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PROJECT ARJUN

Savera Marketing Agency Pvt. Ltd.


Business Blue Print Document
For mySAP Business Suite Implementation

Strictly Confidential
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Company Overview......................................................................................6
Background for mySAP implementation.......................................................6
Benefits of implementing mySAP Business Suite in SAVERA........................6
mySAP Business Suite Modules Identified for implementation.....................6
Document Scope..........................................................................................7
Objective of BBP document..........................................................................7
Target Audience............................................................................................7
Global settings..............................................................................................8
Organization structure..................................................................................8
Business Objects..........................................................................................9
Legal Entities.............................................................................................9
Controlling Area.........................................................................................9
Branches /Plants........................................................................................9
Profit Centers...........................................................................................10
Cost Centers............................................................................................10
Sales Organization...................................................................................10
Distribution Channel................................................................................11
Division....................................................................................................11
Sales Office..............................................................................................11
Purchasing Organization..........................................................................12
Purchasing group.....................................................................................12
Plant........................................................................................................12
Storage location......................................................................................13
Financial Accounting...................................................................................14
1.0 GENERAL LEDGER.............................................................................14
1.1 Organizational Structure................................................................14
1.2 Fiscal Year:......................................................................................15
1.3 Currencies......................................................................................16
1.4 Chart of Accounts:..........................................................................16
1.5 Accounts Group :...........................................................................18
1.6 Foreign currency valuation.............................................................18
1.7 Document types:............................................................................19
1.7 Interest Calculation:.......................................................................20
1.8 Tax on sales and Purchases............................................................21
1.9 Tax Deducted at Source(TDS).........................................................21
1.10 Pay Roll Accounting:.....................................................................23
1.11 Closing Procedure:.......................................................................23
1.12 Financial Statement version.........................................................25
2.0 ACCOUNTS PAYABLE..........................................................................26
2.1 Vendor Master Records:.................................................................26
1.2 Down Payments..............................................................................27
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2.3 Invoices and Credit memos:..........................................................27


2.4 Payment Terms and Interest calculations.......................................29
2.6 Vendor Balance Analysis................................................................29
3.0 ACCOUNTS RECEIVABLE....................................................................30
3.1 Customer Master records:..............................................................30
3.2 Credit Control Management...........................................................31
3.3 Customer down Payments..............................................................31
3...........................................................................................................31
3.6 Customer Payment Terms:.............................................................32
4.0 BANK ACCOUNTING:..........................................................................33
5.0 ASSET ACCOUNTING..........................................................................35
6.0 REPORTS............................................................................................40
Controlling..................................................................................................41
SAP controlling overview.........................................................................41
Cost Center Accounting...........................................................................42
Cost element accounting.........................................................................44
Internal Order:.........................................................................................47
Profit center accounting..........................................................................48
Reports....................................................................................................54
Material Management.................................................................................55
Enterprise structure.................................................................................55
General Information................................................................................57
Procurement planning from principal vendors.........................................59
Procurement planning from local vendors...............................................61
Purchase order processing......................................................................61
Goods receipt against purchase order.....................................................63
Stock transfer from central warehouse to branches................................66
Consignment procurement......................................................................67
External service procurement.................................................................68
Procurement of other than stock material...............................................69
Third party procurement.........................................................................69
High sea procurement.............................................................................70
Inventory Management...........................................................................70
Pricing procedure....................................................................................72
Invoice verification..................................................................................74
Vendor functions.....................................................................................76
Reporting Requirements..........................................................................76
Vendor Claims.........................................................................................77
Quality Management..................................................................................80
Quality Activity at branch level (Distribution Business)...........................80
Quality Management in RMA branches / RMA HO...................................81
Quality Management in Daman manufacturing unit...................................82
Reporting Requirements..........................................................................83
Sales & Distribution:...................................................................................85
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Sales Organization...................................................................................85
Distribution Channel................................................................................85
Division....................................................................................................87
Sales Office..............................................................................................88
Plants.......................................................................................................89
Shipping Point..........................................................................................90
Customer Master.....................................................................................90
Sales Process...........................................................................................93
Reasons for Sales:................................................................................93
Mode of Receipt of Orders:...................................................................93
Payment terms:....................................................................................93
Normal Sales Cycle..................................................................................94
Texts:.......................................................................................................95
Reasons for the Rejection of the line items:............................................96
Credit Check............................................................................................96
Availability Check....................................................................................98
Incompletion procedure...........................................................................99
Pricing...................................................................................................100
Schemes/ Incentives..............................................................................101
Rebates processing:..............................................................................102
Partner determination Procedure..........................................................103
Consignment business process:............................................................104
Government sales.................................................................................105
High Sea Sales:......................................................................................107
Demo.....................................................................................................107
Sales return...........................................................................................108
Credit Memo / Debit Memo:...................................................................109
Reports:.................................................................................................109
Customer Service.....................................................................................110
Maintenance planning plant..................................................................110
Maintenance plant.................................................................................111
Functional location................................................................................111
Equipment.............................................................................................112
Work Center:.........................................................................................112
Serial Number management:................................................................113
Call Management..................................................................................113
In House Service Order Processing:.......................................................115
External Service Order Processing:.......................................................116
Service Processing with Buffer stock:....................................................117
Service processing: Product not sold by SAVERA: out of warranty:.......118
Material sold by SAVERA within warranty of Vendor and SAVERA is
authorized for services:.........................................................................119
Material sold by SAVERA within warranty of SAVERA and SAVERA is
authorized for services:.........................................................................120
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Material not sold by SAVERA within Warranty of Vendor and SAVERA is


authorized for services:.........................................................................120
Planned Service Maintenance:..............................................................121
Maintenance planning...........................................................................122
Installation.............................................................................................123
Billing request - periodic........................................................................124
Billing request - static............................................................................124
Reports:.................................................................................................125
Assumptions.............................................................................................125
Critical Project Success Factors................................................................125

Confidentiality Statement
This document contains information, which is confidential and proprietary
by nature. It is intended for use by Savera Marketing Agency Pvt. Ltd. It
may not be reproduced or disclosed to any other party or utilized in any
manner other than that specifically contemplated herein.
This document was prepared based on information and data supplied by
Savera Marketing Agency Pvt. Ltd. It represents suggestions, proposed
products and services to meet the requirements of the company to the
degree that has been defined and understood at this time.

Strictly Confidential
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Company Overview
Savera Marketing Agency Pvt. Ltd is one of the leading distribution
companies in India with an annual turnover of around Rs 200 Crores. It has
its operations in 20 branches all over India having its head office in Kolkata
SAVERA distributes world famous brands like Rapoo , Gainward , Adata,
Asia Powercom , Optima AMD, Asustek, Compex, HP,IBM(Notebooks &
LCDs), Lenovo, Logitech, Microtek, Netgear, Sony & XFX, Samsung, Intel,
AMD and Intex along with many others.
Background for mySAP implementation
SAVERA had identified the need for implementing robust IT systems to
support their business and growth plans. SAVERA operates in a highly
competitive environment and is consolidating its presence in the market
place. It is a medium sized company but has a lot of potential to improve
both its top line and bottom line. Based on general understanding and
after studying the requirements, SAVERA found high degree of suitability of
mySAP Business Suite as a business solution to meet their needs.
Benefits of implementing mySAP Business Suite in SAVERA
Optimization of resources of the Company.
Standardization of business processes and practices pertaining
to
i. Sales & Distribution
ii. Material Management
iii. Accounting and Controlling and
mySAP Business Suite Modules Identified for implementation
mySAP Financials

Accounts Receivable/Payable
General Ledger Accounting
Asset Accounting
Controlling
mySAP Procurement
Materials requirement Planning
Purchasing
Inventory management
Logistic Invoice Verification
mySAP Sales & Distribution Sales Process
Shipping
Billing
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Pricing
Document Scope
The Business Blueprint Document gives an overview of all the business
processes and addresses the specific mapping processes for SAVERA.
Certain existing processes are redundant in SAP R/3 environment and the
manner in which certain other processes are carried out in SAP R/3
environment will alter substantially. Wherever necessary these facts have
been appropriately highlighted in this document.
The specific processes in FICO, SD, MM, integration will be discussed /
highlighted where appropriate.
Objective of BBP document
Business Process of SAVERA was studied to understand the existing
procedures including their requirements. The Business Blue Print (BBP)
document describes the various elements of mySAP Business suit and
adapts the current organizational structure and processes of SAVERA to fit
such elements with the available information.

The document seeks to address the following objectives:


Highlight the various aspects and implications of the proposed
conceptual design on SAP R/3 (as designed on the existing processes
and legacy systems within SAVERA).
Highlight the process of all modules on the SAP R/3 system.
Highlight the process, means and frequency of interface, if any, with
various legacy systems and the data expected to flow there from at
various levels within SAP system.
To present the proposed conceptual design to the project sponsor for
approval.
The discussion in sections dealing with detailed processes is sub-divided as
follows:

Process Overview

Business Requirements/ Expectations

Process description

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Target Audience
The target audience for this document is the Project Sponsor, Functional
Process Owners (FPOs), key user groups of SAVERA and the core team of
project SAVERA.

Global settings
Global settings refer to the module and entity independent settings
required for defining the operating environment on SAP. These include
setting global definitions for country settings, currency settings, units of
measure, etc. These are mostly predefined, but can be refined for actual
use.
For SAVERA, country settings for India only are relevant. Amongst the
various country-specific settings the following are relevant for SAVERA from
the point of view of data entry, data upload and reporting:
Code for India
Date format
Postal code field size

:
:
:

IN
DD.MM.YYYY
6 character Numeric

Organization structure
The following organisation structure definitions would be made on SAP as
described under the Organisation Structures for SAP document:
Company Code
(legal entity definition)
Controlling Area
Cost Centre Hierarchy
Profit Centre Hierarchy
Chart of Accounts
Chart of Depreciation
Sales Organization
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The Legal entity sought to be covered


under SAP covered under SAP.
Single Company wide controlling area
for uniform controlling and analysis.
Various cost centres as identified
Within the company code.
Various profit centres as identified
within the company code.
One Company-wide chart of Accounts.
One country-wide / Company-wide set
of rules.
Organization unit responsible for total
sale activity.

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Distribution Channel
Division
Sales Office
Purchasing organisation
Plant

Different ways by which material


reach to customers.
Broad product range.
Actual sales office or territory.
Unit responsible for purchasing.
Unit where product and services are
provided.
Division of purchasing organisation.
Unit where goods are stored.

Purchasing group
Storage location

Business Objects
Legal Entities
Existing Business Process/
SAP Fitment
Requirements
SAVERA is a legal entity and SAVERA is the legal entity and will be
registered as per the Companies maintained as Company Code in the
Act 1956 as a Private limited R/3 system.
company.
Countr
y

Lega
l
Entit
y

Name

IN

SMA
P

Savera
Marketing
Agency Pvt.
Ltd.
67, Bentinck
Street,
Kolkata - 700069

Controlling Area
Existing Business Process/
Requirements
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Countr
y

Co.
Code

Name

IN

SMAP

Savera
Marketing
Agency Pvt.
Ltd.
67, Bentinck
Street,
Kolkata - 700069

Sap Fitment

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PROJECT ARJUN

There is no central
organizational unit for cost
management.

A single Controlling Area with INR


as the currency will be used in
SAVERA to facilitate effective cost
controlling
and
management
reporting.
Controll
ing
Area
SMAP

Description
SAVERA Controlling
Area

Branches /Plants
Existing Business Process/ Requirements
Sap Fitment
A Branch is defined as the physical place Branches will be maintained
where customers are rendered service as Plants in the R/3 system.
and/or an invoice can be issued.
This allows reporting at the
branch level up to net profit.
The naming convention will
be Three alpha representing
each Branch/ Plant

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Branches / Plant
Clarification
Region

Code

EAST
West
North
South

1300-1499
1500-1699
1100-1299
1700-1899

Region

State

Branch

Plant

North
North

DELHI
DEHRADUN

1111
1121

LUCKNOW
JAIPUR
LUDHIANA
GURGAON
CHANDIGARH

1131
1141
1151
1161
1171

CORPORATE OFFICE
CENTRAL
WAREHOUSE

1300

KOLKATA
GANESH CHANDRA
AVENUE

1312

CHANDNI CHOWK

1314

HOWRAH

1315

SAMSUNG SES
SAMSUNG RDS
HOWRAH
GUWAHATI
PATNA
RANCHI

1316

East
East
East
East

DELHI
Uttaranchal
Uttar
Pradesh
Rajasthan
Punjab
Haryana
Chandigarh
West
Bengal
West
Bengal
West
Bengal
West
Bengal
West
Bengal
West
Bengal
West
Bengal
West
Bengal
Assam
Bihar
Jharkhand

Region

State

Branch

Plant

East

Orissa
Chhattisgar
h
Madhya
Pradesh

BHUBANESWAR

1351

RAIPUR

1511

INDORE

1521

North
North
North
North
North
East
East
East
East
East
East
East

West
West

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1311

1313

1317
1321
1331
1341

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Profit Centers
Existing Business Process/
Requirements
Each Branch is a Profit Centre

Sap Fitment
Profit center will represent a
particular division like distribution
and service in each branch/Plant.
This profit center is responsible for
the entire business at the division
level; Profitability of branch/Plant is
evaluated by drawing P&L and B/S
at profit center group combining
this two profit centers.

Profit Center
Region

State

Branch

North

DELHI

DELHI

North

DELHI

DELHI-Service

North

Uttaranchal

DEHRADUN

North

DEHRADUN-Service

North

Uttaranchal
Uttar
Pradesh
Uttar
Pradesh

North

Rajasthan

JAIPUR

North

Rajasthan

JAIPUR-Service

North

Punjab

LUDHIANA

North

Punjab

LUDHIANA-Service

North

Haryana

GURGAON

North

Haryana
CHANDIGAR
H

GURGAON-Service

North

North

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LUCKNOW
LUCKNOW-Service

CHANDIGARH

Plant
11110
1
11110
9
11210
1
11210
9
11310
1
11310
9
11410
1
11410
9
11510
1
11510
9
11610
1
11610
9
11710
1

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North

Region

CHANDIGAR
H

CHANDIGARH-Service

11710
9

Branch

Plant

State

East

West Bengal

CORPORATE OFFICE

East

West Bengal

CORPORATE OFFICE-Service

East

West Bengal

KOLKATA

East

West Bengal

KOLKATA-Service

East

West Bengal

CENTRAL WAREHOUSE

East

West Bengal

CENTRAL WAREHOUSE-Service

East

West Bengal

East

West Bengal

GANESH CHANDRA AVENUE


GANESH CHANDRA AVENUEService

East

West Bengal

CHANDNI CHOWK

East

West Bengal

CHANDNI CHOWK-Service

East

West Bengal

HOWRAH

East

West Bengal

HOWRAH-Service

East

West Bengal

SAMSUNG SES

East

West Bengal

SAMSUNG SES-Service

East

West Bengal

SAMSUNG RDS HOWRAH

East

West Bengal

SAMSUNG RDS HOWRAH-Service

East

Assam

GUWAHATI

East

Assam

GUWAHATI-Service

East

Bihar

PATNA

East

Bihar

PATNA-Service

East

Jharkhand

RANCHI

East

Jharkhand

RANCHI-Service

East

Orissa

BHUBANESWAR

East

Orissa

BHUBANESWAR-Service

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13000
1
13000
9
13110
1
13110
9
13120
1
13120
9
13130
1
13130
9
13140
1
13140
9
13150
1
13150
9
13160
1
13160
9
13170
1
13170
9
13210
1
13210
9
13310
1
13310
9
13410
1
13410
9
13510
1
13510
9

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Chhattisgar
h
Chhattisgar
h
Madhya
Pradesh
Madhya
Pradesh

West
West
West
West

15110
1
15110
9
15210
1
15210
9

RAIPUR
RAIPUR-Service
INDORE
INDORE-Service

Cost Centers
Existing Business Process/
Requirements
Currently, there is no Cost
center organizational unit.

Sap Fitment
All the costs e.g. administrative,
finance, and Service will be posted to
the different cost centers. Those costs
can be apportioned to other receivers
using cost center accounting.

Cost Center
Regio
n

State

Branch

East

Orissa

BHUBANESWAR-Admin

East

Orissa

BHUBANESWAR-Sales

East

Orissa

East

West Bengal

BHUBANESWAR-Service
CENTRAL WAREHOUSE Sales

East

West Bengal

East

West Bengal

CENTRAL WAREHOUSE-Admin
CENTRAL WAREHOUSEService

East

West Bengal

CHANDNI CHOWK-Admin

Strictly Confidential
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Cost
Center
1351010
2
1351010
1
1351090
9
1312010
1
1311010
2
1312090
9
1314010
2

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PROJECT ARJUN

East

West Bengal

CHANDNI CHOWK-Sales

East

West Bengal

CHANDNI CHOWK-Service

East

West Bengal

CORPORATE OFFICE-Admin

East

West Bengal

CORPORATE OFFICE-Sales

East

West Bengal

East

West Bengal

East

West Bengal

East

West Bengal

CORPORATE OFFICE-Service
GANESH CHANDRA AVENUEAdmin
GANESH CHANDRA AVENUESales
GANESH CHANDRA AVENUEService

East

Assam

GUWAHATI-Admin

East

Assam

GUWAHATI-Sales

East

Assam

GUWAHATI-Service

East

West Bengal

HOWRAH-Admin

Regio
n

State

Branch

East

West Bengal

HOWRAH-Sales

East

West Bengal

HOWRAH-Service

East

West Bengal

KOLKATA-Admin

East

West Bengal

KOLKATA-Sales

East

West Bengal

KOLKATA-Service

East

Bihar

PATNA-Admin

East

Bihar

PATNA-Sales

East

Bihar

PATNA-Service

East

Jharkhand

RANCHI-Admin

East

Jharkhand

RANCHI-Sales

Strictly Confidential
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1314010
1
1314090
9
1300010
2
1300010
1
1300090
9
1313010
2
1313010
1
1313090
9
1321010
2
1321010
1
1321090
9
1315010
2

Cost
Center
1315010
1
1315090
9
1312010
2
1311010
1
1311090
9
1331010
2
1331010
1
1331090
9
1341010
2
1341010
1

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

East

Jharkhand

East

West Bengal

East

West Bengal

East

West Bengal

RANCHI-Service
SAMSUNG RDS HOWRAHAdmin
SAMSUNG RDS HOWRAHSales
SAMSUNG RDS HOWRAHService

East

West Bengal

SAMSUNG SES-Admin

East

West Bengal

SAMSUNG SES-Sales

East

SAMSUNG SES-Service

North

West Bengal
CHANDIGAR
H
CHANDIGAR
H
CHANDIGAR
H

North

Uttaranchal

DEHRADUN-Admin

North

Uttaranchal

DEHRADUN-Sales

North

Uttaranchal

DEHRADUN-Service

North

DELHI

DELHI-Admin

North

DELHI

DELHI-Sales

North

DELHI

DELHI-Service

North

Haryana

GURGAON-Admin

North

Haryana

GURGAON-Sales

North

Haryana

GURGAON-Service

North

Rajasthan

JAIPUR-Admin

North

Rajasthan

JAIPUR-Sales

North

JAIPUR-Service

North

Rajasthan
Uttar
Pradesh
Uttar
Pradesh
Uttar
Pradesh

North

Punjab

LUDHIANA-Admin

North
North

North
North

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CHANDIGARH-Admin
CHANDIGARH-Sales
CHANDIGARH-Service

LUCKNOW-Admin
LUCKNOW-Sales
LUCKNOW-Service

1341090
9
1317010
2
1317010
1
1317090
9
1316010
2
1316010
1
1316090
9
1171010
2
1171010
1
1171090
9
1121010
2
1121010
1
1121090
9
1111010
2
1111010
1
1111090
9
1161010
2
1161010
1
1161090
9
1141010
2
1141010
1
1141090
9
1131010
2
1131010
1
1131090
9
1151010
2

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PROJECT ARJUN

North

Punjab

Regio
n
North
West
West
West
West
West
West

LUDHIANA-Sales

State

Branch

Punjab
Madhya
Pradesh
Madhya
Pradesh
Madhya
Pradesh
Chhattisgar
h
Chhattisgar
h
Chhattisgar
h

LUDHIANA-Service
INDORE-Admin
INDORE-Sales
INDORE-Service
RAIPUR-Admin
RAIPUR-Sales
RAIPUR-Service

1151010
1
Cost
Center
1151090
9
1521010
2
1521010
1
1521090
9
1511010
2
1511010
1
1511090
9

Sales Organization
Existing Business Process/
Sap Fitment
Requirements
Savera Marketing Agency Pvt. One sales organization will be
Ltd. (SAVERA) is having 21 created with same naming
branch offices and sub branches convention like company code
under the few of the branch
Sales organization
offices at different locations to Countr Company
y
code
meet the business requirements.
IN
SMAP
SMAP
All branch offices are controlled
by Kolkata office (HO).

Distribution Channel
Existing Business Process/
Requirements
SAVERA sells its product to endusers either through Resellers/
Channel partners or directly to end
customers.
Even HO is also involved in selling
directly
to
its
employees,
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Sap Fitment
Five distribution channels will be
created, to distinguish between Sales
generated through Resellers, OEMs
and direct sale (End User Sale).
01 Reseller Sale (Channel

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PROJECT ARJUN

Government, Corporate.

SAVERA distributes its products


through Channel Partners, OEMs
(Original
Equipment
Manufacturers) and end users.

Partners)
02-Direct Sales (End Users)
03 -OEM.
04- Branch transfer
05- Export

The sales organization SAVERA will


cater materials & services to
customers
using
all
the
five
distribution channels.
Distribution Channel
Distribution ChannelSavera
ZB
ZC
ZE
ZN
ZT
ZO

Description
BRANCH
TRANSFERS
CHANNEL
PARTNERS
END USERS
CONSIGNMENT
EXPORT SALES
OEM's

Division
Existing Business Process/
Sap Fitment
Requirements
SAVERA
trades
with
various One divisions will be created in the
technology products from different system.
Brands/ principals.
01 - SAVERA Division.
Sales organization SAVERA will be
responsible for sales of material from
the both Division using the different
distribution channels.
Principles/ Brands and technologies
will be mapped into system using
Product hierarchy (to get the reports
brand wise) and will be entered into
every material master.
Strictly Confidential
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Sales Office
Regio
n
North
North

State

Branch

Sales Office

DELHI
DEHRADUN

1111
1121

North
North

DELHI
Uttaranchal
Uttar
Pradesh
Rajasthan

LUCKNOW
JAIPUR

1131
1141

North
North

Punjab
Haryana

LUDHIANA
GURGAON

1151
1161

Regio
n

State

Branch

North
East
East
East

CHANDIGAR
H
West Bengal
West Bengal
West Bengal

East
East
East
East

West
West
West
West

East
East
East
East
East

West Bengal
Assam
Bihar
Jharkhand
Orissa
Chhattisgar
h
Madhya
Pradesh

West
West

Bengal
Bengal
Bengal
Bengal

Sales Office

CHANDIGARH
CORPORATE OFFICE
CENTRAL WAREHOUSE
KOLKATA
GANESH CHANDRA
AVENUE
CHANDNI CHOWK
HOWRAH
SAMSUNG SES
SAMSUNG RDS
HOWRAH
GUWAHATI
PATNA
RANCHI
BHUBANESWAR

1171
1300
1311
1312

RAIPUR

1511

INDORE

1521

1313
1314
1315
1316
1317
1321
1331
1341
1351

Purchasing Organization
Existing Business Process/
Requirements

Strictly Confidential
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Sap Fitment

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Import purchase is carried out


only through HO purchase officer.
Branch Head can do the local
procurements for local trading,
repair related activities/minor
parts.
In case of Asia Powercom /
Optima Local purchase is carried
out by business managers at HO.
Procurement requirements of
service department are handled
by RMA purchase in charge who
sits in HO at Kolkata.

All
Plants
will
have
purchase
organization
respectively for catering to
the procurement.

Local purchase & import


purchases through central
purchase will be separated
by
purchase
order
documents type.
ZNB
ZIB
ZUB
ZSE
ZOT

Strictly Confidential
20 of 168

LOCAL PURCHASE
IMPORT PURCHASE
STOCK TRANSPORT
SERVICE ORDER
OTHER PURCHASE

Purchase organization will


be max 4-digit char length.

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PROJECT ARJUN

Purchase Organisation
Regio
n
North
North
North
North
North
North
North
East
East
East
East
East
East
East
East
East
East
East
West
West
West

Branch
Delhi Pur. Org.
Dehradun Pur. Org.
Lucknow Pur. Org.
Jaipur Pur. Org.
Ludhiana Pur. Org.
Gurgaon Pur. Org.
Chandigarh Pur. Org.
Corporate Office Pur. Org.
Central Warehouse Pur. Org.
Kolkata Pur. Org.
Ganesh Chandra Avenue Pur.
Org.
Chandni Chowk Pur. Org.
Howrah Pur. Org.
Samsung Ses Pur. Org.
Samsung Rds Howrah Pur.
Org.
Guwahati Pur. Org.
Patna Pur. Org.
Ranchi Pur. Org.
Bhubaneswar Pur. Org.
Raipur Pur. Org.
Indore Pur. Org.

Purchas
e Org
1111
1121
1131
1141
1151
1161
1171
1300
1311
1312
1313
1314
1315
1316
1317
1321
1331
1341
1351
1511
1521

Purchasing group
Existing Business Process/
Requirements
N/A

Strictly Confidential
21 of 168

Sap Fitment
At HO separate brand wise purchase,
for each brand a separate purchase
group will be created.
Every branch/plant will have
respective Purchasing Group.

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PROJECT ARJUN

Purchasing Group
Purchasing Group
DEL
DLN
QHL
SAM
GWD
RAP
ADT
OTM
STL
SON
HIT
TOS
SEA
LEN
ASN

Details
DELL
D'LINK
QUICK HEAL
SAMSUNG
GAINWARD
RAPOO
ADATA
OPTIMA
STARLITE
SONY
HITACHI
TOSHIBA
SEAGATE
LENOVA
ASUS OTHERS

Plant
Existing Business Process/
Requirements
Savera is having branches in all
over INDIA for distribution &
services. Currently Savera
is
having Head office at Kolkata
with 21 branches in all major
cities like Chennai, Bangalore
etc.

Strictly Confidential
22 of 168

Sap Fitment

All the existing 21 branches


will be mapped as plants.
Head
office,
central
warehouse
mapped as
plants.
First digits are for Company,
Second digit for Region, Third
digit for State and Fourth
digit for Sr.no. will be
considered as plant code.
Excel List of Plants area wise
along with Codes will be given
by Savera

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PROJECT ARJUN

Storage location
Existing Business Process/
Requirements
Material is stored separately like
Sales stock, RMA Stock, Repaired
Stock, Mark Com stock & Scrap.

Sap Fitment
These stocks will be mapped as
storage locations. There will be plant
wise storage location.
In case sales stock is maintained in
different places, different storage
locations will be created with the
addresses.
Each Plant will have locations for
agent.

Plant wise Storage Location


SLOC
DETAILS
SSAL
SBUF
SMCO
SREP
SDAM
SCON
SDIS

SALES STOCK
RMA BUFFER STOCK
MARCOM STOCK
REPAIRED STOCK
DAMAGED STOCK
CONSIGNEMENT STOCK
DISPLAY STOCK

All Plants will be assigned to Storage locations accordingly.

Strictly Confidential
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PROJECT ARJUN

Financial Accounting
1.0 GENERAL LEDGER
1.1 Organizational Structure

Existing Business Process/


Requirements
Company:
Savera Marketing
Agency Pvt. Ltd. is one
of the leading distribution
companies in India. It has
its operations in 21
branches all over India
having its head office in
Kolkata.

Sap Fitment
1.Company Code
Definition and Meaning
The company code represents the smallest
organizational unit for which a complete selfcontained set of accounts can be drawn up
for purposes of external reporting. Generally,
a company code is defined to represent a
legal entity.

Its registered office is at


Kolkata.

The process of external reporting involves


recording all relevant transactions and
Every Branch has two generating all supporting documents required
divisions viz., one for for financial statements (balance sheets,
distribution and the other profit and loss statements and so on). All
for service (RMA).
transactions in the financial application are
recorded with reference to a company code.
It is a four character alphanumeric key and is
entered while posting business transactions
or creating company code-specific master
data like G/L Master Record, Vendor Master
Record, for example.
To meet the Business Requirements of
SAVERA one company code will be created in
SAP
Company Code: SMAP
Long Text: Savera Marketing Agency
Private Limited
2.Profit Centre
Each Branch is treated as a
separate business unit. It is Definition and meaning
a responsible Profit center. Profit center will represent the organizational
Strictly Confidential
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PROJECT ARJUN

Existing Business Process/


Requirements

Sap Fitment
entity that will be used to report P&L and
other performance reports for a responsibility
center.
Definition at Savera
Profit center will represent a particular
division like distribution and service in each
branch. This profit center is responsible for
the entire business at the division level;
Profitability of branch is evaluated by drawing
P&L and B/S at profit center group combining
this two profit centers.
The complete list of profit
discussed under Controlling

centers

is

1.2 Fiscal Year:

Existing Business Process/


Requirements
April to March is followed
as financial year.
Books of accounts are
closed on every 31st of
March.
Financial
statements
should
be
presented for the period 1st
April to 31stMarch.

Sap Fitment
Fiscal year variant
Definition and meaning:
A fiscal year consists of several posting
periods and if necessary, special periods that
can be posted to after a temporary year-end
closing.
Define desired fiscal year set up in the SAP
System by creating a fiscal year variant at
client level. Company code is assigned a
fiscal year variant.
Definition at SAVERA
The fiscal year variant will be the standard
V3 representing April to March with 12
calendar months and 4 special periods. The 4
Special periods represent an extension of the
last normal posting period. When the
posting date falls within the last normal
posting period, then during document entry
one can specify that the transaction figures
be updated separately in one of the special

Strictly Confidential
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PROJECT ARJUN

Existing Business Process/


Requirements

Sap Fitment
periods.
Fiscal Year Variant for SAVERA: V3
Posting Periods and posting period
variant
Posting periods are accounting periods to
which accounting documents in SAP are
posted. The posting period(s) specified in the
Posting Period Table are open, based on the
configuration settings.
To restrict the
postings of transactions to certain posting
periods and to ensure consistency in
reporting results, it is necessary to close
periods for posting and open other periods to
allow postings to occur in the new period(s).
The user can maintain the permitted posting
periods at the end of each posting period
this way, one or more posting periods in the
past can be closed and one or more current
or future posting periods can be opened.
Postings are permitted in as many posting
periods as defined in the SAP system.
Posting periods are controlled by the
Posting Period Variant. Account Type is
the key in SAP that specifies the accounting
area to which an account belongs.
Examples of Account Types are:
G/L
Customer
Vendor
Assets
Material
This ensures that the correct account is
posted to when the transaction occurs. The
user can also determine if a particular
account is to be Blocked in a period if
postings to that account are not desired.
Posting Period Variant: SMAP

Strictly Confidential
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PROJECT ARJUN

1.3 Currencies
Existing Business Process/
Requirements
INR
is
Base
currency/Local
Currency. Transaction will be
recorded in INR. All the General
Ledger accounts are maintained in
INR only.
Some vendor and customer
invoices are recorded in the
foreign currency.
Apart from INR company will deal
with USD and Singapore Dollar

Sap Fitment
Definition and meaning
Each and every transaction posted
in R/3 has to be denominated in a
currency. Each and every company
code has to be assigned a
currency in which the books of
accounts of that company will be
maintained.

Definitions at Savera
Indian Rupee i.e. INR will be used
Financial Statements should be as the currency for Savera
created in INR only.
Currency: INR

1.4 Chart of Accounts:


Existing Business Process/
Requirements
General ledger accounts are
maintained at each branch
and head office separately.
There is no number or code
for the GL accounts. All the
GL accounts are recognized
by the description of the
account.
There
is
no
correlation
between
the
head office and branch
office accounts.

At head office level it


maintains one individual
account for each branch
apart from the normal GL
accounts.
All
the
transactions with the branch
will be routed through that
account. Likewise branch
also maintains one head
office account
Strictly Confidential
27 of 168

Sap Fitment
A new re-aligned and generic chart of
accounts would be defined to allow for
Company-wide accounting and analysis.
The Chart of Accounts for SAVERA will be
SMAP
GL accounts on legacy systems are
structured to capture various additional
details such as sub-ledger accounts for AR
and AP for analytical purposes, at GL
account level itself. Such characteristics in
SAP would be captured either through
Sub-ledger definitions and/or
Narration (text fields) and/or
allocation at the time of transaction
posting within SAP.
After the re-alignment, the present chart
of accounts has been significantly reduced
without compromising on information and
details.
The new 6 character GL accounts on SAP
would be structured as under:

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
Based on the business
transactions branch office
will send back-up of their
accounts once in two days
or weekly to the head office.

Sap Fitment
Main classification (Asset, Liability,
Income, Expense, etc.)
Sub-classification (Equity, Reserves,
Investments, Current Asset, and
Loans- etc.)
Sub-sub classification (e.g. under
current assets further classification
for advances, deposits etc.)
Account code (in serial order within
sub classification).
The detailed structure of chart of accounts
is as furnished subsequently.

1.5 Accounts Group :

LIST OF DETAIL CHARTS OF ACCOUNTS GIVEN


Acct
Group
SHCA
RESU
SELN
USLN
CRS
OTLI
FA
INVS
CASH
BANK
STK
DRS

Description
SHARE CAPITAL
RESERVES AND SURPLUS
SECURED LOANS
UNSECURED LOANS
SUNDRY CREDITORS
OTHER LIABILITIES &
PROVISIONS
FIXED ASSETS
INVESTMENTS
CASH IN HAND
BANK
STORES,SPARE,CONS & PAK
MAT
SUNDRY DEBTORS & OTHER
RECEIVA

Strictly Confidential
28 of 168

From No.

To. Number

10000000
11000000
12100000
12200000
13000000

10999999
11999999
12199999
12299999
13999999

14000000
20000000
22000000
23000000
24000000

14999999
20999999
22999999
23999999
24999999

25000000

25999999

26000000

26999999

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

LNAD
RECN
SALE
SER
OTIN
MATC
DIEX
ADMN
SAWA
SAPR
REMA
FINC
DEPR
MISC
PROV

DEPOSITS,LOANS &
ADVANCES
ADJUSTMENT ACCOUNTS
SALES
SERVICES
OTHER INCOME
CONSUMPTION
DIRECT EXPENSES
ADMINISTRATION CHARGES
SALARIES AND WAGES
SALES PROMOTION
REPAIRS AND MAINTENANCE
INT ,COMMITMENT & FIN
CHARGES
DEPRECIATION
OTHER EXPENDITURE
PROVISIONS

27000000
30000000
40000000
42000000
43000000
50000000
51000000
52000000
53000000
54000000
55000000

27999999
30999999
41999999
42999999
43999999
50999999
51999999
52999999
53999999
54999999
55999999

56000000
57000000
58000000
60000000

56999999
57999999
58099999
69999999

DISCOUNT & INCENTIVE


SAP_N13_4_01
Savera FI - Chart Of Accounts.xlsx

1.6 Foreign currency valuation


Existing Business Process/
Sap Fitment
Requirements
For the imports made from A Foreign currency is a currency that
outside
India
payment differs from the company code currency.
should be made in foreign
currency only.
A foreign currency exchange type has
to be defined in the system for every
other currency.
The
exchange
rate
difference between date of
Ex:
B for Bank selling rate
invoice
and
date
of
G for Bank buying rate and
payment is treated as
M for Average rate
foreign exchange gain or
loss. The resulting gain or A translation ratio should be maintained
loss is taken into books of between foreign and company code
accounts in the month end currency. The exchange rate has to be
(Payment) only. But it maintained for exchange type on a given
should be recognized on
Strictly Confidential
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PROJECT ARJUN

Existing Business Process/


Requirements
the date of payment

Sap Fitment
date.

For liabilities in foreign


currency outstanding by
the year-ending should be
valued with the year-end
exchange rate and the
gain or loss is to be booked
on 31st March.

When the business transaction is posted


in the foreign currency, it will be stored in
both transaction currency and company
code currency.
On the date of payment in foreign
currency system checks the exchange
rate and posts the gain or loss
automatically to the foreign exchange
gain/loss account.
Foreign
currency
valuation:
A
procedure for determining the value of
the current assets and liabilities posted in
foreign currency at a key date.
Assets and liabilities are valuated using
the unit account method of valuation,
which means that the individual open
items are valued
The system calculates the exchange rate
difference on open items on a given date
and allows it to be posted in the books of
accounts temporarily in the month end
and permanently in the year-end.

1.7 Document types:


Existing Business Process/
Requirements
For all the business transactions
the document numbers will be
generated internally.
1. In purchase department for
purchase order, GR Note and
Purchase invoice separate
set of document numbers
Strictly Confidential
30 of 168

Sap Fitment
Definition and meaning
The document type controls the
document header and is used to
differentiate
the
business
transactions to be posted, e.g.
customer
invoice,
vendor

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

are maintained. Similarly for


sales also separate set of
document
numbers
are
maintained.
2. For
cash
and
bank
transaction different number
ranges are being maintained
3. For
Journal
Vouchers
separate number range
For credit memos and Debit
memos separate number ranges
are adopted

List of Document
SL
Document
NO. Type
1 AA
2 AB
3 AF
4
5
6
7
8
9

AM
AN
AS
BR
CH
CL
SL
Document
NO. Type
10 CR
11 DA
12 DD
13
14
15
16
17

DG
DR
DZ
EU
EX

Strictly Confidential
31 of 168

payments, etc. Document types


are defined at the client level and
are therefore valid for the entire
company code.
To meet the various business
requirements SAVERA is going to
use all document type given by
SAP R/3.
The complete requirement of
document type to be created will
be available during realization
phase of the project.

Description
Asset posting
Reversal Doc for FI
Dep. postings
Reversal Doc for
MM
Net asset posting
Reversal Doc for SD
Bank Receipt
NA-Contract sett
Clearing Document
Description
CASH RECEIPT
Customer
Invoice/Doc
Customer Debit
memo
Customer credit
memo
Customer invoice
CASH PAYMENT
NA-Euro rnding diff.
NA-External

Number
range
01
01
03

Reverse Document type


AB
AB
AB

01
01
01
07
11
21
Number
range
06

AM
AB
AS
ZB
AB
AB

16

AB

18

AB

17
18
04
11
11

AB
AB
AB
AB
AB

Reverse Document type


AB

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

SL
NO.

Document
Type

18 KA
19 KD
20
21
22
23
24
25

KG
KL
KN
KP
KR
KZ

26 LD
27 ML
28 PC
29 PP
30 PR
31 RA
32 RB
33 RC
34
35
36
37

RD
RE
RN
RV

38 SA
39 SB
40 SK
41 SU
42
43
44
45
46

TT
UE
WA
WE
WI

Strictly Confidential
32 of 168

Description
number
Vendor
Invoice/Docum
VENDOR DEBIT
NOTE
Vendor credit
memo
SCB Loan
NA-Net vendors
NA-Account maint
Vendor invoice
BANK PAYMENT
NA-Opening
Balance
NA-ML settlement
PETTY CASH
RECEIPT
PETTY CASH
PAYMENTS
Price change
NA-Sub cred memo
stl
NA-Res for Bad
Debt
Customer CMemoSD
Customer DMemoSD
Invoice - gross
NA-Invoice - net
Billing doc.transfer
G/L account
document
G/L account
posting
NA-Cash document
NA-Adj document
NA-Testing Doc
type
NA-Data transfer
Goods issue
Goods receipt
NA-Inventory doc

Number
range

Reverse Document type

13

AB

15

AB

14
19
11
11
19
05

AB
AB
AB
AB
AB
AB

LD
11

LD
AB

08

AB

09
48

AB

51

AM

11

AB

25

AS

25
51
51
00

AS
AM
AM
AS

01

AB

12
11
11

AB
AB
AB

11
11
49
50
49

AB
AB

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

SL
NO.

Document
Type

47 WL
SL
Document
NO. Type
48 WN
49 ZB
50 ZP
51 ZR
52 ZS
53 ZV

Description
Goods
issue/delivery
Description
NA-Net goods
receipt
Reversal Doc for BR
NA-Payment
posting
Bank reconciliation
Na-Payment by
check
NA-Payment
clearing

Number
range

Reverse Document type

49
Number
range

Reverse Document type

50
01

ZB

11
20

ZP
ZR

11

ZS

11

ZV

1.8 Interest Calculation:

Existing Business Process/


Requirements
Interest calculation should be
made by system for cash credit
accounts and term loans for
verification with the actual interest
levied by the Banks.
At present no interest is calculated
on the loans or short-term fund by
the bank, because the date of
presenting cheque to the bank and
the date from which the bank
recognizes
the
payment
are
different.
So
that
there
is
difference in interest calculation
by bank and in the books. Finally
post the interest charged by bank
in the books of accounts

Sap Fitment
A standard interest calculation
method is provided in SAP under
the concept of Balance interest
calculation.
By
creating
the
interest
indicator and assigning it to the
Loan
GL
master,
system
automatically
calculates
the
interest. There are two steps in
the interest execution run. In the
first step system calculates the
interest and in the second step it
will allow posting in the system.

The interest on all Bank loans and


Short-term loans can be calculated
by creating different interest
For other short term loan from indicators for different interest
directors and others, the system rates.
calculates the interest and is
For calculation of interest the
posted as per the interest terms
effective date would be the
cheque clearance date only not
Strictly Confidential
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PROJECT ARJUN

Existing Business Process/


Requirements

Sap Fitment
the payment date.

1.9 Tax on sales and Purchases


Existing Business Process/
Requirements
Tax on sales & purchases are
handled as per the Sale &
Purchase
Tax
Actmanually.
Calculations of Sales/ Purchase Tax
liability with all branches and setoff of purchase tax are also carried
out manually.
The following taxes will come
under purview of sales and
purchase tax
1) Customs duty
2) Sales tax
3) Central Sales tax
4) VAT
5) Service tax
6) Octroi
7) Entry Tax
8) Other Tax

STATE WISE TAX


RATE(VAT)
DATE:07/08/201
3

WB
JHARKHAND
CHATTISGARH
BIHAR
ORISSA
ASSAM
MP
DELHI
PUNJAB

BS
RNC
RPR
PATNA
BHUB
GUWAHATI
INDORE
DELHI
LUDHIANA

Strictly Confidential
34 of 168

Sap Fitment
Various reports in respect of Sales
Tax paid on purchases and
collected / charged on sales will
be available in SAP R/3. This will
facilitate calculation of Sales Tax
liability and to it set-off.
Tax codes will be freely definable
to capture various central and
local
sales
tax
rates
and
automatic calculation and posting
of liability on sales will be
possible.
While
defining
the
pricing
procedure In the MM and SD the
required condition types are
incorporated. Based on that
condition type the taxes will be
calculated and posted to separate
GL accounts

Computer
Parts
Ad
VAT
dl

Others
Items*
Ad
VAT
dl

5
5
5
5
5
5
5
5
6.05

14.5
14
14
13.5
13.5
13.5
13
12.5
14.3

Mobile
Add
VAT
l
14.5

Remarks
Mobile up 3000 Vat will
be 5%

13% on Power Bank


12.5% on UPS

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

HARIYANA/PU
NJAB
HARIYANA
RAJASTHAN
UTTARAKHAN
D
TAMILNADU
UP

CHANDIGA
RH
GURGAON
JAIPUR
DEHRADU
N
CHENNAI
LUCKNOW

5
5.25
5

14.5
14.5
14.5

5
5
4

14.5
14.5
12.5

1.5

OTHERS Items
ADAPTOR
BATTERY
CABINET
CABLE
CAMERA
CAMERA COVER
CAMERA ACC
CONNECTOR
1.10 Tax Deducted at Source(TDS)
COOLING PAD
Existing
Business
Sap Fitment
LAPTOP ACC
Process/
LCD TV
Requirements
IPOD
Tax
deduction
at Withholding Tax (TDS)
MOBILE ACC
source is handled in
the RACK
accounts The Extended Withholding Tax
TONER/CARTG
department
SAMSUNG manually implemented at SAVERA.
in Microsoft
office both
NET TOOLS

Strictly Confidential
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(EWT) will be

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Existing Business
Process/
Requirements
for
processes
of
Invoice Booking and /
or
payments
for
expenses, which are
liable to TDS.

Sap Fitment
The following are the salient features in SAP R/3:
Withhold tax at the time of invoicing, and down
payments, prior to invoicing
Set off any taxes that have been withheld prior
to invoicing (for example, on down payments)
when you create invoices
Provide information on amount of TDS to be
remitted to the Tax Authorities.
Generate withholding tax certificates for
vendors.

Printing
of
TDS
Certificates for allpurpose
and
preparation of Annual
Returns are carried out
For
the
proper
deduction
and
manually in legacy Note:
system
in
excel administration of TDS in SAP, the Business user
sheets.
will have to enter the Section Code field during
document entry, which would correspond to the
Tax Account Number (TAN). If the business user
fails to enter Section Code in the line item that is
relevant to withholding tax, the system will not
process the transaction further. Whenever the
business user posts a tax relevant transaction,
the Section Code field entered in the vendor line
will be copied to the withholding tax items
automatically.
Description of Improvements
The entire process of TDS administration is an
improvement over the present manner of
handling TDS at SAVERA. Some of the salient
improvements are:
The system supports calculation of tax at
reduced rates incases where vendors have
submitted exemption certificates.
The system is robust to allow vendors to be
assessed under different sections for different
transactions
The system computes the amount to be
remitted to the tax authorities at month end.
The system is capable of generating TDS
certificates in the form as required under the
Income Tax Act, but through development.
System Configuration Considerations
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Existing Business
Process/
Requirements

Sap Fitment
-As TDS needs to be deducted on payment or
invoice booking whichever is earlier withholding
tax type is to be created for invoice as well as
payment also.
-As reporting is required separately for different
tax nature separate tax type is to be created
according to nature of payment.
-In case of those taxes where there is threshold
limit, tax code needs to be created with formula.

S. No Nature of Payment
Section
1
Subcontractor
194C
2
Contractor
194C
3
Professional
With Holding
Tax
Details / Technical Services 194J
other
than interest on
Section Interest
Nature of
Payment
Sl.
4
Securities
194A
No.
Interest other than interest on
Salaries
1
5 192
Securities(Companies)
194A
Interest on Debentures
2
6 193
Commission
Brokerage
194H
194
Deemed Dividend
3
7
Rent
194I
194A
Interest other than Interest on Securities (By Bank)
4
8
Rent (Corporate)
194I
4A
5
6
7
8
9
10
11
12
13
14

194A
194B1
Note

Basic %
1
2
5
CUT

10OFF

20
5 5000
15
1000
20 0

Rate %
HUF/IN Other
D
s
Average Rate
10
10
10
10
10
10

5000
10
1000
30
0
194BB Surcharge:@10%
Winning form horse race
for individuals, AOP, BOI if 5000
amount30of
194C(1)
Contractors
3000
1
Note 2 payment
during the year exceeds 10 lakhs
0
194C(2)
/ Advertisements
3000
1
Note InSub-Contractors
case of companies,
co-operative society, local bodies,
firms
0
3
surcharge will be @10% irrespective of payment.
194D
Insurance Commission
2000
10
0
Note For
the purpose
of filing
return of TDS there 2500
Will be 20
two
194EE
Payments
out od Deposit
under NSS
4194F categories
of
recipient
corporate,
Non
corporate
Repurchase of units by MF / UTI
1000
20
194G
194H
194I

Interest other than Interest on Securities (By Others)


Lottery / Cross
Word
Puzzle
Education
cess:
@2%
applicable for all

Commission on sale of lotter tickets


Commission or Brokerage
Rent (Land & Building) Furniture & Fittings
Rent (P & M, Equipment)

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1000
5000
1800
00
1800

10
30
30
2
2
10

10
10

20
10
10

10

10

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15

194 IA

16

194J

17

194J(1)
(ba)

TDS on transfer of Immovable property other than


agriculture land (w.e.f. 01.06.2013)
Professional/Technical charges/ Royalty & Non compete
fees
Any remuneration or commission paid to director of the
company (w.e.f. 01.07.2012)

18

194LA

Compensation on acquisition of immovable property

00
50
Lacs
3000
0

10

10

Nil

10

10

2000
00

10

10

Note
:
1. Yearly Limit u/s 194C: Where the aggregate of the amounts paid/credited or likely to
be paid/credited to Contractor or Sub-contractor exceeds Rs.75, 000 during the financial
year, TDS has to be deducted u/s 194C.
2. TDS at higher rate i.e., 20% has to be deducted if the deductee does not provide PAN
to the deductor.(read detail u/s 206AA)
3. No TDS on Goods Transport :No deduction shall be made from any sum credited or
paid or likely to be credited or paid during the previous year to the account of a contractor
during the course of business of plying, hiring or leasing goods carriages on furnishing of his
Permanent Account Number, to the person paying or crediting such sum.(read details here
No TDS on Goods Transport )
4. Surcharge on tax is not deductible/collectible at source in case of resident individual/
HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary.
5. Surcharge on TDS is applicable on payment made to non resident other than
company, if payment is in excess of one crore. (10 %)
6. Surcharge on TDS on salary is applicable if taxable salary is more than one crore @ 10 %
7. In the case of Company other than Domestic Company,
o (i) at the rate of two per cent. of such tax, where the amount or the aggregate of such
amounts collected and subject to the collection exceeds one crore rupees but does not
exceed ten crore rupees;
o (ii) at the rate of five per cent. Of such tax, where the amount or the aggregate of such
amounts collected and subject to the collection exceeds ten crore rupees.
8. No Cess on payment made to resident: Education Cess is not deductible/collectible
at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of
payment of income other than salary. Education Cess @ 2% plus secondary &
Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign
company.
9. TDS by Individual and HUF (Non Audit) case not deductible :An Individual or a
Hindu Undivided Family whose total sales, gross receipts or turnover from business or
profession carried on by him does not exceeds the monetary limits(Rs.100,00,000 in case of
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business & Rs.25,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB during
the immediately preceding financial year shall not be liable to deduct tax u/s.194A,194C,
194H, 194I & 194J. So no tax is deductible by HUF/Individual in first year of operations of
business even sales/Fees is more than 100/25 Lakh.

To be given by SAVERA
Gaps Identification
The gaps identified in this respect (Functionality Gaps) are as follows:
TDS on Salaries is not supported. It may be noted that HR Payroll
Module of SAP R/3 is not under the current scope of implementation.
Tax Deduction is not possible in respect of expenses booked or
payments made otherwise than through Invoice Booking and Accounts
payable functionality respectively.
Gaps Resolution

TDS on Employees Postings will continue to be managed in legacy


system and summary postings will be made in SAP R/3 to complete the
accounting (Uploading through Account Assignment model- Excel
Sheet).
TDS in respect of other expenses routed through General Ledger till now
will be handled through AP/MM functionality to book invoices and make
payments.

1.10 Pay Roll Accounting:


( It will discuss separately )

Existing Business Process/


Requirements

Sap Fitment

There is a separate payroll Since HR module is not being


software to cater to the personnel implemented, the gross figures
towards payroll are entered as a
expenditure of the organisation
Financial entry in the SAP system.
This will be done as a single entry
at each branch level or will be
uploaded centrally from the HO
1.11 Closing Procedure:
Existing Business Process/
Requirements
Month end:
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Sap Fitment
Month End:

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Existing Business Process/


Requirements
Generally Forex valuation,
Accrual of expense & revenue,
Depreciation
and
Interest
Calculations,
Clearing
Accounts should be carried
out in the month end. No
standard procedure for closing
at the end of the month
Year end:
1) Close all the books of
account
at
each
branch
and
Head
office level.
2) Calculate
the
depreciation
for
whole year and post
in the year end
3) Adjusting of Deferred
revenue
and
expenses in the year
end
4) Revaluing the stock
lying with the branch
and doing
proper
value adjustment
5) Pass
necessary
journal voucher

Sap Fitment
Accrual/deferral entries would be
posted on SAP on a monthly basis.
Accrual/deferrals may also be posted
at any other date other than month
closing for interim reporting. These
would also be accounted as detailed
above.
Self-Reversal of certain expenses is
provided in standard SAP
Further, debtors with credit balance
and creditors with debit balance would
require reclassification for presentation
in the financial statement. Standard
functionality on SAP would be used for
the desired re-classification.
The above reclassification accounting
entries would be reversed by SAP on
the next day.
Depreciation (Year-end process)
The depreciation run for all the fixed
assets would be carried out Yearly. The
depreciation so accounted would also
directly get posted to the relevant cost
centres to which the individual asset is
associated with.
Foreign currency valuation:
On the outstanding liabilities in the
foreign currency, system calculates
the exchange difference and will post
the result to foreign currency gain/loss
account.
Opening/Closing of posting
periods
One month to remain open at any
point in time.

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Existing Business Process/


Requirements

Sap Fitment
Year End:
Apart from the normal month end
posting there are some special
procedure to be followed for year end
closing
Carry forward of balances (yearend)
After all the closing processes have
been run, the balances will be carried
forward to the next year through a
standard
functionality
on
SAP.
Although this process can be run on
any
day
of
the
year,
it
is
recommended to carry-forward the
balances only after all relevant entries
for the year have been posted to SAP
and are ready for presentation for
audit (i.e. before the close of the 12th
period on SAP).
It is proposed to close the12 th period of
the year for posting by 31st of March.
Thereafter all entries that shall be
passed
subsequently
for
any
adjustments
suggested
by
the
management or auditor etc. would be
passed in the special posting periods
(maximum 4 allowed). All these entries
would
automatically
change
the
opening balances for the next year.
The balances would have to be carried
forward in General Ledger, Accounts
Receivables and Accounts Payable.

1.12 Financial Statement version


Existing Business Process/
Sap Fitment
Requirements
The following financial statement Annual Accounts / Periodic
is created for meeting different Accounts
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requirements
with
the
Government authorities, Bankers
and Insurance authorities etc.
1) Balance Sheet and P&L account
for the year etc
2) Monthly stock statement with
transfer with branch
3) Debtors and creditors out
standings with less than 90 days
and
More than 90
days
4) Monthly turnover statement for
calculating the Marine insurance
5) FFR1 & FFR2 details : FFR1 &
FFR2 details : total
Balances in all balance sheet
items to be carried forward after
the postings in financial year are
completed. P&L accounts should
start with zero balance in the new
financial year.

After running all the above


processes the users may take a
report of the Profit and Loss
account and Balance Sheet. For
the purpose, all general ledger
account codes need to be mapped
to profit & loss account and
Balance sheet. The process of
mapping has been explained to
SAVERA FI team which would
develop
the
document
for
mapping GL codes to Balance
Sheet
as
per
Schedule
VI
requirements of companies act.
Apart from the company code
wise B/S and P&L, the required
financial statements for branch
would be drawn at profit centre
level.

Balances of customers and


vendors
should
be
reflected
properly after the balances are
carried forward to the new fiscal
year.
Cash Flow Statement as per This is a special module (Treasury)
accounting standard 3 and Funds in SAP as it is not handled directly
under FI and has to be configured
flow statement
accordingly
Gaps:
Ratio Analysis (Management Information System)
Profit and Loss Account and Balance Sheet on any particular day
considering approximate amounts for accruals \ deferrals and other
items( Expenditure which is in fixed nature and not booked by calculating
on prorate basis as on date of report)
Gaps Resolution:
Ratio Analysis will be met through development.
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Standard SAP provides P&L and BS on any day but takes into account the
FI Actual entries passed up to the date of Report. The desired requirement
can be done through drawing P&L as on date by running standard SAP
report and adding the pro-rata calculations done outside SAP basing on the
previous months actual entries
2.0 ACCOUNTS PAYABLE
2.1 Vendor Master Records:
Existing Business Process/
Requirements

Sap Fitment

Vendor:
1) Purchase of goods for sale
a) at Corporate Office
i) Imports
ii) Local
b) at Branch
i) Imports

Accounts Payable is a sub


module, which will integrate
with GL.
Based on the discussion with
MM module the following are
the required vendor account
groups.

A vendor account group


allows creating vendor master
record with in the given
2) Purchase of goods for Sales and
number range.
Services
ii) Local

a) At Corporate Office
b) at Branch
S.
No

Vendor Group

No. Range

Vendor Local

100000-199999

Vendor Imports

200000-299999

Clearing and Forwarding Agents

300000-399999

Transporting Agents

400000-499999

Service Vendors (recurring and automatic


payment)

500000-599999

One time Vendors

600000-699999

Employee Group

700000-799999

Vendor for expenses

800000-899999

Blank in Future

900000-999999

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1.2 Down Payments


Existing Business Process/
Requirements

Down payments for vendors as per


need basis. Most of the purchases
are imports; payment will be made
after goods received and as per
the credit terms with the vendors.

2.3 Invoices and Credit memos:


Existing Business Process/
Requirements
Purchase Invoice:
The purchase department
follows the following procedure for
purchases.
1) Raising a purchase
order
Purchase order
2) Goods receipt at the
warehouse
- Goods
receipt note
3) Creation of purchase
invoice
Purchase Invoice

Once the goods are received at


the warehouse, a goods receipt
note with details of quantity, item
name and other description is sent
to Head office.
The Head office checks the details
with vendor invoice and GRN note
and if found to be in order then a
Purchase invoice is posted in the
system

Sap Fitment
Special GL indicator A is meant
for the purpose of down payment
In the reports it will show the
normal payments and down
payments separately for each
vendor

Sap Fitment
All the purchases of material will
be handled in the MM module
1) at the time of raising a
purchase order in MM there
is no effect in the financial
books
2) At the time of Good receipt
note, the person in the
warehouse will post a GRN
entry, and then system
updates the inventory and a
GR/IR clearing account.
3) After
GRN,
invoice
verification will be done.
With this it will clear the
intermediary GR/IR clearing
and creates the vendor
liability.
All the above three steps are
carried in MM module, in the
second and third steps system
automatically
updates
the
financial books based on the
integration

The purchase order and GRN are


checked
after
receiving
the
invoice. Manually, the list of
payments to be made on due date
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Existing Business Process/


Requirements
is generated and the payments
are made.

Sap Fitment

In Case of Branches also the same


process is followed at respective
branches
Vendor Payment:
Once the purchase invoice is
posted in the system, respective
office pays the vendor in INR or in
the Foreign currency according to
the credit terms.
The
discount received on the payment
as per payment terms will be
taken as income under discount
received
Credit Memos:
Vendor credit memo is received in
case of quantity discounts; price
differences
etc., Basing on
the approved agreements/POs the
credit memos will
be
verified and the amounts are
adjusted against payables.
Especially for price protection,
incentives & commissions all are
routed through this credit note
either in the case of branches or in
the case of direct vendors.

Payments:
After the invoice verification,
liability arises for that vendor.
Then the respective Finance
department will do the payment
as per the terms of payment.
The following
payments:

are

mode

of

Pay directly and pass the


necessary entry

Payment through printing of


checks on one to one basis
and
system
will
automatically
posts
the
entry

Automatic payment program


for checking the vendor due
date, check printing and
entries posted automatically.

Giving the instructions to


the channel bankers for
payment.
System
will
provide the list of invoice for
payment and rest to be
done in banks format by
accounts department.

2.4 Payment Terms and Interest calculations

Existing Business Process/ Requirements


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The following terms defined below are the most repetitive terms and may
vary from transaction to transaction
Category

No.
Of
days
credi
t

Discount

Number
of vendors

CO Purchases
Imports

30

Nil

HP

2.5%

Lenevo

2.0%

IBM

2.0%

13

Local

Trading
Purchases

Nil

Nil

Nil

Nil

Nil

Sales
promotion

Nil

Nil

Services

Nil

Nil

Others
Brach
Purchases
Local
Others

Sap Fitment
Payment terms are defined as per the above table in the system
Assign the payment term in the vendor master record. It is possible to
assign only one payment term to the vendor. It will appear as default
when the transaction is processed through that vendor. If there are any
changes in the payment terms at the time of invoice, one can change
accordingly manually.

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Payment Terms
Terms of PaymentSavera
R001
R002
R003
R004
R005
R006
R007
R008
R009
R010
R012
R013
Terms of PaymentSavera
R021
R022
R040
Z001
Z002
Z006
Z007
Z008
Z009
Z011
Z013
Z014
Z015
Z021
Z025
Z030
Z045
Z060
Z070
Z080
Z101
Z102
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Description
Advance payment
3 days 2.5% Cash discount
7 days 2.0% Cash discount
14 days 1.75% Cash discount
30days on credit
45 days on credit
90 Days on credit
3 days 2.5 CD, 14 days 1.75 CD, 45 day
due net
3 days 3%,7days 2.5%,14 days 2%, 45
day due net
70 Days on credit
12 Days on Bank Guarantee
15 Days on Credit
Description
Net payment 21 days
7 days 1.5% Cash discount
40 days on credit
Advance
Cash/Current Dated Cheque
98% AFTER INSTALLATION & 2%AFTER
WARRANTRY
Current Dated Cheque +CD
Others
DD on Delivery
11th Day Payment with PDC
3D-2.5%,14D-1.75%,45D-0 CD
14th Day Payment with PDC
15th Day Payment with PDC
21st Day Payment with PDC
25st Day Payment with PDC
30th Day Payment with PDC
45th Day Payment with PDC
60th Day Payment with PDC
7th Day Payment with PDC
8th Day Payment with PDC
1st Day Payment with PDC
2nd Day Payment with PDC

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Z103
Z104
Z105
Z106
Z109
Z110

3rd Day Payment with PDC


4th Day Payment with PDC
5th Day Payment with PDC
6th Day Payment with PDC
9th Day Payment with PDC
10th Day Payment with PDC

2.6 Vendor Balance Analysis


Existing Business Process/
Requirements
Balance Analysis is carried with
following details:
Outstanding due as on date
Ageing analysis by preparing
a separate Excel sheet
Total payment with monthly
break up
Total
purchases
from
individual Vendor and group
of Vendors
Overall performance of the
Vendor

Sap Fitment
Reports:
Standard reports are available for
1) Due date analysis
2) Ageing analysis with 0-30
days , 30-60 days, 60-90
days, 90-120 days , 120-150
days 150-180 days and 180
days above
Total purchases with quantity and
value With the periodic interval of
one month or quarterly the
balance confirmation should be
taken from the vendors.
SAP provides a separate form and
reports to get the balance
confirmation from the vendor. This
form will contain the details of the
business partner in terms of
purchases, payments and dues.
The form is sent to the vendor to
get confirmation from the vendor

3.0 ACCOUNTS RECEIVABLE


3.1 Customer Master records:

There are around 3000 customers. The entire customer list is divided
into following:

Channel Partners
1) Authorised Savera Partners

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(ASP)

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2) Savera System Integrators


3) Savera Retail Partners

(SSI)
(SRP)

4) Others

OEM (Original Equipment Manufacturers)


5) Indian
6) MNC
7) Foreign Partner

End User
8) Corporate
9) Others including Cash sales

Government Sales

Most of the customers are dealers. Any customer can access


goods from
any branch.
Sap Fitment
All customers are defined under Customer Account Groups as discussed
under SD

3.2 Credit Control Management


Existing Business Process/
Requirements
A credit limit for each type of
customer is fixed based on their
credit worthiness. At present there
is no standard policy regarding
credit limit.
Now it is proposed to fix credit
limits for every customer based on
brand and product.

Sap Fitment
Credit Control Area is an
organizational unit that represents
an area responsible for granting
and monitoring credit
The individual customer credit
limits will be monitored in the SD
module

3.3 Customer down Payments

Existing Business Process/


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Sap Fitment

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Requirements
In few cases only there are down
payments from the customers.
There is no distinction between
down
payments
and
direct
payments from the customer. At
the time of down payment it is
directly credited to the customer.
Once
the
sale
invoice
is
generated, the customer account
is debited and automatically it will
be adjusted against the down
payment. There is no mechanism
to clear the down payments
against the specific sale invoice. It
will be adjusted on an adhoc basis.

Special GL indicator A is
specially meant for the purpose of
down payment
In the reports it will show the
normal payments and down
payments separately for each
customer
There is a one to one matching
between down payment and
invoice against which the down
payment made.

Gaps Identification
Standard SAP R/3 functionality does not support creation and tracking of
PDCs and as such it is identified as a functionality gap.
Blocking of the customer automatically if the check bounces 3 times
continuously or check not deposited within 3 days of due date.
Gaps Resolution
Parked Documents

Parked document functionality may be used for this purpose.

However a parked document for PDC immediately receives a regular


document number that cannot be changed when it is finally posted at a
future date. As such the number of parked document and other documents
posted on the day will not be in synch.
Statistical Postings

Create PDCs in SAP R/3 as Statistical Postings with a Special GL


Indicator and capture due dates.

Monitor the special GL Reconciliation Account regularly and review due


dates.

On the due dates deposit and post the through incoming payment.

Manually reverse the statistical postings for such cheques.

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By analysing the customer account and check bounce report; the


responsible person has to block the customer account manually.

3.6 Customer Payment Terms:

The following are the general payment terms. By default these are
taken but may be changed later based on product
Channel Partners
Category

PDC

No. of days
credit

Discount

No of
customers

ARP

15

0.50%

800

RSI

15

0.50%

1500

RRP

15

Nil

200

Others

Nil

Nil

Indian

Nil

Nil

Less
100

than

MNC

Nil

Nil

Less
100

than

Corporate

Nil

Nil

Others
including
cash sales

Nil

Nil

OEM

End User

Government Sales
Instalment

PDC/DD

%of
payment
receipt

Stage

1st
Instalment

98.0%

After
Installation

2nd
Instalment

2.0%

After
Warranty

3rd
Instalment

Number

Sap Fitment
Payment terms are defined as per the above table in the system
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Assign the payment term in the Customer master record. It is


possible to assign only one payment term to the Customer. It will
appear as default when the transaction processed for that Customer.
If any changes in the payment terms at the time of invoice one can
change accordingly.

4.0 BANK ACCOUNTING:


Existing Business Process/ Requirements Branch:
Branch accountant/ cashier is the authorized person at branch level to
do
the cash and bank transaction. He is responsible for the
following:
1. Collects the cash or bank cheques from customers and cash from
RMA division also.
2. Prepares a statement giving the entire cash and bank collection
and deposits in the HDFC bank on the next working day.
3. Branch Manager is authorized to purchase local requirements.
4. Both revenue and fixed expenditure at branch level will be paid by
Branch itself. They have to withdraw from bank separately. They
cannot take directly from receipts.
5. Branch accountant can issue a cheque up to a maximum of Rs
100000 per cheque. There is no limit on number of checks issued
per day
6. Maintain a head office account for all the transactions with the H
O
7. Reconcile with the head office books on a monthly basis
Head office:
Head office is responsible for monitoring all the 40 branches.
1. The collections from the branches will be shifted from HDFC
Branch account to HDFC account of the SAVERA Corporate Office
2. Head office will send the funds required by the branches
Head office checks its cash position at any given point of time by
checking all the 40 branches bank account with the HDFC bank with
that of the head office balance
Bank Reconciliation:
Reconciliation of bank account balance with the Bankbooks is being
done manually. Based on the bank statement, accountant will check the
cleared and un cleared checks and reconcile the balance.
Sap Fitment
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CASH
The cash journal is a sub ledger of Bank Accounting. It is used to
manage a company's cash transactions. The system automatically
calculates and displays the opening and closing balances, and the
receipts and payments totals. Company code can have number of cash
journals. With help of cash journal we can also carry out postings to G/L
accounts, as well as vendor and customer accounts
In SAVERA there are total 40 branches, one Warehouse and one head
office. 42 cash journals have to be created under SAVERA company
code to operate the cash transactions at each branch.Validation for
paying beyond Rs 20000/- can be carried out
The following are the Two different Cash journal as given by SAP
Petty Cash
a) Cash Payments
1. Staff Loan and Salary advances
2. Salary and Wages Payment.
3. Misc. Expenses Payment
4. Freight payment
5. Cash Purchase
6. Advances to Employees
b) Cash Receipts
1. Scrape Sales
2. Service Income.
3. Misc. Receipts.
Party Cash
1. Vendor payment
2. Customer Receipts
Apart from the above cash withdrawals and deposits into bank are
happened in the business due course.
BANK
Definition and Meaning of House Bank Key & Account ID:
House bank is a business partner that represents a bank through which

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company deals the bank business transactions.


A bank ID represents each house bank of a company code in the SAP
system, every account at a house bank by an account ID.
In the present scenario each bank through which SAVERA is dealing is
configured as a separate house bank. With in the House Bank, account
ID has to be created. For easy bank reconciliation under each House
Bank three separate account IDs are created. One for the main bank
account, second one for incoming checks clearing and third one for
outgoing checks
All the transactions are initially routed through the internal account IDs
(incoming and outgoing clearing accounts). Once the checks realized in
the bank then only these transaction are updated in the main bank
account
In the SAP system, it recognises the bank ID and the account ID to
specify bank details. These specifications are used, for example, for
automatic payment transactions to determine the bank details for
payment and for bank reconciliation purpose.
Bank Reconciliation:
By taking a three-account ID method for House Bank. Reconciliation is
very easy. At any given point of time the Main account ID always has
the same balance as per the bank books. Whatever lies in the
intermediary accounts are the cheque issued and deposited but not
cleared.
Bank
Details
Location

Banker Name
HDFC Bank
Kolkata
Limited
HDFC Bank
Kolkata
Limited
HDFC Bank
Howrah
Limited
HDFC Bank
Patna
Limited
HDFC Bank
Raipur
Limited
HDFC Bank
Ranchi
Limited
Bhubaneswa HDFC Bank
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Branch

Account
Type

Account No
000827900003
Stephen House
Cash Credit 65
000827900093
Stephen House
Current
61
198823200002
Dobson Road
Current
00
018623200037
Exhibition Road
Current
10
Devendra Nagar
015223200082
Road
Current
73
015023200024
Ranchi Jharkhand Current
07
Saheednagar
Current
108023200004

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Limited
HDFC Bank
Limited
HDFC Bank
Limited
HDFC Bank
Limited
State Bank Of
India

Guwahati
Indore
Lucknow
Kolkata
Kolkata

Indus Ind Bank


ICICI Bank
Limited

Kolkata

Guwahati Assam

Current

Vijay Nagar

Current

Hazrat Gunj
R N Mukherjee
Road
R N Mukherjee
Road
R N Mukherjee
Road

Current

55
026423200035
96
040423200021
10
007823200088
87

Current

32600338520

Current

200999120189

Current

000605006869

5.0 ASSET ACCOUNTING


Procurement of Fixed Assets
Each fixed asset acquired by the company must be valued, reflected
in the books of account and also in other statutory records for physical
tracking. Annually / periodically assets must also be depreciated, at
prescribed rates and their gross values and accumulated depreciation
charge must be disclosed in the Annual Account Statements.
Savera Being a distribution company, the amount and quantity of
fixed assets base is low. It has a total fixed assets of Rs 1.5 Crore.
1) A request comes from the required person to the
Department Head and the department head himself
orders for the item.
2) Once the item is received, it is capitalised from the date
of purchase
Fixed Assets Register:
1) There is no specific number allotted for the fixed assets
2) Each assets will be recognised by its description only
3) No physical verification has been conducted
4)

proper fixed assets register

Drill down of components in the asset register is required


Depreciation:
Book depreciation is calculated on WDV method at the rates
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prescribed by the Companies Act 1956. Depreciation is calculated on


yearly basis. In the year end only the depreciation is calculated and
posted in the books of accounts.
Depreciation for the Income Tax purpose is calculated at the
time of Tax audit only. Tax deprecation is as per the Income Tax Act.
Asset Retirement:
At SAVERA the individual departments identify the assets which are to
be scrapped / sold. The accounts department works out the WDV of
the asset. After raising the invoice for sale of asset the requisite
accounting entries are passed and the asset account and accumulated
depreciation account are duly adjusted and gain or loss on sale is
booked. For scrapping an asset without value the asset and
accumulated depreciation account would be adjusted with an asset
write-off account.
Sap Fitment
1) Chart of Depreciation:
Definition and Meaning
The chart of depreciation contains the defined depreciation areas. It is
predefined to contain the rules for the evaluation for assets. The
company code will be allocated to the chart of depreciation. One
company code can be attached to only one chart of depreciation. The
chart of depreciation and the chart of accounts are completely
independent of one another.
The chart of depreciation: SAVERA
Depreciation Area is an area showing the valuation of a fixed asset
for a particular purpose (for example, for individual financial
statements, balance sheets, for tax purposes, or management
accounting values).
There will be only two depreciation areas, which are as follows:
(i)
Depreciation for accounting
(ii)
Depreciation area for Income tax

2) Master Data in Asset accounting:


Account Determination

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Asset Class

Asset Master

Account Determination:
It is the integration between Asset
accounting Sub ledger and General Ledger. All the acquisition and
depreciation values flows to the General ledger based on the general
ledger given or integrated with this Account determination
Account Determination:

1) Lands
2) Buildings
3) Plant and machinery
4) Office Equipments
5) Computers
6) Furniture and Fixtures
7) Vehicles
8) Capital Work in progress

Asset Class: Asset classes are for classifying fixed assets according
to legal and management requirements. For each asset class, control
parameters and default values can be defined for depreciation
calculation and other master data. Each asset master record must be
assigned to one asset class.
Asset class is a combination of account determination, screen layout
rule and number range. The Asset class will control asset number. The
number assignment for the asset master will be done internally.

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S.No
1

Asset class
Lands

No. Range
01

Interval
10000-19999

2
3
4
5
6
7
8
9

Buildings
Plant and Machinery
Office Equipment
Computers
Furniture and Fixtures
Two wheeler
Vehicles
Capital work in
progress

02
03
04
05
06
07
08
09

20000-29999
30000-39999
40000-49999
50000-59999
60000-69999
70000-79999
80000-89999
90000-99999

Asset Master: Each asset is created as an asset master. It will be


created under Asset class. The number will be assigned internally.
Serial number of HW and SW is to be provided. Apart from the
description of the asset master the hard ware and soft ware serial
number also captured in the asset master record
3) Acquisition of Assets:
SAVERA has following two methods to acquire the fixed assets.
1) Acquisition from the Vendor: An external asset acquisition is a
business transaction resulting from the acquisition of an asset
from a business partner. In this process the Asset master and
Vendor master will be created in respective sub modules and the
integration between sub modules and GL also done. When the
purchase takes place the system allows this business transaction
with a single
posting. This means that you can post the asset
acquisition and the corresponding vendor payable in one
transaction
2)

Capitalization of stock from Inventory: SAVERA is into the


business of computer peripherals and whenever required any
system related items, the concerned department consumes the
required item and later it will be capitalized at cost. For the
above procedure in SAP there is a transaction which will decrease
the stock and capitalize the asset. With the movement type 241
consumption of warehouse goods for assets the stock flow from
warehouse can be capitalized.

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4) Depreciation:
a) Book Depreciation
Chart of Depreciation SAVERA contains two depreciation areas to
represent different type of depreciation calculation. Depreciation
area 01 represents the book depreciation area. The
depreciation calculated in that area only is posted to the books
of accounts.
SAVERA has adopted the WDV method of depreciation to
calculate the book depreciation. The depreciation rates are
taken as per the Companies Act. The depreciation rates taken
are accordingly incorporated in the Depreciation keys, which in
turn are assigned to the asset classes.
In the month end by executing the depreciation run, the system
automatically calculates the depreciation and posts to the
predefined general ledger accounts.
b) Tax Depreciation
Chart of Depreciation SAVERA contains two depreciation areas to
represent different type of depreciation calculation. Depreciation
area 15 represents the income tax depreciation area. The
depreciation calculated in this area is only for reporting purpose,
there is no posting in the books of accounts.
Depreciation for Income Tax has to be calculated as per the
WDV method as prescribed in the Income Tax Act 1961. The
depreciation rates taken are accordingly incorporated in the
Depreciation keys, which in turn are assigned to the asset
classes.
5) Retirement and scrapping of asset:
Fixed asset retirement is the removal of an asset or part of an asset
from the asset portfolio. From the removal system has to ensure the
profit/loss on sale of assets and Proper accounting of accumulated
depreciation of the asset sold.
In SAP R/3 environment once the asset is identified by the main or
sub-asset number all required information is available online. No
accounting effort is involved in scrapping of an asset after it is
identified. The entire accounting process is taken care of by posting a
retirement without revenue. In case of sale of an asset only the value
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realised on sale has to be posted in a transaction retirement with


revenue. The entire range of related adjustments is handled by predetermined account assignments in configuration. SAP R/3 also allows
management of partial retirement of assets with or without revenue.
It is also permissible to part-retire an asset with or without value in
SAP R/3.
6) Physical Inventory:
SAP offers a standard report for the purpose. SAP also permits
write-offs by way of posting a retirement without revenue in whole or
in parts.
Physical verification of assets is facilitated by report availability.
Physical verification has to be carried out manually. Then Records are
updated to account for discrepancies found on such verification and
erosion in value of assets beyond their book value based on the
physical conditions

Assets Details
Acct
Name of Account
Determination Determination
10000
11000
20000
30000
31000
32000
40000
50000
60000
80000
TR250
TR251
TR252
TR253
TR254

Real estate and similar rights


Buildings
Machinery and Equipment
Furniture and fixtures
Vehicles
Hardware (IT)

Class Asset Class Name Asset class description


Real estate and similar
1000 Real estate
rights
1100 Buildings
Buildings
2000 Machinery
Machinery
3000 Fixtures & fittings
Fixtures and fittings
3100 Vehicles
Vehicles
3200 DP / Hardware
DP / Hardware

Down payments paid and assets


under construction
4000 Assets under const. Assets under construction
Low-value assets
4001 Investment measure AuC as investment measure
Leasing
5000 LVA
Low-value assets
Leased assets (operating
Objects of art
6000 Leasing (oper.)
lease)
Leased assets (capital
Land and construction sites
6100 Leasing (capital)
lease)
Infrastructure and structures
7000 Formation expenses Formation expenses
Buildings
8000 Objects of art
Objects of art
Assets, machines and devices
8100 Advance payments Advance payments
Vehicles
8200 Goodwill
Goodwill
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TR255
TR256
TR258
TR260
TR261
TR262

Z0500 GOOD WILL


GOOD WILL
Z1000 LANDS
LANDS
Z2000 OFFICE BUILDINGS OFFICE BUILDINGS
Z2100 FACTORY BUILDINGS FACTORY BUILDINGS
Z2200 SHOWROOM
SHOWROOM
Z3000 PLANT & MECHINARY PLANT AND MECHINARY

TR263

Furniture and fittings


Other tangible fixed assets
Asset under construction
Rights
Goodwill
Organization costs
Research and development
costs

TR264

Special costs

TR267
Acct
Determinat
ion

Other intangible fixed assets

Z4100 MOBILE, EPBX, FAX


OTHERS-OFFIEC
Z4200 EQUIP

Z4000 AIR CONDITIONERS

Name of Account
Determination

Class

Z05000

GOOD WILL

Z5000

Z10000

LANDS

Z5100

Z20000

BUILDINGS

Z6000

Z30000
Z40000
Z50000

PLANT AND MACHINERY


OFFICE EQUIPMENT
COMPUTERS

Z7000
Z8000
Z8100

Z60000

FURNITURE AND FIXTURES

Z8200

Z70000
Z80000

ELECTRICAL FITTINGS
VEHICLES

Z8300
Z9000

Asset Class Name


HARD WARECOMPUTER
SOFTWARECOMPUTERS
FURNITURE &
FIXTURES
ELECTRICAL
FITTINGS
TWO WHEELERS
MOTOR CARS
COMMERCIAL
VEHICLES
STAFF BUSVEHICLES
CAPITAL WIP

Z90000

CAPITAL WIP
ACCOUNT DETERMINATION
FOR GROUP ASSETS-SMAP

Z9999

GROUP ASSETS

Z99999

AIR CONDITIONERS
MOBILE PHONES, EPBX,FAX
SETS
OTHERS- OFFICE
EQUIPMENT

Asset class description


HARD WARE - COMPUTERS
SOFT WARE - COMPUTERS
FURNITURE & FIXTURES
ELECTRICAL FITTINGS
TWO WHEELERS- VEHICLES
MOTOR CARS - VEHICLES

COMMERCIAL VEHICLES- VEHICLES


STAFF BUS- VEHICLES
CAPITAL WORK IN PROGRESS

ASSET CLASS FOR GROUP ASSETS

Depreciation Key

ChD
ep
SMA
P

Dep
Ky

Stat
us

0 X

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cut
off
valu
e
key

no
ordina
ry dep
with
special
dep

no int
if no
dep
planed

Acq. Only
allowed
in
capitaliza
tion year

Da
ys

Not
redu
ce

Name for whole


depreciation

No depreciation an
no interest
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SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P

CA1

0% DEPRECIATION

CA2

CA3

CA4

5% DEPRECIATION
13.91%
DEPRECIATION
18.10%
DEPRECIATION

CA5

CA6

CA9
DG2
0
DG2
5
DG3
0

DIG4

GD1
0
GD3
5
GD5
0
GD7
0

Declining balance 2
Declining balance 2
x

X
X
X

GL20

GL25

GWG

IN0

IN1

IN2

IN3

IN4

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40% DEPRECIATION
25.89%
DEPRECIATION
100% DECLINING
BALANCE METHOD

Declining balance 3
Sum-of-the-yearsdigits dep. 4 years
Buildings
decl.bal.10.0/ 5.0 /
2.5 %
Buildings decl.bal.3
2.0 / 1.0 %
Buildings decl.bal. 5
/ 2.5 / 1.25 %
Buildings decl.bal. 7
/ 5.0 / 2.0 / 1.25 %
Buildings straight-li
2%
Buildings straight-li
2.5%
LVA 100 % Complet
depreciation
Tax Depreciation - 0
- India
Tax Depreciation - 5
- India
Tax Depreciation 10% - India
Tax Depreciation 15% - India
Tax Depreciation 20% - India

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SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA
P
SMA

IN5

IN6

IN7

IN8

IN9

LEAS

LINA

LINB

LINC

LINK

LINR

LINS

LINV

LINW
MAN
U

Tax Depreciation
25% - India
Tax Depreciation
40% - India
Tax Depreciation
50% - India
Tax Depreciation
60% - India
Tax Depreciation
100% - India
X

S7DA X
S7D
B
X
S7G
D

S7GL

SBLA
SBLB

X
X

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X
X

X
X

Leasing
Str.-line via acq.val
below zero with
interest
Str.-line from acq.
value pro rata to ze
w/int.
Str.-line acq. val. pr
rata w/o curb w/ int
Str.-line from
acq.value to zero
without interest
Str.-line from rem.li
to book value zero
Str.-line over rem.li
pro rata to zero
Str.-lne dep.from
acc.dep below zero
w.curb + int.
Str.line dep.from
rep.val.below zero
Int/No curb
Manual depreciatio
only
Spec.dep complete
(60/10/10/10/10%)

Spec.dep.AuC (60%
Spec.dep. and
decl.bal.ordinary de
3x
Spec.dep. and str.-l
ord.dep. First-yr.con

Special dep. 75%


Special dep. 75% A

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P
SMA
P
SMA
P
SMA
P
SMA
P

SFE1

SFE4

Spec.dep. immobile
goods (15%)
Spec.dep. mobile
goods (40%)

SFG4
SFG
N

Spec.dep. (50%)

SMA
P

STCK

SMA
P

VD2
0

VRM

SMA
P

VD2
5

VRM

SMA
P
SMA
P
SMA
P

VD3
0
VGW
G

VRM

VLIN

X
X

X
VRM

Spec.dep. (Suppl.A
Unit-of-production
depreciation
(Example)
Property value
decl.bal. 2 x with c
off value
Property value
decl.bal.2.5 x with
cut-off value
Property value
decl.bal. 3 x with c
off value
Property value LVA
Germany
Property value str.line with cut-off val

6.0 REPORTS
Some of the Standard reports offered by SAP
Module
Description of Reports
FI-GL
Chart of Accounts List: This report gives the accounts
created per chart of accounts.
G/L Accounts List: This report gives the accounts created
per company code along with the master data details.
Financial Statements: This report gives the balance
sheet and profit and loss account for the specified
company code based on the financial statement version
selected. It also provides a comparison to the fiscal year
specified for the comparison purpose.
Account Balances: This report gives the balances of
various accounts for the specified company codes and the
selected periods including the opening balances,
reporting debits and credits and the closing debits and
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Module

FI-AR

FI-AP

FI-AM

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Description of Reports
credits. This report is available for various summarisation
levels.
Account Statements: Account statements are available
for all the GL accounts, vendors and customers per
company code.
Line items report: This report details the line items
account wise for the company code and periods.
Balances of customers: This report gives the balances of
various customers for the specified company codes and
the selected periods including the opening balances,
reporting debits and credits and the closing debits and
credits. This report is available for various summarisation
levels. This report can be created from different
reconciliation accounts, special G/L indicators and can be
grouped using the grouping key.
Open Items report: This report is available for customers
detailing the open items including the special G/L
balances.
This report also can be grouped across
customer codes using grouping key.
Master Data Report: This report gives the list of
customers created for the selected company codes.
Balances of vendors: This report gives the balances of
various customers for the specified company codes and
the selected periods including the opening balances,
reporting debits and credits and the closing debits and
credits. This report is available for various summarisation
levels. This report can be created from different
reconciliation accounts, special G/L indicators and can be
grouped using the grouping key.
Open Items report: This report is available for vendors
detailing the open items including the special G/L
balances.
Master Data Report: This report gives the list of vendors
created for the selected company codes.
Asset Portfolio Reports: The asset values can be
displayed for company code at parameters like asset
class, asset number, cost centre etc.
Asset History Sheet: Asset history sheet can be created
for all assets within a company code.
Depreciation reports: Depreciation reports are available
for total, planned, unplanned, etc. Reports are also
available for depreciation forecast.
Other reports: Separate reports are available for
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Module

Description of Reports
acquisitions, retirements, etc.

Controlling
SAP controlling overview
Controlling (CO) contains all accounting functions necessary for effective
controlling. If an organization divides accounting into internal and external
viewpoints, CO represents the internal accounting perspective, because it
provides information for managers -those who are inside an organization
and are charged with directing and controlling its operations. CO includes
cost and revenue accounting.
Controlling area
SAP Definition

A controlling area is an organisational unit within CO module. It is


used for cost accounting. It is within the controlling area that Cost
Centre hierarchies are defined and cost centres are assigned to
these. A controlling area may be assigned to one company or to
many companies. If a controlling area is assigned to many
companies then cross-company cost accounting can be done.
However, each company must have the same currency in order to be
able to do cross company cost accounting and also same fiscal
variant (i.e. same accounting period).

What are the key deciding Factors?

Cost Accounting method, inventory valuation, Cost centre Structure


are different across legal entities.
Chart of Account and Fiscal year variant

Cost Center Accounting


The Cost Center Accounting component (CO-OM-CCA) tracks where costs
occur in the organization. The cost Center is an organizational unit in a
controlling area.
Cost centers can be defined for each low-level
organizational unit that has responsibility for managing costs. As costs are
incurred, they are assigned or posted to the appropriate cost Center.

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Master Data
Cost centre Master
A cost centre represents the location of cost occurrence. It can be set
up based on function, geographical location, area of responsibility,
activities / service provided or allocation criteria.

The cost centre structure should serve the following purposes:


o All reporting requirements which require costs to be displayed
separately for a department / function.
o All allocation requirements that require costs to be identified
separately and put in separate buckets such that they could be
directly picked up for different basis of allocation

Standard Hierarchy of Cost Centers


Cost centres can be grouped under an organisational hierarchy for
monitoring and reporting purposes.
For SAVERA as agreed in the
organisation structure the following cost centre grouping hierarchy will be
adopted. As per this hierarchy, it would be possible to control cost for each
cost centre within SAVERA.
Cost Center creation
Cost Center is created in a controlling area and assigned to a company
code. Initial cost centers will be created valid from 01.04.2005 .The
authorization for creating the cost Center master shall be with the Costing
department. Cost Center code will be externally assigned at the time of
creation. Each Cost Center will be attached to one Profit Center.
Cost Center categories
1.1 Cost centers have been classified into the following categories:

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A
E
F
G
H
I
P
Q

Administration
Executive
Finance and Accounts
Logistics
Maintenance
Marketing & Sales
Service
Settlement
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Cost planning
The individual cost centers must plan the cost to be incurred by them for
the planning period. Costs include the Administration overheads, personnel
expenditure and selling and distribution overheads. The actual overheads
will be compared with the plan to calculate the variance.
The Planning exercise will be carried out at the beginning of every year.
Primary postings
When the actual expense is accounted in the FI module, the costs are
simultaneously updated from the controlling perspective. In case of
depreciation the asset is assigned to a cost Center and depreciation is
debited to it at the period end.
Cost centers Accounting in SAVERA
Existing Business Process/
Requirements
Currently no cost center
accounting is in place.

Sap Fitment
All the administrative, finance, etc.,
costs will be posted to the cost
centers.
The cost can be
apportioned to other receivers
using cost center accounting.

Cost Center Hierarchy (Tentatively provided by SAVERA)


Major Cost Center groups:

Admin
Finance & Accounts
IT Dept.
Marketing
Warehouse
Purchase
Distribution
Service & Maintenance

The above cost centers for each of branch and head office level are to be
created for cost control.
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Cost element accounting


Cost Element Accounting classifies the costs and revenues that are posted
to CO, and provides the capability for reconciliation of costs in CO with the
Financial Accounting (FI) module.
Master Data
Cost elements
A cost element describes the nature of cost. It serves the following
purposes:
Primary cost elements are GL accounts, which would require a compulsory
cost object whenever these accounts are credited or debited. The cost
Center / internal order transactions shall be analyzed cost element wise
Secondary cost elements are used for allocations and settlements. These
are not represented by GL accounts in FI. Based on the type of activity
allocations, the secondary cost elements shall be set up after the allocation
logic is finalized.
SAVERA has finalized primary cost elements with the FI requirements for
ensuring that the cost break up as required for costing as well as reporting
requirements could be obtained through the GL itself. These have been
segregated into direct overheads, administrative, personnel and selling
and distribution overheads so that these could be posted to the relevant
cost centers for overhead costs reporting.
Cost element groups
Cost element groups can serve various purposes. For example, they can be
used to create reports or to process several cost elements in one business
transaction.
The cost elements are grouped into: (Tentative cost element groups)

Sales and other income


Purchases
Administration overheads
Salaries and wages
Selling and distribution overheads
Communication expenditure
Freight and Forwarding
Legal and professional expenditure
Other expenditure

Cost element creation


Cost element is created in a controlling area
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Cost elements are time dependant data. Initial cost elements will
be created valid from 01.04.2005
The authorization for creating and changing the cost element
master shall be with the Accounts & Costing department at Head
office
Cost element code will be externally assigned during creation

Cost element categories


Primary Cost elements
categories:

have

been

classified

into

the

following

Primary costs - Postings from FI


Sales revenue Postings from SD to Profit center Accounting
Sales deduction - Postings from SD to Profit center Accounting
Secondary Cost elements have been classified into the following
categories:
Assessment and distribution Allocations from cost centers to cost
centers

Cost Element accounting in SAVERA:


Existing Business Process/
Requirements
Currently there is no cost
element in the system

Sap Fitment
Cost elements are going to be
created in line with the GL
accounts as a primary cost
element; secondary cost elements
will also be created for internal flow
of values.

Primary Cost Elements


Nature of
Basis of Reallocation
Expense
Salary & wages
All the employees will have to be identified to the
and
cost
centres/internal
order.
Salaries
and
Other allowances
allowances of the employees shall be debited to
the respective cost centres.
Pension and
Monthly provisional entries are passed in financial
gratuity
accounts to account for these expenses. The
expenses will be accumulated under the HR cost
centre and subsequently distributed to the various
cost centres based on summation of basic salaries
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Nature of
Expense

Basis of Reallocation

debited to the cost centres. Similar to Salary &


Wages
Staff Welfare
These expenses are incurred at every location of
expenses
SAVERA, thus these shall be debited to the
incurring cost centres or a General cost centre
maintained for every location.
These expenses shall be allocated to all the cost
centres (including the service cost centres)
existing at the particular location based on the
head count.
Rental and other
These expenses are incurred at every location of
Expenses related SAVERA, thus these shall be debited to the General
to
cost centres maintained for every location. The
Office
floor space at each of the locations shall have to be
allocated to each cost centre. These expenses shall
be allocated to all the cost centres (including the
service cost centres) existing at the particular
location based on the floor space.
Rent and
The expenses pertaining to these would be debited
expenses for
to general cost centres at each location since all
Transit
the employees use these facilities.
accommodation
Travelling &
These expenses shall be debited to the respective
Conveyance
cost centres based on the employees who have
Expenses
incurred the expenditure. In case motorcar and
two wheeler expenses are not identifiable to any
cost centre the same shall be debited to general
cost centre of the respective location. Wherever
the expenses are debited to the general cost
centres, the above cost elements shall be
allocated to the various cost centres of the
particular location based on the head count.
Office Expenses
These expenses are incurred at each location. The
office expenses shall be debited to the general
cost centre of the respective location.
These expenses shall be allocated to the various
cost centres of the particular location based on
the head count.
Telephone
The telephone lines will have to be identified to the
expenses,
respective cost centres. The expense would be
Telex & fax
debited to the respective cost centres. In case of
common facilities and in situations where it may
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Nature of
Expense

Professional fees
& Legal
Charges

Audit fees
Bank Charges

Directors
expenses
Advertisement
expenses

Loss on Sale of
Fixed
Assets & Leased
Assets
Depreciation
Donations
Raw Materials,
Stores
&Spares
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Basis of Reallocation
not be possible to track the telephone calls, the
expenses shall be debited to the General cost
centre of the respective location.
The common expenses shall be allocated to various
cost centres of the respective location based on
the number of telephone connections in each cost
centre.
In case these are general Prof. charges, they shall
be debited to legal cost centre. For SAVERA legal
fees will be debited to the respective cost centre
for which the fee is paid or to the legal
department in case legal fees paid does not relate
to any other cost centre.
In case it is for some specific cost centre they shall
be debited to that cost centre or internal order.
These expenses would be debited to the corporate
accounts cost centre
These expenses identified to the cost centre would
be debited to that cost centre else the same shall
be accumulated in a general cost centre at the
respective zones.
These expenses will be debited to Management/
Corp. cost centre
These expenses could be of two natures. In case it
is for a specific purpose, it shall be debited to the
respective cost centres. In case it is for exhibitions
and/or corporate campaign etc. they shall be
debited to the respective internal orders created
for various purposes. These internal orders will be
settled to a G/L account or cost centre, which will
be decided on a case-to-case basis.
These expenses shall be debited to the cost centre
to which the asset belongs.
The assets would be allocated to the cost centres
and the same would be debited accordingly.
These expenses shall be debited to the corporate
(general) cost centre.
Overheads incurred for procurement of RM and O/H
at RM stores is initially booked at the relevant CC.
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Nature of
Expense
Repairs &
Maintenance

Basis of Reallocation
These expenses can be debited to the cost centre
where there is incurrence of the same, or, in cases
where such expenses were for an entire Group/
Department they can be captured in the General
CC and distributed over applicable CCs in a predefined manner.
Sales may be created as a CC group with regional
Offices as CCs Under the same. Overheads can be
booked into the relevant CCs.

Overhead
expenses for
Sales and
Regional
Offices

Secondary Cost Elements


For SAVERA secondary cost elements will be defined for the following
activities:

Assessment between different cost centres.

Settlement between cost centers.

Internal Order:
An Internal Order is an extremely flexible CO tool that can be used for a
wide variety of purposes to track costs within a controlling area. Internal
orders provide capabilities for planning, monitoring, and allocation of costs.
Costs are budgeted for each event / activity and availability check will be
activated. Active availability control means that the system prevents the
posting of transactions that exceed the budget. Broadly the Internal orders
will be classified into

Telephone Expenditure

Brand wise Sales promotion expenditure

Road show and exhibitions

Different Schemes for sales and purchases

Internal Orders will be created as and when vendor or SAVERA itself offers
the scheme. Its target will be fixed and compared with the actual.
Telephones - Separate orders will be created for telephones wherein the
monthly expense could be posted.
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Internal orders for brand wise sales promotion expenses are created to
capture the sales promotion costs brand wise separately.

Planning
Planning can be done for each internal order for whole year or for a
particular period. Always comparison can be done plan amount and actual
for variance analysis.
Settlement of Internal Order
At the period end the cost collected in the internal orders can be settled to
other cost object.
Gap (Functional gap)
While operating the different schemes in purchases and sales, the total
sale or purchases only be calculated through internal order. But Calculation
of incentives, discounts, Price protection on different schemes and
generating credit and debit memo's is not possible directly in the system.

Profit center accounting


Profit centres are areas of responsibility within a company for revenues and
expenses, as well as certain assets and liabilities in some cases. All profit centres
are arranged into a standard hierarchy representing the entire organization.
A Profit Centre Group is an organizational unit storing a group of Profit centres.
Profit Centres with similar characteristics may be grouped together in Profit centre
group. You can define any number of Profit centre groups for valuation, planning
and allocation purposes as part of master data maintenance. You can also
arrange Profit centre groups in further Profit centre groups, creating a Profit centre
hierarchy.

A profit center group is a hierarchy structure of profit centers. SAVERA has


6 levels in its Profit center hierarchy
Standard Hierarchy

Standard hierarchy

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Region
wise Business Blue Print Document Page
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- SAVERA

PROJECT ARJUN

State Wise

Main Branch wise

Branch wise

PC for Distribution
channel

PC for Service channel

Profit center groups can be used to group profit centers together according
to company-specific criteria.
Profit Center Hierarchy created to get financials figures profit center
(Activity in Branch).
Basic objective of creating profit center by activity performed at each
branch is to get expenses, revenues and balance sheet item information by
branch activity.

Branch Transfer price


IN SAVERA all the imports material and some local purchases will come to
head office and from head office it will be transferred to all its branches.
While transferring the material head office make a margin on cost and
sends to the branches. Head office will sends goods as branch transfer
against form F without paying any duty on that transfer. Branch people
receive the goods and value it at branch transfer price and for all other
sale related transaction the BT will be taken as a cost for branch.
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Initially when head office transfer goods it will book a profit on branch
transfer price. If the goods are sold from branch, again branch will book it
as sales and book the margin on sale as branch profit.
In the year end head office will reverse the margin which it already booked
in the books and which is lying as stock at branches. It is a manual entry
passed in the year end.
Process in SAP: All the branches and head office are treated as
customers and vendors. The following are the series of
transactions that take place for the branch transfer
At Branch:
1) Raise a purchase order with the branch transfer price
2) Receive the goods and post GRN. Then the stock account will be
updated with the branch transfer price and other relevant cost.
3) Finally branch has to post invoice verification by crediting the head
office
account
At Head office:
1) Raise the sales order with branch transfer price
2) Post the deliver order that resulting the decrease in stock and
debiting the cost of goods sold or consumption account.
3) At the time of billing the entry will be debiting the Branch office
and crediting the sales or branch transfer account.
As a month end closing procedure, the stock sent by head office and lying
at branch should be revaluated at head office price in the books of head
office. Through a report development we can find the stock unsold from
branch transfer at branch.
Closing Processes in Controlling
Closing for controlling should be done only after complete closing of
financial accounting (closing FI-GL).
Cost centers (month-end process)
The costs from the general and service cost centres shall be allocated
through distribution or assessment to the operations group cost centres at
every month end. The re-postings from clearing cost centres would also be
carried out every month end.

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Similarly, all internal orders (other than orders for assets under
construction) would be settled to either relevant cost centres or GL
accounts as detailed under the internal order section in this report.
Profit Centers
Overhead costs will be transferred to Profit centre automatic assignment
and further distributed through assessment cycles to be run periodically
based on pre-fixed norms that will be decided in consultation with the FPOs
(functional process owner) after finalisation of the segment level
characteristics.

Business Requirements

To capture, as correctly as possible, the user cost centre account at the FI


data entry level.

To capture common cost under proper common cost centres to facilitate


smooth distribution over the actual user cost centres at period-end based
on pre-fixed norms.

To periodically and / or at Year End, allocate expenses collected under


various common cost centres to the final user cost centres for the purpose
of Management Accounting,

Process Description
Ste
p

1
2
3

Description

SAP /
Manual

Verify Cost Center


Entries
Check if any wrong
entries passed and
require rectification
Corrective Entries
Re-post cost
Re-post Line Items
Select Distribution,
Allocation or
Assessment,
Accrual Calculation
cycles in predefined order
Check if Allocation

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T.
Code

Remarks

SAP

SAP

KB11
KB61
KSV5
KSU5
KSC5
KSA3

SAP

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10

Norms like tracing


factors, receiver
weight age etc.
have undergone
any change
Amend the cycle

SAP

Verify and approve Manual


amendments to the
cycles
Test Run cycle
SAP
Distribution
Assessment
Indirect Activity
Allocation
Accrual Calculation
Verify the effects
SAP

Run final cycle


Distribution
Assessment
Indirect Activity
Allocation
Accrual Calculation

KSV5
KSU5
KSC5

KSV5
KSU5
KSC5
KSA3
View the reports
generated for
distributions of
costs from
receivers to
senders.

SAP
KSV5
KSU5
KSC5
KSA3

Reports
The following reports shall be available as standard reports in the SAP R/3
system:
Module
Description of Reports
CO-CCA
Actual Comparisons: These report details of the actual
costs incurred for various cost centres or cost centre
groups across various cost elements and can also detail
the partner cost centres. The report is available for the
periods specified by the user.
Actual/Actual Comparisons: This report details a
quarterly or annual comparison of actual costs
accumulated in the various cost centres or cost centre
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Module

Description of Reports
groups.
Actual Line Items: This report lists down the actual line
items cost centre wise and cost element wise based on
the posting dates. This report can be executed line item
wise with sub-totals or a totals report for the cost centre.
Master Data Reports: These reports give the details of
the master data created for various cost centres, cost
elements and statistical key figures.

CO-PCA

Actual Comparisons: This report details a comparison of


the actual profitability incurred for various profit centres
or profit centre groups across various cost/revenue
elements and can also detail the partner profit centres.
The report is available for the periods specified by the
user.
Actual/Actual Comparisons: This report details a
quarterly or annual comparison of actual profitability
accumulated in the various profit centres or profit centre
groups.
Actual Line Items: This report lists down the actual line
items profit centre wise and cost/revenue element wise
based on the posting dates. This report can be executed
line item wise with sub-totals or a totals report for the
profit centre.
Master Data Reports: These reports give the details of
the master data created for various profit centres, profit
elements and statistical key figures.

Material Management
Enterprise structure
Existing Business Process/
Requirements
For distribution & services,
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SAP Fitment

All the existing branches will

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SAVERA is having branches


in all over INDIA. Currently
SAVERA is having Head
office at Kolkata with 21
branches

Material is stored separately


like Sales stock, RMA Stock,
Repaired Stock, Mark Com
stock & Scrap.

be mapped as plants.
Head
office,
central
warehouse also is mapped
as plants.
These plants will also have
Service Storage Location
These stocks will be mapped
as storage locations. Each
plant will have different
storage location.
RSAL SALES STOCK
RMC
O
MARCOM STOCK

Import purchase is carried


out
only
through
HO
purchase officer.
Branch Head can do the
local procurements for local
trading,
repair
related
activities/minor parts.
In case of Asia Powercom,
Optima, Local purchase is
carried out by business
managers at HO.
Procurement
requirements
of service department are
handled by RMA purchase incharge who sits in HO at

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RDA DAMAGED
M
STOCK
RMA- STOCK is segregated
as per the batch type for
repair, buffer, Spare parts
and defective type.
In case sales stock is
maintained
in
different
places,
different
storage
locations will be created with
the addresses.
One
central
purchase
organization will be created
for
catering
to
the
procurement needs of all
plants.
Local purchase will have
individual
purchase
organisation plant wise.
Import purchases will be
done only through central
purchase organization i.e HO
and will have authorization.
Local and Imports will be
separated by purchase order
documents type.

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PROJECT ARJUN

Kolkata.

ZDO
ZDI
ZUB
ZS
E
ZO
T
ZA
S
ZC
O

LOCAL PURCHASE
IMPORT PURCHASE
STOCK TRANSFER
PURCHASE

SERVICE PURCHASE
OTHER PURCHASE
ASSET PURCHASE
CONSIGNMENT
PURCHASE

For each plant one local


purchase organization will
be created. (LIST WILL BE
PROVIDED BY SAVERA
PURCH. ORG. NAMING WILL
BE SAME AS PLANT)
To separate brand wise
purchase,
a
separate
purchase group will be
created for each brand. (LIST
WILL BE PROVIDED BY
SAVERA)

Purchase organization will be


as per the plant code .
SAVERA will provide the tax
used for purchase and it will
be mapped as tax codes.

Purchase Order Document


type
Code
DETAILS
ZNB

Local Purchase

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ZCB
ZIB
ZTB
ZUB
ZSE

CST Purchase
Import Purchase
Consignment Purchase
Stock Transfer
Service Purchase

General Information
Existing Business Process/
Requirements
Business of SAVERA is divided into
segments
like
personal
computers, Services etc. but
SAVERA expecting to further
divide
the
business
into
components,
peripherals,
consumables
&
networking
products to identify segment wise
business potential and growth.

SAP Fitment
All business segments will be mapped
as material types.
ZAWA
ZCAR
ZCON
ZERT
ZIEN
ZLAG
ZMOB
ZNBW
ZNET
ZPCD
ZPER
ZSOF
ZSPR
ZSYS

Trading Goods_Savera
CarePacks_Savera
Consumables_Savera
Assembled - Savera
Service-Savera
POP Material-Savera
Mobiles Savera
Gift Articals Savera
Networking Savera
Components_Savera
Peripherals Savera
Software Savera
Spare Parts
System Savera

Each segment contains different Different categories will be mapped


categories.
E.g.;
Bare
Bone,
as material groups.
Notebook and systems are various Material group (Max 9 digit char &
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Existing Business Process/


Requirements
categories
in
the
Personal
computer segment

SAP Fitment
description)
list
with
naming
convention will be provided by
SAVERA like
CB Cabinet & SMPS
CP CPU
(LIST OF MATERIAL GROUP AND
DESCRIPTION
WILL
BE
PROVIDED BY SAVERA)

The
categories
are
further All the brands will be mapped as
subdivided into different brands
purchasing groups.
like laptops are divided as IBM, Purchasing groups (three digit code
HP, & Asus.
& description) list with naming
convention will be provided by
SAVERA like
IBM IBM purchasing Group
HP
HP purchase Group
Each
brands
are
having
different products (model no),
The management information
system for SAVERA is build on
model, brand, category
&
segment wise.
SAVERA is expecting to classify
models in to series.
Periodically models become
obsolete & new models will be
introduced, SAVERA want track
history of old model with new
model.

Each model number will be


mapped as a material number.
While creating new material in
system user will enter a unique
number.
Series will be mapped as Basic
Material.
Series will be provided by SAVERA
max 48-digit char length. Like
X206
series(SERIES
WILL
BE
PROVIDED BY SAVERA)
Old material number field in
material master will be used to
track old material history. (LIST
WILL BE PROVIDED BY SAVERA)

Vendor material number is Each model no will be mapped as a


used
for
procurement
&
material no.
delivery.
While creating new material in
In some cases SAVERA part no.
system, user will enter a unique
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Existing Business Process/


SAP Fitment
Requirements
may differ from vendors part
no.
no, In such cases the purchase In few brands SAVERAs material
order is placed to vendors in
no is different than that of vendors
vendors part no only.
material
no
for
material
manufacturers part no is created &
used in purchase orders.(MATERIAL
CODE NO. WILL BE AS PER SAVERA
AND MANUFACTURER PART NO. AS
PER MANUFACTURER)
Materials are valued at Material will be valued at plant
different price at different
level.
plant levels. This is because With this functionality the same
the material stock transfer
material will be valued at different
takes place on branch
prices at different plants.
transfer price, which is Market price will be maintained in
updated on periodic basis.
system.
For valuation of material, FIFO valuation will be activated in
FIFO
or
market
price
material master.
(whichever is less used) is While creating material master one
expected by SAVERA
has to tick on LIFO/FIFO.
MR21 is being used in
combination of plant, material,
valuation type. NO FIFO is used.
SAVERA is handling servicing To valuate repaired & damaged
part also within a branch.
material at 1INR, Split valuation
The
same
material
is
will be activated for all the
valuated
with
different
materials
prices like fresh stock, (Required valuation type will be
repaired stock & damaged
given by SAVERA)
stock.
Materials like ink cartridges, To meet this, the minimum
toner cartridges, ribbons are
remaining shelf life & total shelf life
monitored for shelf life.
will be maintained in material
masters using batch management.
With this functionality at goods
receipt stage, date of production
has to be entered in the system.
(POP UP REQUIRED FOR MATERIAL
EXPIRY SHELF LIFE OR BUYING
FREEZING FOR MATERIAL
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Existing Business Process/


Requirements

Almost all materials require


serial no management for
warranty tracking.

Units of measure used are


Each
Meter
Liter
Box
Kilogram
Purchasing unit can be
different than that of base
unit of measure (Box=330
Meters)

SAP Fitment
AVAILABLE IN STOCK)
Serial no profile will be assigned to
material in master.
With this vendor warranty &
customer warranty of material is
tracked.
Vendor warranty will be entered
during goods receipt & customer
warranty will be entered while
delivery.

All units of measures are standard


& will be used as it is.
In case the base unit of measure
differs from purchase unit of
measure, the relevant conversion
factor will be maintained in
material master data.
In case of Wire and DVD, CD
procured in boxes and sales in
loose

Valuation Type
Valuation Type
1
2
AIMPORTED
ATAXABLE
ATAXPAID
C1
C2
C3
DTAXABLE
DTAXPAID
EIGEN
EIMPORTED
ETAXABLE
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Description
Reference for raw materials
Reference for raw materials
Consumable Imported
Consumable Local
Consumable Local
Reference for spare parts
Reference for spare parts
Reference for spare parts
Assembled Local
Assembled Local
Reference for raw materials
Pheripherials Imported
Pheripherials Local
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PROJECT ARJUN

ETAXPAID
FREMD
FTAXABLE
IMPORTED
KIMPORTED
KTAXABLE
KTAXPAID
LAND 1
LAND 2
LIMPORTED
MIMPORTED
MTAXABLE
MTAXPAID
NIMPORTED
NTAXABLE
NTAXPAID
OIMPORTED
OTAXABLE
OTAXPAID
PIMPORTED
PTAXABLE
PTAXPAID
RAKTION
RMA

Pheripherials Local
Reference for raw materials
Pharma Local
Reference for trading goods
Carepacks Imported
Carepacks Local
Carepacks Local
Reference for raw materials
Reference for raw materials
LED Lights Imported
Mobiles Imported
Mobiles Local
Mobiles Local
Newtworking Imported
Networking Local
Networking Local
Software Imported
Software Local
Software Local
Components imported
Components Local
Components Local
Reference for trading goods
RMA Material

RMA1
RMA2
RNORMAL
SIMPORTED
STAXABLE
STAXPAID
TAXABLE
TAXPAID

Reference for spare parts


Reference for spare parts
Reference for trading goods
Systems imported
Systems Local
Systems Local
Reference for trading goods
Reference for trading goods

Procurement planning from principal vendors


Existing Business Process/
Requirements
Procurement
is
Vendor
driven. Vendors fix annual
revenue
and
quarterly
targets for revenue.
Strictly Confidential
86 of 168

SAP Fitment

At start of every fiscal year,


procurement
value
from
each partner is finalized as
an agreement. This will be

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
Monthly stock statement
from branch office level is
collected & overall stock
statement is prepared at
HO.
Business
Managers
generate
monthly
requirement list based on
Product life cycle
Revenue targets for
quarter
Past historical data
Lead-time
for
procurement
Availability of stock at
branch level
New
Models
from
Vendor
Product
Catalogue
Based
on
Business
Managers
inputs
the
procurement
plan
is
finalized & sent to vendor

SAVERA
is
providing
information
of sales &
inventory to vendor in
vendor prescribed formats.
This information is sent to
vendor on weekly, monthly
basis.

SAP Fitment

Strictly Confidential
87 of 168

mapped as Value Contract or


Quantity contract based on
agreement with vendor, in
the system. In case of
weekly
procurements,
scheduling agreements will
be created in the system.
Based on this, quarterly &
monthly planning is done.
This is a purely rough cut
planning.
(Scheduling Agreement with
up and down QTY option.)
Provision
for
manual
creation of purchase request
& purchase order will be
provided only in case of local
purchase.
It is suggested that 4 value
contracts are entered in SAP
with
reference
to
the
principal vendors. This will
help
relate
the
PO
referencing with respective
Quarterly agreement.
This
will help in comparison
(Target Vs Actual).
(Contract tracking should be
on QTY & Value.)
To differentiate between the
Purchase orders (Domestic &
Imports) different document
types will be used (Like ZNB
for domestic purchases and
ZIB for import purchases)
For
the
reporting
requirement of vendor in
vendor defined format ABAP
reports will have to be
developed.
Details
are
addressed
for
specific

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment
requirements
separately
under Reports.(Should have
flexibility i.e it should have
option of multiple selection Classification of Items using
ABC)

Procurement planning from local vendors


Existing Business Process/
Requirements
Vendor
selection
for
local
procurement is done as follows
For high value items RFQ is
sent to different vendors
and quotations are collected
Price negotiation is done
with vendor.
Based on best price &
delivery time, vendor is
selected for procurement

SAP Fitment

Reorder level procurement


planning is followed.
Maximum
&
minimum
inventory levels are defined
for material
As material reaches min
inventory level, purchase
request is created at Daman
& RMA.

Strictly Confidential
88 of 168

For procurement of new /


existing material, a source
list will be maintained in the
system.
Request for quotations will
be
created
in
system
manually for a material
vendor combination in a SAP
standard layout.
The quotations sent by
vendors will be manually
entered in the system.
Quotation comparison will
be done by the system &
vendor ranking will be
provided by the system,
based on vendor quotations
entered.
Reorder
level
will
be
maintained in the material
master for RMA & Assembly
unit material.
Provision
for
manual
creation of purchase request
& purchase order will be
provided.
Purchase request will be

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment

triggered by the system


when material stock reaches
minimum inventory level
during MRP Run by MRP
Controller.
These purchase requests will
be further converted into
purchase orders.

Purchase order processing


Existing Business Process/
Requirements

Purchase order is prepared on


time-to-time
basis.
These
purchase orders require either
two/three-stage
release
depending on the purchase
order value.

Local purchases at Branch


level value up to 100000 INR
can be authorized by Branch
Head. Values above that will
be authorized by Directors

In case of Central and Central


Ware House any PO less than
10000 INR, RMA Head is the
approving authority. Above
10000 INR requires approval
from Purchase Officer, HO,
SAVERA.
Any order above 100000 INR
will be approved by Director
In case of IBM, SAVERA
purchase order is
communicated either by mail
or fax.

In purchase order itself


delivery address of branch is
maintained.
It is requirement of SAVERA,
the other expenses like,
custom clearing charges,

Strictly Confidential
89 of 168

SAP Fitment

Purchase orders created in


the system will be subjected
to approval process (release
procedure).(FOR
SCHEME
GIVEN BY VEDORS I.E. FOC
GOODS.
DOCUMENT TYPE LOCAL
SCHEME & NON-SCHEME
LOCAL)SCHEME
DETAILS
WILL GIVEN BY SAVERA.
Purchase
organization
&
purchase order value will be
mapped as characteristics
value for release procedure.
Separate
purchase
organization will be created
to control procurements.
For purchases of more than
500000 INR through any
purchase
organization
directors approval will be
provided.
For local purchase through
local organizations, up to
500000
INR
approvals
authority will be Branch
head.

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
forwarding agent charges
should
not
appear
in
purchase order print.

SAP Fitment

(RELEASING STRATEGY WILL


BE
PLANT
WISE
AND
DOCUMENT WISE WHICH
WILL BE GIVEN BY SAVERA.
AFTER
EDITING
THE
RELEASED
PO
THE
RELEASING
AUTHORITY
WILL BE TO NEXT HIGHER
LEVEL).
For
ZSE SERVICE PURCHASE

Strictly Confidential
90 of 168

Different Release code and


release group will be created
for
local
procurement
through RMA
Head office
purchase organization, up to
>=0 approval authority will
be branch head. For more
than >=0 the approval
authority will be purchase
officer.(DIFFERENT RELEASE
STRATEGY TO MAINTAIN)
Other expenses will be
mapped as condition types.
Printing of condition types
will
be
avoided
by
configuration setting.
The
released
purchase
orders will be printed in SAP
standard purchase order
format,
which
will
be
provided by SAVERA.
Hard copy of purchase order
will be communicated to
vendor by different ways,
which will be outside SAP
System.
The release procedure is
subject to finalization of
Roles and responsibilities for
defining
authorization

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment
profiles

In
case
of
HP
business
purchase orders are being
booked though Web.

IN CASE OF CANON ALL


PURCHASE ORDER SHOULD
UPLOAD DIRECTLY TO ITS
WEBSITE
Interface with SAP is not
within the scope.
The order number generated
in CANON system will be
entered in SAP purchase
order. Hard copy of SAP
purchase order will be
maintained for reference.
(CANON PR .NO. CAN BE PUT
IN YOUR REFERENCE IN
HEADER DATA UNDER
COMMUNICATION IN PO.)

Releasing Strategy
Location (Plant)
DELHI
DEHRADUN
LUCKNOW
JAIPUR
LUDHIANA
GURGAON
CHANDIGARH
CORPORATE OFFICE
CENTRAL WAREHOUSE
KOLKATA
GANESH CHANDRA
AVENUE
CHANDNI CHOWK
HOWRAH
SAMSUNG SES
SAMSUNG RDS
HOWRAH

Strictly Confidential
91 of 168

Users
Branch Head
Branch Head
Branch Head
Branch Head
Branch Head
Branch Head
Branch Head
CO Accounts
Branch Head
Branch Head
Branch
Head
Branch
Head
Branch
Head
Branch
Head
Branch
Head

Limitation Rights
100,000.00Local PO
100,000.00Local PO
100,000.00Local PO
100,000.00Local PO
100,000.00Local PO
100,000.00Local PO
100,000.00Local PO
5,000,000.00Complete
100,000.00Local PO
1,000,000.00Local PO
100,000.0
Local PO
0
100,000.0
Local PO
0
100,000.0
Local PO
0
200,000.0
Local PO
0
500,000.0
Local PO
0

Next Level
COACCOUNTS
COACCOUNTS
COACCOUNTS
COACCOUNTS
COACCOUNTS
COACCOUNTS
COACCOUNTS
Director
COACCOUNTS
COACCOUNTS
COACCOUN
TS
COACCOUN
TS
COACCOUN
TS
COACCOUN
TS
COACCOUN
TS

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

GUWAHATI
PATNA
RANCHI
BHUBANESWAR
RAIPUR
INDORE

Branch
Head
Branch
Head
Branch
Head
Branch
Head
Branch
Head
Branch
Head

100,000.0
0
100,000.0
0
1,000,000.
00
100,000.0
0
100,000.0
0
100,000.0
0

Local PO
Local PO
Local PO
Local PO
Local PO
Local PO

COACCOUN
TS
COACCOUN
TS
COACCOUN
TS
COACCOUN
TS
COACCOUN
TS
COACCOUN
TS

Goods receipt against purchase order


Existing Business Process/
Requirements
Material loaded at port is
informed to SAVERA by
notifications;
this
notification is sent by the
forwarding agent

Vendor
before
delivery
sends final invoice. This
invoice is not booked into

Strictly Confidential
92 of 168

SAP Fitment

The notification sent by


Principal
vendor
or
forwarding agent will be
entered as Inbound Delivery
in SAP. This updates in Stock
/ requirements list, which
will be further used for
analysis of stock in transit
from vendor to SAVERA.
System
will
consider
inbound delivery as stock in
transit
from
vendor
to
SAVERA & purchase request
will not be generated during
MRP Run.
This functionality will be
used where lead-time for
procurement is more (Import
purchase).
Inbound
delivery
details
are
captured in Purchase Order item
details confirmation tab.

The invoice sent by vendor


will not be posted in to
system, but used for custom

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
accounts, as the material
requires customs clearance.

The
delivery
can
be
Mumbai / Chennai port,
based on availability of
vessel.

SAP Fitment

If vendor sends more or less


quantity, SAVERA accepts
the goods. (No tolerance is
maintained for delivery) only
because all legal documents
are
completed.
Logical
entries
are
passed
&
subsequent settlements are
done with vendors.

Short delivery:- In some


cases vendor supplies less
quantity than that
of
purchase
order.
Such
purchase
orders
are
amended manually.

Strictly Confidential
93 of 168

clearance.
Vendor
invoice
will
be
booked after physical receipt
of goods.
In such cases material will
be logically received at
plants where it is actually
landed & stock transfer will
be done with branch transfer
price.
In
case
physical
stock
transfer
of
material
is
required, the cost occurred
for transport will be booked
as subsequent debit memo.
Goods receipt will be carried
out as per legal document.
Tolerance for goods receipt
will not be defined. Any
fluctuation
during
goods
receipt against purchase
order will be accepted by the
system.
(For
variance
manual entry need to be
passed)
For purchase order of 10 qty
if 8 qty is received with legal
documents for 8 qty- GR will
be carried out for 8 qty.
Purchase order history will
show 2 Qty as open order
quantity. List of such open
purchase order will
be
available
&
by
setting
delivery completion indicator
will close all such orders.
(This needs to be done
manually & this can be done
in mass by using MASS
transaction of SAP)

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
Shortage
in
Delivery:-In
some
cases
quantity
supplied by vendor & actual
receipt quantity are not
equal for such shortage
delivery SAVERA claims for
Insurance after verification
by the assessor.

SAP Fitment

Wrong Supply:-In some case


ordered
model
no
&
received model no may
differ. As custom duty & all
legal
documents
are
completed SAVERA inwards
material as per purchase
order
model
no
&
adjustments are done later.
If the value of material
supplied is varying by 5000
INR, no insurance claim will
be preferred
Excess quantity received is
sometimes. This needs to be
taken into stock account at
Zero cost

Bar codes are scanned by


barcode scanner & serial no
are entered in GRN. If any

Strictly Confidential
94 of 168

For purchase order of 10 qty,


if 8 qty received, with legal
documents for 10 qty, GR
will be carried out for 10Qty
and Difference of short 2 qty
will be posted as vendor
return as Purchase Return
against Vendor claim or
Sales Order for claims from
third party . Third party
claim Sales Order and Billing
will be used.( Document
Type ZBOR)
Wrongly supplied material
will be received as per legal
documents & information
will be provided to vendor
and the received goods will
be taken into GR only after
amending purchase order.
After consulting with the
vendor material can be
taken
into
appropriate
stocks in SAP.
The excess quantity supplied
by vendor will be entered as
other goods receipt with
reference
to
separate
purchase order. In case of
wrong supply if supplied
material is not useful for
SAVERA, provision to send
back material to vendor will
be
provided.
Separate
valuation type is to be
added for wrongly supplied
stock. G/L code has to be
provided.
Serial no profile will be
attached to a material no.
During goods receipt, serial

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
damages are found on barcoded area, the serial no is
then entered manually.
In case of motherboard
serial no length is more than
25 characteristics.

SAP Fitment
no field will be optional, but
incase of delivery serial no
field will be obligatory.
Serial no. for a specific
products are mandatory
LIST WILL BE PROVIDED BY
SAVERA
Note: - By making serial no field
optional, vendor warranty data will
not be maintained in serial no
history.
Integration of barcode
scanner with SAP System.
( TO CHECK)
In case of mass receipt
provision of entering serial
no range during goods
receipt & goods issue.
Maximum field length for
serial no in STD SAP is 18
Characteristics.
It is informed that 18
Characters will be only
utilized

Stock transfer from central warehouse to branches


Existing Business Process/
Requirements
In SAVERA business, each
branch is considered as a
profit center. The branch
head is responsible for all
activities in the branch.
SAVERA sells material to all
Strictly Confidential
95 of 168

SAP Fitment

Profit center details will be


addressed in CO module.
Each Branch will be mapped
as Customer/Vendor to one
another in SAP
Material valuation will be

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
branches at branch transfer
price & it is branch heads
responsibility to sell further
into the market.
Following are the cases when
stock transfer is carried out
Normal stock transfer: - This
stock transfer is carried out
between central warehouse
& branch warehouse. This
stock transfer is carried out
at branch transfer price. The
branch transfer price is
subjected
to
frequent
changes.
Branch
head
creates orders goods to
warehouse.
Shortage stock transfer:Stock transfer is carried out
through
inter
branch
warehouse
in
case
of
shortfall of material. This
stock transfer may be as per
BT or may be other than BT.
this will be the decision of
branch head & business
manager. Business Manager
does the quantity allocation.
Business Manager is final
authority for these delivery
orders.
Specific reservations: - Stock
at central warehouse is
reserved by branches & DO
is carried out with final
approval
from
Business
Manager.

At the beginning of the day


the stock available is x at

Strictly Confidential
96 of 168

SAP Fitment

done at plant level.


Purchase order document
type RBT will be used for
stock
transfer
orders.
(Mapping Customer Vendor
Details will be given by
Savera)
Material will be issued to
sales order with serial no.
Billing document will be
generated with reference to
outbound
delivery
document. (Details will be
addressed in SD module)

STOCK TRANSFER PURCHASE


ORDER SHOULD BE WITH
REFERNCE TO SALES ORDER OF
A PARTICUALAR PLANT (REPORT
ZBRTRANSIT, ZMB01)

For
approval
of
stock
transfer order, static values

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
Central WH. If any branch
sends a request for more
than 50% of X then the
stock should not be issued
unless approved by the
Business Manager
The information of stock in
central to other branches
should be in the form of Yes/
NO

SAP Fitment

are required.
Stock availability of material
in warehouse is available on
real time basis. Decision to
issue stock or not has to be
taken manually.
Customized report will be
developed for the branches,
for stock availability at
central warehouse. (which
Report to develop?)

Consignment procurement
Existing Business Process/
Requirements
Consignment procurement is
carried out from particular
vendors (Abakers). Material
is procured on consignment
basis to get benefit of sales
tax.
However,
vendor
payment is done at the
procurement stage only. The
stock is transferred to own
stock.
At
the
yearend
consignment purchase entry
is reversed & fresh entry is
done
for
available
consignment stock.
Consignment purchases are
also subjected to approval
process similar to normal
purchases.

SAP Fitment

Strictly Confidential
97 of 168

Purchase Order will be


created with Dummy Vendor
(Consignment) for required
document
type.
Spilt
valuation type consignment
will be selected manually in
Purchase
Order.
(Actual
Vendor number and Name
will be typed in Purchase
Order header Text.)
Separate Valuation type for
Consignment Purchase will
be created for required
material types. Separate
Valuation class and G/L
accounts will be created.
MIRO will be booked against
Dummy
Vendor
(Consignment Vendor) and
in Header
Reference or
Header Text actual Vendor
number/name
will
be
entered.
Manual J/V to be pass from

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment

consignment Vendor to A/P


vendor for the required
amount.
For
Sales
BillingEnhancement is required to
bifurcate
valuation
in
invoices for Sales against
consignment and Tax Invoice
separately in output.

GAP: Inventory Valuation Type wise split invoice should be configured.


External service procurement
Existing Business Process/
Requirements
SAVERA is providing third
party services to customers.
(Like network cabling) Such
services are carried out for
local contract people. Local
contract
agency
bills
SAVERA & SAVERA in turn
Bills the customer.

Strictly Confidential
98 of 168

SAP Fitment

Purchase order document


type
(normal document
type) will be used for
creating service purchase
orders.
The service vendor will be
either material supplying
vendors or only service
providing vendors, which will
be maintained in vendor
master data.
Against
such
purchase
orders physical material will
be received in Service
Valuation type.(RMA, RMA1
& RMA2)
Material will be included in
purchase orders and the
same will be procured at
actual Vendor invoice price.
Service purchase order will
normally include
Vendor
Organizational data

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment
Plant
(which
is
hiring
service)
Cost center or G/L account

MIGO will be done.


To be discuss Later on as per
Mukeshbhai.

Procurement of other than stock material


Existing Business Process/
Requirements

SAVERA
purchases
other
materials like gifts, Printed
papers,
sales
promotion
items.
This
material
procurement
is
done
for
particular cost center.

SAP Fitment

The less value materials like


posters, banners & other
material used for sales
promotion will fall under this
category.
If SAVERA need to track
stock of such sale promotion
material, by using standard
material type (ZNBW) NonValuated
&
normal
procurement process will be
followed.
This value will be booked as
cost in cost centers

Third party procurement


Existing Business Process/
Requirements

SAP Fitment

In third party procurement


purchase order is placed by
SAVERA.
SAVERA
is
responsible
for
vendor
payment also, but delivery is
done
to
customers
place
without receiving to central

Strictly Confidential
99 of 168

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment

warehouse of SAVERA.

High sea procurement


Existing Business Process/
Requirements

In certain cases SAVERA is not


the
direct
distributor
of
principle partners. In such
cases High Sea Procurements
are made.
In high sea procurement,
order is placed by the Indian
Authorized dealer/ another
Vendor with the principles.
Later a deal is entered into
between SAVERA and the
Indian Dealer/Importer. The
procurement is similar to
import procurements but the
deal will be in INR & custom
duties will be paid by SAVERA.
Material cost is booked
against local vendors.

SAP Fitment

The importer will be mapped


as Import vendor of SAVERA.
Purchase
order
will
be
placed on vendor in INR.
Only material cost will be
booked against vendor.
SAVERA will pay custom duty
& CFA charges by booking
invoice.

Inventory Management
Existing Business Process/
Requirements
Physical
inventory
is
checked once in 15 days.
Cartons
are
counted
manually.
Sampling counting is not
used.
All
material
is
physically counted.
For
posting
inventory
difference no tolerances are
given but branch heads
approval is required.
Strictly Confidential
100 of 168

SAP Fitment

Physical inventory document


will be created in system
twice in a month.
In this document list of
material no and which stock
type will be entered for
physical
verification
of
stocks.
After physical verification
process, stock data will be
entered in the system as

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

Goods receipt in warehouse


against
purchase
order,
stock transfer order, goods
return from Marcom &
customer return.

Goods issue from warehouse


against sales order, Marcom,

Strictly Confidential
101 of 168

SAP Fitment
Inventory count.
In case of difference in
actual stock & physical stock
difference will be posted in
system with a reason code
or
can
reinitiate
for
recounting.
A material document &
accounting document will be
generated internally by the
system if there is any
difference in actual and
Book values.
GAP Purchasing Group is
required for Cycle counting.
Tcode MIBC & MICN
Material issue / receipt will
be carried out with serial no.
The serial no field will be
activated
mandatory
for
required goods movement
only and not for all material.
Goods receipt in warehouse
for import purchase order
will be with reference to
inbound delivery.
In case of local purchases
goods receipt will with
reference
to
purchase
orders.
Incase of stock transfer
purchase
order
goods
receipt will carry out against
outbound
delivery.(Stock
transfer will be as per
ZMB01)
Goods return from Marcom &
Customer return are defined
in SD Module
Goods issue from Marcom &
Customer
return
is

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
Stock transfer order.

SAP Fitment

C Class materials like cable,


which are in meters not in
box, are not checked.
SAVERA is not handling any
returnable
packaging
material.
Material
like
Desktop
containing MOUSE & KEY
BOARD. As & when required
the desktop is separated
into two parts & sold out.
Similarly for sales promotion
two materials are clubbed
together. The free of cost
material is billed at one
rupee (99+1=100) but for
internal accounting purpose
it may be (60+40)

Material

Strictly Confidential
102 of 168

lying

in

addressed
in
SD
Module(This
is
paid
extended
service
or
warranty or software.)
Normal Purchase Procedure
is followed i.e. Creation of
Purchase Order with normal
Purchase document type.
Separate Material code is
maintained
under
Sales
Material type.
MIGO and MIRO.
Stock
is
maintain
i.e.
inventory
C class items can be
selected
for
physical
inventory document.

Material like desktop will be


consumed
against
Production order & two
materials say key board &
mouse will be returned from
the order at respective MAP
price.
(Material
like
keyboard, mouse need to be
created as separate code
and while creating material
master MAP needed to be
entered or MAP can be reentered in Tcode MR21.)
The above segregated items
will sold respectively by SD
module.
Inventory
of
both
the
material will be maintained
separately.

storage

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
location for more than 30
days is declared as nonmoving material & it is
moved to RMA department.
The RMA department selects
the material, which can be
used for service activities.
For the remaining scrap list
is generated. Approval is
taken from HO for scrapping
the material as per scrap list

SAP Fitment

Pricing procedure
Existing Pricing Process for import material

30

Descripti
on
Basic
Price
Insuranc
e
Freight

40

CIF

50

Additiona 1
l
Total

2287.52

10+20
+30
40

2230840

40+50

Counter
Value
Duty
Educatio
n Tax on
CVD

1
6

356934.30

60

7138.70

70

10
20

60
70
80

Strictly Confidential
103 of 168

% $
495
00

Ex.
Rate
44.1
5

INR

Remark

2185425
1854
21473
(21052.01+421
.04)#
2208752

Booked
On
Vendor
Insuranc
e Agency
Forwardi
ng Agent

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

90

SUM

2594913

10
0
11
0

Additiona 4
l
Total
Duty

103796.5

60+70
+80
90

467870

70+80
+90

GOVT

# Ocean Freight:-21052.01+CC Fees:-421.04=21052.01INR


Forwarding Agent Invoice:Total Freight:-2105.01INR
DO Fee:-1500.00 (Manually for each delivery)
Service tax:- 10% on CC fees & DO fees
Education tax:-2% on service tax
Total:-23169.00 INR
Clearing Agent Invoice:Actual Expences:-18335.50 INR
Agency Charges:-3000 INR (Manually)
Service Tax: -10.20% on agency charges: -306.00INR
Total: -30306.00 INR
DEPB (Duty Entitlement Pass Book): SAVERA Procures DEPB licenses from the exporters at 98% & Duty is paid to government
deducting DEPB.

Existing Business Process/


Requirements
Import procurement

SAP Fitment

Strictly Confidential
104 of 168

Cost, insurance, freight etc.


will be mapped as condition
types in procurements.
Custom duty, forwarding &
clearing charges will be also
mapped as condition type.
Custom clearing, forwarding
& insurance agents will be
mapped as vendors.
Vendors will be assigned to
respective condition type in
purchase order.
All the cost maintained in
these conditions types will
be booked as material cost
during goods receipt.
Clearing
&
forwarding

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

External Service
procurement
Service charges: Service tax: CESS on service tax: -

SAP Fitment

Local
a.
b.
c.
d.
e.
f.
g.

purchase
List price
Discounts
Taxes
Freight
Inco terms
Delivery address
Payment terms

EX
FOB
CIF
C&I
C&F

EX WORKS
FREE ON BOARD
COST INSURANCE FREIGHT
COST & INSURANCE
COST & FREIGHT

R001
R002
R003
R004
R005

agents liabilities will be


booked
by
invoice
verification
as
planned
delivery costs.
Service charges will be
mapped as condition type
Service tax will be mapped
as tax code
CESS service tax will be
mapped as tax code.
If services are hired with
material the purchase order
will prepared for the same
Service
Inco terms & payment terms
will be mapped as inco
terms & payment terms.
Following inco terms will be
created

Following payment terms


will be created
ADVANCE PAYMENT
CASH PAYMENT
WITH IN 7 DAYS
WITH IN 14 DAYS
WITH IN 45 DAYS
(LIST TO BE PROVIDED BY
SAVERA)

Note: Separate payment term


types will be created for A/R and
A/P.
Freight & discount will be
mapped as condition type.
In import purchase cost of
It is possible to enter 1 INR

Strictly Confidential
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SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
goods
is
known
while
creating purchase orders,
but other expenses like
custom
&
forwarding
charges are not known
(subjected to changes)
SAVERA dont want to enter
all other expenses while
creating purchase order.

SAP Fitment
as
other
expenses
in
condition type while creating
purchase
orders
&
subsequent
invoices
of
expenses can be booked as
& when received.

Recommendation: To get near to realistic P&L at each PC level it is


recommended that tentative expenses are listed in the PO. Differences
between actual and estimates can be adjusted through subsequent
Debit/Credit notes

Invoice verification
Existing Business Process/
Requirements
Invoice sent by vendor is
booked with reference to
delivery note for material
cost.

SAP Fitment

Strictly Confidential
106 of 168

Invoice
will
be booked
against purchase order or
Delivery note.
After
entering
purchase
order / Delivery note system
fetches default data from
purchase order.
Upper limit & lower limit
tolerance will be set in
system. Through this system
will compare the invoice
booked & purchase order
value & issue information, or
warning massages
The default data will be
saved as it is or required
changes if any can be done.
After posting invoice vendor
liability will be generated in
the system.

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
If any price variation in
invoice & purchase order
price is observed, vendor
invoice is booked as it is &
subsequent credit & debit is
done after discussion.

SAP Fitment

Exchange rates are updated


in system once in a month

Incase of import purchase


invoice is booked separately
for
Vendor for material cost.
Insurance
agent
for
insurance
Forwarding agent for freight
Custom
duty
for
government.

o
o
o
o

Subsequent credit & debit


will be booked against
vendor
as
per
actual
variance in actual & booked
cost.
After subsequent credit &
debit system will internally
update the material cost in
inventory account.
Effect of exchange rate
difference will be addressed
in FICO
In case of import purchase
custom duty, clearing &
forwarding agent charges
are considered as material
cost only. In the purchase
order condition type values
for custom duty, clearing &
forwarding charges will be
entered. While goods receipt
purchase order value will be
booked as material cost.
Custom duty forwarding &
clearing charges will be
booked as planned delivery
cost & liability will be
generated for clearing &
forwarding agents.
If any variance in booked
invoice & actual invoice the
same will be booked through
subsequent credit & debit

Vendor functions
Existing Business Process/
Requirements
The procurement is done
from more than 50 vendors,
Strictly Confidential
107 of 168

SAP Fitment

All vendor will be classified


broadly as

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

all over the globe.

Import vendor
Local vendor
Service vendor
Employee Vendor (Branch
wise)
(Vendor group code and
numbering will be given by
SAVERA)

Reporting Requirements
Existing Business Process/
Requirements
Monthly purchases category,
brand & product wise

Stock availability of material


in all branches which is
available for sales
Stock availability of material
in all plant products wise,
category wise, and brand
wise & segment wise.
Open purchase order

Stock in transit from vendor


to SAVERA
Stock available in central
warehouse.
Stock in transit from central
warehouse to branch
Stock available at branch
warehouse

Strictly Confidential
108 of 168

SAP Fitment

SAP standard report will give


purchase values for given
period of time for (MC$G)
Material No (Model)
Material group (Category)
Purchase group (Brand)
SAP Standard report will give
availability of material at all
plants in sales stock (MMBE)
ZSTOCK
SAP Standard report will give
availability of material at all
plant of sales stock (MB52)
ZSTOCK
SAP Standard report for
Open purchase orders for
given period of time (ME2M,
ME2W, ME2L ME2C)
SAP Standard report goods
receipt forecast (ME2V)
Standards SAP report (MB52)
ZSTOCK
SAP Standard report for
stock in transit (MB5B)
ZBRTRANSIT
SAP Standard report (MB52)
ZMB52

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
Information in above seven
rows in one sheet.
Import purchase register
Material ageing report

SAP Fitment

ABAP development required

ABAP development required


SAP Standard non-moving
stock report for given period.
(MC50)
Has been addressed in FI
Has been addressed in FI

Payment due list for vendors


Sales tax payable through
GL account
Purchase value trend by
material & vendor.

Reports required as per


vendor defined format

SAP Standard report will be


utilized with purchase order
& price in purchase order.
Stock in & stock out data for
a given period of time. SAP
standard report MB5B will
give this information
For vendor defined format
ABAP development required

Gaps:
o Import Purchase Register is not a standard functionality
provided by SAP. Needs to be addressed through Development
o For vendor defined format ABAP development required
.
Vendor Claims
Existing Business Process/
Requirements
Price protection: - vendor
will pay back price drop of
material for available stock
(100% for 15 days old stock
& 50% for 30 days old stock)
day count starts from date
of invoice

SAP Fitment

Strictly Confidential
109 of 168

Customized programs will be


developed.
Inputs for claim calculations
will be price drop, date of
price drop, % of price drop
for stock life.
After running this report user
will get value of claim.
This claim value is posted

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment

Cost of free sold goods: - For


sales
promotion
vendor
agree to give cost of free
goods
delivered
to
customer.

Program Claims: - Vendor


declare program, if min 10
are pieces sold out within a
week, 100 INR will be the
discount
on
each
sold
product.

Strictly Confidential
110 of 168

manually as sub sequent


debit
to
vendor
with
reference to purchase order.
System will internally
update inventory value in
books
To run report TcodeZSTOCKAGE
Here addition of value
calculation is to be
done(Last purchase-Revised
price given by
Vendor=difference value)
Customized programs will be
developed.
Inputs for the claim will be
main item & free good,
period for claim, selling price
of free goods.
These claim values is posted
manually as sub sequent
debit
to
vendor
with
reference to purchase order
or with out reference to
purchase order.
System
will
internally
update inventory value in
books.
System will not update
books value if claims posted
without
reference
to
purchase order.
Customized programs will be
developed.
Inputs for claim calculations
will be discount on each sold
product,
min
sale
out
quantity, program period.
After running this report user

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

SAP Fitment

Special
price
clearance
(Back to Back Bid): - In case
of back to back bid material
is not available in SAVERA
storage location, Separate
purchase order is placed at
discount price & also sold at
same price. In such case
customer is only benefited.
But such purchase are not
considered
for
quarterly
targets
Special
price
clearance
(Disti Bid): - In this case,
stock available in SAVERA
storage location. The bid is
discussed with vendor, after
approval
from
vendor,
material is sold at lower
price & difference is claimed
to vendor.

Points schemes: - Vendor


give points wise discount for
a specific material & time
period
Quarter target achievement
claim

Strictly Confidential
111 of 168

will get value of claim.


This claim value is posted
manually as sub sequent
debit
to
vendor
with
reference to purchase order.
System
will
internally
update inventory value in
books.
The back to back bid
purchase order will not be
created with reference to
quarter target value contact.
In this bid no claim goes to
vendor.

Customized programs will be


developed.
Inputs for claim calculations
will be price drop, order
quantity.
After running this report user
will get value of claim.
This claim value is posted
manually as sub sequent
debit
to
vendor
with
reference to purchase order.
System
will
internally
update inventory value in
books
Customized programs will be
developed.
Customized programs will be
developed.

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Gaps: Schemes, Claims, Special Price clearance are not SAP standard
functionality and have to be addressed through development

Strictly Confidential
112 of 168

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Quality Management
Quality Activity at branch level (Distribution Business)
Existing Business Process/
Requirements
For trading materials no
goods receipt inspection is
carried out, as material is
procured in huge lot size.
Whenever
complaint
is
received from the market,
the stock available in the
warehouse is blocked for
sale.
After
that
100%
inspection is carried out for
the material to release the
block for sale.

Savera
is
providing
materials
for
marketing
activities called as Marcom
activities. The material is
issued
to
different
customers
as
Demo
material. Whenever such
material is received back,
receipt inspection is carried
out for material on 100%
basis. This inspection is to
ensure that the returned
product is not damaged
physically & is performing
upto the mark.

SAP Fitment

Sales return material is also

Strictly Confidential
113 of 168

Material
is
issued
to
Markcom
activity
by
consignment sales in SD.
The materials, which are
sold for Marcom basis, are
activated
for
customer
return inspection. Inspection
type: -6
Goods return of sale is
carried out with reference to
SD document.
After goods receipt system
internally
generates
an
inspection lot & with usage
decision,
posting
takes
places in unrestricted use
stock or return to customer
in case of physical damage
or poor performance.
NOTE: FEED BACK WILL BE
GIVEN BY SAVERA
Material in branches is

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
inspected on 100% before
putting it into sales stock. In
some
cases
customer
returns the material back to
Savera because it is not
meeting its specifications.

SAP Fitment

activated for inspection for


customer return. Inspection
type:-6
Goods return is carried out
with
reference
to
SD
document.
After goods receipt system
internally
generates
an
inspection lot & with usage
decision,
posting
takes
places in unrestricted use
stock or return back to
customer in case physical
damage
or
poor
performance.

Quality Management in RMA branches / RMA HO


Existing Business Process/
Requirements
Whenever
material
is
received for repair (within
warranty / Out of warranty)
goods inspection is done for
physical damage, warranty
seal tampering if found ok
then the material is given
for service processing. This
is
a
pre-check
before
starting servicing activities.
If some physical damage or
tampering of warranty seal
is
observed
it
is
communicated to customer
& billing is confirmed.
After completion of service
activities,
the
serviced
material is inspected for
predefined
parameters
before sending it back to
Strictly Confidential
114 of 168

SAP Fitment

Inspection
for
Physical
damage & tampering of
warranty
seal
is
done
outside the SAP system. This
activity is done before
entering the goods receipt
into the system.
Separate inspection plan will
be created for inspection
after service activities.
For
service
order
type
default inspection type will
be assigned.
At the release of each
service order, the system
generates inspection lot &
with usage decision material
can be posted into buffer
stock, or can be scrapped if
it is not meeting the

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
customer.
In
this
case
decision of sending the
repaired
material
to
customer or scrapping is
taken.
For a few materials SAVERA
is not authorized to do
servicing activities. Such
materials are sent to the
authorized service partners
for servicing. Goods receipt
from
authorized
service
partners after servicing is
done after checking 100%
before sending it to RMA
buffer stock or to customer.

SAP Fitment
specifications.

The material for which


SAVERA is not the authorized
service
partner,
such
materials will be sent to
authorized service partners
(vendors)
Material will be send to
vendors against purchase
order.
Receipt
inspection
for
external processing material
will be activated for such
materials.
Material receipt from vendor
will trigger an inspection lot
& during usage decision
material can be posted into
buffer stock or sent back to
vendor in case of poor
performance.
The transaction will be run
thru
ZCS1
for
further
processing i.e third party
transfer etc. & ZCSR1 for
report

Reporting Requirements
Existing Business Process/
Requirements
Inward material test report

Strictly Confidential
115 of 168

SAP Fitment

Standard
SAP
Script
available, but if standard
script does not fulfill the
requirements, development

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Stored material issue slip


Inspection report

Packaging list report


Machine test report

is required for script.


LIST OF REPORTS REQUIRED
WILL BE GIVEN BY SAVERA
Development required
Standard
SAP
Script
available, but if standard
script
not
fulfill
the
requirements development
is required for script.
Development required
Standard
SAP
Script
available, but if standard
script
not
fulfill
the
requirements development
is required for script.

Gaps: Stored Material Issue slip and Packaging list reports are not
standard and need development. For other reports development will be
needed if the standard report is not acceptable
LIST OF REPORTS REQUIRED WILL BE GIVEN BY SAVERA

Strictly Confidential
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SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Sales & Distribution:


In the SAP R/3 System we can use several structures to represent the legal
and organizational structure of our company. We can structure from the
point of view of accounting, materials management, and sales and
distribution. It is possible to combine these structures. The organizational
structures form a framework in which all business transactions can be
processed.
Sales Organization
The sales organization represents the external marketing structure within
SD. It represents a selling unit in the legal sense being responsible, for
example, for product liability and other recourse claims made by
customers. Regional subdividing of the market can also be carried out with
the help of sales organizations. Each business transaction is processed
within a sales organization.
Existing Business Process/
Requirements

Sap Fitment

Savera Marketing Agency Pvt. SAVERA will have one sales


Ltd. (SAVERA) is having 40 organization with same naming
branch offices and sub branches convention like company code
under the few of the branch
offices at different locations to Countr Company Sales
meet the business requirements.
y
code
organization
An assembly unit is located at
IN
SAVERA
SAVERA
Daman. All branch offices and
Daman are controlled by Mumbai
office (HO).

Distribution Channel
A distribution channel is the channel you sell through e.g. Wholesalers,
Factory sales and Retail channel. You can have different pricing
agreements, conditions, etc. for the materials sold through different
distribution channels.

Strictly Confidential
117 of 168

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements

Sap Fitment

SAVERA sells its product to endusers either through Resellers/


Channel partners or directly to
end customers.
Even HO is also involved in selling
directly
to
its
employees,
Government, Corporate.

Three distribution channels will be


created, to distinguish between
Sales generated through Resellers,
OEMs and direct sale (End User
Sale).
01 Reseller Sale (Channel
Partners)
02-Direct Sales (End Users)
and
03 -OEM.

SAVERA distributes its products


through Channel Partners, OEMs
(Original Equipment
Manufacturers) and end users.
A. Channel Partners: Major
chunk of business comes from the
channel partners. Channel
partners include
1. ASP (Authorized Savera
Partners)
2. SSI (Savera System
Integrators)
3. SRP (Savera Retail Partners)
and
4. Corporate Resellers (HP and
IBM)
1.ARPs are into the business of
one or combination of following
Brands/ Principals:
a) SAP (Sony Authorized Partners).
b) SAR (Sony Authorized Reseller).
c) LORDS (Logitech Registered
Dealers).
d) ASRP: ASUS Royal Partners.
e) VAR: Value added Reseller.
f) Other ARPs.
2. RSI: There are no subdivision
in RSI
3.RRPs: are further sub divided
into
Strictly Confidential
118 of 168

The sales organization SAVERA will


cater materials & services to
customers using all the three
distribution channels.
Following business partners will be
mapped for Customer group in
Customer Master for reporting
purpose.
Custom
er
Group
AA
AB
AC
AD
AE
AF
AG
AH
AI

Description
Authorized Saver
Partner (ASP)
Sony Authorized
Partner (SAP)
Logitech Registered
Dealers (LORDS)
Value Added
Resellers (VAR)
ASUS Royal Partners
(ASRP)
Sony Authorized
Resellers (SAR)
Other ARPs
Savera System
Integrator (SSI)
Savera Retail Partner

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

a) Stationary shops.
b) IT Retail.
c) Non IT Retail.
d) Sony World and
e) Sony Authorized Dealers.
4.Corporate Resellers:
a) HPBP
b) IBMBP.
c) LBP and
d) Others.
B. End users: Following are the
end users to whom SAVERA is
directly selling the products:
1. Corporates.
2. Government: a) State
Government.
b) DGS & D: Deputy
General of Supplies
and Disposal. (131)
c) DGS & D: Deputy
General of Supplies
and Disposal. (0)
3. Employees and
4. Others (Including cash
sales).
C. OEMs:
1. Indian Companies
and
2. Multinationals.

Strictly Confidential
119 of 168

AJ
AK
AL
AM
AN
AO
AP
AQ
AR
AS
BA
BB
BC
BD
BE
BF
CA
CB
CC

(SRP)
Stationary shops:
RRP
IT Retail: RRP
Non IT Retail: RRP
Sony World (Large)
Sony World (Small)
Corporate resellers:
Lenovo Business
Partners (LBP)
Corporate Resellers:
HP Business Partners
(HBP)
Corporate Resellers:
IBM Business
Partners (IBP).
Corporate Resellers:
Others
Channel Partners:
Others
Corporate Sales
Government: State
Government
Government: DGS&D
(131)
Government: DGS&D
(o)
Employees.
Other End Users
OEM: Indian
OEM: MNCs.
OEM: others

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Division
The division in SAP represents a product line. For every division you can
make customer-specific agreements on, for example, partial deliveries,
pricing.
Existing Business Process/
Requirements

Sap Fitment

SAVERA
trades
with
various Only one division will be
technology products from different created in the system.
Brands/ principals. SAVERA also
assembles the components as per
01 - SAVERA Division.
the customers requirements at
Daman.
Sales organization SAVERA will
be responsible for sales of
Technologies
Principals
material from the SAVERA
1.IBM
Division using the different
Servers/
distribution channels.
Accessories
2.HP
Laptops/
Principles/
Brands
and
Accessories.
technologies will be mapped
3.Logitec
Keyboard,
into system using Product
h
Mouse, Web
hierarchy (to get the reports
Cameras,
brand wise) and will be entered
Gaming
into every material master.
4.ASUS
Mother
Board,
Example: IBM (Brand)
Graphic card
5.Pixel
TV tuners,
View
Graphic
Servers
cards,
6.XFX
Graphic Cards
7.SONY
Optical
Series
drives, Floppy
drives,
Product Name (Model)
8.Altec
Audio
Lancing
9.Edifier
Audio
10.AMD
CPU
11.Compe
Networking.
x
12.Netge
Switches,
Strictly Confidential
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SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Wireless.
Laptop,
Options
Audio.
Internal
camera

ur
13.Lenova
14.Ozaki
15.
Aviosis

Sales Office
SAP has the option of having an additional sales office structure. This is the
internal sales organizational structure.
Existing Business Process/
Requirements

Sap Fitment

Currently SAVERA is doing


business transactions from 40
branches/ sub branches, Daman
assembly unit and selling is
happening directly from HO also
in few cases.

All the branches, sub branches,


Daman assembly unit and HO, each
of them will be mapped as Sales
Offices.
Sales Office
AHME
AURA
BANG
BHUB
CALI
CHAN
CHEN
COCH
COIM
DAMA
DEHR
GANG
GOAA
GURA
GUWA
HORP
HUBL
INDO
JAIP

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121 of 168

Description
Ahmedabad
Aurangabad
Bangalore
Bhubhaneshwa
r
Calicut
Chandigarh
Chennai
Cochin
Coimbatore
Daman
Dehradun
Gangtok
Goa
Guragaon
Guwahati
Head Office
Hubli
Indore
Jaipur

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

JAMM
KOLH
KOLK
LUCK
LUDH
MADH
MUMB
NAGP
NEWD
PARA
PATN
POND
PUNE
RAIP
RAJK
RANC
SECU
SILI
SURA
TRIV
VIJA
VIZA
VASI

Jammu
Kolhapur
Kolkata
Lucknow
Ludhiana
Madhurai
Mumbai
Nagpur
New Delhi
Parawanoo
Patna
Pondicherry
Pune
Raipur
Rajkot
Ranchi
Secunderabad
Siliguri
Surat
Trivendrum
Vijayawada
Vizag
Vasai

Plants
Plants are Units where product and/or services are provided. They can be
manufacturing plant, Delivering plant, or place where services are
rendered (Banks)
Existing Business Process/
Sap Fitment
Requirements
All sales offices in SAVERA are
having the Warehouses, where
materials and services are
stored & supplied to customers.

Strictly Confidential
122 of 168

Sales organization SAVERA can sell


products and services from all
plants (Warehouses) created in MM
using the distribution channels 01,
02 and 03.
The list of Plants are defined in MM

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PROJECT ARJUN

Shipping Point
Shipping points are independent organizational entities, responsible for
scheduling and processing deliveries to customers, as well as
replenishment deliveries for stock transfer to other plants.
Existing Business Process/
Requirements

Sap Fitment

SAVERA has warehouses at all


the
branch
locations
and
Shipment of material is done
from each warehouse.

A single shipping point will be


created for each plant/ warehouse,
which will be responsible for all
shipping activities.

Customer Master
Existing Business Process/
Requirements

Sap Fitment

Customer master will be broadly


categorized as per role customer
plays in the sales order processing
and will be controlled by different
customer account groups like
Sold-to-Party
Ship-To-party
Bill-To-Party
Before appointment of the new
Payer
business partner, an enquiry
will be made in the market Appropriate account group will be
regarding financial strength, selected during customer master
look in to the bank transaction record
creation,
as
per
role
details for the past three customer is going to play during
months, etc., Once the new sales. As a result system will ask for
partner
meets
all
the only relevant data as per his role.
requirements, then branch head There will be an account group for
will make a decision to appoint one time customer.
him as a business partner.
During Multiple assignments of sold-toappointment, the bank details party & payer, Sp/Sh, Sp/Bp will be
SAVERA is selling its products
directly to end customers and
also through different channels
like Authorized Savera Partners
(ASP),
Savera
System
Integrators (SSI), Savera Retail
Partners, Sony world, etc.,

Strictly Confidential
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SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

of the customer, telephone


number, Comfort cheques (2
numbers or more), are taken.
Then the transactions will be
resumed with the new partner
through Post Dated Cheques. All
the addresses relevant for sales
cycle like delivery address,
billing address are maintained
in Delivery order form manually.
Most of the cases the ordering,
shipping, billing and payment
will be made by the same
Customer. But, only in few cases
like
central
government
(western Railways), there can
be different ship to, Bill to and
payer.

allowed
record.

sold-to-party

master

Customer in SAP is represented with


a numeric number with a maximum
of 10 characters. The description for
the customer is alphanumeric with a
maximum of 40 characters.
Every sold-to-party master record
will contain customer group, which
will be a broad categorization of
customers as per the channels. This
field will be made mandatory in the
customer master record.
Customer Group:
Custom
er
Group
AA
AB

There can be different prices,


schemes, Incentives, for the
different channel partners.

AC

At branch level the customer list


is maintained and also at the Ho
level. The details like Customer
name, address, e-mail ID, Phone
numbers are maintained in the
customer list.

AE

Brand wise partners are also


seen. There are employees who
are exclusively involved in
looking
after
the
sales
pertaining to the specific brands
like IBM, HP, Government sales,

AI

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in

AD

AF
AG
AH

AJ
AK
AL
AM

Description
Authorized
SaveraPartner (ASP)
Sony Authorized
Partner (SAP)
Logitech Registered
Dealers (LORDS)
Value Added Resellers
(VAR)
ASUS Royal Partners
(ASRP)
Sony Authorized
Resellers (SAR)
Other ARPs
Savera System
Integrator (SSI)
Savera Retail Partner
(SRP)
Stationary: RRP
IT Retail: RRP
Non IT Retail: RRP
Sony World (Large)

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

etc.,
Brand
specialists,
Category
specialists
like
networking
specialists also exist. There are
employees who are looking
after particular channel partners
like: ARP, RSI, and RRP. At
branch
level
there
are
employees who are exclusively
meant for Government sales,
Components
sales,
IBM,
Networking products.
Brand wise sales executives are
at the Branch level. Product
executives
and
product
managers
and
business
managers are at the HO level.
Senior product managers will be
business managers.

AN
AO
AP
AQ
AR
AS
BA
BB
BC
BD
BE
BF
CA
CB
CC

Sony World (Small)


Corporate resellers:
Lenova Business
Partners (LBP)
Corporate Resellers:
HP Business Partners
(HBP)
Corporate Resellers:
IBM Business Partners
(IBP).
Corporate Resellers:
Others
Channel Partners:
Others
Corporate Sales
Government: State
Government
Government: DGS&D.
(131)
Government: DGS&D.
(o)
Employees.
Other End Users
OEM: Indian
OEM: MNCs.
OEM: others

ABC Classification: Customers are


classified as A class, B Class and
C class based on the criteria
adopted by SAVERA.
This can be tracked through Inco
terms which will be entered in the
Sales Order.
Want to track whether the
customer has picked up the
material or it is sent through
courier.

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It is possible to club the deliveries


into a single invoice, but payer and
billing date must be same.

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PROJECT ARJUN

Need to club the different


deliveries of the same Sold to
party into a single invoice.
Gaps: Customer master need to
have 14 digits alphanumeric
external numbering.

This requires complex


development work. (Agreed for 10
digits).

Gaps: Customer wise details like The requirement is met through Z


sales, returns, etc., Brand wise, report.
Technology wise, series wise and
product wise.

Sales Process
Reasons for Sales:
Existing Business Process/
Requirements

Demand for the


product.
Availability of the
Product
In house product
Product technical
Consultancy
Price
Follow up

Schemes operated for different


products need to be entered in
the sales order.

Sap Fitment
The reasons for sales can be
mapped in the Order Reasons and
can be selected during the order
entry if required.

Different schemes will be configured


in the order reasons. This will be
entered in the sales order against
the line item.

Order Reason
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Description
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PROJECT ARJUN

Savera
Z01
Z02
Z03
Z04

A:SMAP : Payment Default


B:SMAP: Damage in Transit
B:SMAP : RMA Returns
C:SMAP: Miscellaneous

Note : Order reason will be used only in case of Sales Return.


Mode of Receipt of Orders:
Existing Business Process/
Requirements
Majority of the cases, orders are
received over phone. Also
received
through
Short
Messages Services (SMS), Email, Fax, Personal visits, Print
copies/ hard copies, which are
couriered to the branch office.
Purchase
order
is
not
compulsory and only in case of
new customers, Government
sales, Corporate sales, OEDs.

Sap Fitment

Suggested to make PO as
mandatory for the Sales Order.
The PO filled in the sales order will
be made mandatory, so that it is
not possible to create a sales
order without a PO number and
PO date.
Otherwise, PO field should
be filled with the text like
Telephonic order, SMS, E-Mail,
etc.,

PO field need to be made


mandatory
for
OEM
and The PO field in the sales order is
included in the log of incomplete
Government business.
items.
Payment terms:
Existing Business Process/
Requirements
Payment
terms
vary
from
product to product and some
times
branch
to
branch.
Generally 14 days for the
components and 30 days for the
desktops.
Keeps
varying
depending on the products.
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127 of 168

Sap Fitment

Different payment terms will be


configured as per the requirement.
If the payment terms are different
from the one maintained in the
Customer master, then need to
change in the sales order manually
at item level as item to item
payment terms will change.
As per
the payment
cheques
SAP_N13_4_01 - SAVERA
Business
Blue Printterms,
Document
Page
will be presented in the bank.

PROJECT ARJUN

Normal Sales Cycle


Existing Business Process/
Requirements

Sap Fitment

Customer will place for an order


majority of the times over phone,
or through SMS, or even through
Fax, occasionally send hard
copies also.

Sales Process
Once the order is received from
the customer, Sales order will be
created containing the details like
Materials,
quantity,
Pricing,
payment terms etc.
A sales order will be created with
reference to a phone call, SMS, PO,
order placed over fax, order copy,
(PO if required by Savera) etc.,
Availability check & information to
Material Requirements Planning
(MRP) will be done by system at
this level. Credit limit check for the
customer will also takes place at
this stage.
During the order entry the
respective sales executives name
will be entered against each line
item, as there are brand wise
executives.

On receipt of an Order, a delivery


order is filled by Accounts
Executive/ Accounts Assistant /
Sales executive, which contains
information
about
customer,
material, quantity, Pricing, billing
details & shipping details.
Branch
head
approves
the
delivery order after checking the
pricing, payment terms etc.
Accounts department checks for
the credit limits.
Warehouse
department will reserve stock for
the order if material is available
or starts purchase procedure.
Majority of the cases sale will
happen only when there is stock.
Rarely orders are taken when
there is no stock. In such cases
stock will be procured either from
the central warehouse or from
the other branch.
Delivery
process
starts
as
requested deliver dates reaches
& material is available for
dispatch. Logistics department
identifies
material
to
be
dispatched & pick it from the
stock. Delivery memo is printed.
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Delivery process
Delivery document will be created
on availability of material. Partial
delivery processing will be allowed
as per agreement with customer.
But in case of the government,
deliveries
complete
delivery
agreement exists.
After
creation
of
delivery
document,
quantity
to
be
dispatched and serial numbers (In
case of products which have serial
no are to be maintained) will be
entered in the system. Late goods

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

issue is done.
Billing document is also created
& printed simultaneously by Billing
accounts dept.
Billing will be done for material
Material is sent to the customer with respect to delivery.
along with billing documents &
delivery document.
Accounts entries will be passed on
after saving of a billing document.
In all the cases Delivery order, Release
from
credit
control
Delivery note and billing will department will be taken care with
happen during the same day.
credit control procedure. If order
gets blocked due to credit control,
delivery will be possible only after
release of sales order by branch
head.
MM module will take care of the
Serial numbers should be made requirement.
mandatory in case of delivering
the products to the customers.
Logitech products are exceptional
for this.
Sales Documents Type

Sales Order
Types
ZAMC
ZBIO
ZBOR
ZCM1
ZCM2
ZCMR
ZCMS
ZCOE
ZCON
ZDM2
ZDMR
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Description
AMC for Ser. & Main.
BT-INTER ST VAT PD
BRANCH TRANSFER
CN-REBATE A/C
CN-Tax DIFFERENCE
CN-SALES A/C
CREDIT
NOTE(SERVICES
SMAP:OEM CST
BILLING
CONSIGNMENT
SALES
DN-Tax DIFFERENCE
DEBIT
NOTE(GOODS)
SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

ZDMS
ZDPR
ZDPS
ZDPV
ZEOR
ZGOR
ZIOR
ZKOR
ZQCO
Sales Order
Types
ZRB1
ZREB
ZREK
ZREM
ZREN
ZRET
ZRFD
ZRKA
ZRKB
ZRMA
ZRNT
ZRO1
ZRO2
ZROR
ZRRA
ZSE2
ZSER
ZSOR
ZTOR
ZVCO
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DEBIT
NOTE(SERVICES)
SS DP_RETAIL SALES
SS DP_LOCAL SALES
SS DP_OEM VAT
RMA EXPORT
DAMAN JOB SHEET
INTERSTATE
SALES(CST
BRANCH TRF
KERALA
Quantity Contract Or

Description
Reb.Credit Memo
Req.
S Ret Int Br W/o Ref
SR I BR W/o Ref-Ker
S Ret W/o Ref-Intst
S Ret W/o Ref
S Ret With Ref
Replacement Order
Consign Pick-upSMAP
Consign Fill-up-SMAP
RMA
SPAREPARTBILLING
RETAIL SALES
LOCAL SALES (Pune)
LOCAL SALES
(Pimpri)
LOCAL SALES
(GOODS)
Repair
Request:SMAP
RMA: SERVICE
ORDER
SERVICE ORDER
SCRAP
SALES:DOMESTIC
E1/E2 SALES
Matl-rel. Value Cont
SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

SMAP:OEM VAT
BILLING

ZVOE

Delivery Types
Delivery Types
ZSLF
ZSLR
ZRNL

Description
Savera: Outbound
Del
Savera:Returns Del
R:Replenishment
Dlv.

Billing Types
Billing
Types
ZFIN
ZRB1
ZRCM
ZRDM
ZRI1
Billing
Types
ZRI2
ZRIK
ZRIN
ZRRE
ZRS1
ZRS2
ZRS3
ZRS4
ZRS5
ZRTE
ZSIN
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Description
Savera: Replace
Invoice
Rebate Credit
Memo
Savera : Credit
Memo
Savera: Debit
Memo
Savera:
Invoice:Pune

Description
Savera: Invoice:
Pimpri
Savera:Invoice:K
erala
Savera:Invoice
Credit for
Returns
Cancel. Invoice
Cancel SR
Cancel CN
Cancel DN
Cancel. Service
Inv
RETAIL INVOICE
Savera:Invoice:S
SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

ZTIK

ervic
Credit ReturnKeral

Texts:

Reasons for the Rejection of the line items:


Existing Business Process/
Requirements

Sap Fitment

Occasionally there can be All the possible Reasons for the


rejection of the line items may Rejection of line items will be
be due to the following reasons: configured in the system.
By chance if there is rejection of one
Non-availability of the material or more line items due to the listed
Partners potentiality.
reasons, then the reason for the
Price realization
rejection will be entered in the Sales
No preference
Order against the line item.
Payment issues.
Credit limits Problem.
Disputes with the dealer.
Strategic decision.
HP/ IBM different components.
Cheque bouncing.
Credit Check
Existing Business Process/
Requirements
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132 of 168

Sap Fitment

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PROJECT ARJUN

Existing Business Process/


Requirements
Accounts department at the
branches does the credit limits
checking manually in the Tally
package.
All customers will be checked
against the available credit limit
(Total
Credit
Limit-Exposed
Credit limit) and depending on
the availability of the credit
limit, customer will receive the
stocks.
If credit limit is not available,
then customer must purchase
either on cash or against
Demand draft.
Branch head has the authority
to increase the credit limits
during that point of time.
The branch head fixes partner
wise credit limits.
Post-dated
cheques
are
compulsory for the dispatch of
the stocks.
If there is cheque bouncing then
there is no further dispatch of
stocks until the branch head
takes a decision.
For cheque bouncing penalty of
Rs. 250/- is charged from the
customer.
If there is cheque bouncing
continuously
for
three
consecutive times over short
period of time then the dealer
will be under observation and
stock will be sent against draft.
Accounts department monitors
and
controls
the
credit
management.

Sap Fitment
Credit limits for a customer will be
checked during the sales order
creation.
System will take into account all the
open items (accounts receivables),
open billing documents (bills not
passed
to
accounting),
open
deliveries (not yet billed) and Open
sales orders (not yet delivered).
System will not consider PDCs
during credit check
If the credit limit is not exceeding,
then sales order will be created.

If the credit limit is not sufficient,


sales order cannot be created i.e.,
warning message. For further action
i.e., release the sales order or not to
release
the
sales
order,
authorization is at Branch head
level.(Credit limit check should be
activated at delivery level. System
should allow to save sales order
with warning message but should
not allow to create delivery.)

Credit limit is checked against


Strictly Confidential
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PROJECT ARJUN

Existing Business Process/


Requirements
the net price, which includes
the taxes, but excluding the
discounts, which are given in
the bill.

Sap Fitment

There should be three levels of


credit limits
a) Normal credit limit, which
is fixed by the Branch a) Limit is fixed through roles and
head Say Rs. 10 Lacs).
authorization at the branch head.
b) Third limit is over and
above a and b, which is b) Limit is fixed through roles and
authorized at HO (say authorization at the branch head.
above Rs. 15 Lacs).

Gaps: Second level is the Requires development


credit limit, which is 50% over
the normal limit (Rs.15 Lacs.)
and will be used in special
cases to release the blocked
sales orders by the branch
head. After the release of the
blocked sales orders to the
extent of the 50% value of the
normal credit limit, system
should automatically block the
further release.

Availability Check
Existing Business Process/
Requirements

Sap Fitment

Sale of a product happens only During entry of sales order, System


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PROJECT ARJUN

Existing Business Process/


Requirements
when there is stock, i.e., maketo-stock scenario.
The target value for the FY will
be decided in advance in case
of HP and IBM. In case of other
principals, there may not be a
plan for entire year and
depends
on
the
market
dynamics and availability of
stocks with the vendor.
Targets
are
broken
down
quarterly and Product wise,
branch wise plan is prepared.
This plan will sync with the
target of the Vendor.
Later the procurement of the
product goes as per the plan.
In case of vendors where there
is no plan, then procurement
will be need based.
While planning for the stocks,
the stocks that are lying with
the
branches
and
Central
Warehouse is considered. Stock
of all material is maintained in
excel sheet in Mumbai as well
as at respective Branch offices.
The
employees
know
availability of the stock at the
Sub Branch ware house/ Branch
warehouse. But employees do
not know the stock status of the
Central Ware house.

Sap Fitment
will run the availability check
considering stock in the ware house,
inward
movement,
outward
movement
On availability of material only,
system will confirm the quantity and
reserve material accordingly.
System will pass on information to
purchase/procurement department
while saving sales order, which will
be used for further purchase
process.

After receipt of order from


customer mainly through phone
call, information is passed on to
Branch
Manager and then Ware house
department who identify the
stock and reserves it for order. If
the stocks are not available in a
Strictly Confidential
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PROJECT ARJUN

Existing Business Process/


Requirements
particular branch, then try to
get the stocks from the central
warehouse or other branches
where there is stock lying.
Branch to branch transfer of
stock is at a price.
In case of IBM and HP stocks are
sent directly to the Branches.
Stocks are not sent directly to
the customer by vendor.
Branches will block the stock for
the
specific
customers
especially in case of Mumbai,
which is outside Octroi.

Sap Fitment

Incompletion procedure
Existing Business Process/
Requirements

Sap Fitment

The data necessary for creating


the delivery order is maintained
manually.

Incompletion procedures given at a


sales order & delivery order level,
which will check availability of
important data in a document and
will block further related processing
in absence of data.
System will allow saving incomplete
document.
The necessary fields which will be
checked in sales order are as
follows

Strictly Confidential
136 of 168

Document date,
Sold to party.
Payment terms
Order Quantity
Product
Purchase order number (only
in case of Exports, Govt. &

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PROJECT ARJUN

OEM orders.)
Delivering plant
Prices.
Valuation type

Fields checked in delivery document


will be
Document Date
Material
Quantity
Inco-terms

Pricing
Existing Business Process/
Requirements

Sap Fitment

Prices are decided at the month


end at HO and are called branch
transfer price BTPs). List price
in INR given by the principals/
Brands for the products forms
the base of all price calculation.
Based on this price a branch
transfer price will be calculated.
Warrantee charge & sales tax to
be paid by SAVERA is added
which results into the Landed
cost.
Profit margin is added to give
Branch Transfer Price for sales
at branches.
Branches will add profit margin
to the BTP and sell to the
customer.
All other pricing elements,
which
are passed
on
to
customer, are calculated on
Branch
price.
Rarely
cash
discounts are given to the
customers in invoices on Branch

Pricing procedure for sale cycle


This pricing procedure will includes
following pricing elements
Price.
Different types of discounts.
Different type of taxes.
Freights.

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Conditions
Price
CST
LST/VAT
Service Tax
Octroi
Entry tax
Surcharge
Freight
Net Price

Amount
Rs. 100
10%(Rs. 9.40)
4% (Rs. 3.80)
12%
3%
2%
1%
Rs. 20
Rs. 110.00

Considering the
requirements, the conditions will be
made manual or automatic entry as
follows:

SAP_N13_4_01 - SAVERA Business Blue Print Document Page

PROJECT ARJUN

Existing Business Process/


Requirements
price excluding taxes. Other
pricing elements include taxes
(CST, LST, VAT, Service tax,
entry Tax), octroi, surcharge,
etc.

Sap Fitment
State wise pricing procedure will be
defined and condition records will
be maintained for the condition
types, which can be changed in the
sales order.

Few products are covered under


the price protection for specific
period. This can be back to
back, or for the stocks, which
are already stored with the
Savera.
Branches will raise the debit
note to HO to the extent of the
price protection at the end of
the month. Some cases there
will be price protection Back to The requirement is met by
back from the vendor.
controlling the condition type in the
configuration or in the condition
Bundling
of
the
products: record.
Automatic FI adjustments by
end of the day to reflect PL (Cash discount & any other
product wise.
discount should be added in pricing
procedure)
Minimum selling price should
not be able to change in the There will be pricing procedure,
sales order.
which will contain cash discount,
and price protection, which will be
assigned to the Credit Memo
Request. (cash discount is not
Cash & any other discount
needed as cash discount will be
should be given in sales order.
added in pricing procedure but
rebate CN is required)
Sales Pricing Procedure
PRCING
PROCEDURE
ZPPBTI
ZPPBTR
ZPPCHA
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DESCRIPTION
SAVERA:BRANCH
SALES:intst_Nouse
SAVERA:BRANCH SALES
SAVERA:CHATTISGARH
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PROJECT ARJUN

ZPPCOE
ZPPCON
ZPPDCC
ZPPDCN
ZPPEXC
ZPPGOV
ZPPIST
ZPPMSP
ZPPRMA
ZPPSDO
ZPPSE2
ZPPSEP
ZPPSER
ZPPST1
ZPPST2
ZPPST3
ZPPSTD
ZPPVOE

PRICING_Nous
SAVERA:OEM CST BILLING
SAVERA CONSIGNMENT SALES
SAVERA:DN CN CUST _REBATE A/C
SAVERA:DEBITNOTE CREDITNOTE
SAVERA:PP WITH EXCISE_Nouse
SAVERA:PRICING:GOVERNMENT_No
use
SAVERA PRICING:INTERSTATE
SAVERA:PRICING:MSP_Nouse
SAVERA:RMA SPAREPART SALES
SCRAP SALES:DOMESTIC_Nouse
SAVERA: RMA :SERVICEPRICINGP
SCRAP SALES EXPORT
SAVERA:SERVICEINVOICE
SAVERA:STANDARD
PROCEDURE_Nouse
SAVERA:STANDARD
PROCEDURE_Nouse
SAVERA:STANDARD
PROCEDURE_Nouse
SAVERA:STANDARD PROCEDURE
SAVERA:OEM VAT BILLING

Schemes/ Incentives
Existing Business Process/
Requirements

Sap Fitment

There are different types of


schemes operated by the inhouse or the schemes operated
by the vendor will be passed on
to the customer (back to back).
As of now in many cases
schemes
are
verbally
communicated or on paper.
Incentives to trade: These can
be
announced
or
hidden
incentives to the trade partners
and can be given to the trade
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Existing Business Process/


Requirements
as per the agreement.
Hidden
discounts/
discounts.

Sap Fitment

Hidden
discounts/
Mystery
discounts: Are given by way of the
Mystery credit note at the end of the deal as
per the conditions. If the discount is
linked with turn over, then value
contract will be created. If linked
with the product and quantity, then
quantity contracts will be created.

Price differences.

Bundling of the Products.

Price differences: either because


of the difference in prices or
because of the difference in
quantities are settled through credit
note or debit note as per the
requirement.
Bundling of the products:
If the child product is priced at
Rs.1/-, as presently followed, then
the same can be entered in the
sales order.

Scratch cards.
Scratch cards: scratch cards are
given along with the product and
gifts are distributed as per the
result.

Other type of schemes:


Local trips to the dealer:
Foreign Trips:
Gift articles.
Road shows.
Movie Tickets.

Dealer trips, Gift articles, Road


shows, Movie tickets come under
promotions expenses.
(Need to check how to handle
schemes in sap)

Rebates processing:
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Existing Business Process/


Requirements

Sap Fitment

Rebates are operated either by


SAVERA i.e., in house, or by the
vendor back to back. Once the
customer achieves the target
quantity, rebates will be given
to the customer as per the deal.

Rebates are configured as per the


requirement for the customers.
When customer achieves the target,
rebates will be released by way of
credit note.

Partner determination Procedure

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Existing Business Process/


Requirements

Sap Fitment

All the addresses relevant for sales


cycle like delivery address, billing
address are maintained in order
acceptance form manually.

All customer master data will be created


using customer account group. Customer
master data of sold-to-party will contain
information about other partner & roles
they are going to play in sales cycle.
Following
partner
functions
will
be
mandatory in a customer master data of
sold-to-party
Sold-to-party
Ship-to-party
Payer
Bill-to-party
Multiple entries for ship-to-party, bill-toparty & payer will be allowed.
On creation of sales order all partner
details entered in master record of sold-toparty will be copied in sales order.
Different ship-to-party, bill-to-party
payer will be allowed at line item level.

Sales executives name need to be


entered against each product in the
sales order.

&

Separate partner determination procedure


will be assigned at the (header) level in a
sales order in order to link between the
Partner and the Sales executive/ Service
executive. Because of the (Partner) wise
executives.
Mandatory partner functions in sales order
will be
Sold-to-party
Ship-to-party
Payer
Bill-to-party
Sales Executive
PDC no. in header level text.
Note: For local order system should not
allow to choose plant from another
state for the customer. For this in local
customer master needs to maintain
Authorization field in Sales &
distribution tab, company code tab &
general tab(authorization number is
plant number).
This will be met through Partner
Determination Procedure at sales order.

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Consignment business process:


Flow chart to be given by Accely.

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Existing Business Process/


Requirements
Stocks are delivered to the
customer as per the agreement
with the customer and any unsold
stocks are taken back and issue a
credit note as the stocks are billed
while shipping the consignment.

Sap Fitment
Suggested the following business
process:
1.Consignment fill up:
Movement of material on consignment
basis. An order will be created in the
system. After approval of order by
Branch head, delivery document will be
created and goods movement will be
done.
As material is still property of SAVERA it
will be shown in stock reports with
customer number.
As material liability is not passed on to
customer no billing will be possible.(Fill
up order will be created against dummy
customer. Billing against fill up needs to
be created & accounting entry will be
passed.)
2. Consignment Issue:
If customer sells part or complete stock
of the material & and informs the same,
this will be entered in to the system as
a sales order. Delivery will be created
and goods issue will be done, this will
bring down material stock. Billing will be
done for this process.(Once customer
sells goods from consignment stock,
issue order will be created with
reference to fill up order. Sold to party
will be dummy customer but bill to
party will be actual customer)
3. Consignment Pick up:
If customer is unable to sell the material
either partly or completely, then the
stock will be taken back. (Output
require in the form of branch transfer
invoice)
4. Consignment returns: Consumers
return the material to the customer may
be because of the faulty material. Later
this will be taken back from the
customer and issue credit note.

Government sales
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Existing Business Process/


Requirements

Sap Fitment

Government sales start with the


Inquiry and Quotation. Then
negotiation will happen for the
prices. The Government will give
tender,
There can be two different types
of government contracts: 1. For
project purpose where in the
product is supplied till the project
is over.
2.Rate
contract:
Here
the
configuration is fixed, prices are
fixed,
payment
terms
are
decided, and warranty period is
also decided upon.
Once the rate contract is agreed
then stocks to be dispatched will
be inspected by the government
representatives as pre dispatch
inspection
and
then
it
is
dispatched.
After the delivery of the stock,
installation team will install the
systems and get the installation
certificate called INOTE. There
will be three installments w.r.to
payment. First installment will be
paid after the installation and
second payment after some
period. Third installment will be
paid after the warranty or within
warranty if bank guarantee is
given.
Prices include all the taxes.

In case of Project purpose and


Rate contracts, a contract will be
created capturing all the details
like products, quantity, prices, and
validity period.
Sales order is created with
reference
to
the
contract.
Subsequently delivery and billing
document will be created. Single
billing document will be generated
but payment will received in part.
New payment terms needs to
create for govt orders.

1. Orders are created, stock is


ready but pending because
of the inspection.
2. Orders are created, stock is
ready but pending because
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The requirements are addressed


through assigning the user status
in the order and view these orders
as per the status.

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PROJECT ARJUN

Existing Business Process/


Requirements
of the road permit is not
there.
3. Orders are created, stock is
ready, Inspection is over
and due for the delivery.
4. Orders are created, stock is
ready, Inspection is over,
delivered, but installation is
pending.

Sap Fitment

While creating the order there is


need to link with the order and
the person responsible for the
indent.

The requirement is met through


entering the name of the person
responsible for the indent in the
sales order.

No partial deliveries.

The requirement is met through


configuration.

Few of the requirements like date


Different dates like date of of dispatch, date of receipt of the
consignment dispatch, date of consignment, date of Invoicing are
receipt of the consignment, date met.
of installation, date of the signing
of the INOTE, date of Invoicing,
etc.,

Gaps: Rate commission payable


to the specified person (ORC) and
AMC if any need to be captured.

Requirement can be met through


development

High Sea Sales:


Existing Business Process/
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Sap Fitment

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Requirements
After
receiving
order
from
customer,
SAVERA
raises
purchase order to its overseas
vendor for products and quantity
with
instruction
to
supply
material to customer directly.
Vendor supplies materials directly
to the customer of SAVERA and
raise an invoice in USD in-favor of
SAVERA. After receipt of material
by customer of SAVERA, SAVERA
raises invoice to the customer for
the same in INR.
(High sea sales contributes very
less to SAVERAs business)

On receipt of confirmed purchase


order from the customer a sales
order will be created in the
system. System will automatically
pick customer address as a
delivery address.
As material is directly delivered to
customer by SAVERAs vendor,
delivery procedure will not be
there.
Billing will be created with respect
to sales order only. Billing will be
possible only after delivery of
material to customer.
Account entries will be passed
directly on saving of billing
document.

Demo
Existing Business Process/
Requirements
In case of demo, before placing
the
order,
customers
want
demonstration of products to
check usefulness of product
against requirements.
After receipt of demo request
from a customer, material is
delivered to customer for a
stipulated time period but it still
remains the property of SAVERA.
After the demo, customer may
place the order for the material.
After receipt of order, either same
piece or different piece is
delivered & billed to him.
If customer does not put the
order, demo material will be
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Sap Fitment
For delivery of material for demo
purpose, an order will be created
in the system. After approval of
order by branch head delivery
document will be created and
goods movement will be done.
As material is still property of
SAVERA it will be shown in stock
reports with customer number.
As material liability is not passed
on to customer no billing will be
possible.
If customer accepts material &
gives purchase order, this will
entered in the system as a sales

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PROJECT ARJUN

taken back.

order. Delivery will be created and


goods movement will be done, this
will bring down material stock.
Billing will be done for this
process.
If customer does not place an
order for material, it can be taken
back into stock. (Consignment
process to follow)

Gaps: Demo quantity in a sales


order to be restricted to one unit

There should be separate sales


order for the demo and needs
development to restrict the
quantity to one unit.

Sales return
Existing Business Process/
Requirements
In case when there is a complaint
from the customer for the faulty
material
dispatched
to
the
customer then the material is
taken back and replaced with the
good one if available or credit
note will be given. Also when
there is consignment stock, which
is unsold over a period of time,
then such stock will be taken
back.

Sap Fitment
To take back the material, a return
sales order
will be created with reference to
the billing document, followed by
a return delivery & Goods receipt.
Credit note will be issued to the
customer to the extent of the
stocks taken back.
Account entries will be passed on
directly while saving the billing
document.

Credit Memo / Debit Memo:

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Existing Business Process/


Requirements
Credit Memo & Debit memos are
used for invoice correction, to
credit discount or for debiting
purpose.

Sap Fitment
A document will be created in the
system,
which
will
contain
customer
number,
value
&
material to be debited or credited
to customer.
The credit memo and debit memo
request documents will be blocked
for billing by default. On approval
of
document
by
concerned
authority (Branch Head), a credit
memo or debit memo will be
created.
.(CN
types:ZCMR,ZCM1,ZDMR,ZDM1)

Reports:
Following vendors require the reports as per the format prescribed by the
vendor.

Ras hi_BBP_SD_Repo
rts _081205_xls .xls

In case of external reporting, if standard reports does not support, the


customized reports need to be developed.
In case of internal reporting purposes, if standard reports meet exactly or
nearly in some cases then reports will be freezed after the discussion with
Savera team.
Customer Service
Maintenance planning plant
Existing Business Process/
Requirements

Sap Fitment

Service activities at SAVERA are All the branches, sub branches,


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handled by RMA (Return Material


Authorizations),
which
is
controlled by RMA department,
HO.
All existing branches, HO and
Daman are the locations from
where the services are rendered
to the customers. Services include
following different scenarios:

HO are the places where the


Maintenance planning happens
and each of them will be
maintenance plant in SAP.
Each maintenance plant will be
mapped as maintenance planning
plant for corresponding plants.
Since every plant is independent
in maintenance terms, each plant
is a planning plant.
Following are the maintenance
plants at SAVERA:
List Of Plants

1. Products sold by SAVERA


and authorized for servicing.
2. Products sold by SAVERA
and not authorized for
servicing the same. In this
Note: One maintenance plant can
case the product will be sent be assigned to one maintenance
to vendor.
planning plant only
3. Products sold by SAVERA
and not authorized for
servicing the same. In this
case the product will be sent
to Authorized Service
Partner mentioned by
vendor.
4. SAVERA as Authorized
Service partner (Ex: Kodak)

Maintenance plant
Existing Business Process/
Requirements
N/A

Sap Fitment
All existing branches, sub
branches, and HO will be mapped
as Maintenance plants.

Equipment

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Existing Business Process/


Requirements
Objects, which are serviced by
SAVERA, are maintained as
equipment with reference to
material and serial number
combination under the RMA
division.
These equipments will have a
unique identification number i.e.,
equipment number.
Whenever a material is received
for servicing, service processing is
carried out with a unique number
called Ticket number.

Sap Fitment
Objects such as Laptops, Mother
boards, etc will be configured as
equipment.
These equipments will have a
unique identification number
These can be installed in/
uninstalled from any functional
location to track their current
location
Every equipment will have
reference to a material number
and serial number combination
(in MM), for tracking. (ZIW51)

Serial Number management:


Existing Business Process/
Requirements

Sap Fitment

Products sold by SAVERA are


delivered to the customer with
unique serial number in order to
track the warranty covered for the
product.

Serial Number profiles are created


in the Material Master with the
serial numbers entered for each
product.
This serial number is unique to
each product and will be used to
track the warranty details of the
product.

In majority of the cases SAVERA


operates following warrantys:
a. Vendor warranty
b. SAVERA Warranty: SAVERA
will charge extra price for
SAVERA warranty.

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Call Management - Service will discuss separately


Existing Business Process/
Requirements

Sap Fitment

RMA division will receive


information of failures at
customer site either directly from
the end user or through customer.
During the call reporting
customer will give the information
like Product, Serial number, etc.,
Based on the serial number, RMA
will check for the Warranty
details.
Later RMA division will capture
the following details regarding
calls in the Call Report.
1. Call ID.
2. Date.
3. Engineers Name.
4. Company name.
5. Contact Name.
6. Contact number.
7. Address.
8. Type of Problem:
(HardwareSerial Number/
Software)
9. Solution suggested.
10. Call status.
11. Customers remark.
12. Engineers remark.
13. Customers signature
14. Engineers signature.
A ticket number or token number
is generated which is a unique
number used for the tracking of
the product.

On receipt of a service call from


the
customer,
a
service
notification will be created with
the following details
Equipment number
Contact person
Address
Time of breakdown
Date
Time reported
Reported by
Nature of failure: Standard
failure symptoms will be mapped
as defect codes and entered in
the notification if defect is
standard. (SAVERA will provide all
the standard defect codes).
If the defect is out of list, need to
enter the defect details in the
long text field.
Notification will be saved and the
number will be given to the
customer for future references. At
this moment the status of the
notification will be NOCO, mean
notification created.
Warranty check will be performed
by the system and if the
equipment is within warranty,
message pop up will display the
warranty.
Defective
product
and
the
notification generated for the
equipment are given to the
service engineer (Work Center)
responsible.

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Existing Business Process/


Requirements

Sap Fitment
Service order will be created
w.r.to the service notification
(details will be addressed in the
service order processing).

After servicing the product the


details of diagnosis and counter
measures will be recorded in the
notification.
After recording the above details
in the notification, the notification
All the pending calls for the of the will be technically completed and
Servicing need to be generated status of notification will change
every day.
to TECO.
Through viewing the status of the
service notifications, one can
know
the
Out
standing,
postponed,
In
process
and
completed notifications.

In House Service Order Processing:


Existing Business Process/
Requirements
RMA division will receive defective
product from either channel
partners or through end customer.
From branch product may be sent
to HO in few cases. The formal
details are completed as per the
call report format.
If warranty seal is tampered or
physical damage is found, in such
case notification will not be
created and material will be
returned to the customer if he
does not agree for the paid
services.
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Sap Fitment
Return delivery document will be
created with reference to the SD
document of the product sold.
Goods receipt will be done for the
return delivery and product will
be posted into GR blocked stock.
Service
notification
will
be
created for the product received
for servicing as mentioned in the
call management.
A service order will be created for

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Existing Business Process/


Requirements

Sap Fitment
the notification generated.

Now the material is handed over


to the service engineer for the pre
test.
Once the pre test is over and then
it will be sent to the different
levels for repairing.
After the completion of the repair,
product will be returned to the
customer.
If the product cannot be repaired,
then customer will be given a
credit note or replacement of the
same product or an upgraded
product will be given with extra
charge.

To meet the following scenarios


different service order types will
be created.
a) Within vendors warranty
b) Within SAVERAs warranty
c) Out of warranty.
Reservation will be done by the
system for each of the material
entered
in
the
order
and
reservation
number
will
be
generated.
Service order created above will
be released for processing by the
head
of
customer
service
department.
Materials will be drawn against
this reservation. The cost of
materials used is thus captured in
the service order.
On completion of the task,
technician will confirm activities
along with the actual time taken
to perform each activity.
All the details from the service
order are updated in the service
notification and service order is
then
closed
as
technically
completed.
Now the system will internally
trigger inspection lot for each
service order. After completion of
result recording usage decision
will be taken to post the serviced
product into Unrestricted use
stock or Scrap.
Product will be returned to the

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Existing Business Process/


Requirements

Sap Fitment
customer from the unrestricted
use.

If the product cannot be repaired,


then customer will be given a
Quality Check needs to be credit note or replacement of the
performed at Branch once the same product or an upgraded
material is received from HO after product will be given with extra
servicing.
charge.
Replacement details like:
System will internally trigger
1.Given new product,
inspection for each service order.
2.Replaced with the same product,
3.Credit note given, etc, need to
be captured.
A report need to be developed in
order check for the details like
the faulty product is replaced
with the upgraded product or
credit note, etc.,

External Service Order Processing:


Existing Business Process/
Requirements

Sap Fitment

Wherever
SAVERA
is
not
authorized for the servicing the
product, it will be sent to either
vendor
or
to
the
Vendors
Authorized Service Partner.
After receiving the repaired
product back from vendor, it will
be delivered to the customer.

External Service vendor will be


mapped as Vendor in SAP.
A purchase order will be created
on Vendor for hiring the services.
Product will be sent to Vendor
with reference to the PO.
Vendor will return the product
after repair.
Service entry sheet will be
entered into the system to
confirm the required services are
provided by the vendor.
Invoice will be booked with
reference to service entry sheet/
PO to generate vendor liability.

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Existing Business Process/


Requirements

Sap Fitment
Goods receipt will be done for the
repaired product with respect to
PO.
Now the system will internally
trigger inspection lot for each
service order. After completion of
result recording usage decision
will be taken to post the serviced
product into Unrestricted use
stock or Scrap.
Product will be returned to the
customer from the unrestricted
use.
If the product cannot be repaired,
then customer will be given a
credit note or replacement of the
same product or an upgraded
product will be given with extra
charge.

In case of the In house services,


if branches are not able to
service the product, then product
will be sent to HO for servicing.
In this case HO will behave, as
the external service vendor for
branch and the above procedure
Quality Check needs to be will applicable.
performed at Branch once the
material is received from Service
Vendor after servicing.
System will internally trigger
inspection for each service order.
Service Processing with Buffer stock:
Existing Business Process/
Requirements

Sap Fitment

Once the defective product is Each branch will


have the
received from the customer, following storage locations under
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immediately replacement product RMA division which are created in


is given to the customer from the MM module:
RMA buffer stock if available.
a) Buffer stock: Fresh product
Once the product is repaired, it is b) Repaired stock
brought back into the RMA buffer c) Damaged stock.
stock.
The faulty material will be
received from the customer into
the damaged stock, and manually
check for the availability in
repaired stock and then buffer
stock.
If the stock is available, customer
warranty details and functional
location will be changed manually
as per the details of the faulty
material to the product issued to
the customer.
After swapping the warranty and
functional details, product will be
issued to the customer.
Faulty material will be processed
through the service notification
and service order process as
mentioned in the call management
and service order processing.
After repairing the faulty material,
it will be sent back to the repaired
stock.
If the product cannot be repaired,
then it will be scrapped and the
same product will be placed into
the repaired stock from buffer
stock.
Service processing: Product not sold by SAVERA: out of
warranty:
Existing Business Process/
Requirements

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Sap Fitment

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In case product is not sold by


SAVERA and out of warranty of
Vendor, the product will be
serviced
and
billed
to
the
customer.

Customer will be created under


the
account
group
one-time
customer.
A service material will be created
as SES (Savera Enriched Services)
for creating the sales order.
Sales order will be created with
the material RES and price for
servicing the product will be
entered in the sales order.
Once the product is repaired
customer will be billed with
reference to the sales order.
Goods receipt and goods issue will
happen out of SAP, as product is
not sold by SAVERA.
No data base will be maintained
for these kind of services like
Serial Number, etc.,

Material sold by SAVERA within warranty of Vendor and SAVERA


is authorized for services:
Existing Business Process/
Requirements

Sap Fitment

Majority of the cases SAVERA will


sell the product, which has
warranty coverage from vendor
for a period of 1 year.
SAVERA is selling the products by
giving 3 years warranty out of
which 1 year is covered by Vendor
and 2 years by SAVERA. SAVERA is
charging extra price for the
additional warranty period.
In case there is a faulty product
(which is still under vendors
warranty coverage) received from
the customer and repaired by
SAVERA, cost is booked to vendor
and no billing to customer.

Each principle vendor is mapped


as customer.
Service contract will be created for
each of the customer (principal
Vendor whoever is providing
warranty).
Different products pertaining to a
Principal will be entered in the
service contract as a line item.
All the products, which are sold
and within vendor warranty are
manually assigned to the Service
contract as Technical Object.
Each product sold to the customer
will have a material number which
in turn contains various serial
numbers, which are assigned while
delivering the product to the

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customer.
Each line item will have a separate
billing plan, conditions (Price),
etc.,
All the service orders of a
particular principal, which are
technically completed, are settled
against the service contract for a
period of time.
After the settlement the costs are
booked
against
the
vendor
through billing.

Material sold by SAVERA within warranty of SAVERA and SAVERA


is authorized for services:
Existing Business Process/
Requirements

Sap Fitment

Majority of the cases SAVERA will


sell the product, which has
warranty coverage from vendor
for a period of 1 year.
SAVERA is selling the products by
giving 3 years warranty out of
which 1 year is covered by Vendor
and 2 years by SAVERA. SAVERA is
charging extra price for the
additional warranty period.
In case there is a faulty product
received from the customer (In
this case vendors warranty is void
but under SAVERAs warranty) and
repaired by SAVERA, cost is
booked
No billing either to customer or to
vendor.

Central RMA will be created as a


dummy customer.
Service contract will be created for
the customer (Central RMA).

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All the products, which are sold


and are charged by SAVERA for
the
warranty,
are
manually
assigned to the Service contract
as Technical Object.
The products which are carrying
both Vendor warranty and SAVERA
warranty,
once
the
vendor
warranty is Void, these products
will be assigned to Service
contract of the RMA dummy
customer.
Each product sold to the customer
will have a material number which
inturn contains various serial
numbers, which are assigned while

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delivering the product to the


customer.
Each line item will have a separate
billing plan, conditions (Price),
etc.,
All the service orders, which are
technically completed, are settled
against the service contract for a
period
of
time.
After
the
Details of the different products settlement the costs are booked
serviced by SAVERA along with the against the revenue.
number of times complaints
attended needed.
The details of the complaints
attended to different products can
be viewed through the history of
the products.

Material not sold by SAVERA within Warranty of Vendor and


SAVERA is authorized for services:
Existing Business Process/
Requirements

Sap Fitment

Savera is also Authorized Service


Partner to the vendors like ASUS
or KODAK, etc.,
In this case customers
will bring the product to Savera for
the servicing purpose. Later
Savera will bill the Vendors for the
services and spares used for the
product in case of within warranty.
Other wise customer will be billed
for the services and spares
rendered.
In case of KODAK, spare parts will
be received from KODAK. Some
times only the part required may
be received or in some cases
whole camera may be received
and it need to be cannibalized for

Service contract will be created for


each of the customer (principal
Vendor whoever is providing
warranty).

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For each principal vendor a service


material will be created and
entered in the service contract as
a single line item.
Each line item will have a separate
billing plan, conditions (Price),
etc.,
All the service orders of a
particular principal, which are
technically completed, are settled
against the service contract for a

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taking out
required.

the

particular

part period of time.


After the settlement, the costs are
booked
against
the
vendor
through billing.

Planned Service Maintenance:


Existing Business Process/
Requirements

Sap Fitment

In case of government business, For AMCs, service contracts, SD


services are provided on-site till document, will be created with the
the warranty period is void.
following details
Customer number
Presently
the
services
are
Validity period
provided to such customers
Conditions for cancellation
based on the customer calls
Response
and
resolution
whenever there is problem with times
the material and not periodic.
The services to be provided
Materials to be provided
SAVERA
requires
planned
Equipment to be serviced
service maintenance, especially
Conditions under which the
in case of the Government contract is valid
business.
Exemptions from contract
Price agreements for services
Billing plan

Maintenance planning

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Existing Business Process/


Requirements
As of now there is no Planned
maintenance at SAVERA.

Sap Fitment
Time based maintenance
schedules will be provided for the
purpose of AMC.
Task list will be created for every
equipment with the following
details
Activities to be performed,
with
Materials required
Technicians required
Duration & work
Number of technicians
required
Internal/ external resource
Maintenance strategy/
Frequency
Task lists will be attached to a
maintenance plan
Maintenance plans will have, apart
from other parameters, call
horizon.
Scheduling will be done, for the
system to generate service orders
based on the maintenance plans
Service orders will be created for
the dates on
which the call
horizon is reached
Service orders will have reference
to the service contracts
The head of RMA department
(RAM) will release
service
orders.
Service orders can be executed
only after release
Note 1: If service contract is
assigned to a maintenance
plans, service orders will be
generated only during the
validity period

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Installation
Existing Business Process/
Requirements

Sap Fitment

The RMA department, based on


the delivery of the material to
the
customer,
depute
the
engineers for the installation of
the systems this is particular in
case
of
the
government
business. The installation can be
for the Networking or System,
Printer/ Desktop.
Following details are recorded
in case of the Installation
Report:
1. Engineers Name.
2. Date.
3. Installation ID.
4. Company Name.
5. Contact person.
6. Contact number/ mobile
number.
7. Purchase order number
8. Invoice number.
9. Challan number.
10. Address.
11. Product, Model number
and Serial number (In
case System, Printer,
Desktop)
12. Product, Area, Mtr. No.
(In case of Networking)
13. Customers Remark.
14. Engineers Remark.
15. Customer
name:
Stamp:
Date
and
Signature.
16. Authority name with
signature and Date.
17. Engineers name with
date and signature.

Service order will be created


during creation of sales order,
which needs installation.
Service Order will have description
of
Installation
Location
Expected start date
Expected end date
This will be the planning tool for
the head of RMA department /
Service department.
Based on the information available,
head of RMA department will
record the following
Activities
Number
of
technicians
required
Duration & work
The head of RMA department will
release the service order, for
execution, only on the date it is
required
The released service order will be
printed and issued to the engineer
for execution
The engineer will confirm the
activities with actual time taken
The service order will then be
technically completed
A billing request will be generated
for the sales department to
process further

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System will consider the service


order for installation as closed, on
technical completion

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Existing Business Process/


Requirements
In case of the government
business, unless the INOTE i.e.,
installation note is signed by the
concerned
authority
of
government as satisfactory, the
payment will not be executed.

Sap Fitment

An alert is required in case of Need to run a report to know the


planned services.
open calls for servicing.
In case of Installations, list of It is possible to check for the list of
pending installations and closed pending installations and closed
installations are required.
installations.
Billing request - periodic
Existing Business Process/
Requirements

Sap Fitment

Presently there are no planned Based on valid service contract


AMCs.
document, the system generates
billing documents automatically on
billing due date.
To ensure that this document is
forwarded to the customer, with
proof of services provided, a block
will be set.
The blocked document list will be
displayable to the head of RMA.
After ensuring that all the required
services have been provided, as
per agreement, the head of
services will remove the block, for
the sales personnel to process
further
Billing request - static
Existing Business Process/
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Requirements
The RMA department for the
services provided wherever
applicable creates billing
document.
Corresponding service report
will be enclosed with the billing
document as proof of having
provided the services.

The details in the service order will


be copied into the billing request
The billing request will be saved
and sent to the respective
customer for payment.

Reports:
Existing Business Process/
Requirements
List of the reports presently used
by SAVERA along with the details
are found in the spreadsheet.

Sap Fitment
Details are mentioned in the
spread sheet

Assumptions
1. The scope mentioned in this document is purely based on
understanding of requirements through the documents provided and
interactions.
2. It is assumed that all the applications that need to be integrated
should provide required integration touch-points that will pave the
way for non-intrusive integration.
3. ACCELY assumes that SAVERA would provide a complete picture of
the system, business processes and data formats used in the present
system.
4. SAVERA will provide ACCELY with the test data and testing
environment.
5. Core Team members participation during realization will be full time
6. Accely will develop the critical programmes (not exceeding 15) for
Go-Live. The other non-critical items and post go-live
programmes/development will be done by the internal development
team of SAVERA.
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7. Where possible standard SAP solutions will be sought. It is


understood that continuous process improvement will be adopted
post SAP implementation.
8. The SAVERA team members will be empowered by the business to
make decisions about the configuration of SAP and how they will use
it.
9. The functionality for release procedures and delegation of powers is
subject to the authorization roles finalized by SAVERA
10.
Core Team members will be trained by Accely Consultants.
They will in turn Train the end users in the Business transactions.
11.
Hardware procurement,
UPS and necessary back-up
arrangements are the sole responsibility of SAVERA. Accely does not
assume any responsibility in the event of system crash due to
whatsoever reasons.
Critical Project Success Factors
Following are the factors that have been identified for making Project
Arjun a success:
The sponsor provides the leadership and functional skills to assume
ownership of the project and responsibility for the deliverables.
Consulting provides the required leadership and best business
practices to complement the project team members.
Open and frequent communication occurs between project
management and the steering committee.
User involvement is important for project scope definition and
successful implementation.

Glossary
Company
code.

Smallest organizational unit of external accounting for which a


complete, self-contained set of accounts can be created.

Credit Control
Area

The Credit control area represents an organizational unit that


represents an area responsible for granting and monitoring credit.

Financial
Management

Central organizational unit for cash budget management and funds


management. FM areas sub-divide an organization into units in

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Area

which independent cash budget management can be carried out.

Controlling
Area

Central organizational unit of the Controlling (CO) component used


to carry out cost accounting.

Functional
Area

Organizational unit that classifies the expenses of an organization


by functions such as Administration, Sales and Distribution,
Marketing, etc.

Profit center

Profit center reflects a management-oriented structure of the


organization for the purpose of internal control.

Cost Center

Organizational unit within a controlling area that represents a


defined location of cost incurrence. The definition can be based
on: Functional requirements, Allocation criteria, Physical location,
Responsibility for costs.

Purchasing
Organization

Unit responsible for procuring materials or services for one or more


plants and for negotiating general conditions of purchase with
vendors. The purchasing organization assumes legal responsibility
for all external purchase transactions.

Plant

Plant is the unit where goods and services are provided.

Purchasing
Group

Purchasing group refers to a group of buyers responsible for dayto-day buying activities.

Sales
Organization

An organizational unit responsible for the sale of certain products


or services. The responsibility of a sales organization may include
legal liability for products and customer claims

Distribution
Channel

The way in which products or services reach the customer. Typical


examples of distribution channels are wholesale, retail, or direct
sales.

Division

A way of grouping materials, products, or services.

Sales Office

A physical location (for example, a branch office) that has


responsibility for the sale of certain products or services within a
given geographical area

Sales Group

A group of sales people who are responsible for processing sales of


certain products or services

SD Billing
Document
Types

Classifies types of Billing documents that require different


processing by the system

Reference
Document
Number

The reference document number serves as a search criterion when


displaying or changing documents. In correspondence, the
refererence document number is sometimes printed instead of the
document number.
The reference number is set in the document flow according to
control and taken into the financial accounting document.

Payment
Terms

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Key for defining payment terms composed of cash discount


percentages and payment periods. It is used in sales orders,
purchase orders, and invoices. Terms of payment provide
information for:

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a) Cash management
b) Dunning procedures
c) Payment transactions
Incoterm

Commonly used trading term that complies with the standards


established by the International Chamber of Commerce (ICC).

Pricing
Condition
Types

The condition type indicates, for example, whether, during pricing,


the system applies a price, a discount, a surcharge, or other pricing
elements, such as freight costs and sales taxes. For each of these
pricing elements, there is a condition type defined in the system

# It is presumed that each & every point that has been discussed during the information
gathering phase and various meetings, have been included. If any point that has been
already discussed but has not been included in the document it will be responsibility of
ACCELY Consulting India Pvt. Ltd. to include the same.

For, Savera Marketing Agency Pvt. Ltd.


India Pvt. Ltd.

For, ACCELY Consulting

Gopal Pansari

Kinjal Shah

(Director)

(Head India Operations)

Mukesh Agrawal

Abdul Qadir I Mulla

(Project Manager)

(Project Manager)

Dated : 1st May, 2013

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