Topic Sub Topic

Organization
Structure

Business
Areas

Chart of
Accounts
Consolidation

Financial
Application
Master
Records - GL
Accounts

General
Ledger
Transaction
Processing

Closing
Master
Records -
Customers
(AR)
Customer
Transaction
Processing
Outgoing
Invoices

Incoming
Payments
Dunning

Master
Records -
Vendors (AP)
 Vendor
Transaction
Processing

Outgoing
Payments
Master
Records -
Banks
Cash and
Liquidity
Management

Taxes

Currencies
Planning/Bud
geting

Reporting

Consolidation

Corresponden
ce

Asset
Accounting
Handling Fixed
Assets

Asset Acquisition

Depreciation

Depreciation Posting

Settlement of Asset
under Construction
Post-capitalization

Reposting

Retirements
 Closing Operations

Multiple Valuations

Integrated Planning
in CO

Reports
Questions

Whatarethelegalentitiesthatconstituteyourbusiness?

Do you produce a Profit and Loss Statement and a complete Balance Sheet with
retained earnings for each legal entity? (If a complete balance sheet including
equity section is not produced, then it is not a company.)
Does each legal entity have a separate Federal tax ID Number?
Which of these entities are true operating companies that transact business at
arms length with vendors and customers?
Which of these entities are holding companies?
What is your percentage of ownership for each legal entity?
Does one entity supply customers with products valued as inventory under another
entity so revenue is reported in the selling entity though the cost (inventory)
resides in elsewhere?
In which currency does each legal entity operate?
When does each legal entitys fiscal year begin?

For each legal entity, list the number of periods (both accounting and special
periods) used. Include the beginning and ending dates for each period.

A business area is a special economic unit within a company code for which internal
balance sheet and profit and loss statements can be created.
Are you subject to segment reporting in accordance with FAS14?
If your answer is yes, identify your industry segments.
If not, do you generate a Profit and Loss Statement including Earnings before Taxes,
and a complete balance sheet (exclusive of Retained Earnings) for any component
of your company (for example, division)?.
Does each company code have its own operating chart of accounts with a unique
numbering convention, or do all companies use a common chart of accounts with a
consistent numbering scheme?
If each company has its own operating chart of accounts, are they mapped to a
consolidation/corporate chart of accounts for reporting?
Are any of the companies required to report in a statutory chart of accounts? (For
example, France, Germany, etc.)

Do these companies use the statutory chart of accounts as their primary operating
chart of accounts (i.e., all posting and account analysis is made using the statutory
account code), or do they use the statutory chart for reporting only?

Identify the different levels of Consolidation (e.g., by Country, by Region, etc.):

Please list the external financial views of your organization by which you would
expect to produce complete Profit and Loss Statements and Balance Sheets. (Legal
entity, country, regions, continents, etc.)
How many general ledger accounts do you currently have?
Describe your current general ledger account number (for example, division, cost
center, natural account, expense code).
Identify the current system used to generate consolidated financial statements
Which of your legal entities represent a minority interest?
How many monthly elimination entries do you have?

Identify any situations where inventory is transferred between companies, such

that profit/loss in inventory that has to be eliminated on the consolidated books. ?

general ledger account creation and maintenance- Will it be done at the company
level or the corporate level? ?

How many retained earnings accounts do you maintain per company code?

How many reconciliation (control) accounts do you need for each sub-ledger?
Do you retain line item detail (open item managed) for every general ledger
account? If not, what are the exceptions?

What types of general ledger transactions do you process? General Journals

Recurring Journals
Accruals/Deferrals
Inter-company transactions Incoming payments
Outgoing payments
Down Payments
Bills of exchange

What is the current structure of your general ledger transaction number?

How is the number assigned by your current system?
Internally
Externally
Are your transaction numbers specific to fiscal year, or do they flow from year to
year?
Do you have a need for repetitive or model journal entries?
What types of reversing journal entries do you have?
Do you calculate interest on any general ledger accounts?
Do journal entries require any type of approval before they are posted to the
general ledger?
Describe your current process for reconciling sub-ledgers (accounts receivable,
accounts payable, fixed assets) with your general ledger. ?

Describe any special requirements to posting to particular general ledger accounts

(for example, expense accounts require an associated cost center).
Describe your period-end closing process
Describe your Year-end closing process
When do you close current posting period? Always on same date
When required
On certain day of next month
Date for GL accounting
Date for AR accounting
Date for AP accounting
How do you carry out reconciliation in accounting?
Manually
Automatically
How frequently the reconcilation is done
Daily
Weekly
Monthly
Which evaluations belong to month-end closing?
Balance audit trail
Open item list
Balance List
Advance return for tax on sales and purchases
Balance Sheet
Profit and Loss statement
When do you close current fiscal year?
Always on same date
When required
On certain month
Date for GL accounting
Date for AR accounting
Date for AP accounting
Which evaluations belong to year-end closing?
Balance audit trail
Open item list
Balance List
Advance return for tax on sales and purchases
Balance Sheet
Profit and Loss statement

How many customer master records do you currently have?

What is the current structure of your customer number?

Is the number internally assigned by stytem or externally assigned by a user?

How the clasiffication is done in current sytem for customer - like Local cutomer,
Foreign customer etc
What types of customer master records are there?
Domestic Goods & Invoice recipients
Abroad Goods & Invoice recipients
Branches / Head Offices Agents / Sales Reps
Commission Recipients
One-Time Customers
Employees
Do you have any customers who are also vendors?
Do you have one-time customers (customers with whom you expect to do business
only once)?
List the payment terms that you offer your customers (for example, 2% discount if
paid within 10 days, net amount due in 30 days). ?
Do you have holdback/retainage agreements with your customers?

Do you have agreements with customers which call for installment payments?
Have you defined acceptable ranges (tolerances) within which your customer
payments can deviate from the amount billed to them?
Does your company perform credit management on customers? If so, please
describe the credit management process in detail. ?
Do you perform dunning (reminder letters for overdue amounts) for your
customers? If so, please share the process in details
Are any security access authorizations is there?
Company Related
Department Related
Personnel Related
Master Record Related
Field Related
Field-Group Related
What criteria are there for deleting a customer master?
No open items
No transactions for more than 1 year
No transactions for 2 years
No transactions for 3 years

What types of customer transactions do you process (for example, customer

invoices, credit memos, customer payments)?
What is the current structure of your transaction numbering?
Manually Assigned
Automatically Generated
Are your transaction numbers specific to fiscal year, or do they flow from year to
year?
Are there foreign currency transactions?

Do you receive down payments (advance payments) from your customers?

Do you charge customers interest on overdue amounts?
If yes, is interest calculated on balances or days overdue?
Do customer invoices require any type of approval before they are posted to the
general ledger?
Describe any taxes which must be calculated on customer transactions.
Describe your cash receipts process (for example, manual, lock box).

Do you receive a single payment for multiple invoices from your customers?
How are payments matched to customer invoices?
What types of adjustments do you perform on customer invoices (for example,
adjustments for defective material, shipping damage)?
Is there certain information that you wish to be able to display when you view
customer entries online?
What types of daily, weekly, periodic, and ad hoc transaction reports do you need
for accounts receivable?
How do you compare documents with Sales & Distribution?
Number of documents
Total amounts
Other:

What information do you include in outgoing invoices?

Foreign Currency
Payment Terms
Tax on sales and purchases
Texts
Invoice Number
Cost Center
PO number
Project
Personnel number
Asset number
Tax ID number
Dunning indicator
Other

How do you make account assignments when manually entering invoices or credit
memos?
Account assignment stamp
Central Account assignment
Local Account assignment
in accounting
in sales
How do you process incoming payments?
Manually
Automatically
Both
What types of payment do you process?
Cash payments
Bank Transfers
Bills of exchange
Payment Wallets
Other
How do you process payment differences?
Difference is charged up to specific amount
Residual amount is carried forward
Grace period for cash discount deduction in days
What types of dunning notices do you use?
Notices as payment reminders
notices with dunning levels
account statements
What is dunning frequency
Weekly
Bi-weekly
Other
Do you dun various customer groups at different intervals?
Yes
No
When do you dun an account?
By due date for net payment
when grace period is exceeded
How many dunning levels do you have?
Do you calculate dunning charges or interest?
Dunning fees at dunning level
Interest at dunning level
Do you calculate dunning charges or interest?
Dunning fees at dunning level
Interest at dunning level
Do you vary the text on dunning notices?
by dunning level
by customer groups
Both

How many vendor master records do you currently have?

What is the current structure of your Vendor number?

Is the number internally assigned by stytem or externally assigned by a user?

How the clasiffication is done in current sytem for customer - like local vendors,
foreign vendors etc
Do you have any vendors who are also customers?
Do you have one-time vendors (vendors with whom you expect to do business only
once)?
List the payment terms that Vendor offers to you (for example, 2% discount if paid
within 10 days, net amount due in 30 days).
Do you have holdback/retainage agreements with your vendors?

Do you have agreements with vendors that call for installment payments?
Have you defined acceptable ranges (tolerances) within which your vendor
payments can deviate from the amount billed to you?
What types of vendor transactions are currently being processed (for example,
vendor invoices, credit memos, vendor payments).
What is the current structure of the transaction number?
Is the number internally assigned by your current system, or externally assigned by
the user?
Are your current transaction numbers specific to fiscal year, or do they flow from
year to year?
Are there foreign currency vendor transactions?
Do you make down payments (advance payments) to your vendors?
Do vendor invoices require any type of approval before they are posted to the
general ledger?
Do your vendors charge interest on overdue payments?
If yes, is interest calculated on balances or days overdue?
Describe any taxes that must be calculated on vendor transactions.
Do you issue a single payment for multiple invoices from your vendors?
How are payments matched to vendor invoices?

How do you pay vendors?

Manually
Automatically
Both
Please describe the process:
How do you post outgoing payments?
To an outgoing payments clearing account
per payment method
per bank
per payment method & bank
What types of automatic payment do you process?
Checks
Bank Transfers
Postal Transfers
Bills of Exchange
Elimination w/ affiliated companies
Checks/bills of Exchange
Bank Transfers Abroad
Other
How often do you make payments?
Daily
Once a week
Twice a week
Three Times a week
Other
How is the payment method determined for automatic payments?
Indicator in Vendor Master
Indicator in Open Item document
Depending on Payment Amt.
Depending on number of items to be paid
How do you process cash discounts received?
Manual Posting
Automatic Posting
Additional account assignment to Cost Center of Products

How do you post exchange rate differences in foreign currency payments?

Manual Posting
Automatic Posting
Additional account assignment to cost center or products
When payment is made
In bank debit entry of payment
How do you plan funds?
In each payment run
by a single bank
by several banks
Do you optimize payment methods?
Optimization in bank transfers
Optimization in checks
No Optimization
How do you process vendor credit memos?
Are Due immediately
The value date is set as the due date
Can be invoice-related
How are payment media created?
Are down payments paid automatically?
Yes
No

Are receivables from a vendor who is also a customer considered during payment?
Manual Check
Automatic Clearing
No Clearing
Which evaluations do you have for accounts payable accounting?
Vendor List
List of Account Balances
Open Item List
Due Date List
Line Item List
Account Statement
Please list the banks with which your company has bank accounts (checking
accounts, payroll accounts, lockbox)
Please list the bank accounts within each of the above banks.
Are any of these accounts held in a foreign currency
Do you perform electronic funds transfers with your customers or vendors such that
you need to maintain their bank information? ?
How the reconcillation is done
Mannual
Automatic
In which format the file is received from Bank
Define process for reconcillation

Define Payment Methods for Payment Requests

For Cash Transaction how many curreienceies are used

Do you currently have an interface to any third-party tax packages

Do you charge sales tax on your sales?
If yes, on what types of sales?
Please list the States, Counties, Cities and/or Jurisdictions to which you remit sales
tax:
Do you have any international tax issues on your sales?
Are you charged taxes on:
Inventory Items
Assets
Expense items
Services
Any others? Please specify

List the local currency (operating currency) for each of your company code

Do you report in currencies other than the operating currencies of your companies?
Do you perform consolidated reporting (grouping more than one companys results)
in a different currency?

How do you currently maintain your exchange rates? For example, are they
manually entered into a table or downloaded from a service such as Dow Jones
What types of exchange rates do you maintain (for example, average rate, bank
buying rate, bank selling rate)?
Do you enter customer or vendor invoices in foreign currency?
If yes, how is the foreign currency rate determined?
Do you perform foreign currency re-valuations on either account balances (for
example, a bank account held in a foreign currency) or open items (unpaid items
for customers or vendors)?
Describe your foreign currency revaluation process and which valuation methods
you use

What type of financial planning/budgeting is currently performed (for example, by

company, by cost center, by product line)?
Please describe your planning process
Do you plan on a monthly, quarterly, half-yearly, or annual basis?
How do you distribute planned amounts to individual planning periods (for
example, equal distribution among periods, seasonal distribution)?

Does your planning take into consideration non-financial (statistical) data?

List the management reports that are currently used:

By which organizational units are management reporting functions structured (for
example, company, division, product line)?
Do yorun internal balance sheet or profit & loss reporting (Business Area by regions
or branches)?

Do you have group consolidation across companies?

Yes
No

Is consolidation performed in steps? Please describe the consolidation process

Do you have consolidation by Business Area?
Yes
No

Please list the types of correspondence that are currently produced for Accounts
Receivable and Accounts Payable (for example, dunning letters, account balance
statements, checks, payment advice)

Are any of your asset values managed in a foreign currency? If so, specify the
relevant countries and currencies.
Does the fiscal year for asset accounting correspond to the calendar year? If not,
specify the start and end dates of your fiscal year.
Is your enterprise currently using a shortened fiscal year, or you have used a
shortened fiscal year in the past, for which you want the R/3 System to recalculate
depreciation as part of the asset data transfer
Is your enterprise required to calculate mid-month or mid-year depreciation

Do you need to manage and depreciate certain parts of your asset portfolio in the
form of group assets
Who is responsible for creating asset maser records? Who provides which
information?
Which organizational units and/or which functional areas have authorization for
creating or displaying asset master records?
The asset master record can be divided up into tab pages. How should the asset
master record field groups be ordered for your organization?
In your enterprise, who has authorization to change asset master records? For
which areas? Are these authorized individuals different from those who create the
master records?
How often is it necessary to change your asset master records? Which parts of the
asset master record are most often affected
Are there certain asset master record fields that need to be protected against
changes? If so, which fields?

Do you need to make changes to a large number of assets simultaneously?

If yes, what wil be the approval process and authorised person

Capitalisation Assets under Construction

Direct Capitalization
External Asset Acquisitions
Processing Asset Acquisitions in Purchasing
What are the methods of depreciation that you are currently using
Do you calculate depreciation values to the day
In certain cases do you change over from a declining-balance depreciation to
straight-line depreciation? If so, when?
Do you allow negative depreciation for certain assets or categories of assets? If so,
please specify
Do you distinguish between a fixed and a variable depreciation portion
How do you handle the period control for depreciation values

Is it necessary, from a business point of view, to post depreciation directly to cost

accounting? If so, which receivers are to be debited (for example, cost centers,
internal orders)?
How often do you intend to post depreciation to the general ledger and to cost
accounting?
Do you post depreciation to assets under construction?
To which account(s) is depreciation posted?
Do you show interest only in reports, or do you want to post interest directly to cost
accounting?
Do you manage "Assets under construction" in Asset Accounting? If yes, describe
the capitalization process
What is the timing for the capitalization process
With respect to capitalization, are you bound by specific laws

Is it possible that an asset under construction is capitalized as a low value asset?

Do you use summary settlement or line item settlement for assets under
construction?
To which receiver(s) do you settle assets under construction?
Do you use partial capitalization?
What kind of information flow do you have for when an investment measure is
completed and the asset under construction is ready for settlement to the final
asset?
Do you display down payments to assets under construction separately?

What kind of information flow do you have for the settlement of down payments?

What circumstances make post-capitalization necessary in your enterprise?

How do you post post-capitalization: - Gross, that is, with historical values (APC and
depreciation)- Net, that is, depreciation begins on the posting date using the net
book value.
Do the value of your assets appreciate, and if so, do your ledgers need to be
adjusted?
Describe the reasons for a fixed asset revaluation, the process used, and give
examples of the assets which are to be revaluated.

Is it necessary to transfer assets from one company code to another?

Do you sometimes split an asset into one or more new assets? If so, please specify.
Do you transfer between different asset classes? Give examples
Is the changing of an assigned cost center or a business area, for example, a
reason for a transfer posting?

How do you find out about necessary transfer postings in asset accounting?

How and when is asset accounting informed of the retirement of an asset?

Do you sell or transfer assets to affiliated/associated companies?

How do you process retirement of a low value asset (e.g. retirement with zero
value; retirement with revenue; account assignment for retirement with revenue)?
Who issues invoices for asset sales?
When retiring assets, is there ever a need to retire a large number of assets at the
same time?
If yes, how many assets are normally concerned? Please provide an example with
documents.
What activities are included in the month-end process for asset accounting?
Which internal and external asset valuations belong to month-end closing process?
Please provide a sample of all required valuations

What activities are included in the year-end closing process for asset accounting?
Which internal and external asset valuations belong to year-end closing process?
Please provide a sample of all required valuations
Do you have parallel valuation for your asset, e.g. for group valuation, for cost
accounting purposes or for legal reasons?
Do you have to valuate your assets in different currencies?
Is there a distinction necessary between book depreciation (for balance sheet) and
tax values (for a tax balance sheet)?

What is the relationship between investment measures and fixed assets in the
planning process?
Is your plan activity-dependent or not activity-dependent?

What types of daily, weekly, periodic, and ad hoc transaction reports do you need
for general ledger?
What types of daily, weekly, periodic, and ad hoc transaction reports do you need
for accounts receivable?
What types of daily, weekly, periodic, and ad hoc transaction reports do you need
for accounts payable?
What are the critical monthly, quarterly and annual reports that you execute for
Asset Accounting?
Which periodic reports do you carry out in general ledger accounting?
Which kind of reports do you use to reconcile asset accounting with the general
ledger?
Are there any particular reports for low value assets?
How do you create your inventory lists? Do you use barcodes?
By which organizational units (or combinations of units) are asset reporting
functions structured (for example, company, cost center etc)?