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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
Delta Document
Finance & Controlling
For
E-Vision Dehradun
EVision Process: Finance & Controlling
Document Number: CDEV
Version: 1.0
Module: FI - CO
Release Date: 20 Dec.’2012
Status: Final
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
This document contains E VISION To Be process descriptions and fulfilling the various user requirements for the purpose of SAP
implementation. The major contents of this document includes process objectives, users’ requirements and expectations, process
description gaps, improvements, major inputs, major output and KPI and Key MIS requirements. This document is the outcome of
various levels of interactions with process owners and department heads across locations of E VISION, Dehradun Including the Head
Office.
Process Owner’s Approval – Version 1.0
Approver Name Title Signature Date
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Table of Contents
1. Finance and Controlling........................................................................................................................................................................................................ 7
1.1. Finance Organization Structure ........................................................................................................................................................................................... 8
1.1.1 Finance Organization Structure ........................................................................................................................................................................................... 8
1.2. Planning, Budgeting and Forecasting ................................................................................................................................................................................ 13
1.2.1 Annual Budgeting............................................................................................................................................................................................................... 13
1.2.2 Forecasting ......................................................................................................................................................................................................................... 21
1.3. Asset Accounting................................................................................................................................................................................................................ 37
1.3.1 Capital Expenditure Budgeting .......................................................................................................................................................................................... 37
1.3.2 Asset Master Creation .............................................................................................................................................................. Error! Bookmark not defined.
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1.3.3 Asset Acquisition ...................................................................................................................................................................... Error! Bookmark not defined.
1.3.4 Asset Transfer........................................................................................................................................................................... Error! Bookmark not defined.
1.3.5 Asset Disposal........................................................................................................................................................................... Error! Bookmark not defined.
1.3.6 Period End Processing .............................................................................................................................................................. Error! Bookmark not defined.
1.4. Accounts Payable ..................................................................................................................................................................... Error! Bookmark not defined.
1.4.1 Vendor Invoicing-(Material & Services) .................................................................................................................................... Error! Bookmark not defined.
1.4.2 Vendor Invoicing-(Non-Stock Items) ....................................................................................................................................... Error! Bookmark not defined.
1.4.3 Vendor Payment....................................................................................................................................................................... Error! Bookmark not defined.
1.4.4 Advance Payment .................................................................................................................................................................... Error! Bookmark not defined.
1.4.5 Period End Closing..................................................................................................................................................................... Error! Bookmark not defined.
1.5. Accounts Receivable................................................................................................................................................................. Error! Bookmark not defined.
1.5.1 Customer’s Billing..................................................................................................................................................................... Error! Bookmark not defined.
1.5.2 Incoming Payment .................................................................................................................................................................... Error! Bookmark not defined.
1.5.3 Period Closing ........................................................................................................................................................................... Error! Bookmark not defined.
1.6 Cash & Bank .............................................................................................................................................................................. Error! Bookmark not defined.
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1.6.1 Bank Reconciliation Process...................................................................................................................................................... Error! Bookmark not defined.
1.6.2 Cash Receipts ............................................................................................................................................................................ Error! Bookmark not defined.
1.6.3 Cash Payments ......................................................................................................................................................................... Error! Bookmark not defined.
1.6.4 Borrowings ................................................................................................................................................................................ Error! Bookmark not defined.
1.6.5 Import Payments (Letter of Credit) ........................................................................................................................................... Error! Bookmark not defined.
1.7 General Ledger Account ..................................................................................................................................................................................................... 50
1.7.1 Chart of Account ................................................................................................................................................................................................................. 50
1.7.2 Journal Posting.......................................................................................................................................................................... Error! Bookmark not defined.
1.7.3 Period End Processing ............................................................................................................................................................... Error! Bookmark not defined.
1.8 Direct Taxation ......................................................................................................................................................................... Error! Bookmark not defined.
1.8.1 TDS Process .............................................................................................................................................................................. Error! Bookmark not defined.
1.8.2 TCS Process .............................................................................................................................................................................. Error! Bookmark not defined.
1.8.3 Corporate Taxation .................................................................................................................................................................. Error! Bookmark not defined.
1.9 Indirect Taxation ...................................................................................................................................................................... Error! Bookmark not defined.
1.9.1 Tax Masters .............................................................................................................................................................................. Error! Bookmark not defined.
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1.9.2 Input Tax Process ...................................................................................................................................................................... Error! Bookmark not defined.
1.9.3 Output Tax Process ................................................................................................................................................................... Error! Bookmark not defined.
1.9.4 Period end processing................................................................................................................................................................ Error! Bookmark not defined.
1.9.5 Form Tracking........................................................................................................................................................................... Error! Bookmark not defined.
1.10 Product Costing ........................................................................................................................................................................ Error! Bookmark not defined.
1.10.1 Product Costing ............................................................................................................................................................... Error! Bookmark not defined.
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
1. Finance and Controlling
The ‘Record to Report’ process includes the following components/ sub -processes:
► Finance Organization Structure
► Planning, Budgeting & Forecasting
► Asset Accounting
► Accounts Payable
► Accounts Receivable► Cash & Bank
► General Ledger Accounting
► Direct Taxation
► Indirect Taxation
► Insurance
► Product Costing
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1.1. Finance Organization Structure
1.1.1 Finance Organization Structure
1. Process objective:
The objective of this process is to create a new company code EVISION in the Organizational Structure for Finance & Controlling.
Controlling area is same, Profit center to be created for new company code EVISION etc. are defined based on the Current
Structure of the E PACK Group.
2. Process Flow:
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3. Process Description:
SL.
NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)
SAP
FUNCTIONALITY TO
BE USED
1 Creation of
Operating Concern
and Controlling Area
► Operating concern is the highest
organisational unit in Controlling
under which all reporting w.r.t internal
management is done.► Controlling area 1000 is same.
► For E PACK group, one operating
concern and one controlling area is
there i.e. ‘E PACK Group’.
► IT / SAP
Team
► SAP ► Enterprise
Structure
2 Creation of Company
Code
► A company code represents a legal
entity in the system. All external
reporting is done based on the
company code. New Company Code
2000 to be created for EVISION.
► IT / SAP
Team
► SAP ► Enterprise
Structure
3 Création of Profit
Centers
► Profit centers are the reporting units
under a company code.
► 1 Manufacturing Units at Dehradun
► IT / SAP
Team
► SAP ► Enterprise
Structure
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)
SAP
FUNCTIONALITY TO
BE USED
under Evision.
4. Integration Aspects:
SL.
NO.
INTEGRATION ASPECTS
1. ► Integration with MM, SD, PP modules.
5. Interface Requirements:
SL.
NO.
INTERFACE REQUIREMENTS
► NA
6. Key Outputs:
SL.
NO.
KEY OUTPUTS OF THE PROCESS
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO.KEY OUTPUTS OF THE PROCESS
1. ► Organizational structure of E PACK completely mapped with the SAP Enterprise Structure.
7. Gaps Indentified/ Process Improvements
SL.
NO.
GAPS INDENTIFIED/ PROCESS IMPROVEMENTS REFERENCE
1. ► Currently the units of E PACK Group and the processes thereof are not well integrated.
The new SAP based process Re-Engineering approach will bring the required
Integration across the E PACK Landscape and the processes thereof.
►
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1.2. Planning, Budgeting and Forecasting
1.2.1 Annual Budgeting
1. Process objective:
The objective of the process is to employ Annual plan that is focused on the achievement of long term strategic objectives and
to ensure that resources are coordinated & used in the most effective way and to provide a mechanism to measure, report,collate feedbacks, and implement corrective actions
2. Process Flow:
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
<Planning, Budgeting & Forecasting - Detailed Budgeting>
B u s i n e s s U n i t s / D e p a r t m e n
t s
D S C
– P
l a n n i n g & B u d g e
t i n g
M a n a g e m e n t
0
Derive Financial
targets & Key
assumptions
0
Strategic Plan
1
Initiate Targets
(Strategy,
expectations)
2
Set high level Business
Unit Targets and
assumptions
3
Draft high level revenue,
Capex EBIT (incl. key
constraints)
4
Distribute Business unit
targets and budget
guidelines and
assumptions
5
Align BU Targets
to Group BU
targets
5
Review Key
Business Drivers &
KPIs
6
Use model plans
to arrive at Budget
numbers
7
‘What If’ analysis/
scenario modeling
8
Complete
Budgeting
Templates
8
Consolidate
9
Review/Challenge/
Validate
10
Review/Challenge/
Validate
11
‘What If’ analysis/
scenario modeling
12
Communicate
amendments
required
13
Amend Online
Templates to
reflect changes
14
Re-consolidate
15
Review/Challenge/
Validate
15
Process Internal
Allocations
16
Budget
Acceptable
17
Sign Off Budget
NO
YES
17
Final Budget
available online
End
Answer
Queries
Answer
Queries
Ist Cut Budget
available
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
► ► ► ► ► ► ► ► ► ►
3. Responsibility
SL.
NO
.
ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION
1 Initiate high level Targets (Strategy,
expectations)
► Manageme
nt
► Manageme
nt
► Management ► DSC/ Units
Heads
2 Set High level Business unit Targets
and Assumptions
► Manageme
nt
► Manageme
nt
► Management ► DSC/ Units
Heads
3 Draft high Level Revenue, Capex, EBIT
(incl. key constraints)
► DSC ► DSC ► DSC ► Managemen
t
4 Distribute Business Unit Targets and
budget guidelines and assumptions
► DSC ► DSC ► DSC ► Unit Heads
5 Align BU Strategy to Group BU targets
and review Key business Drivers
► Unit Heads ► Unit Heads ► Unit Heads ► Unit Heads
6 Use Model plans to arrive at Budget
numbers
► Units/
Plants
► Units/
Plants
► Units/ Plants ► Units/ Plants
7 What-if analysis/scenario modeling ► Units/ ► Units/ ► Units/ Plants ► Units/ Plants
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO
.
ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION
Plants Plants
8 Complete Budget Templates and
Consolidate
► Units/
Plants
► Units/
Plants
► Units/ Plants ► Units/ Plants
9 Review/ Challenge/ Validate by DSC ► DSC ► DSC ► DSC ► DSC
10 Management Reviews/ Challenges/
Validates the budget
► Manageme
nt
► Manageme
nt
► Management ► Managemen
t
11 What-if analysis/scenario modeling ► DSC ► DSC ► DSC ► DSC
12 Communicate amendments required ► DSC ► DSC ► DSC ► DSC
13 Update online templates to reflect
amendments
► Units/
Plants
► Units/
Plants
► Units/ Plants ► Units/ Plants
14 Re-consolidate ► DSC ► DSC ► DSC ► DSC
15 Review/ Challenge/ Validate by DSC
and process internal allocations
► DSC ► DSC ► DSC ► DSC
16 Budget Acceptance ► Manageme
nt
► Manageme
nt
► Management ► Managemen
t
17 Final budget signed off ► DSC ► DSC ► DSC ► DSC
4. Key Control Requirements
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO.CONTROL REQUIREMENTS TO BE PROCESS
(STANDARD
SAP/CUSTOMIZATION/
MANUAL
PRIORITY (HIGH/MEDIUM/LOW)
SAP FUNCTIONALITY TO BE USED
1 ► There should be reasonable tolerance
thresholds established to facilitate a
budget vs. actual review
► Manual ► High ►
2 ► The significant variances should be
thoroughly investigated and
appropriately documented
► Manual ► Medium ►
5. Key MIS/Report Requirements
SL.
NO
.
KEY MIS KEY FIELDS TO BE PROCESS
(STANDARD
SAP/CUSTOMIZATION/
MANUAL
PRIORITY
(HIGH/MEDIUM/
LOW)
SAP FUNCTIONALITY TO
BE USED
1 ► Plan Vs Actual ► Period► Nature of
expense► Planned amount
► Actual
expenditure
► Manual ► Low ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO
.
KEY MIS KEY FIELDS TO BE PROCESS (STANDARD
SAP/CUSTOMIZATION/
MANUAL
PRIORITY (HIGH/MEDIUM/
LOW)
SAP FUNCTIONALITY TO
BE USED
2 ► Variance Analysis ► Variance
amount
► Manual ► Low ► 3 ► Annual Budgeting at Unit Level ► Unit / Plant wise
annual budgets► Department
wise budgets
► Manual ► Low ►
6. Key Performance Indicator (KPI’s)
SL.
NO.
KEY KPIS TO BE PROCESS
(STANDARD
SAP/CUSTOMISATION/
MANUAL
PRIORITY
(HIGH/MEDIUM/LOW)
SAP FUNCTIONALITY TO BE
USED
1 ► Days to complete Budgeting
process
► Manual ► Low ► 2 ► Percentage of accuracy
between budgets & actual
► Manual ► Low ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO.KEY KPIS TO BE PROCESS
(STANDARD
SAP/CUSTOMISATION/
MANUAL
PRIORITY (HIGH/MEDIUM/LOW)
SAP FUNCTIONALITY TO BE
USED
3 ► Deviations from targets ► Manual ► High ►
7. Integration Aspects:
SL.
NO.
INTEGRATION ASPECTS
1. ► All unit/ plant heads
2. ► Management
8. Interface Requirements:
SL.
NO.
INTERFACE REQUIREMENTS
► NA
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
9. Key Inputs:
SL.
NO.
KEY INPUTS TO THE PROCESS
1. ► Previous year performance reports
2. ► Strategic business plan and objectives
10. Key Outputs:
SL.
NO.
KEY OUTPUTS OF THE PROCESS
1. ► Annual budget for company as a whole and individual for all business unit/ plants.
11. Gaps Indentified/ Process Improvements
SL.
NO.
GAPS INDENTIFIED/ PROCESS IMPROVEMENTS REFERENCE
1. ► Systematic method of preparing, maintaining and monitoring annual budgets. ►
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1.2.2 Forecasting
1. Process objective:
The objective if the process is to employ short term forecasting that is focused on the achievement of long term strategic objectives
and to ensure that resources are co-ordinated & used in the most effective way.
2. Process Flow:
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
<Planning, Budgeting & Forecasting - Forecasting>
B u s i n e s s U n i t s / D e p a r t m e n t s
D S C
– P
l a n n i n g &
B u d g e t i n g
M a n a g e m e n t NO
YES17
Sign Off forecast
7‘What If’ analysis/
scenario modeling
5
Review actual vs
budget BU reports
11‘What If’ analysis/
scenario modeling
0
Actual Vs Budget
Reporting
Answer Queries
12
Communicateamendments
required
1
Set High level
revised Targets(Strategy,
expectations)
6
Use model plans
to derive revisedforecast numbers
15
Process Internal
Allocations
10
Review/Challenge/Validate
15
Review/Challenge/
Validate
8
Consolidate
4
Distribute Business unittargets and forecast
guidelines and
assumptions
14
Re-consolidate
17
Final forecast
available online
8
Completeforecasting
Templates
2Set high level revised
Business Unit Targets
and assumptions
0
High levelenvironmental
analysis (internal
& External
Answer Queries
9
Review/Challenge/
Validate
3Draft high level
revenue, CapexEBIT (incl. key
constraints)
End
5Review Key
Business Drivers &KPIs
13
Update Online
Templates to reflectamendments
16
forecast Acceptable
0
Extrapolateexisting data
Ist cut forecast
available
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
3. Process Description:
SL .N
O.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)
SAP
FUNCTIONALITY
TO BE USED
0 Purpose of
Forecasting
► Forecasting is used to periodically update
an annual budget to reflect revised
assumptions or changed business
circumstances in order to take corrective
action on a timely basis where
appropriate and also to manage
expectations.► The most appropriate form of forecasting
is to adopt quarterly rolling forecasts.
► Forecasting should, in effect, adopt the
same process as budgeting starting with
a review of strategic plans and corporate
objectives. This review should then
underpin the restatement of financial
projections.
► In all cases, however, forecasting should
be undertaken at a higher level, with lessdetail, that the annual budget.
► It is not recommended to adopt the
process of monthly rolling forecasts
► ► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
except in exceptional circumstances, as it
carries the risk that the “art of planning”
becomes institutionalized and the
forecasting process is viewed as a
“number crunching exercise” rather than
a strategic review of how well the
business is meeting its long term
objectives.1 Set high level
revised Targets
(Strategy,
expectations)
► The management considers the external
and internal changes to the environment
which will impact achieving the budget
results (adverse or favorable) e.g.,
economic downturn, impact in raw
material price, divestment of a business
unit, etc.► The current period performance is
reviewed against the Budgets and the
variances are analyzed.► The existing data is extrapolated to set
revised “top down” targets.► Management defines the strategy and
► Manage
ment
► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
expectations.
2 Set High level
revised Business
unit Targets and
Assumptions
► Revised high level targets are broken
down at Business unit levels considering
the Business units parameters, capacities
clearly linking it to the Business unit wise
Strategic plan and corporate objectives.
► DSC ► Manual ►
3 Draft high Level
revised Revenue,Capex, EBIT (incl.
key constraints)
► DSC department prepares revised high
level Financial Figures (Revenues, EBIT,Capex, etc) based on Targets set by
Management.
► DSC ► Manual ►
4 Distribute Business
Unit Targets and
forecast guidelines
and assumptions
► DSC department communicates the
Business unit revised targets set by
Management for the respective Business
Units.
► The DSC department also communicates
proper forecasting guidelines, and
assumptions.
► DSC ► Manual ►
5 Review actual VsBudget Business
unit-wise reports,
Business drivers
► Respective Business units shall review theactual Vs Budgets performance reports;
analyze the variances, business drivers
and Key performance indicators.
► Units/Plants
► Manual/SAP
► Currently as the
planning
tool is
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
and KPIs not
being
impleme
nted so
the
same
will be a
manualprocess.
► In SAP
cost
center
planning
tool can
be use
for
annual
budgeting
6 Use Model plans to ► Respective Business units prepare the ► Units/ ► Manual/ ► Currentl
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
arrive at Budget
numbers
forecasts in pre-defined forecast
templates in the system based on the
revised targets and forecast guidelines.
► Business units can refer to current year’s
actual results Vs budgets to arrive at
forecast numbers.
Plants SAP y as the
planning
tool is
not
being
impleme
nted so
thesame
will be a
manual
process.
7 What-if
analysis/scenario
modeling
► Respective Business units shall then carry
out what-if analysis/scenario modeling in
the ERP system to simulate different
permutations/combinations before
arriving at the revised forecast figures in
line with the Group BU targets.
► Units/
Plants
► Manual/
SAP
► Currentl
y as the
planning
tool is
not
beingimpleme
nted so
the
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
same
will be a
manual
process.
8 Complete forecast
Templates and
Consolidate
► Respective Business units shall finalize
the revised forecast templates based on
different What-if analysis and the
Business unit wise forecast templates arethen consolidated by the DSC-Planning
and Budgeting department to arrive at
Consolidated forecast numbers for the
company as a whole.
► Units/
DSC
► Manual/
SAP
► Currentl
y as the
planning
tool isnot
being
impleme
nted so
the
same
will be a
manual
process.
9 Review/ Challenge/Validate by DSC
► The consolidated forecasts are reviewedby the DSC. DSC co-ordinates with the
Business units to obtain explanation
regarding any queries regarding the
► DSC ► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
forecasts.
► On completion of the review, the
consolidated forecast is finalized and sent
to the Management for review and
challenge
10 Management
Reviews/
Challenges/Validates the
forecasts
► Management reviews the 1st cut
forecasts forwarded by the DSC and
challenges/validates theassumptions/drivers, etc and
explanations for the significant variances.
► Changes/additional requirements, if any,
are communicated by the management
to the DSC.
► Manage
ment
► Manual ►
11 What-if
analysis/scenario
modeling
► Based on Inputs received from
Management, DSC carries out What-if
scenario analysis and identifies if the
forecasts require any amendments.
► It further identifies the amendments thatare required to be made in the Business
unit wise forecasts
► DSC ► Manual ►
12 Communicate ► DSC communicates the amendments ► DSC ► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
amendments
required
required to the respective Business units
for making changes in the unit wise
forecasts.
13 Update online
templates to reflect
amendments
► Respective business units will review the
amendments communicated by the DSC
along with the original forecasts and
assumptions.
► Post review, amendments shall beincorporated in the Business unit wise
forecasts and the revised forecasts will be
forwarded to the DSC for re-
consolidation.
► Units/
Plants
► Manual ►
14 Re-consolidate
forecasts
► DSC re-consolidates the business unit
wise forecasts and arrives at the
consolidated forecasts for the company
as a whole
► DSC ► Manual ►
15 Review/ Challenge/
Validate by DSCand process
internal allocations
► The revised consolidated forecasts are
reviewed by the DSC. DSC co-ordinateswith the Business units to obtain
explanation on any queries regarding the
budgets.
► DSC ► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
► On completion of the review, the revised
consolidated forecasts are finalized.
► Post finalization, DSC allocates the
revised common costs (like corporate
costs, other support function costs, etc)
to the respective business units.► The updated forecasts are then
forwarded to the Management for itsacceptance and sign-off.
16 Forecast
Acceptance
► Revised consolidated forecasts are
reviewed by the Management. In case the
Management is satisfied with the
Forecasts, the forecasts are signed off as
final by the Management.
► In case the Management still has queries
regarding the forecasts, the same is sent
back to the DSC with management
comments for revision and further action.
► Manage
ment
► Manual ►
17. Final Forecasts
signed off
► Management signs off the final forecasts
and then DSC update the final forecasts
online.
► Manage
ment
► Manual/
SAP
►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL .NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)SAP
FUNCTIONALITY
TO BE USED
► Actual can then be compared against
Budgets as well as forecasts.
4. Responsibility
SL.
NO
.
ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION
1 Set high level revised Targets
(Strategy, expectations)
► Manageme
nt
► Manageme
nt
► Management ► Managemen
t
2 Set High level revised Business unit
Targets and Assumptions
► DSC ► DSC ► Management ► Units/ Plant
Heads
3 Draft high Level revised Revenue,
Capex, EBIT (incl. key constraints)
► DSC ► DSC ► Mangement ► Units/ Plant
Heads
4 Distribute Business Unit Targets and
forecast guidelines and assumptions
► DSC ► DSC ► Management ► Units/ Plant
Heads
5 Review actual Vs Budget Business unit-
wise reports, Business drivers and KPIs
► Units/
Plants
► Units/
Plants
► DSC ► Units/ Plants
6 Use Model plans to arrive at Budget
numbers
► Units/
Plants
► Units/
Plants
► DSC ► Units/ Plants
7 What-if analysis/scenario modeling ► Units/ ► Units/ ► DSC ► Units/ Plants
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO
.
ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION
Plants Plants
8 Complete forecast Templates and
Consolidate
► Units/ DSC ► Units/ DSC ► DSC ► Units/ DSC
9 Review/ Challenge/ Validate by DSC ► DSC ► DSC ► Unit/ Plant
Heads
► DSC
10 Management Reviews/ Challenges/
Validates the forecasts
► Manageme
nt
► Manageme
nt
► Management ► Managemen
t
11 What-if analysis/scenario modeling ► DSC ► DSC ► DSC ► DSC12 Communicate amendments required ► DSC ► DSC ► Management ► Units/ Plants
13 Update online templates to reflect
amendments
► Units/
Plants
► Units/
Plants
► DSC ► Units/ Plants
14 Re-consolidate forecasts ► DSC ► DSC ► DSC ► DSC
15 Review/ Challenge/ Validate by DSC
and process internal allocations
► DSC ► DSC ► DSC ► DSC
16 Forecast Acceptance ► Manageme
nt
► Manageme
nt
► Management ► Managemen
t
17 Final Forecasts signed off ► Manageme
nt
► Manageme
nt
► Management ► Managemen
t
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
5. Key MIS/Report Requirements
SL.
NO
.
KEY MIS KEY FIELDS TO BE PROCESS
(STANDARD
SAP/CUSTOMISATION/
MANUAL
PRIORITY
(HIGH/MEDIUM/
LOW)
SAP FUNCTIONALITY TO
BE USED
1 ► Forecasts Vs Actual ► Period► Nature of
expense► Planned amount
► Actualexpenditure
► Manual/
Customization
► High ►
2 ► Variance Analysis ► Variance
amount
► Manual/
Customization
► High ► 3 ► Changes w.r.t previous annual
budget.
► Unit/ plant wise
annual budgets
► Revised
forecasts
► Reasons thereon► Approving
authority
► Manual/
Customization
► Medium ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
6. Key Performance Indicator (KPI’s)
SL.
NO.
KEY KPIS TO BE PROCESS
(STANDARD
SAP/CUSTOMISATION/
MANUAL
PRIORITY
(HIGH/MEDIUM/LOW)
SAP FUNCTIONALITY TO BE
USED
1 ► Days to complete Forecasting
process
► Manual ► Low ► 2 ► Percentage of accuracy between
budgets & actual
► Manual ► Low ►
7. Integration Aspects:
SL.
NO.
INTEGRATION ASPECTS
1. ► All Business units/ Plants/ User Departments
2. ► Management
8. Interface Requirements:
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO.INTERFACE REQUIREMENTS
► NA
9. Key Inputs:
SL.
NO.
KEY INPUTS TO THE PROCESS
1. ► Current period actual Vs Budgets performance reports
2. ► Revised targets and assumptions.
10. Key Outputs:
SL.
NO.
KEY OUTPUTS OF THE PROCESS
1. ► Revised forecasts for company as a whole and individual for all business unit/ plants.
11. Gaps Indentified/ Process Improvements
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL.
NO.GAPS INDENTIFIED/ PROCESS IMPROVEMENTS REFERENCE
1 ► Systematic method of preparing, maintaining and monitoring annual budgets. ►
1.3. Asset Accounting
1.3.1 Capital Expenditure Budgeting
8. Process objective:
Capital expenditure budgeting would be done to capture budgets for each unit/ department and company as a whole and to
have real time budget availability checking and the variations, if any.
9. Process Flow:
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
<Asset Accounting – Capital Budgeting>
< M
a n a g e m e n t >
< A l l D e p a r t m e n t >
< D S C
>
2
Prepare Capex
requirement planning
3
HODs to review &
finalize capex
requirement
Whether Capex
finalized at Department/
Unit level
Capex plan
forwarded to DSC
4
Consolidates Capex plan
under CFO
5
Consolidated Capex plan
reviewed by management
along with all HODs
Whether the Capex
plan requires change
No
Yes
Plan forwarded to DSC for
making changes
6
Requisite changes are
made and forwarded to
management for approval.
7 Approves Capex plan and
treated as Budget.
Capex budget forwarded
to DSC for updating in
system.
End
8
Updates budget and
intimates to all
departments.
NO
1
Communicate Budget
Guidelines, timelines &
constraints
Yes
Start
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
10. Process Description:
SL.
NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE
(SAP/MANUAL)
SAP
FUNCTIONALITY
TO BE USED
► The budgeting process for the comingyear should get initiated in the last
quarter for the previous year. The basis
should be taken from the management
plan for expansion, setting of new units
and acquiring heavy machinery.
► ► ►
1 Communicate
Budget
Guidelines,
timelines &constraints
► The management should prepare the
guidelines as per its future plans and
communicate the same to the
departments/ units to make them awareof the management’s vision with respect
to the expansion and investment plans.
► Management ► Manual ►
2 Prepare Capex ► All the departments / units should prepare ► Units/ Plants ► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL. NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE(SAP/MANUAL)
SAP FUNCTIONALITY
TO BE USED
requirement
planning
detailed capital expenditure requirements
identifying all major / minor capital assets
expenditure to be incurred during the
year.► Technical details are prepared and
benefits from the expenditure are
evaluated and updated in ‘Capex plan
approval’ form.3 HODs to review &
finalize capex
requirement
► HOD of the respective department/ Unit
reviews the detailed capital requirements
plan in terms of technical viability
considering useful life of the asset, ease of
modification / change to existing
investment, timelines for execution of
plan and financial feasibility considering
the cost benefits analysis for the
investment, and finalize the same.
► Units/ Plants ► Manual ►
4 ConsolidatesCapex plan under
CFO
► DSC consolidates Capex plan receivedfrom all departments/ units to each asset
level.
► The consolidated plan is prepared
► DSC ► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL. NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE(SAP/MANUAL)
SAP FUNCTIONALITY
TO BE USED
department wise, unit wise and for the
company as a whole
► CFO to review the consolidated plan in
view of fund availability and make
appropriate changes if required.
5 Consolidated
Capex plan
reviewed bymanagement
along with all
HODs
► The consolidated Capex plan is reviewed
by the management with all departments/
units’ heads. ► The technical viability, financial feasibility
etc. are measured.
► Changes are identified by the
management in the budget and the same
is forwarded to Corporate MIS for
amendments.
► Management ► Manual ►
6 Requisite changes
are made and
forwarded to
management forapproval
► DSC makes requisite changes as decided
in the budget approval meeting and
forwards the same to management for
approval.
► DSC ► Manual ►
7 Approves Capex
plan and treated
► Management approves the Capex plan
and the same is treated as Capex budget.
► Management ► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL. NO.
ACTIVITY TO BE PROCESS DEPARTMENT MODE(SAP/MANUAL)
SAP FUNCTIONALITY
TO BE USED
as Budget.
8 Updates budget
and intimates to
all departments.
► DSC maintains the budget in the system
for all individual assets.
► A reference number for each individual
asset is generated.► All departments / units are intimated for
their respective budget reference number.
These budget reference numbers will beused by respective departments at the
time of generation of purchase indent.
► The system will check the availability of
budget at the time of creation of purchase
indent. If the budget is available then only
purchase indent should get created
otherwise a sanction of additional budget
needs to be obtained
► DSC ► SAP ► Internal
Orders
11. Responsibility
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL. NO
.
ACTIVITY RESPONSIBILITY ACCOUNTABILITY CONSULT INFORMATION
1 ► Communicate Budget Guidelines,
timelines & constraints
► DSC ► Unit heads/
Department
heads
► Management ► All units/
Departments
2 ► Prepare Capex requirement
planning
► Respective
Department
► Unit heads/
Department
heads
► Management ► All units/
Departments
3 ► HODs to review & finalize capital
expenditure requirement
► Unit heads/
Departmentheads
► Unit heads/
Departmentheads
► Management ► All units/
Departments
4 ► Consolidates Capex plan under
CFO
► DSC ► DSC Head ► Management ► All units/
Departments
5 ► Consolidated Capex plan
reviewed by management along
with all HODs
► DSC ► Unit heads/
Department
heads
► Management ► All units/
Departments
6 ► Requisite changes are made and
forwarded to management for
approval
► DSC ► Unit heads/
Department
heads
► Management ► All units/
Departments
7 ► Approves Capex plan and treatedas Budget.
► Management ► Management ► Finance Head ► All units/Departments
8 ► Updates budget and intimates to
all departments.
► DSC ► DSC ► Management ► Management
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
12. Key Control Requirements
SL.
NO.
CONTROL REQUIREMENTS TO BE PROCESS
(STANDARD
SAP/CUSTOMISATION/
MANUAL
PRIORITY
(HIGH/MEDIUM/LOW)
SAP FUNCTIONALITY TO BE USED
1 ► The capital expenditure request forms
should be utilized for all fixed asset
purchases
► Manual ► Medium ►
2 ► The fixed asset purchases should be
against an approved budget
► SAP ► Medium ► Internal Order
13. Key MIS/Report Requirements
SL.
NO
.
KEY MIS KEY FIELDS TO BE PROCESS
(STANDARD
SAP/CUSTOMISATION/
MANUAL
PRIORITY
(HIGH/MEDIUM/
LOW)
SAP FUNCTIONALITY TO
BE USED
1 ► Report on Budget Vs Actual
Capex.
► Asset number
► Budget amount
► Actual
► Standard SAP ► Medium ► Report on
Internal Order
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL. NO
.
KEY MIS KEY FIELDS TO BE PROCESS (STANDARD
SAP/CUSTOMISATION/
MANUAL
PRIORITY (HIGH/MEDIUM/
LOW)
SAP FUNCTIONALITY TOBE USED
Expenditure
► Cost center
2 ► Un-utilized sanctioned budget
w.r.t to assets not procured as
per the plan.
► Asset number
► Budget amount► Actual
Expenditure
► ► ► Listing will have
to be taken out
of internal
orders which
have budget atthe end of the
year.
14. Key Performance Indicator (KPI’s)
SL.
NO.
KEY KPIS TO BE PROCESS
(STANDARD
SAP/CUSTOMIZATION/
MANUAL
PRIORITY
(HIGH/MEDIUM/LOW)
SAP FUNCTIONALITY TO BE
USED
1 ► Time consumed in budget
preparation
► Manual ► Low ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL. NO.
KEY KPIS TO BE PROCESS (STANDARD
SAP/CUSTOMIZATION/
MANUAL
PRIORITY (HIGH/MEDIUM/LOW)
SAP FUNCTIONALITY TO BEUSED
2 ► Efforts in terms of time and
money in budget preparation.
► Manual ► Low ► 3 ► Percentage of accuracy
between budgets and actual.
► Standard SAP/Manual ► High ► The report on Budget
Vs Actual Capex would
help in calculating the
percentage
4 ► Number of approvals forsanction of additional budget.
► Manual ► High ►
15. Integration Aspects:
SL.
NO.
INTEGRATION ASPECTS
1. ► User Departments
2. ► Management
3. ► Procurement Department
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
16. Interface Requirements:
SL.
NO.
INTERFACE REQUIREMENTS
► NA
17. Key Inputs:
SL.
NO.
KEY INPUTS TO THE PROCESS
1. ► Management’s vision about the expansion and investment plan.
2. ► Capital expenditure requirements from various departments.
18. Key Outputs:
SL.
NO.
KEY OUTPUTS OF THE PROCESS
1. ► Department/ unit wise Capex budgets to the individual assets levels.2. ► Available budgetary balance for individual department/ unit
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
19. Gaps Indentified/ Process Improvements
SL.
NO.
GAPS INDENTIFIED/ PROCESS IMPROVEMENTS REFERENCE
1 ► Budget availability at the department/ unit level. ► 2 ► Online estimates and system validation of budgets at the transaction level. ► 4 3 Way matching? ► Once the materials are quality cleared,
SAP matches the invoice, PO and goods
receipt / service Acceptance sheet. This
match is performed by checking the PO
number quoted on the three documents.SAP tool shall also check other fields such
as value and quantity. The comparison
will be done as follows:
o Quantity and price of the
goods ordered as per PO,
o Quantity of goods received as
per the GRN, and
o Quantity and price of the
goods invoiced by the vendor
► When matching the three documenttypes, pre-defined tolerance limits are
used for all fields other than the PO
number. If the invoice is within the limits
► Finance
Department
► SAP ► Invoice
Verification
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
SL. NO.
GAPS INDENTIFIED/ PROCESS IMPROVEMENTS REFERENCE
then it is progressed through the process.
If system can’t match one of the
documents, based on the PO number, it
will report any unmatched documents
which have the same value, quality and
vendor.
► For services, where an invoice and PO is
matched but a services acceptance form
is missing, system workflow shall notifythe requesting department to ensure the
acceptance has not been missed
5 Review matching
exceptions
► Invoices without a valid PO or which have
failed the tolerance checks and require a
correction in the invoice to be processed
within the system shall be identified.
► Exceptions will be resolved internally first
and in case exceptions cannot be
resolved, the invoice will be returned to
the vendor.
► Finance
Department
► Manual ►
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
1.6 General Ledger Account
1.6.1 Chart of Account
1. Process objective:
Same Chart of Account 1000 used for new company code EVISION.
2. Process Flow:
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
<Sub-process –
Chart of Account>
F i n a n c e -
D S C
U s e r D e p a r t m e n t s
Start
1Identify need for
new/amended GLCode
2Prepare request for change to Chart of
Account code
3Review and
approve Chart of Account codes
4Set up new code
in Chart of Account
Notify user
Confirm if change isrequired?
YES
Request accepted? YESNew GL/Changes
approved?YES
NO
END
NO
NO
New/Amended GLCode request
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EPACK POLYMERS (P) LTD. HCL INFO SYSTEM LTD.
Business Processes
Same process are mapped and followed in EVISION as in EDURABLE.
Company Code is 2000 for E Vision with same Controlling Area and Business Area is 2000, Profit centre is
2010.
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