FINANCIAL AND ACCOUNTING INFORMATION SYSTEMS AT PANTALOONS

Over the past old ages, minutess in concerns have been increasing at a larger gait. To manually hold its histories and finance sorted was really hard. Hence companies went for basic accounting package ‘s like Tally for pull offing its histories. But as the companies expanded both in size and geographically it became hard to incorporate the companies separated by distance. Hence, came an epoch where major information engineering companies developed information systems which helped them non merely to incorporate the company whose assorted divisions were separated geographically but besides helped in incorporating assorted sections a company like integrating of the gross revenues and production sections and such other sections.

Hence came the different information systems like:

  • Gross saless and Marketing Systems
  • Fabrication and Production Systems
  • Window on Organizations
  • Finance and Accounting Systems
  • Human Resources Systems
  • Why Use Information Systems?
  • Helps in Inter organisation communicating.
  • Very fast executing of Business procedures.
  • Maintain H.R. records easy.
  • Helps in Assets protection, right of first publications and patents & A ; hallmarks.
  • Helps in Time- Sharing that makes it possible to work 24 Ten 7.
  • Helps in accomplishing strategic Business aims.

FINANCE AND ACCOUNTING INFORMATION SYSTEMS:

The finance section of any company is one of the most of import sections. It fundamentally deals with

All the fiscal affair of the company and is besides responsible for pull offing the house ‘s fiscal assets, such as hard currency stocks, bonds and other investings to maximise the house ‘s fiscal assets.

The finance map is besides in charge of pull offing the capitalisation of the house.

To find whether the house is acquiring the best return on its investings, the finance map must obtain a considerable sum of information from beginnings external to the house.

The accounting map is responsible for

Keeping and pull offing the house ‘s fiscal records-receipts, expenses, depreciation, payroll-to history for the flow of financess in a house.

Finance and accounting portion related problems-how to maintain path of a house ‘s fiscal assets and fund flows and fix balance sheets

They provide replies to inquiries such as these:

What is the current stock list of fiscal assets?

What records exist for expenses, grosss, paysheet, and other fund flows?

Making all the above fiscal undertakings manually without the aid of work incorporating systems is a really boring undertaking and therefore big Organized Retail Companies like Pantaloons which is spread out all over the state had to choose for such fiscal information systems.

Shown above are the different faculties of an Accounting and Financial systems and the degrees at which they work in an organisation.

For illustration: A company usually aims of holding ends set for a twelvemonth of accomplishing a specific growing rate or of holding a certain sum of net income for a twelvemonth. This can non be done nightlong. This needs a longer period of clip affecting different types of schemes. Hence to do such schemes a Net income Planning system is used.

Invoice and Customer Data To Generate Ledger

Histories Master File

Reports

Systems

Online Questions

Shown above is the working of a general Finance and Accounting Information Systems.

AT PANTALOONS

In about the twelvemonth 2003, the systems at Pantaloon were running on a usage built platform, with Retail Enterprise Manager ( REM ) as the cardinal application. The company was besides running other standard applications like Tally, etc. But this substructure did non impart itself to the meteorologic growing graduated table envisaged by the company. That ‘s when things needed a spot of turn. The Information Technology head Mr. Deshpande and his squad started measuring the options at manus.

After much elaborate analysis, Pantaloon zeroed in on SAP. It deployed all the major SAP solutions, viz. , mySAP CRM, mySAP SCM, SAP NetWeaver, etc. As quoted- “ We are extensively utilizing these applications and have over 3000 users on the system. In the past 15 months that we have gone unrecorded on SAP, we have already crossed 9 million purchase orders in the system and are paying our sellers through 167 Bankss integrated in our system, ” says Deshpande.

What is SAP?

SAP is taking Information Systems supplier all over the universe with one of its chief clients being Pantaloons. SAP makes many sorts on Information Systems which include Gross saless and Marketing systems, Finance and Accounting Systems and HR systems besides.

Why SAP systems were needed?

SAP was fundamentally selected because:

Pantaloons fundamentally wanted to better fiscal trailing and besides wanted to better coverage for all retail locations.

Pantaloons functionaries wanted more real- clip information for better determination devising.

The accounting was really hard without any system in such a quickly spread outing environment.

Speed up the rapprochement and shutting procedures.

Why was SAP selected?

Pantaloon ‘s successful path record with SAPA® package

The package ‘s scalability and easiness of integrating

The package ‘s ability to run into company demands ( a “ perfect tantrum ” for an endeavor broad execution )

Complete informations unity and real-time updates

Adept support during migration attempt, including support for papers splitting

Ability to shut books 15 to 20 % faster.

Initially to pull off Pantaloons was much easier but as it started diverging into more and more sectors so the existent trouble came out. To pull off such a diverse and broad spread endeavor Pantaloons needed a much clear position of its Financial Status which included net income Centres and other retail mercantile establishments. But this was a boring undertaking.

Initially the company used SAP ERP fiscal solutions. This served the intent for the company for some clip. But subsequently the efficiency of such a system went much down as the figure of retail mercantile establishments were increasing. When the retail mercantile establishments exceeded 2000, the company decided to travel to another application which was SAP General Ledger Application. The new system had the advantage of Document Splitting and Real clip integrating of the Finance and Controlling sections.

The migration was much easier than expected by the Pantaloons functionaries. With the aid of the SAP General Ledger Migration Service it became really easy to update the old system to the new 1. As quoted by the CEO – “ SAP Consulting did a great occupation in assisting us put to death this critical undertaking ” . The undertaking was completed merely in merely four months.

The Basic Processes that SAP General Ledger Application performed were:

Systems and Internal Controlling: The internal controlling of Pantaloons was greatly enhanced due to Information Systems.

Management Histories: The incomes and the disbursals of such a big organisation were simplified.

Working Capital Management: When the incomes and disbursals were found out, it was comparatively easier to cipher the Capital that can be invested in twenty-four hours to twenty-four hours working.

Budgeting: The systems help the company to build a proper budget.

Indentify and Reporting KPI ‘s: SAP General Ledger Application helped the company to place the Key Performance Indicators and helped in doing better usage of them. This would heighten the efficiency of the company.

Fiscal Management: The package helped Pantaloons in maintain its fiscal histories and besides helped the company to fix balance sheets and the terminal of twelvemonth scrutinizing studies.

Besides checked the sums received and the sums collectible.

Working Of SAP General Ledger Application

In the initial phases when the ERP solution was used all the faculties were diversified. Hence to compare informations at the same clip was a really hard undertaking. Hence with the new General Ledger Application the system was much integrated and comparing informations was much easier. Thus the new system eliminated the usage of utilizing more constituents.

Since Pantaloons is distributed all over the state the systems at every single site were connected to a cardinal server-client called as the Leading Ledger.

Then all the Individual Leading Ledgers and the subordinate Ledgers would incorporate for signifier a concluding General Account Ledger. Now from this Ledger the system prepared its balance sheet.

This is the manner integrating of all the mercantile establishments of the state is possible. Here it is seen that the Financial Information Systems at different locations of the state were merged into a individual Accounting leger application from where the concluding Financial Status could be obtained easy.

THE FLOW OF A DOCUMENT IN A SAP GENERAL LEDGER APPS:

Shown above is a way by which the papers flows in the information system. It can either be done manually or automatically by systems. Making it manually is clip devouring and besides rather boring as it goes through many stairss.

Decision

These yearss, SAP General Ledger gives Pantaloon a higher degree of transparence into single operations and helps it continually drive productiveness betterments across the endeavor. For illustration, Pantaloon can now automatically divide accounting line points per papers for each company net income Centres. And, because these minutess are handled by the package, the company no longer needs to do period accommodations to equilibrate sheet and net income and loss statements.

With the papers dividing tool, Pantaloon now has a real-time, complete image of its histories receivables and payables across all operational degrees, which has enabled it to cut down receivables by up to 10 % . In add-on, it is now able to shut the monthly books 20 % faster, due to tight integrating between financials and commanding constituents and real-time rapprochement capablenesss.

The Information Systems helps the company helps them to make Unified studies for guaranting conformity with a assortment of regulative demands. Data redundancy is besides reduced assisting in more accurate studies. Overall the general leger system provides high quality studies ensuing in better determination devising and net income analysis.

Futures

Pantaloons programs to utilize other maps of SAP General Ledger as good. Like if it uses the parallel coverage characteristic of so it can besides compare and pull off the gross revenues and selling in different fiscal old ages.

Hence we see that for such a big company it is following to impossible to make all the fiscal and accounting work without the aid of Information systems. Pantaloon will besides benefits from this characteristic when India converges with International Financial Reporting Standards ( IFRS ) , planned for 2011.