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STATEMENT OF CONFIDENTIALITY /
DISCLAIMER
This document is the property of Caritor, Inc. No
part of this document shall be reproduced, stored
in a retrieval system, or transmitted by any means,
electronic, mechanical, photocopying, recording,
or otherwise without prior written permission from
Caritor, Inc.
Table of Contents
Table of Contents
Bills of Exchange......................................................................................................................................3
1. AS IS Process........................................................................................................................................4
2. Core to Be Process..........................................................................................................................6
Changes to Existing Organization..........................................................................................................................7
Description of Improvements and Key Metrics.......................................................................................................7
Notes on Further Improvements.............................................................................................................................8
Functional Deficit and Method to Remove That......................................................................................................8
Interface Requirement............................................................................................................................................8
System Configuration Considerations....................................................................................................................8
File Conversion Considerations..............................................................................................................................8
Any reports required related to current business process......................................................................................8
Any document/output would be printed for this business process..........................................................................8
Authorization Considerations..................................................................................................................................8
End User Training Requirements............................................................................................................................9
Bills of Exchange/Hundi
TO-BE Document
Sr. No of TO BE document 18
Version Management This Document is subject to change control. Every change of the document has
to Undergo change control procedure and has to be registered in the following table
1. AS IS Process
A. Bills/Hundi Receivable
i. Sale Entry
To Sales A/c
No Entry
To Customer A/c
NAW Fbd discounts all the bills receivable. In respect of export sales usually NAW Fbd doesnt receive any
Hundi as sales realization.
B. Bills/Hundi Payable
a. Purchase
Dr Purchases
Cr. Vendor
b. At the time of receipt of hundi from vendor for acceptance or at the time of acceptance by NAW Fbd
No Entry
Dr Vendor
Cr. Bank
2. Core to Be Process
Bill of Exchange is the negotiable instrument, accepted by the payer as a guarantee against the
amount payable. Bill of exchange can be discounted with bank and on the due date, payer is bound to
pay the money to the banker. If he fails to pay the money then the person who discounted the bill is
liable to pay money to the banker. Bills of exchange are handled by special G/L method in SAP.
Bill of Exchange- Payable
When the Goods are received, and MIGO is done, the system will pass the entry debiting raw material Domestic
account & crediting GR/IR clearing Account. When the Purchase order is raised, and Invoice Verification for a vendor
is done with Document Type RE, the system will Credit the Vendor and Debit the GR/IR Clearing Account.
F-42/F-51
When B/E is accepted by us- Transaction code F-42 will be used. The posting key 28 on vendor (normal transaction)
and Posting Key 39 and special transaction type s (special GL Transaction) would be used.
When the amount has to paid to the Bank, the transaction F-40 has to be done, with special GL indicator s the
vendor liability would be cleared off, to the outgoing cheques clearing account.
F-40
The Transaction code F-51 could also be used in place of F-42, where by the clearing will also take place
automatically.
The Open line items on a vendor could be seen through FBL1N by ticking the Special GL transactions.
After Sales, agreed portion of liability is transferred to Financier account. On acceptance of bill of
exchange by the financier, Transaction Code F-36 is to debit the financier account (Special GL) and
credit the financier (normal) account. Posting key 09 is used to debit financier account with Special
GL indicator. Special GL indicator W would be used for this purpose. Transaction Code F-33 is used
to discount the BOE receivable with bank, which will debit the Bank A/c, Bill discounting and other
charges and Credit the BOE bank sub-account for the contingent liability. The following accounting
entries are passed:
Bills
On acceptance of BOE by customer (F-36)
Further Notes
- Needed to create Bills payable, Bills receivable and Contingent liability Account
Interface Requirement
NA
Authorization Considerations
Detailed Authorization matrix will be defined for all users in the common file for all
modules.
Business Manager
Operations Manager
Transaction Owners
02
03
04
05
06
07
08
09
10
11
B. Custom Developments
<E.g.:
Print Requirements
1.0
2.0
Development Requirements
1.0
Report Requirements
1.
2.
3.