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SAP-TO BE Process

New Allenberrry Works


FICO NAW
Finance and Controlling
Version 1.0
28.09.2006

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
Bills of Exchange......................................................................................................................................3
1. AS IS Process........................................................................................................................................4
2. Core to Be Process..........................................................................................................................6
Changes to Existing Organization..........................................................................................................................7
Description of Improvements and Key Metrics.......................................................................................................7
Notes on Further Improvements.............................................................................................................................8
Functional Deficit and Method to Remove That......................................................................................................8
Interface Requirement............................................................................................................................................8
System Configuration Considerations....................................................................................................................8
File Conversion Considerations..............................................................................................................................8
Any reports required related to current business process......................................................................................8
Any document/output would be printed for this business process..........................................................................8
Authorization Considerations..................................................................................................................................8
End User Training Requirements............................................................................................................................9

A. SAP Standard Reports.................................................................................................................10


B. Custom Developments.................................................................................................................11

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SAP-TO BE Process

Bills of Exchange/Hundi

TO-BE Document

For SAP R/3 Implementation at New Allenberry Works

Date: 28.09 2006

Sr. No of TO BE document 18

Ref. Sr. No. Of AS-IS document

Name of Business Process: Bills of Exchange

Module: Finance Sub module: Accounts Payable/Accounts


Receivable

Version no of document: Date: 28.09.2006

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 Change Prepared By Date

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SAP-TO BE Process

1. AS IS Process

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SAP-TO BE Process

A. Bills/Hundi Receivable

i. Sale Entry

Customer A/c Dr.

To Sales A/c

ii. Sending of Hundi by NAW Fbd or Acceptance of Hundi by the customer

No Entry

ii. On discounting of bill of exchange/ with Bank:

Bank A/c Dr.

Bank Charges (Discounting) Dr.

To Customer A/c

NAW Fbd discounts all the bills receivable. In respect of export sales usually NAW Fbd doesnt receive any
Hundi as sales realization.

B. Bills/Hundi Payable

a. Purchase

Dr Purchases

Cr. Vendor

b. At the time of receipt of hundi from vendor for acceptance or at the time of acceptance by NAW Fbd

No Entry

c. Payment At the time of due date

Dr Vendor

Dr. Bank Charges

Cr. Bank

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SAP-TO BE Process

2. Core to Be Process
Bill of Exchange is the negotiable instrument, accepted by the payer as a guarantee against the
amount payable. Bill of exchange can be discounted with bank and on the due date, payer is bound to
pay the money to the banker. If he fails to pay the money then the person who discounted the bill is
liable to pay money to the banker. Bills of exchange are handled by special G/L method in SAP.
Bill of Exchange- Payable

When the Goods are received, and MIGO is done, the system will pass the entry debiting raw material Domestic
account & crediting GR/IR clearing Account. When the Purchase order is raised, and Invoice Verification for a vendor
is done with Document Type RE, the system will Credit the Vendor and Debit the GR/IR Clearing Account.

The Entries passed by the system for Bills payable are:-

F-42/F-51
When B/E is accepted by us- Transaction code F-42 will be used. The posting key 28 on vendor (normal transaction)
and Posting Key 39 and special transaction type s (special GL Transaction) would be used.

Vendor (Normal) Dr.


To Vendor (Special GL) Cr.

When the amount has to paid to the Bank, the transaction F-40 has to be done, with special GL indicator s the
vendor liability would be cleared off, to the outgoing cheques clearing account.

F-40

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SAP-TO BE Process

Vendor (Special GL) Dr.


To Outgoing Cheques Clearing Account Cr.

The Transaction code F-51 could also be used in place of F-42, where by the clearing will also take place
automatically.

The Open line items on a vendor could be seen through FBL1N by ticking the Special GL transactions.

Bill of Exchange- Receivable

After Sales, agreed portion of liability is transferred to Financier account. On acceptance of bill of
exchange by the financier, Transaction Code F-36 is to debit the financier account (Special GL) and
credit the financier (normal) account. Posting key 09 is used to debit financier account with Special
GL indicator. Special GL indicator W would be used for this purpose. Transaction Code F-33 is used
to discount the BOE receivable with bank, which will debit the Bank A/c, Bill discounting and other
charges and Credit the BOE bank sub-account for the contingent liability. The following accounting
entries are passed:
Bills
On acceptance of BOE by customer (F-36)

Customer A/c (Special GL W) Dr.


To Customer A/c (Normal)
Discounting BOE with Banker (F-33)

Bank A/c Dr.


Bill Discounting/Other charges A/c Dr.

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SAP-TO BE Process

To BOE Liability (Bank Sub-A/c)

Reversal of Contingent Liability on the maturity date(F-20)


BOE Liability (Bank Sub-A/c) Dr.
To Customer A/c (Special GL W)
The mapping of Post Date Cheques business process in SAP will be decided during the progress of
the project.

Further Notes

Changes to Existing Organization


- . Bill of Exchange receivable is accounted as soon as the same is accepted by the
Customer.

- The process will result in the operational convenience.

- Needed to create Bills payable, Bills receivable and Contingent liability Account

Description of Improvements and Key Metrics


Bill of Exchange receivable and Contingent liability information is available on line.

Notes on Further Improvements


NA

Functional Deficit and Method to Remove That


NA

Interface Requirement
NA

System Configuration Considerations


NA

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SAP-TO BE Process

File Conversion Considerations


NA

Any reports required related to current business process


NA

Any document/output would be printed for this business process

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.:

Business User Segments Number of Type of Transaction Geographical


Users Location

Business Manager Display, Reports

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SAP-TO BE Process

Business User Segments Number of Type of Transaction Geographical


Users Location

Operations Manager Change, Display,


Reports

Transaction Owners Create, Display, Reports

Sign-off (Approval) for this document:

Name of Team members: Organization / Bus. Unit Signature

FI/CO Consultant- Vinod Atmakuri Caritor Inc

Business Process Owners-C.M New Allenberry Works


Duggar

Key User-Balbir Khanna New Allenberry Works

Key User-Vishal Sharma New Allenberry Works

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SAP-TO BE Process

A. SAP Standard Reports


<E.g.:

SAP Standard Reports

Sl No: Report Description Selection Criteria Output

01 Bills of Exchange List F_76 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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