SAP-TO BE Process

New Allenberrry Works

FICO NAW
Finance and Controlling

Version 1.0
25.09.2006

STATEMENT OF CONFIDENTIALITY / DISCLAIMER

This document is the property of Caritor, Inc. No part of this
document shall be reproduced, stored in a retrieval system,
or transmitted by any means, electronic, mechanical,
photocopying, recording, or otherwise without prior written
permission from Caritor, Inc.

Table of Contents

Table of Contents
GL Postings............................................................................................................................................3
1. AS IS Process..................................................................................................................................4
Accrued / prepaid expenses....................................................................................................................................... 4
Cross company transaction........................................................................................................................................ 4
Document Reversal.................................................................................................................................................... 4
Recurring Entry.......................................................................................................................................................... 4
Balance Analysis........................................................................................................................................................ 5
GL Evaluations........................................................................................................................................................... 5
Account Balance interest calculation for General Ledger........................................................................................... 5

2.

Core to Be Process.................................................................................................................................6
Changes to Existing Organization........................................................................................................................12
Description of Improvements and Key Metrics.....................................................................................................12
Notes on Further Improvements...........................................................................................................................12
Functional Deficit and Method to Remove That....................................................................................................12
Interface Requirement..........................................................................................................................................12
System Configuration Considerations..................................................................................................................12
File Conversion Considerations............................................................................................................................12
Any reports required related to current business process....................................................................................12
Any document/output would be printed for this business process........................................................................12
Authorization Considerations................................................................................................................................13
End User Training Requirements..........................................................................................................................13

A. SAP Standard Reports..........................................................................................................................14

B. Custom Developments.........................................................................................................................15

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SAP-TO BE Process
GL Postings
TO-BE Document
For SAP R/3 Implementation at New Allenberry Works
Date: 25.09 2006
Sr. No of TO BE document

Ref. Sr. No. Of AS-IS document

Name of Business Process:

General Ledger Accounting & Document Posting

Module: Finance

Sub module: General Ledger

Version no of document:

Date: 25.09.2006

Version Management This Document is subject to change control. Every change of the document has to Undergo change
control procedure and has to be registered in the following table
Version

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Change

Prepared By

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Date

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SAP-TO BE Process
1. AS IS Process
Documents are classified on the basis of
Bank Payment/ Receipt Transaction

- Bank Voucher

Cash Transaction

- Cash Voucher

Sale Invoice

- Sale Voucher

Purchase

- Purchase Voucher

Debit / Credit

- Debit Note / Credit Note

Other Transactions

- journal Voucher

Except Excise documents (Legal requirement) all other documents are externally numbered.
Document number is separate for each type of document mentioned above. Further these
documents are year dependent.
At present document number is generated automatically for each category of document
such as separate number for Sales Invoices, Purchase voucher, Bank Voucher, Cash
voucher, journal voucher.
NAW has the following general ledger transactions to process (not exhaustive):

Accrued / prepaid expenses

Cross company transaction
Document Reversal
Document reversal should update the balances of the relevant account by rectification entry.

Recurring Entry
There are documents that occur on regular basis (monthly, or quarterly for example)
Salary payment
Telephone expense payment

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SAP-TO BE Process
Balance Analysis
No online option for Balance Analysis available.

GL Evaluations
NAW requires the following daily, weekly, periodic, and ad hoc reports for the general ledger

Account Balance interest calculation for General Ledger

Sometimes for certain accounts, interest on balance is calculated

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2. Core to Be Process
The General Ledger Module is used for creation of GL Accounts and recording all
business transactions of a company.
GL Posting- Types
In SAP GL postings within the FI module are made in two ways:
1. Automatically via transactions through configurations which take place in the other
functional modules (MM, SD and PP or within FI)
2. Duly authorized person can make direct manual G/L postings.
Posting into different Cost Centers will happen because of automatic determination of
Cost Centers. Where automatic determination does not occur like in case of Financial
JVs Cost Centers need to be entered manually.
The SAP process G/L Account Posting generally refers to the manual posting of a
standard G/L document made directly by the Finance department.
Features of a Document
A standard G/L document is the result of a transaction that must be posted directly to 2
or more G/L accounts. It must contain at least 2 line items, one debit and one credit, but
it may contain more than 2 line items. The total debits must equal the total credits within
the document - the system will not allow an unbalanced document to be posted to the
G/L. In SAP the system dont accept more than 999 line items in a single document (i.e.
in a single entry)
Every document created in the system will have a unique document number and belong
to one document type.
It is not possible to save a document till all required fields i.e. Company code,
document date, posting date, document type, currency, posting key (depending on
transactions), accounts and amounts are filled
Document Type

The document type classifies accounting documents. It is noted in the document

header.

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SAP-TO BE Process
Attributes that control the entry of the document or which are themselves stored in the
document are stipulated for each document type. In particular, the number range
assigned to the relevant documents is determined on the basis of the document type.
Depending on document type, there are also required fields viz., Document Header
Text, Reference Text, assignment field, Text, Tax field to name a few.
Document Structure
The structure in all documents is in two sections: Document header and Line
items.
Document Header

The document header contains information that applies to the entire document,
such as the document date, posting date, Co Code, Currency, Header Text,
Reference field.
Line Item

The line items represent the part of a document containing information on a

single item.
Line Item always includes:
Posting key only one posting key is associated with every document line item

processed within R/3. It is the posting key that controls whether a line item will
be a debit or a credit. The posting key controls the specific type of account of the
line item, and also influences screen display.
Account number (only from 1000 chart of accounts)
Amount in: document currency (the currency in which transaction occurred), local
currency (the currency of company code).
Tax codes (if necessary)
Cost object (for P&L account type) for the link between FI and CO.
Normally GL postings are made via T Code FB50 (Enjoy Posting t.code) while the
alternate T Codes are F-02 and FB01 (FB01 for JVs). (Normal Posting t.code)

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SAP-TO BE Process
Document Parking
A document, irrespective of being an A/P, A/R or G/L document, can be parked during
processing if:
Insufficient data to complete the document (i.e. missing invoice or account numbers)
User is interrupted with other tasks/emergencies
The document has many lines and must be temporarily halted and recommenced later
A document cannot be parked if only the Document Header details have been entered.
When a document is parked, the system issues a document number and the data
entered so far is not included in any evaluations and does not update any account
balances. Parked documents can be completed, checked and then posted at a later
date.
An A/P, A/R or G/L document can be parked in two ways depending on the situation:
Need to park document is known before processing begins -- Non-availability of
sufficient data to process a document may require a document to be parked. So the
document is parked with available information. It is completed and posted as and when
the required data becomes available. Transaction F-63 for AP, F-64 for AR and F-65 for
G/L are used in such cases, if it is known that the document is to be parked before
processing it commences.
Need to park document is unknown before processing begins -- In some cases, the need
to park a document does not arise until the middle of processing the line items. This
could occur if there is insufficient data to complete the document (i.e. missing invoice or
account numbers) in the midst of posting.
Some interruptions with other tasks/emergencies stop the transaction halfway.
In these situations there is an option for selecting the menu path Document/Park
Document whilst you in transactions FB60, F-43 (for vendor invoice), FB70, F-22 (for
customer invoice) and FB50 or F-02 (for G/L posting).

Speeding up Data entry process

For speeding up GL posting process multiple options are available in SAP. The following
options are available in the system

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Sample Document
You can create a document that does not update the GL or sub ledger accounts but you
can use it later as a reference document to speed up posting.
When creating a sample document (templates) the user must externally assign the
document number. The system will accept alphanumeric characters.
This will enable users to create document numbers than have some relevance or
meaning to the sample document and can be easily recalled when posting with
reference to a sample document. For example, a sample document relating to regular
payment to the same vendor can be created and saved as user_VENDORNAME.
Using Sample document as reference the user can post a document or reverse the
document etc.

Recurring entries
To create accounting documents from original recurring documents, you have to
either run the program or schedule it to run. You must run the recurring entry
program at appropriate intervals and specify, by entering a settlement period
which recurring entry documents to be included in the run. The amount of the
original document cannot be changed.
All the following scenarios will be handled through the various options available.

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Interest income

Other income

Commission

Freight outward

Salaries and wages accounting

Excise rebate and DEPB accrual.

Interest calculation

Reinstatement of forex balance

Accounting for Bank advices

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SAP-TO BE Process
Account assignment model
The account assignment model is used to post GL account entries, which are of
recurring type in nature, occur after regular period of interval. Amount posted in
each period may change. During document entry you can change, add to or
delete the data proposed by the system.
Such entries will be identified under account assignment model and that model of
entries will be called at the time of passing the entry at the period end and
necessary modification can be done. Only those provisions will be made through
this wherever there is no purchase order or service order. In contrast to sample
documents, the G/L account items for account assignment models may be
incomplete
SAP-TO BE Process
This function allows you to post automatically accruals and deferrals:
Accruals - an accrual any expenditure before the closing key date which
represents an expense for any period after this date.
Deferrals - Deferred income is any receipts before the closing key date that
represent revenue for any period after this date.
The accruals can be reversed later also automatically.
Fast Data Entry
When you are entering line items in General Ledger, Accounts Receivable, or
Accounts Payable, you can call up a special screen for fast entry of G/L account
line items.
When you choose G/L item fast Data entry-on the next data entry screen, you
can make entries in the following fields:

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Pk (Posting key)

Account (account number)

Amount

Tx (tax on sales/purchases)

Cost ctr (cost center)

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SAP-TO BE Process

Order

General options in G/L Posting

In SAP the following options are also available in addition to above:
G/L document posting without clearing
G/L document posting with clearing
G/L document posting with reference
Change a G/L document
Display a G/L document
Reverse a G/L document
Clearing
Reset cleared items.
Details needed for analysing expenditure under various heads on employees will be
discussed during the progress of the project and work around for obtaining necessary
details will be accordingly suggested.

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SAP-TO BE Process

Process Flow Chart:

Further Notes

Changes to Existing Organization

Business Transactions like purchase, sales would update the GL Accounts in real
time. Posting to all expense GLs need Cost Center. Posting to GL need profit
center/segment.

Description of Improvements and Key Metrics

Standard accounting templates can be used to enter repetitive vouchers and speed up
the data entry process. Human errors would be eliminated because of system
integration and automatic posting of documents.

Notes on Further Improvements

NA

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SAP-TO BE Process
Functional Deficit and Method to Remove That
NA

Interface Requirement
NA

System Configuration Considerations

NA

File Conversion Considerations

NA

Any reports required related to current business process

NA

Any document/output would be printed for this business process

NA

Authorization Considerations
Detailed Authorization matrix will be defined for all users in the common file for all modules.
The high level Authorization requirements are as below.
Business Roles

Number of Users

Business Manager
Operations Manager
Transaction Owners

End User Training Requirements

<E.g.:

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SAP-TO BE Process
Business User Segments

Number of Users

Type of Transaction

Business Manager

Display, Reports

Operations Manager

Change, Display, Reports

Transaction Owners

Create, Display, Reports

Geographical Location

Sign-off (Approval) for this document:

Name of Team members:

Organization / Bus. Unit

FI/CO Consultant-Vinod Atmakuri

Caritor Inc

Business Process Owners-C.M Duggar

New Allenberry Works

Key User- Balbir Khanna

New Allenberry Works

Key User- Vishal Sharma

New Allenberry Works

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Signature

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SAP-TO BE Process

A. SAP Standard Reports

<E.g.:
SAP Standard Reports
Sl No:
01

Report Description
Document Display List

Selection Criteria
FB03

Output
Screen View/Output

02
03
04
05
06
07
08
09
10
11

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SAP-TO BE Process

B. Custom Developments
<E.g.:
Print Requirements
Sl No:

Report Description

Selection Criteria

Output

1.0
2.0

Development Requirements
Sl No:

Report Description

Selection Criteria

Output

1.0

Report Requirements
Sl No:

Report Description

Selection Criteria

Output

1.
2.
3.

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