RD.050 Business Requirements Scenarios€¦ · Web viewProcess ID # Description. Type. ElementaryBusiness Function. Result. Agent. Status. AP004.01. Receive contractual agreement

RD.050 BUSINESS REQUIREMENTS SCENARIOS FOR CORE BUSINESS PROCESS

ORAERP Inc. COMAPNY

Oracle Accounts Payables

Author:

Creation Date: 02-June-13

Last Updated: 02-June-13

Document Ref: RD050_AP

Version: 1.0 Final

Approvals:

NAMES

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RD.050 Business Requirements Scenarios Doc Ref: RD.050

Ver.1.1 Final

Document Control

Change Record

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Date Author Version

Change Reference

29-May-13

1.0 No Previous Document

References

Document Name Ref.

MOM & AS-IS flow charts recorded --

Accounting policies and procedure manual by D&T

AP

Business plans for unbundled companies by D&T

--

Proposed Organizational Chart for 10 companies

--

Sector Law --

Tender specification requirements (excel sheets)

--

Reviewers

Name Position

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Name Position

Distribution

Copy No.

Name Location

1

2

Note To Holders:

If you receive an electronic copy of this document and print it out, please write your name on the equivalent of the cover page, for document control purposes.

If you receive a hard copy of this document, please write your name on the front cover, for document control purposes.

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1. BUSINESS PROCESS IDENTIFICATION 4

1.1 Supplier Creation (AP001)..................................................................................................................5

1.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002)....................................6

1.3 Creating Standard Invoice – Without Purchase Order (AP003).........................................8

1.4 Creating Prepayment Invoice (AP004)........................................................................................14

1.5 Entering Credit Memo (AP005)......................................................................................................18

1.6 Payment (AP006)..................................................................................................................................20

2. BUSINESS PROCESS DIAGRAMS 24

2.1 Invoice WorkBench..............................................................................................................................25

2.4 Invoice Processing For Assets.........................................................................................................28

2.5 Payment Process...................................................................................................................................29

2.6 Month End Process...............................................................................................................................30

3. OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE 31

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Objectives

The objective of this document is to outline the Business Requirements, in as much detail as possible, related to General Ledger business processes in ORAERP COM INC., Abu Dhabi, to facilitate implementation of Oracle Accounts Payables.

BASIC GUIDELINES TOWARDS FINALISATION OF BUSINESS REQUIREMENTS/CURRENT BUSINESS BASELINE DOCUMENT SHALL BE TO ENSURE AN EFFICIENT, SMOOTH AND EFFECTIVE IMPLEMENTATION, BY OBSERVING THE FOLLOWING:

1. The objective is to utilize to the best possible extent, the flexibility and facilities of Oracle General Ledger.

2. Flexibility, therefore, will be the norm and will be ‘Built – In’ at every stage to the best possible extent, based on available current information on the Business Processes given by the users.

3. Reduction of the gaps will be ensured as far as possible.

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Scope

The scope of this study is limited to the functions pertaining to Accounts Payble based on the Business Requirements information provided by ORAERP COM INC..

The focus of the study and this document is to identify and outline the processes involving the management of the Accounts Payable functions in the Oracle Application.

Business requirements Information

A combination of the following methods were used for collecting data on current business scenario and future requirement for the 10 new companies-

Standard questionnaire based discussions with purchasing and stores departments on requirement of standard functions, special issues

Visit to all all major stores and study of all processes, procedure, documents

Overview of current IT systems being used

Current forms and reports used for purchasing, contracts and inventory functions

Document review of proposed Business plans, Statement of Accounting policies and procedures by Deloitte & Touche with reference to inventory & purchasing function

(SAPP 3 & 12)

Study of proposed draft organization structure for the 10 companies and sector law

Information collected from Function Heads and their team on various dates during the Requirements Analysis in Jan 2003, through meetings and discussions at various locations. Discussions with user departments like Services, Generation, T&C, Projects etc

Discussions with General Managers of new companies.

Validation of requirements specified in the tender documents.

AS-IS Processes

Based on above and various Minutes of Meetings all the ‘AS-IS’ processes as understood were drawn.

TO-BE Processes

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The current business scenario has limited application and usefulness and requirement analysis has to be primarily evolved using available documents, requirements communicated through various discussions on the future vision, policies and procedures for the new companies.

The following inputs were considered for the design of TO-BE processes-

Proposed organization structure

D&T policies to the extent applicable to business processes

Best practices as per Oracle ERP standard processes

Elements of Current processes only to the extent applicable in future scenario

Abbreviations Used

The following abbreviations with the expanded forms have been used in this document:

Abbr. Detail

AP Accounts Payable

INV Invoice

CUR Currency

INT Invoice Type

SEQ Sequence

Amt Amount

DR Debit

CR Credit

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Abbr. Detail

LT Ledger Type

CUR Currency Code

INB Invoice Batch

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RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

1.1 Supplier Creation (AP001)

Process: Supplier Creation Business Function: Accounts Payable Date :May 30,2013

Mapping Team: ORAERP COM INC. Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N) : Yes

Process Number: AP001 Description: This process explains the process of creating supplier

Assumptions ADBC Company, Supplier master data is created at corporation level and the respective sites are created in each legal entity/operating unit

Event Description: This process is triggered when we want to purchase any material from the suppliers.

Number:AP.001 Type: Master Source Agent: Finance Team

Mechanisms: System Assisted

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Process ID # Description Type

Elementary Business Function

ResultAgent Status

AP001.01 Check whether the supplier exists in the system or not.

Internal – System Assisted. Use PIN number to be unique. Field should be mandatory

Supplier Account Query and Check Finance Team

Active

AP001.02 Inquire a Supplier record in the system with appropriate information such as Name or Number or etc.

Internal – System Assisted

Supplier Account Result of Supplier query

Finance Team

Active

AP001.03 If the supplier is not defined, enter necessary details such as Supplier name, supplier type, Bank account etc

Internal – Manual Supplier/Employee Account

Supplier details entered

Finance Team

Active

AP001.04 Supplier details created with automatic supplier number.


Supplier/Employee Account

Record Created Finance Team

Active

1.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002)

Process: Standard Invoice –With Purchase Order (PO)

Business Function: Accounts Payable

Date : June-2-2013


Librarian: Priority (H, M, L): High

Core (Y/N)Yes

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Process Number: AP002 Description: This Process explains creation of standard invoice, which has approved purchase order/ Receipt.

Assumptions: In ORAERP COM INC. invoices are created at operating unit level and are either matched with the PO or receipt.

Event Description: This process is triggered when we receive the material from the supplier.

Number:AP.002 Type: Transaction Source Agent: Finance Team



ElementaryBusiness Function Result Agent Status

AP002.01 Receive the Invoice from Supplier. Internal – Manual Standard Invoice –With PO

Invoice is available for entering into the system.

Finance Team Active

AP002.02 Enter the Invoice transaction into the system. Internal – System Assisted

Standard Invoice –With PO

Invoice available for matching to PO and receipt

Finance Team Active

AP002.04 If it is a foreign currency invoice, enter the invoice amount in foreign currency. System should be able to convert it into functional



Invoice entered in the system

Finance Team Active

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currency automatically based on corporate/user/spot rates.

AP002.05 Invoice currency should be same as PO/GRN Currency.




Finance Team Active

AP002.06 Payment currency should be same as Invoice currency.




Finance Team Active

AP002.07 Matching of the Invoice with PO and Receipt based on 2-way/3-way/4-way. The matching will be based on the supplier.



Matched Invoice with PO / Receipt.

Finance Team Active

AP002.08 Validate the Invoice. System would validate whether the invoice quantity and amount are same as PO /GRN



Invoice is validated

Finance Team Active

AP002.09 If some information is needed for the invoice, place a hold manually till receiving the information.



Hold placed manually.

Finance Team Active

AP002.11 Create Accounting for the Invoice and transfer the journal entries in detail to General Ledger.



Accounting entries Created.

Finance Team Active

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1.3 Creating Standard Invoice – Without Purchase Order (AP003)

Process: Standard Invoice –Without Purchase Order

Business Function: Accounts Payable Date : June-2-2013

Mapping Team: ADBC Company Process Owner: Finance Team


Core (Y/N)Yes

Process Number: AP003 Description: This Process explains creation of Standard Invoice, which does not have purchase order.

Assumptions: In ADCB supplier invoices are created at operating unit level and the invoice lines and distributions are created manually.

Event Description: This process is triggered when the services are received/any expenses incurred

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AP003.01 Receive the invoices from supplier or other concerned department.

Internal – Manual Standard Invoice –Without PO

Invoice is available for recording into system

Finance Team Active

AP003.02 Record a Standard Invoice details into the system with the correct expense account.

Internal – System Assisted Standard Invoice –Without PO


Finance Team Active

AP003.03 If it is a foreign currency invoice, enter the invoice amount in foreign currency. System should be able to convert it into functional currency automatically based on corporate/user/spot rates.



Finance Team Active


Internal – System Assisted Standard Invoice –With PO


Finance Team Active

AP003.05 Validate the Invoice in the System. Internal – System Assisted Standard Invoice –Without PO

Invoice is available for approval

Finance Team Active

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AP003.07 Create Accounting for the Invoice and transfer the Journal Entries to General Ledger


Accounting entries generated

Finance Team Active

AP003.10 System should allow defining distribution sets and assigning them to Supplier/Invoice.

Internal – System Assisted Distribution Sets Distribution Sets defined and assigned

Finance Team Active

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1.4 Creating Prepayment Invoice (AP004)

Process: Prepayment Invoice Business Function: Accounts Payable Date : June-2-2013

Mapping Team : ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N)Yes

Process Number: AP004 Description: This Process explains the creation of prepayments, which are treated as advance payment to suppliers/ employees.

Assumptions: ADBC pays advances to the suppliers and employees.

Event Description: This process is triggered when there are any advance payments to be made to the suppliers/ employees





AP004.01 Receive contractual agreement for making the Internal – Manual Advance Payment Prepayment Finance Team Active17


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advance payment Invoice is available for recording into the system.

AP004.02 Enter a Advance / Prepayment Invoice into the system

Internal – System Assisted Advance Payment Prepayment invoice is created.

Finance Team Active

AP004.03 Provide a Descriptive Flex field to capture PO, Reference details. The list should link to the PO, If it is to be referred to PO.

Internal – System Assisted Advance Payment DFF data is captured.

Finance Team Active

AP004.04 Validate the Prepayment Invoice. Internal – System Assisted Advance Payment Prepayment is validated

Finance Team Active

AP004.05 Approve the Prepayment in the system Internal – System Assisted Advance Payment Prepayment is available for payment

Finance Team Active

AP004.06 Create Accounting for Prepayment Internal – System Assisted Advance Payment Prepayment Liability Clearing is created.

Finance Team Active

AP004.07 Record a payment transaction into the System Internal – System Assisted Advance Payment Prepayment Available for application

Finance Team Active

AP004.08 Apply the prepayment upon receiving the invoice from Vendor.

Internal – System Assisted Advance Payment Prepayment Applied

Finance Team Active

AP004.09 Create the Accounting and transfer the entire Internal – System Assisted Prepayment Alert is sent Finance Team Active

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to General Ledger

1.5 Entering Credit Memo (AP005)

Process: Entering Credit Memo Business Function: Accounts Payable Date : June-2-2013


Librarian: Priority (H, M, L): High Core (Y/N)Yes

Process Number: AP005 Description: This process explains entering Credit memo.

Assumptions: Standard invoice/material is returned to the supplier

Event Description: This process is triggered if any purchase returns are there.


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AP005.01 Receive details of Credit t note from the supplier or the concerned department

Internal – Manual Entering Credit Memo

Credit memo is available for recording into the system

Finance Team Active

AP005.02 Create a Credit Note transaction into the system with negative value and match to a PO if there was a PO

Internal – System Assisted Entering Credit Memo

Credit Memo is created.

Finance Team Active

AP005.03 Validate the Credit Note in the system. Internal – System Assisted Entering Credit Memo

Credit Memo Validated

Finance Team Active

AP005.04 Approve the Credit Note in the system Internal – System Assisted Entering Credit Memo

Credit note is available for refund/adjustment

Finance Team Active

AP005.05 Create Accounting and Transfer to GL Internal – System Assisted Entering Credit Memo

Accounting is created

Finance Team Active

1.6 Payment (AP006)

Process: Entering Payments Business Function: Accounts Payable Date : June-2-2013

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Mapping Team: ADBC Company Process Owner: Finance Team


Core (Y/N)Yes

Process Number: AP006 Description: This explains the processing of supplier/employee payments for making invoice payments.

Assumptions: ADBC makes payments in different types like cash, check, bank transfer, L/C

Event Description: This process is triggered when the invoices are to be paid





AP009.01 Enter the payment details of the supplier like payment amount, bank etc.

Internal – System Assisted Payment Payment voucher is created

Finance Team Active

AP009.02 System should be able to print Checks (Pre Internal – System Assisted Payment Payment Finance Team Active

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printed running stationery) on payment. voucher is created

AP009.03 ADBC does payment by Check Payments mostly and cash payments very rarely.

Internal – System Assisted Payment Payment voucher is created

Finance Team Active


Internal – System Assisted Standard Invoice –With PO


Finance Team Active

AP009.05 Create accounting and Transfer to GL. It updates the Bank Accounts and Realized Gain/Loss

Internal – System Assisted Payment Accounting is created.

Finance Team Active

AP009.06 System should allow users to void/cancel a payment.

Internal – System Assisted Payment Payment is canceled/void.

Finance Team Active

AP009.07 System should print remittance advice on payment.

Internal – System Assisted Payment Remittance advice is printed.

Finance Team Active

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2. BUSINESS PROCESS DIAGRAM

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Start

System will automatically create distribution line

Receive the Invoice from Supplier

Match the Invoice Information with GRN

Approve the Invoice

Create Accounting & Run Transfer to GL Program

Run Mass Addition Program to Populate Asset Information to FA Module

Run Mass Addition Create Report to view Information transferred to FA Module


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2.1 Invoice Process for Asset Creation:

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2.2 Invoice Payment Process:

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Documents

RD.050 Business Requirements Scenarios€¦ · Web viewProcess ID # Description. Type. ElementaryBusiness Function. Result. Agent. Status. AP004.01. Receive contractual agreement