BP080 Accounts Receivable V1 0

EAPM

BP.080 TO BE PROCESS

RAILTEL CORPORATION OF INDIA LIMITED

ACCOUNTS RECEIVABLES

Author: Amit Modi/ Rana Nishant k Singh

Creation Date: 14-January-2013

Last Updated: 11-March-2013

Document Ref: RCIL -BP080-AR

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

Company Confidential - 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.

iii


Contents

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

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

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

Accounts Receivable Process ..................................................................................................... 4

AR 01 Supplier Creation .................................................................................................. 5 AR 02 Invoice Creation ................................................................................................... 7 AR 03 Supplier Deposit from Supplier ............................................................................ 9 AR 04 Creation of Debit / Credit Memo ....................................................................... 11 AR 05 Receipt Creation ................................................................................................. 14 AR 06 Adjustment Process ............................................................................................ 16 AR 07 Service Tax .......................................................................................................... 17 AR 08 Period Close Process .......................................................................................... 19

Open and Closed Issues for this Deliverable ............................................................................ 21

Open Issues ....................................................................................................................... 21 Closed Issues ..................................................................................................................... 21

1


Introduction

About this Document

RAILTEL has appointed Wipro Limited to implement Oracle E-Business Suite. The implementation spans Human Resources, Financials, 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 Receivables 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 Fulfillment 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

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


Accounts Receivable Process

Create Customers Review and

Correct Data

Print and Send

Invoices

Collect Payments Enter Receipts

(Payments from Customer) Transfer to General Ledger

Enter Invoices – Manual Invoice or automatic Invoices (will generate from Sales Order

(Customer PO))

5


AR 01 Supplier Creation

AR01 Customer Creation

Oth

er

De

pa

rtm

en

tsF

ina

nc

e D

ep

art

me

nt

End

Marketing Department (Initiator)

Customer Is Available or not ?

No

Customerr Creation Form will be

Prepared & sent to Finance

department.

No

Customer is Created by entering

necessary information like

address , bank details PAN, TAN

etc..

Email of Customer Creation

Sent to requestor

Verification of

Customer Creation form.

Clarification Required ?

Yes

ERP Manual Email

Yes

Start

6


RAILTEL Process: Customer Definition

Business Function: RAILTEL – Accounts Receivables

Date: 14-Jan-2013

Control Number: AR 01 Mapping Team: Wipro Process Owner: RAILTEL - Finance Team.

Process Number: AR 01

Description: This step explains the process of defining the Customers in the Accounts Receivables Module.

Event

Description: This process is triggered Whenever a new customer needs to be created in the system

Source: RAILTEL - Finance Team

AS IS Process

AS IS Process ID#

Process ID #

Description

Mode


(Y/N)

None NA AR01.01 New Customer/ Site Details to be provided by the Marketing team to the Finance Team. System Y

None NA AR01.02 Check whether the Customer / Site details exist in the system. System Y

None NA AR01.03 Create a Customer with the appropriate site information of addresses, contact details. System Y

None NA AR01.04 Confirmation for customer creation sent to Requestor System Y

7


AR 02 Invoice Creation


NO

CF

ina

nc

e D

ep

art

me

nt

Ma

rke

tin

g D

ep

art

me

nt

ADVANCE PAYMENT

Received from Customer &

Submitted to Finance

ADVANCE PAYMENT

Received from Customer

or Not ?

Intimation sent to

customer.

SALES ORDER

Closure/ Execute

Service is

COMMISSIONED

Management Decision

For further Process or

not?

Yes

Customer request for business

without CUSTOMER PO

No

No

Yes

CUSTOMER PAYMENT.

Advance from customer will remain

ON ACCOUNT status till Customer

PO is not received.

Please refer AR05- Receipt

Creation

Commercial Offer/ Demand Note

sent to Customer, And

CUSTOMER PO is Received.

Invoice Automatically created based on

respective Sales Order Tax Information

Like Service tax etc. will entered

Standalone Invoice created for Railways

& Rail wire based on Approval. User

Enters all invoice details. Tax

Information Like Service tax etc. will

entered

Verification & Correction

of Invoice

Print The Invoice & Sent

to Customer

Start

ERP Manual Email

SALES CONTRACT is Prepared and SALES ORDER

is Generated Accordingly. Details will include customer

information , items, Tax details etc.

8


RAILTEL Process: Invoice Creation

Business Function: RAILTEL - Accounts Receivables

Date: 14-Jan-2013

Control Number: AR02 Mapping Team: Wipro Process Owner: RAILTEL -Finance Team

Process Number: AR02 Description: This process covers the creation of Invoices in the system

Event Description: This process is triggered when the Invoices is generated for the Customers

Source: RAILTEL - Finance Team.

AS IS Process AS IS Process ID#

Process ID #

Description

Mode

Requirement Fulfillment

using ERP Approach(Y/N)

FIN_AR_INVOICING 5 AR02.01 Invoices are created based on sales orders or

Standalone Invoices in case of railways/rail wire after Approvals. The User completes the invoice after verification.

System Y

FIN_AR_INVOICING 5 AR02.02 Invoice will be Verified & Completed System Y

FIN_AR_INVOICING 5 AR02.03 Print The Invoice & Sent to the customer. System Y

FIN_AR_INVOICING 5 AR02.04 Create Accounting & transfer accounting entries to General ledger

System Y

9


AR 03 Supplier Deposit from Supplier

AR 03 Security Deposit from customers

Fin

an

ce

De

pa

rtm

en

t

The Security Deposit is

adjusted against invoices as

per the organization policy

EndNo

User to Complete the Deposit invoice

after verification & accounting for the

same is done.

Start

Receipt is applied to the

Security Deposit

Whether

Customer

parting away?

Yes

ManualERP Email

User enters the Deposit Invoice with

the necessary details.

Receipt is obtained

against the Security

Deposit

10


RAILTEL Process: Security Deposit From Customers


Date: 14-Jan-2013


Process Number: AR03

Description: This process explains the process of receiving the Security Deposit from the Customers

Event

Description: This process is triggered when the Security Deposit needs to be received from the customers


AS IS Process

AS IS Process ID#

Process ID #

Description

Mode

Requirement Fulfillment using ERP Approach(Y/N)

None N/A AR03.01 User creates a record of the Security Deposit Invoice. Receivable account is unique. System Y

None N/A AR03.02 User verifies the record and completes the invoice. System Y

None N/A AR03.03 Receive the money against the invoice and apply it against the invoice. System Y

None N/A AR03.04 Create accounting and Transfer accounting entries to General Ledger. System Y

11


AR 04 Creation of Debit / Credit Memo

AR04 Creation of Debit / Credit Memo

Ma

rke

tin

g

De

pa

rtm

en

tF

ina

nc

e D

ep

art

me

nt

NO

C

De

pa

rtm

en

t

Start

Auto Generated Debit/Credit Memo

Based on Amendment on Sales order

by marketing department debit /credit

memo will be created

Manual Debit / Credit Memo

Based on Approval Debit/credit memo

Reference of the Invoice can be taken

at the time of creation of Invoice.

The user verifies the Debit / Credit

Memo and completes the same

EndThe Credit/ Debit Memo invoice is sent to

the customer.

The Credit / Debit Memo is adjusted with the

Receivable Invoices during receipts from

Customer. Please refer to

AR05 Receipt Creation

ManualERP Email

Based on NOC

report Customer

Sales Order will be

amended.

Customer Service

Status Report will

be prepared

12


RAILTEL Process: Creation of Debit / Credit Memo


Date: 14-Jan-2013



Description: This process explains the process of Creation of Debit Memo / Credit Memo Invoices

Event

Description: This process is triggered when the Credit Memo / Debit Memo Invoices are entered in the system. The Credit Memo and Debit memo invoices are passed to adjust the provisional pass through entries passed every Month.


AS IS Process AS IS Process ID#

Process ID #

Description

Mode


FIN_AR_INVOICING 5 AR04.01 From the inputs of Marketing Department Team the Finance user

creates the Credit Memo / Debit Memo. System Y

FIN_AR_INVOICING 5 AR04.02 Reference of the Invoice can be taken at the time of creation of Debit/Credit Memo.

System Y

FIN_AR_INVOICING 5 AR04.03 After verifying the Invoice and tax details, User completes the transaction and Create accounting entries.

System Y

FIN_AR_INVOICING 5 AR04.04 Apply the Credit Memo to a standard AR invoice. Debit Memo invoices are adjusted against receipts

System Y

FIN_AR_INVOICING 5 AR04.05 The Invoice is sent to the Collections department which is in turn sent to the customer.

System Y

13


14


AR 05 Receipt Creation

AR05 Receipt Creation

Fin

an

ce

De

pa

rtm

en

t

Start

Collection Process is Initiated to

capture Receipt and the related

information

Automated/

Manual?

Receipt Status is

updated as

cleared.

The Receipt is applied to the related invoices.

Please Refer

AR04 Debit / Credit Memo Process.

AR06 Adjustment Process

The Customers

Cheques / Receipt

is sent to the bank

for collection

Receipt is

cleared in

the bank

Manual

Automated

Yes

Receipt Entry is

Reversed

The Un-cleared receipt

information is passed to

the Collections

department

No

Information

End

The customer is

intimated about

the receipt

Yes

Receipt has

the invoice

information

Query sent to the

customer for

Information

Query

On Account

receipt

No

Apply to the invoice when invoice

information is available. Debit /credit

Memo Will be adjusted Please Refer

AR04 Debit / Credit Memo Process.

AR06 Adjustment Process

ERP EmailManual

15


RAILTEL Process: Receipts Creation


Date: 14-Jan-2013


Process Number: AR05 Description: This process explains the process of Creation of Receipts

Event Description: This process is triggered when the Receipts are entered in the system


AS IS PROCESS AS IS ID Process ID #

Description

Mode


FIN_AR_COLLECTION_PROCESSING 1 - 3 AR05.01 Collection Process is Initiated to capture Receipt and the related

information

System Y

FIN_AR_COLLECTION_PROCESSING 1 – 3 AR05.02 Receipt is Created. If invoice information is available for the receipt, it is captured at the time of receipt Creation.

System Y

FIN_AR_COLLECTION_PROCESSING 1 – 3 AR05.03 The status of the receipt is updated as per the bank clearing process involved.

System Y

FIN_AR_COLLECTION_PROCESSING 1 – 3 AR05.04 Once the receipt is in the cleared status, the receipt is applied to the related invoices or kept in the unapplied status pending for information. Advance receipts are kept in the on-account status.

System Y

FIN_AR_COLLECTION_PROCESSING 1 - 3 AR05.05 If the Receipt is not cleared or Invoice details required for applying the receipts, the communication is sent to the collections department.

System Y

16


AR 06 Adjustment Process

RAILTEL Process: Adjustment Process


Date: 14-Jan-2013



Description: This process explains the process of Adjusting the Invoices in exceptional cases.

Event

Description: This process is triggered when Invoice Adjustments are required to be performed. Invoice adjustments are performed for bad debts, agreed differences and for correction of minor differences between the invoices and the receipts.

Source: RAILTEL - Finance Team

AS IS PROCESS

AS IS ID Process ID # Description

Mode


None N/A AR06.01 The invoice which needs to be adjusted is selected. System Y

None N/A AR06.02 Based on the schedule of Powers, the users will be able to adjust invoices as per their approved limit.

System Y

None N/A AR06.03 The User enters the details of the adjustments, the amount to be adjusted and the dates of the adjustment

System Y

None N/A AR06.05 Create accounting and Transfer entries to GL are performed if required System Y

17


AR 07 Service Tax

AR07 Service Tax

Fin

ance

(G

ener

al L

edge

r)

Fin

ance

(G

ener

al L

edge

r)F

inan

ce(A

ccou

nts

Rec

eiva

bles

)

Fin

ance

(Acc

ount

s R

ecei

vabl

es)

Mar

ketin

g D

epar

tmen

tM

arke

ting

Dep

artm

ent

Start

Sales Order

Invoice or Non

Sales Order

Invoice

?

Sales Order will be

Created. Tax

information will be

as per the Item.

Service

Commissioned &

sales is Executed

AR Invoice Created / Refer


Collection received from

Customer refer

AR 05 Receipt Process

Sales Order Invoice

Non sales Order

Service Tax Interim Liability Will be CreditedService Tax Liability Will be Creadited

End

18


Process: Service Tax

Business Function: RAILTEL -Accounts Receivables

Date:14-Jan-2013

Control Number: AR 07 Mapping Team: Wipro Process Owner: RAILTEL Finance Team

Process Number: AR 07 Description: This process covers the Generation & Settlement of Service Tax.

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


AS IS Process

AS IS ID #

Process ID #

Description

Mode


None N/A AP07.01 Service tax rate will be defined System as per Current Tax Rate by Law. System Y

None N/A AP07.02 The Service tax attached to the Sales Order / Manual Invoice. Service Tax is captured at Sales Order / Manual Invoice level. Service Tax information is capture at this level as per new guidelines.

System Y

None N/A AP07.03 After Settlement Process If it is payable then Payables Invoice will be created and will be paid. System Y

19


AR 08 Period Close Process

AR 08 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

YesAR Accounting is

Transferred to GL

Preparation of

Monthly reports

Close the AR

Accounting Period

End

EmailERP Manual

20


RAILTEL Process: Period Close Process


Date: 14-Jan-2013

Control Number: AR 08 Mapping Team: Wipro Process Owner: RAILTEL -Finance team

Process Number: AR 08

Description: This process explains the process of AR Period Closing

Event Description: This process is triggered when AR Period Closing Process is performed in the system


AS IS Process

AS IS Process ID#

Process ID #

Description

Mode


None NA AR08.01 Check & verify the completeness of all Transaction(Invoice & Receipt) System Y

None NA AR08.02 After Verified Completeness, Correction will be Validated & accounted System Y

None NA AR08.03 All the transactions i.e. invoice and payments will be transferred to Main Ledger (General ledger).

System Y

None NA AR08.04 Preparation of Reports from Receivables System Y

None NA AR08.05 Close the period. System Y

21


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

1 2 3 4 5 6

Documents

BP080 Accounts Receivable V1 0