BUSINESS REQUIREMENT BASELINE

Chintels India – Finance and Accounts (GL, AP, AR, FA & CM)

Author : Manu Kant Aggarwal

Creation Date : 11th November, 2013
Reviewer : Lalit Mohanta
Last Updated : 27th November 2013
Document Reference : Chintels_Fin_Future_Process_Baseline
Version : 1.0

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Document Control

Change Record

Date Author Version Change Reference

11-November-2013 Manu Kant 1.0 No previous document

27-November -2013 Manu Kant 2.0 Updation Ver 1.0

Reviewers

Name Position

Lalit Mohanta VizExec Consultant

Mr Kamlesh Tiwari Chintels Process Owner
Ashish Gupta VizExec Project Manager
Mr T S Krishna Chintels Project Manager

Distribution

Copy
Name Location
No.

1 Library Master Project Library

2 Mr T S Krishna Chintels Project Manager
3 Ashish Gupta VizExec Project Manager

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Contents

DOCUMENT CONTROL .............................................................................................................................................................................................................................. 2

Change Record .................................................................................................................................................................................................................................... 2
CONTENTS ................................................................................................................................................................................................................................................ 3
PROCESS DESCRIPTION FOR FINANCE AND ACCOUNTS ............................................................................................................................................................................ 4
FINANCIAL MODULES COVERED ............................................................................................................................................................................................................ 15
Requirements Gathering Methods: .................................................................................................................................................................................................... 16
Oracle General Ledger ...................................................................................................................................................................................................................... 16
Oracle Payables: ............................................................................................................................................................................................................................... 24
Oracle Receivables: ........................................................................................................................................................................................................................... 31
Oracle Fixed Asset ............................................................................................................................................................................................................................. 39
ASSETS MANAGEMENT ........................................................................................................................................................................................................................... 46
ACCOUNTS PAYABLES ............................................................................................................................................................................................................................ 47
ACCOUNTS RECEIVABLE ........................................................................................................................................................................................................................ 48
PROCESS FLOW FOR FINANCIAL ....................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
RECEIVABLE PROCESS FLOW.................................................................................................................................................................................................................. 49
PAYABLE PROCESS FLOW ....................................................................................................................................................................................................................... 50
FIXED ASSETS PROCESS FLOW ............................................................................................................................................................................................................... 51
FINANCIAL MODULES INTEGRATIONS .............................................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
RECEIVABLES INTEGRATIONS ........................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
PAYABLES INTEGRATIONS ................................................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
FIXED ASSETS INTEGRATIONS .......................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
ANNEXURE ............................................................................................................................................................................................................................................. 52

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 Process Description for Budget and Reporting

Pp Process ID Process Name Process Description Remarks

BU Budget
BU.1  Formulation of Budgets  Budgets are formulated on an annual basis for each cost centre
and at account summary level.
 The budgets would be made by the individual departmental
heads and would be frozen after review and approval.

BU.2  Budgetary Controls  The expenses need to be tracked with the budgets/Targets and
soft controls in terms of notifications for variances would be
followed.

BU.3  Formulation of Targets  Targets are formulated on monthly basis.

 On a periodic basis, variance analysis (Actual Vs Targeted) is
done.
 The Targets are revised after due approvals.

BU.4  Budget  Budget reports and listings contain information about your
budgets and budget organizations, including account
assignments and budget hierarchies.

RE.1  Account Analysis  The accumulated balances of a range of accounts and all journal
entry lines that affect that range.

RE.2  Multi-Company accounting and Con-  Provide information about Chintels multi-company accounting
solidation and consolidation activities. Request for reports about
intercompany transactions made using General Ledger's.

RE.3  General Ledger  Beginning and ending account balances, and all journal entry
lines affecting each account balance in your functional and
foreign currencies.

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Pp Process ID Process Name Process Description Remarks

BU Budget
BU.1  Formulation of Budgets  Budgets are formulated on an annual basis for each cost centre
and at account summary level.
 The budgets would be made by the individual departmental
heads and would be frozen after review and approval.

BU.2  Budgetary Controls  The expenses need to be tracked with the budgets/Targets and
soft controls in terms of notifications for variances would be
followed.

BU.3  Formulation of Targets  Targets are formulated on monthly basis.

 On a periodic basis, variance analysis (Actual Vs Targeted) is
done.
 The Targets are revised after due approvals.

BU.4  Budget  Budget reports and listings contain information about your
budgets and budget organizations, including account
assignments and budget hierarchies.

RE.4  Journals  Provide journal information in functional and foreign currencies,

including posted, unposted and error journals.
 Review journal activity for particular periods and balancing
segments.

OT. Other Transactions

OT.1  Commissions for agents - Sales  Commission/brokerage is paid to the brokers as per the
agreements.
 The commission/brokerage is paid on the basis of a percentage
of value sold or on the basis of a rate per unit Sold.

OT.2  Insurance Policy Alerts  The insurance policies for Chintels fixed assets need to be
tracked.
 The premiums to be paid as per due date.

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 OT.3  Statutory Payments  The statutory payments (TDS, Sales Tax, Service Tax, etc) need
to be made as per the schedule.
 The same is made either by cash or cheque or DD.

OT.4  Term Loans  Borrowing of Term loans from financial institutions, banks, for
new projects, expansions and Business Revival is taken place.

SP. Supplier Payments

SP.1  Regular Payments to Suppliers  As per the due date of the invoice, the payment proposal would be
by Cheque generated and payment needs to be made after approval by
concerned department of Chintels.
 The cheque would sent to suppliers.
 A single cheque would be printed for a group of invoices also.

SP.2  Regular Payments to suppliers  In some cases, a post-dated cheque is handed over the supplier as
by PDC payment against invoices.
 The PDC’s needs to be tracked in the system and should be
accounted on the cheque date.
 A single PDC would be printed for a group of invoices.

SP.3  Regular Payments to Suppliers  As per the due date of the invoice, the payment proposal would be
by RTGS / EFT generated and payment needs to be made after approval by
concerned.
 As agreed with the Supplier RTGS/EFT payment needs to be made
to the supplier.

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 SP.4  Advance Payments to suppliers  As per PO terms, a Pre-payment advice/instruction would be
as per PO prepared by the Purchase department and forwarded to finance
department for payment.
 The prepayment invoice needs to be entered and payment made
accordingly.
 The Pre-payment needs to be adjusted against supplier invoices
subsequently.

BT. Bank Transactions

BT.1  Interbank fund transfers  Interbank fund transfers are a routine event in all organizations.
 Collections from sales would be deposited in the respective
accounts and transfer of funds from Chintels one bank to Chintels
another bank account is necessary, in order to meet working capital
requirements and payments on liabilities.
 No Contra account required.

BT.2  Entry of Bank Statements  Chintels Banks would provide a bank statement on a paper or
electronically.
 Concerned department of Chintels take print out of the bank
statement.

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 BT.3  Reconciliation of Bank state-  Hard copy the bank statement is to be reconciled with bank book
ment with books accounts.
 Chintels concerned department perform bank reconciliation
manually.
 During reconciliation of the bank statements, some of the
transactions may not be in the accounting books, but mentioned in
bank statement or vice versa.

BT.4  Follow up with Bank/Mktg.  For the unreconciled transactions which are not available in book of
Dept for Bank transactions not accounts, the information needs to be sent to the concerned banks
accounted in books for following up on further details or with the marketing dept for
any information of customer receipts.

BT.5  Verification of Bank Interest
paid/Payable to bank
 On a periodic basis, a report need to be generated which shows the
interest paid by the bank against fixed deposits etc and the
calculation as per the interest rates.
 Any deviation needs to be highlighted.
 A report needs to be generated for interest to be paid to the bank as
per the agreed interest rates and any deviations need to be
highlighted.

Pp Process ID Process Name Process Description Remarks

CT Cash Transactions

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Pp Process ID Process Name Process Description Remarks

CT.1  Release of cash to employees &  Designated employees of Chintels and non employees would be
Non Employees A/c cash given imprest for various expenses or purchases.
Imprest  The cash would be disbursed after checking the cash imprest
balance.
 These cash imprest needs to be tracked Chintels employee wise.
 The cash advance given to non employees should not be shown as
advance payment but should be shown as employee cash imprest.
 Imprest or Advance should be accounted depot wise

CT.2  Entry of Expense Vouchers
against Cash Imprest (Corporate,
Project, Site)
 All the expense vouchers submitted by the designated Chintels
employees against cash imprest.
 Needs to be accounted after approvals of Chintels hierarchy.
 The expense vouchers or purchases need to be adjusted against the
cash imprest.

CT.3  Withdrawal of cash from bank  A cheque would be prepared with payee as Employee.
 The Employee of Chintels would withdraw the amount from the
bank and then submit the cash to the cash desk.
 The Chintels cash desk would show it as receipt from the employee.
 Routed through a contra account.

CT.4  Miscellanoeus Reciepts  The cash from various sources such as imprest returns, tickets
cancellation would be received by the Chintels cash desk from time
to time.
 The same would be accounted as cash receipts with appropriate
accounting entries.

ET. Employees Transactions

ET.1  Reimbursement of Conveyance  Conveyance allowance is reimbursed to the Chintels employee on

& Other Allowances the basis of the bills submitted and as per policy at the time of
joining.
 The Cash/Cheque/Bank transfer needs to be done for the same.
 The amount claimed as against maximum eligibility needs to be
tracked.

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Pp Process ID Process Name Process Description Remarks

ET.2  Reimbursement of medical bills  Chintels employees are entitled to medical reimbursement as per the
amount fixed by the Chintels HR department and policy.
 Chintels employees would submit their medical bills, against which
cash would be paid/cheque/bank transfer.
 The amount claimed as against maximum eligibility needs to be
tracked.

ET.3  Recoverable Loans  Loans would be given to the Chintels employees as per company
policy.
 Chintels HR department would give the Approvals after calculation.
 The same needs to be paid to the employees and recovered as per
the Chintels terms on which both parties agreed.

ET.4  Payment to employees – Travel  The Chintels employee would submit the approved travel request
advance for travel advance.
 The Travel advance would be paid to the employee by cash or
depend upon Chintels.
 The travel advances needs to be tracked for each employee of
Chintels.

ET.5  Settlement of travel expenses  Chintels Employee submits approved travel expense statement as
per company policy.
 The expenses need to be accounted and adjusted against the travel
advance taken for the tour.
 Any difference needs to be recovered or paid to the Chintels
employee.

ET.6  Petrol & Vehicle Maintenance  Some of the Chintels designated employees are entitled to fixed
Expenses for employees quantity of fuel and vehicle maintenance allowance every month.
 Chintels Employees submit the fuel bills and vehicle maintenance
bills and the same would be reimbursed in cash/credit, etc...

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Pp Process ID Process Name Process Description Remarks

ET.07  Salary Advances  Chintels provide advance salary to their employees as per Chintels
and Chintels HR policies.
 Chintels employee submits a request for advance.
 Finance (Concerned department of Chintels) checks for the existing
balances and salary levels and makes payment to the employee if
approved.
 The same would be adjusted against the salary.

CN. Customer Dr/Cr. Notes

CN.1  Generation of Interest Invoices  Interest invoices needs to be generated for the delayed payments
from the customer.
 A grace period over and above payment due date would be
considered for customers.
 The interest invoice would be generated after due approvals.
 The interest charged if from the invoice due date. Accounting done
only on receipt of cash.
 Waived off interest to be captured.

CN.2  Generation of Debit notes  A Debit note needs to be raised on customer for other services or
“Paid” freight which is not part of the sales order.

CR. Customer receipts

CR.1  Payments from Customers by  The customer payments by cheque need to be accounted.
Cheque  The payment needs to be adjusted against an invoice or multiple
invoices.
 Chintels customer also can make bulk payment against multiple
flats.
 In case of bulk payment, Chintels customer will provide remittance
or inform to Chintels concerned department that how much payment
he making for particular flat etc…

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 CR.2  Payments from Customers by  The customer payments by DD need to be accounted. If the bank
DD charges for the DD are deducted from the payment, then the same
should be accounted.
 The payment needs to be adjusted against an invoice or group of
invoices.

CR.3  Payments from customers by
availing cash discounts
 Chintels doesn’t provide any cash discount to their customers.
 Only broker can provide the discount to customer.
 After getting the discount, concerned department will raise the
invoice.
 Accordingly invoice would be generated with payment due date and
cash discount terms.

CR.4  Advance Payments from  Advance payment from the customer is received as per SO terms.
customers.  The same needs to be accounted and adjusted against future sales
invoices

CR.5  Payment from customers  Customer against the sales invoices would issue post-dated checks.
through Post dated checks  The same needs to be tracked and accounted for at time of depositing
PDC

C0. Other Customer Transactions

C0.1  Generation of reminder letters  Reminder Letters needs to be generated by Chintels Marketing Team
and sent to customers reminding the due payments.
 The Reminder letters needs to be generated taking into consideration
the grace period.
 The Interest chargeable to be displayed in the reminder letter.
 The reminder letters to be sent through email.

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 C0.2  Follow up with customer for  Chintels Marketing team would be following with customers for
payments payments.
 The follow-up history needs to be stored in the collection history of
the customer.

C0.3  Follow up for cheque bounces  If the customer checks dishonored, then the customer payments
should be reversed.
 Further notification to be sent to customer & marketing team for
follow up.

FA. Fixed Assets

FA.1  Purchase of assets  The user department gives the requirement duly approved by the
Chintels department head.
 The purchase department takes up other fixed assets directly
after the approval of the departmental head. Evaluation of
various vendors is made based on the quotation evaluation or on
information already available.
 The payment is made based on the PO terms.

FA.2  Maintenance of Assets  Additions in terms of accessories and repairs are handled based
on requests of the Chintels user department.
 This has to be approved by the Chintels departmental head.

FA.3  Depreciation entries for Assets  Chintels applies only written down value (WDV) method to
depreciate the assets.

FA.4  Capitalization of Assets  During the installation of the machinery, the machinery needs to
be shown as assets in capitalization.
 All expenses related to installation needs to be capitalized.
 Further some of the expenses and maintenance costs for the
assets are capitalized on to the fixed assets.

FA.5  Disposal of Assets  The Assets are disposed after due approvals.
 The same is shown as sale and difference between the realized
value and book value is shown as Profit/Loss.

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 FA.6  Change in Depreciation method  This decision is taken by the top management.
 Usually consistency is maintained.

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Financial Modules Covered

1) General Ledger

A general ledger is a heart of any business. A general ledger (GL) is accounting record a business uses to keep track of financial transactions. Transactions
are categorized and summarized into accounts. An account is a unique record for each type of asset, liability, equity, revenue and expense.

2) Payables

An account that consists of money that a person or company liable to pay to suppliers for their Goods and services.

3) Receivables

Accounts receivable are a legally enforceable claim for payment to a business by its customer/ clients for goods sold or services rendered in execution of the
customer’s order.

4) Fixed Assets

An asset that is not consumed or sold during the normal course of business, such as land, buildings, equipment, machinery, vehicles, and other such items.

5) Cash Management

Cash management is a process where we reconcile all the business transactions during the payment or receiving.

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Requirements Gathering Methods:

 Observation of the work environment

 Questionnaires

 Interviews

Oracle General Ledger

No Questions/Query Response Revisit

1 General

1.1 Chintels Business

1.1.1 What type of Business Chintels is in? Construction

1.1.2 What products and services do Chintels provide? Land, Building, Flats

1.1.3 Number of employees in Chintels?

1.1.4 What business areas and/or operations are targeted for improvement?

1.1.5 Which of these business areas and/or operations is high, medium and low
priority?

1.1.6 Can you provide a systems flow diagram of connectivity between your core
business applications?

1.1.7 What is Chintels organizational structure?

1.1.8 How many businesses are in Chintels?

1.1.9 What is the structure or relationships of these businesses?

1
1.1.10 On how many sites are this Chintels located? What are these sites?

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 No Questions/Query Response Revisit

1.1.11 Do all the locations have the same chart of accounts? Yes

1.1.12 Do all the locations have the same calendar? Yes

1.1.13 Do all the locations have the same functional currency? Yes

1.1.14 Do you use more than one Ledger?

1.1.15 Do all the businesses have assets? Yes

1.1.16 Are assets assigned to cost centers? Yes

1.1.17 What is your accounting calendar? Fiscal

2 Financial Management

2.1 Chart of Accounts

2.1.1 What does your current chart of accounts look like?

2.1.2 Do you plan to have a new chart of accounts? Yes

2.1.3 Are your account values in any order or range pattern?

2.1.4 What are the account parent or grandparent structures?

2.1.5 Do you use unique accounts to capture statistics?

2.2 Consolidation

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 No Questions/Query Response Revisit

2.2.1 Do you require financial consolidations? Yes

2.2.2 How often do you perform financial consolidations? Quarterly

2.2.3 What is the COA mapping during the consolidation?

2.2.4 Do you perform consolidation between various businesses that use different NA
currencies?

2.3 Currency

2.3.1 Do you use multiple currencies in your business? No

2.3.2 How many currencies do you use and what are they? 1 (INR)

2.3.3 What is your policy on changing currency rates? NA

2.3.4 What is the primary currency you have? INR

2.4 Budget Preparation

2.4.1 Does Your Company prepare budgets? Yes

2.4.2 What types of budgets do you prepare? (for example, revenue & expenses, Yes
balance sheets, capital, project, and so on). Do you do any budget allocations?

2.4.3 Do Your Company’s key performance indicators drive the budgets? Yes

2.4.4 How many budgets do you prepare for an individual fiscal year? Quarterly

2.4.5 Do you prepare more than one budget per Ledger?

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 No Questions/Query Response Revisit

2.4.6 What is the range of accounting periods for each budget?

2.4.7 At what organization level (for example, cost center, division, or region) do Yes
you budget?

2.4.8 Do budgets require approval? What levels of approvals are required? Yes, HOD and Top Management

2.4.9 How many budget "organizations" do you have (Budget Organization is an

entity, which “owns” the budget in Oracle General Ledger)?

2.4.10 Is your budgeting process centralized or decentralized? Centralized

2.4.11 Are reorganizations likely to affect how budgets should be prepared and/or
reported?

2.4.12 Do you only budget in dollars, or are statistics budgeted also (for example, No
headcount)?

2.4.13 Do you require consolidated budgets (budgeting across sets of books)? Yes

2.4.14 Are all budgets prepared in the same currency? Yes

2.4.15 Do you use Lotus, Excel, or another spreadsheet program to prepare budgets? Yes

2.4.16 How do you close or "freeze" a budget once it is approved?

2.5 Forecasting

2.5.1 Do you derive any type of forecast from budgets? Yes

2.5.2 Does Your Company prepare financial forecasts? What types of financial Yes
forecasts does Your Company prepare?

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 No Questions/Query Response Revisit

2.5.3 Is the financial forecasting process documented? No

2.6 Maintenance

2.6.1 How do you maintain your General Ledger data?

2.6.2 How do you audit your General Ledger data?

2.7 Performance Monitoring

2.7.1 How do you monitor profitability?

2.7.2 Do you monitor profitability/analysis by Organization (cost center, division, Yes

and region)?

2.7.3 Do you monitor profitability/analysis by Business Line or Function Yes

2.7.4 Do you monitor profitability/analysis by Skill/Job? Yes

2.7.5 Do you monitor profitability/analysis by Revenue Category? Yes

2.7.6 Do you monitor profitability/analysis by Activity? Yes

2.7.7 Do you monitor profitability/analysis by Employee? Yes

2.7.9 Do you use projects to track Overhead activities and/or Product Development Yes
efforts?

2.7.10 Is “activity-based costing” an issue that is important to Your Company?

2.7.11 Do you monitor profitability/analysis by Industry/Market Sector? Yes

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 No Questions/Query Response Revisit

2.7.12 Do you monitor profitability/analysis by Customer/Customer Type? Yes

2.7.13 How do you determine whether indirect labor costs, such as overhead, are
actually recovered through your billing practice?

3 Transaction Processing

3.1 General Ledger Transactions

3.1.1 Do you track journal sources? What types? Yes

3.1.2 Do you track journal categories? What ones?

3.1.3 Do you enter statistical accounts regularly? How often?

3.1.4 Do you use batches to enter journals?

3.1.5 Do you reverse journals on a regular basis? Explain. Yes

3.1.6 Do you have standard journals that recur with the same accounting information Yes
(but changing amounts)? Provide examples.

3.1.7 Do you use control totals when entering journals? Yes

3.1.8 How often do you post journals to your General Ledger balances?

3.1.9 What are the procedures you use to post these journals?

3.1.10 Who posts the journal batches? Who approves the posting?

3.1.11 Do you allow for posting out of balance journals into a suspense account?

3.1.12 Do you import journals from spreadsheets Yes

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 No Questions/Query Response Revisit

3.1.13 Do you have any input documents that you currently use?

3.1.14 Do you have any audit requirements that might be unique? Yes

4 Period Processing

4.1 Periods

4.1.1 When is the beginning of your year? 01st April-31st March

4.1.2 What is the period type? How many periods in your year? 4

4.1.3 Do all the companies have the same calendar? Explain. Yes

4.1.4 Do you have a naming convention for the periods?

4.1.5 What accounting periods are in your quarters? 4

4.2 Period Close

4.2.1 What is your period-end reconciliation process?

4.2.2 When closing at year end do you use a 13th period?

4.2.3 How do you close an accounting period?

4.2.4 Is the schedule to close an accounting period documented?

4.2.5 How long does it take to close an accounting period?

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 No Questions/Query Response Revisit

4.2.6 How are adjustments to closed periods handled?

4.2.7 Who performs the tasks associated with closing an accounting period?

4.2.8 Where in your accounting cycle do you run standard reports and statements?

4.2.9 Do sub-ledgers have their own calendar?

4.3 Period Open

4.3.1 How do you open an accounting period?

4.3.2 Is the schedule to open an accounting period documented?

4.3.3 How long does it take to open an accounting period ?

4.3.4 Who performs the tasks associated with opening an accounting period?

5 Reporting

5.1 Financial Reporting

5.1.1 Describe your Financial Reporting.

5.1.2 Provide samples of your standard financial reports - Balance Sheet, Cash Balance Sheet Received,
Flow Statement, Income/Operating Statement, Trial Balance, etc

5.1.3 How long are reports kept on-line or are they re-run if needed again?

5.1.4 Do you have online account balance lookup? If needed, which accounts and
how often?

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 No Questions/Query Response Revisit

5.1.5 Please enclose a list of all reports used in the General Ledger area. Please
annotate the report list with each report's name/number, description, the type
of users, frequency on which these reports are generated.

Oracle Payables:

No. Questions/Query Answers Revisit

1 General

1.1 Supplier Management

1.1.1 Do you have single or multiple bill-to locations?

1.1.2 What is the basis for your vendor category breakdown?

1.1.3 Do you have a single consolidated vendor list? Yes

1.1.4 Do you have vendors listed in your files multiple times?

1.1.5 How do you handle vendors with multiple addresses?

1.1.6 Do you have preferred vendors? How do you identify them?

1.1.7 How do you handle vendor numbering?

1.1.8 Do you put employees as vendors? If not, how do you pay employee
expenses?

1.1.9 Do you have a standard naming convention for vendors when the name is like
"Manu Kant"? Is it "Kant Manu" or "Manu Kant"?

1.1.10 Do you have shared vendors between companies? How many? Yes

1.1.11 What type of vendor analysis do you perform?

1.1.12 Are vendors categorized for reporting purposes?

1.1.13 Are vendors categorized for financial tracking purposes?

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 No. Questions/Query Answers Revisit

1.1.14 Is there a requirement to define vendor sites which can receive payments and
sites which cannot receive payments?

1.1.15 Who adds and maintains vendor in the system?

1.2 Employees

1.2.1 Is there a requirement to process employee expense reports? Yes

1.2.2 Is there a standard employee expense claim form?

1.2.3 What is the current process to generate expense payments to employees?

1.2.4 How frequently are employee expense claims processed?

1.2.5 How many employee expense claims are processed?

1.2.6 Are these expense claims assigned a special pay priority - high or low?
(Before/after other vendor payments for example.)

1.2.7 What is the current procedure for employee advances?

1.2.8 How are these reconciled when the expense claim is submitted?

2 Invoice Processing

2.1 Purchase Orders

2.1.1 Do you wish to prevent purchase orders being sent to Vendors that are on hold
in Accounts Payable?

2.1.2 Are there non-payment vendor sites, not defined in Accounts Payable, that
need to be defined for Purchasing to order goods/services?

2.1.2 Are the non-payment vendor sites, not defined in Accounts Payable, that need
to be defined for Purchasing, "RFQ Only" sites?

2.1.4 Are there payment terms, not defined in Accounts Payable, that need to be

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 No. Questions/Query Answers Revisit

defined for Purchasing to order goods/services?

2.1.5 Will tax names and rates, defined in Accounts Payable have to be revised in
any way?

2.2 Invoicing

2.2.1 Do you require batch control to manage invoice entry?

2.2.2 Who enters invoices and how often?

2.2.3 Do you receive invoices at a central location?

2.2.4 How do you physically store invoices once entered into the computer?

2.2.5 Are invoices billed to distinct companies, cost centers or other?

2.2.6 How many invoices per period do you enter?

2.2.7 Do you have security requirements on who can enter data (invoice processing,
payment processing, and check processing)?

2.2.8 How are invoices identified (numbered)?

2.2.9 How many liability accounts do you use?

2.2.10 Can you identify any frequently used expense distributions within your current Yes
system (for example, rent or telephone payments)?

2.2.11 Do you have any recurring invoices? Yes

2.3 Matching and Approval

2.3.1 Do you match your AP invoice with the PO's? Yes

2.3.2 How do you match purchase order information to AP invoice information?

2.3.3 How do you match vendor information to your fixed assets system when

26
 No. Questions/Query Answers Revisit

purchasing assets?

2.3.4 Is there a requirement to match invoices to related purchase orders? Yes

2.3.5 Will some invoices never have purchase orders?

2.3.6 Should invoices be matched completely, partially or both? Yes

2.3.7 Do you perform 2-, 3-, or 4-way matching of invoices?

2.3.8 Do you currently have any tolerance levels for matching? (Price Tolerance,
Quantity Ordered Tolerance, Quantity Received Tolerance, or Tax Tolerance?)

2.3.9 Would you like to approve your invoices on-line, by batch or have both Yes
options?

2.3.10 What is the internal approval process for an invoice in your organization at
present?

2.3.11 Are there situations where an invoice needs to be placed on hold and then
manually released?

2.3.12 Describe the approval process when invoices need to be placed on hold and
manually released?

2.3.13 Where an invoice needs to be placed on hold and then manually released, can
these invoices be "posted" to the General Ledger?

2.3.14 Do you accrue your receipts to the General Ledger?

3 Payment Processing

3.1 Payment Processing

3.1.1 What are the requirements for reporting tax payments?

3.1.2 How do you record taxes within the GL?

3.1.2 Is there a requirement to support multiple bank accounts?

27
 No. Questions/Query Answers Revisit

3.1.4 Is there a requirement to support foreign currency bank accounts? No

3.1.5 What disbursement (document) types are currently processed through these
bank accounts?

3.1.6 How are your current payment terms structured?

3.1.7 Do you use percentage due or amount due?

3.1.8 Are due dates calculated based on a specific day of the month or on a number
of days from the payment terms date?

3.1.9 Is there a provision for discounts within the current payment terms?

3.1.10 How are discount dates calculated - based on a specific day of the month or on
a number of days from the payment terms date?

3.1.11 Is there a requirement to use multiple discount levels at present or in the

future?

3.1.12 How many different sites issue checks?

3.1.13 How many checks do you write/produce per period?

3.1.14 Is there a requirement to use computer generated checks?

3.1.15 What is your policy to cancel checks?

3.1.16 Is there a requirement to use Electronic Funds Transfers? Yes

3.1.17 Is there a requirement to use Wire Transfers? Yes

3.1.18 Is there a requirement to process Automatic Payments? Yes

3.1.19 Is there a requirement to process Manual Payments? If so, is a separate bank Yes
account used?

3.1.20 Is there a requirement to process Partial Payments? Yes

3.1.21 Is there a requirement to process Pre-Payments? Yes

3.1.22 Is there a requirement to process Recurring Payments? Yes

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 No. Questions/Query Answers Revisit

3.1.23 Is there a requirement to process ‘Quick Checks’?

3.1.24 Do you have a priority system for payments?

3.1.25 Would you use a priority system for payments?

3.1.26 What is your current payment cycle? (How often do you print checks?)

3.1.27 If recurring payments are used, what is the normal period cycle for these
payments?

3.1.28 Are all invoices paid in local currency? Yes

3.1.29 Is/will there be a requirement to use multiple currencies? Yes

3.1.20 Do check payments have to be approved before they are run?

3.1.21 Do you have a minimum or maximum payment amount per check?

3.1.22 Do you have a minimum or maximum payment amount per run?

3.1.23 What is the current check layout for computer generated checks? How many
formats do you have?

3.1.24 Do you print the check number on the check/remittance or is it pre-printed?

3.1.25 Should a remittance advice note be produced, and when?

3.1.26 How should an overflow situation be handled?

3.1.27 Is there any special sequencing of checks when printing?

3.1.28 Is there a requirement to restrict the access to the check printing function?

3.1.29 What are the policy/procedures for handling stop payments?

3.1.30 What are the policy /procedures for handling void payments if they have been
recorded?

3.1.31 What are the policy /procedures for handling void payments if they have not
been recorded?

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 No. Questions/Query Answers Revisit

3.2 Banks/Cash Management

3.2.1 Who do you bank with? List all of your bank accounts and their purpose.

3.2.2 Describe your cash management (bank reconciliation) process

4 Period Processing

4.1 Open/Close Periods

4.1.1 How often do you "post" information to your General Ledger?

4.1.2 Do you use Cash or Accrual Based Accounting? Yes

4.1.2 Do you post (or wish to post) in detail or in summary to the General Ledger?

4.1.4 When do you start your AP close?

4.1.5 Do you have any documentation on your AP close? Please provide.

4.1.6 Do you allow posting invoices back to prior periods?

4.1.7 If you have multiple organizations, do they all close at the same time or
separately?

5 Reporting

5.1 Reporting

5.1.1 For the purpose of Invoice Aging Reports, what aging periods are currently in
use?

5.1.2 Is there a requirement to produce ‘Key Indicators’ Reports to review

productivity and pinpoint problem areas?

5.1.2 Is there a need to define any additional aging periods?

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 No. Questions/Query Answers Revisit

5.1.4 Please enclose a list of all reports used in the Accounts Payable area Please
annotate the report list with each report's name/number, description, the type of
users, frequency on which these reports are generated.

Oracle Receivables:

No. Questions Answers

1 Customer Management

1.1 Customer Information

1.1.1 Who maintains customer information?

1.1.2 Do you default other information (payment terms, tax) at the Customer Level?

1.1.2 Can this information be changed and updated at the time of invoice entry?

1.1.4 Do you have a central registry of customers which supports more than one
business units?

1.1.5 What types of customers do you have?

1.1.6 How do you group your customers for statements?

1.1.7 How do you group your customers for interest charges for late payments?

1.1.8 How do you group your customers for payment rules?

1.1.9 How many customers do you have?

1.1.10 What type of payment terms do you provide?

1.1.11 Do you provide split term payment terms?

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 No. Questions Answers

1.1.12 Do you provide discount payment terms?

1.1.13 Do you use customer agreements/contracts to manage specific price lists? Yes

1.1.14 Do you use customer agreements/contracts to manage specific discounts? Yes

1.1.15 Do you use customer agreements/contracts to manage specific payment terms? Yes

1.1.16 Do you use customer agreements/contracts to manage specific invoicing Yes

policies?

1.1.17 How do you track customer contact people?

1.1.18 Do you send customer statements?

1.1.19 Do you have multiple "remit to" addresses?

1.1.20 How are multiple "remit to" addresses determined for each customer?

1.1.21 Do terms and conditions of customer agreements and/or payment terms change
based upon the status of their accounts?

1.1.22 How do you maintain/audit your customer data?

1.1.23 Do you have a prospect system separate from the receivables customers?

1.1.24 Who has access to your customer database?

1.1.25 Do you have the same customers repeated multiple times in the data files or the
same customer for different operating units?

1.2 Sales

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 No. Questions Answers

1.2.1 How do you maintain and assign salespeople to customers?

1.2.2 Do you track Sales Territory Information?

1.2.3 How is Sales Territory Information for tracking purposes derived? (for
example, customer, salesperson, and so on)

2 Billing Process

2.1 Invoicing

2.1.1 Please describe you invoicing process.

2.1.2 How do you link the specific products/services that you sell with general
ledger accounts at invoice entry?

2.1.2 Do you regularly invoice customers for the same items?

2.1.4 Do you use standard invoice lines with default pricing and default accounting
information?

2.1.5 Do you ever use invoice forms and/or the invoice entry process for transactions
other than billing customers?

2.1.6 Do you use Customer Account Credit Memos?

2.1.7 How are Customer Account Credit Memos used? Why are Customer Account
Credit Memos used?

2.1.8 What items appear on Customer Account Credit Memos?

2.1.9 Do you enter invoices in batches? How are batch invoices defined?

33
 No. Questions Answers

2.1.10 Do you use batch controls, such as counts and amounts?

2.1.11 What are the units of measure you use when you bill customers for products
and/or services?

2.1.12 Do you require taxes to be established for use when preparing invoices?

2.1.13 Do you validate the tax rate against a Customer’s Ship To address when
preparing invoices?

2.1.14 Do you have any subsidiaries that bill customers in a foreign currency?

2.1.15 Are there any other foreign currency issues regarding invoice generation?

2.1.16 How many invoice types do you have?

2.1.17 How frequently do you invoice your customers?

2.1.18 How do you number your invoices?

2.1.19 How do you receive notice to create/generate an invoice to bill a customer?

2.2 Project Billing

2.2.1 Typically, how many project-related payments do you receive a month?

2.2.2 Do you use standard invoice lines with default accounting information?

2.2.3 Do you have any subsidiaries that bill customers in a foreign currency?

2.2.4 Are there any other foreign currency issues regarding invoices and/or
payments?

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 No. Questions Answers

3 Payment Processing

3.1 Payments

3.1.1 Describe your cash applications process.

3.1.2 Do you enter your payments in batches? How are batches identified?

3.1.2 How do your customers generally pay invoices? (Single check, single
invoice/single check, multiple invoices/multiple checks)

3.1.4 Do you use batch control counts and amounts?

3.1.5 Do you use more than one bank account and/or cash account?

3.1.6 Do you have customers who pay other customers’ invoices?

3.1.7 Do you use lockboxes?

3.1.8 How many lockboxes do you use?

3.1.9 Do you receive deposits and/or prepayments? Yes

3.1.10 Do you receive non-customer related payments?

3.1.11 How are non-customer related payments accounted for?

3.1.12 How do you handle payments without remittance information?

3.1.13 What are your policies and procedures about adjusting payments?

3.1.14 What are your policies and procedures about reversing payments?

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 No. Questions Answers

3.1.15 How many payments do you receive in a month?

3.1.16 How many checks are returned by the bank in a period?

3.1.17 What are the reasons for checks being returned by the bank?

3.1.18 Who applies cash?

3.1.19 How is cash applied?

3.1.20 Do you create charge backs (Debit Items) for customer deductions?

3.2 Collections

3.2.1 How do you enter/manage a credit amount owed to the customer by your
company?

3.2.2 How do you enter/manage a credit amount owed to your company by the
customer

3.2.3 What does your aging look like?

3.2.4 Do you send dunning letters to customers? Yes, Marketing Team

3.2.5 Do collectors actively call customers on delinquent items? Marketing Team

3.2.6 What is the process for tracking actions to collect on delinquent accounts?

3.2.7 Is the process for tracking actions to collect on delinquent accounts automated?

3.2.8 Do terms and conditions of customer agreements and/or payment terms change
based upon the status of their accounts?

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 No. Questions Answers

3.2.9 Do you monitor performance of your collectors? Yes

3.2.10 What metrics are used to monitor collections performance?

3.2.11 Do you do cash-flow requirements forecasting?

3.3 Reconciliation

3.3.1 Do you reconcile payments with the bank? Yes

3.3.2 How do you reconcile payments with the bank? Manually

3.3.3 How often do you reconcile payments with the bank? Daily

3.3.4 How is bank reconciliation errors handled?

4.0 Accounting and Period End Processing

4.1 Revenue

4.1.1 Do you ever recognize revenue from a single transaction over multiple
periods?

4.1.2 When do you recognize revenue?

4.1.2 How many General Ledger revenue accounts do you distribute to?

4.1.4 When do you create or recognize outstanding receivables?

4.1.5 Do you distribute earned and unearned revenue? What are the GL accounts?

37
 No. Questions Answers

4.1.6 Do you have unbilled receivables?

4.1.7 Is revenue assignment associated with sales people information?

4.1.8 Do you assign non-revenue credit to sales people?

4.1.9 Do you have special revenue recognition for long-term agreements?

4.2 Period Close

4.2.1 What is the process to open and close AR periods?

4.2.2 How are adjustments to closed periods handled?

5 Reporting

5.1 Reporting

Please enclose a list of all reports used in the Account Receivable area Please
annotate the report list with each report's name/number, description, the type of
users, frequency on which these reports are generated.

38
Oracle Fixed Asset

No. Questions Answers Revisit

1 Asset Setup

1.1 General

1.1.1 What system do you use presently to do your Fixed Assets? Yes

1.1.2 What systems do you use to track and inventory your fixed assets?

1.1.2 Does your current system track asset possession by employee,

department, or cost center?

1.1.4 What property types do you use (Personal 1245, Real 1250, and so on)

1.1.5 How many different companies in your organization own fixed assets?

1.1.6 In what countries are your fixed assets located? India

1.1.7 Who tracks financial and tax information in each country?

1.1.8 Explain the accounting structure and reporting methods used to

consolidate your asset cost and depreciation expenses?

1.1.9 Do you post your asset financial information in summary or detail to your
general ledger?

1.1.10 How many corporate depreciation books do you maintain? If more than
one, why?

1.1.11 How many different tax depreciation books do you maintain in each of
your companies? How are they used?

1.1.12 Do you adjust depreciation in your tax books? Yes

39
 No. Questions Answers Revisit

1.1.13 Do you maintain any other types of depreciation or asset valuation books? WDV

1.1.14 What are your capital budgeting requirements?

1.1.15 How often do you calculate depreciation for corporate accounting, tax,
and capital budgeting purposes?

1.1.16 How many fixed assets do Chintels own? How are they numbered?

1.1.17 Do you need to track fixed assets that are not depreciated? What is your
expense/depreciation limit?

1.1.18 Do you track different information for different types of fixed assets?

1.1.19 What basic information about each asset do you store?

1.1.20 How do you number your fixed assets?

1.1.21 Do you have physical tags on your fixed assets?

1.1.22 Do you track leased assets?

1.1.23 What is your oldest date placed in service for your fixed assets?

1.1.24 Do you have standard depreciation methods for your fixed assets?

1.1.25 Do you associate your fixed assets with vendors?

1.1.26 Do you use multiple currencies when purchasing, depreciating, reporting

or posting financial information about your fixed assets?

1.1.27 Where are your fixed assets located?

1.1.28 How do you report property values for tax purposes?

40
 No. Questions Answers Revisit

1.1.29 Do you have special names for each location (aliases)?

1.2 Security

1.2.1 Do you have security requirements on who can enter data for Fixed
Assets? (for example, by company? by cost center?)

1.2.2 Do you have security reports on who can run Fixed Assets reports? (by
company, by cost center, and so on)

1.2 Asset Categories

1.2.1 How do you categorize your fixed assets now?

1.2.2 Are your asset categories unique for each combination of asset cost
account in your general ledger, depreciation method, useful life and
prorate convention?

1.2.3 Are fixed assets which use the same asset account in your general ledger,
ever split into more than one group for accounting or tax depreciation
purposes?

1.2.4 Do you group fixed assets which use different asset accounts for reporting
purposes?

1.2.5 Do you have a special name (alias) for each category?

1.4 Other

1.4.1 Which operations/processes do you want to streamline for Fixed Assets?

41
 No. Questions Answers Revisit

1.4.2 Which operations/processes do you want to eliminate for Fixed Assets?

1.4.3 Are there any time-intensive Fixed Assets operations/processes that need
to be addressed?

2 Transaction Processing

2.1 Data Conversion

2.1.1 How is your corporate and tax information stored now?

2.1.2 Do you have your location information in electronic form?

2.1.2 What systems are you using to store asset, vendor, employee and location
information now?

2.1.4 What is the current accuracy of your asset information?

2.2 Transactions

2.2.1 How many fixed assets do you purchase each accounting period?

2.2.2 How often do you transfer large numbers of fixed assets from one person,
cost center, or location to another?

2.2.3 How often, and for what reasons, do you change fixed asset depreciation
method or life for a single asset?

2.2.4 How often do you change the useful life, depreciation method, or prorate
convention of all fixed assets in a category?

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 No. Questions Answers Revisit

2.2.5 How many retirements do you do per period?

2.2.6 Do you amortize adjustments made in the prior period over the remaining
useful life of the asset or do you expense the catch- up depreciation in the
current period?

2.2.7 Do you want your fixed assets automatically added from your feeder
Accounts Payable system?

2.2.8 Do you ever retire fixed assets in the same period they were purchased?

2.2.9 How often do you perform physical inventories of your fixed assets?

2.2.10 Do you cycle count your assets?

3 Depreciation and Period-End Processing

3.1 Depreciation

3.1.1 What are your prorate conventions?

3.1.2 What are your depreciation methods? Written Down Value

3.1.2 What are your useful lives?

3.1.4 How do you account for prior period additions, retirements or other
transactions in your general ledger?

3.1.5 Do you use ITC for any fixed assets still in service?

3.1.6 Do you depreciate leased items, or leasehold improvements?

3.1.7 Does any department or departments receive the depreciation expense for
assets used by another department? If so, do these expenses eventually

43
 No. Questions Answers Revisit
get redistributed to asset users?

3.2 Period Close

3.2.1 How do you close an accounting period for Fixed Assets?

3.2.2 Is the schedule to close an accounting period for Fixed Assets

documented?

3.2.3 How long does it take to close an accounting period for Fixed Assets?

3.2.4 Is closing an accounting period for Fixed Assets a hard close or a soft
close?

3.2.5 How are adjustments to closed periods for Fixed Assets handled?

4 Reporting

4.1 Asset Reporting

4.1.1 What are your monthly reporting requirements?

4.1.2 What business performance statistics do you monitor for Fixed Assets?

4.1.2 What are your Fixed Assets reporting requirements with respect to
functional vs. foreign currencies?

4.1.4 What are your Fixed Assets reporting requirements with respect to
summary or detail formats?

4.1.5 What reports do you currently generate to meet your Fixed Assets
reporting requirements? Provide examples of each. Include source (could

44
 No. Questions Answers Revisit
be manual), user, frequency, or number of copies.

4.1.6 Is there any Fixed Assets reporting requirement that your current set of
reports does not meet?

4.1.7 Are Fixed Assets reports standard across multiple Sets of Books, for
example, subsidiaries?

4.1.8 Are Fixed Assets reports standard across multiple levels within a Ledger,
for example, divisions?

4.1.9 What account codes and/or descriptions are required on Fixed Assets
reports?

4.1.10 What Fixed Assets reports are grouped together on a regular basis and
printed in one print run?

45
Assets Management

1) Addition
2) Adjustments
3) Transfers
4) Reclassifications
5) Retirements
6) Reinstatements
7) Revaluation
8) Transfer
9) Changes
10) Construction in Process
11) Inquiry

46
Accounts Payables

1) Create invoice in AP based on Receipt order (Purchase Order)

2) Validate Invoice (Hard Copy)
3) Post Invoice
4) Payment of the Invoice
5) Adjustments
6) Reconciliation

47
Accounts Receivable

1) Entering Booking Note

2) Booking Sales
3) Acknowledgement
4) Confirm
5) Create Invoice in AR
6) Post Invoice
7) Create Receipts
8) Transfer to GL

48
Receivable Process Flow

Entering
Booking Sales Acknowledgement Confirm
Booking Note

Create Receipts Post Invoice Create Invoice

Transfer To GL

49
Payable Process Flow

Post Invoices and Payments

Validate Reconcile
Invoice Payments
Enter Invoice Pay Invoices

Adjustments (Prepayments)

50
Fixed Assets Process Flow

Create Assets Master Post to Fixed

Records and Verify Assets
Depreciation
Information Enter Payables Voucher
for New Assets

Compute
Depreciation

Fixed Assets
Annual Assets Assets Transfer Post to GL
Balance Sheet

Assets Split

Assets Disposal General Ledger

51
Annexure

Sl No Annexure Reference Number Description/Purpose Remarks

1 Annexure A PROPOSED CHART OF ACCOUNTS

Proposed Chart of
Accounts.xls
2 Annexure B FINANCIAL ACCOUNTING PROCESS

Financials Accounting
Process.docx
3 Annexure C Process Flow

Process Flow.docx

52