AL-ITTEFAQ STEEL HOLDING
SAP BPC(Business Planning &
Consolidation)
Overall Project Scope
Quantitative Income Statement – Per Ton Income Statement of Detailed Revenue and Product Cost per ton of operating companies at Stand Alone and Consolidated Level.
Legal and Zakat Consolidation Monthly and Annual Consolidation of all SAP and Non SAP Companies at ISPC Level for Statutory Audit and special purpose Financial Statements for Zakat.
Product Profitability Monthly Profit Center wise Contribution Margin with unique stock valuation and data extraction for decision making and operational measurements.
Management Consolidation Monthly Consolidated and Stand Alone Management Report at ISPC operating entities with all performance ratios, direct cash flow movements.
Reports Covered in SAP BPC
Quantitative Analysis (Per Ton Report) Entity wise Stand Alone QR Report Entity wise Contribution Margin
Report Consolidated QR Report Cost Analysis report Performance Snap Shot Report
Legal and Zakat Consolidation Balance Sheet – Consolidated Balance Sheet – Columnar Entities
with Elimination Column Balance Sheet – GL Group Split Statement of Income –
Consolidated Statement of Income - Columnar
Entities with Elimination Column Statement of Income – GL Group
Split Indirect Cash Flow Stand Alone
and Consolidated Fixed Asset Schedule Investment Reconciliation
Product Profitability Contribution Margin Pricing Standard Entity-Segment (Profit Centre) wise
performance Closing Stock Valuation (Additional) GL wise Detailed Report (Additional) Production Quantity, Material wise
and Profit Centre wise (Additional)
Management Consolidation Balance Sheet – Consolidated Balance Sheet – Columnar Entities
with Elimination Column Balance Sheet – GL Group Split Statement of Income –
Consolidated Statement of Income - Columnar
Entities with Elimination Column Statement of Income – GL Group
Split Direct Cash Flow Stand Alone and
Consolidated Ratio Analysis – Summary and
Detailed
Achievements from Project Platinum
Excel Based Working
Material and GL Wise Data extraction
Process Gaps and Reporting
Manual Data and Reporting Process
Multiple Excel Files
Manual Data Sharing
Distributed and Discrete Data
Time Gap in Report and System Entry
Process Streamlining
Report Developments
Report Validation and Simulation
Data Extraction Modeling
Data reporting Modeling
Reporting Structure Refinements
Efficient Data Extraction Design
One Data Source – Distributed and Controlled Access
Excel Interface for Enhanced Integrity
Process Transformation
Process Automation
Least Manual Intervention
Timely Availability of Reports
Reporting Structure Refinements
Streamlined Data Extraction
Indirect Control over System Entries
User Friendly Reports
Earlier Process Implementation After Implementing BPC
Value Addition – One Data Source – Distributed and Controlled AccessAll management reports are on one Platform, adding value by time saving for report retrieval.
Excel Interface for Enhanced IntegrityAll Reports are excel based, user can save these reports as a normal Excel and also customize existing report as per their requirement.
Process TransformationLoophole in important report are removed and reporting process streamlined for all Management Reports covered under Project. This will eliminate all the data cleansing and manual processing.
Process Automation Manual generation of Per Ton report is automated with complex data extraction and calculation logic. This provides daily updated Per Ton Report which add value in cost analysis and decision making. This will automate all formulas for calculation, by saving time on checking each report every time.
Least Manual Intervention All calculation logics, complex GL grouping, Material Grouping are automated. The core value addition of the project, as once data is updated in any GL or Material, all related reports will get updated automatically.
Value Addition – Project Platinum Timely Availability of ReportsAll Per Ton Report, Consolidation Reports and Profitability reports are automated and available on one platform with updated value. Adding value in business analysis as on time availability of critical report.
User Friendly ReportsAll reports are in Excel, with value added drag and drop, user defined and in the format required with color in every cell level values.
Indirect Control over System EntriesProcess automation calls for refined data entry structure as well, by implementing system to it now there will be indirect control over the wrong entry posing.
Streamlined Data Extraction Data Extraction for Per Ton report logic is refined with filling gaps in current logic. Even for some of companies it is totally reinvented with extreme efforts to add value to report with proper numbers in it.
Reporting Structure RefinementsManagement reporting structure is refined with elimination all reporting loopholes which were existing because of Manual Processing of Data. All reports are now in one format, color and fonts as required by business.
INTRODUCTION – SAP FI/COFINANCIAL ACCOUNTING (FI)
MANAGEMENT ACCOUNTING (CO)
General LedgerGeneral Ledger
Accounts ReceivableAccounts Receivable
Accounts PayableAccounts Payable
Asset ManagementAsset Management
Bank AccountsBank Accounts
Cost Element Accounting
Cost Element Accounting
Cost Center Accounting
Cost Center Accounting
Internal OrdersInternal Orders
Product CostingProduct Costing
Profit Center Accounting
Profit Center Accounting
GENERAL LEDGERACCOUNTS
Components of Financial Accounting (FI); Lets an organization manage external reporting
The Financial Accounting (FI) application component fulfills all the international requirements that must be met by the financial accounting department of an organization.
All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR) components are posted real-time to Financial Accounting by means of automatic account determination.
Preparation of operational information to assist strategic decision-making within the organization
Components of Management Accounting (CO); Lets an organization manage internal reporting
Controlling provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization.
GENERAL LEDGER (FI-GL)
Essentially, the general ledger serves as a complete record of all business transactions.
Automatic and simultaneous posting of all sub-ledger items in the appropriate general ledger accounts (reconciliation accounts)
Simultaneous updating of general ledger and cost accounting areas
The central task of General Ledger accounting is to provide a comprehensive picture for external accounting and accounts.
Recording all business transactions (primary postings as well as settlements from internal accounting) that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.
ACCOUNTS RECEIVABLE (FI-AR)
InvoiceProcessing
Master Data / Credit
Management
Accounts Receivable
Receipt / Payments
Account Analysis &
Reconciliation
Reporting
FinancialAccounting
PeriodicProcessing
The Accounts Receivable application component records and administers accounting data of all customers.
It is also an integral part of sales management.
Postings in Accounts Receivable are also recorded directly in the General Ledger.
Different G/L accounts are updated depending on the transaction involved (for example, receivables, down payments, and bills of exchange).
ACCOUNTS PAYABLE (FI-AP)Vendor Invoice Process - Three-Stage Verification
InvoiceProcessing
SundryLogistics
Master Data
Accounts Payable
Payments / Disbursements
Account Analysis &
Reconciliation
Reporting
FinancialAccounting
PeriodicProcessing
The Accounts Payable application component records and administers accounting data for all vendors
It is also an integral part of the purchasing system
The system automatically makes postings in response to the operative transactions
BANK ACCOUNTING (FI-BA)
This component is used to handle accounting transactions that business process with bank
It includes variety functions such as
Management of Bank Master Data
Check Processing
Bank statement Processing
Incoming and outgoing payments
Cash Journal Master Data
Cash Journal Posting & Reports
ASSET ACCOUNTING (FI-AA)
Generalledger
accounts
Balancesheet
Assetclasses
Assetmaster
records
A L
Vehicles Fixtures andfittings
Buildings Assets underconstruction
Asset Accounting component is used for managing and supervising fixed assets
In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets
With the integration feature in the SAP System, Asset Accounting transfers data directly to and from other SAP components. For example,
it is possible to post from the MM component directly to FI-AA.
When an asset is purchased or produced in-house, we can directly post the invoice receipt or goods receipt, or the withdrawal from the warehouse, to assets in the Asset Accounting component.
From the Plant Maintenance (PM) component, we can settle maintenance activities that require capitalization to assets.
At the same time, we can pass on depreciation and interest directly to the Financial Accounting (FI) and Controlling (CO) components.
COST ELEMENT ACCONTING (CO-CE)
Cost Element Accounting is the area of cost accounting where we track and structure the costs incurred during a settlement period. its a detailed recording of data that forms the basis for cost accounting
Each business transaction that involves costs updates the CO component with detailed information on the cost element and on the account assignment object.
The cost and revenue flows will update FI and simultaneously create equivalent postings into CO.
The relevant accounts in FI are managed in CO as cost elements or revenue elements.
COST CENTER ACCONTING
Cost Center is an organizational unit within a controlling area that represents a clearly delimited location where costs occur
Cost Center Accounting lets business analyze the overhead costs according to where they were incurred within the organization.
INTERNAL ORDERS (CO-IO)
Internal Orders
Cost Accounting FunctionsCost Accounting Functions
RecoverableOrders
Overhead orders
Investment orders
Internal orders describe individual jobs within a controlling area. Orders support action-oriented planning,
monitoring, and allocation of costs.
Internal orders may be used for a variety of purposes:
• Monitor internal actions settled to cost centers• Monitor internal actions settled to fixed assets• Monitor internal actions settled to GL accounts
PROFIT CENTER ACCONTING (CO-PCA)
PCA enables:-Structuring of the A Group according to Strategic Business Units (SBUs), leading to: Full Income Statements according to lines of business (Product Groups rolled up to SBU/Sectors)
PRODUCT COSTING (CO-PC)
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BUDGET CONTROL SYSTEM (FM-BCS)
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SCRAP
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REPORTING REQUIREMENT
SCRAP FI – Financial Accounting Modules
APAccounts Payable
A MAsset Management
General Ledger
GL ARAccounts Receivable
FI