Tata Teleservices Limited.: Project Connect

Tata Teleservices Limited.
PROJECT CONNECT
SAP R/3 IMPLEMENTATION PROJECT
BUSINESS BLUEPRINT
Financials – Funds Management
Draft Version
29th September 2004

Contents
Executive Summary....................................................................................................3
1 Organization Structure.........................................................................................4
1.1 Organization Elements............................................................................................4

1.2 Funds Management Concept.................................................................................5
2 Master Data...........................................................................................................8
2.1 Commitment Item....................................................................................................8

2.1.1 Commitment Item Maintenance.......................................................................................8
2.2 Fund Center........................................................................................................... 11
2.2.1 Fund Center Master Data Maintenance.........................................................................11
2.3 Budget Structure...................................................................................................14
2.3.1 Budget Structure Master Data Maintenance..................................................................14
3 Business Processes...........................................................................................16
3.1 Budgetary approval and update process............................................................16

3.1.1 Data transfer from CO Planning.....................................................................................16
3.2 Maintain Funds Management account assignment derivation rules.................19
3.2.1 Automatic FM data derivation........................................................................................ 19
3.3 Closing and Carry-forward process.....................................................................21
3.3.1 Closing and carry forward process................................................................................21
4 Annexure.............................................................................................................24
4.1 Authorization.........................................................................................................24
4.2 Reports...................................................................................................................25
4.3 Data Conversion and Migration Approach..........................................................25
4.3.1 Master Data................................................................................................................... 25
4.3.2 Transaction Data............................................................................................................ 25
4.4 Interface Requirements........................................................................................26
4.5 Key Enhancements & Developments..................................................................26
4.6 Key Benefits............................................................................................................26
Business Blue Print Date:11/07/18
Version 1
/conversion/tmp/scratch/391886867.doc Version: Draft
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Executive Summary
Company Profile
SAP Implementation
Objectives, Scope and Approach
Objectives
Scope
Approach
SAP’s has a proprietary implementation methodology called as Accelerated SAP

(ASAP), which will be used as the base approach for the implementation at SAP.
ASAP is a solution from SAP to streamline customer implementations and deliver
faster business results.
ASAP incorporates a Step-by-Step Approach and avoids non-value added tasks. It

utilizes the Business Engine of SAP R/3 and is based on R/3’s best business
practices. ASAP provides a baseline for Business Process Requirements,
Configuration /Testing, and End-user Procedures/Training.
In the current phase of the project Business Process Requirements, as detailed in

the following pages, have been discussed and agreed in the form of QADB and Blue
Print Document.
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1 Organization Structure
The following organizational structures have been defined at TTSL for Financials
1.1 Organization Elements
Definition and Meaning:
The primary org element of Funds Management component is ‘Financial

Management Areas’ or FM Area.
This organizational unit within accounting structures the business organization from
the perspective of Funds Management and other related components.
Definitions at TTSL:
Its proposed to create one FM area for TTSL. This will be assigned to company
code and controlling area
Definitions at TTSL (eg;)
FM Area Description
TTL Tata Telecom Group
Assignment & Integration:
In order to be able to use Funds Management (FM) integrated with other

components, we must link the FM area, with the organizational units of other
components of R/3
 Integration with Financial Accounting: The determination of FM objects in

FI documents is achieved by assigning the FI organizational unit, Company
Code to relevant FM area. One or more company codes can be assigned to
an FM area
C. Code Name FM Area Description

TTSL Tata Teleservices Ltd., TTL Tata Telecom Group
 Integration with Controlling: If we want to integrate Cost and Project

Controlling with Funds Management, the system must also determine an FM
area and its components for transferring the data to Funds Management.
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E.g., if we want to derive the FM components from controlling entities like
cost center and WBS element we need to assign FM area to Controlling area
CO Area Name FM Area
TTL Tata Telecom Group TTL
 Integration of other components: All other organizational units, such as the

plant and the purchasing organization in Materials Management or the
personnel area in Human Resources, are linked to Funds Management via
the company code.
1.2 Funds Management Concept

Definition and Meaning
Funds Management component helps us in creating and executing budgets. FM

component is configured under the ‘Public Sector Management’ element of
Financials.
Integration
Funds Management is fully integrated with other components in the R/3 System. The
components that are to be integrated depend on the specific requirements of TTSL.
(FI/CO, MM, IM, PS, AM and PM)
Integrating the components of Materials Management and Funds Management

means that we can monitor budget for procurement transactions from the purchase
requisition to the invoice.
Basic Budgeting functions:
 Budgeting Models (Usage of ‘Update Profiles’)
Model 1: Budget update based on due date: Data is recorded in Funds

Management in the fiscal year and period in which the business transaction
affects liquidity or profit (for example, when the invoice is received) or leads
to a business transaction which has this effect.
[e.g., vendor invoice posted in 2004, for which the payment takes place in
2005, consumes the budget of 2005]
Model 2: Budget update based on Posting date: Data is recorded in

Funds Management in the fiscal year and period in which the business
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transaction is posted in the system (for example, when the invoice is
received) or leads to a business transaction which has this effect.
[e.g., vendor invoice posted in 2004, for which the payment takes place in
2005, consumes the budget of 2004 and not 2005]
Model 3: Separate Commitment and Payment Budget - update based on

posting date: The commitment budget for a fiscal year affects that fiscal year
and the ones following it which affects liquidity or profit.
[e.g., vendor invoice posted in 2004 for which payment is due in 2005, A
funds commitment posted for 2004 commits funds in the commitment budget
for 1996 and in the payment budget for 2005, on ultimate payment]
Model 4: Separate Commitment and Payment Budget - update based on

due date: The commitment budget for a fiscal year affects that fiscal year and
the ones following it which affects liquidity or profit. In which the transaction is
posted in the system
[e.g., vendor invoice posted in 2004 for which payment is due in 2005,
commits funds in the commitment budget for 2005 and in the payment budget
for 2005, or the fiscal year when it was finally paid]
Model for TTSL
Based on the current budgeting process in TTSL we are considering Model 2

i.e., Budget update based on Posting date (update profile ‘000102 - Payment
budget; Invoice basis; Posting date’ will be used)
 Annual Budget and Overall Budget
Annual values are budget values which are available in the budget or as
funds from secondary sources for an individual fiscal year.
Overall values are budget values which are available for more than one fiscal
year but are not distributed to individual fiscal years.
If budget values are available for several years but they are to be distributed
across the years according to certain stipulations, we can do this using a
combination of annual values and overall values.
Working with overall values is only possible in connection with funds, which is
not stipulated in an industrial kind of an environment.
Budget profile for TTSL:
Based on the business requirement of TTSL, (i,e., budget figures are for
annual usage in the fiscal year in which its approved for opex and never its
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given as an overall budget for usage across fiscals) it is proposed to use
‘Annual Budgets’.
In order to achieve the above objective we can use standard Budget Profile
– 00001 with following settings.
o Time frame = Annual values
o Availability = Releases and overall
 Warehouse concept (Procurement Budget/Consumption budget)
Integration of stock material procurement into Funds Management enables

us to control:
 The time (purchase order or goods issue) at which budget is assigned
 Whether budget is available for the warehouse itself for procurement,
This is achieved by managing warehouse as an independent funds
center
Concept for TTSL:
The business requirement of TTSL doesn’t warrant the configuration of

Warehouse concept.
i.e., Materials that are procured for stock and consumed by the Network
operations department. The budgetary controls are required on procurement
of such material and not on its consumption.
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2 Master Data
2.1 Commitment Item
Commitment items represent the functional grouping of expenditures and revenues

within a financial management area (FM area).
They can be year dependent or independent based on the business requirement. If

they are time dependent, then some of the characteristics in this commitment item
master can be changed within time interval (e.g. description)
2.1.1 Commitment Item Maintenance
Master data maintenance supports the entire standard features

e.g.; Create/ Change/ Display/ hierarchy display of the master
data.
Some of the important fields or components of CI master are as

follows:
Field Description / Usage
Commitment item 24-character alphanumeric code for a commitment item

(key)
Fiscal year If we are working with year-dependent commitment items in the FM

area, the field is visible in the master record.
If we are working with non-year-dependent commitment items in the
FM area, the field fiscal year remains hidden.
FM area We can use a commitment item in different FM areas. The year-

dependent or non-year-dependent maintenance of the commitment
items is determined using the FM area.
Name / Description We use the fields Name and Description to create the name and
additional description of the commitment item.
Directly postable / Commitment items marked as Not directly postable fulfil the function of
Not directly postable summarization items in the commitment item hierarchy in Funds
Management.
We can assign directly postable commitment items to the G/L accounts

or cost elements relevant to Funds Management.
Financial transaction We use the financial transaction to assign a clearly identify the
business transactions.
Commitment item This field determines whether the commitment item is budget relevant
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category or technical commitment item etc..
Authorization group We can use authorization groups for giving authorization for its usage
in transactions.
Funds center default We can specify a funds centre in the commitment item master record
value and it will be copied to the document when we perform a posting
transaction as long as another funds center is not already entered in
the document. Please note that the funds center is not derived from
the commitment item until we activate this function in the Customizing
of Funds Management Government. In Customizing, choose Master
Data  Assignments to Account Assignments in Other Components 
Choose Derivation Rule and copy the Funds center from commitment
item master data derivation rule, which is provided by SAP, to our
derivation strategy.
Statistical Commitment items indicated as statistical commitment items such

commitment item cannot be budgeted directly. At the same time, the postings are no
longer subject to availability control.
Superior commitment In individual maintenance, we can determine the directly superordinate

item commitment item. If we make this assignment in the Change standard
hierarchy function, the entry will automatically be made in the master
data.
Standard variant If we set the Standard variant indicator, the commitment item is used in
the operative variant "000" of the FM area.
2.1.1.1 Business Requirements /Expectations

Currently the budgeting is done externally under different
‘Budget heads’
These ‘budget heads will be converted to Commitment

items.
2.1.1.2 Process Explanation (to-be)
 As explained above the ‘Budget heads’ for opex will

be created as Commitment items in the SAP system
 As and when the need arises to create a new
commitment item it will be created and respective
budget structure will be amended to accommodate
the new commitment item
 Commitment items will be year dependent so that
as and when the need arises a temporary
commitment item can be created for a limited time
period
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 If there is change in the time dependent data the
same will be changed in commitment item master
SL # Commitment Item - Direct Cost

1 Access Charges1
2 Interconnect -Lesed Lines
3 Interconnect POI charges
4 Interconnect Others
5 Revenue Share of License Fees
6 WPC Royalty
7 Material Consumption
8 Cost of Sale - PT Equipment
9 Other Direct Expenses
10 Commission – UT
11 Commission – PT acquisition
12 Commission - PT Operators
13 Collection charges
14 Credit verification
15 Bill Printing/Mailing cost
16 Handset Handling Charges
17 Content Provider
SL # Commitment Item - Indirect Expenses
1 Employee Costs
2 Power & Fuel
3 Travel
4 Conveyance
5 Printing & Stationery
6 Rent, Rates & Taxes
7 Repairs & Maintenance
8 Communication
9 Marketing Expenses
10 Insurance
11 Professional & Consultancy
12 ISIT
13 Call Center?? (Should it be Fund Center?)
14 Bad Debts- for Revenue
15 Bad Debts- for Handset
16 Provision for NIUs
1
Access Charges should be budgeted under Marketing department and should not be subject to AVC
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17 Miscellaneous (incl.Provision for Assets)
18 Budget Overrun (Contingency Fund)
SL # Commitment Item - Technical
1 GR/IR and SR/IR items
2 Vendor and Customer Reconciliation items
3 Cash and Bank Accounts
4 Dummy (for PS integration)
Work steps in Commitment Item Master Data maintenance

Work Steps Description Performed SAP
By Transaction /
Function
Create Create CI maser data FMCIA
Change Change CI master data FMCIA
Display Display CI master data FMCIA
2.1.1.3 Special Organization Consideration

NA.
2.1.1.4 Description of Improvement

NA.
2.1.1.5 Description of Functional Deficiencies

None
2.1.1.6 Approach to cover Functional Deficiencies

NA
2.1.1.7 Interface Considerations

None
2.2 Fund Center

Within the organizational unit, the funds centers represent the structural grouping in
departments, responsibility areas, projects etc.
2.2.1 Fund Center Master Data Maintenance

e.g.; Create/ Change/ Display/ hierarchy display of the master
data.
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Some of the important fields or components of FC master are as
follows:
Field Description / Usage
Fund Centre (key) 16-character alphanumeric code for a Fund center
Fiscal year/ Validity If we are working with year-dependent FC in the FM area, the field is
period visible in the master record.
If we are working with non-year-dependent FC in the FM area, the field
fiscal year remains hidden.
FM area We can use a FC in different FM areas. The year-dependent or non-

year-dependent maintenance of the FC is determined using the FM
area.
Name / Description We use the fields Name and Description to create the name and
additional description of the FC.
Authorization group We can use authorization groups for giving authorization for its usage
in transactions.
Company Code The company code that uses this FC
Responsible person With respect availability control, we specify the person responsible for
the budget and therefore the recipient of the automated system
message here. The User ID of that person and name can be given
here
Standard variant If we set the Standard variant indicator, the FC is used in the operative
variant "000" of the FM area.
Address and Address and other communication data of the FC is maintained in

communication these fields

Currently ‘Departments’ are the Fund center equivalents,
which budget and control their expenditure.
It’s proposed to control the budgets of the departments at

circle level.
 Considering the business requirements of TTSL its

proposed to create Fund Centers at Circle-
Departments Level.
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 As and when the need arises to create a new Fund
Center it will be created and respective budget
structure will be amended to accommodate the new
Fund center
 Fund Centers will be year dependent so that as
and when the need arises a temporary Fund
Centers can be created for a limited time period
 If there is change in the time dependent data the
same will be changed in Fund Center master
Circles Departments
Delhi + NCR Marketing UT & PT
Rajasthan Network Implementation
Punjab IS/IT
Network Operations
Haryana Customer Care
Himachal Pradesh Human Resources
Uttar Pradesh East Finance
Uttar Pradesh West Sales
PTB
Karnataka
Supply Chain Mgmt.
Andhra Pradesh
Chennai + Tamil Nadu
Kerala
Gujarat
Madhya Pradesh
West Bengal
Bihar
Orissa
Rest of West Bengal
Hub Head Offices & CO Departments

CO Marketing UT & PT
Delhi Network Implementation
IS/IT
Chandigarh
Network Operations
Lucknow Customer Care
Bangalore Human Resources
Chennai Finance
Ahmedabad Sales
PTB
Kolkata
Supply Chain Mgmt.
Work steps in Fund Center Master Data maintenance

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Work Steps Description Performed By SAP Transaction
/ Function
Create Create FC data FMSA
Change Change FC data FMSB
Display Display FC data FMSC

NA.

 Budgetary control can be exercised online at
circle-department or hub head office-
department level.
 Clearly identified responsible person for the
fund center who will be accountable for the
funds requisitioned and utilized

None

NA

None
2.3 Budget Structure
The budget structure represents all the funds centers and commitment items in
hierarchical form.
The budget structure is year-dependent and is therefore valid until the time it has to
be defined as per the requirement.
Budget structure helps us in defining the ‘budget objects’, i.e., which combination of
FC and CI can be:
 Budgeted and/or Posted
 Which subordinate funds centers and commitment items is the budget to be
distributed
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2.3.1 Budget Structure Master Data Maintenance

e.g.; Change/ Display/ hierarchy display of the master data.
To simplify the data entry process we can use Budget Structure

templates when creating/changing/displaying the BS

Currently there is no such process. This is an additional
step in SAP to be carried out every year.
 Every year the BS has to be created before

updating the budget.
 If there are no changes in BS compared to previous
fiscal, the same can be ‘copied’ to the next fiscal
 In case of any changes to BS, we can create a
circle/department specific BS template which will
ease the operational process
Work steps in BS Master Data maintenance
Work Steps Description Performed SAP Transaction

By / Function
Create Budget Crates Budget and FM9K
objects Posting objects in the
system

As soon as the budget structure is created or changed
there is need to restructure budget for assigned and
distributed values. Couple of programs needs to be run
for this purpose. This is a technical requirement in the
system

NA.
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Manual updation of budget objects (Budget and Posting
objects) is very tedious and time consuming process.

BDC can be developed to update this data using flat file.

None
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3 Business Processes
3.1 Budgetary approval and update process
3.1.1 Data transfer from CO Planning
Presently the budgeting in TTSL is ‘bottom-up’ process. It

originates at the lowest levels of organization and moves
up to higher levels
Harmonizing, divisional and organizational objectives, a

master budget consisting, Balance Sheet, Profit & Loss
Account & Cash Flow Statement will be prepared, for
management approval and authorization. Approval will
constitute the authority for managers of each
responsibility & cost center (Fund Centers) to get their
activities together for achieving the common objective of
the enterprise
TTSL’s long term plan in SAP is to transfer Cost Center

planning figures into FM as budgets.
Based on the above expectation from SAP, as a first step

towards achieving the above objectives, we will be
assigning all the cost centers to respective fund centers
and the heads of operational expenses or cost elements
to the commitment items2
The above process ensures all the transactions posted in

SAP are assigned to respective budget objects for checks
and controls
Budget Release for H1 and H2
Initially the first half budget that is approved by the board

will be updated as Original budget and Released based
2
Please note that Capital budgeting is taken care by Investment Management (IM) module. In order
to eliminate the duplication in budget checks in both these modules, WBS elements as soon as they
are created are to be assigned to a ‘Dummy’ budget object which will not be relevant for budget
check in FM. In this way the capital expenses will be eliminated from FM availability control.
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on requirement for the fiscal. In the later half of the year
when the budget is revised and approved by the board,
the delta will be updated as Supplementary Budget and
Released.
AVC for business transactions and tolerance levels:
Active availability control (AVC) would check the following

transactions:
 Purchase Order, in case of Logistics transactions.

(PRs are not subject to AVC)
 Down Payment request, Down Payment, AP
Invoice and Journal Entry, in case of Financials
The transactions would be checked against the budget

released for that fiscal and the system action would be
set at the following levels:
Business Transaction % Control

All (+++) 80 Warning
All (+++) 90 Warning with mail to FC Manager
All (+++) 1003 Error / Stop
In order to maintain the separation of duties among the

people operating in this module, SAP provides two steps
i.e., parking of document and posting of documents for
budget update process
In case there is discrepancy in the budget figures and

there is need for transfer of budget from one budget
object to another it can also be handled in the system
through budget transfer process:
Handling of Contingency Fund requirement and

budget transfer:
Contingency fund4 initially will have zero value, once its

approved (either verbally or over e-mail it will be
supplemented with the amount, as a next step a budget
transfer is effected from contingency fund to the
3
Error message can be triggered at levels beyond 100% also. But business requirement at TTSL is to
stop the business transactions as soon as the budget is consumed.
4
Contingency commitment item is already there as part of corporate budgeting; this will be budgeted
and posted only under corporate fund centre.
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respective commitment item and fund center which
requisitions the funds
The budget transfers between commitment items under

the circle can be approved and affected at respective
circle level.

By Transaction
/ Function
Park and Approved budget for the fund FR 61 &
Post center and commitment item FR70
Original combination is updated in the (FR50)
Budget system
Plan data This step will be an FM9C
transfer alternative for the above step
and will be used at a later
data when TTSL wants to
update the CC plan figures
Park and This will be used when there FR63 &
Post is need for upward revision of FR70
Supplemen budget figures (FR52)
tary Budget
Park and Original or supplement FR62 &
Post budget to be effective for FR70
Release usage needs to be released (FR51)
Budget
Park and Available budget in sender FR69 &
Post budget object to receiver FR70
Budget budget object (FR58)
Transfer
None
o Budgetary control and reporting through the

system
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o Online active availability control – warning and/or
mail for insufficient funds, error in case of over
consumption etc
o Budget process can be park and post – there are
three tiers of budgetary approval in system:
1. Park / Request for Budget Update
2. Posting /Approval of the budget
3. Release of budget for actual usage.

None

NA

None
3.2 Maintain Funds Management account assignment derivation rules

3.2.1 Automatic FM data derivation
For data to be recorded in Funds Management (FM), we

must always enter a complete FM account assignment
(combination of funds center, commitment item) when
making postings in other components.
For each business transaction relevant to Funds

Management, account assignment derivation attempts to
determine values for the FM account assignment
elements from other account assignment objects from
either other components or Funds Management.
Automatic FM account assignment derivation must be

enabled to minimize the manual effort of entering
postings in which the account assignment elements can
be entered
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Following strategy will be used for automatic derivation of

FM account assignment objects
Business Transaction Derivation Rule / Strategy
Relevant CI will be specified in the GL

Reconciliation accounts
account. FC will not be relevant

Cash & Bank accounts
account. FC will not be relevant

Stock accounts account. FC will be defaulted from CI
master

Income accounts account. FC will be defaulted from CI
master
CI will be derived from mapping of cost

element to commitment item through
derivation strategy
Expense accounts
FC will be derived using mapping of
cost center to fund centre through
derivation strategy
CI and FC will be derived from mapping

Project related
of WBS element through derivation
transactions
strategy
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By Transaction /
Function
Create new When the need arises to FMDERIVE
derivation rule create new derivation
or strategy strategy this step will be
used5
Maintain The need arises when we FMDERIVER
derivation rule create additional master
values data components in
controlling or project
systems
When new expense

accounts/ cost elements
(primary) cost center and
WBS elements are created
the maintenance in the
table is required
As soon as new WBS element is created it needs to be

assigned to ‘Dummy’ fund center and commitment item. If
this is not done, none of the business transactions using
this WBS element will go through

o Automating update of funds allocation and usage
by different organizational entities

None
NA

5
During the initial customisation for TTSL all the possible standard derivations will be activated and
configured using this transaction.
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None
3.3 Closing and Carry-forward process

3.3.1 Closing and carry forward process
Currently in TTSL the budget carry forward process is not there.

If the budget is not utilized within the given fiscal the same will
be lapsed.
SAP system can handle both the scenarios of carry forward and
lapsing types of budget
Currently based on business requirement the carry forward will

not be configured, but this option can be used in future if TTSL
decides to go for carry forward
In period end do not carry forward the budgets. This will ensure
that the fund centers will be able to use the new budgets only
In the above process, just in case any transactions are posted

with a back date (to the previous fiscal) the same will consume
the budget of the previous fiscal 6. In order to avoid fund centers
to use budget of pervious fiscal, as a period end activity go and
maintain the new fiscal year and delete (or deactivate) the old
fiscal year
In addition to the above step, following period end

closing/opening activities needs to be carried out in order to
activate the budget for the new fiscal year
6
For this transaction to be posted the period in the respective fiscal year need to be open in financial
accounting and in funds management (T-code FMIR)
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By Transaction /
Function
Deactivate old Deactivate old fiscal year in FMIR
fiscal year in FM
FM
Activate new Activate new fiscal year in FMIR
fiscal year in FM
FM
Assign / Assign / activate Fund FMSG
activate Fund center hierarchy in fiscal
center year
hierarchy in
fiscal year
Activate Activate activity-related S_KI4_380001
activity-related budget version for the new 12
budget fiscal
version for the
new fiscal
Generate Generate budget structure FM9N
budget in new fiscal year
structure in
new fiscal
year

Until and unless all the above work steps are carried out
system will not allow any transaction to be processed in
the new fiscal year. Hence it’s important to do the above
activities well in advance before the start of new fiscal.

o Budget utilization and monitoring is well defined
and transparent

None

NA

None
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4 Annexure
4.1 Authorization
We can use the authorization concept to define authorizations in Funds

Management for the following activities:
 Processing and/or displaying master data
 Processing and/or displaying budget allocation
 Processing and/or displaying postings
Following roles are identified for users of Funds management.
Role Authorization Description

 Display of Master Data (FC, CI and Budget structure)
 Park/display budget documents (original /
FM Clerk supplement / transfer / release)
 Information system
 Display/Change/Create - Master Data (FC, CI and

Budget structure)
 Park / Post /display budget documents (original /
FM Supervisor supplement / transfer / release)
 Maintain FM account assignments
 Display/Change/Create - Master Data (FC, CI and

Budget structure)
 Park / Post / display budget documents (original /
supplement / transfer / release)
 Maintain FM account assignments
FM Manager /  FM Fiscal Year maintain
Administrator  Assign / activate Fund center hierarchy in fiscal year
 Activate activity-related budget version for the new
fiscal
 Generate budget structure in new fiscal year
 Reconstruct Budget and distribute / assigned values
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4.2 Reports
Currently it’s envisaged to use the standard reports provided in the system. If
need be, based on the functional requirements new reports will be
developed. Further based on requirement it will be decided to write report
either in report painter or through ABAP.
4.3 Data Conversion and Migration Approach

4.3.1 Master Data
Sl. Description of Manual/ SAP Data Source Pre-requisite Remark

No. Master Data to be program (if Program- data / process
Uploaded/ Entered Standard/ BDC/
LSMW)
1 Fund Center Manual / LSMW Manual / Flat file

2 Commitment Item Manual / LSMW Manual / Flat file
3 Budget Structure Manual / BDC Manual / Flat file
4.3.2 Transaction Data
It’s proposed to go-live in (activate) FM in phase 1B

(01.01.2005). Whereas other modules (viz., Financials and
Logistics) will be going live in phase 1A (01.11.2004). Hence
data posted between 1A and 1B will not contain FM data, but
they also need to be updated with FM data for effective usage of
FM during the fiscal
In order to achieve the above objective its proposed to follow the

transaction data upload method as illustrated below
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Sl. Description of Manual/ SAP Data Source Pre-requisite Remark
No. Transaction Data to program (if Program- data / process
be Uploaded/ Standard/ BDC/
Entered LSMW)
1 Original budget data Manual / BDC Manual / Flat file

upload
2 Subsequent Posting SAP Program SAP Standard
MM transactions (PR, RFFMCHAN (T-code
PO); Financial FMCN)
Accounting documents
4.4 Interface Requirements
Sl. Interface Description Source Target Frequency and

No. Reference No. System System Volume
None
4.5 Key Enhancements & Developments
Sl. Enhancement/ Description Remarks and Comments

No. Development
Reference No.
None
4.6 Key Benefits
o Budgetary control and reporting through the system

o Online active availability control – warning and/or mail for insufficient
funds, error in case of over consumption etc
o Budget process can be park and post – there are three tiers of
budgetary approval in system:
 Park / Request for Budget Update
 Posting /Approval of the budget
 Release of budget for actual usage
Version 1
Page 27 of 28
o Automated online update of funds allocation and usage by different
organizational entities
o Budget utilization and monitoring is well defined and transparent
Version 1
Page 28 of 28

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Tata Teleservices Limited.: Project Connect

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Tata Teleservices Limited.

29th September 2004

1.1 Organization Elements............................................................................................4

2.1 Commitment Item....................................................................................................8

3.1 Budgetary approval and update process............................................................16

Business Blue Print Date:11/07/18

Objectives, Scope and Approach

SAP’s has a proprietary implementation methodology called as Accelerated SAP

ASAP incorporates a Step-by-Step Approach and avoids non-value added tasks. It

In the current phase of the project Business Process Requirements, as detailed in

Business Blue Print Date:11/07/18

1.1 Organization Elements

Definition and Meaning:

The primary org element of Funds Management component is ‘Financial

Definitions at TTSL (eg;)

Assignment & Integration:

In order to be able to use Funds Management (FM) integrated with other

 Integration with Financial Accounting: The determination of FM objects in

C. Code Name FM Area Description

 Integration with Controlling: If we want to integrate Cost and Project

 Integration of other components: All other organizational units, such as the

1.2 Funds Management Concept

Funds Management component helps us in creating and executing budgets. FM

Integrating the components of Materials Management and Funds Management

Basic Budgeting functions:

 Budgeting Models (Usage of ‘Update Profiles’)

Model 1: Budget update based on due date: Data is recorded in Funds

Model 2: Budget update based on Posting date: Data is recorded in

Business Blue Print Date:11/07/18

Model 3: Separate Commitment and Payment Budget - update based on

Model 4: Separate Commitment and Payment Budget - update based on

Model for TTSL

Based on the current budgeting process in TTSL we are considering Model 2

 Annual Budget and Overall Budget

Budget profile for TTSL:

 Warehouse concept (Procurement Budget/Consumption budget)

Integration of stock material procurement into Funds Management enables

Concept for TTSL:

The business requirement of TTSL doesn’t warrant the configuration of

Business Blue Print Date:11/07/18

Commitment items represent the functional grouping of expenditures and revenues

They can be year dependent or independent based on the business requirement. If

2.1.1 Commitment Item Maintenance

Master data maintenance supports the entire standard features

Some of the important fields or components of CI master are as

Field Description / Usage

Commitment item 24-character alphanumeric code for a commitment item

Fiscal year If we are working with year-dependent commitment items in the FM

FM area We can use a commitment item in different FM areas. The year-

We can assign directly postable commitment items to the G/L accounts

Statistical Commitment items indicated as statistical commitment items such

Superior commitment In individual maintenance, we can determine the directly superordinate

2.1.1.1 Business Requirements /Expectations

These ‘budget heads will be converted to Commitment

2.1.1.2 Process Explanation (to-be)

 As explained above the ‘Budget heads’ for opex will

Business Blue Print Date:11/07/18

SL # Commitment Item - Direct Cost

Work steps in Commitment Item Master Data maintenance

2.1.1.3 Special Organization Consideration

2.1.1.4 Description of Improvement

2.1.1.5 Description of Functional Deficiencies

2.1.1.6 Approach to cover Functional Deficiencies