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Creation Date:
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RD050_AP
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Objectives
The objective of this document is to outline the Business Requirements, in as much detail as possible, related to
General Ledger business processes in ORAERP COM INC., Abu Dhabi, to facilitate implementation of Oracle
Accounts Payables.
BASIC GUIDELINES TOWARDS FINALISATION OF BUSINESS REQUIREMENTS/CURRENT BUSINESS
BASELINE DOCUMENT SHALL BE TO ENSURE AN EFFICIENT, SMOOTH AND EFFECTIVE
IMPLEMENTATION, BY OBSERVING THE FOLLOWING:
1. The objective is to utilize to the best possible extent, the flexibility and facilities of Oracle General
Ledger.
2. Flexibility, therefore, will be the norm and will be Built In at every stage to the best possible extent,
based on available current information on the Business Processes given by the users.
3. Reduction of the gaps will be ensured as far as possible.
Scope
The scope of this study is limited to the functions pertaining to Accounts Payble based on the Business
Requirements information provided by ORAERP COM INC..
The focus of the study and this document is to identify and outline the processes involving the
management of the Accounts Payable functions in the Oracle Application.
Business requirements Information
A combination of the following methods were used for collecting data on current business scenario
and future requirement for the 10 new companies
AS-IS Processes
Based on above and various Minutes of Meetings all the AS-IS processes as understood were drawn.
TO-BE Processes
The current business scenario has limited application and usefulness and requirement analysis has to be
primarily evolved using available documents, requirements communicated through various discussions on the
future vision, policies and procedures for the new companies.
The following inputs were considered for the design of TO-BE processes
Abbreviations Used
The following abbreviations with the expanded forms have been used in this document:
Abbr.
6
Detail
Abbr.
Detail
AP
INV
Accounts Payable
Invoice
CUR
Currency
INT
Invoice Type
SEQ
Sequence
Amt
Amount
DR
Debit
CR
Credit
LT
Ledger Type
CUR
Currency Code
INB
Invoice Batch
Assumptions
ADBC Company, Supplier master data is created at corporation level and the respective sites are created in each legal
entity/operating unit
Event
Description:
This process is triggered when we want to purchase any material from the suppliers.
Number:AP.001
Type: Master
Process
ID #
Elementary
Business
Function
Description
Type
AP001.01
Supplier Account
AP001.02
Internal System
Assisted. Use PIN number
to be unique. Field
should be mandatory
Internal System
Assisted
AP001.03
AP001.04
Agent
Status
Finance
Team
Active
Supplier Account
Result of
Supplier query
Finance
Team
Active
Internal Manual
Supplier/Employ
ee Account
Supplier details
entered
Finance
Team
Active
Internal System
Assisted
Supplier/Employ
ee Account
Record Created
Finance
Team
Active
Result
Date : June-2-2013
Description: This Process explains creation of standard invoice, which has approved purchase order/ Receipt.
Assumptions:
In ORAERP COM INC. invoices are created at operating unit level and are either matched with the PO or receipt.
Event
Description: This process is triggered when we receive the material from the supplier.
Number:AP.002
Type: Transaction
Process
ID #
Description
Type
Elementary
Business Function
AP002.01
Internal Manual
Standard Invoice
With PO
AP002.02
Internal System
Assisted
Standard Invoice
With PO
AP002.04
Internal System
Assisted
Internal System
Assisted
Internal System
Assisted
Internal System
Assisted
AP002.05
AP002.06
AP002.07
Result
Agent
Status
Finance Team
Active
Finance Team
Active
Standard Invoice
With PO
Invoice is
available for
entering into the
system.
Invoice available
for matching to
PO and receipt
Invoice entered
in the system
Finance Team
Active
Standard Invoice
With PO
Standard Invoice
With PO
Standard Invoice
With PO
Invoice entered
in the system
Invoice entered
in the system
Matched Invoice
with PO /
Finance Team
Active
Finance Team
Active
Finance Team
Active
Process
ID #
Description
Type
Elementary
Business Function
Result
Agent
Receipt.
Internal System
Assisted
Standard Invoice
With PO
Invoice is
validated
Finance Team
Active
Internal System
Assisted
Standard Invoice
With PO
Hold placed
manually.
Finance Team
Active
Internal System
Assisted
Standard Invoice
With PO
Accounting
entries Created.
Finance Team
Active
Librarian:
10
Status
Date : June-2-2013
Process Owner: Finance Team
Core (Y/N)
Yes
Description: This Process explains creation of Standard Invoice, which does not have purchase order.
Assumptions:
In ADCB supplier invoices are created at operating unit level and the invoice lines and distributions are created
manually.
Description: This process is triggered when the services are received/any expenses incurred
Event
Number:AP.03
Type: Transaction
Process
ID #
Description
Type
Elementary
Business Function
AP003.01
Internal Manual
Standard Invoice
Without PO
AP003.02
Standard Invoice
Without PO
AP003.03
Standard Invoice
Without PO
Standard Invoice
With PO
AP003.05
Standard Invoice
Without PO
AP003.07
Standard Invoice
Without PO
AP003.10
Distribution Sets
AP003.04
11
Result
Agent
Status
Invoice is
available for
recording into
system
Invoice
entered in the
system
Invoice
entered in the
system
Finance Team
Active
Finance Team
Active
Finance Team
Active
Invoice
entered in the
system
Invoice is
available for
approval
Accounting
entries
generated
Distribution
Sets defined
and assigned
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
12
Date : June-2-2013
Process Owner: Finance Team
Librarian:
Core (Y/N)
Yes
Description: This Process explains the creation of prepayments, which are treated as advance payment to suppliers/
employees.
Assumptions:
Event
Type: Transaction
Process
ID #
Description
Type
Elementary
Business Function
AP004.01
Internal Manual
Advance Payment
AP004.02
Advance Payment
AP004.03
Advance Payment
AP004.04
Advance Payment
AP004.05
Advance Payment
13
Result
Agent
Status
Prepayment
Invoice is
available for
recording into
the system.
Prepayment
invoice is
created.
DFF data is
captured.
Finance Team
Active
Finance Team
Active
Finance Team
Active
Prepayment is
validated
Prepayment is
available for
Finance Team
Active
Finance Team
Active
Process
ID #
Description
Elementary
Business Function
Type
AP004.06
Advance Payment
AP004.07
Advance Payment
AP004.08
Advance Payment
Prepayment
AP004.09
Result
payment
Prepayment
Liability
Clearing is
created.
Prepayment
Available for
application
Prepayment
Applied
Alert is sent
Agent
Status
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
Date : June-2-2013
Assumptions:
Event
14
Type: Transaction
Process
ID #
Description
Type
Elementary
Business Function
AP005.01
Internal Manual
Entering Credit
Memo
AP005.02
AP005.03
AP005.04
AP005.05
Result
Agent
Status
Finance Team
Active
Entering Credit
Memo
Credit memo
is available for
recording into
the system
Credit Memo is
created.
Finance Team
Active
Entering Credit
Memo
Credit Memo
Validated
Finance Team
Active
Entering Credit
Memo
Finance Team
Active
Entering Credit
Memo
Credit note is
available for
refund/adjust
ment
Accounting is
created
Finance Team
Active
Date : June-2-2013
Process Owner: Finance Team
Core (Y/N)
Yes
Description: This explains the processing of supplier/employee payments for making invoice payments.
Assumptions:
Event
ADBC makes payments in different types like cash, check, bank transfer, L/C
Description: This process is triggered when the invoices are to be paid
Number:AP.006
Type: Transaction
Mechanisms: System Assisted
15
Process
ID #
Elementary
Business Function
Description
Type
AP009.01
Payment
AP009.02
Payment
AP009.03
Payment
AP009.04
Standard Invoice
With PO
AP009.05
Payment
Payment
Payment
AP009.06
AP009.07
16
Result
Agent
Status
Payment
voucher is
created
Payment
voucher is
created
Payment
voucher is
created
Invoice
entered in the
system
Accounting is
created.
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
Finance Team
Active
Payment is
canceled/void.
Remittance
advice is
printed.
Finance Team
Active
Finance Team
Active
2.1 Invoice
Creation:
Start
17
18
Payments to
voided
Payment
YES
Void Payments
(B) Actions
Generate Payments
19
Payments
Approved?
NO
Correct and
Reapprove