BP080 Accounts Receivable V1 0

EAPM
BP.080 TO BE PROCESS
RAILTEL CORPORATION OF INDIA LIMITED
ACCOUNTS RECEIVABLES
Author:
Amit Modi/ Rana Nishant k Singh
Creation Date:
14-January-2013
Last Updated:
11-March-2013
Document Ref:
RCIL -BP080-AR
Version:
Version 1.0
Disclaimer:
This document is a confidential document between Wipro Ltd. and RailTel Corporation Of India Limited. No part of this publication may
be reproduced, stored in a retrieval system or transmitted in any form or by any means, whether electronic, mechanical, photocopying,
recording or otherwise, without the written permission of Wipro / RCIL. This document includes confidential information related to
Wipro and RCIL and shall not be distributed to any persons other than those mentioned in the distribution list herein. All product names
referenced herein are trademarks of their respective companies
ii
Document Control
Change Record
3
Date
Author
Version
Change Reference
14-January-2013
Amit Modi / Rana Nishant

Singh
Amit Modi / Rana Nishant
Singh
0.1
Base Document
1.0
Final Version
11-March-2013
Reviewers
Name
Position
Prithwish Chatterjee
Swarup Ghosal Chaudhury
Wipro Project Manager

Wipro Program Manager
Approver
Name
Position
Sh. Rahul Aggrawal
AGM Finance
Sh. Anuj Kumar
Manager Finance
Sh. Kumar Bachchan
Sr. Manager DNM
Sh. A K Sablania
GGM DNM
Sh. S R Kapoor
Additional GM Finance
Signature
Distribution
Copy No.
Name
Location
1
2
3
4
5
RailTel Project Parivartan Steering Committee

RailTel Project Parivartan Core Working Group
RailTel Project Parivartan Regional CWG
Wipro Onsite Team
Wipro Technical Team
Gurgaon
Gurgaon
New Delhi/Mumbai/Secunderabad/Kolkata
Gurgaon
Gurgaon
Note to Holders:
If you receive an electronic copy of this document and print it out, please write your name on the equivalent of the cover
page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front cover, for document control purposes.
Company Confidential - For internal use only
iii
Contents
Document Control .....................................................................................................................ii

Introduction ............................................................................................................................... 1
About this Document.......................................................................................................... 1
How this document is organized ........................................................................................ 2
Generic Assumptions .......................................................................................................... 3
Generic Assumptions .......................................................................................................... 3
Accounts Receivable Process ..................................................................................................... 4
AR 01
AR 02
AR 03
AR 04
AR 05
AR 06
AR 07
AR 08
Supplier Creation .................................................................................................. 5

Invoice Creation ................................................................................................... 7
Supplier Deposit from Supplier ............................................................................ 9
Creation of Debit / Credit Memo ....................................................................... 11
Receipt Creation ................................................................................................. 14
Adjustment Process ............................................................................................ 16
Service Tax .......................................................................................................... 17
Period Close Process .......................................................................................... 19
Open and Closed Issues for this Deliverable ............................................................................ 21

Open Issues....................................................................................................................... 21
Closed Issues ..................................................................................................................... 21
Introduction
About this Document
RAILTEL has appointed Wipro Limited to implement Oracle E-Business Suite. The implementation spans
Human Resources, Financials, Advanced Supply Chain Planning and Supply Chain Management
processes. This document describes the Process for RAILTEL.
The project is divided into Five Stages viz. Plan, Analyze, Design, Develop and Go-Live. The Analyze
Stage covers identifying the gaps in the As-Is processes and re-designing them in order to adopt
leading processes as also to harness the capability of the chosen technology.
This document contains the RAILTEL Accounts Receivables flow that would be configured onto the
Oracle E-Business Suite.
How this document is organized

This document forms deliverable of the operation analysis phase of the ERP
implementation project for RAILTEL. The purpose of this document is to compile a
comprehensive list of requirements against which to map Application features. The
scenarios listed in the subsequent sections are reusable templates and are created once
for each business process.
Each of the following sections consists of the following sub sections:
Assumptions
Any assumptions that are specific to the process being detailed are recorded in this
sub section.
Process Scenario
The Event initiates the corresponding process.
Process Solution:
1.
Complete process flow
2.
Process Id #:
process.
Unique number for the sub-processes within the main
Description
1.
Process Title & Description: The bold letters gives the process title
followed by the detailed description of the process in normal font.
2.
Key Requirements from the above process
Requirement Fulfillment using ERP Approach

1.
Solution Type & Description: Used to designate type of solution. The

types mentioned here are Screen, Manual and System. The Screen refers
to the type where the data is to be entered in the screen or can be viewed
in the screen. Manual type is the manual way of doing the process whether
the user would be performing the process in the system or otherwise. The
System type of solution is referred to when the system performs the step
through automation or sub-automation. The following keys can be used for
the process in the system.
i. S Standard
ii. W - Workaround
iii. C Extension/Customization
2.
Navigation Path: The path to navigate to the relevant functionality in

Applications. The following acronyms have been used for navigation type:
i. (T) Tab
ii. (B) Button
iii. (CB) Check Box
iv. (F) Field
3.
Impact analysis
Process Improvements
Quality & Customer Service
Leading Practices
Note: The texts in grey shade are optional activities.

Generic Assumptions
Generic Assumptions
Any additional information captured in ERP through external systems will be highly dependent
on the external systems. Wipro will not be responsible for the functioning or the
implementation of the external systems.
Customizations identified in the requirement definition document will be developed subject
to the scope defined in the approved project charter.
Accounts Receivable Process
Create Customers
Enter Invoices Manual

Invoice or automatic Invoices
(will generate from Sales Order
(Customer PO))
Transfer to General Ledger
Review and
Print and Send
Correct Data
Invoices
Enter Receipts
(Payments from Customer)
Collect Payments
AR 01
Supplier Creation
AR01 Customer Creation
ERP
Manual
Email
Other Departments
Marketing Department (Initiator)
Yes
Customer Is Available or not ?
No
Customerr Creation Form will be
Prepared & sent to Finance
department.
Finance Department
Yes
Verification of
Customer Creation form.
Clarification Required ?
No
Customer is Created by entering

necessary information like
address , bank details PAN, TAN
etc..
Email of Customer Creation

Sent to requestor
Start
End
RAILTEL
Process: Customer Definition
Control Number: AR 01
Business Function: RAILTEL Accounts

Receivables
Mapping Team: Wipro
Date: 14-Jan-2013
Process Owner: RAILTEL - Finance Team.
Process Number: AR 01
Description: This step explains the process of defining the Customers in the Accounts Receivables Module.
Event
Description: This process is triggered Whenever a new customer needs to be created in the system
Source: RAILTEL - Finance Team
AS IS
Process
AS IS
Process ID#
Process ID
#
Description
Mode
Requirement
Fulfillment using ERP
Approach
(Y/N)
None
None
None
None
NA
NA
NA
NA
AR01.01
AR01.02
AR01.03
AR01.04
New Customer/ Site Details to be provided by the Marketing team to the Finance Team.
Check whether the Customer / Site details exist in the system.
Create a Customer with the appropriate site information of addresses, contact details.
Confirmation for customer creation sent to Requestor
System
System
System
System
Y
Y
Y
Y
AR 02
Invoice Creation
AR 02 Invoice Creation
Manual
Email
Finance Department
Marketing Department
NOC
ERP
Service is
COMMISSIONED
SALES CONTRACT is Prepared and SALES ORDER

is Generated Accordingly. Details will include customer
information , items, Tax details etc.
Commercial Offer/ Demand Note

sent to Customer, And
CUSTOMER PO is Received.
ADVANCE PAYMENT
Received from Customer
or Not ?
Start
No
No
ADVANCE PAYMENT
Received from Customer &
Submitted to Finance
Intimation sent to
customer.
Invoice Automatically created based on

respective Sales Order Tax Information
Like Service tax etc. will entered
Standalone Invoice created for Railways

& Rail wire based on Approval. User
Enters all invoice details. Tax
Information Like Service tax etc. will
entered
Verification & Correction

of Invoice
Management Decision
For further Process or
not?
SALES ORDER
Closure/ Execute
Yes
Customer request for business
without CUSTOMER PO
Yes
Print The Invoice & Sent

to Customer
CUSTOMER PAYMENT.
Advance from customer will remain
ON ACCOUNT status till Customer
PO is not received.
Please refer AR05- Receipt
Creation
RAILTEL
Process: Invoice Creation
Control Number: AR02
Business Function: RAILTEL - Accounts

Receivables
Mapping Team: Wipro
Process Number: AR02

Event
AS IS Process
Date: 14-Jan-2013
Process Owner: RAILTEL -Finance Team
Description: This process covers the creation of Invoices in the system
Description: This process is triggered when the Invoices is generated for the Customers
Source: RAILTEL - Finance Team.
AS IS
Process
ID#
Process
ID #
FIN_AR_INVOICING
AR02.01
FIN_AR_INVOICING
FIN_AR_INVOICING
FIN_AR_INVOICING
5
5
5
AR02.02
AR02.03
AR02.04
Requirement Fulfillment
Description
Mode
Invoices are created based on sales orders or

Standalone Invoices in case of railways/rail wire
after Approvals. The User completes the invoice
after verification.
Invoice will be Verified & Completed
Print The Invoice & Sent to the customer.
Create Accounting & transfer accounting entries to
General ledger
System
System
System
System
Y
Y
Y
using ERP Approach(Y/N)
AR 03
Supplier Deposit from Supplier
AR 03 Security Deposit from customers
Finance Department
Start
ERP
User enters the Deposit Invoice with

the necessary details.
Receipt is obtained
against the Security
Deposit
Manual
Email
User to Complete the Deposit invoice

after verification & accounting for the
same is done.
Receipt is applied to the

Security Deposit
Whether
Customer
parting away?
Yes
No
The Security Deposit is

adjusted against invoices as
per the organization policy
End
10
RAILTEL
Process: Security Deposit From Customers

Receivables
Mapping Team: Wipro
Date: 14-Jan-2013
Description: This process explains the process of receiving the Security Deposit from the Customers
Event
Description: This process is triggered when the Security Deposit needs to be received from the customers
AS IS
Process
AS IS Process
ID#
Process
ID #
Description
Mode
None
None
None
None
N/A
N/A
N/A
N/A
AR03.01
AR03.02
AR03.03
AR03.04
User creates a record of the Security Deposit Invoice. Receivable account is unique.
User verifies the record and completes the invoice.
Receive the money against the invoice and apply it against the invoice.
Create accounting and Transfer accounting entries to General Ledger.
System
System
System
System
Requirement Fulfillment using

ERP Approach(Y/N)
Y
Y
Y
Y
11
AR 04
Creation of Debit / Credit Memo
Marketing
NOC
Department Department
AR04 Creation of Debit / Credit Memo
Manual
Email
Customer Service
Status Report will
be prepared
Based on NOC
report Customer
Sales Order will be
amended.
Start
Finance Department
ERP
Auto Generated Debit/Credit Memo

Based on Amendment on Sales order
by marketing department debit /credit
memo will be created
The user verifies the Debit / Credit
Memo and completes the same
Manual Debit / Credit Memo
Based on Approval Debit/credit memo
Reference of the Invoice can be taken
at the time of creation of Invoice.
End
The Credit / Debit Memo is adjusted with the

Receivable Invoices during receipts from
Customer. Please refer to
AR05 Receipt Creation
The Credit/ Debit Memo invoice is sent to

the customer.
12
RAILTEL
Process: Creation of Debit / Credit Memo

Receivables
Mapping Team: Wipro
Date: 14-Jan-2013
Description: This process explains the process of Creation of Debit Memo / Credit Memo Invoices
Event
Description: This process is triggered when the Credit Memo / Debit Memo Invoices are entered in the system. The Credit Memo and
Debit memo invoices are passed to adjust the provisional pass through entries passed every Month.
AS IS Process
AS IS
Process
ID#
Process ID
#
FIN_AR_INVOICING
AR04.01
FIN_AR_INVOICING
AR04.02
FIN_AR_INVOICING
AR04.03
FIN_AR_INVOICING
AR04.04
FIN_AR_INVOICING
AR04.05
Description
Mode
using ERP Approach
From the inputs of Marketing Department Team the Finance user

creates the Credit Memo / Debit Memo.
Reference of the Invoice can be taken at the time of creation of
Debit/Credit Memo.
After verifying the Invoice and tax details, User completes the
transaction and Create accounting entries.
Apply the Credit Memo to a standard AR invoice. Debit Memo
invoices are adjusted against receipts
The Invoice is sent to the Collections department which is in turn sent
to the customer.
System
System
System
System
System
13
14
AR 05
Receipt Creation
AR05 Receipt Creation
Start
ERP
Collection Process is Initiated to

capture Receipt and the related
information
Manual
Email
The Un-cleared receipt

information is passed to
the Collections
department
Query sent to the

customer for
Information
The customer is
intimated about
the receipt
Query
Information
Automated/
Manual?
Manual
The Customers
Cheques / Receipt
is sent to the bank
for collection
Receipt is
cleared in
the bank
No
Receipt Entry is
Reversed
Finance Department
Yes
On Account
receipt
No
Apply to the invoice when invoice

information is available. Debit /credit
Memo Will be adjusted Please Refer
AR04 Debit / Credit Memo Process.
AR06 Adjustment Process
Automated
Receipt Status is
updated as
cleared.
Receipt has
the invoice
information
Yes
The Receipt is applied to the related invoices.

Please Refer
AR04 Debit / Credit Memo Process.
AR06 Adjustment Process
End
15
RAILTEL
Process: Receipts Creation

Receivables
Mapping Team: Wipro
Date: 14-Jan-2013
Description: This process explains the process of Creation of Receipts
Event
Description: This process is triggered when the Receipts are entered in the system
AS IS PROCESS
AS IS ID
Process
ID #
Description
Mode
Requirement
Fulfillment using ERP
Approach(Y/N)
FIN_AR_COLLECTION_PROCESSING
1-3
AR05.01
Collection Process is Initiated to capture Receipt and the related

information
System
13
AR05.02
System
13
AR05.03
System
13
AR05.04
System
1-3
AR05.05
Receipt is Created. If invoice information is available for the

receipt, it is captured at the time of receipt Creation.
The status of the receipt is updated as per the bank clearing
process involved.
Once the receipt is in the cleared status, the receipt is applied to
the related invoices or kept in the unapplied status pending for
information. Advance receipts are kept in the on-account status.
If the Receipt is not cleared or Invoice details required for applying
the receipts, the communication is sent to the collections
department.
System
16
AR 06
Adjustment Process
RAILTEL
Process: Adjustment Process

Receivables
Mapping Team: Wipro
Date: 14-Jan-2013
Description: This process explains the process of Adjusting the Invoices in exceptional cases.
Event
Description: This process is triggered when Invoice Adjustments are required to be performed. Invoice adjustments are performed for
bad debts, agreed differences and for correction of minor differences between the invoices and the receipts.
Source: RAILTEL - Finance Team
AS IS
PROCESS
AS IS ID
Process ID #
None
None
N/A
N/A
AR06.01
AR06.02
None
N/A
AR06.03
None
N/A
AR06.05
Description
Mode
The invoice which needs to be adjusted is selected.

Based on the schedule of Powers, the users will be able to adjust
invoices as per their approved limit.
The User enters the details of the adjustments, the amount to be
adjusted and the dates of the adjustment
Create accounting and Transfer entries to GL are performed if required
System
using ERP Approach(Y/N)
System
Y
Y
System
System
17
AR 07
Service Tax
Sales Order will be

Created. Tax
information will be
as per the Item.
Service
Commissioned &
sales is Executed
Sales Order Invoice
Start
Sales Order
Invoice or Non
Sales Order
Invoice
?
Non sales Order
AR Invoice Created / Refer

AR 02 Invoice Creation
Collection received from

Customer refer
AR 05 Receipt Process
End
Finance
Finance
(GeneralLedger)
Ledger)
(General
Finance
Finance
(AccountsReceivables)
Receivables)
(Accounts
MarketingDepartment
Department
Marketing
AR07 Service Tax
Service Tax Liability Will be Creadited
Service Tax Interim Liability Will be Credited
18
Process: Service Tax

Business Function: RAILTEL -Accounts

Receivables
Mapping Team: Wipro
Description: This process covers the Generation & Settlement of Service Tax.
Event
Description: This process is triggered when the Service Tax is recorded in the system
AS IS
Process
AS IS
ID #
Process
ID #
None
None
N/A
N/A
AP07.01
AP07.02
None
N/A
AP07.03
Date:14-Jan-2013
Process Owner: RAILTEL Finance Team
Description
Mode
using ERP
Approach(Y/N)
Service tax rate will be defined System as per Current Tax Rate by Law.
The Service tax attached to the Sales Order / Manual Invoice. Service Tax is captured at Sales
Order / Manual Invoice level. Service Tax information is capture at this level as per new
guidelines.
After Settlement Process If it is payable then Payables Invoice will be created and will be paid.
System
System
Y
Y
System
19
AR 08
Period Close Process
AR 08 Period Close Process
ERP
Start
No
Finance Department
Finance
Department to
initiate the closing
process
Invoices and payment

entries complete?
Close the AR
Accounting Period
Manual
Email
Complete the
details (Validate &
Account)
AR Accounting is
Transferred to GL
Yes
Preparation of
Monthly reports
End
20
RAILTEL
Process: Period Close Process

Receivables
Mapping Team: Wipro
Date: 14-Jan-2013
Process Owner: RAILTEL -Finance team
Description: This process explains the process of AR Period Closing
Event
Description: This process is triggered when AR Period Closing Process is performed in the system
AS IS
Process
AS IS
Process
ID#
Process
ID #
None
None
None
NA
NA
NA
AR08.01
AR08.02
AR08.03
None
None
NA
NA
AR08.04
AR08.05
Description
Mode
Check & verify the completeness of all Transaction(Invoice & Receipt)

After Verified Completeness, Correction will be Validated & accounted
All the transactions i.e. invoice and payments will be transferred to Main Ledger (General
ledger).
Preparation of Reports from Receivables
Close the period.
System
Requirement Fulfillment using

ERP Approach(Y/N)
System
System
Y
Y
Y
System
System
Y
Y
21
Open and Closed Issues for this Deliverable

Open Issues
ID
Issue
Resolution
Responsibility
Target Date
Impact Date
Resolution
Responsibility
Target Date
Impact Date
Closed Issues
ID
Issue
2
3
4
5
6

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EAPM

Amit Modi/ Rana Nishant k Singh

Amit Modi / Rana Nishant

Wipro Project Manager

Sh. Rahul Aggrawal

Sh. Anuj Kumar

Sh. Kumar Bachchan

Sr. Manager DNM

RailTel Project Parivartan Steering Committee

Company Confidential - For internal use only

Document Control .....................................................................................................................ii

Supplier Creation .................................................................................................. 5

Open and Closed Issues for this Deliverable ............................................................................ 21

Company Confidential - For internal use only

Company Confidential - For internal use only

How this document is organized

Complete process flow

Unique number for the sub-processes within the main

Key Requirements from the above process

Requirement Fulfillment using ERP Approach

Solution Type & Description: Used to designate type of solution. The

Navigation Path: The path to navigate to the relevant functionality in

Note: The texts in grey shade are optional activities.

Company Confidential - For internal use only

Accounts Receivable Process

Enter Invoices Manual

Transfer to General Ledger

Print and Send

Company Confidential - For internal use only

AR01 Customer Creation

Marketing Department (Initiator)

Customer Is Available or not ?

Customer is Created by entering

Email of Customer Creation

Company Confidential - For internal use only

Business Function: RAILTEL Accounts

Company Confidential - For internal use only

SALES CONTRACT is Prepared and SALES ORDER

Commercial Offer/ Demand Note

Invoice Automatically created based on

Standalone Invoice created for Railways

Verification & Correction

Print The Invoice & Sent

Company Confidential - For internal use only

Business Function: RAILTEL - Accounts

Process Number: AR02

Description: This process covers the creation of Invoices in the system

Invoices are created based on sales orders or

Company Confidential - For internal use only

using ERP Approach(Y/N)

Supplier Deposit from Supplier

AR 03 Security Deposit from customers

User enters the Deposit Invoice with

User to Complete the Deposit invoice

Receipt is applied to the

Company Confidential - For internal use only

The Security Deposit is

Business Function: RAILTEL - Accounts

Process Number: AR03

Company Confidential - For internal use only

Requirement Fulfillment using

Creation of Debit / Credit Memo

AR04 Creation of Debit / Credit Memo

Auto Generated Debit/Credit Memo