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FI10.0 Closing Operations

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									JISL SAP Project - GAURAI Financial Accounting Business Blue Print Document

Jain Irrigation Systems Ltd.

SAP –Financial Accounting Blueprint
FI 10.0 Closing Operations
Project ID: 07035341

Satyam Computer Services Limited

FI Module – Process 10.0

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JISL SAP Project - GAURAI Financial Accounting Business Blue Print Document

Satyam Consultants Satyam Consultant Krishna Kandur Nitin Dixit Satyam Project Manager Client Core Team Members K.Mohan Rao H.G. Kulkarni S.C. Mangal S.S. Binaykya M.R. Ingale A.S. Bagul Raju Jain Client Project Manager Avinash Mujumdar

Signature

Date

VERSION HISTORY

Version No. 00

Date

Changed By

Reason for Revision Basic Document

Changes Made

FI Module – Process 10.0

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JISL SAP Project - GAURAI Financial Accounting Business Blue Print Document

Table of Contents
I) BUSINESS PROCESS OVERVIEW .......................................................................................................... 4

II) TO BE PROCESS AT CLIENT (PROCESS FLOW) ............................................................................... 4 III) SAP PROCESS FOR THE CLIENT .......................................................................................................... 5 IV) INTEGRATION ........................................................................................................................................... 6 V) REPORTS ..................................................................................................................................................... 6 VI) ASSUMPTIONS AND IMPLICATIONS ................................................................................................... 6

FI Module – Process 10.0

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JISL SAP Project - GAURAI Financial Accounting Business Blue Print Document

I)

Business Process Overview

10.1 Foreign Currency valuation for open items There are two types of foreign exchange gain/loss (A) on completed foreign currency transactions i.e. based on the rate of exchange prevailing on the date of transactions and (B) on account of revaluation/retranslation into base currency prevailing on date of revaluation for accounting purposes. 10.2 GR/IR Clearing Account Maintenance NA 10.3 Financial Statement Creation Periodically (monthly, quarterly, yearly) Financial Statements are created division wise. The following statements are made periodically for each Division Monthly Balance Sheet, P&L and Cash Flow statement.
II) To Be Process at Client (Process flow)

Closing Operations

Foreign Currency valuation

GR / IR Clearing

Trial balance / Financial Statements

FI Module – Process 10.0

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JISL SAP Project - GAURAI Financial Accounting Business Blue Print Document

III)

SAP Process for the Client

10.1 Foreign Currency valuation for open items All open items in foreign currency are valuated as part of the foreign currency valuation:






The individual open items of an account in foreign currency form the basis of the valuation, that is, every open item of an account in foreign currency is valuated individually. The total difference from all the open items in an account is posted to a financial statement adjustment account. The account therefore retains its original balance. The exchange rate profit or loss from the valuation is posted to a separate expense or revenue account for exchange rate differences as an offsetting posting.

The above process will be used for valuating open items for JISL operations. 10.2 GR/IR Clearing Account Maintenance An account which is posted to in the following cases:
 

Goods received which have not yet been invoiced Invoices for goods which have not yet been received

When we receive the goods (or invoice), the system makes an offsetting posting to the GR/IR clearing account. The respective items are not cleared. Before creating the financial statements, it is needed to analyze the GR/IR clearing account so that the transactions posted to it are properly displayed. The program used for this analysis determines an item balance for each reconciliation account and each assignment number. If the account has a credit balance, goods have been received but not invoiced; if the account has a debit balance, goods have been invoiced but not yet received. The program places any necessary adjustment postings in a batch input session. These postings are made separately per company code, GR/IR clearing account and reconciliation account. They are then reversed on the day specified in the program run. This process will be used if required for regrouping of GR/IR clearing account for JISL operations. 10.3 Financial Statement Creation In a financial statement version, is to define the format for displaying accounts. Accounts are assigned hierarchically in a tree structure.

FI Module – Process 10.0

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JISL SAP Project - GAURAI Financial Accounting Business Blue Print Document

The accounts can be arranged in accordance with the legal regulations used to generate your financial statements. Alternatively, you can arrange the accounts in accordance with your requirements. Monthly profit and loss statement and cash flow statement for JISL will be extracted in the SAP format.
IV) Integration

GR/IR clearing is processed in MM Module
V) Reports Reports Contains of report SAP Standard Remark

Refer Annexure

VI)

Assumptions and Implications

FI Module – Process 10.0

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