Professional Documents
Culture Documents
FINANCIAL ACCOUNTING
BUSINESS BLUEPRINT
SUBMITED
TO
1.
EXECUTIVE SUMMARY................................................................................................ 2
1.1
Overview................................................................................................................. 2
1.2
1.3
Project Scope.......................................................................................................... 4
1.4
Financial Accounting............................................................................................... 4
1.5
2.
Audience.................................................................................................................... 5
3.
Organizational Structure............................................................................................ 5
3.1 Client.......................................................................................................................... 6
3.2
Company................................................................................................................. 6
3.3
Company Code........................................................................................................ 7
3.4
Chart of Accounts.................................................................................................... 7
4.
Master Data............................................................................................................... 7
4.1
4.2
4.3
4.4
4.5
5.
Business Process........................................................................................................ 8
5.1
5.2
5.3
5.4
5.5
Gap analysis......................................................................................................... 13
1.
EXECUTIVE SUMMARY
2
1.1
Overview
ITC is one of India's foremost private sector companies with a market capitalization of
over US $ 33 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best
Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes
magazine and among India's Most Valuable Companies by Business Today. ITC ranks
among India's '10 Most Valuable (Company) Brands', in a study conducted by Brand
Finance and published by the Economic Times. ITC also ranks among Asia's 50 best
performing companies compiled by Business Week.
ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, and Information Technology. While ITC is an outstanding market
leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged
Foods & Confectionery, Branded Apparel, Personal Care and Stationery.
ITC's production facilities and hotels have won numerous national and international
awards for quality, productivity, safety and environment management systems. ITC was
the first company in India to voluntarily seek a corporate governance rating.
ITC employs over 26,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalizing
environment to consistently reward more than 4,07,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations.
This over-arching vision of the company is expressively captured in its corporate
positioning statement: "Enduring Value. For the Nation. For the Shareholder."
1.2
This document summarizes the findings of the SAP CTX Labs consulting team and I T C
team with respect to SAP processes to be implemented in I T C FMCG & Tobacco
The purpose of Business Blueprint document is to prepare to move forward with the
implementation of I T C SAP R/3 system. At the conclusion of the blueprint, the SAP CTX
Labs consultants will determine the SAP functionality required to run the I T C business.
The Blueprint reiterates the R/3 organizational structures that have been identified and
will serve as the basis for the initial configuration activities. No significant configuration
and customization choices have been identified that will prevent the future
implementation of additional capabilities within the R/3 environment.
The information gathered and documented in the Blueprint is sufficient for the team to go
forward into the Realization phase. However, it is critical that both the SAP CTX Labs and I
T C team agree on the scope of the project as presented in this document. Acceptance
by both teams is required to move the project into the next phase.
1.3
Project Scope
This project covers almost all the areas of Production, Purchases, Sales and Finance as
well. It describes the components of Finance such as General Ledger, Accounts Payable,
Accounts Receivable, and Asset Accounting in Finance Module. Apart from this Cost
Accounting, Internal Orders, Production Orders, and Sales Orders covered under
Controlling Module.
1.4
Financial Accounting
1.5
The real-time functionality of the SAP modules allows for better decision making and
strategic planning. The FI (Financial Accounting) Module integrates with other SAP
Modules such as MM (Materials Management),
PP (Production Planning), SD (Sales and Distribution), PM (Plant Maintenance),and sub
components of FI are General Ledger, Accounts Payable, Accounts Receivable, and Asset
Accounting in Finance Module.
2. Audience
The audience of this document is :
I T C Team:
I T C Group
Controlling Area
I T C Fmcg
ITC
Tobacco
Profit
Center
PC F 2
PC F 1
PC T 1
I T Manager
Project Manager
Finance
FICO
Purchase
M.M
Sales
S.D
PC T 2
3. Organizational Structure
An organizational structure is made up of organizational units , which represent the
departments, work groups etc. in your enterprise.
3.1 Client
Clients are part of the defining technical structure of the SAP System. Each client contains its own
master records and set of tables. Customizing is either client-specific or cross-client, depending on
which business data is configured. Cross-client customizing is valid for all clients in an SAP System.
3.2 Company
A company is an organizational unit in Accounting which represents a business organization according
to the requirements of commercial law in a particular country. A company can comprise one or more
company codes. All company codes for a company must work with the same operational chart of
accounts and fiscal year . The currencies used can be different.
4. Master Data
Master data is data that remains unchanged over a long period of time. Master data contains
information that is needed again and again in the same way. Characteristics can bear master data in
BI. Master data can be attributes, texts, or hierarchies. If characteristics have attributes, texts, or
hierarchies, they are referred to as characteristics that bear master data.
5. Business Process
SAP business processes that can span many functional areas within a company. Instead of navigating
through multiple screens, business users often stage the data for SAP transactions it provides a
complete view of the data. The above picture tells the flow of the business process from SD to FICO
and FICO to MM.
5.1
Purpose
The central task of G/L accounting is to provide a comprehensive picture of external accounting and
accounts. Recording all business transactions (primary postings as well as settlements from internal
accounting) in a software system that is fully integrated with all the other operational areas of a
company ensures that the accounting data is always complete and accurate.
Account information
Journals
Totals/transaction figures
Process Flow
Key Points
Actual individual transactions can be checked at any time in real time processing
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5.2
Purpose
This scenario deals with posting accounting data for vendors in Accounts Payable. From there, the
data is sorted by vendor and made available to other areas such as the purchasing system. When
posting data in Accounts Payable, the system creates a document and passes the data entered to the
general ledger. General ledger accounts and vendor accounts are then updated according to the
transaction concerned (payable, down payment, credit memo and so on) vendor payment activities.
All business transactions are posted to and managed by means of accounts and for this a vendor
master records are created.
Process Flow
Key Points
When posting data in Accounts Receivable, the system creates a document and
passes the data to the general ledger
Profit, Loss and customer accounts are updated according to the transaction
concerned customer payment activities
All business transactions are posted to accounts
All business transactions are managed by means of accounts and for this customer
master records are created
One time Customers are used for avoiding building up of huge master data volume
5.3
Purpose
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This component deals with posting accounting data for customers in Accounts Receivable. From
there, the data is sorted by customer and made available to other areas such as the Sales and
Distribution system. When posting data in Accounts Receivable, the system creates a document and
passes the data entered to the general ledger. General ledger (Profit and Loss) accounts and
customer accounts are then updated according to the transaction concerned (receivable, down
payment, credit memo and so on) customer payment activities. All business transactions are posted
to and managed by means of accounts and for this a customer master records are created. One time
Customers are used for avoiding building up of huge master data volume.
General Business Processes: In this document you can find some transactions which cover
the following general business processes
Process Flow
Dunning
Account balance interest calculation
One-Time-Accounts postings
Setting a credit limit and credit control reporting
Key Points
When posting data in Accounts Receivable, the system creates a document and
passes the data to the general ledger
Profit, Loss and customer accounts are updated according to the transaction
concerned customer payment activities
All business transactions are posted to accounts
All business transactions are managed by means of accounts and for this customer
master records are created
One time Customers are used for avoiding building up of huge master data volume
To handle tangible assets, the business functions of the following system components are
accessible:
Component
Functions
Financial Accounting
(FI)
Process Flow
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Post-Capitalization
Write-Ups
Key Points
Entire lifetime of the asset from purchase order or the initial acquisition (possibly
managed as an asset under construction) through its retirement
Depreciation forecast
Examples
In customer master data the client requirement needs legacy customer number which can be solved
with User exit.
In sales order we need customer Phone number, we can use user exit
If client want new field in customer master like nearest fire station.
GAP analysis is done in Blue Print stage. It aims to understand what can be done with the standard
SAP and how the client actually wants a particular scenario to be processed.
Its an understanding of the GAP between the actual & required scenarios.
The difference between agreed work and completed work is GAP Analysis.
E.g.: To Fill This Gap, We Use the Enhancements, These Enhancements Divided Into Exits, Like User
exits, Field Exits Screen Exits & Menu Exits. These Enhancements are used to update the standard
program in its Respective Business Transactions, Used as a Gateway to Meet the Client Requirements.
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