Professional Documents
Culture Documents
Nile Air
SAP Implementation Project
Process Definition Document (PDD)
Submission Date-03.07.2016
DOCUMENT CONTROL
Process ID
FI0104
Business Area
FI
Scenario
Bank
Process Name
Version
Revision Date
V0101
(MM/DD/YYYY)
03.07.2016
Revision Description
Author
Ahmed Hamouda
V0102
Name
Business Area
Document
Date
Version No.
(MM/DD/YYYY)
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Process Definition Document
Sign Off
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Process Definition Document
TERMINOLOGY
Term
/ Description
Abbr.
Company
Code
(CoCd)
Chart of
Accounts
(COA)
Controlling
Area
Parking
document
You can use document parking to enter and store (park) incomplete
documents in the SAP System without carrying out extensive entry checks.
Parked documents can be completed, checked, and then posted at a later
date - if necessary by a different accounting clerk.
Profit Center
AP
Accounts Payables
AR
Accounts Receivables
AA
Asset Accounting
GL
General Ledger
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Process Definition Document
Table of Contents
Contents
1
INTRODUCTION..................................................................................................................................... 5
1.1
Executive Summary......................................................................................................................... 6
1.2
Solution Overview............................................................................................................................ 6
4.2
Checks Processes......................................................................................................................... 14
4.2.1.
4.2.2.1
4.2.3.1
4.2.7
SAP REPORTS.................................................................................................................................... 25
CLOSING ACTIVITIES......................................................................................................................... 25
INTEGRATION POINTS....................................................................................................................... 25
FUNCTIONALITY GAPS...................................................................................................................... 26
10
ROLES.............................................................................................................................................. 26
11
ACCOUNTING........................................................................................................................................... 27
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Process Definition Document
1 Introduction
This document states all of the conceptual results of the project Nile Air.
These project results were devised and decided on by the project team and
the department experts from customer Nile Air during the Business Blueprint
project phase.
This is the main concept document of the project. It is supplemented by
separate specifications for custom developments.
The content of this document forms the basis and the guidelines for the
subsequent Realization phase.
This document aims to describe the future business solution based on SAP
software.
Both, IT subjects and organizational issues that are required to understand
the situation, are described in it.
Any additional explanations that are only relevant when the project is in
progress are given in the various project management plan documents, which
the project management team will provide on request.
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Process Definition Document
CLEINT
Accounts
Accounts
Chart
Chart of
of
Depreciation
Depreciation
Company
NileAir
NileAir
Company Code
1000
1000
This section will introduce the Organizational Structure Unit, its purpose and
major characteristics for the business.
Company is an organizational unit in Accounting which represents a
business organization according to the requirements of commercial law
in a particular country.
A company can consist of more than company code, all the company
codes within the company use the same chart of accounts.
Naming Convention
Company Code is Four Alpha Numeric Characters.
Chart Of Accounts
It is a classification scheme consisting of a group of (G/L) accounts.
The operating chart of accounts is shared by Financial Accounting as well as
Controlling.
The accounts in a chart of accounts can be both expense or revenue accounts
in Financial Accounting and cost or revenue elements in cost/revenue
accounting.
Nile Air Company will use One operating Chart of Accounts.
Naming Convention
Chart of Accounts is up to Four Alpha Numeric Characters, Naming Convention
that will be used is Abbreviation of Nile Air Company.
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Process Definition Document
For a company code we need to define its House banks. These are an
equivalent of the real banks that the company operates with.
For every house bank there are defined one (or more) bank accounts - these
are simply our bank accounts per house bank.
The bank account data contains the number of the account at the bank, the
account currency and the G/L account which reflects the postings on your
bank account in the general ledger.
For each bank account, a G/L account must be created. This G/L account is
assigned to the bank account and vice versa. Both accounts have to have the
same account currency.
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Process Definition Document
Day-to-Day Activities
The system allows you to process bills. For example, it supports the use of portfolios to store bills,
and automatically creates transaction records.
For monitoring purposes, you can use the system to call up a list of your bills of exchange. In
addition, you can also display each bill's history.
Definition
A collection of bills of exchange (or checks)
Use
Typically, each branch office of a business or a bank has its own portfolios, possibly
with separate portfolios for long- and short-term bills respectively. Furthermore, you
must store bounced instruments separately from others.
In the system, you can define any number of portfolios, depending on how you want
to organize your bills.
Day-to-Day Activities:
When you enter or process a bill of exchange in the system, you specify which portfolio the bill is
stored in. The system then assigns it that portfolio and posts the bill to the appropriate G/L
accounts.
A customer sends you a bill of exchange by means of payment. When you enter it in the system,
you specify which portfolio you want to store it in, and the system automatically debits it to the
account that you have specified. Similarly, when you send the bill to the bank for collection, the
system removes it from the account.
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Process Definition Document
Firstly, The Financial Accountant will prepare the Check lot Request then it will be
submitted to FI Administrator
Secondly, The FI Administrator will verify the documents then it will be submitted to the
Senior Accountant
After the Financial Manager enters the Company code segment, House bank and bank
ID, the check lot will be approved.
Lastly The SAP Administrator will create the check lot on the system.
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Process Definition Document
The Financial Accountant has a request to display the check register, He will check if he has the
authority to display the register therefore he will process to access the display check.
The Financial Accountant will log on SAP System and He will enter the company code, house bank
& Account ID.
4.2.3
The Financial Accountant has a request to void a check, He will check if he has the authority to
void the check therefore he will process to access the voiding check display.
The Financial Accountant will log on SAP System and He will enter the company code, house
bank, Account ID, Reversal Reason and the check number which needs to be voided then execute
the document.
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Process Definition Document
4.2.4
Voiding Checks
The Financial Accountant has a request to void check with reversal document, he will process o
access the voiding check display by entering the company code, house bank, Account ID, Reversal
Reason, the check number, Reversal Date and the posting date too.
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Process Definition Document
All outgoing payments, in which payment media is check, will initially be posted to Outgoing Clearing Check
Account which will be the sub ledger account of Main Bank Account. Once Vendor presented the check in
the Bank, posting from Outgoing Clearing Check Account will be transferred to main Bank Account.
Following entries will be posted at the time of payment and at the time of check encashment:
Payment Entry
Dr
Vendor
Cr
Check Encashment
Dr
Outgoing Clearing Account
Cr
Check Encashment entry will be posted in the system automatically once user enters the details in the
system of the check which is encased in the bank. This information user can enter on a daily, weekly or
monthly basis.
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Process Definition Document
First the company will receive a bank statement on a monthly basis recording all the transactions that
have been made on the bank account with all the bank expenses as a result from this transaction from the
bank side.
Then the responsible person in FI will print the bank G/L account from SAP system with all the transactions
on this reconciliation period.
Update manually the General Ledger with any Journal entry required from reconciliation through the
manual bank statement in SAP.
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Process Definition Document
Use
The procedure for entering a bill of exchange as a customer payment in the system is similar to that in
other countries.
However, you are also required to specify which portfolio you want to post the bill to, the bill's external
number, and the bank account of the original maker of the bill. The system also prints out a record of the
transaction.
Result
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Process Definition Document
This document clears the invoice by crediting accounts receivable, and creates a new open item on
bills of exchange receivable account also SAP allows to post the incoming checks directly on
Customer account without clear or process it against open items.
It also sets the document's baseline date to the bill's due date. If you post more than one bill in a
single document, however, it calculates the baseline date as the average due date of all the bills,
but weighted according to how much each bill is worth. For example, if you enter one bill due 31
July and another 31 August, both worth the same, the system sets the baseline date to 15 August.
The system uses this date when you.
The system also prints out a transaction record, which you file away for future reference, and generates an
electronic file with the details of the bills to be presented to the bank.
You send the bills and the electronic file to the bank.
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Process Definition Document
When the bank receives the bill, it puts it in safekeeping. On the due date, it clears the bill, transfers the
money to your account (less any collection charges), and notifies you accordingly.
When you receive the banks notification, you record the transaction in the system.
The system creates two accounting documents to post the bill:
One document to remove the bill from the interim account and debit it to your bank account, as
follows:
One document to remove the contingent liability from the liability account and the bill from the bills
of exchange receivable account:
Prerequisites
You have received a bill and presented it to a bank for collection.
The system has created the following accounting documents:
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Process Definition Document
The bill's due date has now elapsed and the drawee has refused to pay the bill the bill has bounced.
When you receive the banks notification that the bill has bounced, you record the transaction in the
system
The system creates two accounting documents to post the bill:
One document to remove the bill from the bill of exchange liability account and from the bill of
exchange receivable account:
One document to remove the bill from the interim account and add it to an account for bounced
bills:
The system also prints out a transaction record, which you file away for future reference.
2. You contact the customer to find out how it intends to pay. Once you have come to an agreement, you
can clear the bounced bill from the system.
The system creates an accounting document to remove the bounced bill and reopen the invoice:
Result
The only open item that you have is the new invoice in accounts receivable. All other items have been
cleared.
Purpose
This process describes how you record the transfer of a bill of exchange from one portfolio to another, a
procedure that typically involves one branch of a company sending a bill to another by mail. A two-step
procedure is needed, which stipulate that portfolios in transit must be accounted for.
Prerequisites
You have already entered the bill of exchange receivable, and the system has created the following
document:
The system also prints out a transaction record, which you file away for future reference.
When the branch notifies you that the bill has arrived, you record the transaction in the system.
The system creates two accounting documents. The first reverses the original payment document and also
the contingent liability:
The second creates a new payment document in the special G/L account used for the new portfolio, and
reverses the bills of exchange in transit posting:
Process Step
Ref. to
Measure of
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Process Definition Document
Solution
GAP
Description
001
Requirement
s
as applicable
Enter incoming
Payment (Check)
successful
delivery
Incoming
Portfolio
is posted by
check
002
Present Check to
Bank
Portfolio
003
Portfolio
004
Portfolio
005
Change/ Display
Document
Value
Date Changed
Change
the Value
Date
SAP Reports
Reporting
Report Title
Transaction code
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Process Definition Document
Description
FTR02
FCHN
Closing Activities
No month and year end closing activities need to be performed for Bank
Accounting and Cash Management.
Integration Points
Cash Management has integration with FI, MM, and SD Module. Most of the
Data of Cash Management comes from other module. For Liquidity Forecasting
Cash Management Group need to be assigned to Business Partner (Vendor,
Customer) master record. So on the basis of Payment terms system determine
the cash inflow and outflow dates.
Company Code.
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Process Definition Document
Functionality Gaps
Business
Requirement
Nil
Description
Mitigation/Alternative
Nil
Nil
10 Roles
The addition or changes to Policies and Procedures will impact Roles.
Finance Department in conjunction with ECC consultants will provide to the
team Organization Charts, Job Role/Position Descriptions. The ECC's Basis
team will map Standard SAP Roles.
Role
Description
Responsibilities
Different roles will be created in the system to restrict the users to specific
application area. It will be decided later
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Process Definition Document