Emami Cosmetics Case Study

7/28/2019 Emami Cosmetics Case Study

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3. General Information

The suggested priority is to focus on delivering the prototype presentation.

Consider the following:

Taxes - Configuration of Taxation is not essential for the case study.

Plants - Remember to use the “copy plant” function when defining additional plants.

After completing the essential configuration required for the prototype, you should investigate the

configuration for other components of the case study

3.1 Master Data

G/L Account Master Data

Create one chart of account per company.

EMAMI (local currency INR)ABC Marketing(local currency INR)

Automatic Account Assignment must be maintained so that the G/L accounts are posted

automatically for the inventory management and invoice verification.

3.2 Bank Master Data

Enter the house banks and the related bank accounts for the respective company codes.

Bank City Bank Id Bank country ABA Routing No.

ING Visya Kolkata ING IN 11000430

Citibank Pondichery Citibank IN 11040305

3.3 Customer Master Records

Maintenance of customer master records is decentralized. Sales department first creates the

customer master and they establish the customer number to be used. The accounting department

is then responsible to extend this record to include the financial information. One of the project

team members is the Credit Manager. He/she will determine the appropriate credit information

for the credit controlling areas.

3.3.1 Account Groups

For regular customers create master records using external alphanumeric number ranges. For theone time customers create one master record. For the line item display for one-time accounts, sort

by name and city.

Use field selection for the regular customer account group to control the following:Region, Industry and Terms of payment fields are to be mandatory.

Sales district is to be suppressed.

The following reconciliation accounts should be allocated to the individual customers:

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IN receivable

IN receivable – one – time customer account

3.3.2 Incoterms

The following Incoterms are currently used by EMAMI and ABC Ltd.:

CIF Costs, insurance, freight

CIP Cost insurance paid

ZEX Express Freight Chargeable

Payment Terms

The following payment terms are currently used:

PT01 8 days 5%

14 days 2%21 days net

PT02 14 days 3%

30 days 2%45 days net

PT01 is used by the EMAMI head offices and payment term PTO2 applies to all other customers

(including trade industry)

3.3.4 Customers

The allocation of customers to sales organizations is determined by the assigned country and citylisted in the customers’ master record. The customer listed below are interested in all product

groups of EMAMI.

The following customer represents the Kolkata subsidiary. It is used for inter-company sales of

finished goods:

Customer

Address

Contact

Currency

Country

Language

Distributio

n

Channel

Terms of

Payment

ABC Marketing

101 subhash street ,Kolkata

INR

INEN

Wholesale PT01

The following companies represent the customers (wholesalers and retailers) that EMAMI and

ABC Marketing sells their products to:

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Customer

Address

Contact

Currency

Country

Language

Distributio

n

Channel

Terms of

Payment

Agarwal traders,

Tis hazari

Delhi

INR

IN

EN

Wholesale PT02

Gupta & SonsBhopal

INR IN

EN

Retail PT02

Vikram traders &

distributors,Gwalior

INR

INEN

Wholesale PT02

X-Treme Cosmetics

Ahmedabad

INR

IN

EN

Wholesale PT02

3.4 Material Master Records

Because of our commitment to quality, we have begun tracking changes to our key materials and

products. We would like to see this practice continue through a change management facility that

is built into the system.

We currently group changes by engineering/ design project numbers.

3.4.1 Finished Products

Material Name Description

Navaratan Hair Oil (Nav_oil) Navaratan Hair oil (herbal Based)

Antiseptic cream (Anti_cream) EMAMI Antiseptic cream (herbal Based)

Shaving Cream (Shav_cream) Shaving cream (Cosmetic Based)

Talcum Powder (Tal_pow) Talcum Powder (Cosmetic Based)

3.4.2 Material Types

In EMAMI, the following material types are used, with the corresponding number ranges.

The material type “ will have to be created.

Beginning of range End of

range

External/

Internal

Account

Cat. Ref

Finished products 100001 199999 External 0009

Semi finished 300001 399999 External 0008

Raw materials 200001 299999 External 0001

Operating supplies 400001 499999 External 0002

Trading goods 500001 599999 External 0005

Services 600001 699999 External 0006

3.4.4 Material Groups

For control and reporting purposes, EMAMI has decided on the following material groups:

HER Herbal

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Cos Cosmetic

Pac Packing

3.4.5 Additional Information for Sales Department

The material master for finished goods is partially maintained. The sales department must

maintain additional information. The maintenance consists of the following:

Minimum order quantities should be maintained.

Delivery plant

Loading group

Transport group

Storage condition

3.5 Vendor Master Records

Vendor master maintenance for trade vendors are maintained De-centrally by Purchasing

Department while maintenance of non-trade vendor masters is maintained by Accounting.

3.5.1 Account Groups

EMAMI normally purchases from a few, regulated suppliers. Where circumstances warrant, the

occasional use of additional suppliers is possible. By policy, EMAMI will deal with these

occasional vendors using the system’s one –time vendor capability.

Account groups and number range information for vendors is in the following table:

Account group Description Number rangeKRLV Local Vendors Internal numeric

KRFV Foreign Vendors Internal numeric

KROT One-time vendors External alphabetic

Other than for the one-time accounts, EMAMI will use internal number assignment. In order to

facilitate reporting and control, there should be two one-time vendor accounts: one for foreign

and one for the domestic suppliers.

The field status for the account groups should reflect a mandatory field for payment method.

The following reconciliation accounts should be used as appropriate.

Local vendors payable

Vendors payable- one- time accounts

For the line item display for one- time- accounts, sort by name and city.

3.5.2 Vendors

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The following vendor master records need to be defined.

Supplier

Address

Contact

Description Terms of payment

Valid currency

Himalaya Herbal Extracts

limited1001 First Street

Himachal Pradesh

Contact: Ms. Martha

Suppliers of Herbal products PT01

INR

Tiruvannnan

Coconut suppliers

Tiruvannnan

Coconut suppliers limited

PT01

INR

Vikranth Chemical Industries,

Bhopal

Madhya Pradesh

Suppliers of calcium carbonate PT01

INR

Axion Perfumes limited

M G Road,Mumbai

Perfumes suppliers PT01

INR

Raghu Packing industriesHyd.

Andhra Pradesh

Suppliers of Packing Materials PT01INR

4. Materials Management

All deliveries of materials will be entered as goods received by the inventory management

department with invoice verification performed by the accounting department.

4.1 Materials Master Data – Material type

EMAMI uses the material type HALB to describe all semi-finished products.

4.2 Procurement

The following purchasing Groups are required:

001 for procurement of Herbal

002 for procurement of Chemicals

003 for procurement of Packing

Requirements for both Manufacturing and Marketing companies are ordered by one purchasing

organization based in Kolkata. However, there are Ponicherry requirements that are orderedlocally but under the same purchasing organization.

In addition, someone must consider the following points while ordering raw materials or semi-

finished products:

4.3 Valuation

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EMAMI is valuing products at standard cost

4.4 Physical Inventory Method

Because EMAMI uses annual inventory count, all company stocks have to be physicallyinventoried by the balance sheet cut-off date. During the counting, the warehouse for material

movements must be blocked.

4.4.1 Materials Requirements Planning

ABC Marketing in Kolkata orders materials from Kolkata, maintained through MRP. Material

requirements planning will be carried out for the creation of purchase requisitions and planned

orders. The requisitions are then automatically converted into purchase orders. All requisitions

that do not have an explicit source of supply assigned to them are to be converted manually.

Some packing materials are planned using automatic re-order point planning. Finished goods are

stock based on manual stocks and Forecasts provided by the sales offices. EMAMI would like to

utilize consumption of independent requirement.(Recommended strategy 40).

4.4.2 Distribution Center Inventory

Using the prescribed methods above, replenish the inventory levels at the distribution centers for

all salable products.

4.4.3External Service Management

Kolkata and Pondy plant annually requires duet work cleaning and air filter replacement to the

plant HVAC System. Das Cleaning services has selected though competitive bid Cleaners, Inc for

the project. The cleaning contract is valued at INR 15000. The cost of this service should be

allocated to all production cost centers. All payments to quick cleaning are subjected to service

entry and acceptance of the actual services rendered.5. Sales and Distribution

5.1 Organization

5.1.1 Sales Organization

Business in the INDIA is divided into two sales organizations, one for the Kolkata and one for

Pondicherry. Each sales organization is responsible for negotiation and fixing of conditions and

characteristics of business transactions.

5.1.2 Distribution Channels

EMAMI sales organizations use two distribution channels through which to sell their goods:

Wholesale trade

Retail trade

5.1.3 Divisions

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The products of EMAMI are divided into Two groups. All product lines can be sold through both

distribution channels by both sales organizations.

Herbal Division

Cosmetic Division

5.1.4 Sales Offices

It has been decided to use sales offices to differentiate the sales made by the various regions. This

will allow easy reporting of business volume by office. The following sales offices must be

defined:

Delhi

Kolkata

Chennai

Mumbai

There is no freight charge or profit, thus there is no accounting implication re transfer of stock

between distribution points.

5.1.5 Distribution Centers

As discussed earlier, Kolkata and Pondy plants are responsible for all manufacturing products.The other locations, do not manufacture any products.

Inventory at the Kolkata distribution center is replenished through plant transfers that result from

sales forecasts. There is no accounting implication since EMAMI owns both locations.

The Marketing Company (ABC Marketing) purchases inventory in Kolkata from EMAMI

according to annual agreement. This agreement is in the form of a scheduling agreement, which

outlines quantities and dates.

EMAMI serves as a vendor for ABC Marketing, and ABC Marketing is defined as a customer of

EMAMI . Therefore a scheduling agreement is created by EMAMI for the delivery schedule of

their customer ABC Marketing. The lines in the scheduling agreement appear as demand in the

Kolkata distribution center.

5.1.6 Shipping Points

Each plant has two shipping points that are responsible for the processing deliveries. For normal

delivery there is a shipping point which processes the bulk of the deliveries. In addition EMAMIoffers its customers an express delivery options using Guaranteed Overnight Delivery (G.O.D)

which guarantees delivery in one day anywhere in India. This shipping point represents a specialshipping area reserved for express deliveries.

Shipping point Description

K001 Kolkata Regular delivery

KEXP Kolkata Express delivery

P001 Pondy Regular delivery

PEXP Pondy Express delivery

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5.2 Functions

5.2.1 Pricing

Pricing used during order entry and invoicing is the responsibility of each sales organization.Therefore any material pricing, discounts and surcharges can vary depending on the sales

organization. It has been decided that each sales organization is to have a separate pricing

procedure to reflect its own pricing policy. Therefore certain condition types procedure used for

Canadian customers.

Furthermore, the distribution channel also influences pricing. A special discount is to be defined

for wholesale customers, which reduces the gross price of the product. It has been decided that

the price group field in the customer master will be used to determine if a wholesale discount

applies. It would be possible to simply make the discount dependent on the distribution channel

alone, but the use of the price group field was decided upon since it allowed for multiple discount

rates based different price groups.

The following conditions apply to pricing at EMAMI :

• A basic material price is established for each sales organization scaled by quantity.

• Customer –specific material prices are possible

• At 25%discount applies for wholesale customer orders

• Pricing determined at order entry is firm and is not re-determined at billing time

• The value of discount based on the terms of payment used should appear in the

pricing details for an item.

• Material cost should also be included in item pricing details along with the

computed Gross profit margin.• An addition freight charge should be included in the item in the case of express

delivery. The amount is dependent on the weight of the goods shipped and is

triggered by a special Incoterms that you enter in the sales document for express

delivery.

5.2.2 Availability checks and Transfer of Requirements

Both EMAMI and ABC Marketing., would like to track each requirement generated by a sales

order separately. This means that individual requirements will be passed for the materials. The

alternative would be to accumulate demand into collective requirements for a day or a week but

then the details of the source of the requirements is not available.

5.2.3 Shipping

The data required for shipping should be defaulted as much as possible by the system. Areas

where this determination is to be automated included shipping point, and picking locationdetermination.

5.2.3.1 Shipping points

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The shipping point is specified for every order item. In the determination tables, one shipping

point is specified as default and others can be specified as alternates. The default shipping point is

influenced by the shipping condition from the customer master, loading group from the material,

and delivery plant. Ensure that two shipping conditions, one for regular and one for expressdelivery are defined as well as the related determination table. A single group can be used since

all materials are located onto trucks using a forklift.

The shipping point should be determined as follows:

Delivering

Plant

Shipping

Condition

Loading

Group

Shipping

point

Kolkata 01 002 KOO1

Kolkata EX 001 KEXP

Pondy 01 001 P001

Pondy EX 001 PEXP

5.3 Additional Sales Information

Configure the system to satisfy the following requirements:

Use the standard order type available in the system to process regular customer orders.

EMAMI does not require specialized orders.

EMAMI has decided that in addition to the standard order type, credit and debit requests as

well as the return order type will be used. Configure the system so that these document types

are available at order entry but no others, e.g. Consignment order types.

It has also been decided that the business terms in the sales document header are valid for all

items and cannot be changed at the item level.

The only partner function that can be different between items in a sales order is the ship-to-

party.

An incompletion procedure based on the standard procedure is to be used for order entry.

However, do not include the purchase order number in the list of fields to be checked. Also

issue a warning message if weights and volumes are missing.

Input facilities must be used in order to facilitate fast and efficient order entry by defining a

product proposal.

5.4 Additional shipping Information.

The shipping must be processed optimally and quickly. The shipping team has decided the

standard functionality is adequate and that the standard delivery document type will be used for sales orders.

Due to the volume of deliveries expected, the creation of the delivery documents will be done

daily using collective processing. The exception to this rule is the case of a order where the

customer has requested the express delivery option. For express delivery, the delivery

document will be created separately for the individual order.

Warehouse management will not be incorporated since the warehousing structure is not

complex. However, the storage location for picking should be proposed in the delivery

document.

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5.5 Additional Billing Information

Consider the following billing related requirements:

A standard invoice related to a delivery is to be used.

Customers normally receive individual invoices for each delivery. However, it has been

decided that billing schedules will be supported for customers who request it. Initially a bi-weekly calendar will be defined to consolidate all deliveries into a billing date falling on the

Friday of 2nd and 4th week of every month.

The accounting department maintains customer credit limits. The credit control area is the

organizational unit, which sets the credit limit for customers and controls it. A credit control

area at EMAMI contains only one company code. For every sales document (order type etc)

it can be determined, whether a credit limit check is warranted.

6. Financial and Cost Accounting

6.1 Document Processing

Enter the following document types. If necessary add the appropriate

DR Customer invoice

DS Customer Credit memo

DZ Customer payment

KR Vendor invoice

KG Vendor credit memo

KZ Vendor Payments

SA G/L accounts

Use an internal number assignment with the corresponding number range intervals.

6.2 Organization Information

The company codes will roll up into a corresponding area. Define the controlling area andallocate it to the respective company code.

Enter the basic data as follows:

Activate cost center accounting.

The cost accounting currency in identical with the group currency of the company.

Activate the charts of accounting.

The periods correspond to the periods of financial accounting, i.e. 12 accounting periods and four special periods.

Company code check.

Maintain the controlling area currency and the two main currencies for the company code.

Implement number range groups for activity related and period –related activities in and actual.

Allocate number ranges for those groups within cost center accounting.

Complete data entry is only required in one company. Partial data entry is necessary in the other company to demonstrate aggregation of data at the corporate level.

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Design a line for AR, AP and GL to display all assigned currencies.

6.3 Cost Element Accounting

For primary cost entry and primary cost allocation take over the G/L accounts of 4xxxxx From

financial accounting into cost accounting. Therefore you need to analyze the chart of accounts and determine the appropriate cost element types.

Implement the respective secondary cost elements, statistics ratio and activity types for the

internal cost allocation.

The validity period for cost elements and activity elements is from 01.01.2008 till 31.12.9999.

Statistical figures 91000(employees in ea.)

Statistical Key figure 7800 (energy consumption in kWh)

Activity type 1410 (Set up)

Activity type 1440 (Production)

Activity type 1450 (Packing)

Cost element for internal allocation 610000

Cost elements for cafeteria assessment 510000

Internal Order settlement cost element 650000

To group similar cost elements, implement the following cost elements groups:

Group Cost Elements

GOAS All other groups, object analysis sheet

Material 40xxxx, 4150000Energy 4161000, 416200,416300

Personnel 42xxxx, 43xxxx, 44xxxxx

Plant maintenance 45xxxxTaxes 46xxxx

Rents 47xxxx

Assessment 510000

Activity allocation 610000

Settlements 650000

6.4 Cost Center and Internal Order Accounting.

6.4.1 Cost Center Hierarchy

Set up appropriate standard hierarchies for your controlling area:

K00 Standard hierarchy, EMAMI.

K99 Clearing cost centers

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K99X6 Clearing cost center

X16099 Clearing cost center

K00X EMAMI ,

K00X1 General cost center

X11000 general cost center X11100 real estate/buildings

X11200 cafeteria

K00X2 Service cost center

X12000 service cost center

X12100 plant maintenance

X12200 internal transportation

K00X3 Production center

X13000 production center Pondy

X13100 production center Kolkata

K00X4 Material center

X14000 material center

X14100 material purchase

X14200 operating funds purchase

K00X5 Distribution and Administration

X15000 administration

X15100 management

X15110 sales Kolkata

X15210 sales Pondy

X15310 administration Kolkata

X15410 administration Pondy

Create the standard hierarchy for the IN (where X=1) following the chart above. K001 e.g. would

represent the cost centers assigned to the EMAMI Company code.

Configure cost centers for all primary and secondary costs for actual and planned postings.

Service cost centers also have to be managed on a quantity basis.

The cost center currency corresponds to the company code currency.

The validity period for the cost centers is from 01.01.2008 until 31.12.9999

Assign the cost centers to a business area of your choice.

6.5 Planning

The prices for activity types should represent given standards and not calculated values. Generate

a plan for the following key figures, activity types and cost elements in the EMAMI Company.

Check with production for additional requirements.

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6.5.1 Statistical Key Figure Planning 9100 – No. of employees.

To apportion the cost of the cafeteria corresponding to the no. of employees of the single cost

center, the ratio for the following cost centers must be planned as a constant.

• General Cost center 15 employees

• Service cost center 45 employees

• Kolkata Production center 50 employees

• Pondy Production center 60 employees

• Material 25 employees

• Distribution and administration 20 employees

6.5.2 Statistical Key Figure Planning 7800- Energy consumption

To apportion the cost of energy corresponding to the planned energy consumption rates of thesingle cost center, the key figure for the following cost centers must be planned as a constant:

• General cost center 1000kwh

• Service cost center 1500kwh

• Production 13000kwh

• Material 1500kwh

• Distribution 3000kwh

6.5.3 Activity Type Planning 1410 –setup

The activity type “setup” must be planned on cost center X12100 plant production with the

following values:

Planned activity 2000hr

Standard rate INR45.00/hr

6.5.4 Activity Type planning 1440- Production

The activity type “production” must be planned on cost center x13100 all products with the

following values:

• Planned activity 20000 hr.

• Standard time INR15.00/hr.

6.5.5 Activity Type planning 1450-Packing

The activity type “Packing” must be planned on cost center X13100 for all products with thefollowing values:

• Planned activity 40000hr

• Standard time INR18.00/hr

6.5.6 Direct Planning

Generate a plan for the following cost elements in EMAMI:

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Cost center X11000- General CC

430000 salaries INR150, 000.00 yr.

415000 salaries INR 80,000.00 yr.

Cost center X11200 - Cafeteria

415000 cost for external procurement INR120, 000.00 yr.

421000 indirect labor costs INR60, 0000.00 yr.

430000 salaries INR100, 000.00 yr.

Cost center X12000 - Service

415000 cost for external procurement INR150, 000.00 yr.

421000 indirect labor cost INR80, 000.00 yr.

Cost center X13000 - production

415000 cost of external procurement INR100, 000.00 yr.

430000 salaries INR100, 000.00 yr.

Cost center X13100 – Production center pondy

400000 other raw material INR400, 00.00 yr.

420000 direct labor cost INR480, 000.00 yr.

430000 salaries INR100, 000.00 yr.

Cost center X13200 – Production center kolkata

400000 other raw material INR500, 000.00 yr.

420000 direct labor cost INR500, 000.00 yr.430000 salaries INR110, 000.00 yr.

Cost center X14000 – material center

415000 cost of external procurement INR350, 000.00 yr.

430000 salaries INR200, 000.00 yr.476000 office supplies INR25, 000.00 yr.

Cost center X15000 - administration

430000 salaries INR200, 000.00 yr.

476000 office supplies INR40, 000.00 yr.476500 general management costs INR100, 000.00 yr.

Cost center X16099 - Clearing

416100 Electricity, fix INR10, 000.00 yr.

416200 Electricity, variable INR190, 000.00 yr.

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6.5.7 Planned Assessment

Costs have been planed and entered into the cafeteria cost center. Within the framework of plan

assessment, the costs will be assessed based on the number of employees within the

corresponding cost centers. Enter the corresponding sender recipient relationship.

6.5.8 Internal Order Planning

6.6 Actual Costs recording

6.6.1 Business transactions

6.6.2 Internal cost Allocation

6.6.3 Actual Assessment

6.6.4 Actual Order Settlement

6.7 Reporting

Analyze the corresponding transactions in view of cost centers and cost elements.Perform a customer account analysis.

Display vendor or customer’s line items and drill down to originating documents.

6.8 Closing operations

A limited month-end closing should be completed in the respective company codes based on the

current month. Therefore, it is necessary to close the accounting period by the last day of the

month and to open the new period for the next month. Maintain the corresponding tables. Drawup the preparation of balance sheet and a profit and loss statement. Identify the account balance

changes from prior month and reconcile the differences to the corresponding transactions.

6.8.1 Financial Statements

In order to prepare balance sheet and profit and loss statement at the subsidiary level, a financialstatement version with the corresponding hierarchy levels has been created.

Version Name: MSCA

Each group is totaled and sub-totaled. Each position has its allocated text. G/L accounts have

been allocated to the lowest level. Revise if necessary.

7. Production Planning (Bonus Portion)

7.1 Work Centers

The following work centers are available.

GRIND1 Grinding of calcium carbonate

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MIX1 Mixing 1

PACK Packing

EXTR Coconut oil extraction

MIX2 Mixing 2

These workcenters are assigned to cost centers and activity types as defined by controlling and

production management. The quantity of resources in the workcenter must match the quantities

budgeted in controlling.

7.2 Capacity

Assume all work centers are not hierarchically structured and have the following capacity.

Start time 8:00 a.m.

Stop time 6:00 p.m.

One hour break time at lunch.

Effectively at 80%.

At each work center labor capacity is to be evaluated. The available capacity should be adapted

after a planning run with capacity evaluation. Discuss possible bottlenecks and discuss methods

to solve the problem.

7.3 Routings

7.3.1 Routings for the Navaratan oil

Coconut oil extraction.

Herbal mixing.

Quality inspection.

Packing7.3.2 Routings for the Anticeptic cream

Mixing of Oint base and herbal extract

Packing

Inspection

7.3.3 Routings for the Talcum powder

Grinding of calcium carbonate

Mixing with perfumes

Quality inspection.

packing

7.4 Bills of Material

7.4.1 Bill of Material of Navaratan hair oil

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7.4.2 BILL OF MATERIALS FOR ANTISEPTIC CREAM

7.4.3 BILL OF MATERIALS FOR SHAVING CREAM

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Ointment Base

30 gm

Antiseptic herbal mix

70 gm

Handle Bar 70031

EMAMI ANTI SEPTIC CREAM

100 gm

Navaratan hair oil

Coconut Oil Herbal mix

Foaming agent

10 ml

Perfumes

1 ml

Cream

89 ml

SHAVING CREAM

100 ML



7.4.4 BILL OF MATERIAL TALCUM POWDER

7.5 Materials Requirements PlanningMaster production schedule / materials requirements planning needs to be carried out for the

creation of dependent requirements & planned orders. The planned orders need to be converted to

production orders on all levels of the assembly.

7.6 Production Orders

The production orders should make use of the bills of material & routings. The assignment of

materials to the operational steps is maintained in the routings. Component availability checking

should include production orders and purchase orders at the time of the creation and only on-hand

available stock at the time of the release of the production orders. Confirmation of the last

operation in the routing should trigger a goods movement to inventory. If the automatic goods

movement ever fails a rework goods movement should be processed.

7.7 Capacity Planning

The capacity planning is used to identify bottlenecks in available production capacity. In the case

that these exist, pre-production is increased in the month of least demand. If this is not sufficient,

the earliest date available to promise is determined.

Prototype Presentation

A number of core business functions have been identified. The supporting R/3 transactions are to

form the basis for the presentation made to the steering committee.

1. Demonstrate your Implementation project. Due to the lack of time no resource assignment

and documentation is required.

2. Display the beginning Balance Sheets and P & Ls for the two subsidiaries.

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Calcium Carbonate

198 m

Perfumes

2gm

EMAMI TALCUM POWDER

200 gm



3. Demonstrate the pre-planning in Kolkata the demand transfer to the production plant. Execute

MRP for material Navaratan hair oil in the production plant.

4. Create a purchase order for the vendor .Convert one of the requisitions generated by MRP into a Purchase Order.

5. Receive inventory against the purchase order

6. Show the service PO created for HVAC cleaning services in the Kolkata plant.

7. Demonstrate service entry and acceptance for HVAC cleaning services.

8. Invoice Verification.

Use invoice verification to record the invoice from vendor

9. Create a customer sales order for the Kolkata sales office.

Customer, ABC Marketing places an order for express delivery as follows:

Material Quantity

Navaratan oil 10000 pc

Anticeptic cream 7500 pc

Talcum powder 5000 pcShaving cream 5000 pc

Verify the following are correct:

• Shipping point

• Delivery Plant

• Pricing

Process the delivery for this order. All materials are to be fully delivered. Complete picking and

goods issue. Ensure that the storage locations were defaulted accordingly.

10. Create the billing document for this delivery.

Create the billing document and ensure that the posting to financial accounting is successfully

completed.

Examine the accounting posting to validate the general ledger accounts used.

11. Create a returns order with reference to the sales order.

The customer has called and complained about the quality of the finish on some of the

Materials they received. Create a returns order for 500 pieces of material Navaratan oil.

12. Create the delivery for the returns order.

Post goods receipt for the return of the damaged goods.

13. Create the corresponding credit memo.

Create the credit for the returns order and examine the accounting posting.

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14. Post an incoming payment.

Receive a payment from customer ABC Marketing. A deduction was made for INR23.00 for

excess freight charges and INR 27.00 for arriving 3 hours late. We have agreed to absorb the

INR23.00, however the INR 27.00 still owes and should be recorded using a notation of 'item

in dispute'.

15. Post a vendor invoice using an account assignment model.An invoice has been received by the landlord for the rent to be charged for the month.

The charges are always recorded to the same cost centers prorated by the sq. footage for each

cost center.

Cost center Sq footage

11000 1000

12000 1200

15000 900

16. Generate a payment run for all the outstanding invoices.

The payment run should contain at least 3 invoices, one of which is blocked from payment.

Create an appropriate blocking reason.

17. Perform an assessment.

The cafeteria costs will be assessed based on the number of employees.

18. Display the profit and loss statement for EMAMI .Display a financial calendar showing all payment runs and financial statements. Include a

message, which reminds the controller when the month-end reports are finished and ready for

preview.

19. Demonstrate the completion of the partial delivery for your ABC Marketing order.

20. Perform an actual settlement of the ABC Marketing order.

21. Be prepared to show and discuss the Cross Company Stock Transfer requirement between

Kolkata and Pondy.

22. Close the month and reconcile the Balance sheets and P & Ls for the two subsidiaries to the

prior month.

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Emami Cosmetics Case Study

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