bp080 accounts payables v1 0

EAPM

BP080 TO-BE PROCESS RAILTEL CORPORATION OF INDIA LIMITED

ACCOUNTS PAYABLES

Author: Amit Modi / Rana Nishant K Singh

Creation Date: 14-Jan-2013

Last Updated: 11-Mar-2013

Document Ref: RCIL-BP080-AP

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

CompanyConfidential - For internal use only

Document Control

Change Record 3

Date Author Version Change Reference

14-January-2013 Amit Modi / Rana Nishant Singh

0.1 Base Document

11-March-2013 Amit Modi / Rana Nishant Singh

1.0 Final Version

Reviewers

Name Position

Prithwish Chatterjee Wipro Project Manager

Swarup Ghosal Chaudhury Wipro Program Manager

Approver

Name Position Signature

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

Distribution

Copy No. Name Location

1 RailTel Project Parivartan Steering Committee Gurgaon

2 RailTel Project Parivartan Core Working Group Gurgaon

3 RailTel Project Parivartan Regional CWG New Delhi/Mumbai/Secunderabad/Kolkata

4 Wipro Onsite Team Gurgaon

5 Wipro Technical Team 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. The copy numbers referenced above should be written into the Copy Number space on the cover of each distributed copy. If the document is not controlled, you can delete this table, the Note To Holders, and the Copy Number label from the cover page.

iii


Contents

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

Introduction ............................................................................................................................... 1

About this Document.......................................................................................................... 1 How this document is organized ........................................................................................ 2 Generic Assumptions .......................................................................................................... 3

Payables Business Process ......................................................................................................... 4

AP 01 Supplier Creation .................................................................................................. 5 AP 02 Invoice Creation .................................................................................................... 7 AP 03 Recurring Invoices ................................................................................................. 9 AP 04 Advance Payment ............................................................................................... 11 AP 05 Payment Process ................................................................................................. 13 AP 06 Creation Debit / Credit Memo ............................................................................ 15 AP 07 Tax Definition ...................................................................................................... 17 AP 08 Tax Deduction at Source (TDS) ............................................................................ 18 AP 09 Work Contract Tax (WCT) ................................................................................... 20 AP 10 Service Tax .......................................................................................................... 22 AP 11 Period Close Process ........................................................................................... 24

Open and Closed Issues for this Deliverable ............................................................................ 26

Open Issues ....................................................................................................................... 26 Closed Issues ..................................................................................................................... 26

1


Introduction

About this Document

RAILTEL has appointed Wipro Limited to implement Oracle E-Business Suite. The implementation spans Human Resources, Financials, Manufacturing, 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 Payable flow that would be configured onto the Oracle E-Business Suite.

2


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 #: Unique number for the sub-processes within the main process.

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 Fulfilment 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.

3


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.

4


Payables Business Process

100,000

A/P

60,000

10,000

30,000

Validate invoice Enter / Maintain supplier

Receive Invoice from Supplier & Enter.Invoice(in case PO/LOA Invoices will be

created automatically)

Pay invoice

Create accounting entries

Transfer information to general ledger

5


AP 01 Supplier Creation

AP01 Supplier Creation

Oth

er

De

pa

rtm

en

tsF

ina

nc

e D

ep

art

me

nt

End

Any Department (Initiator)

PO-01- Online Purchase Requisition ProcessProjects & Procurement (Initiator)

PO-02- Purchase Requisition Process

Supplier Is Available or not ?

Start

No

Yes

Supplier Creation Form will be

Prepared & sent to Finance

department.

NoYes

Supplier is Created by entering

necessary information like

address , bank details PAN,TAN

etc..

Email sent of Supplier Creation

Sent to requestor

Verification of

Supplier Creation form.

Clarification Required ?

ManualERP Email

6


RAILTEL Process: Supplier Definition

Business Function: RAILTEL -Accounts Payable Date:14-Jan-2013

Control Number: AP01 Mapping Team: Wipro Process Owner: RAILTELFinance team

Process Number: AP01

Description:This process explains the process of defining the supplier in AP module

Event Description: This process is triggered whenever a new supplier has to be created in the system

Source: RAILTELFinance Team

AS IS Process

AS IS Process ID #

Process ID #

Description

Mode

Requirement Fulfilment using ERP Approach(Y/N)

None N/A AP01.01 Supplier Creation Form will be received from Any Department based on their requirement. System Y

None N/A AP01.02 Form is verified and if required clarification is taken from respective department. System Y

None N/A AP01.03 Create Supplier record in the system with appropriate classification, site information of address, contact details. Enter necessary Liability/Prepayment account of the supplier/Employee.Bank account number can be made as a mandatory field by a customization. Enter the Supplier additional information like PAN Number, Vendor Type Etc.

Internal-System

Y

None N/A AP01.04 Confirmation sent of supplier Creation sent to requestor. Internal-System

Y

7


AP 02 Invoice Creation

AP02 Invoice Creation

Fin

an

ce

De

pa

rtm

en

tO

the

r D

ep

art

me

nts

PO / RFQ /

Reimbursement

claim

Based on Approval as per SOP Standalone Invoice

will be created

The invoice is matched to PO/GRN depending on the

level of matching

Default Charge Accounts are verified and Tax codes (TDS,

WCT etc..) are entered.

Clarification

communication is sent

to respective

Department.

Accounting Process and Transfer to GL can be run for invoices separately or can be run

along with the period closing process . AP11 Period Close Process

END

No

Yes


PO-01- Online Purchase Requisition Process

IE04- Expense Claim Reimbursement

Projects & Procurement (Initiator)


The distribution charge account and Tax codes(TDS , WCT etc) will be entered./

Necessary Correction will be done.


Respective department will sent additional data or

clarification on mail to finance dept.

START

Invoice is verified & Validated & Accounted

Complete Invoice is Verified & Sent for Validation

No

Yes

Validation will create two separate

invoices. Please Refer

AP08 Tax Deduction at Source (TDS)

EmailManualERP

8


RAILTELProcess: Invoice Creation Business Function: RAILTEL -Accounts Payable Date:14-Jan-2013

Control Number: AP02 Mapping Team: Wipro Process Owner: RAILTELFinance Team

Process Number: AP02 Description: This process covers the creation of Standard invoice for Non Po related items like all expenses related payments.

Event Description: This process is triggered when supplier submits invoices which are PO or Non PO Based.


AS IS Process AS IS Process ID #

Process ID #

Description

Mode


FIN_AP_INVOICING 1 3 AP02.01 Receive the original invoice from any Department (Non PO Based expense) or from

Procurement Department (along with the PO) or Other Departments (along with Reimbursement Bills)

System Y

FIN_AP_INVOICING 1 3 AP02.02 Check whether it PO/RFQ/Employee Claim System Y FIN_AP_INVOICING 1 3 AP02.03 If Yes Match invoice with PO/bills , verify Default charge accounts & enter Tax (TDS, WCT etc.,)

details and sent for validation i.e. 1st

level approver System Y

FIN_AP_INVOICING 1 3 AP02.04 If No Create Standalone invoice Enter charge accounts & Tax (TDS, WCT etc.,) details and sent for validation i.e. 1

st level approver

System Y

FIN_AP_INVOICING 1 3 AP02.05 Invoice is validated and sent for accounting i.e. 2nd

level of approving and if not validated then Clarification communication is sent to respective Department.

System Y

FIN_AP_INVOICING 1 - 3 AP02.06 Invoice is Accounted and if not then will be revalidated. System Y

None NA AP02.07 Transfer the journal entries to General Ledger System Y

9


AP 03 Recurring Invoices

AP03 Recurring Invoices

Fin

an

ce D

ep

art

men

t

Define Recurring

Template

Define Special

CalendarStart

Please Refer

AP02.04 Invoice

Creation Process

Create the

Invoices for

various periods

Define Invoice details

like Supplier name ,

periods etc.

Manual EmailERP

10


RAILTEL Process: Recurring Invoices


Control Number: AP03 Mapping Team: Wipro Process Owner: RAILTEL Finance Team

Process Number: AP03 Description: This process covers the process flow for creation of Recurring InvoicesE.g. Rent, electricity payment.

Event Description: This process is triggered for creating Recurring Invoices


AS IS Process

AS IS Process ID #

Process ID #

Description

Mode


None NA AP03.01 Enter Monthly recurring invoice template of recurring payments. System Y

None NA AP03.02 Enter details like supplier name, supplier site, payment method, recurrence rule, amount per recurring period and other details.

System Y

None NA AP03.03 Invoices are created periodically as per the requirement. System Y

None NA AP03.04 Follow Invoice Creation Process AP02.04 System Y

11


AP 04 Advance Payment

AP04 Advance Payment

Oth

er

Dep

art

men

tF

inan

ce D

ep

art

men

t

The invoice is validated & Accounted

Start

The Advance payment is paid to the Suppliers

Account

The paid Prepayment Invoice is adjusted with the forthcoming invoices

Advance Payment details are recorded as a Prepayment Invoice. Tax information (TDS,WCT etc.) are

entered with other details

End

Request for Advance payment is received from Other

Department

Projects & Procurement (Initiator)



PO-01- Online Purchase Requisition Process

IE04- Expense Claim Reimbursement

Accounting Process and Transfer to GL can be run for invoices separately or can be run along

with the period closing process . AP11 Period Close Process

Manual EmailERP

12


RAILTEL Process: Advance Payment

Business Function: RAILTEL-Accounts Payable Date:14-Jan-2013



Description: This process covers the process flow for creation of prepayments, which are treated as advance payment to Suppliers/ employees.

Event

Description: This process is triggered when an authorization received from Purchase department/HR/Line managers to Make advance payment to the suppliers.


AS IS PROCESS AS IS Process ID #

Process ID #

Description

Mode


FIN_AP_INVOICING 5 AP04.01 Finance department receive a copy of Approved purchase orders with office memo

requesting finance to make the advance payment from other departments.

Manual Y

FIN_AP_INVOICING 5 AP04.02 Create Prepayment invoice. Enter details like supplier, supplier site, Purchase Order Number, pre-payment invoice number, invoice date, amount, distribution etc.

System Y

FIN_AP_INVOICING 5 AP04.03 Approve &Validate the Advance Invoice System Y

FIN_AP_INVOICING 5 AP04.04 The Advance is paid to the Suppliers Account System Y

FIN_AP_INVOICING 5 AP04.05 The Invoice is adjusted against the Advance Invoice. System Y

FIN_AP_INVOICING 5 AP04.06 Accounting Process and Transfer to GL can be run for invoices separately or can be run along

with the period closing process. AP12 Period Close Process.

System Y

13


AP 05 Payment Process

AP 05 Payment Process

Fin

an

ce

De

pa

rtm

en

t

All Type of Invoices were identified for Payment.

Credit Memo against respective are Selected &

adjusted in Payment

The Payments

are done either

individually or in

batches

The details required

for the payment

processing is

provided

The invoices to be

paid are chosen

manually or by the

batch payment logic

Once the details are

provided the

payment is

processed and

confirmed

In case of TDS Payments, the

payment deposit date, challan

number and branch of deposit

details should be captured once

the payment is done.

End

Is the payment

done by cheque?

Print the cheque/

DD and send it to the

supplier

A flat file having payment

information will be

uploaded to bank Site

Yes

No

All Accounting are created &

transferred to General ledger

GL06 Sub Ledger Enteries

Payment advice needs

to be sent for the

successful payments

Start

EmailManualERP

14


RAILTEL Process: Payment Process



Process Number: AP05 Description: This process covers the process flow for Bank Debit and Check payment process

Event Description: This process is triggered for making payments to suppliers/Employees


AS IS PROCESS AS IS Process ID#

Process ID #

Description

Mode


FIN_AP_PAYMENT PROCESSING 1 -2 AP05.01 Payments are done through cheques/ Demand Drafts or through

electronic payments

System Y

FIN_AP_PAYMENT PROCESSING 1 -2 AP05.02 Payments are done either individually or in batches System Y

FIN_AP_PAYMENT PROCESSING 1 -2 AP05.03 Selection of invoices for payment System Y

FIN_AP_PAYMENT PROCESSING 1 -2 AP05.04 Scheduled batch for payment through online bank service to suppliers as per the payment term

System Y

FIN_AP_PAYMENT PROCESSING 1 -2 AP05.05 Confirm payment batch. System Y

FIN_AP_PAYMENT PROCESSING 1 -2 AP05.06 If the payment is done by Cheque, the Cheque is printed and issued to the supplier. In case of online payments, the payment information is uploaded in the bank website and approved in the bank website as per Schedule of Power. A Payment advice needs to be sent to the payments successfully processed.

System Y

FIN_AP_PAYMENT PROCESSING 1 -2 AP05.07 In case of TDS Payments, the challan number, deposit date and branch information needs to be captured in the payment additional information once the payment is done.

System Y

None N/A AP05.08 All Accounting is created & Transferred to general ledger. System Y

15


AP 06 Creation Debit / Credit Memo

AP06 Creation Debit / Credit Memo

NO

CFin

ance

Dep

artm

ent

Pro

cure

men

t D

epar

tmen

t

Start

Receive the

material from the

supplier

Physical

damage

found?

Stored in

Damages -Sub Inventory

Return to the vendor and

Reverse the Cenvat credit

Issued to the

respective Location.

Yes

No

Material Found

Faulty

Material returned

to Inventory

Material continue

to exist in the

respective locaiton

Yes

No

Debit Memo will be created and will be

adjusted against Original Invoice

During Payment. Please Refer

AP05 Payment Process

Invoice

Matched with

PO (material

accepted)

End

Please Refer

AP02 Invoice creation Process

ERP EmailManual

Purchase Order Will be Updated

Accordingly for generating Debit

memo / Credit Mem

For Liquated Damages

Work Confirmation of

Service.

As per

Agreement or

not?

Yes

No

SR will be raised when

Service is Down

When service is restored

SR will be closed

All Necessary Information will

sent to Finance for charging

Penalty to Supplier

16


RAILTEL Process: Debit Memo


Control Number: AP06 Mapping Team: Wipro Process Owner: RAILTEL.

Process Number: AP06 Description: This process covers the process of Debit memo transactions

Event

Description: Debit Memos which will actually reduces supplier balances this is for returns and to cover additional charge on Invoices.


AS IS Process

AS IS Process ID#

Process ID # Description

Mode


None N/A AP06.01 Return material to supplier using a Return To Vendor Transaction. System Y

None N/A AP06.02 Debit Memo is raised against the supplier. System Y

None N/A AP06.03 Reverse the Cenvat credit obtained. System Y

None N/A AP06.04 Adjust the Debit memo with the payments. System Y

17


AP 07 Tax Definition

RAILTEL Process: Tax Definition



Process Number: AP07 Description: This process covers the process of Taxes Definition

Event Description: This process is triggered when the Taxes are to be defined.


AS IS Process

AS IS Process ID#


Mode


AS I None N/A AP07.01 Define the Vendor Types, TDS Section types, TDS Section codes used for deductions System Y

None N/A AP07.02 Define the Tax codes. System Y

None N/A AP07.03 TDS Exemption needs to be captured as separate tax codes with separate Threshold setups.

System Y

None N/A AP07.04 Define the TDS Thresholds. System Y

None N/A AP07.05 Define Tax categories System Y

18


AP 08 Tax Deduction at Source (TDS)

AP08 Tax Deduction at Source (TDS)

Fin

ance

Fin

ance

1

2

Start

End

Invoice will be Validated and

will be ready for payment

Credit Memo against Original

Invoice/Supplier will be

Created.

During Payment Credit Memo will be

adjusted against Original Invoice.

Please refer AP05 Payment Process

Payment will be done as per

scheduled date. Please refer


Standard Invoice against TDS

Authority will be Created

After Validation of Original Invoice in

AP02 Invoice Creation two Separate

Invoices will be Generated.

Accounting will be done and all journals will be

transferred to GL during Period Close Process.

Please refer AP11 Period Close Process

ManualERP Email

Invoice information will be

entered.& Verified. TDS rate

will be captured

Non PO Invoice

PO Invoice

19


RAILTEL Process: Tax Deduction at Source (TDS)



Process Number: AP08 Description: This process covers the creation of Standard invoice with TDS

Event Description:creation of Standard invoice with TDS

Source: RAILTELFinance Team.



Mode


FIN_AP_INVOICING 5 AP08.01 Based on the nature of Payment & vendor type TDS tax rate is defined. System Y

FIN_AP_INVOICING 5 AP08.02 The TDS attached to the invoice. TDS is deducted on every invoice that is paid. Manual Y

FIN_AP_PAYMENT PROCESSING 4 AP08.03 The TDS deducted is paid to the Income Tax Authority on a monthly basis. System Y

FIN_AP_INVOICING 5 AP08.04 TDS Certificates are processed and issued. System Y

20


AP 09 Work Contract Tax (WCT)

AP09 Work Contracts Tax (WCT)Fin

ance

Fin

ance

Start

End

Invoice will be Validated and

will be ready for payment

Credit Memo against Original

Invoice/Supplier will be

Created.

During Payment Credit Memo will be

adjusted against Original Invoice.

Please refer AP05 Payment Process

Payment will be done as per

scheduled date. Please refer


Standard Invoice against WCT

Authority will be Created

After Validation of Original Invoice in

AP02 Invoice Creation two Separate

Invoices will be Generated.

Accounting will be done and all journals will be

transferred to GL during Period Close Process.

Please refer AP11 Period Close Process

ManualERP Email

Invoice information will be

entered.& Verified. WCT will

be captured

Non PO Invoice

PO Invoice

21


RAILTEL Process: Work Contract Tax (WCT)



Process Number: AP10 Description: This process covers the Generation of Work Contract Tax

Event Description: This process is triggered when the Work Contract Tax is recorded in the system


AS IS Process AS IS Process ID#

Process ID #

Description

Mode


FIN_AP_INVOICING 5 AP09.01 Based on the state of registration the WCT tax rate is defined System Y

FIN_AP_INVOICING 5 AP09.02 The WCT tax attached to the invoice. WCT Tax is deducted on every invoice that is paid.

System Y

FIN_AP_PAYMENT PROCESSING 4 AP09.03 The WCT Tax deducted is paid to the state government on a monthly basis. System Y

FIN_AP_INVOICING 5 AP09.04 WCT Certificates are processed and issued. System Y

22


AP 10 Service Tax

AP10 Service Tax

Fin

ance

(Genera

l Ledger)

Fin

ance

(Genera

l Ledger)

Fin

ance

(Acc

ounts

Paya

ble

s)

Fin

ance

(Acc

ounts

Paya

ble

s)P

rocure

ment

Pro

cure

ment

Start

PO Invoice or

Non PO Invoice

?

PO will be

Created. Service

tax information will

be as per the Item.

Material Received

from Supplier

Invoice Created / Matched

with PO Please Refer

AP02 Invoice Creation

Payment from Supplier

refer


PO Invoice

Non PO

Service Tax Interim Recovery Will be DebitedService Tax Recovery Will be Debited

End

23


RailTel Process: Service Tax Business Function: RAILTEL -Accounts Payable Date:14-Jan-2013


Process Number: AP10 Description: This process covers the Generation & Settlement of Service Tax

Event Description: This process is triggered when the Work Contract Tax is recorded in the system

Source: RAILTEL Finance Team


Process ID #

Description

Mode


FIN_AP_INVOICING 5 AP10.01 Service tax rate will be defined System as per Current Tax Rate by Law. System Y

FIN_AP_INVOICING 5 AP10.02 The Service tax attached to the PO invoice / Non PO Invoice. Service Tax is captured at PO / Invoice Level. CENVAT information is capture at this level as per new guidelines.

System Y

FIN_AP_PAYMENT PROCESSING 4 AP10.03 The Service Tax deducted is paid to the state government. System Y

FIN_AP_INVOICING 5 AP10.03 After Settlement Process If CENVAT is available it is claimed and if payable then Invoice will be created in the system for the same and will be paid.

System Y

24


AP 11 Period Close Process

AP11 Period Close Process

Fin

an

ce

De

pa

rtm

en

t

Start

Finance

Department to

initiate the closing

process

Invoices and

payment

entries

complete?

Complete the

details (Validate &

Account)

No

YesAP Data is

Transfered to GL

Preparation of

Monthly reports

Close the

Payables

Accounting Period

End

EmailManualERP

25


RAILTEL Process: Period Close Process


Control Number: AP11 Mapping Team: Wipro Process Owner: RAILTEL


Description: This process covers month end process of Accounts Payables.

Event

Description: This process is triggered to make month end process.

Source: RAILTEL Finance Team.

AS IS Process

AS IS Process ID#

Process ID #

Description

Mode


None N/A AP11.01 Check & verify the completeness of all Transaction(Invoice & Payment) System Y

None N/A AP11.02 After Verified Completeness, Correction will be Validated & accounted System Y

None N/A AP11.03 All the transactions i.e. invoice and payments are transferred to Main Ledger(General ledger).

System Y

None N/A AP11.04 Preparation of Reports from Payables System Y

None N/A AP11.05 Close the period. System Y

26


Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date Impact Date

Closed Issues

ID Issue Resolution Responsibility Target Date Impact Date

bp080 accounts payables v1 0

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