BBP Financial

BUSINESS BLUEPRINT
VERSION 1.3
FINANCIAL CONSOLIDATION
For Legal Reporting
Program Disha: SAP
320489599
Document Control
Revision History
Date
Versio
n
Author
12/08/201
3
1.1
Anil
Bhabal/Sachin
Butala
02/09/201
3
1.2
Anil
Bhabal/Sachin
Butala
Review was done by Anup, Milind Sapre and

attended by Bhavesh, Digambar, Meenakshi,
Srinivas, Frankey
23/01/201
4
1.3
Anil Bhabal /
Murugesan
Rathinam
Updated based on workshop decisions. Short

Term and Long Term documents merged to form
one document.
Glenmark Pharmaceuticals Limited
Description
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Signing of this approval page of the Business Blueprint indicates agreement with the
contents mentioned in this document. This document is a living document and shall
undergo revisions during the life cycle of the project as requirements keep changing.
PREPARED BY
NAME
DEPARTMENT
ROLE
SIGNATURE
DATE
SIGNATURE
DATE
SIGNATURE
DATE
PREPARED BY
NAME
DEPARTMENT
ROLE
PREPARED BY
NAME
DEPARTMENT
ROLE
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Table of Contents
1.
INTRODUCTION...............................................................................................................6
1.1. BUSINESS DRIVERS.............................................................................................................6
1.2. BUSINESS BLUEPRINT OVERVIEW.......................................................................................6
1.3. SCOPE OF CONSOLIDATION SOLUTION................................................................................7
1.3.1. In Scope.......................................................................................................................7
1.3.2. Transitional Solution (Short Term)..............................................................................7
1.3.3. Out of Scope................................................................................................................8
1.4. BUSINESS DRIVER...............................................................................................................9
1.5. BUSINESS PROCESS DESCRIPTION.......................................................................................9
2.
AS-IS PROCESS..................................................................................................................9
2.1. LEGAL ENTERPRISE STRUCTURE:........................................................................................9
2.2. TECHNICAL SYSTEM LANDSCAPE.....................................................................................11
2.3. CHART OF ACCOUNTS STRUCTURE...................................................................................13
2.4. IFRS COMPLIANCE............................................................................................................16
2.5. CURRENCIES SET-UP.........................................................................................................18
2.6. OTHER TECHNICAL SET-UP...............................................................................................19
3.
STEPS IN CONSOLIDATION PROCESS AS-IS.......................................................20
4.
TO-BE PROCESS FLOW................................................................................................29
4.1. CONSOLIDATION PROCESS FLOW......................................................................................29
4.2. CONSOLIDATION OF P&L AND BALANCE SHEET..............................................................29
4.3. PREPARATION OF SCHEDULES:..........................................................................................33
4.4. CONSOLIDATION OF CASH FLOW STATEMENTS:...............................................................34
4.5. MANUAL ADJUSTMENTS:..................................................................................................34
4.6. LIST OF DELIVERABLES....................................................................................................35
5.
TECHNICAL DESIGN.....................................................................................................36
5.1. DATA FLOW IN BW FOR FINANCIAL CONSOLIDATION - LONG TERM SOLUTION..............36
5.2. DATA FLOW IN BW FOR FINANCIAL CONSOLIDATION - SHORT TERM SOLUTION............37
5.3. ELIMINATION SCENARIOS IN REAL TIME CUBE................................................................39
5.4. MASTER DATA: INFO OBJECTS GL ACCOUNT................................................................39
5.5. TRANSFORMATIONS...........................................................................................................40
5.6. MASTER DATA IN BW, DATA SOURCES AND INFO CUBES..................................................40
5.7. PROCESS CHAINS FOR DATA LOADING:.............................................................................41
5.7.1. Types of process chains.............................................................................................41
5.7.2. Frequency of Loading:..............................................................................................41
5.7.3. Source Systems:.........................................................................................................41
5.7.4. Queries in BW:..........................................................................................................41
6.
SAP ECC 6.0 DESIGN REQUIREMENTS:...................................................................42
7.
SPECIFIC DESIGN FOR SHORT TERM:....................................................................42
8.
MASTER DATA REQUIREMENTS:.............................................................................43
9.
ENHANCEMENTS - :......................................................................................................44
9.1. ENHANCEMENTS TO BE WRITTEN AS REQUIRED IN DATA MODEL IN ECC AND BW DATA
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MODEL.........................................................................................................................................44
11. SECURITY AND CONTROLS........................................................................................45

12. AUTHORIZATIONS.........................................................................................................45
13. ANNEXURE.......................................................................................................................46
13.1. LIST OF FORMATS AND TEMPLATES...............................................................................46
14. GLOSSORY.......................................................................................................................48
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1. Introduction
Glenmark is using SAP as a strategic Enterprise Resource Planning application for more than a
decade. While, a common 3-tier SAP Landscape was used for Glenmark Generics Ltd. (GGL)
and Glenmark Pharmaceuticals Ltd. (GPL) till year 2010; separate SAP Landscapes were created
for both the companies in January 2010. Over a period of time, there have been multiple changes
implemented in each of the systems independently to cater to changes supporting business
process or reporting requirements. Program DISHA is a strategic initiative by Glenmark for IT
Transformation including SAP Re-implementation Project. This project will not only aim at
consolidating the SAP Landscape for One Glenmark but also deliver improvised Enterprise
Organization Structure, Master Data and harmonized Business Processes to support Glenmark
requirements
1.1. Business Drivers
Focus of Program DISHA : SAP is to transform the existing SAP implementation to supporting
business process requirements and aligning them with best practices in Life-sciences domain. A
comprehensive assessment of existing SAP systems was carried out as a first phase of project.
The outcome of assessment for existing Enterprise Organization Structure, Master data, Business
Process Configuration, Customized Technical objects and process gaps has been key input for
optimizing the functionalities of ERP system to meet dynamic business needs including
localization requirements & reporting at country as well as corporate level. The new design will
also enable management reporting of business various dimensions across the globe for their
strategic decision and operational issues.
1.2. Business Blueprint Overview
The purpose of this document is to present a comprehensive Business Blueprint document for
Controlling Module. This document summarizes the findings of the Capgemini consulting team
and Glenmark Core team, with respect to future state SAP implementation.
This document will serve the dual role of official project scope as well as system acceptance
criteria.
However, a detailed configuration and customization document will be prepared during the
realization phase to cover all aspects of implementation for the module specific and integration
requirements. Changes to the existing system between Business Blueprint Sign-off and final
preparation phase will be incorporated in a single document and changes will be applied before
go-live to ensure business continuity.
This document also describes Enterprise Organizational Structure and SAP Functional Process
Flows to be implemented at Glenmark. Generally, requirements that can be met using standard
SAP functionality through routine configuration tasks are not explicitly documented. However,
certain key business requirements are explicitly identified and summarized to highlight their
importance.
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In this blueprint, the TO BE processes, Gaps Identified and Pain Points shall be considered as
User Requirement Specification and the SAP transactions that support the TO BE Process shall
be considered as Functional Specification.
1.3. Scope of Consolidation Solution
1.3.1. In Scope
An SAP BW-based custom solution is to be built to enable financial consolidation. Consolidated
financial statements are prepared based on the IFRS accounting policies. The reporting currency
for consolidated statements will be Indian Rupees (INR).
Financial Consolidation refers to the preparation of the following financial statements at the
Glenmark group level by summarizing all the group entity financial statements and eliminating
all inter-company transaction effects:
1.
2.
3.
4.
5.
Profit & Loss Statement

Balance Sheet
Cash Flow Statement
Worksheets to Schedules to Profit & Loss Statement and Balance Sheet
Schedules to P&L Statement and Balance Sheet
Note: Schedules (5 above) will be provided subject to the technical feasibility of text output in
the reports.
All the above reports will be provided at the following levels:
Each legal entity in its own currency and also in USD;

Consolidated at group level in INR and also in USD.
Consolidated financial statements are prepared for every quarter of the financial year.
Consolidated financial statements will be required at the following levels:
1. Glenmark Holding S.A.,Switzerland (GHSA) which is a holding company of several
subsidiaries;
2. Glenmark Pharmaceuticals Limited which is a hoding company of GHSA itself and
also other subsidiaries.
1.3.2. Transitional Solution (Short Term)
In order for business to be able to perform consolidation using the BW solution for the reporting
quarter starting from April 2014 to June 2014, certain additional features are built into the
solution. This solution is specifically built to enable consolidation during the period till the
Disha SAP projects SAP ECC6.0 solution is implemented. Hence this solution will be used for
the transitional short term (referred to as Short Term) and will be based on the existing ECC
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system and processes.This is because:a) Existence of three holding companies GGL, GHSA and GPL. This requires that the
consolidated statements are prepared separately for each.
b) The Chart of Accounts used will be different in the new design. Hence, the Short
Term solution needs to construct the reports based on the existing Chart of Accounts;
and
c) Trading Partner functionality is not currently used, but will be implemented in the
new system.
Hence, there is special requirement to be able to perform consolidation and prepare reports at
two levels:
At GGL level transactions with GPL and GHSA are not considered as inter-company
transactions at this level;
At GHSA level transactions with GPL and GGL are not considered as inter-company
transactions at this level;
At GPL level all inter-company transactions need to be eliminated since GGL and
GHSA are subsidiaries of GPL, this will be the highest level of consolidation.
i.
ii.
iii.
Note 1: Switzerland company codes maintain local books in their local currency. However,
this needs to be maintained in USD as per IFRS. Hence, Switzerland subsdiary accounts are rewritten in USD. This USD figures are to be considered for consolidation. For this reason, for
short term, Switzerland entities will need to upload their data manually like non-SAP entities.
Note 2: Generation of consolidated statements in USD will not be feasible in the short term
solution, as the present system design does not support maintenance of data in USD in parallel.
1.3.3. Out of Scope

The following are not in scope of this solution:
Consolidation of financial statements based on any GAAP (including I-GAAP and US

GAAP) other than IFRS;
Design requirements in SAP ECC6.0 including accounting adjustments for IFRS
reporting. This will need to be taken care in the concerned area;
Consolidation of financial statements at any level other than the Group level;
Reports that are not specifically mentioned in section 1.2.1 above
Interface with any other system than SAP
Any tool for automatic reconciliation of inter-company transactions.
Text information appearing as Notes in the financial statements.
This document excludes BPC requirement gathering and solution which will be carried out
separately under long term Consolidation.
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1.4. Business Driver

The objective is to implement an SAP-based solution for financial consolidation for statutory
reporting. The following are incidental to this objective:
to minimize closing cycle period;

to enhance integrity and accuracy in consolidation process; and
1.5. Business Process Description

This document deals with consolidation of financial statement at the group level, for the purpose
of statutory reporting. The following financial statements are considered:
1.
2.
3.
4.
Consolidated Balance Sheet

Consolidated Profit & Loss Statement
Consolidated Cash Flow Statement
Schedules to Profit & Loss and Balance Sheet.
Group reports are published for every quarter and year. Consolidation basically involves the
following broad tasks:
1. Summarize financial statements of all group entities (after conversion into Group
reporting currency); and
2. Eliminating the effects of inter-company transactions.
All the entities in Glenmark group follow fiscal year which begins on 1st day of April and ends
on 31st March. Some of the entities are set up in SAP and some are not.
2. AS-IS Process
2.1. Legal enterprise structure:
Glenmark Pharmaceuticals Ltd. (GPL) is a holding /parent company incorporated in India,
having its subsidiaries in India and across the Globe.
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Statutory requirement of Legal financial consolidation is at GPL level. Currently financials are
consolidated at Headquarters in GPL Mumbai manually in Excel.
GPL Investments in Subsidiaries:
All subsidiaries are wholly owned subsidiaries (100% Owned) of Glenmark Pharmaceuticals
Ltd. India, except Glenmark Generics Ltd., India and Glenmark Pharmaceuticals Ltd., Thailand
in which holding of Glenmark Pharmaceuticals Ltd., India is 97.50% and 49% respectively as on
31st March 2012.
Observations:
d) Manual flow of IFRS templates via email.
e) Follow up for corrections with the entities via email
f) Dependencies on receiving the data in time
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2.2. Technical System Landscape

Legal entities in SAP - GPL
GPL has 38 Legal entities out of which 15 are on SAP system.
Presently GPL has two separate SAP instances named as Pharma & Generics respectively.
Pharma Server configured for Glenmark Pharma Ltd and its subsidiaries and Generics server
configured for Glenmark Generics Ltd and its subsidiaries.
Observations:
1.
2.
3.
4.
GPL(Parent company) and its subsidiaries are mapped on Pharma Servers

GGL ( Parent company) and its subsidiaries are mapped on Generics Servers
Above all entities are in operation in SAP
Apart from above entities, we got input on company codes 2000,3000,5210,7110,9999
which are currently not in operations in SAP
Legal entities Not in SAP - GPL

Below structure is of Glenmark Pharmas legal entities maintaining their financials in Non SAP
(Third party tools) such as Tally, Profit Plus, 1C, Quick Book, Manual etc.
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Observations:
a) Entities are using various accounting software.
b) Control on GL creation is difficult across all non-SAP entities.
c) During consolidation GL mapping of each entity is difficult and cumbersome.
Legal entities Not in SAP - GGL
Below structure is of Glenmark (Generics) legal entities maintaining their financials in Non
SAP (Third party tools) such as Tally, Profit Plus, 1C, Quick Book, Manual etc.
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Observations:
a) Entities are using various accounting software.
b) Control on GL creation is difficult across all non-SAP entities.
c) During consolidation GL mapping of each entity is difficult and cumbersome.
2.3. Chart of Accounts Structure

Current GPLs & GGLs Chart of Accounts structure mapped in SAP - Operative Chart of
Accounts, Group Chart of Accounts, Country Specific Chart of Accounts.
Chart of Accounts on Pharma Servers
Operation
COA
Country
Specific COA
GMPL
GMPL
Group
COA
Servers
Pharma
GSAL
Pharma
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GHSL
Pharma
GMPL
Pharma
GMBR
GMCZ
GPCZ
GMPL
Pharma
GMPL
Pharma
GMPO
Pharma
GMPO
Pharma
GMSK
GPSK
GMPL
CARO
Pharma
Pharma
Chart Of account on Generic Server
Operation COA
Country
Specific
COA
Group
COA
Servers
GMPL
Generics
GMAR
Generics
GMPL
GHSL
Generics
GMPL
Generics
GMPL
Generics
Observations:
1. Currently Chart of accounts GMPO & CARO are not mapped from Group chart of
accounts GMPL in Pharma server
2. Currently Chart of accounts GMAR are not mapped from Group chart of accounts
GMPL in Pharma server
SAP Company Codes and Chart of Accounts assignments:
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Chart of Accounts mapped with each company code having Operative COA, Group COA &
Country Specific COA.
Company Code Entity Name
Operation
COA
Countr
y
Specifi
c COA
1000
GPL 1000
GMPL
4000
GGL 4000
GMPL
5100
GSA 5100
GMPL
GSAL
5110
GSA - 5110 Holding
GMPL
GHSL
5200
Glenmark Generics ARG
GMAR
5220
GGL Holding SA 5210 on 1st April

2013 merger with 5220
GMPL
5300
Glenmark Generics UK
GMPL
6100
GGI 6100
GMPL
6200
Glenmark USA
GMPL
7100
GLENMARK FARMACEUTICA
LTD
GMBR
8100
Glenmark Pharma s.r.o
GMCZ
8110
Glenmark Distrib.Sp.z.o.o
GMPO
8120
Glenmark Pharma Sp.z.o.o
GMPO
8130
GLENMARK PHARMA SK sro
GMSK
8140
Glenmark Pharma SRL
CARO
Group
COA
GHSL
GMPL
GPCZ
GMPL
GPSK
GMPL
Observations:
In absence of Group Chart of accounts the financial consolidation is very complex.
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Existing Mapping of Operational Chart of Account and Group Chart of Account in SAP:
1. GL accounts mapped in GMPL Chart of accounts and Country specific chart of accounts are
not unified in Pharma server.
2. GL accounts mapped in GMPL Chart of accounts and Country specific chart of accounts are
not unified in Generic server.
3. GL accounts mapped in GMPL Chart of account in Pharma Server and Genrics servers are
not unified.
2.4. IFRS compliance

In case of subsidiaries using SAP, IFRS accounting is maintained through L2 ledgers (parallel
ledgers) in SAP.
Mapping of (L2) IFRS Ledger in SAP with Company codes:
Name Entity
Company IFRS
Code
compliant
Templates
IFRS
Ledger
mapped
in SAP
In
use/Not
in Use
Glenmark Pharmaceuticals Ltd
1000
IFRS
L2
Yes
Glenmark Holding S.A.,Switzerland

(GHSA)
5110
IFRS
L2
No
Glenmark Generics Ltd
4000
IFRS
L2
No
Glenmark Generics Finance SA
5220
IFRS
L2
No
5300
IFRS
L2
No
Glenmark Generics Inc
6100
IFRS
L2
No
Glenmark Generics S A
5200
IFRS
L2
No
Glenmark Pharmaceuticals S.R.O.,

Czech Republic
8100
IFRS
L2
Yes
Glenmark Pharmaceuticals
S.A.,Switzerland (GSA)
5100
IFRS
L2
No
Glenmark Pharmaceuticals S.R.L,

Romania
8140
IFRS
L2
No
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Glenmark Pharmaceuticals SP Z.O.O.
8120
NO IFRS
0L
No
Glenmark Distributors SP.Z.O.O.
8110
NO IFRS
0L
No
Glenmark Therapeutics Inc, USA
6200
IFRS
L2
No
Glenmark Farmaceutica Ltda, Brazil
7100
IFRS
L2
Yes
GLENMARK PHARMACEUTICALS
SK s.r.o
8130
IFRS
L2
No
Observations:
1.
2.
3.
4.
GPLs & GGLs SAP Legal entities are mapped with L2 as non-leading ledger.
Non- leading (L2) configured to post accounting entries according to IFRS requirement.
Company code 8120 & 8110 (L2) IFRS non leading ledger will be configured.
Presently company codes 1000, 7100 & 8100 are using L2 non leading ledgers to prepare
IFRS Pack.
Entities not using SAP systems, prepare their IFRS Trial Balance in Excel sheet and forward the
same to Headquarters.
List of Non-SAP Subsidiaries Compliance with IFRS
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Name Entity
320489599
Group
IFRS
Currency compliant
Template
( Australia) Pty.Ltd., Australia
INR
Manual
Glenmark Pharmaceuticals Ltd ( Cardic centre)
INR
Manual
Glenmark Pharmaceuticals Ltd (pesticide Div)
INR
Manual
Glenmark Pharmaceuticals Limited Kenya
INR
Manual
Glenmark Access Ltd., India
INR
Manual
Glenmark Impex LLC , Russia
INR
Manual
Glenmark Pharmaceuticals Sdn.Bhd.,Malaysia
INR
Manual
Glenmark Pharmaceuticals Nigeria Ltd., Nigeria
INR
Manual
Glenmark Philippines Inc., Philippines
INR
Manual
Glenmark Pharmaceuticals FZE (UAE)
INR
Manual
Glenmark Pharmaceuticals EGYPT (S.A.E.)
INR
Manual
Glenmark Pharma.(Thailand) Co.Ltd.
INR
Manual
GPL Therapeutics
INR
Manual
Glenmark Dominicana SRL
INR
Manual
Glenmark Arzeneimittel
INR
Manual
Glenmark Generic BV
INR
Manual
Glenmark Pharmaceuticals Europe Ltd , U.K.
INR
Manual
Glenmark South Africa (Pty) Ltd
INR
Manual
Glenmark Pharmaceuticals EOOD, Bulgaria
INR
Manual
Glenmark Uruguay S.A.
INR
Manual
Glenmark Pharmaceuticals South Africa (Pty) Ltd.,South

Africa
Manual
INR
Glenmark Pharmaceuticals Mexico, SA DE CV
INR
Manual
Glenmark
Pharmaceuticals
Glenmark
Pharmaceuticals
Limited Venezuela, CA
INR
Manual
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Glenmark Pharmaceuticals Colombia ltda
INR
Manual
Glenmark Pharmaceuticals Peru SAC
INR
Manual
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2.5. Currencies Set-up

Group Currency
Currently applicable to follow company codes
In Pharma Server
- Group Currency is INR
- Group Currency Applicable to 1000,5100,5210
Generics Server
- Group Currency is INR
- Group Currency Applicable to 4000, 5300
2.6. Other Technical Set-up
Company is defined as G00001 Glenmark pharmaceuticals Ltd. Currency of the

company is configured in SAP as INR.
Pharma server company is extend to company code 1000,5100 & 5210
Group currency is applicable for 1000,5100, & 5210 company codes.
Generic server company is extend to company code 4000,5300
Group currency is applicable for 4000,5300 company codes
No unified document type is maintained in system, to carry out Inter-company
transaction.
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3. Steps in Consolidation Process As-Is
The following tasks constitute the entire process of consolidation in the present set-up:
1. Legal consolidation with respect to the entities that use SAP download the IFRS trial balance
and prepare the Trial Balance in defined Excel format for consolidation. These data in
templates are sent to the central consolidation team.
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Observations:
a) In case of GHSA Switzerland: GHSA Switzerland & its Subsidiaries send the IFRS
template to Headquarters (GPL) without consolidating the financials at GHSA
Switzerland level.
b) GHSAs subsidiaries send IFRS template to headquarters (GPL) directly for consolidation
c) All sap entities mentioned above downloads the data from SAP and Prepare their IFRS
complaint financials in Excel sheet.
2. In case of non-SAP GPL subsidiaries, user downloads the Trial Balance from financial
software and prepares IFRS Pack (Trial Balance, Balance Sheet, Profit & Loss account,
Schedules and Cash Flow Statement) in defined Excel format for consolidation. These data
in templates are sent to the central consolidation team.
3. In case of non-SAP GGL subsidiaries, user downloads the TB from financial software and
prepares IFRS Pack (Trial Balance, Balance Sheet, Profit & Loss account, Schedules and
Cash Flow Statement) in defined Excel format for consolidation. These data in templates are
sent to the central consolidation team.
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Observations:
a) In case of Non-SAP GGL entities and its subsidiaries send their IFRS complaint
financials to GGL for consolidation.
b) All sap entities mentioned above downloads the data from their legacy software and
prepare their IFRS complaint financials in Excel sheet.
4. Central Consolidation Team (Glenmark Pharmaceutical Ltd and Glenmark Generics Limited)
in Mumbai receives IFRS pack prepared in Excel predefined format by their respective
subsidiaries, SAP and Non SAP Legal entity (Subsidiaries) comprising of Trial Balance,
Balance Sheet, Profit & Loss accounts, Schedules and Cash Flow Statement in INR ( in
Local currency of some subsidiaries) and Inter-company transactions, Stock Reserve Details,
Forex Detail of realised and unrealised Exchange Gain/Loss. Consolidation of subsidiaries of
Glenmark Generics Limited is carried out at GGL level and it sends the same to GPL for
Consolidation. On receipt of finalised information from each entity GPL Mumbai prepares
the consolidated financials in INR after carrying out the Inter-company elimination.
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5. The trial balances received from subsidiaries is then translated into the group reporting
currency of INR. This activity is done by the subsidiaries before sending the data to the
consolidation team.
List of SAP entities and their local currencies
Name Entity
Company
Code
Company Conversio
Code
n from
Currency Local To
USD
Conversi
on Local
To INR
Glenmark Pharmaceuticals Ltd
1000
INR
INR
Glenmark Holding S.A.,Switzerland

(GHSA)
5110
CHF
Glenmark Generics Ltd
4000
INR
5220
CHF
Glenmark Generics Europe Ltd
5300
GBP
INR
Glenmark Generics Inc
6100
USD
INR
Glenmark Generics S A
5200
ARS
INR
Glenmark Pharmaceuticals S.R.O., Czech

Republic
8100
CZK
INR
S.A.,Switzerland (GSA)
5100
CHF
Glenmark Pharmaceuticals S.R.L,

Romania
8140
RON
INR
Glenmark Pharmaceuticals SP Z.O.O.
8120
PLN
INR
Glenmark Distributors SP.Z.O.O.
8110
PLN
INR
Glenmark Therapeutics Inc, USA
6200
USD
INR
Glenmark pharmaceutica Ltda, Brazil
7100
BRL
INR
GLENMARK PHARMACEUTICALS
SK s.r.o
8130
EURO
INR
USD
INR
INR
USD
USD
INR
INR
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Company code 5100, 5110 and 5220 convert their financial from Local Currency to USD and
from USD to INR. ( Accounts of these entities are rewritten till entry level in USD at HO)
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Name Entity
Currency
Glenmark Pharmaceuticals ( Australia) Pty.Ltd., Australia
AUD
Glenmark Pharmaceuticals Limited Kenya
KSH
Glenmark Access Ltd., India
INR
Glenmark Impex LLC , Russia
USD
Glenmark Pharmaceuticals Sdn.Bhd.,Malaysia
RM
Glenmark Pharmaceuticals Nigeria Ltd., Nigeria
NAIRA
Glenmark Philippines Inc., Philippines
PHP
Glenmark Pharmaceuticals FZE (UAE)
AED
Glenmark Pharmaceuticals EGYPT (S.A.E.)
EGP
Glenmark Pharma.(Thailand) Co.Ltd.
THB
GPL Therapeutics
CHF
Glenmark Dominicana SRL
DOP
Glenmark Arzeneimittel
Euro
Glenmark Generic BV
Euro
Glenmark Pharmaceuticals Europe Ltd , U.K.
GBP
Glenmark South Africa (Pty) Ltd
ZAR
Glenmark Pharmaceuticals EOOD, Bulgaria
BGN
Glenmark Uruguay S.A.
USD
Glenmark Pharmaceuticals South Africa (Pty) Ltd.,South Africa
ZAR
Glenmark Pharmaceuticals Mexico, SA DE CV
M Pesos
Glenmark Pharmaceuticals Venezuela, CA
Bolivars
Glenmark Pharmaceuticals Colombia ltda

Glenmark Pharmaceuticals Peru SAC
COP
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SOLES
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During the consolidation all the above mentioned currencies are being converted in INR at
headquarters except GFL Brazil, GTI USA, GPL Australia, GPL Thailand, GP Peru, GP
Venezuela, GP Colombia, and GP Mexico.
Exchange Rate used in Financial Consolidation:
Average INR Exchange rate is used to convert P & L Items

Closing INR Exchange Rate is used to convert Balance Sheet Items.
Specific Exchange rate maintained (Historical Rates) to convert Capital in Subsidiaries
& Investments in Holding Companies.
Currency specific exchange rate is not picked from SAP system on date of transactions and
maintained manually in Excel sheet for consolidation. This means In SAP BW , a table will
be created and Excel file will load the exchange rates in this table.
6. Inter-company transactions are carried out in GPL & GGL. Vendors, Customers, are created
in SAP & non-SAP system to carry out Inter-company transactions. No relationship exits in
SAP between Vendor & Customer. Separate GL accounts are also maintained for Intercompany transactions. The following are the different inter-company adjustments executed:
(a) Inter-company Sale by SAP Subsidiaries: The effect of inter-company sales are
eliminated when preparing consolidated statements. This means that the Sales Revenue
relevant to inter-company sales is eliminated from the total Sales Revenue figure.
Moreover, the Accounts Receivable in the sellers trial balance as well as the Accounts
Payable in the buyers trial balance will need to be reduced by the amount of intercompany sales.
The selling company also need to reduce the amount of COGS in proportion to the
quanitiy of goods delivered to inter-companies.
(b) Inter-company Sales - Non-SAP entities: Accounting for purchase / sales is different in
case of non-SAP entities. This varies with entity to entity. The non-SAP subsidiaries
separately report the amount of inter-company purchase and sales transactions included in
their trial balance. Based on these reported figures, consolidation team adjusts the
figures.
If the purchasing company also does not use SAP, then if its method of accounting entails
posting to Purchase Account, the same is adjusted from the Purchase Account based on
the amount reported by the entity.
(c)
Inter-company Loan & Interest Transactions: In SAP GPL & its subsidiaries,
created as Vendor with Vendor reconciliation account in SAP to carry out Inter-company
Loan & interest transactions. In case of GGL separate loan GL account are maintained in
SAP.
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(d) Inter-company Assets Purchase/ Sales: Margin is charged on Inter-company assets

sales and purchase of assets. This profit / loss is posted to a separate GL account. Such
profit / loss is eliminated.
(e) Inter-company Investments: Cross company investments through share capital or

otherwise is eliminated.
(f) Inter-company Margin Eliminations on Sales of Services & IP: Timely Intercompany sales agreements are prepared considering the fixed margins on sales. Margin
details are conveyed to HO team via mail. HO team use this input to eliminate the
margins on Inter-company transaction during legal consolidation and deducts the
calculated value from retained earnings at console level. Margins are maintained on:i. Sale of services & IP
ii. Expenses
iii. Capex
7. Exchange Conversion(FCTR): On conversion of Trial Balance of each legal entity from

Local currency to INR, exchange differences need to be posted in Separate GL accounts
Foreign currency translation reserve account before consolidation in respective Trial
balance.
8. Stock Reserve Calculation : Stock reserve represents the amount of profit element included
in the inventory value of goods purchased from an inter-company. This is a notional profit
and hence is eliminated by creating a Stock Reserve. The following two approaches are in
use by GPL:
Method 1:
In this method first, the impact of original entries passed for Inter-company transaction is
nullified and then COGS incurred for actual sales made to third parties in recognized/
restated.
Method 2:
In this method first, total Inter-company purchase is eliminated irrespective of the fact that
whether the same has been consumed or not. Then amount of Inter-company profit included
in stock of recipient entity (i.e. stock reserve) is reduced. The amount of profit element
included in the inventory is dependent on the material and batch number. These are
separately worked out manually to arrive at the total amount of Stock Reserve to be created.
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The following accounting entry are passed:

Debit Consumption Account
Credit Stock Reserve Account
9. Dividend Payment: Dividend paid to subsidiaries is eliminated.

10. Stock-In-Transit: Stock-in-transit in respect of inter-company transactions is treated in
multiple ways as below:
a) In GPL, the sale is considered complete if the goods are delivered ex-factory. ( No Stock
and Sales Reversals). Hence, the buying entity needs to account for the inventory as
stock-in-transit and consequently create a Stock Reserve for the same.
b) In GGL, stock in transit (specific to sales and purchase with respect to GGL and GPL )
cannot be tracked in SAP. The process is given as follows: CIF consignment (in case of
export Sales) LR Copy of respective consignment( in case of Domestic Sales) which has
not been shipped / aired, will be recognized in confirmation with logistic department and
list of such export invoices have been extracted from the month end sales. These sales
have been reversed and shown as inventory and corresponding profit element on said
sales has been worked out as per COGS ration of respective product for which sale has
been reversed, accordingly profit element is also to be reversed.
c) GGL Sales Export / Domestic transaction SAP entity
11. Purchase invoices pending for accounting (MIRO): On receipt of good (MIGO) material /
Stock register gets updated, it should be ensured that all purchase invoices against goods
received are posted before the books are closed.
12.
Inter-company Vendor & Customer closing balances eliminations.
13. Schedules to P&L and Balance Sheet: Schedules are annexures to the financial statements
showing the details of each item in the Profit & Loss Account. Each subsidiary, both SAP
and non-SAP, prepare these schedules as per IFRS format and send it to the Central
Consolidation Team. Along with these, the Central Consolidation team obtains the necessary
additional information from subsidiaries for the purpose of preparing these schedules as per
the Consolidation format. When preparing the consolidated schedules, various adjustments
including those arising from audit are effected to the reported figures using the additional
information from subsidiaries. This is apart from inter-company eliminations.
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14. Cash Flow Statement Eliminations: Each of the subsidiaries send the Cash Flow
statement prepared as per IFRS to the Central Consolidation Team. Using these statements,
the consolidation team prepares the Consolidated Cash Flow Statement after eliminating the
effects of inter-company transactions. Inter-company adjustments are similar to those carried
out for Balance Sheet and P&L statements.
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4. TO-BE Process Flow

4.1. Consolidation Process Flow
4.2. Consolidation of P&L and Balance Sheet

All entities close their books of account (all ledgers) for the quarter end. After successful book
closure, the SAP entities will send an intimation to the Central Consolidation Team. Then, the
financial figures can be extracted from ECC system for consolidation.
1. Non-SAP entities need to prepare the IFRS trial balances in the prescribed template and
send the same to the Central Consolidation Team. The trial balances will be in the local
currencies of the respective entities. Apart from trial balance, these entities will also need
to provide the following data in specified templates:
a. Open line items for inter-company customers and vendors;
b. Line items of inter-company purchase and sales transactions;
c. Details of closing stock including the batch-wise inter-company profit margins
for each material;
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2. Exchange Rates: As separate set of exchange rates will be used depending on the type
of data, these exchange rates will need to be maintained in BW system. Three types of
exchange rates will be needed for consolidation. Exchange rate will need to be
maintained with reference to each Company Code, Rate Type, Group Key (explained in
another section), Validity dates.
3. Group Key: For the purpose of financial reporting, GL accounts are grouped into
reportable lines. Hence, a Group Key is a grouping of GL accounts maintained in BW
solution. A Group Key of a specific reporting line is common for all the subsidiaries.
This table will need to be updated whenever a new GL account is created or the grouping
needs change. The user himself will be able to maintain this table subject to
authorization control.
4. Currency Translation: All the Trial Balances will be translated into the reporting
currency INR using the respective exchange rate types applicable to each account. As a
result, a residual balance is generated. This will be posted to Foreign Currency
Translation Reserve (FCTR) account. A report showing company code-wise trial
balance in INR will be available. This report will show the amount of FCTR to be
posted.
5. Inter-company Eliminations: The inter-company transaction effects will need to be
eliminated as detailed in section 2.1.7. Inter-company eliminations will be effected
through posting entries in BW solution manually. Elimination and adjustment entries will
be posted at the Group Key level. Using these reports, the user can:
Validate the Data before passing Journal /Eliminations entries
Validate the values to be passed in BW
Validate the output after passing the Journal / Eliminations entries
The following reports will be provided to aid the posting of these adjustments:
No.
Report Title
Detailed Description
1.
Trial Balance in Local

Currency
This report can be used to compare and check the

data uploaded. Trial Balance will show (i)
opening balance (ii) total of debits; (iii) total of
credits and (iv) closing balances for each GL
account per company code.
2.
Trial Balance After Currency
This is the trial balance after the local currency
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Conversion
values are translated into INR. This report will

also highlight the amount of FCTR to be posted.
If FCTR entry had been posted, then this balance
will reflect under the FCTR account.
3.
Inter-company Trade Report
A company code-wise list of all Sales and

Purchase of goods between sister companies is
provided. These will be identified using intercompany customer and vendor codes or the
Trading Partner characteristic and the GL account
posted to.
The amounts of Sales and COGS figures will be
reflected. The amounts will be displayed in both
the local currency, document currency and INR.
This report will be used for elimination of intercompany sales/ purchases and COGS.
4.
Inter-company Asset
Transactions Report
A company code-wise list of Sales and Purchase

of assets with the transaction details will be
available. The amount of profit or loss on these
transactions will also be displayed. These will be
identified using customer and vendor relationship
or the Trading Partner characteristic, the GL
account posted and the asset master details, etc.
The amounts will be displayed in both the local
currency, document currency and INR. Please
refer to Note (1).
5.
Inter-company Open Items

Report
A company code-wise listing of inter-company

open items of Accounts Payable and Accounts
Receivable identified based on customer and
vendor relationship or Trading Partner
characteristic and GL accounts. The amounts will
be displayed in document currency, local currency
and in INR.
This will be used for elimination of intercompany AR and AP balances.
6.
Report of Other Inter-
A company code-wise listing of inter-company
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7.
320489599
company Transactions
transactions other than dealing in materials or

assets will be contained in this report. For
example, payment of dividends, sale of services,
etc. The transactions will be summarized based
on the GL accounts posted to. Hence, the nature
of transaction will need to be inferred from the
GL account.
Stock Reserve Report
Report will show company code-wise inventory

obtained through inter-company transactions
details including material, batch number, quantity,
value and the amount of inter-company profit
(stock reserve). Please refer to Note (2)
Note (1): Depreciation on the profit element part of the asset value is also required to be
eliminated. However, it will not be feasible to automatically calculate these and report.
Hence, depreciation adjustment needs to be calculated manually.
Note (2): Profit will be arrived at by deducting the COGS from sales price. This margin
will be then applied on the quantity of inventory to arrive at the stock reserve.
Note (3): It has been decided that the practice of providing for Stock Reserve will be
uniformly followed for all entities. The method of complete reversal of inter-company
transactions (Method 2 described in section 2.1.7-8) will not be followed.
6. Posting of Inter-company Eliminations: The following adjustment entries are posted
when preparing consolidated statements. The postings will be made at the Group Key
level and not at the individual GL account levels.
a. FCTR entries to be passed in GL of Equity Capital group in BW
b. Inter-company Transaction Sale & Purchase Transactions matching in BW report
, on confirmation post elimination entries in BW manually
c. Intercompany Vendor & customer Open Line items(closing Balance) matching in
BW report, on confirmation post elimination entries in BW manually
d. Stock reserve entries, use BW report values and post elimination entries in BW
manually
e. Intercompany Dividend payment entries - Manual identification by User in SAP
or Non SAP system and post elimination entries in BW manually by GPL Team
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f. Intercompany margin elimination on sales, services & IP Calculation in excel

sheet and post manual entries in BW by GPL team
g. Intercompany Margins on sale of assets needs to be identify manually from Gain
or Loss Gl accounts maintained and entries needs to be passed in BW
h. Depreciation charges on Margins manual calculation in excel and need to post
the entries manually in BW
7. Stock-in-transit:
Going forward, disparate ways (as described in section 2.1.7 10)

of treating stock-in-transit will be discontinued. Stock-in-transit will need to be
recognized and posted in the books of the buying company. This posting will need to be
effected in the respective books of account and not in BW.
4.3. Preparation of Schedules:

1. Schedules will be generated by the BW solution based on the trial balance in a standard
uniform format for all subsidiaries. Any adjustments to this report will need to be carried out
through manual postings in BW. Consolidated Schedules will be prepared by summarizing
the individual reports. Consolidated Schedules have a different layout than the subsidiary
Schedules.
2. Elimination of inter-company transactions need to be reflected in the Schedules also. Hence,
for items of P&L and Balance Sheet items for which a Schedule exists, then the elimination
will need to be carried out at the Schedule item level. All the elimination scenarios
applicable for the P&L and Balance Sheet apply equally to the Schedules also.
3. Schedule items will also be represented by Group Key referring to a group of GL accounts.
Elimination or Adjustments will be posted in BW manually against the respective Group

Key.
4. The following adjustments will need to be manually posted in BW and there is no supporting
information or report available in the system:
a. Loans and Advances and Deposits are split into Short Term and Long Term;
b. Sundry Creditors for Capital Goods need to be segregated from total Sundry
Creditors;
c. Work-in-Progress of Intangible Assets;
d. Segregation of Investments into Quoted and Others;
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e. Loans and Advances to Subsidiaries are presently included in Sundry Creditors, need
to be reported separately;
All the above adjustments will need to be posted against the respective Group Key.
4.4. Consolidation of Cash Flow Statements:
1. Cash Flow statements will be generated by the BW solution for each subsidiary in an uniform
format. Any adjustments to be posted at subsidiary level should be posted using the manual
posting function in BW.
2. Cash Flow Statement is prepared based on the trial balance GL balances. Any information
that is not available in the system (ECC or BW) will need to be manually posted into BW.
3. Similar to eliminations effected for P&L and Balance Sheet statements, eliminations for are
also effected when Consolidated Cash Flow Statements are prepared. The following
elimination adjustments are carried out:
a.
b.
c.
d.
e.
Stock Reserves
Profit margin on inter-company sale of services & IP
Inter-company dividend, interest and other payments
Inter-company loans and investments
Adjustment of minority interest
4. Adhoc adjustments including audit adjustments presently made manually when preparing
Cash Flow Statements will need to be executed through journal entries in ECC system
wherever applicable.
5. Each of the Cash Flow report line will be defined as a Group Key representing a group of
GL accounts. Any adjustment postings will need to be posted against the Group Key.
4.5. Manual Adjustments:
During the entire process of consolidation, various manual adjustments need to be carried out at
the report line item level to arrive at the correct statutory reporting. This requirement pervades
all the reports in scope of this solution. The following approach is recommended:
a) Wherever GL account level or individual transaction level adjustments are needed, such
adjustments should be carried out through posting a journal entry in the financial books in
ECC. This will ensure proper reconciliation of final statements with trial balance.
b) Only those adjustments that are required to present financial figures in accordance with
statutory requirements and intended to provide a more detailed information that is not
captured in the system should be effected through a manual posting in BW.
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It should be specifically ensured that the following transactions has been carried out in SAP/Non
SAP system before initiating consolidation process in BW:
Stock-in-transit
All purchase invoices for which GRs have been posted need to be posted.
It should be noted that Stock Reserves cannot be calculated even in the new SAP design. A
report is being provided in BW to provide this result. Based on this report, entries can be posted.
Manual posting in BW will affect the data only at the reporting level and does not make any
change to the original data. BW system will not trigger any posting to the ECC system
automatically.
Manual postings in BW will be made with reference to the Group Key, Company Code and the
period. In order to ensure the integrity of the solution and to avoid duplication of adjustments,
the Group Key definition should be unique.
A report of all adjustment postings will be provided for audit trail.
4.6. List of Deliverables
The following is the list of reports that will be delivered by the BW solution:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
n)
o)
p)
Trial Balance in Local Currency

Trial Balance After Currency Conversion
Inter-company Trade Report
Inter-company Asset Transactions Report
Inter-company Open Items Report
Report of Other Inter-company Transactions
Stock Reserve Report
Subsidiary-wise Balance Sheet
Subsidiary-wise Profit & Loss Account
Subsidiary-wise Schedules
Subsidiary-wise Cash Flow Statement
Consolidated Profit & Loss Account
Consolidated Worksheets to Schedules
List of Manual Adjustments Posted
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5. Technical Design
5.1. Data flow in BW for financial consolidation - Long Term Solution
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5.2. Data flow in BW for financial consolidation - Short Term Solution
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5.3. Elimination Scenarios in Real time Cube
5.4. Master data: Info objects GL Account
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5.5. Transformations
Business Rules will be written in Transformations either from Persistent Staging Area
(PSA) to Data store Object (DSO) or between DSO to Info Cube depending on the
scenario
Transformations will include the following:
1. Direct assignment(1:1 mapping)
2. Writing Start Routine, End Routine, Field Routine as per Scenario
3. Writing BW formulas
5.6. Master data in BW, data sources and Info cubes

1
Master Data Info Object with Process Chain,

Source, Update Mode & Frequency of Loading
Worksheet in
Consolidation Blue Print - Draft 28. 07 2013_ver1.10.xlsx
Data Sources & Info Cube

Worksheet in
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5.7. Process Chains for data Loading:

1
Types of process chains
1) Transaction process Chains
2) Master Data Attribute Process chain
3) Master Data Text Process chain
Process chains to be created for master Info Objects (Eg: 0Customer, 0Material,
0GL_Account etc)
Process chains to be created for Transaction data load (Eg:Local chain
individually required for 0FI_GL_C10, 0FI_AR_4 ,ZIC_C03 etc)
The transactional and Master process chains will be finally attached in separate
META CHAINs which will be triggered .
Real Time info cube will be loaded as per loading pattern of the infocube
1.3.4. Frequency of Loading:
Daily
Weekly
Monthly
Quarterly
Yearly
1.3.5. Source Systems:

Source systems identified are as follows:
A) SAP System
B) Non SAP System
Non SAP System will include data for third party systems (eg: Tally, Profit plus,
1C etc)
For SAP system connectivity with BW server -- RFC connection to be created
For Non SAP system , Dump will be taken by Glenmark and provided in Flat file
templates in Excel or CSV formats which will be suggested by Capgemini
1.3.6. Queries in BW:

Query will be created using the following:
1) Calculated Key figures
2) Restricted key figures
3) Formula Variables
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6. SAP ECC 6.0 Design Requirements:

The following design requirements are assumed in the design of this Consolidation Solution:
Group currency will be USD;

Company code coding will be changed;
Leading ledger of the company code will be based on the respective company codes
local Accounting Standards. Additional ledgers are set up for IFRS, US GAAP and IGAAP for each of the company codes;
Trading Partner functionality will be introduced to track inter-company transactions;
Separate document type for inter-company transactions;
Separate customer and vendor Account Groups for inter-companies;
Separate reconciliation accounts, sales revenue accounts;
Unique material codes are used in inter-company transactions;
Batch management is used;
Foreign Exchange Valuation functionality is set up posting of valuation gain/loss
separately for vendor/customer/ledger;
Separate AR/AP reconciliation accounts for sale of fixed assets;
No manual entry will be permitted in the Sale of Fixed Assets Account;
Separate GL accounts will need to be used to post Capital Advances;
A separate GL account is created for Allowance for Credit Losses;
Separate GL accounts for Customer Advances
Separate reconciliation accounts for Micro and Small Enterprises if this is intended to be
reported;
Separate GL accounts for inter-company payables;
Segregation of inventory into traded and own-produced in case of FG that is both
procured external purchased and own-produced through separate GL accounts;
Reclassification of Debtors balance is carried out;
Debtors Discounted with Recourse will need to be posted to separate GL accounts;
Revenue from sale of goods and services to be posted to separate GL accounts;
Separate posting of cost of purchase of raw materials sold on trade.
7. Specific Design for Short Term:

The following data will need to be specifically maintained in BW to handle the consolidation for
Short Term:
a) Inter-company company code, customer and vendor relationship
b) Group Key definitions as per the existing Chart of Accounts
Consolidated statements will need to be prepared at two levels during the Short Term: (i) GGL
and (ii) GPL.
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8. Master data requirements:

Sr. No.
Masters for Financial Consolidation
Remarks
Company Code Master SAP Updation Frequency

Monthly & Adhoc Load
Data extraction from

SAP
Non SAP entities company data master updation in BW

To be maintained by Glenmark Team
( Suggested to use the same company code Logic Mapped
Existing SAP structure, Considering Existing Parent &
Subsidiary Relationship, will be finalized during
Implementation)
CG Will provide template

during Implementation
Console Balance Sheet , P & L Groups mapping with

SAP and Non SAP GL accounts, Z-Table will be
Maintained in BW, user need to update for non-assigned
GL accounts before Starting Consolidation process- To be
maintained by Glenmark Team

format during
Implementation
Proposed Short terms Solution considering
Worksheet in
Consolidation Blue Print - Draft 28. 07 2013_ver1.10.x
Worksheet in
Existing SAP Landscape No of Instances 2

Namely Pharma and Generic (No FSV Interface
with SAP).
Single point control, to identity the non Assign GL
to Groupings
Chart of Accounts from SAP will be updated in the
System on Monthly Basis
Report will be generated to identify unassigned
GL. accounts each entity wise, newly created GL
accounts will be one time assignment manually by
users in BW
Three types of exchange rate masters & data will be

maintained BW To Be maintained by Glenmark Team

during Implementation
Proposed Short terms Solution

-
Based on the existing SAP Landscape 2

Instances
Worksheet in
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Smoothen the Consolidation process without

dependency of rate maintenance by each entity
Single Point control on rate maintenance &
Validation
Accuracy in results
9. Enhancements - :
9.1. Enhancements to be written as required in data model in ECC and BW data
model
Start routine in BW
END routine in BW
Field routine in BW
Field enhancements in ECC
ENHANCEMENTS
WRIC Description
EF-ID
Data Object
Functional
Gap
Alternative
SAP Standard
Reason
Owner
This table will be filled when implementation starts
10.
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11.Security and Controls

(a) Changes to the Group Key definitions table should be restricted to key people in the
central Consolidation Team;

(b) Consolidated financial statements are highly confidential data till the same is legally
published. Hence, the access to this data has to be strictly administered.
12.Authorizations
S.No.
Task
Create Group Keys
Change Group Keys
Maintain Inter-company
relationship
Maintain Exchange Rates
Upload Trial Balance
Post adjustments
Generate subsidiary reports
Generate consolidated finance

statement reports
Security Authorization Requirement
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13.Annexure
13.1.
List of Formats and Templates
This attachment contains snapshot of all the documents in this document for ready reference.
Description
Attachment
Inter-company Export sale transaction

Intercompany export
sale transaction.docx
Inter-company Domestic Sale transaction

Intercompany
domestic sale transaction.docx
Inter-company margin elimination

Working of
Margin.xlsx
Exchange Conversion (FCTR)

Worksheet in
Consolidation 07 06 2013_ver1_FCTR.xlsx
Stock Reserve
Stock reserve
Calculaton Method.xlsx
Inter-company Sales transit stock

Intercompany Export
sale Transit Stock GGL.docx

Copy of
Format_SOFP.xlsx
Consolidated Profit and Loss statement

Copy of
Console_PL.xlsx
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Working for Cash
Flow Format.xlsx
Cash Flow Workings Sheet

Cash Flow Workings
Format.xlsx
Schedules to Balance Sheet and P&L

Schedule VI File.xlsx
Document type used in Inter-company transactions

Document Type used
in intercompany transaction.xlsx
Master data required for Consolidation in BW

Worksheet in
Data sources and Info cubes

Worksheet in
Naming convention
Naming Standards
and Development Guidelines - Glenmark.docx
Final Console report group level

Worksheet in
Final Console report- Drill down

Worksheet in
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Non SAP master data template company code
Master data GL account template
Worksheet in
Worksheet in
Exchange rate table template

Worksheet in
Inter-company customer vendor assignment table

template
Worksheet in
14.Glossory
Short Form
API
BDC
Budgeted Cost
BW
Capex
CE
CG
CO
COA
COGS
CO-PA
CTM
ECC
EHP
Long Form
Active Pharmaceutical Ingredient
Batch Data Communication a technique used in SAP to perform
database updates in the background using standard SAP transactions.
Refers to the planned cost of production of the products
manufactured based on the annual budgeted costs. This cost is
determined at the beginning of the year and usually kept constant.
This cost is used in MIS but not for valuating material movements
and inventory in the system.
Business Warehouse is an SAP solution enabling building of
tactical, analytical reports.
Capital Expenditure
Cost Element
Capgemini Consulting India
Controlling a module in the Finance application of SAP
Chart of Accounts
Cost of Goods Sold
Controlling Profitability Analysis: A component in SAP CO that
enables Profitability Analysis functionality.
Core Team Member
Enterprise Central Component
Enhancement Package
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EOS
ERP
FCTR
FI
GAAP
GGL
GL
GPL
GR
I GAAP
IFRS
IP
IT
MIC
MIS
P&L
QC
SAP
Standard Cost
W/C
WRICEF
320489599
Enterprise Organization Structure logical representation of how

each organizational unit of SAP will be used.
Enterprise Resource Planning
Foreign Currency Translation Reserve
Finance a module in the Finance application of SAP
Generally Accepted Accounting Principles
Glenmark Generics Limited
General Ledger A master data in SAP-FI
Goods Receipt a transaction posted when goods are received.
Indian Generally Accepted Accounting Principles the GAAPs
prescribed in the Indian Companies Act.
International Financial Reporting Standards
Intellectual Property
Information Technology
Master Inspection Characteristics
Management Information System refers to the set of reports used
for internal management analysis.
Profit and Loss
Quality Control
System Applications, Product in Data processing
Refers to the planned cost calculated before the beginning of every
month which is used by SAP for valuating material movements and
inventory.
Work Center
Workflow, Report, Interface, Customer Exit, Enhancement, Form
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BUSINESS BLUEPRINT

Program Disha: SAP

Review was done by Anup, Milind Sapre and

Updated based on workshop decisions. Short

Glenmark Pharmaceuticals Limited

Program Disha: SAP

Glenmark Pharmaceuticals Limited

Program Disha: SAP

Program Disha: SAP

11. SECURITY AND CONTROLS........................................................................................45

Glenmark Pharmaceuticals Limited

Program Disha: SAP

Program Disha: SAP

Profit & Loss Statement

Each legal entity in its own currency and also in USD;

Program Disha: SAP

1.3.3. Out of Scope

Consolidation of financial statements based on any GAAP (including I-GAAP and US

Program Disha: SAP

1.4. Business Driver

to minimize closing cycle period;

1.5. Business Process Description

Consolidated Balance Sheet

Glenmark Pharmaceuticals Limited

Program Disha: SAP

Glenmark Pharmaceuticals Limited

Program Disha: SAP

2.2. Technical System Landscape

GPL(Parent company) and its subsidiaries are mapped on Pharma Servers

Legal entities Not in SAP - GPL

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Glenmark Pharmaceuticals Limited

Program Disha: SAP

2.3. Chart of Accounts Structure

Glenmark Pharmaceuticals Limited

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Chart Of account on Generic Server

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GSA - 5110 Holding

Glenmark Generics ARG

GGL Holding SA 5210 on 1st April

Glenmark Pharma s.r.o

Glenmark Pharma Sp.z.o.o

GLENMARK PHARMA SK sro

Glenmark Pharma SRL

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2.4. IFRS compliance

Glenmark Pharmaceuticals Ltd

Glenmark Holding S.A.,Switzerland

Glenmark Generics Ltd

Glenmark Generics Finance SA

Glenmark Generics Finance SA

Glenmark Generics Inc

Glenmark Pharmaceuticals S.R.O.,

Glenmark Pharmaceuticals S.R.L,

Glenmark Pharmaceuticals Limited

Program Disha: SAP

Glenmark Pharmaceuticals SP Z.O.O.

Glenmark Distributors SP.Z.O.O.

Glenmark Therapeutics Inc, USA

Glenmark Farmaceutica Ltda, Brazil

Glenmark Pharmaceuticals Limited

Program Disha: SAP