fico 01

● VIYELLATEX GROUP

Organization Structure

23rd July 2008

attune 2006 2 Date: Feb 5, 2015

Organization Structures are defined in

SAP to represent the main entities from

which transactions flow within the

organization and also to facilitate the

total reporting requirements of the

organization.



Finance & Controlling


• Highest Hierarchical Level in SAP(e.g. Corporate Group)

• Self contained unit in SAP with it‘s own set of tables and Master Data

• All Areas of an Organization that are to be integrated into the SAP Production System should be included in one Client

Client Characteristics

Organizational Elements - Client


Client – 100

Viyellatex Group

Client Strategy for Viyellatex Group


•Solution:•A Common client – 100 – “Viyellatex Group”


• Exchange Rates• Viyellatex Group requires policy is to maintain a

monthly average exchange rate.

• Solution: • For every combination of two currencies, different

exchange rates can be maintained which are distinguished by an exchange rate type.

• Maintain “M” Exchange Rate type for “BDT : Foreign Currencies” monthly by Viyellatex.

Client Strategy for Viyellatex Group - Impact



• Represents a legal/tax entity - Where you legally represent the financial events of transacting business

• Balance sheets and profit/loss statements required by law, can be created at the company code level.

• Provides a critical link to all other modules in SAP

• Financial Accounting currencies are assigned to a Company Code.

Company Code

Organizational Elements–Co. Code


Client – 100

Viyellatex Group

Company Code 1000

SPINNING

Company Codes for Viyellatex Group


Company Code 2000

VTL

Company Code 3000

GOTHIC

Company Code 4000

FPPL

Company Code 5000

ISML


• Solution:

• Benefits: – Meets the external reporting requirements of independent legal entities.

– Consolidation is possiable due to maintenance of same currencies accross all company codes

Exchange Rates for Viyellatex Group

CompanyCode

Description Local Curr. 1

Ex. R. Type

Local Curr. 2

Ex. R. Type

1000 Spinning Limited BDT M USD M

2000 Viyellatex Limited BDT M USD M

3000 Gothic Designs Limited BDT M USD M

4000 Fashion Plastics Limited BDT M USD M

5000 Interfab Shirt Mrf. Limited BDT M USD M



FINANCIAL ACCOUNTING

• General Ledger• Bank & Cash• Accounts Receivable• Accounts Payable• Asset Management


• List of G/L Account Master Records required in one or several Company Codes

• For every account, the COA contains account number, account name, the type of account, account group at COA level

• A Company Code must be assigned to one Operating Chart of Accounts

• An Operating Chart of Accounts can be linked to many Company Codes.

• Control data like currencies, taxes, account management etc. is maintained at Company Code level to enable many Company Codes refer to the same COA without compromising individual requirements.

Operating Chart of Accounts

Financial Accounting–Chart of Accounts


Operating Chart of Accounts – 1000

Viyellatex Group Account Number

Account type

Account Description

Company Codes – 1000,2000,3000,4000,5000

VIYELLATEX (Spinning, VTL, Gothic, FPPL & ISML)

Currency

Taxes Etc…

Operating Chart of Accounts

Financial Accounting–Chart of Accounts

•Solution: BP01 – Viyellatex Group


General Ledger

• Viyellatex Group Chart of Accounts – 1000• The General Ledger Account groups used

Balance Sheet Accounts

Cash & Bank 111000 - 113999

Receivables & Other C.A 121000 - 159999

Fixed Assets 160000 - 199999

Payables & Other C.L 211000 - 216999

Equity & Long Term Loans 217000 – 399999

Profit & Loss Accounts

Income 410000 - 499999

Cost of Goods Sold 500000 - 599999

Operating Expenses 600100 - 699999

Selling & Finance Expenses 700100 - 899999


General Ledger

• Line Item Analysis• Balance Analysis• Financial Statements for each Company Code• VAT Return Report• WHT(AIT) Return Report

Closing Operations• Foreign Currency Valuation of open items and account balances• Account Finalization (Check if GR/IR A/c’s & clearing A/c’ are zero)• Open / Closing Posting Periods• Enter Exchange Rates for the next period• Balance carry forward

General Ledger Account Analysis


General Ledger

You can use the SAP system to make the following direct

posting transactions in the General Ledger:

• Standard G/L account postings• Transfer postings with clearing (offsetting)• Document Parking• Recurring Entries• Account Assignment Model for standard journal Entries

Posting in the General LedgerPosting in the General Ledger


Bank and Cash

• House bank and Account ID

Bank Master DataBank Master Data

Spinning (1000)

House Bank CUR G.L A/C Bank Name A/C Type Bank A/C No.

ABBL BDT 113080 AB Bank Ltd,Utatra Current Account 4020-025777-000

EBL BDT 113400 Eastern Bank Ltd,Principal Branch Current Account 01011060011227

EBL USD 113440 Eastern Bank Ltd,Principal Branch ERQ (FC) Account 101-3052246

DBL BDT 113500 Dhaka Bank Ltd. Gulshan Branch Current Account 0215100000003382

VTL (BP03)

HSBC BDT 113010 HSBC,Bangladesh Current Account 001-175421-011

HSBC USD 113030 HSBC,Bangladesh Margin Account 001-175421-091

HSBC EUR 113040 HSBC,Bangladesh Margin Account 001-175421-092

HSBC USD 113060 HSBC,Bangladesh ERQ (FC) Account 001-175421-047

HSBC EUR 113070 HSBC,Bangladesh ERQ (FC) Account 001-175421-048


ABBL BDT 113090 AB Bank Ltd,Utatra STD Account 4020-028981-430

ABBL BDT 113200 AB Bank Ltd,Utatra SB Account 4020-028646-300

ABBL USD 113210 AB Bank Ltd,Utatra ERQ (FC) Account 4020-029032-254

PBL BDT 113300 Pubali Bank Ltd,Fr.Ex Current Account 2905-901-39788

Citi NA BDT 113550 CITI Bank NA Current Account GO 10000200370007


Bank and Cash

Bank Master DataBank Master DataVTL - YFL (BP03)

House Bank CUR G.L A/C Bank Name A/C Type Bank A/C No.

HSBC BDT 113010 HSBC,Bangladesh Current Account 001-019827-011(YFL)

HSBC USD 113060 HSBC,Bangladesh ERQ (FC) Account 001-019827-047(YFL)

HSBC USD 113030 HSBC,Bangladesh Margin Account 001-019827-091(YFL)

ABBL BDT 113080 AB Bank Ltd,Utatra Current Account 4020-025919-000(YFL)

PBL BDT 113300 Pubali Bank Ltd,Fr.Ex Current Account 27351(YFL)

PBL USD 113350 Pubali Bank Ltd,Fr.Ex ERQ (FC) Account 1210 (YFL)

Citi NA BDT 113560 CITI Bank NA Current Account GO 10000200470001(YFL)

GOTHIC (BP04)


FPPL (BP05)


ABBL BDT 113100 AB Bank Ltd,Utatra Margin Account 4020-025679-450

ISML (BP06)

HSBC BDT 113010 HSBC,Bangladesh Current Account 001-175405-011

HSBC USD 113030 HSBC,Bangladesh Margin Account 001-175405-091

HSBC USD 113060 HSBC,Bangladesh ERQ (FC) Account 001-175405-047

HSBC BDT 113010 HSBC,Bangladesh Current Account 001-175413-011(IBL)

PBL BDT 113300 Pubali Bank Ltd,Fr.Ex Current Account 3679

PBL BDT 113300 Pubali Bank Ltd,Fr.Ex Current Account 2834 (IBL)

DBL BDT 113500 Dhaka Bank Ltd,Uttara Current Account 204-100-2240


Banks And Cash

Automatic payment run and Cheque PrintingAutomatic payment run and Cheque Printing

Enter Payment ParametersRun Payment ProposalEdit Payment Proposal

Print Payment VoucherPerform Payment Run

Print Cheques &Vendor Payment Advice

ALL BanksViyellatex SAP Business Benefit

•Automatic selection of invoices due for payment

•Automatic generation of Payment voucher. (Eliminates need to manually create list of invoices in Excel)

•Automatic printing of all cheques•Automatic printing of Payment Advice.

•Accurate online information. (Vendor Open items updated on time.)


Banks And Cash

•Petty Cash Floats•BDT float (General)•USD float (Expat Expenses)•Foreign currency & TC’s

Posting in the Cash JournalPosting in the Cash Journal•For a cash journal document, you can carry out CO account assignments, and have taxes, including withholding taxes, calculated by the system

•Printing the cash journal

•Printing receipts

•Tracking IOU’s through the cash journal

Petty Cash JournalPetty Cash Journal


Accounts Payable

Vendor Master Data

Vendor data provides information on the suppliers a company deals with. It is maintained by the Purchasing and Accounting departments.

•Address Details

•Bank data

•Reconciliation Account

•Payment Terms and Payment Methods

Vendor Bank information is picked automatically from the vendor master data when clearing the vendor open items through automatic program


Accounts Payable

Vendor GroupsTrade Payable-Domestic Trade Payable-Foreign

Accounts Payable-Domestic Trade Payable-Domestic one time

Accounts Payable-Foreign Accounts Payable-Foreign one time

General InformationGeneral InformationVendor Payment Terms :

Description Payment Terms

"0 Days Credit / with out Discount Z000

30 Days Credit / With out Discount Z001








Accounts Payable

•The invoice document numbers will be assigned internally and the vendor invoice number will be entered in the reference field.•Park and Post functionality will be used for all invoices.•All Vendor payments will be made through the Automatic payment run. Authorization will be give to 1 person to enter manual payments.•Down Payments will be managed in SAP.

General InformationGeneral Information


Accounts Payable

Invoice Verification ProcessInvoice Verification Process

Check Invoice detailsPost Invoice

Enter details & Park Document

Enter SAP Doc number on Invoice

Stores send Invoice attached to PO to Finance

PO will be marked with the GRN number


Accounts Payable

Payment ProcessPayment Process

Check Payments due for processing

Using Payment Cockpit

Check & Authorize Payment

Create Payment Proposal

Print Payment Voucher

Post Payment in SAP


Vendor Account Analysis

Accounts Payable

•Creditor Age Analysis

•Monthly Purchases Report

•Outstanding Vendor Invoices – GRIR Account Balance Information

•Payment Cockpit

•Check the List of GR/IR account balance, and verify outstanding invoices

Periodic Checks


Accounts Receivable

Customer Master DataCustomer data provides information on the customers a company deals with. Customer data is maintained by the Sales and Accounting departments. Information maintained by the finance :

•Address Details

•Reconciliation Account

•Payment Term

Customer Groups•Trade Receivable - Domestic

•Trade Receivable – Foreign

•Account Receivable – Domestic

•Account Receivable – One Time

•Account Receivable – Foreign

•Account Receivable – One Time



Accounts Receivable

1 Customer numbers will be assigned internally. A separate number range will be maintained for each customer account group.

2 number ranges will be maintained for billing documents arising from all types of Sales

3 All number ranges are year dependent.



Accounts Receivable

•Customer Invoicing :•Invoices will be raised in SD for sales arising out of the normal business process• Invoices will be raised by Finance for all Scrap sales

•Payment tolerance will be maintained for customer payments •Sales Revenue Deductions for creation charge will be maintained in the Sales Order Conditions. This will be posted automatically when the billing is done.


Accounts Receivable

Scrap Sale Invoicing & Customer Credit Memo ProcessScrap Sale Invoicing & Customer Credit Memo Process

Marketing Send Details to Finance & FG Stores through

E Mail

Finance Enter Details in the system

& post the Document

Get Print out of Invoice / Credit

Memo

Authorize Invoice / Credit Memo


Customer Account Analysis

Accounts Receivable

•Customer Age Analysis

•Customer Payment History

•Monthly Sales Analysis

Periodic Checks

•All Billing Documents have been passed to FI


Fixed Assets Management

Fixed Asset Master

•General Master Data contains - General information, posting information, time-dependent assignments & information on the asset origin.

•Data for Calculating Asset Values


Fixed Assets Management


•Internal numbering for assets - the current number will be maintained as the inventory number in the asset master data fieldDepreciation policy – Straight line Depreciation Method. No depreciation in the year of purchase and full year's depreciation in the year of disposal


Fixed Assets in SAP

VIYELLATEX GROUP - Asset Management

Co. Code Description Country COD

BP02 VIYELLATEX SPINNING LIMITED BD BPCD

BP03 VIYELLATEX LIMITED BD BPCD

BP04 GOTHIC DESIGN LIMITED BD BPCD

BP05 FASHION PLASTIC & PACKING LIMITED BD BPCD

BP06 INTERFAB SHIRT MANUFACTURING LIMITED BD BPCD

Depreciation Areas

Dep. Area Description Currency Dep.Method

01 Book Depreciation Area - Companies Act BDT SLM

15 Tax Depreciation Area - IT Act BDT WDV

32 Book Depreciation in Group Currency - USD USD SLM

Company Codes and Depreciation Areas - VIYELLATEX


Fixed Assets

Asset Classes – VIYELLATEX GROUPAsset Classes – VIYELLATEX GROUP

S.N0 Asset Class (Description) Asset ClassAccount

DeterminationScreen Layout

Number Ranges

From Number To Number

1 Land and Land Development 100 100 100 01 10000000 19999999

2 Building and Development- Office 150 150 150 02 20000000 29999999

3 Building and Development- Factory 200 200 200 03 30000000 39999999

4 Plant and Machinery 250 250 250 04 40000000 49999999

5 Furniture & Fixture- Office 300 300 300 05 50000000 59999999

6 Furniture & Fixture- Factory 350 350 350 06 60000000 69999999

7 Vehicle- Office 400 400 400 07 70000000 79999999

8 Vehicle- Factory 450 450 450 08 80000000 89999999

9 Office Equipment 500 500 500 09 90000000 99999999

10 Computers & Accessories 550 550 550 10 100000000 109999999

11 Decoration & Modification 600 600 600 11 110000000 119999999

12 Factory Equipment 650 650 650 12 120000000 129999999

13 Electric Fixture & Fittings 700 700 700 13 130000000 139999999

14 Goodwill 750 750 750 14 140000000 149999999

15 Software Application 800 800 800 15 150000000 159999999

16 Product Right 850 850 850 16 160000000 169999999

17 Trade Marks 900 900 900 17 170000000 179999999

18 Patents 950 950 950 18 180000000 189999999

19 Preliminary Expenses 1000 1000 1000 19 190000000 199999999

20 Preproduct Expenses 1050 1050 1050 20 200000000 209999999

21 Deferred Expenses 1100 1100 1100 21 210000000 2199999999

22 Other Intangible Assets 1150 1150 1150 22 220000000 229999999

23 Low Value Asset (LVA) 1200 1200 1200 23 230000000 239999999

24 Assets under Construction 1250 1250 1250 24 240000000 249999999


Fixed Asset Purchasing

Transfer asset value from

Clearing A/c to Asset Account

Invoice Verification for

Asset Purchase

Raise PO for Asset – Enter Asset Clearing A/c

GRN Asset

Create Asset Master Record

FA0023 5000Asset Clearing A/c

FA0023 5000Office Equipment

FA0023 5000Asset Clearing A/C

FA0023 5000GR/IR A/c

Fixed Assets


Assets Under Construction

Accumulate all costs to AUC

asset

Create new Asset Master

Transfer AUC Asset value to

New Asset

When asset is Capitalized

DYE0074 30,000Assets Under Construction

DYE0074 30,000Plant & Machinary : Dying

AUC002 5000AUC002 14000AUC002 11000

Assets Under Consturctuin

AUC002 5000AUC002 14000AUC002 11000

GR/IR A/c

Create Asset Master record

for AUC in AUC Asset Class

Fixed Assets


Reports Asset AccountingReports Asset Accounting

•Asset Variance Report (Used for Asset Count)

•Asset Balances List

•Depreciation

Periodic Processes in Asset AccountingPeriodic Processes in Asset Accounting

•Depreciation Run.

•Asset fiscal year change program to open a new fiscal year for Asset Accounting.

•Asset Count and generation of Asset Variance Report

Fixed Assets Asset Reports


CONTROLLING

• Master Data• Product Costing• Cost Object Controlling• Periodic Cost Allocation• Profitability Analysis• Integration


Controlling Area-BP01

Viyellatex Group

Company Code BP02

SPINNING

Company Codes for Viyellatex Group

Controlling-organizational structure

Company Code BP03

VTL

Company Code BP04

GOTHIC

Company Code BP05

FPPL

Company Code BP06

ISML

Operating Concern–BPBD

Viyellatex Group


• Viyellatex Group Companies require Center Accounting in BDT

Controlling Area

• An organizational unit within a corporation in which comprehensive independent management accounting can be performed.

• It links the financial accounting module (FI) to the management accounting module (CO) in SAP.

• Several Company Codes can be Linked to a single Controlling Area regardless of the Company Code currency. The only requirement is that all company Codes within the Controlling Area use the same Operating Chart of Accounts.

Controlling Area – Requirements

Controlling


• The Operating Concern is the highest reporting level for profitability and sales and marketing controlling, and the central organizational unit in Profitability Analysis (CO-PA) used to segment and structure the market.

• You can assign multiple Controlling Areas to one Operating Concern.

Operating Concern

Controlling-Operating Concern


Controlling - General

• General Information

• Operating Profit will be identified separately for the Profit Centers.

• Activity Types will be maintained for the reeling activity performed at each level

• All primary costs will be assigned to the relevant cost centers


Controlling –Master Data

Profit Centers

• You divide your business into profit centers by assigning the profit centers to the various master data which is relevant for profits.

• All profit-relevant business transactions are updated in the profit center hierarchy according to G/L account at the same time they are processed in the original module of SAP.

• Transfer of Revenue (if require) will be distribute/repost between Profit Centers to prepare the P&L at Plant Level


Controlling-Master Data

• Profit Centers – Master Data

Operating Concern - BPBD (VIYELLATEX)

PROFIT CENTERS (VIYELLATEX)

Company Code Profit Center Description

BP02 - Spinning BP20 Spinning General

BP21 ROTER

BP22 RING

BP03 - VTL BP30 VTL General

BP31 KNITTING

BP32 DYEING

BP33 GARMENTS

BP34 EMBROIDARY

BP35 WASHING

BP04 - Gothic BP40 GOTHIC General

BP41 GOTHIC

BP05 - FPPL BP50 FPPL General

BP51 FPPL

BP06 - InterFab BP60 ISML General

BP61 ISML


• Departmental breakdown of your Legal Entity Structure

• Lowest Level of Organization where you want to Collect and Analyze Costs/Departmental Performance

• Departmental Budgets and Expense Analysis of Profit/Loss Accounts

• Interdepartmental Cost Allocations

• Each Cost Center is assigned to a Company Code.

Cost Centers



Cost Centers - Hierarchies

Cost Center Hierarchy

GENERAL

Controlling Area – BP01

Viyellatex Group






ISMLGOTHIC FPPLVTLSPINNING

O.E

RING SPINNING

GENERALGENERALGENERALGENERAL

WASHING

EMBROIDARY

GARMENT

DYEING

KNITTINGGOTHIC FPPL ISML



OPERATING CONCERN - BPUS (VIYELLATEX)

CONTROLLING AREA - BP01 (VIYELLATEX)

Common Cost Centers Across all company Codes

Company Code

Description C.c.type BP02 BP03 BP04 BP05 BP06 Profit Centers

Human Resurce Dep't. (HRD) W 2010 3010 4010 5010 6010

Profit Centers: BP20,BP30,BP40,BP50

& BP60

Accounts Department W 2020 3020 4020 5020 6020

Commercial Department W 2030 3030 4030 5030 6030

Merchandising Department W 2040 3040 4040 5040 6040

Store Department F 2050 3050 4050 5050 6050

IT Department G 2060 3060 4060 5060 6060

IE & Planning Departmnet E 2070 3070 4070 5070 6070

Design & Development E 2080 3080 4080 5080 6080

Maintenance Department G 2090 3090 4090 5090 6090

General Cost Center W 2000 3000 4000 5000 6000

Cost Centers & Relevant Profit Centers Cost Centers & Relevant Profit Centers


Controlling-Master DataBP02 (SPINNING - VSL)

O.E - BP21 Cost Centers Profit Center

Back Section 2110 BP21

Rotor Section 2120 BP21

Finishing Section 2130 BP21

RING SPINNING - BP22 Profit Center

Back Section 2210 BP22

Ring Section 2220 BP22

Finishing Section 2230 BP22

BP03 (VIYELLATEX LIMITED)

KNITTING - BP31 Cost Centers Profit Center

Knitting Dep't. 3110 BP31

DYEING - BP32 Profit Center

Dyeing Dep't. 3210 BP32

Finishing Dep't. 3220 BP32

Quality Dep't. 3230 BP32

Lab Dep't. 3240 BP32

GARMENTS - BP33 Profit Center

Sewing Dep't. 3310 BP33

Cutting Dep't. 3320 BP33

Finishing Dep't. 3330 BP33

Quality Dep't. 3340 BP33

EMBROIDARY - BP34 Profit Center

Embroidery Dep't. 3410 BP34

WASHING - BP35 Profit Center

Washing Dep't. 3510 BP35



BP04 (GOTHIC)

GOTHIC - BP41 Cost Centers Profit Center

Production Dept. 4110 BP41

BP05 (FPPL)

FPPL - BP51 Cost Centers Profit Center

Production Dept : 5110 BP51

Hanger 5120 BP51

Poly 5130 BP51

Label 5140 BP51

Offset Printing 5150 BP51

Button (Existing) 5160 BP51

BP06 (INTERFAB - ISML)

ISML - BP61 Cost Centers Profit Center

Cutting 6110 BP61

Fusing 6120 BP61

Sewing 6130 BP61

Finishing 6140 BP61

Packing 6150 BP61


Controlling Master Data

Activity TypesActivity Types

•Activity types describe the activity produced by a cost center and are measured in units of time or quantity.•Overhead Rates are maintained for each Activity Type / Production Cost Center combination.

OPERATING CONCERN - BPBD (VIYELLATEX)

CONTROLLING AREA - BP01 (VIYELLATEX)

Common Activity Types Across all Plants

Activity Name Unit C.C.Category Cost. Element Purpose of Act. C.Center

LABOUR HR Production 990000Activities for Regular

Process

Cost Center will differ

based on Plant and Activity

MACHIN HR Production 990001

POWER KWH Production 990002

Re Work Activities-Applicable to DYING,PRINTING,EMBOIDERY

R-LABO HR Production 990000Activities for Re-Work ProcessingR-MACH HR Production 990001

R-POWE KWH Production 990002



Statistical Key FiguresStatistical Key Figures

•Statistical key figures represent activities or statistics in a cost center, profit center, or order. They are measured in units of time or quantity.•In CO, statistical key figures are used as an allocation base to distribute costs between cost centers. They have to be entered monthly.•The SKF that will be used at Viyellatex Group: EX: -

•Electricity Consumption•Water Consumption•GAS Consumption•Floor Area•Headcount



Internal OrdersInternal Orders

•Internal Orders are used for Cost monitoring, for example, where costs need to be looked at from object-related aspects•The following order types will be created for Internal Orders:

•Machinery•Investment•General•Vehicles•Work Order•Team Building


Product Cost Controlling

Product Costing

Quantity Structure

Value Structure

Bill of MaterialRouting

Bill of MaterialRouting

Prices for Materials Prices for Activity

Prices for Materials Prices for Activity

•All Materials will be valued at Standard Price except Raw. Mat.•The Moving price for Raw Materials will be entered in the Material Master.•All other material prices will be updated through a Costing Run.•Subcontracting charges will be included in the material valuation. This will be picked from the Subcontract Info Record.

•Yarn•Dyes & Chemicals•Overheads

•Knitting•dyeing•Dry Finishing

Cost Component Structure: EX:- Cost Component Structure: EX:-


Cost Object Controlling

Material IssuesMaterial Issues

Confirm OperationsConfirm Operations

Production Order

Material CostGreige 200.00 Dyes & Chemicals 80.00

Activity CostPre-Set 45.00 Dyeing 70.00 Stenter 125.00

Total Cost 520.00

Trf to Stock -400.00

Actual CostsActual Costs

CO

Dye 70.00 Dyeing Credit Cost Center

FI

Greige 200.00 D & C 80.00

Material ConsumptionFI

Greige 200.00 D & C 80.00

Material Stock

FI

FG 400.00 FG Stock

FI

FG 400.00 Trf to Inventory

Confirm StockConfirm Stock

PCA

Greige 200 D & C 80

Dyeing Profit Center

PCA

FG 400Dyeing Profit Center


Cost Object Controlling

WIP Calculation/ Variance Calculation & SettlementWIP Calculation/ Variance Calculation & SettlementProduction Order



Total Cost 520.00

Trf to Stock -400.00120.00


WIPIf Production Order Status is REL or PCNFFI

PO 120.00 WIP Stock

FI

PO 120.00 Movement in WIP

PCA

PO 120Dyeing Profit Center

VarianceProduction Order Status is DLV or TECO

FI

PO 120.00 Usage Variance

FI

PO 120.00 Trf to Inventory

PCA

PO 120 PO 120Dyeing Profit Center

Production Order



Total Cost 520.00 Settlement -120.00Trf to Stock -400.00

-



Distribution Distribution

Electricity BillBDT 2,000,000

Electricity BillBDT 2,000,000

Electricity 2,000,000 Electricity 2,000,000

Engineering Department

Allocation BaseElectricity Consumption(SKF)

Knitting 300,000Dyeing 700,000Dry Finish 200,000

Allocation BaseElectricity Consumption(SKF)

Knitting 300,000Dyeing 700,000Dry Finish 200,000

Electricity 500,000

Knitting Cost Center

Electricity 116,667

Dyeing Cost Center

Electricity 33,333

Dry Finishing Cost Center

Distribution is used to allocate the primary costs of a cost center. The following information is passed on to the receivers:•The original cost element (that is, the primary cost element) is retained. •Sender and receiver information is documented using line items in the CO document.•You can use the information system to analyze the distribution results according to sender and receiver relationships.

Periodic Allocations


Periodic Allocations

AssessmentAssessment (Used to Identify Dry Finishing cost for (Used to Identify Dry Finishing cost for each relevant Cost Center)each relevant Cost Center)

Staff WelfareUSD 50,000

Direct WagesUSD 1,000,000

Staff WelfareUSD 50,000

Direct WagesUSD 1,000,000

DepreciationBDT 200,000

DepreciationBDT 200,000

Depreciation 200,000 Dry Fin Cost 1,250,000 Staff Welfare 50,000 Sal & Wages 1,000,000

Dry Finishing Department

Allocation Cost ElementDry Finishing Cost Allocation BaseReeling Activity Confirmed (SKF)

Knitting 30,000MDyeing 50,000MDry Finish 20,000M

Allocation Cost ElementDry Finishing Cost Allocation BaseReeling Activity Confirmed (SKF)

Knitting 30,000MDyeing 50,000MDry Finish 20,000M

Dry Fin Cost 375,000

Knitting Credit Cost Center


Dyeing Credit Cost Center


Dry Finishing Credit Cost Center

Assessment is a method of allocating primary and secondary costs in Cost Center Accounting. The following information is passed on to the receivers:•The original cost elements are assigned cumulatively, or in groups, to assessment (secondary) cost elements. The original cost elements are not recorded on the receivers.•Sender and receiver information (sender cost center, receiver cost center) appears in the Controlling (CO) document. Allocation through assessment is useful when the composition of the costs is unimportant for the receiver.


Profitability Analysis

Standard Actual

Sales Quantity (M) 1520USD USD

Sales Revenue 32,000.00 32,000.00 - Creation charge (1,600.00) (1,600.00)

Yarn-Warp Yarn (7,000.00) (6,850.00) -Pattern Yarn (10,000.00) (9,625.30)

Dyes & Chemicals (1,000.00) (820.00)

Packing Materials (32.00) (33.50)

Overheads Absorbed-Knitting (3,000.00) (3,210.00) -Dyeing (5,600.00) (5,720.00) -Dry Finishing (1,500.00) (1,500.00)

2,268.00 2,641.20

Post-production Profitability Analysis - Knitting

Billing DocumentBilling Document

Goods IssueGoods Issue

Activity Confirmation

Activity Confirmation


Integration Points

Impact on FinanceImpact on Finance Activity PerformedActivity Performed

Billing Document Number Sales Order Type

Revenue Account Determination Order Reason in the Sales Order

Creation Charge Calculation and Posting

Condition Type in the Sales Order

Profit center postings Profit Center Assigned in the Material Master

Stock Valuation, Material Costing, and all material related postings

Standard Price of RM in the Material MasterBOM ConsumptionMachine time & activity type entered in the Routing

Overhead Absorption Activity Types entered in the Routing

WIP and Variance Calculation Update production order status’ online


Integration Points

GRN & Invoice Verification ProcessGRN & Invoice Verification Process

D&C 1200Stock A/c

D&C 1250GR/IR A/c

D&C 50Price Variance A/c

Stock Std Price Value200 12.00 2,400.00

D&C01 -Material Master

GRN Stock100Kg


D&C01 -Material Master

Material PO Price PO Qty ValueD&C01 12.50 100.00 1,250.00

Purchase Order

D&C 1250GR/IR A/c

D&C 1230Vendor

D&C 20Price variance A/c

Invoice Verification

Material Inv Price PO Qty ValueD&C01 12.30 100.00 1,230.00

Invoice No 33923

PCA

D&C 50.00 Dyeing Profit Center

PCA

D&C 20Dyeing Profit Center


Integration Points

Delivery & BillingDelivery & Billing

FG001 12000Stock A/c

FG001 12000Cost of Sales

PCA

FG001 12000Knitting Profit Center

FG001 19200Sales Revenue A/c

FG001 19200Customer

PCA

Creation Chgs 960.00 Revenue 19200Knitting Profit Center


FG001 -Material Master

Post Goods IssueFG001 - 600 M


FG001 -Material MasterCustomer Billing

Order Reason 001Material Price Profit CenterFG001 32.00 KNIT

Creation Chg 5%

Sales Order

FG001 960Creation Chgs Payable

FG001 960Creation Chgs


Taxes

Viyellatex Group

Taxes

DIRECT

Applicable Taxes for Viyellatex Group

Country Version -Bangladesh

Taxes

INDIRECT

PURCHASES

Raw Material - Imports

Raw Material - Domestic

SALES

Sales - Export

Sales - Domestic

With Holding Taxes (AIT)


Direct Taxes-Viyellatex

• With Holding Taxes - Applicable for Viyellatex According to BD IT ACT.

WITH HOLDING TAXES (AIT)

S.No I.T. Section Description Tax %

1 52 Gas Bill Slab

2 52 Contractors&Suppliers Slab

3 52(AA) Private Security Service 7.50%

4 52(A3) Professional Fee 10%

5 52M Freight Forwarding 7.50%

6 53CC Courier Business 7.50%

7 52E Commission & Discount 7.50%

8 52EE Foreign Buyer Agent 4%

9 54

Dividend

10%

15%

25%

10 53A

Rent

0%

3%

5%

11 Local Equipment 3%


Direct Taxes

• Recipient Types – Viyellatex Group

Type of Recipient

Country Recipient type Description

BD 01 Gas Bill

BD 02 Contractors&Suppliers

BD 03 Private Security Service

BD 04 Professional Fee

BD 05 Freight Forwarding

BD 06 Courier Business

BD 07 Commission & Discount

BD 08 Foreign Buyer Agent

BD 09 Dividend

BD 10 Rent

BD 11 Local Equipment


Direct Taxes – Tax Codes

• SAP WHT Codes - Viyellatex

Maintain Tax Codes

Country W.Tax Code Description G.L Account

BD W0 WHT (AIT) Bangladesh @ 0.00% 211100

BD W1 WHT(AIT) Bangladesh @ 1.00% 211100








BD W9 WHT(AIT) Bangladesh @10.00% 211100

BD WA WHT (AIT) Bangladesh @15.00% 211100

BD WB WHT (AIT) Bangladesh @20.00% 211100

BD WC WHT (AIT) Bangladesh @25.00% 211100


WHT (AIT)-Process

• WHT – Process:

Invoice Posting – No Tax Deduction on Invoice Payment to Vendor against Invoice Deduct the AIT on payment Payment of AIT to Govt. Which has been deducted by Viyellatex

Generic WHT Report :

Vendor Wise

Tax Code Wise

Company Code Wise

Fiscal Year Wise


WHT Process

Pay Tax to Government

Issue Certificates

File Returns

Deduct Tax from Vendor

Vendor Vendor

Bank


In Direct Taxes-Viyellatex

Tax on Sales / Purchase

Purchases Sales IMPORTS EXPORTS

1.) Customs Duty (CD)

2.) Supplementary Duty (SD)

3.) Value Added Tax (VAT) NIL

4.) Advance Income Tax (AIT)

5.) Infst. Develop. Surcharge (IDSC)

6.) (ATVI)

DOMESTIC DOMESTIC

1.) Value Added Tax (VAT) 1.) Value Added Tax (VAT)

2.) Tax on Waste Sale


In Direct Taxes

• Tax on Purchases:

1.) VAT on Domestic Purchases are calculating separately at purchase order level but directly adding to the cost of Raw material.

EX:- Inventory a/c Dr 115 (with 15% of VAT)

To Vendor 115

2.) Tax on Import Raw materials are calculating and posting separately to the Tax provision account.

NOTE: We are not paying the tax calculated on imported raw materials (at the time of invoice) but we are maintaining the provision as well as advance payment in Balance sheet to meet the statutory regulations.


Taxes on Imports & Adjustment

Export of Imported R.

Mat after processing

Invoice Verification for

Import Raw. Mat

Raise PO for Import Raw Materials

GRN against Import P.O

Create Tax Provision as

Liability

Fixed Assets

Adjust the Tax Provision after

Export


VAT on Services Inputs

WITH HOLDING TAX –VAT (Service Vendors)

Types of Services Tax

%NOTE

Procurement Provider, Purchase of Auction Goods, Etc..2.25%

Separate G.L A/C as VAT

Expenses A/C 612010

Motor Vehicle Garage, Construction Contracts, Printing, courier & EMS, Consultancy Firm,Audit&Accounting Firm, Security Services, Law Adviser, Transport Contractor, Architect, Interior Designer, Local Equipment 4.5%

Electricity Supplier 5.00%

Advertisement provider 9.00%

Advertisement, Flight Forwarding, Survey Firm, Directors Fee for attending board meeting, Purchase of auction goods, Gas bills, Telephone bills, Mobile bills, Internet Bills 15%

Taxes on Input Services


Tax on Sales

• Calculation and treatment:

Invoice:– tax amount

will calculate and posting to Tax Payable A/C

Goods Delivery

Clearing of Sales tax

payable a/c

Domestic Sales Order (+Waste)

with VAT

Tax paid amount compare with

sales tax register


Indirect Taxes-Key Combination

Key combination for calculation and posting of input & out put taxes

1.) Purchase of Raw Materials: Plant / Vendor / Material

2.) Service Purchases: Company Code / Vendor

3.) Regular Sales: Sales Org / Plant / Customer / Material

4.) Sales with out S.O: Company Code / Customer

NOTE: Sales Tax, Purchase Tax and VAT Registers are available according to Legal Entity as well as tax code.


Data Management

• Some of the options available under data management are;

• Data Prevention - Technically it is possible to deactivate updating for certain Types of data. From a business point of view if you do not require this data, you should deactivate updating.

•An efficient Data Management strategy is an important part of trying to maintain good system performance


Data Management

• Archiving – Data Archiving handles data that cannot be deleted. Only data no longer required for live operations should be archived. Archiving can only, therefore, be used in a limited context when reducing the amount of data in the system.

Retention periods can be defined for Archiving objects as to best suit the Businesses requirements

• Deletion – It is possible to delete a lot of data that you do not want to archive soon after it has been created in the system.

Before deletion of data records from the system it must be ensured that they are no longer referenced to any other data which requires that these records remain in the system


Data Management

• Data aggregation – In some cases data can be aggregated at a higher level, for example by generating totals. You should use aggregated data if it provides a sufficient level of that is required for the business processes

Thank You

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Data & Analytics

account group

company code level

company codesfor

type of account

account management

coa levela company code

company codesexchange

exchange ratesviyellatex