SAP-TO BE Process

New Allenberrry Works

FICO NAW
Finance and Controlling

Version 1.0
28.09.2006

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This document is the property of Caritor, Inc. No part of this
document shall be reproduced, stored in a retrieval system,
or transmitted by any means, electronic, mechanical,
photocopying, recording, or otherwise without prior written
permission from Caritor, Inc.

Table of Contents

Table of Contents
Bank Reconciliation................................................................................................................................3
1. AS IS Process........................................................................................................................................4
2. Core to Be Process...........................................................................................................................5
Changes to Existing Organization..........................................................................................................................8
Description of Improvements and Key Metrics.......................................................................................................8
Notes on Further Improvements.............................................................................................................................8
Functional Deficit and Method to Remove That......................................................................................................8
Interface Requirement............................................................................................................................................8
System Configuration Considerations....................................................................................................................8
File Conversion Considerations..............................................................................................................................8
Any reports required related to current business process......................................................................................8
Any document/output would be printed for this business process..........................................................................9
Authorization Considerations..................................................................................................................................9
End User Training Requirements............................................................................................................................9

A. SAP Standard Reports..........................................................................................................................10

B. Custom Developments.........................................................................................................................11

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SAP-TO BE Process
Bank Reconciliation
TO-BE Document
For SAP R/3 Implementation at New Allenberry Works.
Date: 28.09 2006
Sr. No of TO BE document

13

Ref. Sr. No. Of AS-IS document

Name of Business Process:

Bank Reconciliation

Module: Finance

Sub module: Bank

Version no of document:

Date: 28.09.2006

Version Management This Document is subject to change control. Every change of the document has to Undergo change
control procedure and has to be registered in the following table
Version

Caritor

Change

Prepared By

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Date

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SAP-TO BE Process
1. AS IS Process
After all the advices has been accounted and pass sheet has been received from the
banks, they are compared with the bank book in the legacy system to identify the list
of entries not posted into the bank book or visa versa. From those transactions
identified, which are not reflected in either of the statements, they are listed out and
their subsequent dates of clearing are mentioned. There after a statement is
prepared reconciling the balances between bank book and pass sheet.

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SAP-TO BE Process
2. Core to Be Process
The Bank accounting component of SAP R/3 will be used to handle the incoming
and outgoing payment transactions and bank reconciliation activities. The bank
accounting components will maintain a bank directory containing the master data
for all the banks required for payment transactions with all business partners.
House Bank:
House Bank contains the Master details of the Bank against which you have the
a/c. The House Bank has Account ID assigned to it, which will specify the exact
Bank A/C, which the company has against that House Bank. The relationship is
One to Many for House Bank vs Account ID.
SAP provides a unique facility of maintaining three different accounts in system
for a single bank account. These accounts are the main bank account, the
incoming cheques account and the outgoing cheques account. This accounting
mechanism delivers a structured approach towards payment, receipt and bank
reconciliation activities. Thus at any point of time the balance in incoming and
outgoing cheques account will be the reconciliation items for that particular bank
account.
Entries
Following is the scheme of entries during cheque deposit and payment activities
At the time of cheque deposit
DR

Incoming Cheques

xxxx

CR

Customer

xxxx

At the time of payment

DR vendor

xxxx

CR Outgoing Cheques

xxxx

The Manual Bank Statement facility of SAP R/3 will be used for manual entry and
reconciliation of bank accounts with the received bank statements. Bank interest
and bank charges will be booked at the time of uploading of bank reconciliation
statement. At this time, expense or income accounts will be debited / credited

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SAP-TO BE Process
and corresponding offsetting postings will be carried out in the main bank
account. The scheme of accounting entries during bank reconciliation will be as
follows
For outgoing cheques
DR Outgoing cheques

xxxx

CR Main Bank

xxxx

For incoming cheques

DR Main Bank

xxxx

CR Incoming cheques

xxxx

Business Transactions and Posting rules

Specific business transactions rules will be configured that determines the
posting rules for general ledger and sub ledger accounting. These posting rules
will represent the typical cheque deposit functions required by the organization
(cheque deposit with customer invoice reference and cheque deposit without
customer invoice reference). Similarly, bank reconciliation will be carried out with
specific business transactions with corresponding account posting rules. The
matching criteria for bank reconciliation will be cheque no / check deposit list no /
amount.
Eight Bank Statement Business Transactions have been defined in the SAP system
NIC NAW Incoming with Clearing
NIO NAW Incoming On Account
NOC NAW Outgoing with Clearing
NOO NAW Outgoing On Account
NFI Bank Charges (Finance)
NGU Bank Charges (Guarantee)
NLC Bank Charges (LC)
NOT Bank Charges (Others)

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SAP-TO BE Process
The number of business transactions needed will be elaborated more during the
progress of the project.
Bank reconciliation:
The functionality of House Bank, Business transactions & its posting rules and manual
upload of bank statement will clear the cheque receipts and cheque payments from
incoming and outgoing clearing GLs automatically. The remaining line items in bank
clearing GLs to be analysed and clear them manually.
The option of uploading of Bank statement received from Bank into SAP (After properly
formatting in excel sheet) will be discussed during the progress of the project.

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SAP-TO BE Process

Further Notes

Changes to Existing Organization

The present system of maintaining bank accounts in one ledger changes to
maintaining in three ledgers comprising of main account, incoming account and
outgoing account.

Description of Improvements and Key Metrics

Simplified method for Bank Reconciliation Statement

Notes on Further Improvements

NA

Functional Deficit and Method to Remove That

NA

Interface Requirement
NA

System Configuration Considerations

NA

File Conversion Considerations

NA

Any reports required related to current business process

NA

Any document/output would be printed for this business process

NA

Authorization Considerations
Detailed Authorization matrix will be defined for all users in the common file for all modules.

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SAP-TO BE Process
The high level Authorization requirements are as below.
Business Roles

Number of Users

Business Manager
Operations Manager
Transaction Owners

End User Training Requirements

<E.g.:
Business User Segments

Number of Users

Type of Transaction

Business Manager

Display, Reports

Operations Manager

Change, Display, Reports

Transaction Owners

Create, Display, Reports

Geographical Location

Sign-off (Approval) for this document:

Name of Team members:

Organization / Bus. Unit

FI/CO Consultant-Vinod Atmakuri

Caritor Inc

Business Process Owners-C.M Duggar

New Allenberry Works

Key User-Balbir Khanna

New Allenberry Works

Key User-Vishal Sharma

New Allenberry Works

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Signature

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SAP-TO BE Process

A. SAP Standard Reports

<E.g.:
SAP Standard Reports
Sl No:
01

Report Description

Selection Criteria

Display list of House banks

FI13

Output
Screen View/Output

02
03
04
05
06
07
08
09
10
11

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SAP-TO BE Process

B. Custom Developments
<E.g.:
Print Requirements
Sl No:

Report Description

Selection Criteria

Output

1.0
2.0

Development Requirements
Sl No:

Report Description

Selection Criteria

Output

1.0

Report Requirements
Sl No:

Report Description

Selection Criteria

Output

1.
2.
3.

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