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This document is is consolidated out of actual live implementation scenarios

at Virgo Engineers Ltd.

Broad Business Scenarios

1. Sales Cycle (Using Sales Order Type sequence)

* Standard
* With PCF

2. Planning Cycle

* PRP

3. Purchase Cycle (Using Purchase Order Type sequence)

* Inquiries
* PRP Indents
* Manual Purchase Orders
* Sub-contracting

4. Production Cycle

* In-house Production (Including shifting of Production Planning)


* Sub-contracting
* Re-work Orders
* Change in Routing Sequence

5. Stores

* Production Receipts
* Production Issues
* Material Receipts
* Material Rejects
* Indenting for C-Class Items

The relevant scenarios would include the respective Finance and Localization
effects.

Business Scenarios for Production(Shop Floor)


Sr
Scenarios
Implication
BaaN Procedure
Remarks
1.
Simple Production Procedure
* Production order for a manufactured item generated & transferred through MPS,
MRP,PRP,INV and created manually
* Routing is fixed and all operations are done in house
* No changes in delivery date i.e. start and finish date of the order.
* No part delivery
* No rejection
* No change in material requirement as per BOM.
* No change in order quantity
1. Maintain Production Orders.
2. Print Order Documents

3. Release Production Orders

4. Enter Material Issue for


Production Orders

5. Issue Inventory

6. Report Operations Completed Or Enter Hours Accounting

7. Report Production Orders Completed Or Report Order Completed Globally

8. Close Production orders

* Step 2 is necessary only if it is set as mandatory in SFC Parameters.


* Enter Hours Accounting is a session in Hours Accounting-Maintenance
* Maintain Production Planning session can be consulted at any point in time to
track the
progress of the order for operations
* There will be two sessions "Enter Material Issue for Production Orders" & "Issue
Inventory"
after step 3 to issue material for the order.
2.
Production Order procedure with changes at the planned stage
* Changing the routing attached to the item
* Changing the order quantity.
* Changing the start and delivery dates.
* Change in capacity requirements
* Sequence is same as above
* Change the quantity, routing, and start and delivery in the session "Maintain
Production
Orders"
3.
Production Order procedure with changes after releasing the order to shop floor

* Changing the quantity ordered and the start and delivery dates, before starting
any operation.

This situation arises after step 3 in the sequence as above. This can be done in
two ways.

* "Maintain Production Order"-Change the quantity and dates in the session


"Maintain Production
Orders"
* "Shift Production Planning"- shift the whole order/s to the desired date after
changing the
quantity.
* Change the quantity and dates in the session "Maintain Production Orders" and say
"yes" when
the message " Set status to Print Modified Documents" comes while saving the data.
* The second option is useful while rescheduling a whole range of orders.
4.
Production procedure with changes in routing after the order has been
released/operation has
started.
* After the order is released the routing needs to be changed.
* After some operation has been done on that order the routing i.e. the work
center, machine,
or set up/run times need to be changed because of breakdown of machine or overload
or man power
shortage etc.
* The sequence will be same as above but only Maintain Production Planning session
has to be
invoked either after step 3 or step 6
* The task, work center, machine can be changed in the corresponding fields. An
operation can
be removed or added in the routing sequence in this way.

* If routing sheet is required to be printed again to reflect these changes then it


can be
done through session "Print Order Documents" by printing "Duplicates"
5.
Production procedure with rescheduling of remaining operations when some operations
have
already been completed.
* Shifting the planning of a production order.
This situation arises after reaching step 6 in the sequence described above. There
are two ways
to do it.
* "Maintain Production Planning "- change the date and day percentage in the field
"Start
Remainder".
* "Shift Production Planning "- specify the order/orders and the date to which the
planning
is shifted to and the operations which are not started yet will be shifted.
* Whether the preceding operation and the succeeding operations will be shifted or
not depends
on the setting of the fields "Moving Method of Previous Operation" & "Moving Method
of Next
Operation"
6.
Production procedure when the material requirement for the order is changed.
* Changing the material/component needed for one order as given by the standard
material
requirement based on the BOM.

* The change should affect the order only, not the BOM
This has to be done through the session-

* "Maintain Estimated Materials"- change the quantity in the field "Net Quantity"
for an
item in a particular position in the BOM.
* This session can be invoked at any point in the procedure after an order is
planned, if
the material has not been issued.
7.

Production procedure with unplanned partial delivery/completion of the order


quantity

* Initially it was planned that the full quantity would be completed at one go but
after the
material has been issued and manufacturing has started it is felt that due to
backlog of
priority orders or due to overload of machines only partial delivery would be
possible for
the time being.
* Partial delivery is done in the same way for subcontracting
The sequence would be same but there would be change in quantity completed for each
operation
in the session: -
* " Report Operations Completed "- Enter in the field "Completed" the quantity and
save but
do not set operation "Completed" as "Yes"
* Do this for all the operations in the routing
* "Report Production Orders Completed"- in this session say "Report Complete" but
do not
set "Order Completed" as "Yes" .Then-
* "Post to Inventory"- say "Yes" to update the FG inventory.
Next time while completing the rest of the quantity :-
* "Report Operations Completed"- for each operation enter the full order quantity
not the
rest, in the field quantity "Complete", and set operation "Completed" as "yes"
* Finally "Report Production Orders Completed" with "order completed" as 'yes'.
* E.g. production Order Quantity = 10

* Initial part delivery = 5

* So while completing the final 5 quantity enter "10" in the field quantity
"Completed" in the session "Report Operations Completed"

* But while reporting the order complete it will show 5 only, in the field
"Quantity to Deliver"

* Even after completion of part quantity the task or work center can be changed
through the session "Maintain Production Planning"

Business Scenarios for Production(Shop Floor)


Sr
Scenarios
Implication
BaaN Procedure
Remarks
8.

Production procedure with planned partial delivery

* Partial delivery is planned at the planning stage or after releasing the order.
* Part material is issued for the order.

* Partial delivery for subcontracting will be done in the same way


* Set the flag "Partial Delivery" as 'yes' in the session " Maintain Production
Orders"
* Complete the quantity following the procedure same as unplanned partial delivery.

* Then the quantity 'Planned' becomes zero in sessions "Report Operations


Completed" and "Report Production Orders Completed".
* Next time when completing the rest quantity enter only the quantity for final
delivery in the field "Completed" in "Report Operations Completed" session.
* Taking the same example: So while completing the final 5 quantity enter "5" in
the field quantity "Completed" in the session "Report Operations Completed".
* The fields 'Quantity Current Planning' in the session "Maintain Production
Orders" and 'Planned' in the session "Report Operations Completed" will show only
the quantity to be partially delivered.
* On completion of the initial delivery the field 'Compl. Previous Delivery ' in
the session "Report Operations Completed" will show the first delivery quantity.
9.

Production procedure with planned subcontracting

* The operation is planned at a subcontracting work center defined in the routing.

1. Maintain Production Orders


2. Print Order Documents & Release Order
3. Enter material Issue for Production Orders
4. Issue Inventory
5. Report Operations Completed
6. Generate Subcontracting Orders
7. Report Operations Completed
8. Enter Hours Accounting
9. Report Production Order Completed
10. Close Production Orders
* The subcontracted operation can be the first one in a production order or any
following operation. If it is the first one then the step 5 in the sequence is not
necessary.

* Before reporting the operation completed for the particular subcontracted


operation in step 7 an entire range of steps have to be completed in Purchase
Control as per the purchase cycle.

Business Scenarios for Production(Shop Floor)


Sr
Scenarios
Implication
BaaN Procedure
Remarks

10.

Production procedure with unplanned subcontracting

* The routing do not have any subcontracted operation


* The need for subcontracting arises only after the order goes into production,
when some in house work center gets overloaded or breaks down.
1. Maintain Production Orders

2. Print Order Documents & Release Order

3. Enter material Issue for Production Orders

4. Issue Inventory

5. Report Operations Completed


6. Subcontract Operations

7. Generate Subcontracting Orders

8. Report Operations Completed

9. Enter Hours Accounting

10. Report Production Order Completed

11. Close Production Orders

* Step 6 is used to shift the planning of the operation to a subcontracting work


center.

Business Scenarios for Production(Shop Floor)


Sr
Scenarios
Implication
BaaN Procedure
Remarks

11.

Production procedure with rejection & issue of extra material


* Material gets rejected in process that can't be reworked, so more material has to
be issued and operations done again.
* The procedure would be same as simple production procedure, only that some
material would be rejected in the step 6 and after completing the production of the
rest of the quantity, more material have to be issued. So step 4 to step 7 would be
repeated again to manufacture the rejected quantity.
* Enter the rejected quantity in the field 'Rejected' in the session "Report
Operations Completed". But set the flag operation 'Completed' as 'No'.
* Complete all follow up operations for the accepted quantity & 'Report Complete'
in the session "Report Production Order Completed".
* In the session "Enter material Issue for Production Orders", enter the quantity
to be issued again, in the field "Subsequent Delivery". In "special" click on
'Transfer subsequent delivery to issue' and finally 'Issue Stock'
* Repeat the cycle till order is completed & closed
* While reporting the operation completed for the subsequent material enter the
full order quantity in the field 'Completed' in session "Report Operations
Completed".
Business Scenarios for Production (Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks

12.

Production procedure with rework

* Finished goods are rejected at the final inspection after all operations have
been completed.
* The rejected items can be reworked
1. Maintain Production Orders
2. Print Order Documents & Release Order
3. Enter Material Issue for Production Orders
4. Issue Inventory
5. Enter Hours Accounting
6. Report Production Order Completed
7. Close Production Orders

* In the session "Maintain Production Orders" set the flag 'Rework Order' as 'yes'

* While issuing material in step 3 the finished good would be issued.


* There would be no operations planned even though a routing may be selected in
step 1.
* The order would not be shown in "Maintain Production Planning"
* The operations that would be done have to be reported through "Enter Hours
Accounting"

13.

Production procedure
when some operation is completed and a component has to be replaced

* Change of component in BOM and replacing it with another, while returning the
original to stores.

1. Maintain Production Planning:

2. Report Operation Completed:


3. Enter Material issue for Production Orders: Issue Stock
4. Maintain Estimated Materials
5. Enter Material issue for Production Orders: Issue Stock
6. Report Operations Completed:

* Enter a new operation to disassemble the component if it has already been fitted
to the assembly and insert the operations again to be done on the new component.
* Disassemble the old component
* Return the old item by negative issue

* Insert the new component required


* Issue the new component

* Complete the rest of the operations and proceed as per standard procedure

Business Scenarios for Production (Shop Floor)


Sr
Scenarios
Implication
BaaN Procedure
Remarks
14.

Production procedure
involving cancellation of order

* A production order may be cancelled due to various reasons like cancellation or


postponement of a sales order (work order).
* There may arise basically three possibilities:
1. Cancellation at the planning stage.
2. Cancellation after releasing the production order to the shop floor.
3. Cancellation after issuing material for an order but before any operation has
been done.

1. Cancellation at the planning stage:

* A production order can be cancelled when its status is 'planned' or 'documents


printed' in the session "Maintain Production Orders" by choosing "Delete Records"
option.
2. Cancellation after releasing the production order to the shop floor:

* This can be done through the session "Cancel Production Orders"

3. Cancellation after issuing material for an order but before any operation has
been done:
* Same as 2

* A production order in which any operation has been completed can not be cancelled

Business Scenarios for Production (Shop Floor)


Sr
Scenarios
Implication
BaaN Procedure
Remarks

15.

Production procedure
when all operation have been completed and the finished item has to be disassembled
and returned to stores.

* The work order/customer order is on hold or the order is cancelled.


16.

Production procedure when excess material has been issued

* Operation has started and some material is found to be extra and has to be
returned to the stores.

* Enter Material Issue for Production Orders:


Enter a negative quantity for 'issue' and Issue Stock.

17.

Production procedure when rework has to be done in between operations and the
reworked material has to again go back to initial operation sequence.

* E.g. first two operations have been completed and a rework operation is needed at
this stage like 'welding'and the reworked material has to be again processed
according to the specified routing.

Business Scenarios for Production (Shop Floor)


Sr
Scenarios
Implication
BaaN Procedure
Remarks

18.

Production procedure
when a new component has to be added after the assembly of the end item has been
done.

* This addition is not to affect the BOM

1. Maintain Estimated Material:


Insert the new item required and its quantity.
2. Enter Material Issue for Production Orders: Issue Stock
Issue the material
3. Maintain Production Planning:
Insert an operation with the work center and related production data.
4. Follow the standard procedure of reporting operation completed etc.
* A new operation has to be attached because all the operations have been already
completed.

This document finalised by: MCS - SS, SVR

Virgo- RSK, Raghu

This Document Prepared for:

Stores Scenario

Date: 13th January 1999

These Stores Scenarios are developed for Simulation I.

1. Material Receipt

1.1 Receipt of raw material according to a purchase order, Full quantity / Part
quantity
1.2 Free receipts as samples
1.3 Reject material from customer
1.4 Receipts from sub-contractors
1.5 Receipts from sub-contractors without any operation
1.6 Receipts from sub-contractors with only some operations done on casting
1.7 Material receipt of material taken on deposits (e.g. Gas cylinder.)
1.8 Material receipt of finished and semi-finished components from shop floor
1.9 Material receipt of excess material / valve returned from assembly

2. Material Issue to production

2.1. Material issue of full quantity.


2.2. Material Issue of part quantity.
2.3. Material Issue to sub-contractors.
2.4. Issue of consumables.
2.5. Issue of material on returnable basis (e.g. Gauges, Tools, and Jigs.)
2.6. Material issue to assembly

3. Material accounting with conversion factors

1.1 Following example should be taken

* Material bought in Kg
* Issued in metres
* Stored in metres
* Received from subcontractor in pcs

4. Material issued to sub-contractor for assembly/operations.

1.1 Material issued is as following


* Plate, Pipe and Bar
* Received as Finished Component (e.g. Jig)

5. Material despatch

1.1 Finished products


1.2 Spares
1.3 Free Issue of Finished Goods / SparesFree issue of Finished Goods as samples

6. Display of Inventory from Raw Material stage to Finished Goods Stage.

7. Ordering of Tools / SIC items

1.1 Ordering of tools


1.2 Ordering of min/max level items.

8. Inter-company Material transfers

1.1 Issue of items such as grease/oil from one division to another


1.2 Material accounting for items sent on returnable basis.
1.3 Administrative material sent from one division to another.

9. Reports

9.1. Item group wise ware house inventory enquiry and reports
9.2. Date wise, supplier wise, item wise, item receipt report

???

1/1

Purchase Scenarios

Date: 11th January 1999

These Purchase Scenarios are developed for Simulation I.

1. Plain Purchase Cycle:

1.1. Raising Enquiry


1.2. Receiving offers
1.3. Comparing Offers
1.4. Placing Order on one of the suppliers

2. Purchase Cycle from Purchase Contract:

2.1. Maintain Contracts with Suppliers


2.2. Place Purchase Orders based on the contract

3. Amendment of existing Purchase Orders:

3.1. Amendment in quantity ordered


3.2. Change in the rate
3.3. Change in Terms of Payment
3.4. Change in Terms of Delivery
3.5. Change in Engineering revision (not to be covered in SIM I)
3.6. Adding services like radiography, third party inspection charges etc.
3.7. Total order being cancelled

4. Order Placement for items under development:

4.1. For valves under development, the weight of the castings is not known exactly.
How is the scenario handled when the weight of the casting is not known and the
order is placed on imperical basis. The final weight of the casting is known latter
and the payment is done accordingly

5. Handling of Back Orders (Pending Orders)

6. Placement of Repeat Orders (How to copy Orders)

6.1. This will primarily entail the procedure for copying the Purchase Orders from
other POs.

7. Handling of Free Issue Items given to Our Suppliers

8. Handling of Annual Contracts:

8.1. This will consist of handling of Annual Maintenance Contracts like those of
Computers, Garden Maintenance, Genset maintenance, etc.

9. Purchase of Assets:

9.1. The purchase of assets will be demonstrated.

9.2. Whenever some material is used in manufacturing of an asset (like Jigs and
Fixtures) which is also used for the manufacturing of end products, the procedure
for the same apportioning the raw material will be demonstrated.

10. Purchase of Tools and Inserts (Stores Items on mini - max level):

10.1. Low value Items like tools, inserts, cotton waste bought on Statistical
Inventory Control (SIC) will be created and POs for the same will be generated.

???
1/1

Sr.

BaaN Procedure

Implication

Remarks

Scenario I : Planning through MPS ( For standard end items which are defined as
'MPS' items and do not require tracking)

1.

Maintain Plan Code

* Define the actual and simulation plan codes

* The plan data like plan level, rolling frequency etc are define for a plan code
* Plan level set as 1
* One of the plan codes so defined will be set as 'actual plan code' in "Maintain
MPS Parameters"

2.

Maintain Plan Periods

* Define the periods into which the planning horizon will be divided

3.

Maintain Plan Items

* Define the MPS item as a plan item for a particular plan code

* The plan item data like forecast method, time fence etc are defined here.

4.

a) Generate Bill of Critical Capacities


b) Generate Bill of Critical Materials

* This will create bill of critical capacities/materials based on the setting of


the fields 'Critical in MPS' in the item and work center data

* The components of the MPS item which are defined as 'Critical in MPS' in
"Maintain Item Data" will automatically be updated in the bill of critical
materials
* Similarly the work centers which are utilised in the routing of that item and are
set as 'Critical in MPS' in "Maintain Work Center" will automatically be updated in
the bill of critical capacities
Sr.

BaaN Procedure

Implication

Remarks

Scenario I : Planning through MPS ( For standard end items which are defined as
'MPS' items and do not require tracking)

5.

Maintain Master Production Schedule:


Generate MPS

* Generate the MPS for actual plan code and the simulation codes
* The MPS for the simulation codes will show no customer order/forecast and will
only show the time buckets created

* Setting of the MPS control field for this run would be: "Aggregate MPS Data" as
'Yes'
* This will create the time buckets and will aggregate the demand for that item
wherever from it would be coming
* After this the demand forecast if any and the actual customer orders entered by
sales would be updated in the MPS

6.

Maintain Master Production Schedule:


Copy MPS

* Copy the actual MPS to the simulation codes defined before for what-if analysis

7.

Maintain Master Production Schedule:


Generate MPS

* This MPS run will create planned MPS production orders required to meet the
demand
* The rough capacity & material planning will be done

* The setting of the MPS control fields for this run will be as follows:
* Generate Production Plan - Yes
* Generate MPS within time fence - Yes
* Aggregate MPS Data - Yes
* Generate Rough Material Requirement - Yes
* Generate Rough Capacity Requirement - Yes

Sr.

BaaN Procedure
Implication

Remarks

Scenario I : Planning through MPS ( For standard end items which are defined as
'MPS' items and do not require tracking)

8.

Display Rough Capacity Requirements


Display Rough Material Requirements
Display Graph of Rough Capacity Utilisation

* Review the rough capacity and material requirements to fulfill the simulated
plans.
* Review the capacity utilisation in critical work centers

9.

Print Master Production Schedule Comparison

* Compare the simulated plans on the basis of the RCCP done before

* If the plans are not feasible, then either change the routing of the item so that
the extra capacity can be hired from subcontractors or if material required is not
available then negotiate with short lead time suppliers and run MPS again ( go back
to step 7)
Or
* If any of the plan is found to be feasible then incorporate that plan in the
actual plan code
Or
* If the MPS is still not feasible enough to meet the delivery date as per the
customer order then renegotiations for new dates can be explored with the customer.

Sr.

BaaN Procedure

Implication

Remarks

Scenario I : Planning through MPS ( For standard end items which are defined as
'MPS' items and do not require tracking)

10.

Maintain Master Production Schedule:


Generate MPS

* Run MPS for the finalised plan under the actual plan code
* This will create actual planned MPS production and purchase orders

* The setting of the MPS control fields will be as follows:


* Generate Production Plan - Yes
* Generate MPS within Time Fence - Yes
* Aggregate MPS Data - Yes
* Generate Rough Material Requirement - Yes
* Generate Rough Capacity Requirement - Yes
* Generate Planned MPS Orders - Yes

11.

Generate Planned MRP Orders

* This will create planned MRP production and purchase orders for all the
components of the MPS item which are defined as MRP

* This step is not necessary if the MRP is run along with MPS in step 10 by setting
the control field 'Run Net Change MRP' as 'Yes'

12.

a) Confirm Planned MPS Production orders


b) Confirm Planned MPS Purchase orders
c) Transfer Planned MPS Production orders
d) Transfer Planned MPS Purchase orders

* This will send these indents to the shop floor and purchase

* Any changes with respect to the supplier, quantity, dates can be done to these
indents before confirming through the session
"Maintain Planned MPS Production/Purchase Orders "

NOTE: Only simple planning scenario is considered here for MPS. The reason any
other scenario like sales order amendment etc. is not deemed fit to be shown is -

* As planning through MPS is done only for standardised items for which the
standard cost, lead time, supplier is known well in advance so at the time of
promising delivery date to the customer, the date so agreed should be acceptable
and achievable to everyone from production to purchase.

* As the items, which are planned in MPS, are sold according to standard design and
price list there should be no reason for amendment as far as design and price are
concerned.

* If any change in delivery dates is done in the sales order however, the MPS will
automatically take that into account as long as the orders are in planned.

* If an order is put on hold or cancelled when the production is already in


progress or purchase has been made, then the orders can be finished anyway because
the standard items can be stocked.
This document is prepared for:

PLANNING SCENARIO FOR MPS

Production Business Scenarios

BUSINESS SCENARIOS IN FINANCE

Financial Budgeting System

Activity

BAAN Procedure

Remarks

1. Setting up of, Master Budgets, Expense, Income Budgets for the year and for the
different periods.

Maintain Budget Master Data

To link the Revenue Budgets, Expenses Budgets, etc

2. Distribution of the Budget Data


to the different fiscal periods, either actual amounts or percentage break ups.

Maintain Distribution Master Data & Distribution Percentages.

The percentages are inputted in this session.

3. Allocation of Amounts to the periods based on percentages defined above.

Maintain Budget Amounts & Quantities.

To attach the budget amounts ledger wise to each budget to enable comparision
through ledger history.

4.Viewing the comparison reports


Actuals vs Budgeted.

Print Comparison Reports

Financial Integration based on other scenarios

Business Scenario for Production ( Shop Floor )

1. Simple Production Procedure

Baan Procedure
Financial Integration Entries

Maintain Production Orders

NA
Print Order Documents

NA
Release Production Orders

NA
Enter Material Issue for Prod'n Orders

NA
Issue Inventory
Work in Process A/c Dr
To Raw Materials
( Std Price * Actual Quantity )

Process Hours Accounting


Work in Process A/c Dr
To Operations Cost
( Man-Machine rate * Actual hrs in HRA )

Report Production orders completed


Finished Goods A/c Dr
To Work in Process
( At Standard Price in Item Master )

Close Production Orders


Work in Process A/c Dr
To Production Va

2. Production Order procedure with changes at the Planned Stage

The Financial entries will be the same as above and the figures for the Standards
will be picked from the Changed Routing Hours.

3. Production order procedure with changes after releasing the order to the shop
floor.

The Financial entries will be the same as in 1. Above except that the valuation
will be done for the revised quantity.
4. Production procedure with changes in routing after some operations have been
carried out.

The Financial entries will be the same as in 1above except that the valuation for
the standard operation cost will change from one operation defined in one route to
the routing adopted subsequently.

5. Production procedure with rescheduling of remaining operations.


Same as 4 above.

6. Production Procedure when material requirement for the order is changed.


The entries remain the same as No 1. On the Completion of the production order, in
addition to the entry Fin Goods A/c Dr for the items in BOM, the same entry is
passed for the new material or the changed Material requirement.

7. Production procedure with unplanned partial delivery/completion of the order


quantity.

The entry for the transfer of Goods from the WIP stage to the Finished Goods i.e.

Finished Goods A/c Dr


To Work in Process A/c

Will be passed for the quantity completed. However the entry for variance on this
quantity will be passed only after the order has been closed.

8. Production Procedure with Planned Sub-contracting

On the receipt of the sub-contracting order, the entry that is passed is

Work in Process A/c Dr


To Invoices receivable.
( At the pur order price )

The other entries remain the same 1.

9. Production Procedure with unplanned Sub Contracting

Steps remain the same as 7

10. Production procedure with rejection & issue of extra material.


The entries will remain the same as No 1, except that the entry for transfer to
Finished Goods ( Report Order Complete ) will be for the quantity accepted and the
actual operations cost on the rejected material and the cost of material itself
will be accounted as adverse production variance for this production order.

11. Further if any material rejected in a Production order is now reworked, the
entries remain the same as no 1, however the actual operation cost incurred at this
stage is accounted as varaince for this production order

12. Production procedure involving cancellation of orders

1. Cancellation at Planning Stage - NA


2. Cancellation after Release _ NA
3. Cancellation after material issue

Reverse entry is passed for Issue of Material.

Finance

Business Scenario for Project Control Integration ( Simple Cycle )

( Including Simple cycle of payments to suppliers & receipts from Customers )

1. Simple Cycle

Baan Procedure
Financial Integration Entries

Maintain Sales Order for Projects

NA
Generate PRP Orders

NA
Confrim & Transfer PRP Orders

NA
Maintain PRP Purchase Orders

NA
Maintain Receipts

WIP - Projects A/c Dr


To Invoices Receivable - 517
( At Actual PO Price )

Release Production Orders

NA
Process Hours Accounting
WIP - Projects A/c Dr
To Absorbed Operations Cost
( Man-Machine rate * Actual hrs in HRA )

Process Delivered Sales Orders

1. Accounts Receivables A/c Dr


To Interim Sales A/c
2. Interim Sales A/c Dr
To Final Sale of Projects

Calculate Cost for Projects

( At this stage check the open entries )


Project Cost Price A/c Dr
To WIP - Projects
( Actual Cost Price as above )

Finance

Maintain Bank Transactions

Bank A/c Dr
To Accounts Receivable A/c
Finance

Maintain Registered Invoices

Registered Invoices A/c Dr


To Accounts Payable

Match / Approve Purchase Invoices

( At this stage , check the open entries )


Invoices Receivable - 517 Dr
To Registered Invoices A/c

Maintain Bank Transactions


Accounts Payable A/c Dr
To Bank A/c

Financial Integration with the Purchase Module

BAAN Procedure
Financial Entry
Remarks

1. Maintain Purchase Orders


Goods to be Received A/c Dr
To Purchase Obligations

This entry is optional depending on the requirement of the same.

2. Maintain Receipts

The entry passed by the system in 1. Is reversed automatically & the following
entry is passed :

Raw Materials A/c Dr


To Purchase Price Variance A/c
To Invoices Receivable A/c

The receipts entered in this session is used as the base for matching the purchase
invoice with the receipts maintained here.

3. Process Delivered Purchase Orders

NA

No entry is passed at this stage.

BAAN Finance

BAAN Procedure
Financial Entry
Remarks

1. Maintain Purchase Invoices

Registered Invoices A/c Dr


To Accounts Payable A/c

Liability is created at this stage.

2. Match Receipts

NA
Matching of receipts with Purchase invoices.

3. Approve Purchase Invoices

Invoices to be received A/c Dr


To Registered Invoices A/c

Approval is not possible if the price difference exceeds the tolerable


price difference.

Finalize this batch.

CASH MANAGEMENT

BAAN Procedure
Entry Passed

Remarks

1. Maintain Bank Transactions

This step is optional and can be by passed depending the operational feasibility.
However cheque printing is not possible if this step is by passed.

3. Maintain Bank Balance

Accounts Payable A/c Dr


To Bank
( On Payment for the Purchases )
The system passes this entry automatically once the payment is effected in this
session.

Finalize this Batch

BAAN Procedure
Entry Passed

Remarks

1. Maintain Anticipated Payments


Anticipated Payments A/c Dr
To Ant Reduction in Bank A/c

( When the cheque is issued to the supplier )

This step is optional and can be by passed depending the operational feasibility.
However cheque printing is not possible if this step is by passed.
3. Maintain Bank Transactions
1. Ant Reduction in Bank A/c Dr
To Anticipated Payments A/c
( This entry is passed automatically )

2. Accounts Payable A/c Dr


To Bank A/c
(This entry is also passed automatically once we enter that the cheque issued has
been claimed.)

The system passes this entry automatically once the payment is effected in this
session.
Alternatively

One can directly pass the entry no 2.

Accounts Payable A/c


To Bank A/c

Cheque printing is not possible if this route is used.

The Anticipated mode of Receipts is followed in countries in which daily Bank


Reconciliation's are done.

Purchase Returns

BAAN Procedure
Financial Entry
Remarks

2. Maintain Purchase Orders


( Using the order type Return )

NA

This entry is optional depending on the requirement of the same.

2. Maintain Receipts

Invoices Receivable A/c Dr


Purchase Price Variance A/c
To Raw Material Stock A/c

The entries passed at the time of receipts, is reversed to the extent of the
materials returned.

4. Process Delivered Purchase Orders

NA

No entry is passed at this stage.

Finalize the Integrated Batch


Purchase Debit Notes

BAAN Procedure
Financial Entry
Remarks

1. Matintain Purchase Invoices Transactions


( Debit Notes )

Accounts Payable A/c Dr


To Ledger A/c

This entry is optional depending on the requirement of the same.


Finalize this batch

Linking Purchase Debit Notes to Purchase Invoices

BAAN Procedure
Financial Entry
Remarks

1. Assign credit Notes to Invoices


( tfacp2120s000 )

Using the transaction type purchase


corrections

NA

This entry is optional depending on the requirement of the same.

2. Assign Invoices to Credit Notes


( tfacp2121s000 )

Accounts Payable A/c Dr


( Amount of Invoice )
To Accounts Payable A/c
( Amount of Debit Notes )
Finalize this batch

Before this, attach the automatic payment method to the invoice

Payments made through Supplier Payments, i.e. Automatic Payment Method.

BAAN Procedure
Financial Entry
Remarks

1. Select Invoices for Payment

NA

Invoices are selected for payment based on the supplier, currency , due
Date.

2.

Accounts Payable A/c Dr


( Amount of Invoice )
To Accounts Payable A/c
( Amount of Debit Notes )

Finalize this batch

Integration of Sales Module with BAAN Finance

BAAN Procedure in
Sales Control
Financial Integration Entry
Remarks

1. Maintain Sales Order


( Of the type Return Order )
N A

This entry is optional depending on the requirements. This entry gets reversed
automatically when the goods are delivered.

2. Maintain Deliveries

Finished Goods A/c Dr


To Invoices to be recd A/c

This entry is passed at the Std


Price of the Finished Product.
3. Processed Delivered Sales Orders
This step triggers the following entries :

1. Accounts Receivable A/c Dr


To Interim Sales A/c

2. Material Cost of Goods Sold Dr


Operations CGS Dr
To Goods to be Invoiced A/c

3. Interim Sales A/c Dr


To Final Sales A/c

This entry is passed for the Actual Sales Amount.

This entry is passed at the Std price of the Finished Good.

This entry is at the same amount as 1.

Step nos 1-22 will have no effect in Finance and the steps after that will have the
same effect as above.

* Scenario III - Sales Order for an existing Customized Item

Same as Scenario II
After the above step are over in the distribution module the receipts for the sales
effected above are recorded as follows :

BAAN Procedure
Entry Passed

1. Maintain Anticipated Receipts


Checks in Hand A/c Dr
To Anticipated Receipts
( When we receive the check from the customer )

2. Maintain Anticipated Receipt Status


Checks in Bank A/c Dr
To Checks in Hand
( When the check is deposited for clearing )

3. Maintain Bank Transactions


1. Anticipated Receipts A/c Dr
To Checks in Bank
( This entry is passed automatically )

2. Bank A/c Dr
To Accounts Receivable
( This entry is passed when the check is cleared )

Alternatively

One can directly pass the entry no 2. Of 3. Ie

Bank A/c Dr
To Accounts Receivable A/c

(Once the check is deposited in the Bank )

The Anticipated mode of Receipts is followed in countries in which daily Bank


Reconciliation's are done.
Procedure for Sales Return

BAAN Procedure in
Sales Control
Financial Integration Entry
Remarks

1. Maintain Sales Order

Sales Obligations A/c Dr


To Goods to be Delivered A/c
( This is an option provided by BAAN to recognise the obligations arising out of a
Sales Order )

This entry is optional depending on the requirements. This entry gets reversed
automatically when the goods are delivered.

3. Maintain Deliveries

Goods to be Invoiced A/c Dr


To Finished Goods A/c

This entry is passed at the Std


Price of the Finished Product.
3. Processed Delivered Sales Orders
This step triggers the following entries :

2. Accounts Receivable A/c Dr


To Interim Sales A/c

3. Material Cost of Goods Sold Dr


Operations CGS Dr
To Goods to be Invoiced A/c

4. Interim Sales A/c Dr


To Final Sales A/c

This entry is passed for the Actual Sales Amount.


This entry is passed at the Std price of the Finished Good.

This entry is at the same amount as 1.

FAS follows a bottom up approach to search for the depreciation rate.

Ie if it finds a rate for a specafic fixed asset, it picks that rate else it will
pick the rate given in the dep for the group of assets and in the absense of that,
it picks the rate speciafied in the Dep master data.

Transactions
BAAN Procedure
Remarks

1. Purchase of Fixed Assets


Maintain Investments
Purchases may be made through Purchase Orders in the Distribution Module or through
Purchase Invoice Transaction Type

2. Depreciation calculation on the Fixed Assets

Process Periodical Depreciation Calculation


Based on SLM at the rates in Companies Act.

Passing entries in Financial Accounting System for Depreciation.

Post Fixed Asset transactions

This passes the entries automatically in the General Ledger.

3. Selling the Fixed Assets at profit/losses.

Maintain Disposals

This session calculates the profit / losses on the sale of the fixed Assets ie the
difference in the book value and Selling price.

At every stage Finalization of the transaction has to be done.

The Financial entries for the above transactions in the same sequence, as above )
are as follows :

These have to be attached in the transaction schedules of fas.


1. Asset A/c Dr
To Supplier / Bank A/c
( on the purchcase of the Assets )

2. Interim Depreciation A/c Dr


To Provision for Depreciation A/c

2.1 Depreciation A/c Dr


To Interim Depreciation A/c

( On the Processing of the Periodical Depreciation Calculation & Posting of the


results to the General Ledger )

3. Customer / Bank A/c Dr


To Profit on Sale of Fixed Assets ( Selling Price - Book Value )
To Asset A/c ( At Book Value )

( On the sale of the assets in the session ' Maintain Disposals ' )