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Blue Print - FI
Blue Print - FI
Blue Print - FI
Requirements / Expectations
The Organization Structure / Units are used to structure business functions and to
enable reporting with seamless interface.
Requirements
The FI application component fulfils all external reporting requirements that must
be met by the organization whether national or international.
General Ledger
The GL forms the backbone of all the financial systems. It will provide a
comprehensive picture of the transactions and accounts. It would capture all
business transactions through seamless integration with other operational areas of
the company to ensure that accounting data is always complete, consistent and
accurate.
General Explanations
• Prepare Profit & Loss Account along with Balance Sheet & Schedules as per
Schedule VI – Prescribed format.
• Variation analysis is carried out for major variations.
• Valuation of stocks.
• Confirmation of Balances.
• Notes to the accounts & Director’s Report prepared.
• Cash flow & Audit.
• Preparation of draft Annual Accounts.
• Approval by Auditors.
• Approval by Audit Committee.
• Approval by Board & Auditors.
• Preparation of Final Annual Report.
EXPLANATIONS OF FUNCTIONS AND EVENTS
• This new scheme of Chart of Accounts & GL Master data will consider the
future expansion & diversification plans for HPCL as a whole thus
incorporating new GL accounts that may not be used now but in the future.
• Financial entries are updated from the Sub Ledger to the Main Leger online
automatically.
• A number of accounting transactions will be carried out by way of automatic
account assignments. For example, inventory account is updated and a
provision created in GL at the time of raising a GR in MM.
• Taxes are automatically posted to GL accounts as per the pre-defined posting
rules from the condition records which are available in the PO and Sales
Pricing. Manual Postings may not required.
• A host of General Accounts will be introduced that are specific to SAP e.g.
GR/IR account. These accounts are used automatically by the system during
Goods Receipt and Invoice Verifications Processes.
• Costing and MIS will be handled through controlling module within SAP.
Hence the GL accounts, Department codes and Auxiliary codes used for
Costing will be discontinued.
• Consolidation of accounts at Management level will be eased because the
system will be integrated.
• Use of numerous standard reports in SAP will cater to various reporting
requirements.
• Creation of GL accounts in SAP has to be centralized and the Change
Management team has to consider the commonality aspect.
• Financial Statement Versions will help in reporting for various requirements
like Companies Act and any other format required by the organization etc.
DESCRIPTION OF IMPROVEMENTS