Bennett, Coleman & Co. Ltd.

Version: 2010-11; FI 1005 Original Issue date : 28-July-2010

Area : Financial Accounting – Group Company Transactions Revision date :

• A move towards Group Company transaction rationalization

• Eliminate manual account reconciliation across the Group companies
Objective • Facilitate Related Party Transaction reporting requirements under Companies Act
• Improved operational discipline on inter Company transactions
• A move towards Group Consolidation under IFRS convergence

Input Source / Responsibility

Responsibility • Head – Financial Accounting

Responsibility
Records to be • Original Invoice / Debit / Credit Note Document duly supported by RO /
and
Maintained: PO and Business Head’s approval
Documents
Source • Business Heads

SAP Trans Code • ZFIINTCOMP

Activity Operating Guidelines

• Finance User will generate accounting entry in Inter Company Transaction Module
based on the Invoice Document or any payments made on behalf Group
Companies
• After completing the accounting entry, the user will have the option to park the
accounting document
Process
• Account Supervisor will authorize the transaction in SAP based on the original
Involved
documents such as Vendor Invoice, Release Order, PO and confirmation of services
(Sending
• After posting the transaction to Financial Accounting, the user will have following
Company)
options
o Attach supporting documents pertaining to this transaction
o Intimation in the form of email to respective Finance Head of the receiving
Company.
Operating
o Option to print the Group Company Invoice / Debit Note
Guidelines
• The finance user will be required to input the following data during the accounting
process

Basic Data Input / Selection Remarks

Account Type Vendor / Customer Select Customer in case of Invoicing
Data Input
and Vendor in case of payment
(Sending
Transaction Selection from the Select Invoice / Credit Memo / Loan
Company)
drop down given / repayment
Business Selection from the Select right and appropriate nature of
Transaction drop down transaction from the master (If not
found, request you to approach Mr.
Madhusudan Sawant, BCCL Finance,
Mumbai)

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Basic Data Input / Selection Remarks

Sender Company Selection from the Select the respective sending
drop down Company Code from the master
Receiving Selection from the Select the respective receiving
Company drop down Company Code from the master
Reference Input Input SD Module Document Number
After completing the above parameters, the user needs to press “Enter” button to
arrive the screen layout for the proposed transaction
Customer Display Derived by the system
Vendor Display Derived by the system
Spl GL Indicator Input from the top Relevant only in case of Loans (L) and
down Advances (A)
Document Date Input Enter the Reference Document Date
Posting Date Input Enter posting date (Accounting Date)
Amount Input Enter the invoice / debit note value
(Gross)
Reference 1 Input Enter Release Order No
Reference 2 Input
Header Text Input Short Narration of the Transaction
Person Input Input name of the person who has
Responsible requested service/ RO released
GL Account Display
(Sender) Derived based on the Business
GL Account Display Transaction Master
(Receiver)
Debit / Credit Display
Amount Input Input Invoice Value
Tax Code Modify Derived from the Business
Transaction Master with option to
change
Assignment Input Input Cheque Number in case of
payouts (Settlement / Loans etc)
Cost Centre Input
Profit Centre Input
Business Area Input
Business Place Input
Text Input Input detailed narration about the
nature of services which will get
printed on the invoice document
.
Parameters
to be used Business Nature Account Business Spl GL Indicator
while raising Type Transaction
Invoice /
Debit note Invoice raised for services Customer Invoice Not Applicable
from sending Credit
company Reversal of Invoice raised Customer Not Applicable
Memo

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Loans given Customer Loan L - Loan

Loan
Repayment of Loan Vendor L - Loan
Repayment
Interest on loan given Customer Loan Not Applicable
Funds Transfer - Out Customer Invoice A - Advance to Sub
Reimbursement of Expenses Customer Invoice A - Advance to Sub
Credit
Payment against Invoice Vendor Not Applicable
Memo
collection / Credit Transfer to
Vendor Invoice A - Advance to Sub
Group Company
• Receiving Company Finance User should review the open items lying in Group
Company Accounting Module on day to day basis

Process • If any dispute observed, the user will capture the nature of dispute in the field
Involved provided for
(Receiving • Coordinate with the sending company for resolution of dispute by obtaining clarity
Company) on the transactions including necessary supporting documents
• On receipt of original documents including RO, Internal approvals etc., the
receiving company user will post transaction after due validation process

• The finance user will be required to input the following data while posting
Incoming Documents.

Basic Data Input / Remarks

Selection
GL Account Display System to default GL code based on Business
(Receiver) transaction master with option to change.
Data Input
Cost Centre Input
(Receiving
Business Area Input
Company)
Business Place Input
Internal Order Input
Text Input Input detailed narration about the nature of
services which will get printed on the invoice
document
TDS Vendor Based on Vendor Master setting, the system will
Master prompt the user to select relevant TDS Code
.
Accounting • TDS deducted by service receiving Company will get accounted by the sending
of TDS company.

• Financial Accounting transaction created in Group Company Transaction Module

should be accounted within 15 days from the date of creation.
Controlling • During the half yearly and annual closing process, there should not be any open
Measures item pending for accounting purpose.
• On weekly basis, BCCL GL Team will generate report on overdue pending
transaction for accounting across the Group (More than 15 / 30 / 45 days)

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• Any major dispute arising out of transaction will be handled centrally by BCCL GL
Team across the Group

Create & Post Send Validate the Post the

Flow Chart Accounting Documents to Invoice & Transaction to
Entry receiving Supporting FI Module
company

• All payouts / receipts among Group Companies should be accounted through this process module by
issuing manual Cheques / bank transfer letter
Impact
• Invoices raised through MM and SD Module on Group Company should be routed through “Parking
Analysis
Account” (GL : Advance to Subsidiaries)
(Highly
• Finance user should not use reverse document option in SAP for the transactions routed through this
Critical)
process module (FB 08) instead use Credit / Debit Note provided in the process module

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FIRST SCREEN

For raising invoice on receiving company

click Here

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Select Account type,

Transaction Type, Business
Nature, Reference ,Sending &
Receiving Company and then
press Enter

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Enter Amount, Profit

Centre, Business Area,
Business Place, Text, etc
for line item for Sender
Company “S”

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PRESS
CHECK TAB

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Press Park
Document

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Note document
No.

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Option to View Parked Invoices raised on Group Company

“Execute”

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“DOUBLE CLICK ON CONTROL NO.”

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“PRESS POST DOCUMENT TAB”

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Note FI
document No.

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View of Financial Document

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Accounting of Invoice in Receiving Company

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Select parameter viz. Receiving company code, Business Transaction, Sending company
code and press “EXECUTE”

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System will display the list of Invoices raised on receiving company.

Double click on the control doc no which you want to account in receiving company.

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Enter Posting date and Cost Centre, Business Area, Business place and text against the
Receiving company line item “R”

Press “Post Document” tab to post the document.

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User can view the document posted in books of receiving company

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Accounting of TDS deducted by receiving company in books of Sending company

“PRESS TDS RECIEVABLE ADVICES”

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Enter parameter viz. Sending company and Receiving company code and radio button
“TDS Entry pending” and then excute

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Double click on TDS Amount

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System will default for TDS GL code with option to change. After validating GL a/c user
to post the document.

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“REFRESH REPORT”

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The revised report shows “X” under column “TDS Post” against the selected invoice.

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