AL-ITTEFAQ STEEL HOLDING

SAP BPC(Business Planning &

Consolidation)

Overall Project Scope

Quantitative Income Statement – Per Ton Income Statement of Detailed Revenue and Product Cost per ton of operating companies at Stand Alone and Consolidated Level.

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

Product Profitability Monthly Profit Center wise Contribution Margin with unique stock valuation and data extraction for decision making and operational measurements.

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

Reports Covered in SAP BPC

Quantitative Analysis (Per Ton Report) Entity wise Stand Alone QR Report Entity wise Contribution Margin

Report Consolidated QR Report Cost Analysis report Performance Snap Shot Report

Legal and Zakat Consolidation Balance Sheet – Consolidated Balance Sheet – Columnar Entities

with Elimination Column Balance Sheet – GL Group Split Statement of Income –

Consolidated Statement of Income - Columnar

Entities with Elimination Column Statement of Income – GL Group

Split Indirect Cash Flow Stand Alone

and Consolidated Fixed Asset Schedule Investment Reconciliation

Product Profitability Contribution Margin Pricing Standard Entity-Segment (Profit Centre) wise

performance Closing Stock Valuation (Additional) GL wise Detailed Report (Additional) Production Quantity, Material wise

and Profit Centre wise (Additional)

Management Consolidation Balance Sheet – Consolidated Balance Sheet – Columnar Entities

with Elimination Column Balance Sheet – GL Group Split Statement of Income –

Consolidated Statement of Income - Columnar

Entities with Elimination Column Statement of Income – GL Group

Split Direct Cash Flow Stand Alone and

Consolidated Ratio Analysis – Summary and

Detailed

Achievements from Project Platinum

Excel Based Working

Material and GL Wise Data extraction

Process Gaps and Reporting

Manual Data and Reporting Process

Multiple Excel Files

Manual Data Sharing

Distributed and Discrete Data

Time Gap in Report and System Entry

Process Streamlining

Report Developments

Report Validation and Simulation

Data Extraction Modeling

Data reporting Modeling

Reporting Structure Refinements

Efficient Data Extraction Design

One Data Source – Distributed and Controlled Access

Excel Interface for Enhanced Integrity

Process Transformation

Process Automation

Least Manual Intervention

Timely Availability of Reports

Reporting Structure Refinements

Streamlined Data Extraction

Indirect Control over System Entries

User Friendly Reports

Earlier Process Implementation After Implementing BPC

Value Addition – One Data Source – Distributed and Controlled AccessAll management reports are on one Platform, adding value by time saving for report retrieval.

Excel Interface for Enhanced IntegrityAll Reports are excel based, user can save these reports as a normal Excel and also customize existing report as per their requirement.

Process TransformationLoophole in important report are removed and reporting process streamlined for all Management Reports covered under Project. This will eliminate all the data cleansing and manual processing.

Process Automation Manual generation of Per Ton report is automated with complex data extraction and calculation logic. This provides daily updated Per Ton Report which add value in cost analysis and decision making. This will automate all formulas for calculation, by saving time on checking each report every time.

Least Manual Intervention All calculation logics, complex GL grouping, Material Grouping are automated. The core value addition of the project, as once data is updated in any GL or Material, all related reports will get updated automatically.

Value Addition – Project Platinum Timely Availability of ReportsAll Per Ton Report, Consolidation Reports and Profitability reports are automated and available on one platform with updated value. Adding value in business analysis as on time availability of critical report.

User Friendly ReportsAll reports are in Excel, with value added drag and drop, user defined and in the format required with color in every cell level values.

Indirect Control over System EntriesProcess automation calls for refined data entry structure as well, by implementing system to it now there will be indirect control over the wrong entry posing.

Streamlined Data Extraction Data Extraction for Per Ton report logic is refined with filling gaps in current logic. Even for some of companies it is totally reinvented with extreme efforts to add value to report with proper numbers in it.

Reporting Structure RefinementsManagement reporting structure is refined with elimination all reporting loopholes which were existing because of Manual Processing of Data. All reports are now in one format, color and fonts as required by business.

INTRODUCTION – SAP FI/COFINANCIAL ACCOUNTING (FI)

MANAGEMENT ACCOUNTING (CO)

General LedgerGeneral Ledger

Accounts ReceivableAccounts Receivable

Accounts PayableAccounts Payable

Asset ManagementAsset Management

Bank AccountsBank Accounts

Cost Element Accounting

Cost Element Accounting

Cost Center Accounting

Cost Center Accounting

Internal OrdersInternal Orders

Product CostingProduct Costing

Profit Center Accounting

Profit Center Accounting

GENERAL LEDGERACCOUNTS

Components of Financial Accounting (FI); Lets an organization manage external reporting

The Financial Accounting (FI) application component fulfills all the international requirements that must be met by the financial accounting department of an organization.

All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR) components are posted real-time to Financial Accounting by means of automatic account determination.

Preparation of operational information to assist strategic decision-making within the organization

Components of Management Accounting (CO); Lets an organization manage internal reporting

Controlling provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization.

GENERAL LEDGER (FI-GL)

Essentially, the general ledger serves as a complete record of all business transactions.

Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger accounts (reconciliation accounts)

Simultaneous updating of general ledger and cost accounting areas

The central task of General Ledger accounting is to provide a comprehensive picture for external accounting and accounts.

Recording all business transactions (primary postings as well as settlements from internal accounting) that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.

ACCOUNTS RECEIVABLE (FI-AR)

InvoiceProcessing

Master Data / Credit

Management

Accounts Receivable

Receipt / Payments

Account Analysis &

Reconciliation

Reporting

FinancialAccounting

PeriodicProcessing

The Accounts Receivable application component records and administers accounting data of all customers.

It is also an integral part of sales management.

Postings in Accounts Receivable are also recorded directly in the General Ledger.

Different G/L accounts are updated depending on the transaction involved (for example, receivables, down payments, and bills of exchange).

ACCOUNTS PAYABLE (FI-AP)Vendor Invoice Process - Three-Stage Verification

InvoiceProcessing

SundryLogistics

Master Data

Accounts Payable

Payments / Disbursements

Account Analysis &

Reconciliation

Reporting

FinancialAccounting

PeriodicProcessing

The Accounts Payable application component records and administers accounting data for all vendors

It is also an integral part of the purchasing system

The system automatically makes postings in response to the operative transactions

BANK ACCOUNTING (FI-BA)

This component is used to handle accounting transactions that business process with bank

It includes variety functions such as

Management of Bank Master Data

Check Processing

Bank statement Processing

Incoming and outgoing payments

Cash Journal Master Data

Cash Journal Posting & Reports

ASSET ACCOUNTING (FI-AA)

Generalledger

accounts

Balancesheet

Assetclasses

Assetmaster

records

A L

Vehicles Fixtures andfittings

Buildings Assets underconstruction

Asset Accounting component is used for managing and supervising fixed assets

In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets

With the integration feature in the SAP System, Asset Accounting transfers data directly to and from other SAP components. For example,

it is possible to post from the MM component directly to FI-AA.

When an asset is purchased or produced in-house, we can directly post the invoice receipt or goods receipt, or the withdrawal from the warehouse, to assets in the Asset Accounting component.

From the Plant Maintenance (PM) component, we can settle maintenance activities that require capitalization to assets.

At the same time, we can pass on depreciation and interest directly to the Financial Accounting (FI) and Controlling (CO) components.

COST ELEMENT ACCONTING (CO-CE)

Cost Element Accounting is the area of cost accounting where we track and structure the costs incurred during a settlement period. its a detailed recording of data that forms the basis for cost accounting

Each business transaction that involves costs updates the CO component with detailed information on the cost element and on the account assignment object.

The cost and revenue flows will update FI and simultaneously create equivalent postings into CO.

The relevant accounts in FI are managed in CO as cost elements or revenue elements.

COST CENTER ACCONTING

Cost Center is an organizational unit within a controlling area that represents a clearly delimited location where costs occur

Cost Center Accounting lets business analyze the overhead costs according to where they were incurred within the organization.

INTERNAL ORDERS (CO-IO)

Internal Orders

Cost Accounting FunctionsCost Accounting Functions

RecoverableOrders

Overhead orders

Investment orders

Internal orders describe individual jobs within a controlling area. Orders support action-oriented planning,

monitoring, and allocation of costs.

Internal orders may be used for a variety of purposes:

• Monitor internal actions settled to cost centers• Monitor internal actions settled to fixed assets• Monitor internal actions settled to GL accounts

PROFIT CENTER ACCONTING (CO-PCA)

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

PRODUCT COSTING (CO-PC)

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BUDGET CONTROL SYSTEM (FM-BCS)

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SCRAP

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REPORTING REQUIREMENT

SCRAP FI – Financial Accounting Modules

APAccounts Payable

A MAsset Management

General Ledger

GL ARAccounts Receivable

FI