Analysing Financial and Accounting Information Systems in SAP

These systems make usage of information and communications engineering in fiscal operations to back up direction and budget determinations and the readying of fiscal studies and statements. These systems computerize the fiscal direction ( PFM ) processes, from budget readying and executing to accounting and coverage, with the aid of an incorporate system.

A finance and Accounting Information system shops, organizes and makes entree to fiscal information easy. It shops fiscal information associating to current and past old ages ‘ disbursement, but besides shops the approved budgets for these old ages, inside informations on influxs and escapes of financess, every bit good as complete stock lists of fiscal assets.

The information is stored in the undermentioned way-

Simple General Ledger System to a comprehensive system turn toing Budget, Revenue, Expenditure Control, Debt, Resource Management, Human Resources, Payroll, Accounting, Financial Reporting, and Auditing procedures.

BEPL reduced clip, runing costs, expense ratios and hazard in finance and production section by implementing SAP through an automated, incorporate procedure.

General ledger – SAP supply a comprehensive image for external accounting and histories – to the full integrated with all other operational countries to guarantee complete and accurate accounting informations.

Histories receivable – Sap record and pull off client accounting informations via the histories receivable constituent, linking histories receivable straight to the general leger utilizing a particular rapprochement history.

Histories collectible – Sap record and manage seller accounting informations via the histories collectible constituent, linking histories collectible straight to the general leger utilizing a particular rapprochement history.

Tax accounting – SAP, you get full support for the computation and coverage of revenue enhancements on gross revenues and purchase

Features of SAP Business One

Accounting – automatically manage all cardinal accounting procedures, such as journal entries, histories receivable, and histories collectible

Controling ( or be accounting ) – accurately pull off hard currency flow, track budgets, and compare existent and planned figures

Banking and rapprochement – Quickly procedure all rapprochements and all bank statements and payments by assorted methods, including cheques, hard currency, recognition cards, and bank transportations

Fiscal coverage and analysis – Make a broad scope of criterion or customized fiscal studies from realA­time informations for concern planning and audit reappraisals

Need for Accurate Cost Accounting

The production section in peculiar needed an substructure that would enable fast, accurate cost accounting in order to advise direction of the position of assorted undertakings and their attachment to be marks. Given the impacts of hazard on the determinations made by every group in the organisation, this atomization made it necessary for everyone to do important attempts to increase visibleness of the hazards they were pull offing in their daily work.

In taking a seller, it identified the demand for a solution that was scalable for future enlargement, and was superior in footings of capableness, dependability, and easiness of usage. Management faced some opposition from production squads and administrative staff, who considered the execution of solution to be an extravagancy. The direction worked difficult to obtain buy-in to the undertaking throughout the company by stressing the long-run position, set uping a crystalline fiscal construction and sound concern procedures based on best patterns would present benefits that justified the investing.

Histories Related Activities:

Expense Budget

Preparation of Annual Expense Budget ( month-wise ) for the twelvemonth.

Pull offing the Branch Expenses within the canonic imprest bound and directing expense statement along with disbursal verifiers to VP ( M ) every Saturday.

Fixing discrepancy analysis of existent disbursals v/s budgeted disbursals with due justification.

Banking

Guaranting timely deposition of all the checks and transportation of financess as per HO A/c instructions.

Submiting bank study to Manager – CSA ( HO ) on monthly footing.

Outstanding Statement

Taking blessing on debit / recognition note, etc. from VP ( M ) and directing it to Manager – CSA ( HO ) on Daily footing.

Updating subdivision O/S statement on day-to-day footing.

Sending outstanding statement to clients and obtaining history verification from them.

Collection of Gross saless Tax Forms

EXPENSE BUDGET

Preparation of Annual Expense Budget ( month-wise ) for the twelvemonth

Every twelvemonth during the first hebdomad of March the Branch Head will fix Annual Expense Budget for his several part and submit it to VP ( M ) for blessing. While fixing this disbursal budget the Branch Head will guarantee that the entire disbursals per unit of concern generated

are reduced or at the most maintained at the same degree of old twelvemonth. However in instance any excess ordinary disbursal is expected which is inevitable Branch Head will give due justification for the same. Further in instance disbursal under a peculiar caput is expected to travel beyond coveted bound Branch Head will try earnestly to cut down the disbursals under other caputs in order to maintain the overall subdivision disbursals within the expectable bound.

Pull offing the Branch Expenses within the canonic imprest bound and directing expense statement along with disbursal verifiers to VP ( M ) every Saturday.

Once the Annual Expense Budget is approved by VP ( M ) the Branch Head will guarantee that the existent monthly disbursals of the subdivision are kept within the canonic bounds. To guarantee that the disbursals are kept under cheque Branch Head must reexamine on hebdomadal footing the existent disbursals incurred during the hebdomad and take suited remedial/corrective steps wherever and whenever required.

Since the imprest sum is limited Branch Head must direct sporadically expense statement in the format as prescribed by the Accounts Department, along with relevant disbursal verifiers to VP ( M ) for his blessing and timely reimbursement of disbursals. It is suggested that this exercising is done on every Saturday which will guarantee that the reimbursement sum is received every hebdomad and no state of affairs arises wherein the subdivision work suffers on history of non-availability of hard currency.

( degree Celsius ) Variance analysis of existent disbursals v/s budgeted disbursals with due justification.

B. Banking

( a ) Guaranting timely deposition of all the checks and transportation of financess as per HO A/c instructions.

( B ) Submitting bank study to Manager – CSA ( HO ) on monthly footing.

C. OUTSTANDING STATEMENT

Collection of Debtors

Procedure for Credit memo Request procedure for Qty Discount, Sp. Credit memo/Debit memo will be followed in SAP through dealing codification “ VA01 ” Doc Type “ ZCRQ, ZCR, ZDR severally.

( a ) Taking blessing on debit / recognition note, measure price reduction, etc. from VP ( M ) and directing it to Manager – CSA ( HO ) on Daily footing.

( B ) Updating subdivision O/S statement on Daily footing.

( degree Celsius ) Sending outstanding statement to clients and taking history verification from them.

New Colour Development:

New coloring material development and matching is the strength in ABS selling non merely to acquire into concern but besides to retain the client on long term footing on the strength of coloring material consistence and exclusivity. The undermentioned process shall be followed, so that Branch Heads can give committednesss to the clients sing developments of new colorss. New color shall be matched merely if possible is for a lower limit of 3 MT per month.

a ) Requisition for Colour Matching:

The Branch Head shall direct requisition through Quality Notification in SAP for coloring material matching to VP ( Works ) / DGM ( Compdg. ) / Colour Matching Dept. ( CMD ) giving the inside informations as mentioned in the Annexure 5.

B ) Developing Colour

On reception of requisition from the Branch Office, DGM ( Compdg. ) shall look into the handiness of necessary pulverization every bit good as pigment stocks in works and shall rede Branch Head through VP ( M ) in instance of likely hold beyond 15 Days. Thereafter, the coloring material fiting requisition shall be sent to CMD by DGM ( Intensifying ) .

degree Celsius ) Submission of Colour Chips:

Intensifying Department shall develop the coloring material french friess and DGM ( Compdg. ) will direct the same to respective Branch Head constantly within one hebdomad with an hint to VP ( M ) / VP ( Works ) . Colour french friess moulded at different temperature parametric quantities and rhythm clip should be sent. Colour codification shall be provided by CMD. Even after following up with VP ( Works ) if colour french friess are non received within 15 Days, so Branch Head will bespeak VP ( M ) to make needed

vitamin D ) Colour Approval by Customer:

Branch Head will send on the coloring material french friess received from works to respective client alongwith covering missive as per format given in Annexure 24. Final coloring material blessing from the Customer must be obtained by taking their blessing signature on the contrary of the color french friess and one each of such color french friess shall be retained with several subdivision office every bit good as VP ( Works ) / DGM ( Compdg. ) / CMD. The Branch Head will so raise a Gross saless Order ( DA ) for 25 kg stuff as “ free sample ” for taking test of the stuff. Once the test is approved at client ‘s terminal, the Branch Head will obtain commercial orders from the client. Approval of Colour Chip shall be updated in the Quality Notification by Sr Manager ( CMD ) .

vitamin E ) Costing:

VP ( Works ) will direct a communicating to VP ( M ) with a transcript to ED ( C ) , on the existent costing of the coloring material and a determination shall be taken by ED ( C ) whether to market it as a particular coloring material at a higher monetary value or at standard monetary value as a selling scheme.

At the clip of first commercial order being serviced, the works will direct 10 coloring materials french friess to each Branch Office/Sub-Branch Office at assorted locations. Once the new coloring material is successfully commercialized, VP ( M ) will pass on to all the other parts so that they can advance the new coloring material wherever possible.

Payment Footings:

The order is processed merely when payment is against Letter of Credit ( L/C ) . Sr. Manager ( CMO / Exports ) shall analyze the original L/C received from the client and arrange to acquire amendments made ; if required.

Once the clean L/C is received, Exports Dept. will fix Gross saless Order ( DA ) , get the blessing from VP ( M ) and send the Gross saless Order ( DA ) to Unit I / Unit II.

12 Statutory Requirements

Branch Office maps are capable to scrutiny by statutory governments. Branch Head being the chief officer of the company in the several location, must adhere to the Company Policy, Central Govt. Laws, several State Govt. Laws, regulations and ordinances of other governmental agencies/local governments, etc. and keep up todate records as he is answerable to the statutory governments for their several operations.

Gross saless Tax Requirements

As Gross saless Tax governments have legal power over operations, it is compulsory for all Branch Heads to keep records of all the clients ‘ w.r.t. transcripts of bills, CNs and DNs.

Govt. Laws, regulations and ordinances of other governmental agencies/local governments, etc. and maintain upto day of the month records. Branch Head will besides guarantee that the Consignment Agents abide by all the clauses set out in the Agreement signed by them.

Collection of ST Forms

As explained earlier one time the gross revenues have been effected under Concessional Gross saless Tax Form, such as Form ‘C ‘ / Form ‘F ‘ , etc. it is highly of import that these signifiers are collected from the clients in clip and sent to CSA-HO.

Branch Head will guarantee that the Gross saless Tax Forms are collected from the clients in clip and sent to CSA-HO by maintaining photo transcripts for subdivision record. Branch Head will guarantee that all the needed information and ST Forms are submitted to Gross saless Tax Governments at the clip of Gross saless Tax Assessment.

Shops and Constitutions Act

Branch Head will corroborate conformity with processs under Shops and Establishments Act like Notice Board show, office timings, figure of individuals employed, etc. , every bit good as assorted registries to be maintained. As Torahs in each State are different, several Branch Head must follow the prescribed jurisprudence and confirm to HO on monthly footing that the same are complied with. List of paperss being maintained shall be furnished to HO-P & A ; A section.

Professional Tax

Payment of Professional Tax wherever applicable shall be made at a several location and returns filed consequently. Branch Head will look into upon the same and follow the processs under advice to HO-Accounts.

Earlier system

In BEPL, ab initio Oracle was used as package but it was really hard to keep fiscal records and historical informations.There were 10 to 12 comptrollers who were pull offing histories and finance records. This created confusion and was really hard to manage them.

Compared to SAP, it did non hold many faculties. It did non run into high degree of security and dependability. So BEPL installed SAP.

SAP chosen as New System

SAP ( Systematic Application Products ) is the taking Enterprise Information and Management Package worldwide.

It make possible to track and pull off gross revenues, production, finance accounting and human resources in an endeavor.

A company has many separate systems to pull off different procedures like production, gross revenues and accounting. Each of these systems has its ain databases and seldom base on ballss information to other systems in a timely mode.

SAP takes a different attack. There is merely one information system in an endeavor, SAP. All applications entree common informations.

Accounting is done automatically by events in gross revenues and production. Gross saless can see when merchandises can be delivered. Production agendas are driven by gross revenues.

Why SAP?

It is to easy to utilize and high dependability and handiness of more faculties. It creates more efficient accounting system. It helped in cut downing cost and increased efficiency. It implements a flexible, scalable solution for pull offing company growing.

By implementing SAP, finance section got acquainted with the market monetary value of the ABS and they do n’t necessitate to reach other individual. This has helped in cut downing cost and increased efficiency.

Change in the concern procedure

Configuration of new system made it easy to keep fiscal records and information. It has increased the day-to-day hard currency processing liberating up staff clip for other analysis. With day-to-day posting rapprochement, the quality of information has improved. As a consequence the month terminal shutting procedure do non devour much clip.

The elaborate bank history statements update the gap leger balances of the hard currency place and are automatically posted to the SAP R/3 general leger as a portion of an machine-controlled rapprochement of anterior twenty-four hours activity.

The history section do non hold to pass yearss doing journal entries or working on the month terminal shutting. All the entries are booked on twenty-four hours to twenty-four hours footing.

Faculties of SAP

Sap contains 72 faculties. Some of them are as follows:

Gross saless Opportunities Module, where bing clients and possible histories are structured trailing.

Gross saless Module, where orders are entered, shipped and invoiced.

Production faculty where gross revenues are forecast in production planning theoretical account.

Buying Module, where purchase orders are issued and goods received into stock list.

Administration Module, where constellation is performed.

Financials Module, where assorted accounting and fiscal activities are conducted..

Consecutive Walk in SAP

Gross saless

Pre-sales activity — planning and handiness support for the gross revenues forces

Gross saless Order — The existent entry of the gross revenues order into the system done by the sales representative at the point of gross revenues possibly utilizing a Personal computer and Internet connexions.

Determining where the most efficient beginning of the ordered merchandise is in stock list and transportation it.

Delivery.

Customer Billing.Customer Payment.

Production

Gross saless and Operationss Planning SOP where the gross revenues prognosiss are used in a production planning theoretical account to look into feasibleness.

Master Production Scheduling MPS — The existent program for the whole production procedure.

Material Requirements Planning MRP — Where the production program is really converted into natural stuffs input demands.

Planned Order — When stuffs are available and capacity exists this program is created and so converted into a Production Order.

Shop Floor Control where the existent production takes topographic point and is registered into the system as finished goods.

Buying

Requisition — Once the Production director programs to fabricate something a requisition for the natural stuffs required but non on manus must be prepared.

Vendor Selection — made by the buying section.

Purchase order sent.

goods receipt increasing stock list.

Invoice confirmation as it is received from seller.

Payment to seller.

Finance and Accounting

Gross saless events must be captured at the proper clip into the leger system

Inventory must be adjusted to fit goods shipped.

Inventory must be adjusted to fit natural stuffs received.

Inventory must be adjusted to travel value from natural stuffs to work in procedure.

Inventory must be adjusted to increase finished goods when they are produced.

Histories Collectible must be set up for purchases.

Histories Receivable must reflect goods billed but non yet paid for.