Finance Track

Module

GL

GL

Process

Ref

Issue

General

2.1.1

General

Implications

Recommendations

Jeraisy Comments

Action

The implementer should draw

The processes may be
Some processes have no
unclear to UCS business process flow diagram for each
process flow diagram
process
user

Process Flow diagrams are

provided for all necessary flows.

Nil

2.1.1

The implementer should

review the roles and
Lack of control in the
responsibilities to
applications
ensure proper control
and segregation of duties

Separation between transactions

entry and approvals

These roles are provided based on

the current structure of UCS. As
Nil
suggested by KPMG Roles are
modified in diagrams.

Disabling the chart of accounts

values should be used instead of
deleting.

Chart of Account Cannot be

deleted. The word "Delete" is
removed

Tracking account
balances will be
impaired

Process
Description
Corrected

GL

PR1109

2.1.2

Deleting chart of
accounts values

GL

PR0510

2.1.3

The accountant creates

Lack of control
and posts journal entries

Separation between transactions

entry and approvals

Process
Posting Responsibility is assigned
Diagram
to the Manager Role.
Corrected

2.1.4

The same accountant

creates and posts journal Lack of control
entries

Separation between transactions

entry and approvals

Process
Posting Responsibility is assigned
Diagram
to the Manager Role.
Corrected

GL

PR1118

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Finance Track
Module

GL

GL

AP

AP

Process

PR1045

PR1120

General

General

Ref

Issue

Recommendations

Jeraisy Comments

Action

2.1.5

The initiating event in

This might be a wrong
this flow diagram is AP
event
Period End Close?

The implementer should clarify

this event

Initiating event is changed as

"Subledger Period End"

Process
Diagram
Corrected

2.1.6

Difficulty of using the

Budget controlling level
system

The Budget Process should

indicate which controlling level
will be used? How the amounts
will be recorded into the system?

The diagram is common

irrespective of the Budget Level.
Budgets Contol level is updated
in the Document.

Process
Description
Corrected

This has been explained in

Inventory Process PR1136 as it
relates to Material Receiving.

Nil

2.2.1

Landed cost calculation

2.2.1

Supplier invoices will

be matched to the
purchase order and not
the receiving

KPMG-FIN-REPLY-1.1 # Sheet1

Implications

Since most of the goods is

imported landed cost calculation
Lack of accurate costing
should be taken into
information
consideration in costing UCS
received goods

Difficulty of using the

system

The implementer should agree

with UCS regarding invoice
matching options and chose the
appropriate matching option.
.

3/9/2008 # 2:50 PM

Supplier Invoices will be matched

with Receipt in case of Materials
Nil
Receipts and with PO in other
cases.

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Finance Track
Module

AP

AP

AP

Process

Ref

Issue

General

2.2.1

PR1005

PR1193

2.2.2

2.2.3

Recommendations

Jeraisy Comments

Action

Some processes have no The processes may be

process flow diagram
unclear

Draw process flow diagram for

each process

Process Flow diagrams are

provided for all necessary flows.

Nil

Supplier grouping is not Suppliers are not

mentioned
grouped

The implementer should

categorize suppliers as per UCS
requirements, the implementer
should ensure that any conflicts
between the anticipated
categories are being avoided.

Supplier Grouping will be

decided by UCS while they create
Process
a new supplier. In case of existing
Description
suppliers We have provided the
Corrected
template, which includes the
Supplier Category also.

Letter of Credit
integration with other
applications
functionalities

KPMG-FIN-REPLY-1.1 # Sheet1

Implications

Lack of applications
integration

The implementer should create

functional and technical extension
architecture document before
starting the development work in A separate document on the
custom extension will be
order to ensure that all UCS
delivered.
required functionality and LC
integration with the related
applications functionalities are
being covered.
.

3/9/2008 # 2:50 PM

Technical
Document
will be
delivered

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Finance Track
Module

AP

AP

AP

AP

Process

PR1193

PR1015

PR1035

PR1050

Ref

Issue

Implications

Recommendations

Jeraisy Comments

Action

Nil

Process
Diagram
Corrected

2.2.3

This process repeated in Repeated cycle in the

the end of the document document

The implementer should remove

the duplicated business process

Since it is relevant for both AP

and PO, this was repeated. We
will separte this document into
two different documents one for
AP and the other for PO as per
KMPG's suggestion.

2.2.4

The initiation event of

Wrong event used in the
the Debit Memos
process is Credit Note process diagram flow
Received from Supplier

The implementer should use

Material Return Note Received
from Warehouse / Showroom
event instead

The initiation event will be

corrected as "Material Return
from Suppler"

2.2.5

The business process is

not clear

The implementer should revise

the process diagram flow and to
elaborate further

Process
Diagram Simplified as per KPMG
Diagram
Suggestiion.
Corrected

The process flow diagram should

indicate who is authorized to sign
the checks? Also check printing
prerequisites should be discussed
and prepared in the design phase.

All Checks are being signed by

Process
the Board of Directors. A manual
Diagram
process step PR1050.9 is included
Corrected
for getting signature.

2.2.6

The authorized person

who signs checks is not
clear

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4 of 6

Finance Track
Module

AP

AP

AR

Process

PR1055

PR1060

General

Ref

Issue

Implications

Recommendations

2.2.7

The authorized person

who signs checks is not
clear

All Checks are being signed by

The process flow diagram should
the Board of Directors. A manual
indicate who is authorized to sign
process step PR1055.10 is
the checks?
included for getting signature.

2.2.8

This process is not clear

I believe that this process needs

further elaboration

This has been clarified and The

Payment of the Loans and
Advances to employees is now
mentioned in the Document

2.3.1

Roles and
responsibilities are not
separated

Separation between transactions

entry and approvals

These roles are provided based on

the current structure of UCS. As
Nil
suggested by KPMG Roles are
modified in diagrams.

The implementer should use

business cycles, like (sales to
cash), instead of modular cycles,
like (Accounts Receivables)

As suggested by Mr.Hassan
(KPMG) we will have a separate
Nil
document for each module as per
AIM.

This process is explained in Order

Create business flow for customer
Management. PR1060 - Maintain Nil
maintenance
Customer Master

Lack of control

AR

General

2.3.1

Using modular business

Integration problems
cycles

AR

General

2.3.1

Customer Maintenance
Cycle does not exist

KPMG-FIN-REPLY-1.1 # Sheet1

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Jeraisy Comments

Action

Process
Diagram
Corrected

Process
Description
Corrected

5 of 6

Finance Track
Module

AR

Process

Ref

Issue

Implications

General

2.3.1

Incentive compensation Difficulty of calculating

for sales people
sales commission

Malfunctioning in POS
integration with Oracle
E-Business suite

Recommendations

Jeraisy Comments

Action

Incentive calculation elements

should be clearly defined

Incentive calcualtion basis has to

be formulated by UCS. Based on
that a report will be developed.

Nil

The implementer should create a

A separate document on the
detailed document describing the
custom extension will be
functional and technical design
delivered.
for this major interface

Technical
Document
will be
delivered

AR

PR1027

2.3.2

The POS interface with

Sales Orders and AR
Invoices

AR

PR1028

2.3.3

This business process is

not clear

The implementer should further

elaborate this business flow

Inter Divisional Invoices will be

created though this process. This
process was clarified.

Separation between transactions

entry and approvals

These roles are provided based on

the current structure of UCS. As
Nil
suggested by KPMG Roles are
modified in diagrams.

Nil

FA

General

2.4.1

Roles and
responsibilities are not
separated

FA

PR1102

2.4.2

This process diagram is

not clear

Installation of Assets is a Manual

The implementer should elaborate
Process. This process step was
this business flow
clarified.

2.4.3

The employee is
recording accounting
information

Recording the Accounting

Process
The employee role in this process Information is assigned to
Diagram
needs further elaboration
Accountant. The process diagram
Corrected
modified accordingly.

FA

PR1103

KPMG-FIN-REPLY-1.1 # Sheet1

Lack of control

3/9/2008 # 2:50 PM

Nil

6 of 6