(APPROVED BY AICTE, MINISTRY OF HRD, GOVT.

OF INDIA, NEW DELHI)

SUMMER TRAINING PROJECT REPORT ON

Accou !" # S$%!&' ( ) P*oc&)u*& " SAP+ AT

UNIT ,

Go-( Go.(*(

(!/

( L(./"'0u* 1/&*")

UNDER THE GUIDANCE OF2 D*. V"3&. S/(*'(

UNDER THE SUPERVISION OF2 M*. S(u*(4/ M"%/*(

SUBMITTED BY, D&3& )&* S" #/ PGDM 5*) S&'

KCMT Bareilly

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Ac. o6-&)#&'& !
This project on Accounting System and Procedure in SAP provides me a platform to understand the Accounting Policies Accounting system and procedures of a Company! Project is very much fruitful for me for my Professional Carrier "evelopment! #t is a great pleasure to e$press my deep sense of gratitude to D*. V"3&. S/(*'( (D"*&c!o* PGDM))as my project guide for e$tending their %hole hearted cooperation and directing during the course of training and preparation of this project! # am deeply inedited for the &no%ledge thus also given to me an inspiring 'eal and valua(le suggestion from this time to complete this project! # am than&ful to S/. J"!& )*(. D"7"! )*" +,inance - Accounts. for giving me the interesting topic for developing my accounting s&ills - for getting &no%ledge of %orld fame accounting soft%are for my carrier gro%th! # %ould also li&e to ac&no%ledge M*. S(u*(4/ M"%/*(, A%%!. O88"c&* +,inance - Accounts.! )e %as my project supervisor and provided me complete support - motivation for completing the project during my summer training! # am also than&ful to all Account Store - )/ staff for their &ind co0operation for completing my project! # am also e$tremely than&ful to all of my friends and my parents %ho had given me great love and cooperation and (rought confidence in me to complete this project!

Gu*6" )&* S" #/ PGDM 5*) S&'

KCMT Bareilly

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DECLARATION
# here(y declare that the %u''&* !*(" " # project titled Accou !" # S$%!&' ( ) P*oc&)u*& " SAP+ B(9(9 H" )u%!/( L!) done in Go-( Go.(*( (!/ R&#"o ! This is su(mitted (y me as a part of our curriculum in partial fulfillment of the re1uirement for the a%ard of the (POST GRADUATE DIPLOMA IN MANAGEMENT . from #nstitute of Khandel%al College of Management Science and Technology Bareilly approved (y A#CT2 Ministry of )/" 3ovt! of #ndia!

D(!&2 P-(c&2, B(*&"--$

Gu*6" )&* S" #/ PGDM 5*) S&'

KCMT Bareilly

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PREFACE
Post 3raduate "iploma in Management +P3"M. program is one of the most reputed professional courses in the field of management! This course includes (oth theory - its application contents of curriculum! Corporate training is an integral part of the P3"M program . 2ach student is re1uired to undergo research %ith any topic in 4 rd Semester! As complementary to that every student has to prepare - su(mit a report on the research %or& conducted (y the student! # had privilege to do project %ith an o(jective related to the corporate %orld! # %as assigned a project %ith regard to the Accounting System and Procedure in SAP The present report is entirely an outcome of internal records of the company! This report is at continuation of the a(ove tradition!

Gu*6" )&* S" #/ PGDM 5*) S&'

KCMT Bareilly

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CONTENTS
#ntroduction of the organi'ation Page 5o! 67 0 89

*(jective of the Study

8: ; 87

SAP #ntroduction

8< 0 7=

/esearch Methodology

78 ; 74

S>*T Analysis

79 ; 7:

,inding and Conclusion

77 ; 7?

@uestionnaires

<6 ; <=

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I !*o)uc!"o o8 o*#( ":(!"o

KCMT Bareilly

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The 3roup came into e$istence during the turmoil and the heady euphoria of #ndiaAs freedom struggle! L(!& S/*" J(' (-(- B(9(9 9", founder of the Bajaj 3roup %as a confidante and disciple of Mahatma 3andhi and %as deeply involved in the effort for freedom! The integrity dedication resourcefulness and determination to succeed %hich are characteristic of the company today are often traced (ac& to its (irth during those long days of relentless devotion to a common cause! 1('(- ($( , !/& &-)&%! %o o8 J(' (-(- B(9(9, %ucc&&)&) /"% 8(!/&* " ;<=> at the age of t%enty0seven! Putting the 5ation (efore (usiness he devoted himself to the later only after #ndia achieved independence in =?9<! But %hen he did so he put his heart and soul into it! >ithin a short %hile he not only consolidated the Bajaj 3roup (ut also diversified into various manufacturing activities elevating the Bajaj 3roup to the status it enjoys till this day! Bajaj )industhan Bimited +B)B. %as incorporated on 84rd 5ovem(er =?4= under the name 0 The )industhan Sugar Mills Bimited ; The site selected for the first plant %as at 3ola go&arannath district Ba&himpur Kheri in the Terai region of Cttar Pradesh +CP. an area rich in sugar cane! The original capacity of the factory %as 966 tons of cane crushed per day +tcd.! Su(se1uently this capacity %as increased in stages and is currently =4 666 tcd! The distillery Cnit at this plant commenced production during the end of >orld >ar ## in =?99! #n the initial fe% years the major output %as in the form of po%er alcohol as an additive to petrol %hich %as then in short supply! The unit %as the first to supply alcohol0mi$ed petrol to the army!

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#n =?7< a ne% Company 0 Sharda Sugar - #ndustries Bimited 0 %as esta(lished as a su(sidiary of )industhan Sugar Mills Bimited! Cnder this ne% su(sidiary a sugar plant %ith a cane crushing capacity of =966 tcd %as set up in =?<8 at Palia Kalan a large cane supplying centre at a distance of a(out <6 &ilometres from 3olago&arannath! The o(jective of this ne% Cnit %as primarily to help the cane gro%ers of the area supply their produce to the ne% location closer to their fields there(y cutting do%n on transportation costs! The capacity %as su(se1uently increased in stages to reach the present == 666 tcd! #n the year =?DD The )industhan Sugar Mills Bimited %as renamed as ! Bajaj )industhan Bimited and shortly thereafter in =??6! R&#"%!&*&) O88"c& Bajaj Bha%an 8nd ,loor Eamnalal Bajaj Marg 887 5ariman Point C"!$2Mum(ai S!(!&2Maharashtra P" co)&296668= E'("- ID2investor!complaintsF(ajajhindusthan!com W&4 U*-2httpGHH%%%!(ajajhindusthan!com

KCMT Bareilly

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T/& Co'0( $ /(% %"7!&& Su#(* P-( !% u )&* B( H" )u%!/( L"'"!&) S.N O 1 ! 3 $ ' , & . 1 11 1! 13 1$ 1' 1, UNITS GolaGokarannath "aliakalan Kham#arkhera %arkhera (a)su*pur Kinauni %ilai Thana #ha/an %u*hana "ratappur Kun*erki Utraula Gangnauli 2a*auli %asti sugar mill Go#in*nagar Districts LakhimpurKheri LakhimpurKheri LakhimpurKheri "ili#hit Shah+anpur (eerut %i+nor (u0ar11arnagar (u0ar11arnagar Deoria Gon*a %alrampur Saharanpur %asti %asti %asti

&* o8 B(9(9 Sugar TCD 13 11 1 & & 1! , 1' 1! & 1 .

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BHL GOLA
BHL Go-( Go.(*( (!/ "% 'o!/&* u "! o8 BHL ( ) "! "% !/& A%"(?% ;%! ( ) 6o*-)?% > ) L(*#&%! %u#(* '"--. I! 6(% E%!(4-"%/&) " 5*) No3 ;<5;

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LOCATION OF GOLA UNIT

A V"&6 O8 B(9(9 H" )u%!/(

L!)., U "! , Go-(

Unit - Gola established near Indo-Nepal border, 35 K.M. away from District ead-!"arter #a$himp"r Kheri.

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SUGER MA1ING PROCESS

M(" R(6 M(!&*"(- " !/& 0*oc&%% '(." # %u#(* 2, Su#(*c( &

Sugarcane is (roadly classified into three varieties G0 2arly general and unapproved! Cane is so%ed during ,e(ruary and *cto(er every year! The first seed gro%th is &no%n as the plant and su(se1uent gro%th after harvesting from the stem is &no%n as /atoon! 2very farmer %ithin the command area of the Mill is provided %ith a calendar %hich tells him %hen he can e$pect a Mill Supply Tic&et +Purchy. against %hich he %ill deliver the sugarcane! )e then harvests the cane and transports it either in a (ulloc& cart or tractor trolley to the mill! Cane is also (ought at the millAs o%n centers %ithin the command area! This cane is then transported in truc&s or through rail to the mill! Cane is %eighed using an electronic %eigh (ridge and unloaded into cane carriers! #t is then prepared for milling (y &nives and shredders! Sugarcane juice is then e$tracted (y pressing the prepared cane through mills! 2ach mill consists of three rollersG 2$tracted juice mi$ed %ith %ater is %eighed and sent to the (oiling house for further processing! /esidual (agasse is sent to (oilers for use as fuel for steam generation
KCMT Bareilly Page 12

This juice is heated and then treated %ith mil& of lime and sulphur dio$ide! The treated juice is then further heated and sent to clarifiers for continuous settling! The clear juice is evaporated to a syrup stage (leached (y sulphur dio$ide and then sent to vacuum pans for further concentration and sugar grain formation! Thus the original syrup is desugarised progressively +normally three times. till finally a viscous li1uid is o(tained from %hich sugar can no longer (e recovered economically! This li1uid %hich is called final molasses is sent to the distillery for ma&ing alcohol! The sugar thus is separated from molasses in the centrifuge is dried (agged +:6 Kg and =66 Kg. %eighed and sent to storage houses! Sugar is made in different si'es and accordingly classified into various grades i!e! large medium and small!

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M(" P*o)uc!% o8 B(9(9 H" )u%!/( L"'"!&)

Su#(*

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V"%"o , M"%%"o @ Fu!u*& P-( %

Ou* V"%"o
To (e the leader in our chosen (usiness area create an organi'ation that all our constituents are proud to (e associated %ith set (enchmar&s that %ill (ecome the standard for others to emulate and through ethical (usiness practices create %ealth for our sta&eholders!

Ou* M"%%"o
To transform (ajaj hindusthan ltd! #nto a dynamic and vi(rant (usiness entity %here gro%th is an ethos and the long0term value creation for our sta&eholders is the paramount o(jective!

Fu!u*& P-( %
Bajaj hindusthan ltd! invested for Coal (ased Po%er 3eneration Plant +4?76 M>. at Balitpur +C!P!. - hoping for its success!

KCMT Bareilly

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P*o'o!&*%

;. Sh! Shishir Bajaj

Chairman - Managing "irector +Promoter.

>. Sh! Kushagra Bajaj

Iice Chairman - Eoint Managing "irector +Promoter.
Page 16

KCMT Bareilly

Bo(*) o8 D"*&c!o*%
5. Sh! "! S! Mehta
5on02$ecutive "irector

=. M! B! Apte
"irector +#ndependent.

A./! I! /uia
5on02$ecutive "irector +#ndependent.

B. Alo& Krishna Agar%al

5on02$ecutive "irector +#ndependent.

C. "! K! Shu&la
5on02$ecutive "irector +#ndependent.

D. "r! Sanjeev Kumar

"irector +Corporate - Begal Affairs.

KCMT Bareilly

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M(*.&!" #
=. Centrali'e Sale

S!*(!&#"&%

through Authori'ed Agents!

8. Price determination over sugar prices!

through

open

mar&et

no

control

4. Transportation

through

rail

and

road!

9. Bong

distance

delivery

through

%are

houses!

M(9o*
=. 8. 4. 9. Balrampur Andhra Thiru

Co'0&!"!o*%
Chini Mills Btd Sugars Btd! Btd! Btd Sugars Arooran Sugar

"

I )"(

"hampur

KCMT Bareilly

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Go3&* '& !

Po-"c"&%

Sugar is the second largest agro0processing industry in #ndia after te$tiles! Sugar (eing an essential commodity and having a high %eightage +4!74 J. in the >P# is regulated (y the 3overnment through control on cane pricing e$ternal trade and control on sugar that can (e sold in the open mar&et! "omestic sugar sales are regulated (y the Central 3overnment %hich decides ho% much a mill can sell in the open mar&et i!e! free sale 1uota and ho% much is to (e released (y the mills for distri(ution through the pu(lic distri(ution system that is levy 1uota %hich is presently at =6J! Bevy sugar prices are usually lo%er than mar&et prices! Sugar sales are su(ject to release orders from time to time! /epresentations have (een made to the 3overnment agencies for reduction in %eightage of sugar in >P# from 4!7= to =!7D! The 3overnment of #ndia had introduced a num(er of measures to provide relief to the sugar industry during the last year li&e allo%ing the e$port of sugar and introduction of e$port and transport su(sidies creation on of five million metric tones of (uffer stoc& providing interest0free medium term loans to sugar industries e1uivalent to e$cise duty paid in the ,!K 866706< and 866<06D! All these measures have given much needed support to the sugar industry %hich %as passing through a very difficult phase! )o%ever further incentives and reliefs are re1uired for long term0survival of the #ndustry!

KCMT Bareilly

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M(9o* P*o4-&'%
R"%.% Sugar industry is follo%ing ris&sG I. cyclical ( ) in 2 A! /a% material ris& B! Sugar price ris& C! /egulatory ris& Co c&* % nature primarily faces the

U co !*o--(4-&

R"%.%

A. R(6 '(!&*"(-

*"%.

Sugarcane is the principal ra% material used for the production of sugar! Business depends on the availa(ility of sugarcane and any shortage of sugarcane may adversely affect operations! A variety of factors (eyond our control may contri(ute to a shortage of sugarcane in any given harvest period! Some of the main factors that could contri(ute to a shortage of sugarcane are set forth (elo%G0 i. ii. iii. iv. "iversion from cane production to other cash crops! Adverse %eather conditions crop disease! "rop in "ra%l rate! Cnremunerative cane procurement price declared (y the State 3overnment andHor Central 3overnment! has (y sought to diversifying mitigate ra% into multiple material locations

The Company availa(ility ris&

KCMT Bareilly

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%ithin Cttar Pradesh and at the same time has impecca(le record of cordial relationship %ith farmers!

an

B. Su#(*

0*"c&

*"%. function of and supply and price demand and for various of sugarcaneL of our

The mar&et price for sugar is supply! ,luctuations in demand reasons includingG i. ii. changes in the availa(ility the

variances in competitorsL the availa(ility productsL and #nternational

production

capacities

iii.

of

su(stitutes

for

the

sugar

iv.

demand

and

supply!

C. R&#u-(!o*$ i!

*"%. ris&s

2nvironmental

The #ndustry - Company is su(ject to environmental regulations and may (e e$posed to lia(ility as a result of our handling of ha'ardous materials and potential costs for environmental compliance! ii! 3overnment policy0related ris&s

The #ndustry is regulated and the Company operates in a regulated environment! Central and State government policies and regulations affect the agricultural sector and related
KCMT Bareilly Page 21

industries and affect our operations and our profita(ility! 2thanol (usiness is highly dependent on 3overnment policy! Sugarcane price is controlled (y the State government and is generally increased every year! This is a systemic ris& %hich cannot (e alleviated unless the industry is completely decontrolled!

Co !*o--(4-& =! 8! 4!

R"%.%

Productivity "ra%l rate Management

Band%idth

Selection of appropriate machinery and maintenance of the same is critical for continuous operations during the crushing season! The Company consistently operates at an optimum capacity of around ?6J to ?:J! >ith its leadership position in the industry and professional %or& practices the Company is a(le to hire and retain appropriate talent!

KCMT Bareilly

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Ac/"&3&'& !%

o8

BHL

Bajaj )industhan Btd )!/! %as a%arded Amity )/ 2$cellence A%ard (y Amity #nternational Business School 5oida during its ,ifth Annual 3lo(al )/ Summit for the e$emplary acceleration and development of the organi'ation (y managing a talent pool in a talent scarce macro0environment thus achieving unprecedented gro%th (y utili'ing its human capital! @uality Circle %as introduced in all units to improve and maintain the 1uality services! A need0(ased training calendar has (een designed at all the units! This mainly comprises of Training on Safety )ouse0&eeping ,ire ,ighting Communication s&ills team (uilding etc! 5eed0(ased Training programs %ere organi'ed at units and corporate office (y internal and e$ternal faculties! #nduction programs are regularly conducted at unit level and *ffices (y )/ department for all the ne% employees! B)B introduced scheme for yearly Medical )ealth Chec&0 up for Management grade employees across the group! ,or this )/ department has arranged some recogni'ed hospitals to ensure genuine chec&ups! >elfare Activities li&e Medical chec&0up camp for employees and farmers at Cnits and ,lood relief camps %as set up for villagers at units of 2astern and Central 'one food pac&ets and medicines %ere distri(uted at flood
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hit areas of these 'ones %ere also organi'ed! 5e% Performance management system +Balanced score0card system. %as introduced across the organi'ation!

B(-( c&
The summarised is as underG Balance Sheet as >E;; 88!D9 0 =:!46 A% (! S&0!&'4&* 5E Source of fund ShareholderMs fund Capital 21uity Share Suspense Stoc& *pening *utstanding /eserve - Surplus Su(total Boan ,unds "eferred Ta$ Bia(ility +5et. Total Application *f ,unds ,i$ed Assets #ncluding C>#P #nvestments Current Assets Boan - Advances Bess Current Bia(ilities - Provisions 5et Current Assets Total

S/&&!
at Septem(er 46 86=8 /s! Crore >E;> 74!?9 0 0 9646!49 96?9!8D 9<D7!?? 0 DDD=!8< 86=8 :98<!8: =766!47 4=7?!7? =4=7!64 =D:4!77 DDD=!8<

4=6=!<< 4=4?!?= :=?7!D= 0 D447!<8 86== :9=<!67 =494!D9 49<6!98 =D?9!76 =:<:!D8 D447!<8

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O49&c!"3& o8 S!u)$
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The (asic o(jectives of the project %ere as follo%ingG

To understand B)B the accounting system in

To understand the procedure +Accounting Pac&age.!

in

SAP

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KCMT Bareilly

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SAP F A I !*o)uc!"o
,ull 5ame 0 datenverar(eitung #ndustry 0 Systeme An%endungen and produ&te in der +System Analysis - Program "evelopment. 2nterprise Soft%are

,ounded

>einheim 3ermany +=?<8.

Area Served

>orld%ide

/evenue

N =9!844 (illion +86==.

>e(site

%%%!SAP!com

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Accou !" # %$%!&' @ P*oc&)u*& " SAP

The Company has since successfully implemented SAP system and some of the (enefits %hich are (eing achieved are li&e re0engineering of the process to avoid duplicacy reduction in manual %or& controlling the procurement and e$penses (y (udgetary control online M#S from anytime and any%here for proactive decision ma&ing control on the credit limits of customers etc! ,inancial and managerial accounting tools in SAP /H4 are contained in the financial accounting +,#. and the controlling +C*. modules! The accounting data is complete and accurate (ecause the SAP system fully integrates all (usiness transactions that %ere entered from all the operational areas of a company! #n addition to the ,# and C* modules the SAP system includes the #nvestment Management +#M. Sales and "istri(ution +S". Materials Management +MM. and )uman /esources +)/. modules etc! Management accounting tools in SAP /H4 are cost center accounting internal orders product costing and activity (ased costing profita(ility analysis and profit center accounting! /H4 offers multiple currency features and a three0tier system that is capa(le of meeting very high demand from the accounting system for either transaction processing or financial reporting! /H4 also provides for a Osingle data entry pointO %here the data entered from any location is instantly sent to all other appropriate modules in the 2/P system!

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A)3( !(#&%

o8

SAP

#n the a(sence of an 2/P system a large manufacturer may find itself %ith many soft%are applications that cannot communicate or interface effectively %ith one another! Tas&s that need to interface %ith one another may involveG

#ntegration among different functional areas to ensure proper communication productivity and efficiency! *rder trac&ing from acceptance through fulfillment The revenue cycle from invoice through cash receipt Managing inter0dependencies of comple$ processes (ill of materials Trac&ing the three0%ay match (et%een purchase orders +%hat %as ordered. inventory receipts +%hat arrived. and costing +%hat the vendor invoiced. The accounting for all of these tas&sG trac&ing the revenue cost and profit at a granular level! system

Some security features are included %ithin an 2/P to protect against (oth outsider crime such as

industrial espionage and insider crime such as em(e''lement! A data0tampering scenario 2/P systems typically provide functionality for implementing internal controls to prevent actions of this &ind! 2/P vendors are also moving to%ard (etter tools integration %ith other &inds of information security

Maintenance and support services involve monitoring and managing an operational 2/P system! This function is often provided in0house using mem(ers of the #T department or may (e provided (y a specialist e$ternal consulting and services company

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SAP
"esigned to operate configuration! in a

S!*uc!u*&
three0tier clientHserver

Applications are fully integrated (et%een all applications!

so

that

data

are

shared

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Co)" # S!*uc!u*& " BHL 8o* u%" # SAP

Bajaj )industhan Bimited identify various entities! uses a series of codes to =. The highest0level identification is the Co'0( $ Co)&%! The Company Code is a four0digit code that identifies a separate accounting entity %ithin the SAP /H4 system! Co! =666 Code Bajaj "escription )industhan Bimited

8. Cost o(jects are the fund level of identification! A cost o(ject can (e a Profit center Business place Cost center >BS element - #nternal *rder! Brief Sample information regarding the logic and organi'ation of cost o(jects are as (elo% G0 P*o8"! C& !&*% c& !&* D&%c*"0!"o B)B 3ola Sugar B)B 3ola "istillery B)B 3ola Co03en B)B Palia Sugar B)B Palia "istillery B)B Palia Co03en

P*o8"! =66=6= =66=68 =66=64 =6686= =66868 =66864 Bu%" &%% =66= =668 =664 =6== =6=8 =6=4
KCMT Bareilly

P-(c& c& !&* D&%c*"0!"o B)B 3ola Sugar B)B 3ola "istillery B)B 3ola Co03en B)B Palia Sugar B)B Palia "istillery B)B Palia Co03en
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P*o8"!

Co%!

C& !&* Co)& D&%c*"0!"o Accounts "epartment )/ and Personal #nternal Auditors 3eneral Admin )orticulture Begal #T "epartment #ndirect Ta$ Project "epartment ,actory *verhead Sales "epartment 2nvironment - )ealth Production "epartment 2ngineering "epartment Store "epartment Analytical Ba(

Co%! C& !&* =66=6=AC6= =66=6=)/6= =66=6=#A6= =66=6=3A6= =66=6=)C6= =66=6=B36= =66=6=#T6= =66=6=#"6= =66=6=P"6= =66=6=,A6= =66=6=S"6= =66=6=2)6= =66=6=P/6= =66=6=236= =66=6=ST6= =66=6=@C6=

WBS

E-&'& !% D&%c*"0!"o =8: KIA "3 Set 4 Bed /oom flat 4 M> Tur(ine 4: Ton Boiler =86 Ton Pan /oofing

WBS E-&'& ! 866?0SCT/0P*)06= 866?0SB"50C#I064 866D0SBB#0P*)068 866?0S35B0BB/06= 866?0S3*B0C#I09<

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I !&* (-

O*)&* the particular num(er called

The ne$t level of identification indicates e$penses center position! This is a ten0digit *rder! T$0& P66= P668 P$$$ P$$$ P$$$ P$$$ Co''"!'& ! Co)&% O*)&* 3olQcnQ$$$$ 3olQcnQ$$$$ 3ol dev $$$$ 3ol dev $$$$ 3ol m&t $$$$ 3ol m&t $$$$

D&%c*"0!"o Mill gate Ban&ey gunj Cane survey %or& ,ormer meeting Eeep hire Pantry e$penses

This is a special feature of SAP for controlling the Budgets! 2$penses can not (oo&ed over feeded (udget in the commitment item!

5) AA AB A, A5 CA C) "A "3 "/ "P 2C 2R KA K3 K5 KP

"ocument T$0&

type

in

SAP

%ith

description D&%c*"0!"o

Asset posting Accounting document "ep! Posting 5et asset posting Cash journal Contract settlement Customer document Customer credit memo Customer invoice Customer payment 2uro rounding diff! 2$ternal num(er Iendor document Iendor credit memo 5et vendors Account maintenance
Page 34

KCMT Bareilly

K/ KP MB 5B

Iendor invoice Iendor payment MB settlement Kr end prov +CA Bgr.

9. The 3HB Account designates the type of revenue e$pense or (alance sheet item (eing recorded (y a transaction! The 3HB account is a eight digit num(er! The first digit of the 3HB (road type of account! Account se1uence indicates the

=$$$$$$$ Bia(ility8$$$$$$$ Assets 4$$$$$$$ #ncome9$$$$$$$ 2$penditure

L"(4"-"!$ Share capital /eserve - surplus ==6=$$$$ =86=$$$$ =868$$$$ =864$$$$ =869$$$$ =86:$$$$ =867$$$$ =86<$$$$ =86D$$$$ =8?6$$$$ Secured loans loans =46=$$$$ =468$$$$ =96=$$$$ =9:6$$$$ ta$ =:66$$$$ =:66$$$$
KCMT Bareilly

Cnsecured "eferred lia(ility

21uity share capital Capital reserve /evaluation reserve Capital redemption reserve Share premium account #nvestment allo%ance reserve Contingency reserve "e(enture redemption reserve 3eneral reserve Profit loss account "e(entures >or&ing capital loan account Short term loans *ther loans "eferred ta$ lia(ility "eferred ta$ asset
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Current

lia(ilities

=76=$$$$ =764$$$$ =76:$$$$ =76<$$$$ =786$$$$ =7:6$$$$ =7<6$$$$ =7<8$$$$

Provisions

Trade creditors 3ovt!duties paya(le Salary paya(le Provision for e$penses Security deposits 3ovt! ta$es Proposed dividend 3ratuity

ASSETS ,i$ed assets 8=66$$$$ 8=86$$$$ 8=46$$$$ 8=96$$$$ Current assets 846=$$$$ 84=6$$$$ 84=8$$$$ 8488$$$$ Boans advances 8484$$$$ 84:9$$$$ 84::$$$$ 84:7$$$$ 84:?$$$$ 8474$$$$ 8479$$$$ 84<?$$$$ 84D9$$$$ 3ross (loc& Accumulated depreciation Capital %or& in progress ,i$ed assets clearing account Closing Stoc&s Trade de(tors Current aHc in (an&s Molasses storage fund ," %ith (an&s Staff advance Material advance *ther advances *ther receiva(les Security deposits Service recovera(le Advance ta$ ta$ paid

I co'&
KCMT Bareilly Page 36

Sugar Alcohol

sales sales

4=6=$$$$ 4=6=$$$$ 4=68$$$$ 4=68$$$$

Molasses sales Bagasse sales Press *ther mud sales

4=64$$$$ 4=69$$$$ 4=69$$$$ 4=6:$$$$ 4868$$$$ 4869$$$$

income

Sugar sale free aHc Sugar sale levy aHc Sale of rectified spirit Sale of a(solute alcohol Molasses sales aHc Baled (agasse aHc Boose (agasse aHc Press mud sales aHc Miscellaneous sales Miscellaneous receipt

E70& )"!u*& Material Change cost in stoc&s 9=6=$$$$ 9=68$$$$ 986=$$$$ 9868$$$$ 9864$$$$ 946=$$$$ 9966$$$$ 9:6=$$$$ 9:86$$$$ 9:46$$$$ 9:96$$$$ 9::6$$$$ 9:<6$$$$ 3eneral administrative 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$
KCMT Bareilly

Manpo%er

cost

2$cise duty *ther e$penses

Cane Molasses Cost of goods manufactured Material in process Cost of good sold Salaries %ages allo%ances 2$cise duty Manufacturing operation Accommodation cost /epair maintenance Audit e$penses #nsurance Selling distri(ution "irectors fee "onations Travelling e$penses Iehicle e$penses Telephone Page 37

9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$ 9:D6$$$$

postage Consultancy charges Advertisement Boo&s - periodic >ater - electricity 2ntry ta$ Bicense -other fees Boss in transit *ffice maintenance e$penses Pantry e$penses Photography e$penses Pooja e$penses Printing stationary /ounding off e$penses Sales ta$ e$penses SAP e$penses Su(scription >ater cess e$penses

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SAP

U%&*

Lo#" *n this page user

W" )o6 V"&6 Bog on for logging in SAP

Clic&

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SAP U%&* ID @ Lo#"

P(%%6o*)

*n this page user gives his Cser Bogin #" - Pass%ord for opening the SAP

KCMT Bareilly

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SAP T,Co)&% S!*uc!u*& V"&6 *n this page user can select his desired T0code for %or&ing!

KCMT Bareilly

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T,Co)& FVAE, u%&) 8o* B( ." # T*( %(c!"o % @ E70& %&% H&()% &!c. *n this page user %ill give 3B code Amount 5arration Profit Center Business Place *rder etc! for desired %or&ing i!e! 3B for "e(it - 3B for Credit! Cntil "e(it or Credit is e1ual SAP %ill not allo% for Post the "ocument!

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Docu'& ! P*&3"&6 c*&(!&) !/*ou#/ T,Co)& FVAE

KCMT Bareilly

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Docu'& ! P*" !" # V"&6

KCMT Bareilly

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T,Co)& FAGLLE5, E70& %&% G& &*(- L&)#&* *n this page user can vie% "esired Bedger (y 3iving 3B Code he can also vie% the ledger according to his needs i!e! he can select Profit Centre Cost Centre Business Place Te$t Currency mode etc!

KCMT Bareilly

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T,Co)& FAGLLE5, G& &*(- L&)#&* U%&* V"&6 Comprehensive record of all information for e$ternal financial reporting!

KCMT Bareilly

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T,co)& F,><, Fo* Cu%!o'&* R&c&"3&) E !*$ Boo." # Through this T0Code user (oo&s entry of Amount received from Customer against Sugar Sale Molasses Sales and Scrap Sales etc!

KCMT Bareilly

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T,Co)& F,A5, Fo* Cu%!o'&* P($'& !% Through this T0Code user (oo&s entry of Amount Paid to Iendors against Purchases of materials and payments of Contractors etc!

KCMT Bareilly

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T,Co)& FBE5, Fo* A-- T$0& Docu'& !% D"%0-($ Cser can vie% /ecorded "ocuments of any Type or Period through this T0Code (y giving proper Company Code - Period!

KCMT Bareilly

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T,Co)& F,A;, Fo* R&c!"8"c(!"o

o8 E !*"&%

This T0code is used for ma&ing Eournal 2ntriesL Correction 2ntries are also made thorough this T0Code!

KCMT Bareilly

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T,Co)& FCHN, Fo* 3"&6" # C/&Gu& I%%u& R&#"%!&* All issued che1ues are saved in SAP +Che1ue /egister. at the time of issueL These Che1ues can (e vie%ed (y using this T0Code!

KCMT Bareilly

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T,Co)& FCHN, C/&Gu& I%%u& R&#"%!&* V"&6

KCMT Bareilly

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T,Co)& HFIEC, V& )o* D&4"! No!& Many Times Situation occurs in routine practices to "e(it the Iendors (y using this T0Code user can de(it the Iendors!

KCMT Bareilly

Page 53

T,Co)& HFI >5, D(!( U0-o() 8o* B( . R&co c"-"(!"o 2very Ban& is controlled (y )ouse Ban& - Account #" on this Screen user gives )ouse Ban& - Accounts #" - period of "esired Ban& on ,irst page for (an& reconciliation!

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T,Co)& HFI >5, D(!( T"c." # 8o* B( . R&co c"-"(!"o *n Second page appearing entries are pending che1ues %hich are not cleared from (an& user %ill tic& and post the presented che1ue in (an& after doing this entry %ill (e clear from pending che1ue list!

KCMT Bareilly

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T,Co)& HFI;>, B( . R&co c"-"(!"o

V"&6

*n this page user %ill give the )ouse Ban& - Account #" for vie%ing desired Ban& /econciliation!

KCMT Bareilly

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T,Co)& HFI;>, B( . R&co c"-"(!"o

3"&6

KCMT Bareilly

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T,Co)& FBVE, Po%! P(*.&) Docu'& !% SAP has cross chec& system in %hich user Par&s the document Assigned AuthorityChec&s - Post the "ocument in SAP for stopping user end mista&es!

KCMT Bareilly

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T,Co)& MIRO, 8o* 0o%!" # 3& )o* Goo)% R&c) No!&% " (ccou ! After receiving materials stores department prepares 3oods /ecd 5ote +3/5. %hich &eeps records of vendor material 1ty amount Ta$es etc! After receiving 3/5 in accounts account person chec&ed this 3/5 %ith Purchase *rder - passed in SAP through

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T,Co)& ME>5N, 8o* 3"&6" # Pu*c/(%& O*)&* "

SAP

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Pu*c/(%& O*)&* V"&6 !/*ou#/ ME>5N Purchase *rder includes all terms - conditions discussed (et%een (oth Iendor - Customer!

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T,Co)& FBED, R&3&*%(- o8 Docu'& !% SAP gives fle$i(ility to reverse %rong documents!

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RESEARCH METHODOLOGY

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/esearch is an original contri(ution to the contri(ution to the e$isting stoc& of &no%ledge ma&ing for its advancement! #t is the pursuit of the truth %ith the help of study! *(servation for &no%ledge through o(jective and systematic approach of finding solution to a pro(lem is research! The systematic approach concerning generali'ation and the formulation of a theory is also research!

T/& '( "0u-(!"o o8 !/" #%, co c&0!% ( ) %$'4o-% 8o* !/& 0u*0o%& o8 #& &*(-":(!"o !o &7!& ), co**&c!-$ ( ) 3&*"8$ . o6-&)#&, 6/&!/&* !/(! . o6-&)#& (")% " co %!*uc!"o o8 !/&o*$ o* " !/& 0*(c!"c& o8 ( (*!. D.S-&%" #&* ( ) M.S!&0/& %o #n this research ,irstly # have studied the company history CompanyMs 3ro%th CompanyMs products 3ovt! policies for sugar industry glo(al - #ndian scenario of sugar ris&s - concerns for (etter understanding of accounting policies - accounting procedures! After that # started my project of Accounting Systems Procedures in SAP! The first step calls for the researcher to define the pro(lem carefully and agree on the research o(jective! An old age saying0 A 0*o4-&' 6&-- )&8" &) "% /(-8 %o-3&).+ D(!( Co--&c!"o "ataMs collected through Personal intervie%s Sheets #nternet sites Boo&s etc! CompanyMs Balance

KCMT Bareilly

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SWOT ANALYSIS

KCMT Bareilly

Page 65

S!*& #!/ =. 8. 4. 9. :. 3lo(ally accepted )igh Speed Kno%ledge Sharing Centrali'ed net%or& Connected %ith %e( W&(. &%% =. )igh Cost 8. Bimited fle$i(ility for modification as per re1uirement! 4. /e1uired special training for using SAP 9. Cser cannot (e used multipurposely (ecause speciali'ed user re1uired for completing the specific tas&! T/*&(!% =. "ata may (e lea&age due to lea&age of user id and pass%ord! 8. )ac&ers may (e entered through %e( and hit the data! 4. >or&ing is interrupted %hen SAP server is do%n!

O00o*!u "!"&% =. #t %ill create (usiness information %are0houses 8. #t %ill (oost employee morale and efficiency! 4. #t %ill improve %or&ing condition!

KCMT Bareilly

Page 66

F" )" #%

KCMT Bareilly

Page 67

"uring the Summer Training at Bajaj )industhan Bimited # got &no%ledge of accounting policies and system of accounting and procedure in SAP! # also got the &no%ledge on different items as follo%ing G0 ,unctioning and general administration of finance accounts department! Coding structure in B)B for using SAP! SAP is helpful in national - international (usiness transctions! Mission vision - future plan of B)B Mar&et strategies - S>*T Analysis of B)B Achievments - Major pro(lems of B)B

KCMT Bareilly

Page 68

Co c-u%"o

KCMT Bareilly

Page 69

The summer training period in Bajaj )industhan Bimited is a great e$perience for me!The project report on Accounting System and procedure in SAP provided me platform to interact %ith

accounting policies of a system of the organisation!

company and learn a(out the accounting

"uring the study on Accounting system and procedure in SAP! # get &no%ledge of accounting policies of the company system of accounting and procedure in SAP! # also get the &no%ledge of functioning and general administration of finance - accounts department! #n this report # also understand ho% company maintains their accounts! #n this report # also attached some print screen of SAP as samples! # met many people (ut Mr! Eitender "i$it +)*" ,inance- Accounts. and Mr! Saura(h Mishra +Asst! *fficer. in account department of B)B 3*BA encouraged and motivated me a lot and provides me %ith very useful information! This my project enhanced my &no%ledge as %ell as increased

confidence also!

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Iu&%!"o

("*&%

KCMT Bareilly

Page 71

@ues! >hy

B)B

adopted

SAPS policies of SAP in not of and B)B ho% its %hether %or&sS

@ues! >hat are Accounting they are incorporated in SAP S @ues! >hat is the structure entries

@ues! )o% accounting @ues! >hether needsS @ues! >hether SAP

made or

SAPS as for group

is centrali'e

SAP has is is has

provide made you in in all

drill

do%n

structure

or than

notS pastS

@ues! #s SAP @ues! #s SAP @ues! #s SAP @ues! #s SAP

more glo(al time the

competitive presence of

helpful helpful fulfill of the

B)BS

managementS needs of B)BS or notS dataS

@ues! #s centrali'ation @ues! #s SAP reduces

SAP ris&

is (eneficial of loss of

sensitive

KCMT Bareilly

Page 72

@ues! #s SAP is (usiness transactionsS @ues! #s SAP

helpful the

in

national of

and dataS

international

improves

accuracy

KCMT Bareilly

Page 73