A GENRAL MANAGEMENT PROJECT ON

“General Management at DGS&D section of Indian Oil (WRO)”

UNDERTAKEN AT

Indian Oil Corporation Ltd.

SUBMITTED TO

MET INSTITUTE OF MANAGEMENT,

MUMBAI MASTER IN MANAGEMENT

STUDIES – FINANCE

BY

Karan Gangurde
(MMS BATCH – 2022-2024)

UNDER THE GUIDANCE OF

Prof. Nirmala Joshi – MET IOM

Karan Gangurde 1
 CERTIFICATE FROM
INSTITUTE

This is to certify that the project report entitled – General Management at DGS&D
section of Indian Oil (WRO) with Indian Oil Corporation Ltd. is submitted in March,
2024 to MUMBAI EDUCATION TRUST INSTITUTE OF MANAGEMENT by
Karan Gangurde bearing Roll No.051, batch 2022-24 in two years Full Time Degree,
Master in Management Studies (M.M.S.) affiliated to Mumbai University.

This is an original work carried out under my guidance. He has discussed with me
adequately before compiling the above work and I am satisfied with the quality, originality
and the depth of his work of the above qualification. While completing this project, we
found him sincere and hardworking. We wish him success in his future endeavors.

Dr. Swati Lodha Prof. Nirmala Joshi

(Director) (SIP Mentor)
MET Institute Of
Management, Mumbai

Karan Gangurde 2
 DECLARATION

I, the undersigned, hereby declare that the Project Report entitled ― General
Management at DGS&D section of Indian Oil (WRO) is written and submitted by me to
MET Institute of Management, Mumbai in the partial fulfillment of the requirement for the
award of degree of Master in Management Studies under the guidance of Prof. Nirmala
Joshi. This is my original work and the conclusions drawn therein are based on the material
collected by myself.

Place: Mumbai

Date: 30/03/2024
KARAN GANGURDE

Karan Gangurde 3
 General Management at DGS&D section of Indian Oil

Karan Gangurde 4
 ACKNOWLEDGEMENT

The winter internship opportunity I had with Indian Oil Corporation Ltd was a great chance
for learning and professional development. Therefore, I consider myself a very lucky
individual as I was provided with an opportunity to be a part of it. I am also grateful for
having a chance to meet so many wonderful people and professionals who led me through
this internship period.

Bearing in mind previous my learning, I am using this opportunity to express my deepest

gratitude and special thanks to the Mr. R.G.More , who despite being busy with his duties,
took time out to hear, guide and keep me on the correct path and allowing me to carry out
my project at their esteemed organization during the training .I would also like to extend my
gratitude to my faculty mentor Prof. Nirmala Joshi for her support throughout the internship
and for her valuable feedback.

It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to

Dr. Nirmala Joshi, Student Guide for their careful and precious guidance which were
extremely valuable for my study both theoretically and practically. I perceive as this
opportunity as a big milestone in my career development. I will strive to use gained skills
and knowledge in the best possible way, and I will continue to work in their improvement, to
attain desired career objectives. Hope to continue cooperation with all of you in future.

Thanks and regards,

KARAN GANGURDE

Karan Gangurde 5
 EXECUTIVE SUMMARY

During my winter internship at Indian Oil Corporation Ltd, I had the privilege of immersing myself
in a dynamic and highly professional work environment. Indian Oil Corporation Ltd is a leading
organization in the Oil and Gas sector in India, and my internship was a valuable opportunity to
gain firsthand experience and insights.

Over the course of the internship, I was actively involved in various projects, working alongside a
team of seasoned professionals who provided mentorship and guidance. One of the highlights of my
experience was the De-feulling accounting exercise, which allowed me to apply my academic
knowledge in a real-world setting.

My responsibilities included assisting the Senior Manager Finance, and I found myself consistently
challenged to deliver results. This experience not only refined my skills in SAP FICO ERP systems,
but it also improved my problem-solving abilities and decision-making process.

Furthermore, the collaborative and inclusive work culture at Indian Oil Corporation Ltd enhanced
my communication and teamwork skills. I had the opportunity to engage in cross-functional
collaboration, exchanging ideas and insights with colleagues from diverse backgrounds. This
experience was invaluable in fostering a sense of professional growth and adaptability.

My time at Indian Oil allowed me to gain a comprehensive understanding of the DGS&D

procurement process and its intricacies. I was exposed to emerging trends, best practices, and the
day-to-day operations of a leading organization in this domain.

Karan Gangurde 6
 TABLE OF CONTENTS
Sr. No. Particulars Page
No.
1 CERTIFICATE FROM INSTITUTE 2
2 DECLARATION 3
3 CERTIFICATE FROM COMPANY 4
4 ACKNOWLEDGEMENT 5
5 EXECUTIVE SUMMARY 6
6 TABLE OF CONTENTS 7
7 CHAPTER 1 - INTRODUCTION 8
8 RECENT NEWS 9
9 INDIAN OIL’s VISION WITH VALUES 10
10 CHAPTER 2 – WHAT IS DGS&D? 11
11 DGS&D PORTAL 13
12 INVOICE 14
13 CONTACTOR’s NOTE 15
14 OJAS PORTAL 16
15 SUPPLY ORDER 17
16 INDEMNITY BOND 17
17 CHAPTER 3 – SUMMARY OF ACTIVITIES UNDER DGS&D (WR) 18

18 BILL SUBMISSION PROCESS FOR CUSTOMERS 19

19 TOP SHEET 20
20 CHAPTER 4 – TERMINOLOGIES IN DGS&D BILL SUBMISSION 23
21 DIFFERENT TERMINOLOGIES AND KEYWORDS 23
22 MASTER PRICE LIST (MPL) 50
23 CHAPTER 5 – WHAT IS SAP ERP? 51
24 FICO MODULE IN SAP 51
25 DIFFERENT DOCUMENT TYPES 52
26 VARIOUS T CODES IN SAP 53
27 ACCOUNTING IN SAP 57
28 CREATION AND POSTING OF JOURNAL VOUCHER IN SAP 59
29 BIBLIOGRAPHY 60
30 PLAGIARISM CERTIFICATE 61

Karan Gangurde 7
 CHAPTER 1 - INTRODUCTION

Indian Oil Corporation Limited (IOCL) is one of the largest oil and gas
companies in India and is a Maharatna company, a status conferred to select
central public sector enterprises (CPSEs) by the Government of India.
Established in 1959, IOCL has emerged as a leading integrated energy company, involved in
refining, pipeline transportation, marketing of petroleum products, exploration, and production of
crude oil, natural gas, and petrochemicals.
IOCL operates the largest network of refineries in India, with a combined refining capacity that
exceeds 80 million metric tonnes per annum.
It also owns and operates one of the largest networks of pipelines for crude oil, petroleum products,
and gas transportation in the country.
The company has a vast marketing network with thousands of retail outlets spread across the length
and breadth of India, catering to the energy needs of millions of consumers.
Additionally, IOCL is actively involved in various initiatives related to alternative and renewable
energy sources, including biofuels and hydrogen.
As a key player in India's energy landscape, IOCL plays a crucial role in ensuring the nation's
energy security and meeting the growing demands of its diverse customer base.

Karan Gangurde 8
 RECENT NEWS

Karan Gangurde 9
 INDIAN OIL’S VISION WITH VALUES

Indian Oil’s vision is to be the 'Energy of India' and to become 'A globally admired company.' As
we step into an era of transformation, we are broadening our horizons, expanding across new vistas,
and infusing new-age dynamism among our employees. Our journey, which began with the merger
of Indian Oil Corporation Ltd. and Indian Refineries Ltd. in 1964, has been guided by our core
values of Care, Innovation, Passion, and Trust. These values embody the collective conscience of
IndianOil and its people, steering us towards our North Star - being the Energy of India and
Globally Admired.
Indian Oil's Rejuvenated Values are:

 Nation-First- Always On Duty to Propel the Nation

 Care will now mean – Leading with Empathy and Driving Business Vision.
 Innovation will stand for - Solving for Tomorrow and Responding with Agility.
 Passion will mean going the Xtra Mile and Daring to be Bold.

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 CHAPTER 2 - What is DGS&D?

DGS&D stands for Directorate General of Supplies & Disposals.

It was an organization under the Ministry of Commerce and Industry in India.
The primary function of DGS&D was to streamline the procurement process for various
government departments and public sector undertakings (PSUs) by centralizing the purchase of
commonly required items.

Established in 1951, DGS&D operated as the central purchase organization for the Indian
government.
It facilitated the procurement of goods and services through a framework of rate contracts, ensuring
competitive prices and timely delivery.
By leveraging bulk buying power, DGS&D aimed to achieve economies of scale and minimize
procurement costs for the government.

DGS&D played a significant role in standardizing specifications, conducting quality checks, and
negotiating contracts with suppliers on behalf of government agencies.
It also provided guidance and assistance to government departments in the procurement process,
including tendering, evaluation, and contract management.

However, in recent years, the Indian government has transitioned towards more decentralized
procurement practices and encouraged greater competition and transparency in public procurement.
As part of this transition, DGS&D was gradually phased out, and its functions were absorbed into
other entities and organizations like Indian Oil (OMC).
It aims to promote efficiency, transparency, and cost-effectiveness in government procurement
processes while also providing opportunities for small and medium enterprises (SMEs) to
participate in government contracts and the supply contracts generated under DGS&D are known as
‘rate contracts’ for supply of Oil and related products from Oil Marketing companies (OMC’s) to
different customers registered and assessed in India.
An Example, to understand Rate contracts can be studied by summarizing the Indian Railways Rate
contract for supply of HSD (High Speed Diesel) product to Indian Railways as given below:

Karan Gangurde 11
Karan Gangurde 12
 INVOICE

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 OJAS PORTAL

OJAS stands for Online Jet Fuel Accounting systems.

It is a special webpage for billing of ATF product supply to the Indian AirForce and Indian Coast
Guard.
It is a digital India initiative to expediate the procurement, supply of ATF product and payments to
Oil companies like Indian Oil.
ATF product means Aviation Turbine Fuel.
OJAS portal also provides features such as Rate checking process to filter out Invoices with pricing
differences in MPL vs SAP and invoices with no differences.
Invoices with no differences can be easily forwarded to CDA (Controller of Defence Accounts) for
receiving payment at the Western region office of Indian Oil which can be knocked off against open
Invoices in SAP.
Invoices whose rate checking failed or significant difference found greater than the allowed
deviation limit, can be followed up with the supply locations and corrective action can be taken to
resubmit such invoices.
OJAS portal also has a feature of generating MIS reports of Invoices generated in OJAS portal for
management decision making and information at all levels.
It gives MIS report of Forwarded invoices, PAID invoices and Rejected by Paying Authority
Invoices

*CDA is a payment authority which directly sends payment of invoices to western region office and
MCO is a bill submission authority which further processes the invoices and collects payment from
payer on behalf of all regional offices of Indian Oil. MCO stands for Marketing Coordination,
situated in New Delhi. It is necessary to forward physical invoices in case of MCO submission but
not necessary in case of CDA submission

Karan Gangurde 14
 What is Supply Order?

A supply order is a request to the supply location to supply mentioned product in a supply order
along with its quantity.
It is issued in the name of SENIOR DEPOT MANAGER, IOCL by the Officer commanding
incharge designated by the customer.
For Defence Customer, this supply order needs to be signed by the Major/Captain of the defence
customer.
Also, receipt voucher number (RV Number) are to be mentioned on Invoices whenever they are
forwarded by Indian Oil for payment.
A separate specimen signature form is attached along with the invoices and are sent by supply
locations to western region office of Indian Oil.

What is Indemnity Bond and why is it used in bill submission?

An Indemnity Bond is attached with physical invoice submissions when original invoice is either
lost or damaged.

Indemnity Bond states that if payment is made against the duplicate invoice and later original
invoice is produced for payment, the region office will indemnify the payer for this loss.

Karan Gangurde 15
 CHAPTER 3 - Summary of Activities under DGS&D,
Western Region

DGS&D Customers -Defence

Karan Gangurde 16
 Bill Submission process for ATF product –

 Supply location under Indian Oil uploads Form No. AV8 in OJAS portal and also sends it
physically to the defence squadron leader office
 Form No AV8 is a receipt of supply of material from Indian Oil
 Squadron leader office does digital verification and physical verification of AV8 and then
issues a physical copy of BOC (Brought on charge)
 BOC is hence physically forwarded to supply location.
 The supply location now generates invoice in SAP
 This invoice may first be provisionally issued (H series assignment) and cumulative invoice
(B series and V series assignments) may be prepared later by the supply location
 Location now processed the bills in OJAS and uploads SAP invoice (different from Tax
invoice) and the invoice is generated by issuing output to condition code ZP4B
 These ready invoices are forwarded to region office level where region office initiates rate
checking process
 Rate checking process is necessary to find any discrepancies between Invoice rates as per
SAP and as per concerned MPL (Master Price List)
 After successful rate checking process and identifying invoices with no differences, the bills
are forwarded to next level by the western region office
 These invoices are directly forwarded to CDA (Controller of Defence Accounts) a payer.

Karan Gangurde 17
 DGS&D Customers -Railways

Karan Gangurde 18
 CHAPTER 4 - Terminologies in DGS&D bill submission
1) Masters
a) User Role Allocation
The different features in the portal will be accessible to the user based on the roles created
in the system for that user. This could be achieved using the Role Allocation feature.

The various roles defined in the system are as follows:

 ADMIN - Responsible for maintenance of various masters used in the system

 DGSD - Responsible for Receiving and finalization of Challans
 SUBMISSION OFFICE – Responsible for final submission of invoices to the payer and
payment collection. Submission Office can be Regional Office, MCO, State Office or any
location depending upon the business requirement. These will be associated to an office
unit i.e. REGION, MCO, STATE or LOCATION respectively.

The Role Allocation functionality can be accessed only by HO Admin user.

The module can be accessed through the menu MastersRole Allocation as shown in the
screenshot below:

Click on Add User to add a role for an employee. Enter Employee ID and select the
required role to Submit.

Karan Gangurde 19
 In case of Submission Office Role, select the MCO Office check box if office unit is MCO. If not
MCO, then system will automatically determine the office unit as REGION/STATE/LOCATION
on the basis of user’s current location code. Refer screenshot given below:

Karan Gangurde 20
 Admin can also delete any role given to the employee by using the ‘Trash’ icon given at the end
of each row.

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 b) SAP-MPL Mapping
The functionality can be accessed through the menu Masters -> SAP -MPL Mapping. This
master is required for SAP and MPL rate checking process in challan finalization stage. MPL
pricing element comprises of a group of SAP pricing elements in the challan. This grouping
will be determined through SAP-MPL Mapping maintained in the system as shown below:

The screen shows all the available SAP pricing elements in the system and their mapping to
the MPL CODE.

To update mapping of any element, click on the check box in the last column of the row.
System will enable the MPL CODE dropdown. Select the required value. Repeat this for any
other row, if required, and then click on UPDATE to save the changes. Please note that system
will update the data of selected rows only.

Karan Gangurde 22
 c) Customer Master
Customer Master is the list of Ship to Party Codes and the corresponding Payer as per the
invoices downloaded from SAP. New Customer codes will automatically be added in the
master through the invoice download process.

Each customer and payer needs to be linked to a submission office who will be responsible
for final submission of bills to the actual payment authority. Hence, it is mandatory to update
the submission Office for each customer or else system will not allow the bills to be
forwarded to the concerned authority.

Karan Gangurde 23
 Click on the check box given in the last column to update any row. Select the required
submission office. Repeat this for other rows if requires. Then click on Update to save the
changes. Please note that system will update the data of selected rows only.

d) Pay Authority
This is the list of different Pay Authorities maintained in the system. The same can be accessed
through Masters -> Pay Authority menu.

To add a pay authority, click on ADD ROW. Enter the SAP PA Code, authority name,
associated party in the pop window as shown below and click on Submit to save the changes.

Karan Gangurde 24
 e) Payer (Sub Pay Authority)
This is the list of different Payers or Sub Pay Authority maintained in the system. The
same can be accessed through Masters -> Payer(Sub Pay Authority) menu.

To add a payer, click on ADD ROW. Enter the SAP Code, authority name, associated pay
authority in the pop window as shown below and click on Submit to save the changes.

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 f) Rate Check Limit
Rate Check Limit is to determine the deviation allowed in the Challan Finalization/Rate
Checking process. For example, if the deviation limit is defined as 10 and the absolute
difference between the Challan Value and MPL Value is less than or equal to 10, then the
challan will be finalized successfully and can be forwarded to the payer. However, if the
difference is greater than the defined limit then the system will ask the user to post the debit
credit note before sending the bill to submission office.

This deviation limit is configurable at region level as shown below:

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 2) MPL Upload
The Master Pricing List can be uploaded using the menu Import Data -> Upload MPL
Data. This functionality is accessible only to the DGSD user at regional level.

Refer screenshot below. Enter the MPL No., MPL Date and browse the MPL data file from
your system. Then click on Upload file button to upload the data.

Karan Gangurde 27
 The MPL Data file format required can be downloaded using the link given under the upload
file text box. The file should be a .csv file. A sample file format is shown below:

*Please Note that Effective Date Column should be in dd/MM/yyyy format only.

Successfully uploaded rows will be displayed on the screen as under.

This option can also be used to upload any revised data. In such a case, it is advised to upload
the entire data with the modified values.

3) Receive Challans
Challans downloaded from SAP can be received in the system using this option. The
functionality can be accessed only by DGSD users at regions through Process -> Receive
Challan menu
Karan Gangurde 28
 User can receive the challans for locations pertaining to his region only. Different filter criteria
such as Location, Payer and Challan Date has been given to fetch the downloaded challans.
Select the required filter and click on fetch Challans.

Challans will be listed as shown below:

Karan Gangurde 29
 Select the required challans and click on ‘Receive Selected Challan’ Button given at the bottom of
the
table to save the changes.

System will display the receipt status against each sap bill no. as shown below. In case of any
error, the
reason for the same will be shown under ‘Remarks’ column.

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 4) Finalize Challans
After the challans are received in the system, the same are required to be finalized before they
are sent to the submission office.

The finalization process consists of the following:

 Rate Checking or Matching process

 Posting of Debit/Credit Note to SAP

Refer screenshots given below. Select the filter criteria and click on fetch challans.

System will fetch all the received challans that are yet to be finalized and not forwarded to
the Submission Office.

Rate Checking/Matching Process:

Click on View Details button to view the pricing details as shown under. The first table shows
the SAP pricing details as received in the Invoice. The Bottom table shows the comparison of

Karan Gangurde 31
 Invoice Amount with the corresponding MPL Amount and their difference. The MPL values
shown will be taken from the latest MPL data available in the system. If MPL data is not
available, the MPL Amount will be 0 and the challan will not be allowed to get finalized.

After checking the rates, select the required row or rows to be finalized and click on ‘Finalize
Challan’
button given at the bottom of the table.

The status for each of the selected challans will be shown as given below. All the successful
cases where no difference was found will be highlighted as Green and will be available for
sending to the submission office. A challan can be finalized any number of times before it is sent
to the submission office. In case of any error, the appropriate error reason will be shown
alongside in the Remarks column.

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 Debit/Credit Posting:
In case of any difference found in the finalization/ rate checking process, system will give error
and ask
the user to post debit/credit note. Such records will be highlighted in ‘Red’ color as shown below:

Karan Gangurde 33
 Select the particular row or rows and click on ‘Post Debit or Credit Note’ button given at the
bottom of
the table. System will calculate the dbcr pricing for the selected challans and post to SAP

automatically. On successful posting to SAP, the row for that challan will be highlighted as

‘Blue’ as shown below:

The challans will now be available for submission to the submission office. The detailed
process for the same is explained in subsequent section.

1) Cancel Challan
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 This option is for cancellation of challans in the DGSD system as cancelled information is
not being downloaded from SAP. Cancel Challan option can be accessed by DGSD user
only.

Refer sreenshots given below. Enter SAP Bill NO. and click on ‘Fetch Data’.

System will fetch the details of the challan as shown below. Click on ‘Confirm Cancellation’
button to
cancel the challan.

System will allow cancellation only if the challan is cancelled in SAP or else will give error
as shown below.
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 1) Send Bill to Submission Office
After the bills are finalized by DGSD user, the same are available for submission. The
submission to the payer will be done by the Submission Office handling the payments for that
payer and customer. The responsible submission authority needs to be maintained in the
Customer Master. If not maintained, the system will not allow the user to forward the
challans/bills further.

The functionality can be accessed by DGSD user through menu Bill Submission -> Send to
Submission Office.

The finalized challans can be forwarded to submission office in bulk or individually.

Select the submission authority and click on Fetch Data. System will fetch the corresponding
finalized challans mapped to the selected submission authority. Refer screen shots given
below:

Karan Gangurde 36
 Select the required challans to be forwarded and click on ‘Send Selected Challans’ button to save
the
details.

The status will be shown as below:

In order to view the challan details, click on View Button given in the last column of the listed
table.

Karan Gangurde 37
 Click on Tracking History tab to view the tracking details of the challan.

2) Receive Finalized Bills

This option can be accessed by user with Submission Office role. The finalized challans sent
from the region are required to be received in the system by submission office.

Select the region from where the bills have been sent and click on Fetch Data.

Select the rows and enter the receipt date. By default the receipt date will be shown as the current
date.
Click on ‘Receive Selected Challans’ button to save the changes.

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 Status will be shown as below:

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 3) Submission to Payer / Final Bill Submission
This option can be accessed by user with Submission Office role only through menu Bill
Submission -> Final Bill Submission.

Select the payer and click on Fetch Data to fetch the challans available for submission. Please
note that only the challans that have been received in the above step will be visible here.

Select the required challans and click on ‘Send to Payment Authority’ Button.

The status of submission will be displayed as shown below. The selected challans will
automatically be linked to a Top Sheet No. which can be printed and used as a covering letter.

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 4) Return Bills
In case there is any discrepancy in the bills or bills returned from the payer, the same can be sent
back to the initiating region through this option. The functionality can be accessed through Bill
Submission Return Bills Option.

Select the Region to whom the bills need to be returned and select the challan date range. System
will fetch the corresponding challans that are returned from the payer or yet to be submitted to the
payer.

Select the required challan to be returned back to region and click on ‘Return Selected Bills’
button.

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 5) Receive Returned Bills

Receive bills returned by the Payer

Bills returned from the Payer the can be received at the submission office using this option. The
option
can be accessed through menu ‘Bill Submission -> Receive Returned Bills’.

Select the ‘Receive bills from Payer’ in the first dropdown and then select the corresponding payer
and
click on Fetch Data. Select the bills, enter the receipt date and remarks and click on ‘Receive Bills’
button
to save the changes.

The bills can now be returned to the Submission Office for any correction and re-finalization.

Receive returned bills from Submission Office

Bills returned from submission office can be received by the DGSD user at the region using
this option. The option can be accessed through menu ‘Bill Submission -> Receive Returned
Bills’.

Select the ‘Receive bills from Submission Office’ in the first dropdown and then select the
submission office who returned the bills and click on Fetch Data. Select the bills, enter the
receipt date and remarks and click on ‘Receive Bills’ button to save the changes.

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 The received bills can now be again finalized and resubmitted to submission office.

6) Payment Collection
The payment collection functionality can be accessed by the user with Submission Office
role. The payments collected for the submitted challans can be updated and knocked- off
against the corresponding challans using this option.

Upload CR Data
It is required to upload the CR data first before knocking off the challans. The option can be
accessed using menu Import Data -> Upload CR Data.

Select the company code and browse the CR data file from the local system and click on
Upload File button.

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 The uploaded file should be in .csv format. The template for the same can be downloaded using
the link given below the upload file option.

Successfully uploaded data will be displayed as shown below:

Update Payments
After the CR data has been uploaded, corresponding challans can be knocked off against the
payment received through this option. The functionality can be accessed by the Submission
Office using the menu ‘Payment Collection -> Update Payment’.

Select the payer and company code and click on fetch data.

System will fetch the available CR records stating the matched amount and balance amount as
shown below. Click on Select Challans to knock off the challans against the CR No.

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All the outstanding challans submitted to the payer that are yet to be closed will be displayed as
shown.

Select the required challan and the enter the amount collected for the same in Receive Amount
and click on Submit. The challans for which the whole Billed Amount has been knocked off will
be marked as closed.

System has the provision to update part payments for a challan. But a challan can be knocked
off only once against a CR NO. The rest of the amount, if any, has to be adjusted with a
different CR NO.
MASTER PRICE
LIST
 CHAPTER 5 - What is SAP ERP?
SAP ERP, which stands for Systems, Applications, and Products in Data Processing Enterprise
Resource Planning, is a software suite developed by SAP SE, a German multinational software
corporation.
SAP ERP integrates various business functions such as finance, human resources, procurement,
manufacturing, supply chain management, sales, and distribution into a single system. It enables
organizations to streamline their operations, improve efficiency, and make data-driven decisions by
providing a centralized platform for managing business processes.
SAP ERP offers modules tailored to specific business functions, allowing organizations to
customize their system according to their unique requirements. These modules can be integrated
seamlessly, enabling real-time data sharing and collaboration across different departments within an
organization.
Overall, SAP ERP is widely used by businesses of all sizes and across various industries to
optimize their operations and drive business growth.

FICO Module in SAP

SAP FICO stands for SAP Finance (FI) and Controlling (CO). It is one of the core modules of SAP
ERP and is widely used for financial accounting and managerial accounting purposes.

1. SAP FI (Financial Accounting): This module is primarily focused on external reporting. It deals
with recording financial transactions, generating financial statements such as balance sheets, profit
and loss statements, and managing financial data related to assets, liabilities, and equity. SAP FI
covers areas such as general ledger accounting, accounts payable, accounts receivable, asset
accounting, and bank accounting.

2. SAP CO (Controlling): This module is focused on internal reporting and management

accounting. It provides tools for planning, controlling, and monitoring an organization's costs and
performance. SAP CO includes components for cost element accounting, cost center accounting,
internal orders, product cost controlling, profitability analysis, and profit center accounting.

SAP FICO integration allows for seamless flow of financial data between the two modules,
ensuring consistency and accuracy in financial reporting and analysis. It enables organizations to
effectively manage their financial processes, comply with regulatory requirements, and make
informed business decisions based on reliable financial information.
*Different Document types in SAP

Type Header
DA Customer document (balances after knocking off)
DD Inter customer clearing (usually TDS deductions)
DG Customer credit memo
DX Customer e-collection
JV Journal Voucher
RV Billing document (B series assignments)
ZX Billing document (V series assignments)
SD Multiple customer collection
PP Pay roll Posting

Various T-Codes in SAP (Transaction Codes)

FBL1N – To View Vendor Transaction details (Outstanding and Cleared line items) as
on key date

FBL5N – To view Customer Transaction details (Outstanding and Cleared line items)
as on key date
An example to access this T-Code can be to view outstanding line items of Indian Airforce.
In Command field, enter T – Code FBL5N
In customer account type 100526
In company code type 3000 to 3300
In open items (Open at key date) type date of which outstanding is to be viewed.
This report can be exported to Excel sheet, to plot Invoice status against multiple line items in Excel
to generate MIS reports
Also, in case of generating common report for all defence customers, SAP provides an option to
create a Variant.
A variant is a set of specific conditions to be included in an outstanding report.
A variant can hence store a condition of providing outstanding report of open line items at one click
instead of individually giving input of customer codes each and every time.

FBL3N – To view general ledger

VF01 – Create Billing Document

(This T-Code is also used to Post/Approve Debit/Credit Note created using
VA01)

VF02 – Change/Modify Billing Document

VF03 – Display Billing Document

After entering VF03 in command field, enter SAP bill number in Billing document search
bar
In top left column go to Billing document
Click on issue output to
Select Output line mentioning various output conditions such as ZPC4, ZP4B, ZAVN,
ZPVN

VA01 – Create Credit Notes/Debit Notes OR Sales Order/Purchase Order

A debit note can be created by entering VA01 in the command field in SAP.
Order type reference can be given as “ZODR” for a debit note and “ZOCR” for a credit
note.
Then use ‘Create with reference’ to give reference billing document.
Then ENTER the billing document number with whose reference the db/cr note is to be
generated.
A reason is to be mentioned for creating such an order type.
The reason can be given as Rate difference, discount mismatch, etc.
Later, input Invoice date in pricing date. Then click on $ symbol to access pricing elements.
Now, Pricing elements are to be input as ZPRC, ZVTX and ZCS0.
These are pricing codes to distinguish price between base price and tax charged.
*A similar process is followed for credit notes but order type is to be changed from ZODR
to ZOCR.

VA02 – Change Modify Credit Notes/Debit Notes OR Sales Order/Purchase Order

This option can also be used to delete a credit / debit note which is not yet
posted/approved.
Once, a credit note/ debit note is approved it cannot be modified or deleted.
 Hence, it is important to check debit / credit notes before approving the.
Deleting db/cr notes can be done by executing command VA02 in command field.
Credit memo number needs to be typed here
After entering the elements of a db/cr note go to Sales Document and click delete.
To rectify a credit note using this T-Code, type in command field VA02
Enter the credit memo request number generated in VA01.
Select item overview
Select the credit note which is displayed with erroneous message
Select correct order reason for this credit note and click on save button.
If another credit memo number is generated save it for future references.

VA03 – Display Credit Notes/Debit Notes OR Sales Order/Purchase Order

*VA01 and VF01 are used by different employees for a same credit/debit note. The reason
behind this is one creates a debit/credit note and the other check and approves it. This is
called as maker-checker approach.

F-30 – Used for Bill vs Payment knock off, Cancel Bill knock off, etc.
In T-Code FBL5N, search for open line items of SD document type.
These document types then need to be rearranged company code (CoCd) wise using the
subtotal button available at the top operations in SAP.
Take another SAP GUI window and enter in command field as F-30.
In posting date, input the date on which payment was posted in SAP (shown in FBL5N)
For all defence customer, document type is selected as DA to store any balances after knock
off
These balances are also called residual items
In case of Coast Guard payment knock off, the balances/ residual item is stored in DD
document type.
Company code is taken as 3000 for Western region office
In Invoice Number, input Customer code of which knocking off is to be initiated,
 Header text is given as ‘Bill vs payment k/off OR Cancel bill k/off’ etc.
Clearing text is given as ‘Bill vs Paymnet knock off MCO Collection’
Then Open items need to be chosen.
Company code is to be kept as 3000 in case of cross company knocking off.
Account is the same as customer code
Account type is taken as D indicating customers.
For multiple company codes, Other accounts checkbox needs to be checked.
In additional selections, check assignments.
After giving respective company code commands, we then move to Process open items
where bill vs payment is picked and arranged by SAP after entering the respective SD
document type assignments copied earlier.
If zero difference is observed between bills vs payments, all the documents are simulated
and then posted for clearing. A clearing document number is generated which needs to be
recorded in case a knock off needs to be reversed in future date (explained in T-code FBRA)
If differences are observed in bill vs payment, Items need to be deactivated and differences
are to be taken as residual items which will be open in SAP till further action is taken.

FBRA – Reversal/Reset of cleared line items earlier knocked off using F-30

After entering T-Code FBRA in command field, Click on clearing (option available at the
topmost left ribbon)
Click on reset cleared items and execute
Reason is to be given as 01
Click reversal OR reset and reverse and execute
The earlier cleared items are now reset and open once again in SAP which can be used to
knock off against some other line items.

YVR244 – Customer Refeulling / Defeulling AV8 report

FB03 – To view Accounting document

VL03N – To Fetch Cumulative Invoice (Original assignment) from Provisional Invoice

(H series assignment)
 Type VF02 in command field.
In Billing document search bar, click more search criteria.
Paste the provisional assignment (H Series) and click start search.
SAP will now detect the provisional invoice number against respective H series assignment.
Now use Ctrl + F1 to display document flow.
Find Proforma invoice displayed and double click on it.
New information tabs will be displayed below in SAP and we need to find the preceed. Doc.
Number and copy it.
Now in another SAP GUI window, input T-code VL03N in command field.
Paste the preceed. Doc. Number in the search bar provided.
Click Display document flow or use F7 to display document flow.
Cumulative Invoice number is now displayed which is to be used to fetch original
assignment against provisional.
If cumulative Invoice is not yet generated, respective supply location is to be immediately
mailed seeking clarification.

YFR145 – Displays all details of an Invoice such as its Ship to party codes, Consignee
codes and Payer codes etc.
This T-Code also provides details on Unit quantity of invoices, date and time of preparation
of Invoices, prepared by user, etc.

YF107 – Bank Mandate Display

YVC242N – Mass upload debit/credit notes

F-02 – Create/Post Journal Voucher

SHORT QUANTITY DELIEVRY (ACCOUNTING IN SAP)

In command field type VF03.

Type in the Original Billing document number and press ENTER
In Pricing elements, view the base price and tax elements for quantity mentioned on INVOICE
Then check, the actual quantity received by the customer.
Calculate values of base price and Tax elements for the actual quantity received by customer and
for the balance, issue debit/credit note as required.
*Process of creating debit/credit note is explained in T – Code VA01
Enter pricing elements as ZPRC for base price and ZVTX for tax and ZCS0 for cess on tax if
required.
An example to further explain this can be,
Rs. 10000 bill is generated of which Rs. 8000 is price of material/product and Rs. 20 is sales tax
as applicable.
But consignee receives goods worth Rs. 6000. So, the leviable sales tax for Rs. 6000 must be Rs.
1500. And new invoice amount should be Rs. 7500 (6000+1500).
Hence the difference of Rs. 10000 and Rs. 7500 i.e Rs. 2500 is known as short quantity
delivered.
A respective credit note must be created with this invoice reference where ZPRC – Rs. 2000
(8000-6000) and Rs. 500 (2000-1500)

UPDATION OF TEXT IN SAP OPEN LINE ITEMS

Enter in Command Field FBL5N

Customer Account as mentioned in Control sheets received for updation.
e.g – 100527 INDIAN ARMY
Company Code 3000 to 3300
Take line items which are open as on date
Now SAP will display open line items of that respective customer.
Search for same assignment numbers as given in Control sheet and double click on the founded
assignment number in SAP FBL5N
Use edit button and remove existing text if any
Now type in the Control Sheet Number / BR Number generated mentioned on the Control sheet
against respective assignment.
This task can be made easy using filter of location code on assignment number in SAP.
CREATION AND POSTING OF JOURNAL VOUCHER IN SAP

Creating and posting a journal voucher in the SAP FICO module involves several steps. Here's a
detailed guide:
Navigation to the Journal Entry Transaction: Navigate to the transaction code "F-02" using the
SAP Easy Access Menu or by typing "F-02" in the command field.
Enter Document Date: Enter the date for the journal voucher in the "Document Date" field. This
date represents the date on which the transaction will be posted in the system.
Enter Company Code: Input the company code for which you are posting the journal voucher. The
company code determines the financial data that will be affected by the transaction.
Enter Currency: Specify the currency for the journal voucher. This is usually the currency of the
company code, but it can be different depending on the transaction.
Enter Reference Document: Optionally, you can enter a reference document number to associate
the journal voucher with a particular reference or document.
Enter G/L Account: Enter the G/L (General Ledger) account to which you want to post the debit
or credit entry. You can either enter the G/L account directly or use the search help functionality
to find the appropriate account.
Enter Debit or Credit Amount: Depending on whether you are posting a debit or credit entry, enter
the corresponding amount in the "Debit" or "Credit" field. The debit and credit amounts must
balance to zero.
 Enter Text: Provide a description or explanation of the transaction in the "Text" field. This helps
in identifying the purpose of the journal voucher.
Save the Document: Once you have entered all the necessary details, save the journal voucher
document by clicking the "Save" button or using the shortcut Ctrl+S. SAP will generate a
document number for the journal voucher.
Review and Post: Before posting the journal voucher, review all the details to ensure accuracy.
Once you are satisfied, you can post the document by clicking the "Post" button or using the
shortcut Ctrl+Shift+F1.
Check Posting Status: After posting, check the posting status to ensure that the journal voucher
has been successfully posted. You can do this by navigating to the transaction "FB03" (Display
Accounting Document) and entering the document number.
Document Verification and Approval: Depending on your organization's internal controls, the
journal voucher may require verification and approval from appropriate personnel before
posting. Ensure that you follow your organization's procedures for document approval.

BIBLIOGRAPHY

IndianOil | The Energy of India | Indian Oil Corporation Ltd. (iocl.com)

https://www.guru99.com/introduction-sap-fico.html

Providing an Overview of SAP S/4HANA

PLAGIARISM CERTIFICATE