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Business Module Business Process Description As is Process Reference

Electric Switchgear & Bath fittings Finance GL Accounting GL Accounting

FI_Requirem ent.xls

HILPBBDFI05

1.

General Explanation Requirements & Expectations

General Explanations: The central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. In SAP, recording all business transactions is fully integrated with all the other operational areas of a company. All the financial transactions from different modules are linked to the FI module via G/L accounts. This ensures that the accounting data is always complete and accurate Actual individual transactions can be checked at any time in real-time processing by displaying the original documents, line items, and transaction figures at various levels G/L Master Data: The G/L account master records control the posting of accounting transactions to G/L accounts and the processing of the posted data.
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A G/L account can be created in the following ways: 1. Company code level 2. Chart of Accounts level This bifurcation is done so that company codes with the same chart of accounts, if required can use the same G/L accounts.

Different Views in General Ledger Master Data: Chart of accounts Data The chart of accounts area contains the data that is valid for all company codes using, such as the account number, account group etc. In the chart of accounts area, you can block A master record for creating in the company code A G/L account for posting

The chart of account Segment contains the following fields. Account Group: Each G/L account must be assigned to a Account group. The account group determines the following in a G/L Master data o The Number Range of the G/L Account o The field status of the G/L Master Data Balance Sheet Account / P&L Account Indicator: The indicator that specifies whether the
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account is a balance sheet account or a P&L statement account. Account Description (Short & Long Text):

Company code Data The company code data contains data that is specific to a company code and may vary from one company code to another. In the company code, you can only block A G/L account for posting Account currency: The account currency defines

the currency used for postings made to this account and also defines the currency in which transaction figures are updated and the account balance is displayed Tax Category (if applicable): In tax accounts, it is possible to specify the type of tax on sales/purchases (input or output tax) that can be posted to the account. Reconciliation accounts for account type e.g.

vendor, customer and assets: You use this field to indicate G/L accounts as being reconciliation accounts. For each sub-ledger account, at least one reconciliation account is kept in the general ledger. This reconciliation account is mentioned in the master data of such subledger. When an account is posted in the sub-ledger, the system automatically posts to the corresponding
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reconciliation account. Open Item management Indicator: This indicator denoted that the line items in this account is marked as open or cleared. The balance of an account with open item management is equal to the balance of the open items. General ledger accounts are kept with open item management if there is a need to check whether there is an offsetting posting for a given business transaction Line Item display: This indicator in the master record for an account denotes that all line items that have been posted to this account are displayed.. Field Status group: This is used to define which fields are displayed when an accounting transaction is posted to a G/L account. A field may have one of the following statuses: o o o Hidden (suppressed) Required Entry Optional Entry

Requirements & Expectations: o Recording all business transactions in SAP with all other operational areas o To ensures that the accounting data is always complete and accurate. o Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger accounts o Complete centralized, record of all business reference transactions for rendering and of up-to-date

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accounts. o Comprehensive reports to be processed with respect to the business transactions o Accurate and timely preparation of final accounts and financial statements

Proposed Business Process

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COMPANY CODE: Company Code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. The process of external reporting involves recording all relevant transactions and generating all supporting documents required for financial statements (balance sheets, profit and loss statements and so on.)

It is a four character alphanumeric key and is entered while posting business transactions or creating company code-specific master data like G/L Master Record, Vendor Master Record, for example. This Company Code has its own operational chart of accounts and a Fiscal Year for creation & closing of Books of Accounts. Each Company Code has one local currency in which the transactions are recorded in addition to the Transaction Currency. To meet the statutory business requirements, the following company codes are created: Company Code Code Havells India Ltd. TTL Ltd. Standard Electric Ltd. Guptajee & Co. The coding of the Company Codes shall be decided in due course. BUSINESS AREA Business areas are used to facilitate external segmental/ Statutory
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3. Special Organizational Considerations New GL account should be opened only after necessary approvals and only one person should be authorized to open a new GL account. Also, no changes should be made to GL account master and account assignments without proper authorization. The deletion of an account group is possible only if no G/L account master records exist for this account group.

4. Changes to the Existing Organization

5. Description of improvements There would be automatic and simultaneous posting of all subledger items in the appropriate general ledger accounts (reconciliation accounts). General ledger and cost accounting areas will be updated simultaneously.

6. Description of Functional Deficits NA 7. Approaches to covering Functional Deficits NA

8. Reporting Requirements Various sorts of reports relating to G/L accounts are already available in SAP. Mostly all sort of reporting requirement can be fulfilled by the reports available in SAP

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9.. Development Requirements NA

10. Layout Sets Requirements NA

Project Vibgyor-HIL Team Name Mr. Mr. Mr. Designation Module Team Lead Business Process Owner Project Manager Signature Date

Project Vibgyor-SISL Team Name Mr. Mr. Designation Functional Consultant Project Manager Signature Date

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