a spotlight presentation

CHANGE MANAGEMENT
FINANCE & ACCOUNTS

Aikya CO Team

The only thing constant in this world is CHANGE

Contents

 Common Changes

 Cost Center Accounting

Profit Center Accounting

Internal Orders

Profitability Analysis

Funds Management
Common Changes

Current Process SAP Process

 Monthly MIS report is compiled by collecting data from  Data will flow from various modules in the system in to the
various departments in an excel sheet. Controlling Module where by MIS reports will be online.

 Integration and reconciliation of MIS with accounting was  Since CO is integrated with other modules like FI, MM, PM
not observed. and PS, reconciliation is done in real time.

 Period End process is a lengthy and time consuming  Period end process is simplified with Schedule Manager
exercise. and maintenance of allocation cycles.
Common Changes

Benefits Roles Impacted

 Plan / Budget /Actual - Variance Analysis is available on line for

management to take timely decisions.

 Data flows from various modules viz. FI, MM, PM, SD, PS
through real time integration facilitating the preparation of MIS on
time.
Cost Center Accounting
Current Process
 Cost Center Accounting is not done at the time when the
transactions are entered in to the system. It is done offline in
an excel sheet.
 To identify expenses to the responsible centers, various
ledgers are maintained in the legacy system.
 Allocation and distribution of overhead is done thru excel
sheet .
 Cost Center Planning is done outside the system.
SAP Process
 Cost Center Accounting will be done in real time from the
point of origin of financial transactions.
 The identification of expenses to the responsible centers is
done thru cost centers there by reducing the number of GL in
the system.
 Allocation and distribution of common overhead will be
done thru distribution and assessment cycles.
 Cost Center Planning is done within the system.
 Cost Center Accounting

Benefits Roles Impacted

 The drill down reports of cost center takes us to the origin of

expenses incurred to have a better control.

 Plan vs Actual is readily available once the period end activities

are done.

 Activity Types and Statistical Key Figures are used to allocate

the internal resources.
Profit Center Accounting

Current Process SAP Process

 Profitability of each operational unit is calculated in an excel  The data flows from various modules to Profit center as and
sheet as a periodic activity or as per requirement. when transactions occur. Profitability of each operational unit is
available in real time basis.

 Profit Center field is a mandatory field in all transactions. The

 Profit center data are not maintained in real time basis. profit center is either derived actively or passively.
 Assessment and distribution of overheads is done in excel Assessment and distribution of overheads is done as a
sheet. periodic activity by executing cycles.
Profit Center Accounting

Benefits Roles Impacted

 Balance sheet can be generated at Profit Center level with

the new GL functionality.

 Profit centers are now defined as independent organizational

units within the company code.

 Profitability of revenue generating units are readily available

for management purpose.
Internal Order
Current Process
 Order creation is totally new concept. Costs of special event /
activity are maintained in excel sheet as and when required.
 Planning for such event is done in excel.
 Various costs for production, maintenance etc. or maintained
by the concerned dept. in excel sheet.
 At the end of the period, costs are allocated to respective
assets / cost centers manually.
SAP Process
 Internal orders are created to capture costs of a special
event/ activity.
 Planning and Budgeting is possible at Internal Order Level.
 Internal orders will be created for capturing Assets under
Construction, Production, Maintenance Orders, Investment
Orders
 At the end of the period, settlement of internal orders are
done by executing the settlement run.
Internal Order

Benefits Roles Impacted

 Plan / Budget / Actual – Variance reports is readily available

 Settlement of expenses to various receivers at various

percentage / proportion can be handled easily
CO-PA (Profitability Analysis)
(Applicable to MPSEZ)

Current Process SAP Process

 At present profitability analysis is being done Cargo wise
and party wise in excel sheet.
 Planning is done in excel sheet.
 Overhead allocation is done in excel sheet.
 With the help of CO-PA, profitability analysis will be done
on various dimensions such as Berth, Import/Export, Cargo ,
Activity , Asset , Customer etc.
 Planning will be done within the system.
 Overhead allocation will be done thru assessment cycle in
CO-PA

Benefits Roles Impacted

 This will provide accurate details for making critical
managerial decisions.

 It will provide data on various type of performance indicators

for Balance Score Card purpose.
Fund Management

Current Process SAP Process

 Till now budget has been prepared for planning / information  With FM module, expenditure will be controlled as per Budget.
purposes. If budget is exceeded, the system will stop the transaction till the
supplement is provided.

 Comparisons of Budget, Planned cost and Actual Cost will be

 Currently comparison of actual expenses with budget is available from the system.
prepared manually in excel.
 For IPMS related expenses for MPSEZ, the budget will only
give a warning and will not stop the transaction.

Benefits Roles Impacted

 Better control of expenditure.
Change Management

Thank You