FI DEPARTMENT BUSINESS FLOW ACTIVITIES
BUILT IN
SAP
SL.NO SAP
ACTIVITIES SAP - T.code description
. (YES OR
T.CODE
NO)
BUDGET - PUBLIC SECTOR MANAGEMENT (FUNDS
I
MANAGEMENT)
Create Commitment item. The Commitment items (expense) Create Commitment items for which budget is to
FMCIA
should be allotted, to each fund centre. be loaded
Create Funds center for all combinations of
Create Funds Center. FMSA
commitment items to be created.
Allocation of Cost centers and Cost elements for budget
FMDERIVER
utilisation
ZFR50 Enter initial Budget upload in Background
Budget is prepared for each financial year and is placed before YES Enter initial budget release in Background
the Board for approval. The budgeted expenditure as approved ZFR51
processing mode
is loaded in SAP under the respective fund centre and
commitment item. FR50 Enter Original Budget
FR51 Enter Release of original Budget
Transfer of budget to commitment items with mail from user
FR58 Post Transfer
departments
To view Budget status ZFMRA
Budget for Capital Expenditure
As regards capital expenditure, budget is uploaded and released
against the specific approval of the capital expenditure after FR50/FR51
obtaining In-principle clearance from the management.
Petty cash Payments are accounted in SAP, in F-43
II PETTY CASH NO F-43
– Invoice general menu.
Petty cash receipts are accounted in SAP, in F-22 –
F-22
Invoice general menu.
III INSURANCE
After the management approval is received, payments are to be
made for the policy renewals. A voucher is prepared in which
all-premium payments are debited to Prepaid Insurance and the
respective banks credited.
The amounts paid towards premiums initially accounted under
prepaid insurance are transferred to various insurance expense
accounts on a monthly basis. This is done by dividing the total
premium payments during the month by 12months and
accounting the amounts thus arrived at in the relevant months F-43
thereafter under various expense heads every month.
The service tax and cess on items directly connected to product
manufacture are transferred and deducted before this calculation NO
is effected. The balance if any, at the end of the year, will be
retained in prepaid insurance and will be carried forward to the
succeeding financial year.
NO
CASH DEPOSIT ACCOUNTS are maintained in insurance
companies where an urgent need for a policy
e.g.: import of quicklime where the premium is very low and
the policy is required immediately. In our company, we are
presently holding such deposits with UIIC & NIC. A minimum
amount is always maintained by depositing amounts into this
account as and when required. Entries are passed on a monthly
basis after receiving statements from the insurance companies.
This is to ensure that the balance as per our books matches the
balance shown by the insurance companies.
IV FIXED ASSETS
This system is not followed in our company since
External Acquisitions through vendors YES external acquisitions are issued through Inventory
movement 241.
Transfer of Assets
Within Company Code ABUMN
Required if there is a change in rate of depreciation
Cross Company Code ABT1N
All services (CWIP) and procurements can be
Transfer of CWIP Assets on obtaining Completion certificate
YES ML81 & MIRO issued to a CWIP asset by creating a purchase
from User Dept.
order with account assignment category "A"
On completion these expenses under CWIP asset
AIAB & AIBU
be transferred to a normal asset
RETIREMENT OF ASSETS
Loss on sale of asset Dr.
Asset sale without Customer YES ABAON Accumulated Depreciation A/c Dr.
Asset A/c Cr.
Loss on sale of asset Dr.
Asset Retirement by scrapping
Accumulated Depreciation A/c Dr.
Management approval for assets to be scrapped is obtained after YES ABAVN
Asset A/c Cr.
which the scrapping procedure is carried out.
Profit on sale of asset Cr.
Depreciation
Depreciation is provided for on Straight-line method at the rates
and in the manner prescribed under Schedule XIV of the The accounting entry here is
Companies Act, 1956. Except for moulds and wooden pallets Depreciation A/C DR
YES AFAB & SM37
included under plant and machinery, the cost of which are Accumulated Depreciation on Assets A/c CR
amortised over a period of five years from the date of purchase.
Individual assets costing less than Rs.5000/- each is depreciated
in full in the year of addition.
V ACCOUNTS PAYABLE - RAW MATERIAL/ STORES
Posting of GR (Movement type – 101) triggers
automatic entry as follows:
Goods Receipt YES MIGO
Inventory A/c Dr (Asset)
To GRIR Clearing A/c Cr (Liability)
CENVAT I/P- RG 23A DR.
CESS I/P - RG 23A DR.
J1IA/J1IEX_P/J1I S&H CESS I/P- RG23A DR.
Excise Part II posting YES
B CENVAT CLG I/P CR.
PART II POSTING J1IA/J1IEX_P DEFERRED CENVAT CAP.GDS DR.
CASE II: CAPITAL GOODS DEFCENVAT-CAP.GD-ECS DR.
The excise duty and the cess if any paid which are eligible S&HDEFCENVAT-CPG ECS DR.
for CENVAT credit are being availed while making the S&H CESS-CPGD-RG23C DR.
YES
posting in Part II of RG-23A register of Central Excise. CENVT-CPGD-RG23C DR.
CESS-CPGD-RG23C DR.
CENVAT CLG I/P CR.
GRIR Clearing A/c DR
Freight Clearing A/c DR
Cenvat Clearing A/c DR
Processing Accounts Payable -INVOICE VERIFICATION YES MIRO
Cess A/c DR
Vendor A/c CR
Advance Payments to Vendors YES F-47 & F- 48 Down Payment request is created and posted to
INVOICE VERIFICATION - IMPORT BILLS YES MIRO
Accounting entry for customs duty advance
Advance payment for customs duty Custom duty sea a/c Dr.
Customs duty is always paid in advance by means of a “pay F-43 Bank charges-others a/c Dr.
order’ based on the workings provided by mm dept. (Pay order charges as per bank)
Bank a/c Cr.
Exchange Rate maintenance YES OB08
Accounting entry when GRIR is raised
When goods receipt at Port (Plant PRT1). Inventory A/c Dr.
GRIR value is calculated according to OB08 exchange rate. GRIR Clearing Cr.
Customs Clearing Cr.
A transfer order is raised against CBW1 to move
goods from PRT1 to CBW1. Here the price of the
Goods movement from Port to Customs Bonded Warehouse
YES material is picked from the issuing plant (PRT1)
(PRT1 to CBW1)
automatically.No accounting entry is formed or
posted as 101 movement is posted.
Accounting entry when storage location of the material is
Inventory A/c Dr.
changed from Prt1 to CBW1 351 movement is made for change YES
Inventory Bonded A/c Cr.
of location of material from PRT1 to CBW1
Goods movement from Customs Bonded Warehouse to ISO1 Inventory Bonded A/c Dr.
YES
(CBW1 to PO1/PY1/ISO1) Inventory A/c Cr.
TAX DEDUCTED AT SOURCE/ TAX COLLECETD AT
VI
SOURCE
Set aside TDS for payment YES J1INCHLN
Reverse TDS challan document YES J1INREV
Deposit of tax into bank YES J1INBANK Bank Updation number
Print TDS certificate YES J1INCERT Print TDS certificate
Reprint TDS certificate YES J1INREP Reprint TDS certificate
Value the inventory at the prevailing foreign
exchange rates failing which the difference at the
VII FOREIGN EXCHANGE FLUCTUATION YES OB08
time of invoice verification grouped under price
difference A/c will be abnormal.
The liability in vendor a/c is recognised based on
the exchange rate prevailing on the bill of lading
date. The liability further reinstated on monthly
basis and when the same is paid, on the due date at
the then prevailing exchange rate, the difference is
suitably settled by passing entries to the foreign
exchange rate fluctuation without altering the
liability recorded in the vendors a/c.
VIII ACCOUNTS PAYABLE - SERVICES
Expense A/c DR
Vendor A/c CR
INVOICE VERIFICATION YES MIRO Expense is debited and vendor is credited with full
amount of invoice.
TDS is given effect,
Vendor A/c DR
DEDUCTION OF TAX YES J1IN
TDS-Cont-Site A/c CR
Vendor A/c DR with full amount of invoice
Cash A/C CR with amount after deducting
PAYMENT TO VENDOR YES ZPAVO/ZPAYPRT TDS
Vendor A/c CR with TDS amount.
IX SALES ACCOUNTING
MANUFACTURING:
This is prepared after preparation of Invoices, Sales
Order and Delivery
Sundry Debtors Dr
To Sales
To Excise duty collected / recovery
CREATION OF BILLING DOCUMENT YES VF01
To TNGST payable
To CST payable
To Freight recovery
To Transit insurance
Preparation Of Excise Invoice YES J1II
Invoice Printout YES VF03
TRADING:
Preparation of Delivery Order YES VL01 To create outbound delivery
RG23D updation YES J1IJ
POST GOODS ISSUE YES VL02
Invoice Printout YES VF03
SCRAP SALES/ RM Sales as scrap YES VF01 Movement type 181
EXCISE REPORTS NO Z Reports are configured to meet the purpose
This statement displays the Source and Application
X CASH FLOW STATEMENT NO ZCF1
of funds during a specified period.
XI ACCOUNTS RECEIVABLE
The despatch of material is approved by the
marketing finance if
Execution of an order: YES VKM1 i. The customer is not on errant customer
ii. The company is very sure of realisation of the
proceeds.
Bank Dr
Realisation of Proceeds YES F-02 To Sundry Debtors.
1. Freight recovery Dr
To Various transporters
2. Transporters Dr
Freight Recovery YES F-02 To TDS
3. Bank Dr
To Transporters ( net of TDS )
Discounts & Commission on Sales NO
1. Cash discount/ PPD/Commission Dr
To Sundry debtors.
2. Provision a/c Dr
Credit Note YES F-27
To Sundry debtors
Bulk discount Dr
Journal Voucher YES F-02 To Provision a/c
XI PAYROLL PROCESSING
Basic Salary Officer/Staff DR
HRA Officer/Staff DR
OT Officer/Staff DR
Conveyance Officer/Staff DR
Shift allowance Officer/Staff DR
CCA Officer/Staff DR
Other allowance Officer/Staff DR
ORDINARY SALARY
PF-Employer contribution DR
Salary details such as Basic, DA, Allowances and other details,
NO ZSUO ESI-Emplyr contribution DR
are formatted employee-wise, cost centre-wise with GL account
Salary Payable Officer/Staff CR
codes in the HR system.
PF Emplyr payable CR
ESI Emplyr payable CR
PF Emplyee contribution a/c CR
ESI Emplyee contribution a/c CR
Thrift loan payable CR
Other deductions CR
SPECIAL GL RELATED NO ZSUS
XII COST CYCLE RUN
Periodic Reposting YES KB11N Manual Reposting of Costs
YES Distribution of Other Utilities Cost to Local Cost
Assessment KSU5 Center with the help of Cost Cycles
YES Enter Plan activity –1, Fixed Price-1, Variable
Activity Price Planning KP26 Price-1.
YES Posting of Activity Allocation using the Ratio for
Activity Allocation KB21N Unit I 49:26:25 and for Unit II 44:26:30
Price Calculation YES KSII
YES Revaluation at Actual Prices for each product
Price Revaluation MFN1 produced during the period
Order Settlement YES KO88
XIII NO Manual calculations are carried outside SAP and
INTEREST CALCULATION journal entries are passed later.
XIV BANK RECONCILIATION STATEMENT NO Still to be configured
XV NO Valuation of finished goods and WIP are carried
STOCK VALUATION outside SAP.
XVI CENVAT/VAT/SERVICE TAX ENTRIES
ZFE_NEW,
XVII ZFORM_NEW,
ZFU_NEW,
C-FORMS ISSUE/RECEIPT ZFORMC_COV1
