quotation, delivery and invoice) and a document flow or history is

created.

During sales order processing the system can carry out availability

check, credit check, transfer of requirements to material planning &

production, delivery scheduling and pricing.

Most of the sales are direct to customers in local as well as in export

market. For the purpose of tracking the performance of each, separate

distribution channels will be inducted in the system.

The sales order can be copied from the quotation created earlier i.e.

creating with reference to a quotation or can be created directly without

reference to it.

The order is subjected to an automatic credit check by the system.

Subsequent to this, the system will carry out availability check for the

products and determine the delivery date as in the schedule lines, if it is

available in the free stock.

System will directly transfer the requirements of the material toProduction Planning department as soon as the user saves the order.


Sales Process

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 51 of

75


52/75


Domestic Sales

Return sales

Create Credit memo

Create Debit memoStock Transfer

Export Sales

Scrap Sales

Sample Sales


Sales Process

Quotation(Confirmed

orders)

SalesOrder

Type

Delivery

Type

Billing

Type

Domestic

Garment Sales ZDGQ ZDGO ZDGL ZDGF

Domestic Fabric

Sales ZDFQ ZDFO ZDFL ZDFF

Domestic Fabric

Stock (Surplus &

Fresh) Sales ZDSO ZDSL ZDSF

Exports

Garment Sales ZEGQ ZEGO ZEGL ZEGF

Deemed

Export(Garment) ZDEG ZDEL ZDEF

Exports Fabric

Sales ZEFQ ZEFO ZEFL ZEFF

Exports Fabric

Stock (Surplus &

Fresh) Sales ZESO ZESL ZESF

DeemedExport(Textile) ZDET ZDTL ZDTF

Return sales

(Fabric) ZFRE ZFLR ZFRE

Credit memo ZMCR ZMCF

Debit memo ZMDR ZMDF

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 52 of

75


53/75


Stock Transfer ZMST ZMTL ZMTF

Scrap Sales ZMSC ZMCL ZSSF

Sample Sales ZMSA ZMSL ZMSF

SupplementaryOrder ZMSO ZMPF

JOB Work Sales ZMJB ZMJL ZMJF

Lot Numbers to be maintained in Sales Orders manually.

1.4 Credit Control


Automatic Credit checks to be performed at Sales Order based on Credit

Limits.

System should not block the Sales Order creation but to give a warning at

the time of creation if the customer credit limit exceeds.

b) General Explanations

The risk category for credit and credit limits to be fixed for each Customer.

Credit Check to be carried out at Quotation, Sales Order, and Delivery and

at the time of posting the goods issue. The system will flash a warning

message at the Quotation, Sales Order stages, which can be overcome by the

user. If the credit limit is exceeded at the delivery stage, then, the delivery

will be blocked.

The Credit Block to be reviewed / removed only by designated person.

Sales Order Requirements shall however be transferred to MRP, even for

Blocked Sales Orders.

Risk categories will be defined and assigned to individual customers, alongwith specific credit limits. In addition, credit groups will be defined for

document types, known as document credit groups. Document credit groups

combine order types and delivery types for credit control purposes.

Credit check has been defined for a combination of the following data:

Credit control area

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 53 of

75


54/75


Risk category: Risk categories will be defined and assigned for individual

customers, along with specific credit limits.

The standard version of the SAP R/3 System contains different reports

providing an overview of Credit Management.

a)Existing configuration

No credit related checks are performed as such in the systems but are done

manually outside the system and that too on case by case basis.


New credit control area 1000 to be created and company code 1000 assigned

to it.

MIL needs to maintain the credit limit for the individual customers in

masters

It will show just warning Pop ups if Customer exceeds the credit limit in case

of domestic sales only at the time of Sales Order creation.

1.5. Shipping


Explanation of existing functions and events For Garment (Exports)

Division

Finished goods are dispatched from Sewree warehouse and Bangalore

warehouse. The documentation relevant to dispatch is carried out by thedispatch section (Export) located at Parel for both the dispatching points.

For Mumbai goods are loaded at JNPT for Sea mode and at Andheri for Air

mode. For Bangalore they are loaded at Tuticorin, Chennai or Tirupur for Sea

mode and at Bangalore for Air mode. Company exports garments to American,

European, Asian countries and Australia.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 54 of

75


55/75


Following major activities are associated with the export department.

o Check sales order confirmation and corresponding purchase orders from

customer.

o Packing list is received from production after finishing the goods.

o One copy of packing list is sent to customer for approval and one is sent to

the forwarder.

oAfter approval from customer planning for shipment is proceed.

oArrange for necessary documentation (viz. Invoice, Packing list, SDF form,

Value declaration, ARE1, GSP) for Custom clearance.

o Bill of landing for inspection is released as per LC from forwarder.

oTo make all relevant entries for preparation of final invoice according to LC

and Purchase Order and intimate excise department.

oAccount department is kept informed with the dispatch details for

preparation of Sales invoices.o Provide daily dispatch details to marketing department.

Documents include:

o Custom Invoice

oAnnexure I and II

oValue Declaration

o SDF form

oAppendix IV

o Excise Invoiceo GSP (Generalized System of Preference) Certificate of Origin for Textiles or

AEPC

o Bill of Exchange

o Bill of Landing / Airway Bill

o Commercial Invoice (For Customer)

o Commercial Invoice (For Bank)

o Packing List

o Certificate of Exports and Realization

o Certificate of Origin (Bombay Chamber of Commerce)

Explanation of existing functions and events For Garment (Domestic)

Division.

Domestic dispatch of garments is carried out from Mumbai and Bangalore

separately. For Mumbai finished goods are dispatched from Sewree warehouse.

For Bangalore goods are dispatched from Bangalore warehouse. The

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 55 of

75


56/75


documentation for Mumbai dispatching is done by the dispatch section

(Domestic) located at Parel whereas the same for Bangalore is done by the

dispatch section at Bangalore. Once the goods are ready packing list and excise

invoice is prepared and goods are dispatched along with them. Copies of the

same are sent to the dispatch department located at Parel, Mumbai.

Following major activities are associated with the dispatch section.


customer.

o Plan dispatches based on delivery schedules indicated by customers. In

some cases DA (Delivery Acceptance) is given by the customers and then

dispatch is carried out accordingly.

oArrange for necessary transportation for dispatches.

oTo make all relevant entries for preparation of commercial invoice andintimate excise department for preparation of excise invoice.

oArrange for QC and QA.

o Preparation of delivery order / packing slip for dispatches from Mumbai

factory and Job workers.

o Supervise physical loading and ensure loading of correct quantity.

o Inform customers all dispatch details for transit insurance.


preparation of Sales invoices.

o Receiving finished goods (packed) from production and maintaining stocks of

products.o Provide periodic stock statements to marketing department. (Closing stock of

material for any day is calculated as Days opening stock + Finished Goods

receiving during the day from production less dispatches of the day.

o Provide daily dispatch details to marketing department.

Explanation of existing functions and events for fabric (Exports/Domestic)

Division.

Domestic:Domestic dispatch of Fabric is carried out from Tarapur warehouse.

Once the goods are ready to dispatch, the store persons prepare packing list.Excise invoice is also prepared accordingly. Copies of the packing list and excise

invoice are sent to the account department (Fabric-Domestic) located at Parel

for preparing of commercial invoice.

Following major activities are associated with the dispatch section.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 56 of

75


57/75



customer.

oArrange for QC and QA.

oArrange for necessary transportation for dispatches.

oTo make all relevant entries for preparation of commercial invoice and

intimate excise department for preparation of excise invoice.

o Supervise physical loading and ensure loading of correct quantity.

o Inform customers all dispatch details for transit insurance.



o Receiving finished goods (packed) from production and maintaining stocks of

products.

o Provide periodic stock statements to marketing department. (Closing stock of

material for any day is calculated as Days opening stock + Finished Goods

receiving during the day from production less dispatches of the day.


Export:For export sale of finished fabric is dispatched from Tarapurwarehouse. The documentation relevant to dispatch is carried out by the

dispatch section (Export) located at Parel. The goods are loaded at JNPT port.

Company exports Fabric to Saudi Arabia, Bangladesh, Sri Lanka and some

South Asian countries.

o Following major activities are associated with the export department.


customer.

o

Packing list is received from production after finishing the goods.o One copy of packing list is sent to customer for approval and one is sent to

forwarder.

oAfter approval from customer planning for shipment is proceed.

oArrange for necessary documentation (viz. Invoice, Packing list, HDF form,

Value declaration, ARE1, GSP) for Custom clearance.

o Bill of landing for inspection is released as per LC from forwarder.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 57 of

75


58/75


oTo make all relevant entries for preparation of final invoice according to LC

and Purchase Order and intimate excise department.




Documents include for export dispatch:

o Custom Invoice

oAnnexure I and II

oValue Declaration

o HDF form

oAppendix IV

o Excise Invoice

o GSP (Generalized System of Preference) Certificate of Origin for Textiles or

AEPC

o Bill of Exchange

o Bill of Landing / Airway Bill

o Commercial Invoice (For Customer)

o Commercial Invoice (For Bank)

o Packing List

o Certificate of Exports and Realization

o Certificate of Origin (Bombay Chamber of Commerce)

Shipping processing will consist of creating and processing deliveriesfor salesorders due for delivery. Picking will be done from predefined storage locations.

Goods issue posting will complete the shipping process.

MILS will carry out delivery for individual order as well as use delivery due list

for the same. Goods issue will reduce the storage location stock by the delivery

quantity and automatically update stock values in financial accounting.


When a delivery is created, shipping activities such as picking and delivery

scheduling are initiated and monitored, and the data generated during shipping

processing is recorded.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 58 of

75


59/75


The customer master record should have validity for complete and partial deliveries

as well as on order combinations. Deliveries can be processed individually for an

order or a delivery due list can be generated. Goods issue will reduce the material

stock and corresponding value changes will take place in accounting.

The delivery document will be created with reference to the Sales Order created

earlier. In the system, each Plant will have one shipping point and one storage

location called as finished goods storage location (FG) for delivery processing as far

as sales & distribution is concerned.


Delivery types not predefined for MIL.

Sales Process

Domestic Sales( Fabric &

Garment)

Return sales

Stock Transfer

Export Sales (Fabric &

Garment)

Scrap Sales

Sample Sales


New Delivery type will be created and internal number range to given.

Sales Process

Delivery

Type

Domestic

Garment Sales ZDGLDomestic Fabric

Sales ZDFL

Domestic Fabric

Stock (Surplus &

Fresh) Sales ZDSL

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 59 of

75


60/75


Exports

Garment Sales ZEGL

Deemed

Export(Garment) ZDELExports Fabric

Sales ZEFL

Exports Fabric

Stock (Surplus &

Fresh) Sales ZESL

Deemed

Export(Textile) ZDTL

Return sales

(Fabric) ZFLR

Credit memo

Debit memo

Stock Transfer ZMTL

Scrap Sales ZMCL

Sample Sales ZMSL

Supplementary

Order

JOB Work Sales ZMJL

1.6. Billing


Billing represents the final processing stage for a business transaction in

Sales and Distribution.The billing document covers Invoices, Credit and

debit memos,Proforma invoices and cancellation documents.

Billing will be used to issue invoices based on goods sold. Credit memo can

be generated for discounts and return of goods from the customer. Debit

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 60 of

75


61/75


memo can be generated for any additional charges to be levied on the

customer.

The billing data will be forwarded by the system to Financial Accounting and

controlling.

The system will update billing status in all related sales documents,

deliveries and billing documents.

Cost and revenue are posted to accounts such as customer accounts

receivable, revenue, sales deductions, accruals account.

Explanation of existing functions and events For Garment (Exports)Division.

oAll Commercial invoices related to export sales from all dispatch

departments are prepared by Export Logistic department at Parel.

o Excise invoice is made at Sewree for Mumbai orders and it is made at

Bangalore for Bangalore orders.

Various types of Invoices:

o Excise and Commercial invoice on same party and same address.

o Excise and Commercial invoice on same party and different address.

o Freight paid and freight to pay invoice.

o Freight paid by seller but to be shown in invoice as reimbursable by buyer.

o Invoice for sales within the state with VAT and for interstate sales with CST

or invoice having tax exemption.

o Invoice with different payment terms like advance payment, 07 / 30 / 60 /

90 days direct credit from date of dispatch, post dated cheques, payment

against delivery.

o Invoice showing due date after specified period from date of receipt of goods

at destination.

o Invoice against LC (Letter of credit).

o Invoice against Pro Forma.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 61 of

75


62/75


o Invoice against bill of exchange.

Explanation of existing functions and events For Garment (Domestic)

Division.

o Invoices are generated by sales department at Parel.

oAll billings are based on Pro-Forma invoices or Letter of Credit (LC).

o Excise duty is levied as per government norms in force and currently there

is a uniform duty structure of 10% BED, 2% SEC and 1% HEC for all

garments. No excise duty on fabric.

oTotal value of invoices is not rounded off to nearest rupee. Applicable VAT /

CST is charged in the invoice.

o Other charges like freight and handling charges, octroi will be included in

the invoice.

o Excise invoice for domestic dispatches are prepared at respective factory

warehouse.

o Commercial invoice for dispatches from all dispatch points is prepared at

Parel.

Explanation of existing functions and events For Fabric

(Exports/Domestic) Division.

Domestic Billing:

o Invoices are generated by sales department at Parel, Mumbai

oAll billings are based on Contract for sale / Letter of Credit (LC).

o Excise duty is levied as per government norms in force and currently there

is a uniform duty structure of 10% BED, 2% SEC and 1% HEC for all

garments. No excise duty on fabric at present but it is to be captured in

future.

oTotal value of invoices is not rounded off to nearest rupee. Applicable VAT /

CST is charged in the invoice. Other charges like freight and handling

charges, octroi will be included in the invoice.

o Excise invoice for domestic dispatches are prepared at respective factory

warehouse, Tarapur.

o Commercial invoice for dispatches from all dispatch points is prepared at

Parel, Mumbai.

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 62 of

75


63/75


64/75


- a sales order

- a delivery

Subsequent to the creation of an invoice, the posting will be done to

Financial Accounting.

Credit Memo & Debit Memo:

The credit memo and debit memo requests are the preceding documents in

order to prepare the credit memo and debit memo respectively. The request

documents will contain the reason for preparing the credit memo and the

debit memo.

The system automatically creates relevant accounting documents for

General ledger and cost accounting.

With automatic Account postings, with system checks, need for

reconciliation is eliminated and analyses of receivables, credit limits are

readily available, provided the data is entered in the system punctually.

However, due to unavoidable delays in posting, the customer outstanding

may have to be reconciled once in a month.


Sales Process

Domestic Sales

Return sales

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 64 of

75


65/75


Create Credit memo

Create Debit memo

Stock Transfer

Export SalesDeemed Export

Scrap Sales

Sample Sales

Supplementary Invoice


New Billing type to created and number range will be given.

Sales Process

Billing

Type

Domestic

Garment Sales ZDGF

Domestic Fabric

Sales ZDFF

Domestic Fabric

Stock (Surplus &Fresh) Sales ZDSF

Exports

Garment Sales ZEGF

Deemed

Export(Garment) ZDEF

Exports Fabric

Sales ZEFF

Exports Fabric

Stock (Surplus &Fresh) Sales ZESF

Deemed

Export(Textile) ZDTF

Return sales

(Fabric) ZFRE

Doc :

Ver : 1.0


Ltd

All Rights Reserved


Ver : 1.0

Page 65 of

75


66/75


Credit memo ZMCF

Debit memo ZMDF

Stock Transfer ZMTF

Scrap Sales ZSSFSample Sales ZMSF

Supplementary

Order ZMPF

JOB Work Sales ZMJF

Foreign Trade data like Port of discharge, Port of Loading, Marks & Numbers

will be maintained manually in the Commercial Invoice Document manually

Also Packing List, Excise Invoice, Customs Invoice & standard Commercial

Invoice outputs can be taken from the system.

1.7. Billing Cancellation


The system should provide a facility to cancel billing documents in

situations where errors occur.

b) General Explanation

When a billing document is cancelled, the system creates a cancellation

document. The cancellation