RD.

050 BUSINESS REQUIREMENTS SCENARIOS FOR CORE BUSINESS PROCESS

ORAERP Inc. COMAPNY

Oracle Accounts Payables

Author:
Creation Date: 02-June-13
Last Updated: 02-June-13
Document Ref: RD050_AP
Version: 1.0 Final

Approvals:

NAMES

i|P a g e
RD.050 Business Requirements Scenarios Doc Ref:
RD.050

Ver.1.1 Final

Document Control

Change Record

Date Author Versio Change Reference

n

29-May- 1.0 No Previous Document

13

References

Document Name Ref.

MOM & AS-IS flow charts recorded --

Accounting policies and procedure manual AP

by D&T

Business plans for unbundled companies by --

D&T

Proposed Organizational Chart for 10 --

companies

Sector Law --

Tender specification requirements (excel --

sheets)

ii
RD.050 Business Requirements Scenarios Doc Ref:
RD.050

Ver.1.1 Final

Reviewers

Name Position

Distribution

Copy Name Location

No.

Note To Holders:
If you receive an electronic copy of this document and print it out, please write
your name on the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front
cover, for document control purposes.

iii
RD.050 Business Requirements Scenarios Doc Ref:
RD.050

Ver.1.1 Final

iv
RD.050 Business Requirements Scenarios Doc Ref:
RD.050

Ver.1.1 Final

1. BUSINESS PROCESS IDENTIFICATION 4

1.1 Supplier Creation (AP001)................................................................................................................ 5

1.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002)...................................6

1.3 Creating Standard Invoice – Without Purchase Order (AP003).........................................8

1.4 Creating Prepayment Invoice (AP004)......................................................................................14

1.5 Entering Credit Memo (AP005).................................................................................................... 18

1.6 Payment (AP006)............................................................................................................................... 20

2. BUSINESS PROCESS DIAGRAMS 24

2.1 Invoice WorkBench........................................................................................................................... 25

2.4 Invoice Processing For Assets....................................................................................................... 28

2.5 Payment Process................................................................................................................................ 29

2.6 Month End Process............................................................................................................................ 30

3. OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE 31

v
RD.050 Business Requirements Scenarios Doc Ref: RD.050

Ver.1.1 Final

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.

6
RD.050 Business Requirements Scenarios Doc Ref: RD.050

Ver.1.1 Final

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-

 Standard questionnaire based discussions with purchasing and stores departments on

requirement of standard functions, special issues

 Visit to all all major stores and study of all processes, procedure, documents

 Overview of current IT systems being used

 Current forms and reports used for purchasing, contracts and inventory functions

 Document review of proposed Business plans, Statement of Accounting policies and procedures
by Deloitte & Touche with reference to inventory & purchasing function

(SAPP 3 & 12)

 Study of proposed draft organization structure for the 10 companies and sector law

 Information collected from Function Heads and their team on various dates during the
Requirements Analysis in Jan 2003, through meetings and discussions at various locations.
Discussions with user departments like Services, Generation, T&C, Projects etc

 Discussions with General Managers of new companies.

 Validation of requirements specified in the tender documents.

AS-IS Processes

Based on above and various Minutes of Meetings all the ‘AS-IS’ processes as understood were drawn.

TO-BE Processes

7
RD.050 Business Requirements Scenarios Doc Ref: RD.050

Ver.1.1 Final

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-

 Proposed organization structure

 D&T policies to the extent applicable to business processes

 Best practices as per Oracle ERP standard processes

 Elements of Current processes only to the extent applicable in future scenario

Abbreviations Used

The following abbreviations with the expanded forms have been used in this document:

Abbr. Detail
AP Accounts Payable

INV Invoice

CUR Currency

INT Invoice Type

SEQ Sequence

Amt Amount

DR Debit

CR Credit

8
RD.050 Business Requirements Scenarios Doc Ref: RD.050

Ver.1.1 Final

Abbr. Detail

LT Ledger Type

CUR Currency Code

INB Invoice Batch

9
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

1.1 Supplier Creation (AP001)

Process: Supplier Creation Business Function: Accounts Payable Date :May 30,2013

Mapping Team: ORAERP COM INC. Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N) : Yes

Process Number: AP001 Description: This process explains the process of creating supplier

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 Source Agent: Finance Team

Mechanisms: System Assisted

10
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process Elementary
ID # Description Type Business Agent Status
Result
Function

AP001.01 Check whether the supplier exists in the system Internal – System Supplier Account Query and Check Finance Active
or not. Assisted. Use PIN number Team
to be unique. Field
should be mandatory

AP001.02 Inquire a Supplier record in the system with Internal – System Supplier Account Result of Finance Active
appropriate information such as Name or Assisted Supplier query Team
Number or etc.

AP001.03 If the supplier is not defined, enter necessary Internal – Manual Supplier/ Supplier details Finance Active
details such as Supplier name, supplier type, Employee entered Team
Bank account etc Account

AP001.04 Supplier details created with automatic supplier Internal – System Supplier/ Record Created Finance Active
number. Assisted Employee Team
Account

1.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002)

Process: Standard Invoice –With Purchase Order (PO) Business Function: Accounts Date : June-2-2013
Payable

Mapping Team: ORAERP COM INC. Process Owner: Finance Team

Librarian: Priority (H, M, L): Core (Y/N)

High Yes

11
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process Number: AP002 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 Source Agent: Finance Team

Mechanisms: System Assisted

Process Elementary
ID # Description Type Business Function Result Agent Status

AP002.01 Receive the Invoice from Supplier. Internal – Manual Standard Invoice – Invoice is Finance Team Active
With PO available for
entering into the
system.

AP002.02 Enter the Invoice transaction into the system. Internal – System Standard Invoice – Invoice available Finance Team Active
Assisted With PO for matching to
PO and receipt

AP002.04 If it is a foreign currency invoice, enter the Internal – System Standard Invoice – Invoice entered Finance Team Active
invoice amount in foreign currency. System
12
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process Elementary
ID # Description Type Business Function Result Agent Status

should be able to convert it into functional Assisted With PO in the system

currency automatically based on
corporate/user/spot rates.

AP002.05 Invoice currency should be same as PO/GRN Internal – System Standard Invoice – Invoice entered Finance Team Active
Currency. Assisted With PO in the system

AP002.06 Payment currency should be same as Invoice Internal – System Standard Invoice – Invoice entered Finance Team Active
currency. Assisted With PO in the system

AP002.07 Matching of the Invoice with PO and Receipt Internal – System Standard Invoice – Matched Invoice Finance Team Active
based on 2-way/3-way/4-way. The matching Assisted With PO with PO /
will be based on the supplier. Receipt.

AP002.08 Validate the Invoice. System would validate Internal – System Standard Invoice – Invoice is Finance Team Active
whether the invoice quantity and amount are Assisted With PO validated
same as PO /GRN

AP002.09 If some information is needed for the invoice, Internal – System Standard Invoice – Hold placed Finance Team Active
place a hold manually till receiving the Assisted With PO manually.
information.

AP002.11 Create Accounting for the Invoice and transfer Internal – System Standard Invoice – Accounting Finance Team Active
the journal entries in detail to General Ledger. Assisted With PO entries Created.

13
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

1.3 Creating Standard Invoice – Without Purchase Order (AP003)

Process: Standard Invoice –Without Purchase Business Function: Accounts Payable Date : June-2-2013
Order

Mapping Team: ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): Core (Y/N)

High Yes

Process Number: AP003 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.

14
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Event Description: This process is triggered when the services are received/any expenses incurred

Number:AP.03 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

Process Elementary
ID # Description Type Business Function Result Agent Status

AP003.01 Receive the invoices from supplier or other Internal – Manual Standard Invoice – Invoice is Finance Team Active
concerned department. Without PO available for
recording into
system

AP003.02 Record a Standard Invoice details into the Internal – System Assisted Standard Invoice – Invoice Finance Team Active
system with the correct expense account. Without PO entered in the
system

AP003.03 If it is a foreign currency invoice, enter the Internal – System Assisted Standard Invoice – Invoice Finance Team Active
invoice amount in foreign currency. System Without PO entered in the
should be able to convert it into functional system
currency automatically based on
corporate/user/spot rates.

AP003.04 Payment currency should be same as Invoice Internal – System Assisted Standard Invoice – Invoice Finance Team Active
currency. With PO entered in the
system

AP003.05 Validate the Invoice in the System. Internal – System Assisted Standard Invoice – Invoice is Finance Team Active
15
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process Elementary
ID # Description Type Business Function Result Agent Status

Without PO available for

approval

AP003.07 Create Accounting for the Invoice and transfer Internal – System Assisted Standard Invoice – Accounting Finance Team Active
the Journal Entries to General Ledger Without PO entries
generated

AP003.10 System should allow defining distribution sets Internal – System Assisted Distribution Sets Distribution Finance Team Active
and assigning them to Supplier/Invoice. Sets defined
and assigned

16
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

1.4 Creating Prepayment Invoice (AP004)

Process: Prepayment Invoice Business Function: Accounts Payable Date : June-2-2013

Mapping Team : ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N)

Yes

Process Number: AP004 Description: This Process explains the creation of prepayments, which are treated as advance payment to suppliers/
employees.

Assumptions: ADBC pays advances to the suppliers and employees.

Event Description: This process is triggered when there are any advance payments to be made to the suppliers/ employees

Number:AP.04 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

17
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process Elementary
ID # Description Type Business Function Result Agent Status

AP004.01 Receive contractual agreement for making the Internal – Manual Advance Payment Prepayment Finance Team Active
advance payment Invoice is
available for
recording into
the system.

AP004.02 Enter a Advance / Prepayment Invoice into Internal – System Assisted Advance Payment Prepayment Finance Team Active
the system invoice is
created.

AP004.03 Provide a Descriptive Flex field to capture PO, Internal – System Assisted Advance Payment DFF data is Finance Team Active
Reference details. The list should link to the captured.
PO, If it is to be referred to PO.

AP004.04 Validate the Prepayment Invoice. Internal – System Assisted Advance Payment Prepayment is Finance Team Active
validated

AP004.05 Approve the Prepayment in the system Internal – System Assisted Advance Payment Prepayment is Finance Team Active
available for
payment

AP004.06 Create Accounting for Prepayment Internal – System Assisted Advance Payment Prepayment Finance Team Active
Liability
Clearing is
created.

AP004.07 Record a payment transaction into the System Internal – System Assisted Advance Payment Prepayment Finance Team Active
Available for
application

AP004.08 Apply the prepayment upon receiving the Internal – System Assisted Advance Payment Prepayment Finance Team Active
invoice from Vendor. Applied

18
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process Elementary
ID # Description Type Business Function Result Agent Status

AP004.09 Create the Accounting and transfer the entire Internal – System Assisted Prepayment Alert is sent Finance Team Active
to General Ledger

1.5 Entering Credit Memo (AP005)

Process: Entering Credit Memo Business Function: Accounts Payable Date : June-2-2013

Mapping Team: ORAERP COM INC. Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N)

Yes

Process Number: AP005 Description: This process explains entering Credit memo.

Assumptions: Standard invoice/material is returned to the supplier

Event Description: This process is triggered if any purchase returns are there.

Number:AP.005 Type: Transaction Source Agent: Finance Team

19
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Mechanisms: System Assisted

Process Elementary
ID # Description Type Business Function Result Agent Status

AP005.01 Receive details of Credit t note from the Internal – Manual Entering Credit Credit memo is Finance Team Active
supplier or the concerned department Memo available for
recording into
the system

AP005.02 Create a Credit Note transaction into the Internal – System Assisted Entering Credit Credit Memo is Finance Team Active
system with negative value and match to a PO Memo created.
if there was a PO

AP005.03 Validate the Credit Note in the system. Internal – System Assisted Entering Credit Credit Memo Finance Team Active
Memo Validated

AP005.04 Approve the Credit Note in the system Internal – System Assisted Entering Credit Credit note is Finance Team Active
Memo available for
refund/adjust
ment

AP005.05 Create Accounting and Transfer to GL Internal – System Assisted Entering Credit Accounting is Finance Team Active
Memo created

1.6 Payment (AP006)

20
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process: Entering Payments Business Function: Accounts Payable Date : June-2-2013

Mapping Team: ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): Core (Y/N)

High Yes

Process Number: AP006 Description: This explains the processing of supplier/employee payments for making invoice payments.

Assumptions: ADBC makes payments in different types like cash, check, bank transfer, L/C

Event Description: This process is triggered when the invoices are to be paid

Number:AP.006 Type: Transaction Source Agent: Finance Team

Mechanisms: System Assisted

Process Elementary
ID # Description Type Business Function Result Agent Status

AP009.01 Enter the payment details of the supplier like Internal – System Assisted Payment Payment Finance Team Active
payment amount, bank etc. voucher is

21
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

Process Elementary
ID # Description Type Business Function Result Agent Status

created

AP009.02 System should be able to print Checks (Pre Internal – System Assisted Payment Payment Finance Team Active
printed running stationery) on payment. voucher is
created

AP009.03 ADBC does payment by Check Payments Internal – System Assisted Payment Payment Finance Team Active
mostly and cash payments very rarely. voucher is
created

AP009.04 Payment currency should be same as Invoice Internal – System Assisted Standard Invoice – Invoice Finance Team Active
currency. With PO entered in the
system

AP009.05 Create accounting and Transfer to GL. It Internal – System Assisted Payment Accounting is Finance Team Active
updates the Bank Accounts and Realized created.
Gain/Loss

AP009.06 System should allow users to void/cancel a Internal – System Assisted Payment Payment is Finance Team Active
payment. canceled/void.

AP009.07 System should print remittance advice on Internal – System Assisted Payment Remittance Finance Team Active
payment. advice is
printed.

22
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

2. BUSINESS PROCESS DIAGRAM

23
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

24
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

2.1 Invoice Process for Asset Creation:

Receive the Invoice from Supplier

Start Approve the Invoice

Create Accounting & Run Transfer to GL Program

Match the Invoice Information with GRN

25 Run Mass Addition Program to Populate Asset

Information to FA Module
System will automatically create distribution line
 Information transferred to FA Module
No Hold
RD.050 Business Requirements Scenarios Doc. Ref: RD.050
Validated the Invoice
& See Holds if any Ver 1.1 Final
Create Asset in FA Module

Hold

Correct the Invoice / Release the holds End

26
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

2.2 Invoice Payment Process:

27
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

28
RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

29