INTERNSHIP REPROT On FI-CO_ERP in [pic] ERP-Accounts & Finance Submitted By Faisal Rasheed Internship Report on PTCL Purpose Of Internship The purpose of this internship is to understand how the practical work is performed in a computer based ERP solution. In addition, to practically learn concepts which have been learned theoretically in education and to develop the understanding of the function performed by ERP Accounts and Finance. Scope of Internship In six weeks training span, it is difficult to understand every work flow of each Sub sections of Accounts & Finance department because of its huge volume of work.
The main focus was in the FICO module including General Ledger, creation of vendors, Customers, issuance/Receiving of advance, parking of invoices, posting and payment/receipt of invoices and cheque printing, Addition in Defaulters, Bad debts Provisions, Adjustment of Provision, and Recovery from Defaulter. Constitution and ownership, Mission, Vision & Core Values Pakistan Telecommunication Company Limited (PTCL) Pakistan Telecommunication Company Limited (“the holding Company”) was incorporated in Pakistan on December 31, 1995 and commenced business on January 01, 1996. The Company is listed on Karachi, Lahore and Islamabad stock exchanges.
The Company was established to undertake the telecommunication business formerly carried on by Pakistan Telecommunication Corporation (PTC). The business was transferred to the Company on January 01, 1996 under the Pakistan Telecommunication (Re-organization) Act, 1996 at which date the Company took over all the properties, rights, assets, obligations and liabilities of PTC except those transferred to National Telecommunication Corporation (NTC), Frequency Allocation Board (FAB), Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET).
The registered office of the Company is situated at PTCL Headquarters, G-8/4, Islamabad. As a consequence of PTCL’s privatization during 2006, 26 % of its shares were acquired by Etisalat International Pakistan LLC, based in the UAE. Pak Telecom Mobile Limited (PTML) PTML was incorporated in Pakistan on July 18, 1998, as a public limited company, to provide cellular mobile telephony services in Pakistan. PTML commenced its commercial operations on January 29, 2001, under the brand name of Ufone . It is a wholly owned subsidiary of PTCL. The registered office of PTML is situated at F-7 Markaz, Islamabad.
Maskatiya Communications (Private) Limited (MAXCOM) On March 01, 2010 the holding Company acquired 100 % shares of MAXCOM. MAXCOM has been voluntarily wound up, effective June 01, 2011 based on a special resolution passed by the members of MAXCOM. The net assets of MAXCOM have been transferred to PTCL at a book value amounting to Rs 68,382 thousand and the goodwill related to acquisition of MAXCOM has been written off during the year. PTCL Corporate Vision To be the leading ICT service provider in the region by achieving customers’ satisfaction and maximizing shareholders’ value. PTCL Mission To achieve our vision by having: • An organizational environment that fosters • professionalism, motivation and quality. • An environment that is cost effective and quality • conscious. • Services that are based on the most optimum • technology. • “Quality” and “Time” conscious customer services. • Sustained growth in earnings and profitability. PTCL Core Values • Professional Integrity • Customer Satisfaction • Teamwork • Company Loyalty Organizational Structure Accounts & Finance Department Related to ERP Only Under the President & C. E. O, total 9 department head Including seven S. E. V. P’s, C. T.
O and C. I. O are working each one is responsible for formulating planning & strategies at corporate level with the support of their Teams. Each S. E. V. P has more than one E. V. P’s and their teams. Under S. E. V. P Finance– C. F. O, three E. V. P’s are working related to Revenue Accounts & Revenue Assurance, Financial Planning & Treasury Management, & Accounts Services. Under the E. V. P- Accounts Services, total two General Managers including G. M Accounts Taxation & Financial Reporting, G. M ERP Finance & Assets Management are working. Each G. M has at least one Senior Manager or Manager or both. Each S.
M or Manager has at least one Financial Analyst or Assistant Manager. Internees are reportable to Assistant Manager or Financial Analyst. ERP and Its Functionality ERP (enterprise resource planning) is an industry term for the broad set of activities that helps a business manage the important parts of its business. The information made available through an ERP system provides visibility for key performance indicators (KPIs) required for meeting corporate objectives. ERP software applications can be used to manage product planning, parts purchasing, inventories, interacting with suppliers, providing customer service, and tracking orders.
ERP can also include application modules for the finance and human resources aspects of a business. Typically, an ERP system uses or is integrated with a relational database system. [pic] SAP – ERP Solution and its Functional Support [pic] SAP (System Application Product) R/3 is a 3 tier Real time data processing system developed by SAP AG, a German software company. The R/3 system, which is also known as ERP (Enterprise Resource Planning) System, is a tightly integrated collection of applications designed to handle the entire data processing for many different types and sizes of organizations.
Within R/3 is a run time environment and a set of application programs written in ABAP/4 programming language, which are highly customizable and scalable. SAP R/3 system has a three-tier client/server architecture. The classic configuration of an R/3 system contains three software layers, as given in the below picture. [pic] • Presentation layer The PC-based GUI interface that is used by the end-user community. • Application layer The SAP application servers that service requests for data and manage the interface to the presentation layer. • Database layer
The actual DBMS that communicates with the application servers to fulfill their requests for data. SAP allows the IT supported processing of a multitude of tasks, accruing in a typical company or bank. SAP ERP is differing from R/3 mainly because it is based on SAP NetWeaver: core components can be implemented in ABAP and in Java and new functional areas are mostly no longer created as part of the previous ERP system, with closely interconnected constituents, but as self-contained components or even systems. SAP in PTCL Every company has its own unique business processes to meet requirement and challenges. That is why PTCL uses the SAP.
SAP is standard project system it is divided into three servers. 1. Development Server 100 & 300 2. Quality Assurance Server 600 & 790 3. Production. Server 800 In the development Server 100 new developments are made by SEMINES/ PTCL Development Team with help on business functional Team leads, technical coding is done in this server through SPRO & ABAP Language. The ERP staff consolidates the issues of users and solves them as per requirements. ERP Team Test the development made in development Server 300. Development server data, after testing the codlings and commands, is readily available for transferring to quality server.
In the SAP the quality assurance is made for learning and testing. The QAS(Quality Assurance Server) 600 or 790 is used for the trainings purposes and to familiarize the user with the system. After testing the data, based on real scenarios, in quality Server the data is ready for transferring in production from where the users use it live. Production Server 800 is the main and live part of System Application Product on which all the financial and non financial records are kept on real time basis. FICO( Financial & Controlling) Module Includes the Following FI (Financial):- • General Ledger accounting • Accounts payable Accounts receivable • Asset accounting • Travel Management CO (Controlling):- • Cost element accounting • Cost center accounting • Internal orders • Profit center accounting • Profitability analysis Following Pictures will help you in understanding the SP ERP FICO Module and the related departments head functions of any organization. Process Flow: Payments & FR: Signatory Authority and Responsibility for Payment Drawing and Disbursement Office (DDO) i. e S. M of each region who is responsible for all nature of payment & recoveries related to employees, supplier and contractor as per policies and contracts made by this department.
Financial Reporting DDOs in regions recognize the financial transactions in whole month and the 3 working day of the next month are given to each department so that they can make sure the closing of last month is completed. Accounts section in the head quarter downloads all data related to each month from the main server & prepares an unregistered trail balance for the same, and then forward it to the SM nominal ledger for finalizes the records hence the financial information with any error can be rectified immediately so that Financial Statements can made on timely basis.
Monthly accounts, Quarterly, Half yearly & Yearly accounts are maintained and compared with the last year. Some estimates and provisions at year end are taken to the annual report. PTCL follow financial year from July to June Whereas ETISALAT follow calendar year as Financial Year. ERP SAP Assignment I was given internship with GM ERP-Finance whereas I had worked with Manager ERP-Finance and Financial Analyst D. B & I. S. They taught me many concept of SYSTEM APPLICTION PRODUCT (SAP) – FICO, & I am very thankful to both of them.
Following are the major activities performed by Financial Analyst in Accounts Payable; a part of FICO Module in SAP. Vendor Master Record: • Create/Change/ Display/ Block or Unblock Vendor Master Data (T CODE FK01, FK02, FK03,FK05): Type FK01 in command Line and press enter; here you will be asked for the fields of vendors to be filled like Company Code, Vendor Group, Title Mr. Mrs. M/S etc, Name, street address, Postal Code, Telephone, VAT Reg No, Vendor Bank Details, Sort Key, Payment Terms, and Payment Method. For the display use FK02 and if any changes in any field of vendor required use FK03.
If you want to block or unblock any Vendor use FK05. See below how to do the above task manually means without using TCODES, by using SAP Menu. • Parking of vender invoice (TCODE FV60, F-63) Credit Memo(TCODE FV65): Parking saves the data in the form of batches, here the entry is saved but without updating the related ledge. Posting is required for updating GL Balances. You can park invoices or credit memos which mean that you enter the invoice data or credit memo data in the system and save it in a document, but the system does not post this invoice initially.
You can change a parked document as often as you wish, for example, by adding or correcting data. The changes are logged. When you have finished changing the document, you can post the parked document. Only when you post an invoice or credit memo, does the system carry out the normal account movements and make the necessary updates. Why we Need of Parking? Document Parking by One Accounts Payable Clerk An employee is interrupted when entering an invoice. He or she can park the document and continue processing it later on. This saves him or her having to enter the data twice.
OR An employee wants to clarify certain issues before posting an invoice. He or she can park the document and continue processing it later on. This saves him or her having to enter the data twice. The process flow is organized in such a way that one employee parks invoices without checking them. Another employee then performs invoice verification and posts the parked documents, possibly after changing them. OR The process flow is organized in such a way that one employee saves invoices as complete for posting, this means that the balance is zero and no more changes are necessary.
Another employee then approves these invoice documents, if they are subject to release. • Posting of vender invoice/ Credit Memo or Changing in Parked Invoice (for TCODE See Picture): If you are directly posting an invoice/ credit memo then choose Document Entry 1st highlighted menu, otherwise to post the parked documents choose Parked document. Any changes in the post or parked document shall be dealt from the 2nd highlighted menu. • Outgoing Payment or Down Payment or Print Cheques (for TCODE See Picture): Outgoing Payment means payment against the booked invoice which is dealt with the 1st highlighted menu.
On the other hand, Down Payment means the Payment before the Invoice creation which is dealt through 2nd highlighted menu and the clearing of the same will also be dealt from this menu. In the both transaction you Debit the Vendor Account and Credit the Bank. Only difference is the Special GL indicator “a” which is used for down payment. As per PTCL / PTML policy no advance has been given to any Vendor without PO (approved) so this field is mandatory. Another interesting thing, payments are made by the Cheques (see highlighted 2nd & 3rd menu). To print Cheques following steps are required.
When a vendor invoice is parked document containing 25000xxx is generated. Next step is to post the invoice by a senior manager (as signatory authority) which generates document no. 26000xxx. Now Cheque is available for printing. Time barred Cheque is a type represents those Cheques which are not presented within six months, these will be reversed by the S. M. • REPORTING: Display Balances, Display/Change Line Items, Clearing except Down Payment (for TCODE See Picture): From highlighted menu you can view the balances or you can change any line item or you can clear invoices, reversals, credit memos, outgoing Payment.
However, Down payment partial clearing should be done from the down payment menu as mentioned in the previous page TCODE F-54. Clearing a vendor document means nothing is outstanding for the document; the document is completed in all respect. [pic] SAP Include many modules which are integrated with each other in such a way that output of one module can be used as input for another or the same module. The following Landscape Picture represents the all SAP modules functionality & its practical application. Almost all of the modules are purchased by PTCL and working. Other Task other than ERP SAP
SM Data Base Account coordinates with different integrated modules of system SAP i. e. FI, CO, HCM &MM. SM Data Base Account is directly reportable to the GM Accounts for any problem regarding working in SAP and also reportable to gm ERP Finance regarding FICO Role assignment. Following are the some responsibilities of Financial Analyst Data Base Account on which I have worked. Account Payable (Create, Block, And Unblock Vender) Non PO Based Vendors are created in SAP by a financial analyst Accounts & database. From time to time these vendors are blocked due to some reasons e. g.
Vendor regularly not in use, block for payment or block for business. However, whenever any blocked vendor is needed it can be activated/ unblocked. Account Receiveable (Create, block, and unblock customer) Customers are also created in the account data base department. These customers can be blocked, unblock at any time as per the requirement of the user. Fico Role Assignment New employee is assigned to work on SAP FICO Module; user role assignment for quality server 90 is made by financial analyst Accounts & database. This form includes the TCODES he or she is going to use on SAP.
GM ERP Finance, SM Accounts Database, GM ERP Teams, and new user must sign Role Assignment Document. After this step, ERP team creates new user on QAS (Quality Assurance Server). Once the user is familiar with the TCODES and its working on Quality he or she can apply for the Production Server 800 which is also dealt from this office. Liaison with Finance, Accounts and ERP An interesting task which is also performed here is to convey the problem of the FICO end users to the ERP Team on timely basis so that solution can be immediately available for the user who can then work efficiently.
Other Tasks To make each month a report of the users who are using TCODES which are not assigned any more to them and with the help of ERP Team withdraw these roles from their users as per authority matrix. To make sure all the GL, Vendor, Customers, Commitment items are also available in QAS 790 if compared with Production Server 800. MS Outlook is also used all over the departments and is becoming very powerful tool to convey massages on timely basis. This office receives emails for Vendors and Customers creation, blocking and unblocking. Special Terms used in SAP:
I had gone through many TCODES in SAP which were the part of FICO; it is not difficult to grip on SAP in this 6 weeks training if you are familiar with these terminologies given below you can easily understand how SAP works. Commitment Item: These account numbers are basically used for the allocation of budgets. Relationship of CI to GL is one to many which means One CI can cover more than one GL. e. g. there are so many Maintenance GL, however only one commitment item for these GL’s can be choose for budget allocation. Sort Key: It indicates the layout rule for the Allocation field in the document line item.
Assignment Field: Assignment Field is a part of Line Item Display. The system notes the line items that have been posted to each customer account. You can display the line items on the line item display screen. You can specify the sort sequence of the line items by entering a key in the Sort key field in the account master record. This key specifies how the Assignment field is to be filled in the line items that are posted to the customer account. When you call up the line item display, the system sorts the line items according to the contents of this field.
You can change the sort sequence in the line item display. e. g. 002 is the sort key when you make Customer or Vendor for NON PO BASED in PTCL company code 1100. 002 sort key is configured to display the document number with fiscal year as assignment field. Special GL Indicator: For all line items in customer or vendor accounts which are updated to an alternative reconciliation account in the general ledger, the special G/L indicator determines which account is to be selected e. g. “A” is used for down payment of Vendors; “M” is used for defaulters of Accounts Receivable.
Account Type: Key that specifies the accounting area to which an account belongs like asset accounts, customer accounts, vendor accounts, G/L accounts etc. The account type is required in addition to the account number in order to identify an account, since the same account number can be used for each account type . e. g. “K” for Vendors, “D” for Customer Document Type: It classifies the accounting documents. It is stored in the document header. Attributes that control the entry of the document, or which are themselves noted in the document, are defined for each document type.
Like “KA” is a vendor document. Posting key specifies the nature of account (e. g. GL account, Customer account, Vendor account etc. ) and controls the debit / credit indicator of the amount e. g. “40” is used for GL Debit “50” is used for GL credits Stimulation: means overview of accounting document after: o Execution of all Substitutions o Execution of all validations o Creation of automatically created line Items Profit Center: A profit center is a management-oriented organizational unit used for internal controlling purposes.
Dividing your company up into profit centers allows you to analyze areas of responsibility and to delegate responsibility to decentralized units, thus treating them as “companies within the company”. Cost Center: An organizational unit within a controlling area that represents a defined location of cost incurrence. Its a part of a company seen as a separate area of responsibility, location or cost-accounting entity. Place at which costs occur. Company Code: The company code is an organizational unit within financial accounting, e. g. 1100 for PTCL & 1300 for UFONE (PTML).
Account Group: The Account Group to which your vendor/ Customer/ Employee will belongs to. Control key in the Bank Details: Represent nature of account (i. e. Current a/c, Saving a/c, etc. ) Withholding Tax Type: This indicator is used to classify the different types of withholding tax eg. “Z2” is used payment for supply of Goods; “Z3” is used for contractors; “Z4” is used for payment of services W/tax Code: Codes determine is the various percentage rates for the withholding tax type. Liable: If you set this indicator, you tell the system that the vendor is subject to withholding tax for this withholding tax type.
If the involved party vendor or employee is exempted from withholding tax so provide details of exemption. e. g. 3. 5%, 6% etc Reference Document Number: The reference document number can contain the document number of the business partner, but a different entry can also be made. The reference document number can be used as search criteria for document display/change. Period: Account transaction figures are updated per period within the fiscal year . A maximum of 16 periods can be updated. You define how a fiscal year is divided into periods per company code e. g. period means March and 1 period means July. Document Header Text: This text contains explanations or notes which apply to the document as a whole, that is, not only for certain line items. Findings and Recommendations in Processes • In PTCL there is a room for improvement. Besides, this is one of the best organization w. r. t. its environment, culture and SOP’s. • In my opinion, meetings with the lower staff should also be done at least once in a month in a friendly manner. Managers, Senior Managers, & General Manager should ask their working problems in their respective epartment and should also ask for the solutions. • E mail in PTCL taken the place of meetings. In my point of view, email of an officer should be considered as authentic proof for getting required authorization for any task. • Coordination and Communication between departments are excellent. • One department must support another department irrespective of their own interest. Organization Interest must be the first priority while working. • I believe that Job rotations should be done to improve skills of employees in all related departments. I found employees are very loyal and dedicated towards their assigned work. • Extracurricular activities arrange by PTCL like Painting Exhibition is another good and relaxing activity for employees and their families. In my opinion, such occasion must be held at least once a year. SPECIAL THANKS I am indebted and thankful to the PTCL which gave me a chance to learn about the business processes of accounts and finance wing and also thankful to the staff especially to the Manager ERP Finance and Financial Analyst D.
B & I. S under whom I was attached with. They are all professional and cooperative and guided me that how to work in a professional environment. [pic][pic][pic] ———————– S. E. V. P Finance/ CFO President / Vice President E. V. P Account Services G. M Accounts G. M ERP Finance S. M Accounts D. B & I. S Financial Analyst ERP Accounts Financial Analyst D. B & I. S Manager ERP Finance Accounts ———————– 21