Business Blueprint

Business Blueprint
Project: MOBICA
Created By: LGNAIDU
Created on: 11/04/2007
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Business Blueprint MOBICA

Contents
MOBICA SYNERGY->GLOBAL MYSAP ERP IMPLEMENTATION PROJECT.........................................3
1 BUSINESS SCENARIOS .....................................................................................................................................3
1.1 Financials Processes in ERP...................................................................................................................3
1.1.1 Organizational Units ...................................................................................................................................... 4
1.1.1.1 MOBICA Introduction ........................................................................................................................... 4
1.1.1.2 MOBICA Organizational Units.............................................................................................................. 7
1.1.2 Business Processes .........................................................................................................................................10
1.1.2.1 Financial Accounting .............................................................................................................................10

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Business Blueprint MOBICA

Mobica SYNERGY->Global mySAP ERP

Implementation Project
Team Member: ABDULHAQ
GAMAL
GEORGEY
LGNAIDU
MAYUR
OSAMA
RAJEEV
SAEID
SAID
SHAIK
SHEREIF
Status: In Process

1 Business Scenarios
Team Member: GAMAL
OSAMA
RAJEEV
SAEID
SHEREIF
Status: In Process

Financial Accounting Accounts Payable Accounts Receivable Fixed Asset

Accounting

Tax Accounting Year-End Closing

Operations

1.1 Financials Processes in ERP

Team Member: OSAMA

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1.1.1 Organizational Units

1.1.1.1 MOBICA Introduction
Logical Component: SAP ECC

Name: MOBICA Introduction

Documentation Type: Business Blueprint
Status: In Process
Person Respons.: OSAMA

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Business Blueprint MOBICA

1 INTRODUCTION
ABOUT MOBICA GROUP

Mobica was established in 1976 with one factory at Abou Rawash industrial zone
producing office furniture. In 2004 Mobica's industrial base had been expanded
to include 15 factories occupying an area of 280,000 m² and covering a large
scope of business varying from Office, Medical, Educational & Contract Furniture
to Automotive Supplies. The factories and commercial offices of Mobica employ
2400 professional engineers, technicians, skilled workers, marketing, sales and
management memebers.

MOBICA is a professionally managed Industrial and trading Group with its

headquarters in the city of CAIRO in Egypt. MOBICA is one of the top companies
in Egypt with core businesses.

Owning a large manufacturing base, professional staff and long experience in

project management and project execution. These qualifications were the reason
that Mobica was the best choice to manage and implement Big turn key projects.

MOBICA’s manufacturing and trading activities are carried out by several legal
companies, for various business reasons.

MOBICA implemented a local System, they worked on this system for about 15
years. However, keeping in view the future challenges and growth plans,
MOBICA is implementing mySAP ERP .

SCOPE OF THE CURRENT ENGAGEMENT

SAPArabia has been engaged to implement the following modules of mySAP

ERP at MOBICA:

Ø Financial Accounting

Ø Controlling

Ø Sales & Distribution

Ø Customer Service

Ø Materials Management

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Ø Production Planning

Ø Plant Maintenance

Ø Project Systems

Ø Quality Management

Ø Human resource

The implementation will cover four legal entities, manufacturing location as stated
below:

Ø MOBICA for Integrated Industries

Ø MOBICA for Carpentry

Ø Wood & Steel

Ø IBS

SCOPE OF THIS DOCUMENT

In the Business Blueprint of the assignment, study of the as-is processes has
been carried out by SAParabia consultants and the proposed to-be solution has
been formulated in consensus with the Business Process Owners and the Core
Team of MOBICA. This document is the confirmation of the Enterprise Structure,
Master Data, Business Processes and Information requirements to be set up in
SAP in relation to each Module.

OBJECTIVE OF THIS REPORT

SAPArabia Consultants will demonstrate reports, business processes on test or

demo data to ensure that Mobica users find it easier to relate to the same.

Based on the discussions, various business scenarios will be documented that

need to be addressed by the configured mySAP ERP system. The purpose of
this report is to confirm the understanding of these business scenarios, which will
form the basis for system specifications. This document covers only an overview
of the to-be processes. The exact data on master data fields, their status,
document types, number ranges used in individual transactions shall be
determined during the Realization phase.
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BUSINESS PROCESS SCOPE

The Financial Accounting (FI) module will cover the following business
processes:

Ø Master Data Maintenance in Accounting

Ø General Ledger Accounting

Ø Accounts Payable

Ø Accounts Receivable

Ø Asset Accounting

Ø Closing Procedures

Ø Management Information System in FI

1.1.1.2 MOBICA Organizational Units

Logical Component: SAP ECC

Name: Mobica Organizational Units

Documentation Type: Business Blueprint
Status: In Process
Person Respons.: OSAMA

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1 ORGANISATIONAL ELEMENTS IN FI
COMPANY CODE (FI)

1.1 Company code is the smallest organizational unit for which complete,
independent accounting can be carried out. A legally independent company is
generally represented by one company code in the SAP System. Customer and
vendor master records have a company code area, which contains data that is
only relevant to one company code. Each G/L account master record contains
data that is relevant to the company code specific accounts in the company code
area

1.2 Company Code is the central entity in financial accounting. It is also the highest
entity in Logistics. For all customer, vendor and material related transactions that
have accounting implications, it is necessary for the system to derive the
Company code. Each plant and each sales organization is assigned to one and
only one company code.

1.3 Following 4 Company codes will be defined in the SAP system:

SAP
Company Code Name Short Name
Code

MOBICA Integrated Industries Mobica INT 1000

MOBICA For Carpentry Mobica Carp 2000

Wood and Steel W&S 3000

IBS IBS 4000

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Client / Company
MOBICA Group

Company Codes

Mobica INT IBS

1000 4000

Mobica Carp W&S

2000 3000

CONTROLLING AREA (CO)

1.4 A controlling area represents a closed system for cost accounting purposes.
Cost allocations can only be performed within a controlling area. Several
company codes may be assigned to one controlling area, which gives the ability
to perform cross-company-code controlling.

1.5 MObica will be the only controlling area in the current implementation. All the four
company codes mentioned in this document will be assigned to this Controlling
Area. Proposed code – 9000

CHART OF ACCOUNTS

1.6 Chart of Accounts are G/L Account Master Records required in one or several
company codes. Postings are made to these accounts. The maximum length of
the GL code will be 6 digits (numeric).

1.7 A company code must be linked to exactly one Operating Chart of Accounts. An
Operating Chart of Accounts can be linked to many companies.

1.8 The Chart of Accounts is the link between FI and CO modules in the following
way:

Ø A Company Code is Linked to the Operating Chart of Accounts

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Ø The Controlling Area is Linked to the Operating Chart of Accounts
Ø Several Company Codes that share a Chart of Accounts can be linked to a
Single Controlling Area regardless of the Companies Functional Currency.

Chart of Accounts
9000

Mobica INT IBS

1000 4000

Mobica Carp W&S

2000 3000

Controlling Area
Chart of Accounts MOBICA Group.
9000 9000

Company Codes

Mobica INT IBS

1000 4000

Mobica Carp W&S

2000 3000

1.1.2 Business Processes

1.1.2.1 Financial Accounting

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SAP ECC

Financial Accounting
– Global Settings

General Ledger
Accounts

General Ledger
Posting

Maintenance of
Account Balances

Name: Financial Accounting

Documentation Type: Business Blueprint
Status: In Process
Person Respons.: OSAMA

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1 FINANCIAL ACCOUNTING – GLOBAL SETTINGS

OVERVIEW

1.1 The purpose of this chapter is to document the configuration settings in Financial
Accounting - global settings for the Company Code. These settings control the
transaction entry and the dependant controls in SAP. Financial accounting
requires the following basic settings:

Ø Chart of Accounts (Explained in the earlier chapter)

Ø Currency Settings

Ø Fiscal year and fiscal year variant

Ø Posting Periods

Ø Document types

Ø Document numbering

Ø Posting keys

CURRENCY

1.2 The company code currencies will be configured as follows:

Company code Currency

Company Code Name
Currency Key

MOBICA Integrated:industries Egyption pound EGP

MOBICA Carpentry Egyption pound EGP

WOOD and Steel Egyption pound EGP

IBS Egyption pound EGP

1.3 MOBICA will define USD, Euro, British Pound,Soudi Rayal,Japaneis yein,
Emarites Dirham(AUD) , and Frank (CHF), in relation to the EGP Factors for all
currency translations maintained in the system. Users can also enter appropriate
exchange rate for conversion of each foreign currency into EGP. Otherwise the
system will convert on the basis of the last translation rate maintained in the
system. Foreign Currency translation rates need to be revised periodically.
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FISCAL YEAR AND FISCAL YEAR VARIANT

1.4 Fiscal year variant identifies financial transactions related to a financial year. The
financial year of MOBICA is January to December. The fiscal year variant will be
defined as K4 in the system that have 12 normal periods i.e. from January to
December & 3 special periods for financial closing.

POSTING PERIODS

1.5 Posting period means monthly period of fiscal year i.e. period within a fiscal year
for which transaction figures are updated. Every transaction that is posted is
assigned to a particular posting period. The transaction figures are then updated
for this period.

1.6 Mobica will have 12 normal periods & 3 special periods. The first period for the
fiscal year will be January and the twelfth period will be December. The four extra
periods are special periods provided in the system for accounting year-end
closing and adjustment entries.

DOCUMENT TYPES

1.7 The document type determines the type of transaction and the account types to
be posted. The document type is entered in the document header and applies to
the whole document. The document type controls the following:

Ø Document Numbering (external or internal)

Ø Posting to Account Types (Assets, Debtors, Creditors, Materials and General

ledger accounts).

1.8 MOBICA has suggested the following document types which can be amended as
per the requirement:

Document Type Description

AA Asset posting

AB Accounting document

AN Net asset posting

BZ Inter Bank Transfer

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Document Type Description

CG Cash Journal

C0 Cash Journal other

DA Customer document

DG Customer credit memo

DR Customer invoice

DZ Customer payment

KA Vendor document

KG Vendor credit memo

KR Vendor invoice

KZ Vendor payment

RV Billing Document transfer

SA G/L account document

SV Salary Payments

TD With holding tax

WA Goods issue

WE Goods receipt

WI Inventory document

WL Goods issue/delivery

WN Net goods receipt

CB Cash Book

PM Provision Monthly

PQ Provision Quarterly

PY Provision Yearly

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POSTING KEYS

1.9 Posting Key controls Debit or Credit account indicator for each line item. The
posting key also describes the type of transaction that is entered in a line item
and allowable account type, which will be entered for the respective line item.

1.10 Posting keys are defined at client level in ECC5 system. The predefined posting
keys would be used wherever applicable. Posting keys, controls property at the
entry of the line item level. Following are the standard SAP posting keys which
will be used for MOBICA.

Posting keys Transaction Debit/Credit Account

Types

01 Invoice D D

02 Reverse credit memo D D

03 Bank Charges D D

04 Other receivables D D

05 Outgoing Payment D D

06 Payment Difference D D

07 Other clearing D D

08 Payment clearing D D

09 Special G/L debit D D

11 Credit memo C D

12 Reverse invoice C D

13 Reverse Charges C D

14 Other payable C D

15 Incoming Payments C D

16 Payment Difference C D

17 Other Clearing C D

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Posting keys Transaction Debit/Credit Account

Types

18 Payment clearing C D

19 Special G/L credit C D

21 Credit memos D K

22 Reverse invoice D K

24 Other receivable D K

25 Outgoing payment D K

26 Payment Difference D K

27 Clearing D K

28 Payment Clearing D K

29 Special G/L debit D K

31 Invoice C K

32 Reverse Credit Memo C K

34 Other payable C K

35 Incoming payment C K

36 Payment Difference C K

37 Other clearing C K

38 Payment clearing C K

39 Special G/L credit C K

40 Debit entry D S

50 Credit entry C S

70 Debit asset D A

75 Credit asset C A

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DOCUMENT NUMBERING

1.11 In the SAP System, every document is assigned a number that identifies it
uniquely within a fiscal year and company code. The number ranges are
assigned to the document types. The number ranges will be fiscal year specific &
internal i.e. the document number will be generated automatically by the system
in sequential order.

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2 GENERAL LEDGER ACCOUNTS

OVERVIEW

2.1 G/L accounting provides a comprehensive picture for external accounting and
accounts. Essentially, the general ledger serves as a complete record of all
business transactions entered into the SAP system. It is the centralized, up-to-
date reference for the rendering of accounts. Actual individual transactions can
be checked at any time in real-time processing by displaying the original
documents, line items and monthly debits and credits at various levels such as:

Ø Account

Ø Journals

Ø Summary of monthly debits and credits (balances)

Ø Balance sheet/profit and loss evaluations

Ø Other analysis

2.2 General Ledger has the following features:

Ø Free choice of level: corporate group or company

Ø Automatic and simultaneous posting of all sub-ledger items in the appropriate

general ledger accounts (reconciliation accounts)

Ø Simultaneous updating of general ledger and cost accounting areas

Ø Real-time evaluation of and reporting on current accounting data, in the form

of account displays, financial statements with different financial statement
versions and additional analyses.

Ø Multiple currencies handling (foreign vendor accounts can be maintained in

the vendor’s currency).

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MASTER DATA MAINTENANCE

2.3 The G/L account master records control the posting of accounting transactions to
G/L accounts and the processing of the posting data

2.4 Master records for each account needs to be created and maintained in the
system. The master data contains information that controls the entry of business
transactions in an account and the processing of data to that account.

2.5 Within master data processing, accounts are defined so that they can be updated
by postings in other module of SAP like HR, MM & SD.

2.6 The chart of accounts contains general specifications for the G/L account master
record. Each company code uses only one chart of accounts. Specific Chart of
Accounts (9000) will be created for MOBICA.

2.7 G/L account master record processing will enhance the efficiency in executing
the following activities:

Ø Management of master record (G/L Accounts) -creation and maintenance.

Ø Blocking of accounts from postings on a temporary basis.

Ø Updating the transactions of other modules to the General Ledger.

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Ø Line Item Reporting and/or Balance-Only reporting.

General Ledger Master Data Segments

2.8 G/L account master records are divided into two areas so that company codes
with the same chart of accounts can use the same G/L accounts.

Ø Chart of Accounts Area: The chart of accounts area contains the data that is
valid for all company codes, such as the account number. The fields that must
be filled /selected while creating masters are as follows:

q Account Group
q P&L statement / Balance Sheet
q Company code specific area
Ø The company code specific area contains data that may vary from one
company code to another, such as the currency in which the account may be
posted.

2.9 This data controls entering and processing of business transaction data in the
appropriate account as well as management of account within a company code.
The fields that must be filled /selected while creating masters are as follows:

Ø Currency

Ø Reconciliation Account for Account Type

Ø Open Item Management -

Ø Line Item Display

Ø Field Status Group.

Account Group

2.10 Account group is a logical grouping of accounts, which have similar properties.
The Account code of an account depends upon the number range that is
assigned to that Account group. The account group determines the function of
the fields available at the time of GL master creation.

2.11 Mobica Account Groups:

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MOBICA Accounts Groups

100000 109999 FIXED Assets

110000 119999 Assets Under Construction

120000 120999 Investements

121000 124999 Inventory

130000 139999 Letter of Credits

140000 140999 Creditors

141000 149000 Other Creditors

150000 150999 Sister Companies

151000 159999 Banks

160000 160999 Revenues Box

161000 161999 Expenses Box

200000 299999 Liablities and Equity

210000 210999 PROVISIONS

250000 250999 Debitors

270000 279999 Other Debitors

300000 399999 Expenses

300000 329999 Operational Expenses

340000 369999 Marketing Expenses

370000 399999 Administartion Expenses

396000 397999 Operations Costs

400000 419999 Local Revenues

420000 439999 Returns

440000 464999 Discounts

465000 469999 Forign Revenues

470000 479999 Other Revenues

480000 480999 Differences

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Field Status Group

2.12 Field status group controls the fields of the screen which needs to be
suppressed, Display, required or optional entry at the time of data entry. For
many General ledger accounts the same fields need to be entered while posting
transactions which can be achieved by defining field status groups for a group of
G/L accounts. Many field status groups are grouped under a field status variant
which is assigned to a company code. Field status group is not defined for
customer and vendor accounts. The status of a field for postings to these
accounts is determined via the reconciliation accounts of the vendors or
customers.

2.13 SAP Standard Field status groups will be retained and used. Field status
definition of the above field status groups will be fine tuned as per user
requirements and base design.

Field Status Field Status Description

Group
Variant

0001 G001 General (with text, allocation)

0001 G003 Material consumption accounts

0001 G004 Cost accounts

0001 G005 Bank accounts (obligatory value date)

0001 G006 Material accounts

0001 G007 Asset accts (w/o accumulated deprecation)

0001 G008 Assets area clearing accounts

0001 G009 Bank accounts (obligatory due date)

0001 G011 Clearing accounts (with settlement per.)

0001 G012 Receivables/payables clearing

0001 G013 General (obligatory text)

0001 G014 MM adjustment accounts

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Field Status Field Status Description

Group
Variant

0001 G017 Freight/customs provisions/clearing (MM)

0001 G018 Scrapping (MM)

0001 G019 Other receivables/payables

0001 G023 Plant maintenance accounts

0001 G025 Inventory adjustment accounts

0001 G026 Accounts for down payments made

0001 G029 Revenue accounts

0001 G030 Change in stock accounts

0001 G031 Accounts for down payments received

0001 G032 Bank accounts (obligatory .value/due dates)

0001 G033 Cost accounts for external services

0001 G036 Revenue accts (with cost center)

0001 G039 Accts for payments on acct made for assets

0001 G040 Personnel clearing accounts

0001 G041 Tax office clearing accounts

0001 G045 Goods/invoice received clearing accounts

0001 G049 Manufacturing costs accounts

0001 G050 Central control clearing accounts

0001 G052 Accounts for fixed asset retirement

0001 G056 Amortization accounts

0001 G059 Inventory accounting material stock acct

0001 G062 Investment support accounts

0001 G064 Other cost accounts (obligatory text)

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Field Status Field Status Description

Group
Variant

0001 G067 Reconciliation accounts

0001 G072 Cost accounts - PA segment

0001 ICCF CO <-> FI reconciliation posting

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3 GENERAL LEDGER POSTING

OVERVIEW

3.1 The system uses the document principle as its reference for entering and posting
business transactions. Each business transaction is stored as a document form
within the system till it is archived. The following common documents will be used
within the General Ledger posting area:

Ø Adjustment entries.

Ø Banking and Cash Transactions.

Ø Provision Postings.

Ø Other G/L Transactions

3.2 The document header contains information that applies to the entire document,
such as the document type, date and number. The document number will be
assigned internally.

3.3 The line item only contains information, which is specific to that line item. It
always has an amount and one account number. It may also contain other
specifications, such as the terms of payment, a cost center or an explanatory
text, depending on the posted transaction. The posting of general ledger
transactions shall be handled at all locations and at the corporate office.

3.4 The following functions will be used to process GL documents:

PARKED DOCUMENTS

3.5 The feature of parked document may be used in various operating scenarios
such as:

Ø A user does not know a part of the inputs to be entered in the document

Ø A document needs to be approved or changed if required by an approving

authority.

3.6 Document parking can be used to enter and store (park) incomplete documents
in the SAP System without carrying out extensive entry checks. Parked
documents can be completed, checked and then posted at a later date. Parking

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documents does not update any data in the system, such as transaction figures.
In case of a parked document, the amounts, account codes may be changed till it
is posted. However document date, cannot be changed. Posting date may be
changed at the time of posting the document.

3.7 The advantage of parking documents is that the data in the documents can be
evaluated online for reporting purposes from the moment they are parked rather
than having to wait until they have been completed and posted. Parked invoices
can be blocked from future processing.

3.8 The facility of parked documents will be used in MOBICA.

RECURRING ENTRIES

3.9 Recurring Documents are created for processing transactions that are of routine
and repetitive nature. In all the locations of MOBICA, entries at specific intervals
are passed with regard to:

Ø Rent

Ø Insurance

3.10 A recurring document needs to be created as a reference document. For every

recurring entry, a first run date and repeat run timeframe need to be given. At any
point of time, recurring entries pertaining to a specified period may be processed
using options of periodic processing.

3.11 Alternatively, a time schedule for processing these transactions may be entered
and the system would automatically carry out the processing of such
prescheduled transactions.

ACCOUNT ASSIGNMENT MODELS

3.12 The Account Assignment Model is used for repeated transactions of similar
nature, standard allocation entries etc. An account assignment model needs to
be created as a reference transaction. At the time of creation of a model, Debit
and Credit line items may be entered. The model entry need not be a balanced
entry. The line items can be modified/changed by the users. The users can then
create these Models from time to time. An account assignment model may be

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created using absolute amounts or for proportions for a combination of a specific
account codes with or without other assignments such as cost centre etc.

DOCUMENT REVERSALS

3.13 A Document can be reversed in financial accounting if the following conditions

are fulfilled.

Ø The original transaction has originated in financial accounting

Ø There are no cleared items

Ø The line items contain only G/L, Debtors and Creditors

3.14 Document Reversal may be used for reversal of a general ledger transaction in
error, however not for an accounting entry posted from Asset Accounting or other
module. A reason code can be set and assigned to a reversal document. In case
of MOBICA all document types, which can be reversed, will have a reversal
document type.The documents, which have been posted due to error, should be
reversed in the same period (month) if the posting period is open. In case where
the period is not open then it has to be posted to the current period.

SAMPLE DOCUMENTS

3.15 Sample documents can be used as reference documents entered specifically for
this purpose. Sample documents have a separate number range. The system
stores the document when a sample document is entered and ‘posted’ but does
not update any transaction figures.

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4 MAINTENANCE OF ACCOUNT BALANCES

4.1 When a business transaction is posted to accounts, the system automatically
updates the account balance. It is therefore possible to view the account balance
and line items for the account.

4.2 An account balance shows the:

Ø Opening balance (carry forward balance from the previous year)

Ø Total of all transactions per posting period, broken down into debits and
credits (transaction figures)

4.3 Using these figures the system also calculates the:

Ø Balance per posting period

Ø Accumulated balance of the account

4.4 In addition to the above balances, the system displays the gross turnover per
period for each account. Account balances are also comprised of the balances
resulting from special G/L transactions such as advance and down payments.

4.5 Account balances can also be viewed in document amounts posted in foreign
currency & the respective local currency. In case the account is displayed on the
system online then the following details need to be displayed:

Ø Posting date

Ø Cost centre

Ø Reference

Ø Currency

Ø Clearing document in case of cleared items

CLEARING OF ACCOUNTS

4.6 Account clearing process is used to clear open items in an accounts. Clearing
process is used to clear one or more open line items within one account. On
clearing open items, system will create a clearing document. E.g. vendor
payment can be cleared against vendor invoice posting. MOBICA will use

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clearing only if the open items are not cleared for some reason at the time of
posting.

4.7 Manual Clearing: can be done in two ways:

Ø Partial Clearing

Ø Residual Clearing

Partial Clearing

4.8 Partial Clearing will be used where a part payment is made for a vendor open
item. For example - There is a vendor invoice of SAR 10,000/-. A part payment
for SAR 5000/- is made for the invoice.

4.9 If the Partial Clearing is used, system will post a line item in debit for the payment
made. The system however, will not clear the invoice till the entire invoice
amount is cleared & all line items are shown as open items.

Residual Clearing

4.10 Residual clearing is also used for clearing open items in case of part payment
etc.

4.11 Considering the above example, In case of residual clearing R/3 system clears
the open line item to the extent of EGP 5000/- and generates a new line item for
the balance payable of EGP 5000/-. The default baseline date for the new
document would be Residual document date; however, the date may be changed
to any other dated.

4.12 During the clearing, the residual amount i.e. the balance amount needs to be
entered against the original open item.

Automatic Clearing

4.13 Clearing of line items in case of certain accounts e.g. bank sub-account will also
be possible based on certain criteria’s. The following criteria will be used for
clearing the line items.

Ø Account Type like Debtors, Vendor, Material, General Ledger and Asset

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Ø Account code

4.14 The following are the transactions where account clearing will be utilized by
MOBICA:

Ø Goods received Invoice received (GRIR): When a goods receipt is entered, it

is posted to the GR/IR account. When the invoice is posted to a vendor, it is
matched with the goods receipt and Purchase Order, and an offset is posted
to the GRIR account. The clearing process will clear the offsetting open items
automatically, based on a maximum of four user criteria.

Ø Tax Deducted at Source accounts:– These accounts need to be cleared

against actual amount paid to the authorities on the due dates. This exercise
of clearing of the EWT account will be done manually

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