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This document is consolidated out
of actual live implementation scenarios
at Virgo Engineers Ltd.
Broad Business Scenarios
1. Sales Cycle
(Using Sales Order Type sequence)
* Standard
* With PCF
2. Planning Cycle
* PRP
3. Purchase Cycle
(Using Purchase Order Type sequence)
* Inquiries
* PRP Indents
* Manual Purchase
Orders
* Sub-contracting
4. Production Cycle
* In-house
Production (Including shifting of Production Planning)
* Sub-contracting
* Re-work Orders
* Change in Routing
Sequence
5. Stores
* Production
Receipts
* Production Issues
* Material Receipts
* Material Rejects
* Indenting for
C-Class Items
The relevant
scenarios would include the respective Finance and Localization effects.
Business Scenarios for Production (Shop
Floor)
Scenarios
Implication
BaaN Procedure
Remarks
1.
Simple Production
Procedure
* Production order
for a manufactured item generated & transferred through MPS, MRP,PRP,INV and created
manually
* Routing is fixed
and all operations are done in house
* No changes in
delivery date i.e. start and finish date of the order.
* No part delivery
* No rejection
* No change in
material requirement as per BOM.
* No change in
order quantity
1. Maintain
Production Orders.
2. Print Order
Documents
3. Release
Production Orders
4. Enter Material
Issue for Production
Orders
5. Issue Inventory
6. Report
Operations Completed Or Enter Hours Accounting
7. Report
Production Orders Completed Or Report Order Completed
Globally
8. Close Production
orders
* Step 2 is
necessary only if it is set as mandatory in SFC Parameters.
* Enter Hours
Accounting is a session in Hours Accounting-Maintenance
* Maintain Production
Planning session can be consulted at any point in time to track the
progress of the order for operations
* There will be two
sessions "Enter Material Issue for Production Orders" &
"Issue Inventory"
after step 3 to issue
material for the order.
2.
Production Order
procedure with changes at the planned stage
* Changing the
routing attached to the item
* Changing the
order quantity.
* Changing the
start and delivery dates.
* Change in
capacity requirements
* Sequence is same
as above
* Change the
quantity, routing, and start and delivery in the session "Maintain
Production
Orders"
3.
Production Order
procedure with changes after releasing the order to shop floor
* Changing the
quantity ordered and the start and delivery dates, before starting any
operation.
This situation
arises after step 3 in the sequence as above. This can be done in two ways.
* "Maintain
Production Order"-Change the quantity and dates in the session
"Maintain Production
Orders"
* "Shift
Production Planning"- shift the whole order/s to the desired date after
changing the
quantity.
* Change the
quantity and dates in the session "Maintain Production Orders" and
say "yes" when
the message "
Set status to Print Modified Documents" comes while saving the data.
* The second option
is useful while rescheduling a whole range of orders.
4.
Production
procedure with changes in routing after the order has been released/operation
has
started.
* After the order
is released the routing needs to be changed.
* After some operation
has been done on that order the routing i.e. the work center, machine,
or set up/run times need to be changed because
of breakdown of machine or overload or man power
shortage etc.
* The sequence will
be same as above but only Maintain Production Planning session has to be
invoked either after step 3 or step 6
* The task, work
center, machine can be changed in the corresponding fields. An operation can
be removed or added in the routing sequence in
this way.
* If routing sheet
is required to be printed again to reflect these changes then it can be
done through session "Print Order
Documents" by printing "Duplicates"
5.
Production
procedure with rescheduling of remaining operations when some operations have
already been completed.
* Shifting the
planning of a production order.
This situation
arises after reaching step 6 in the sequence described above. There are two
ways
to do it.
* "Maintain
Production Planning "- change the date and day percentage in the field
"Start
Remainder".
* "Shift
Production Planning "- specify the order/orders and the date to which the
planning
is shifted to and the operations which are not
started yet will be shifted.
* Whether the
preceding operation and the succeeding operations will be shifted or not
depends
on the setting of the fields "Moving
Method of Previous Operation" & "Moving Method of Next
Operation"
6.
Production
procedure when the material requirement for the order is changed.
* Changing the
material/component needed for one order as given by the standard material
requirement based on
the BOM.
* The change should
affect the order only, not the BOM
This has to be done
through the session-
* "Maintain
Estimated Materials"- change the quantity in the field "Net Quantity"
for an
item in a particular position in the BOM.
* This session can
be invoked at any point in the procedure after an order is planned, if
the material has not
been issued.
7.
Production
procedure with unplanned partial delivery/completion of the order quantity
* Initially it was
planned that the full quantity would be completed at one go but after the
material has been
issued and manufacturing has started it is felt that due to backlog of
priority orders or due to overload of machines only
partial delivery would be possible for
the time being.
* Partial delivery
is done in the same way for subcontracting
The sequence would
be same but there would be change in quantity completed for each operation
in the session: -
* " Report Operations Completed "- Enter in the
field "Completed" the quantity and save but
do not set operation
"Completed" as "Yes"
* Do this for all
the operations in the routing
* "Report
Production Orders Completed"- in this session say
"Report Complete" but do not
set "Order Completed" as
"Yes" .Then-
* "Post to
Inventory"- say "Yes" to update the FG inventory.
Next time while
completing the rest of the quantity :-
* "Report
Operations Completed"- for each operation enter the full order quantity
not the
rest, in the field
quantity "Complete", and set operation "Completed" as
"yes"
* Finally
"Report Production Orders Completed" with "order completed"
as 'yes'.
* E.g. production
Order Quantity = 10
* Initial part
delivery = 5
* So while
completing the final 5 quantity enter "10" in the field quantity
"Completed" in the session "Report Operations Completed"
* But while
reporting the order complete it will show 5 only, in the field "Quantity
to Deliver"
* Even after
completion of part quantity the task or work center can be changed through the
session "Maintain Production Planning"
Business Scenarios
for Production(Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks
8.
Production
procedure with planned partial delivery
* Partial delivery
is planned at the planning stage or after releasing the order.
* Part material is
issued for the order.
* Partial delivery
for subcontracting will be done in the same way
* Set the flag
"Partial Delivery" as 'yes' in the session "
Maintain Production Orders"
* Complete the
quantity following the procedure same as unplanned partial delivery.
* Then the quantity
'Planned' becomes zero in sessions "Report Operations Completed" and
"Report Production Orders Completed".
* Next time when
completing the rest quantity enter only the quantity for final delivery in the
field "Completed" in "Report Operations Completed" session.
* Taking the same
example: So while completing the final 5 quantity enter "5" in the
field quantity "Completed" in the session "Report Operations
Completed".
* The fields
'Quantity Current Planning' in the session "Maintain Production
Orders" and 'Planned' in the session "Report Operations
Completed" will show only the quantity to be partially delivered.
* On completion of
the initial delivery the field 'Compl. Previous
Delivery ' in the session "Report Operations Completed" will show the
first delivery quantity.
9.
Production
procedure with planned subcontracting
* The operation is
planned at a subcontracting work center defined in the routing.
1. Maintain
Production Orders
2. Print Order
Documents & Release Order
3. Enter material
Issue for Production Orders
4. Issue Inventory
5. Report
Operations Completed
6. Generate
Subcontracting Orders
7. Report
Operations Completed
8. Enter Hours
Accounting
9. Report
Production Order Completed
10. Close
Production Orders
* The subcontracted
operation can be the first one in a production order or any following
operation. If it is the first one then the step 5 in the sequence is not
necessary.
* Before reporting
the operation completed for the particular subcontracted operation in step 7 an
entire range of steps have to be completed in Purchase Control as per the
purchase cycle.
Business Scenarios
for Production(Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks
10.
Production
procedure with unplanned subcontracting
* The routing do not have any subcontracted operation
* The need for
subcontracting arises only after the order goes into production, when some in
house work center gets overloaded or breaks down.
1. Maintain
Production Orders
2. Print Order
Documents & Release Order
3. Enter material
Issue for Production Orders
4. Issue Inventory
5. Report
Operations Completed
6. Subcontract
Operations
7. Generate
Subcontracting Orders
8. Report
Operations Completed
9. Enter Hours
Accounting
10. Report
Production Order Completed
11. Close
Production Orders
* Step 6 is used to
shift the planning of the operation to a subcontracting work center.
Business Scenarios
for Production(Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks
11.
Production
procedure with rejection & issue of extra material
* Material gets
rejected in process that can't be reworked, so more material has to be issued
and operations done again.
* The procedure
would be same as simple production procedure, only that some material would be
rejected in the step 6 and after completing the production of the rest of the
quantity, more material have to be issued. So step 4
to step 7 would be repeated again to manufacture the rejected quantity.
* Enter the
rejected quantity in the field 'Rejected' in the session "Report Operations
Completed". But set the flag operation 'Completed' as 'No'.
* Complete all
follow up operations for the accepted quantity & 'Report Complete' in the
session "Report Production Order Completed".
* In the session
"Enter material Issue for Production Orders", enter the quantity to
be issued again, in the field "Subsequent Delivery". In
"special" click on 'Transfer subsequent delivery to issue' and
finally 'Issue Stock'
* Repeat the cycle
till order is completed & closed
* While reporting
the operation completed for the subsequent material enter the full order
quantity in the field 'Completed' in session "Report Operations
Completed".
Business Scenarios
for Production (Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks
12.
Production
procedure with rework
* Finished goods
are rejected at the final inspection after all operations have been completed.
* The rejected
items can be reworked
1. Maintain
Production Orders
2. Print Order
Documents & Release Order
3. Enter Material
Issue for Production Orders
4. Issue Inventory
5. Enter Hours
Accounting
6. Report
Production Order Completed
7. Close Production
Orders
* In the session
"Maintain Production Orders" set the flag 'Rework Order' as 'yes'
* While issuing
material in step 3 the finished good would be issued.
* There would be no
operations planned even though a routing may be selected in step 1.
* The order would
not be shown in "Maintain Production Planning"
* The operations
that would be done have to be reported through "Enter Hours
Accounting"
13.
Production
procedure
when some operation is completed and a component
has to be replaced
* Change of
component in BOM and replacing it with another, while returning the original to
stores.
1. Maintain
Production Planning:
2. Report Operation
Completed:
3. Enter Material
issue for Production Orders: Issue Stock
4. Maintain
Estimated Materials
5. Enter Material
issue for Production Orders: Issue Stock
6. Report
Operations Completed:
* Enter a new
operation to disassemble the component if it has already been fitted to the
assembly and insert the operations again to be done on the new component.
* Disassemble the
old component
* Return the old
item by negative issue
* Insert the new component
required
* Issue the new
component
* Complete the rest
of the operations and proceed as per standard procedure
Business Scenarios
for Production (Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks
14.
Production
procedure
involving cancellation of order
* A production
order may be cancelled due to various reasons like cancellation or postponement
of a sales order (work order).
* There may arise basically three possibilities:
1. Cancellation at
the planning stage.
2. Cancellation
after releasing the production order to the shop floor.
3. Cancellation
after issuing material for an order but before any operation has been done.
1. Cancellation at
the planning stage:
* A production
order can be cancelled when its status is 'planned' or 'documents printed' in
the session "Maintain Production Orders" by choosing "Delete
Records" option.
2. Cancellation
after releasing the production order to the shop floor:
* This can be done
through the session "Cancel Production Orders"
3. Cancellation
after issuing material for an order but before any operation has been done:
* Same as 2
* A production
order in which any operation has been completed can not be cancelled
Business Scenarios
for Production (Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks
15.
Production
procedure
when all operation have been completed and the
finished item has to be disassembled and returned to stores.
* The work
order/customer order is on hold or the order is cancelled.
16.
Production
procedure when excess material has been issued
* Operation has
started and some material is found to be extra and has to be returned to the
stores.
* Enter Material
Issue for Production Orders:
Enter a negative
quantity for 'issue' and Issue Stock.
17.
Production
procedure when rework has to be done in between operations and the reworked
material has to again go back to initial operation sequence.
* E.g. first two
operations have been completed and a rework operation is needed at this stage
like 'welding'and the reworked material has to be
again processed according to the specified routing.
Business Scenarios
for Production (Shop Floor)
Sr
Scenarios
Implication
BaaN Procedure
Remarks
18.
Production
procedure
when a new component has to be added after the
assembly of the end item has been done.
* This addition is
not to affect the BOM
1. Maintain
Estimated Material:
Insert the new item
required and its quantity.
2. Enter Material
Issue for Production Orders: Issue Stock
Issue the material
3. Maintain
Production Planning:
Insert an operation
with the work center and related production data.
4. Follow the
standard procedure of reporting operation completed etc.
* A new operation
has to be attached because all the operations have been already completed.
This document finalised by: MCS - SS, SVR
Virgo- RSK, Raghu
This
Document Prepared for:
Stores Scenario
Date: 13th January 1999
These Stores
Scenarios are developed for Simulation I.
1. Material Receipt
1.1 Receipt of raw
material according to a purchase order, Full quantity / Part quantity
1.2 Free receipts
as samples
1.3 Reject material
from customer
1.4 Receipts from
sub-contractors
1.5 Receipts from
sub-contractors without any operation
1.6 Receipts from
sub-contractors with only some operations done on casting
1.7 Material
receipt of material taken on deposits (e.g. Gas cylinder.)
1.8 Material
receipt of finished and semi-finished components from shop floor
1.9 Material receipt
of excess material /
valve returned from assembly
2. Material Issue
to production
2.1. Material issue
of full quantity.
2.2. Material Issue
of part quantity.
2.3. Material Issue
to sub-contractors.
2.4. Issue of
consumables.
2.5. Issue of
material on returnable basis (e.g. Gauges, Tools, and Jigs.)
2.6. Material issue
to assembly
3. Material
accounting with conversion factors
1.1 Following
example should be taken
* Material bought
in Kg
* Issued in metres
* Stored in metres
* Received from
subcontractor in pcs
4. Material issued
to sub-contractor for assembly/operations.
1.1 Material issued
is as following
* Plate, Pipe and
Bar
* Received as
Finished Component (e.g. Jig)
5. Material despatch
1.1 Finished
products
1.2 Spares
1.3 Free Issue of
Finished Goods / SparesFree issue of Finished Goods
as samples
6. Display of
Inventory from Raw Material stage to Finished Goods Stage.
7. Ordering of
Tools / SIC items
1.1 Ordering of
tools
1.2 Ordering of min/max level items.
8. Inter-company
Material transfers
1.1 Issue of items
such as grease/oil from
one division to another
1.2 Material
accounting for items sent on returnable basis.
1.3 Administrative
material sent from one division to another.
9. Reports
9.1. Item group
wise ware house inventory enquiry and reports
9.2. Date wise,
supplier wise, item wise, item receipt report
???
1/1
Purchase Scenarios
Date: 11th January
1999
These Purchase
Scenarios are developed for Simulation I.
1. Plain Purchase
Cycle:
1.1. Raising
Enquiry
1.2. Receiving
offers
1.3. Comparing
Offers
1.4. Placing Order
on one of the suppliers
2. Purchase Cycle
from Purchase Contract:
2.1. Maintain
Contracts with Suppliers
2.2. Place Purchase
Orders based on the contract
3. Amendment of
existing Purchase Orders:
3.1. Amendment in
quantity ordered
3.2. Change in the
rate
3.3. Change in
Terms of Payment
3.4. Change in
Terms of Delivery
3.5. Change in Engineering revision (not to be covered in SIM I)
3.6. Adding
services like radiography, third party inspection charges etc.
3.7. Total order
being cancelled
4. Order Placement
for items under development:
4.1. For valves
under development, the weight of the castings is not known exactly. How is the
scenario handled when the weight of the casting is not known and the order is
placed on imperical basis.
The final weight of the casting is known latter and the payment is done
accordingly
5. Handling of Back
Orders (Pending Orders)
6. Placement of
Repeat Orders (How to copy Orders)
6.1. This will
primarily entail the procedure for copying the Purchase Orders from other POs.
7. Handling of Free
Issue Items given to Our Suppliers
8. Handling of
Annual Contracts:
8.1. This will
consist of handling of Annual Maintenance Contracts like those of Computers,
Garden Maintenance, Genset maintenance, etc.
9. Purchase of
Assets:
9.1. The purchase
of assets will be demonstrated.
9.2. Whenever some
material is used in manufacturing of an asset (like Jigs and Fixtures) which is
also used for the manufacturing of end products, the procedure for the same
apportioning the raw material will be demonstrated.
10. Purchase of
Tools and Inserts (Stores Items on mini - max level):
10.1. Low value
Items like tools, inserts, cotton waste bought on Statistical Inventory Control
(SIC) will be created and POs for the same will be generated.
???
1/1
Sr.
BaaN Procedure
Implication
Remarks
Scenario I : Planning through MPS ( For standard end items which are
defined as 'MPS' items and do not require tracking)
1.
Maintain Plan Code
* Define the actual
and simulation plan codes
* The plan data
like plan level, rolling frequency etc are define for a plan code
* Plan level set as
1
* One of the plan
codes so defined will be set as 'actual plan code' in "Maintain MPS
Parameters"
2.
Maintain Plan
Periods
* Define the
periods into which the planning horizon will be divided
3.
Maintain Plan Items
* Define the MPS
item as a plan item for a particular plan code
* The plan item
data like forecast method, time fence etc are defined here.
4.
a) Generate Bill of
Critical Capacities
b) Generate Bill of
Critical Materials
* This will create
bill of critical capacities/materials based on the setting of the fields
'Critical in MPS' in the item and work center data
* The components of
the MPS item which are defined as 'Critical in MPS' in "Maintain
Item Data" will automatically be updated in the bill of critical materials
* Similarly the
work centers which are utilised in the routing of
that item and are set as 'Critical in MPS' in "
Sr.
BaaN Procedure
Implication
Remarks
Scenario I : Planning through MPS ( For standard end items which are
defined as 'MPS' items and do not require tracking)
5.
Maintain Master
Production Schedule:
Generate MPS
* Generate the MPS
for actual plan code and the simulation codes
* The MPS for the
simulation codes will show no customer order/forecast and will only show the
time buckets created
* Setting of the
MPS control field for this run would be: "Aggregate MPS Data" as
'Yes'
* This will create
the time buckets and will aggregate the demand for that item wherever from it
would be coming
* After this the
demand forecast if any and the actual customer orders entered by sales would be
updated in the MPS
6.
Maintain Master
Production Schedule:
Copy MPS
* Copy the actual
MPS to the simulation codes defined before for what-if analysis
7.
Maintain Master
Production Schedule:
Generate MPS
* This MPS run will
create planned MPS production orders required to meet the demand
* The rough
capacity & material planning will be done
* The setting of
the MPS control fields for this run will be as follows:
* Generate
Production Plan - Yes
* Generate MPS
within time fence - Yes
* Aggregate MPS
Data - Yes
* Generate Rough
Material Requirement -
Yes
* Generate Rough
Capacity Requirement - Yes
Sr.
BaaN Procedure
Implication
Remarks
Scenario I : Planning through MPS ( For standard end items which are
defined as 'MPS' items and do not require tracking)
8.
Display Rough
Capacity Requirements
Display Rough
Material Requirements
Display Graph of
Rough Capacity Utilisation
* Review the rough
capacity and material requirements to fulfill the simulated plans.
* Review the
capacity utilisation in critical work centers
9.
Print Master Production Schedule Comparison
* Compare the
simulated plans on the basis of the RCCP done before
* If the plans are
not feasible, then either change the routing of the item so that the extra
capacity can be hired from subcontractors or if material required is not
available then negotiate with short lead time suppliers and run MPS again ( go
back to step 7)
Or
* If any of the plan is found to be feasible then incorporate that plan in
the actual plan code
Or
* If the MPS is
still not feasible enough to meet the delivery date as per the customer order
then renegotiations for new dates can be explored with the customer.
Sr.
BaaN Procedure
Implication
Remarks
Scenario I : Planning through MPS ( For standard end items which are
defined as 'MPS' items and do not require tracking)
10.
Maintain Master
Production Schedule:
Generate MPS
* Run MPS for the finalised plan under the actual plan code
* This will create
actual planned MPS production and purchase orders
* The setting of
the MPS control fields will be as follows:
* Generate
Production Plan - Yes
* Generate MPS
within Time Fence - Yes
* Aggregate MPS
Data - Yes
* Generate Rough
Material Requirement - Yes
* Generate Rough
Capacity Requirement - Yes
* Generate Planned
MPS Orders - Yes
11.
Generate Planned
MRP Orders
* This will create
planned MRP production and purchase orders for all the components of the MPS item
which are defined as MRP
* This step is not
necessary if the MRP is run along with MPS in step 10 by setting the control
field 'Run Net Change MRP'
as 'Yes'
12.
a) Confirm Planned
MPS Production orders
b) Confirm Planned
MPS Purchase orders
c) Transfer Planned
MPS Production orders
d) Transfer Planned
MPS Purchase orders
* This will send
these indents to the shop floor and purchase
* Any changes with
respect to the supplier, quantity, dates can be done to these indents before
confirming through the session
"Maintain
Planned MPS Production/Purchase Orders "
NOTE: Only simple
planning scenario is considered here for MPS. The reason any other scenario
like sales order amendment etc. is not deemed fit to be shown is -
* As planning
through MPS is done only for standardised items for
which the standard cost, lead time, supplier is known well in advance so at the
time of promising delivery date to the customer, the date so agreed should be
acceptable and achievable to everyone from production to purchase.
* As the items,
which are planned in MPS, are sold according to standard design and price list
there should be no reason for amendment as far as design and price are
concerned.
* If any change in
delivery dates is done in the sales order however, the MPS will automatically
take that into account as long as the orders are in planned.
* If an order is
put on hold or cancelled when the production is already in progress or purchase
has been made, then the orders can be finished anyway because the standard
items can be stocked.
This document is prepared for:
PLANNING
SCENARIO FOR MPS
Production
Business Scenarios
1
BUSINESS SCENARIOS IN FINANCE
Financial Budgeting
System
Activity
BAAN Procedure
Remarks
1. Setting up of,
Master Budgets, Expense, Income Budgets for the year and for the different
periods.
Maintain Budget
Master Data
To link the Revenue
Budgets, Expenses Budgets, etc
2. Distribution of
the Budget Data
to the different fiscal periods, either actual
amounts or percentage break ups.
Maintain
Distribution Master Data & Distribution Percentages.
The percentages are
inputted in this session.
3. Allocation of
Amounts to the periods based on percentages defined above.
Maintain Budget
Amounts & Quantities.
To attach the
budget amounts ledger wise to each budget to enable comparision
through ledger history.
4.Viewing the comparison reports
Actuals vs Budgeted.
Print Comparison
Reports
Financial
Integration based on other scenarios
Business Scenario
for Production ( Shop Floor )
1. Simple
Production Procedure
Baan Procedure
Financial
Integration Entries
Maintain Production
Orders
NA
Print Order
Documents
NA
Release Production
Orders
NA
Enter Material
Issue for Prod'n Orders
NA
Issue Inventory
Work in
To Raw Materials
(
Std Price * Actual
Quantity )
Process Hours
Accounting
Work in
To Operations Cost
(
Man-Machine rate *
Actual hrs in HRA )
Report Production
orders completed
Finished
To Work in Process
(
At Standard Price in
Item Master )
Close Production
Orders
Work in
To Production Va
2. Production Order
procedure with changes at the Planned Stage
The Financial
entries will be the same as above and the figures for the Standards will be
picked from the Changed Routing Hours.
3. Production order
procedure with changes after releasing the order to the shop floor.
The Financial
entries will be the same as in 1. Above except that the valuation will be done
for the revised quantity.
4. Production
procedure with changes in routing after some operations have
been carried out.
The Financial
entries will be the same as in 1above except that the valuation for the
standard operation cost will change from one operation defined in one route to
the routing adopted subsequently.
5. Production
procedure with rescheduling of remaining operations.
Same
as 4 above.
6. Production
Procedure when material requirement for the order is changed.
The entries remain
the same as No 1. On the Completion of the production order, in addition to the
entry Fin Goods A/c Dr for the items in
BOM, the same entry is passed for the new material or the changed Material
requirement.
7. Production
procedure with unplanned partial delivery/completion of the order quantity.
The
entry for the transfer of Goods from the WIP stage to the Finished Goods i.e.
Finished
To Work in Process A/c
Will
be passed for the quantity completed. However the entry for variance on this quantity will be passed
only after the order has been closed.
8. Production
Procedure with Planned Sub-contracting
On the receipt of
the sub-contracting order, the entry that is passed is
Work in
To Invoices receivable.
(
At the pur order price )
The other entries
remain the same 1.
9. Production
Procedure with unplanned Sub Contracting
Steps remain the same as 7
10. Production
procedure with rejection & issue of extra material.
The entries will
remain the same as No 1, except that the entry for transfer to Finished Goods ( Report Order Complete ) will be for the quantity accepted
and the actual operations cost on the rejected material and the cost of
material itself will be accounted as adverse production variance for this
production order.
11. Further if any material rejected in a Production order is now reworked, the
entries remain the same as no 1, however the actual operation cost incurred at
this stage is accounted as varaince for this
production order
12. Production
procedure involving cancellation of orders
1. Cancellation at
Planning Stage - NA
2. Cancellation
after Release _ NA
3. Cancellation
after material issue
Reverse entry is
passed for Issue of Material.
Finance
Business Scenario
for Project Control Integration ( Simple Cycle )
(
Including Simple cycle
of payments to suppliers & receipts from Customers )
1. Simple Cycle
Baan Procedure
Financial
Integration Entries
Maintain Sales
Order for Projects
NA
Generate PRP Orders
NA
Confrim & Transfer PRP Orders
NA
Maintain PRP
Purchase Orders
NA
Maintain Receipts
WIP -
To Invoices Receivable - 517
(
At Actual
Release Production
Orders
NA
Process Hours
Accounting
WIP -
To Absorbed Operations Cost
(
Man-Machine rate *
Actual hrs in HRA )
Process Delivered
Sales Orders
1. Accounts
To Interim Sales A/c
2. Interim
To Final
Calculate Cost for
Projects
(
At this stage check the
open entries )
Project Cost Price
A/c Dr
To WIP - Projects
(
Actual Cost Price as
above )
Finance
Maintain Bank
Transactions
Bank A/c Dr
To Accounts Receivable A/c
Finance
Maintain Registered
Invoices
Registered
To Accounts Payable
Match / Approve
Purchase Invoices
(
At this stage , check
the open entries )
Invoices Receivable
- 517 Dr
To Registered Invoices A/c
Maintain Bank
Transactions
Accounts
To Bank A/c
Financial
Integration with the Purchase Module
BAAN Procedure
Financial Entry
Remarks
1. Maintain
Purchase Orders
Goods to be
To Purchase Obligations
This entry is
optional depending on the requirement of the same.
2. Maintain Receipts
The entry passed by
the system in 1. Is reversed automatically & the following entry is passed :
To Purchase Price Variance A/c
To Invoices Receivable A/c
The receipts entered in
this session is used as the base for matching the purchase invoice with the
receipts maintained here.
3. Process Delivered
Purchase Orders
NA
No entry is passed
at this stage.
BAAN Finance
BAAN Procedure
Financial Entry
Remarks
1. Maintain Purchase Invoices
Registered
To Accounts Payable A/c
Liability is
created at this stage.
2. Match Receipts
NA
Matching
of receipts with Purchase invoices.
3. Approve Purchase Invoices
Invoices to be
received
To Registered Invoices A/c
Approval is not
possible if the
price difference exceeds the tolerable
price difference.
Finalize this
batch.
CASH MANAGEMENT
BAAN Procedure
Entry Passed
Remarks
1. Maintain Bank
Transactions
This step is
optional and can be by passed depending the
operational feasibility. However cheque printing is
not possible if this step is by passed.
3. Maintain Bank
Balance
Accounts
To Bank
(
On Payment for the
Purchases )
The system passes
this entry automatically once the payment is effected in this session.
Finalize this Batch
BAAN Procedure
Entry Passed
Remarks
1. Maintain
Anticipated Payments
Anticipated
To Ant Reduction in Bank A/c
( When the cheque is issued to the supplier )
This step is
optional and can be by passed depending the
operational feasibility. However cheque printing is
not possible if this step is by passed.
3. Maintain Bank
Transactions
1. Ant Reduction in
To Anticipated Payments A/c
(
This entry is passed
automatically )
To Bank A/c
(This entry is also
passed automatically once we enter that the cheque
issued has been claimed.)
The system passes
this entry automatically once the payment is effected in this session.
Alternatively
One can directly
pass the entry no 2.
Accounts Payable
A/c
To Bank A/c
Cheque printing is not possible if this route is
used.
The Anticipated
mode of Receipts is followed in countries in which daily Bank Reconciliation's
are done.
Purchase Returns
BAAN Procedure
Financial Entry
Remarks
2. Maintain
Purchase Orders
(
Using the order type
Return )
NA
This entry is
optional depending on the requirement of the same.
2. Maintain Receipts
Invoices
Purchase Price
Variance A/c
To Raw Material Stock A/c
The entries passed
at the time of receipts, is reversed to the extent of the materials returned.
4. Process Delivered
Purchase Orders
NA
No entry is passed
at this stage.
Finalize the
Integrated Batch
Purchase Debit
Notes
BAAN Procedure
Financial Entry
Remarks
1. Matintain Purchase Invoices Transactions
(
Debit Notes )
Accounts
To Ledger A/c
This entry is
optional depending on the requirement of the same.
Finalize this batch
Linking Purchase
Debit Notes to Purchase Invoices
BAAN Procedure
Financial Entry
Remarks
1. Assign credit
Notes to Invoices
(
tfacp2120s000 )
Using the transaction type purchase
corrections
NA
This entry is
optional depending on the requirement of the same.
2. Assign Invoices
to Credit Notes
(
tfacp2121s000 )
Accounts
(
Amount of Invoice )
To Accounts Payable A/c
( Amount of
Debit Notes )
Finalize this batch
Before this, attach
the automatic payment method to the invoice
Payments made
through Supplier Payments, i.e. Automatic Payment Method.
BAAN Procedure
Financial Entry
Remarks
1. Select Invoices for Payment
NA
Invoices are
selected for payment based on the supplier, currency ,
due
Date.
2.
Accounts
(
Amount of Invoice )
To Accounts Payable A/c
( Amount of
Debit Notes )
Finalize this batch
Integration of
Sales Module with BAAN Finance
BAAN Procedure in
Sales Control
Financial
Integration Entry
Remarks
1. Maintain Sales
Order
(
Of the type Return Order
)
N A
This entry is
optional depending on the requirements. This entry gets reversed automatically when
the goods are delivered.
2. Maintain
Deliveries
Finished
To Invoices to be recd A/c
This entry is
passed at the Std
Price
of the Finished Product.
3. Processed Delivered Sales Orders
This step triggers
the following entries :
To Interim Sales A/c
2. Material Cost of
Goods Sold Dr
Operations
To Goods to be Invoiced A/c
3. Interim
To Final Sales A/c
This entry is
passed for the Actual Sales Amount.
This entry is
passed at the Std price of the Finished Good.
This entry is at
the same amount as 1.
Step nos 1-22 will have no effect in
Finance and the steps after that will have the same effect as above.
* Scenario III -
Sales Order for an existing Customized Item
Same as Scenario II
After the above
step are over in the distribution module the receipts for the sales effected
above are recorded as follows :
BAAN Procedure
Entry Passed
1. Maintain
Anticipated Receipts
Checks in Hand A/c Dr
To Anticipated Receipts
(
When we receive the
check from the customer )
2. Maintain
Anticipated Receipt Status
Checks in
To Checks in Hand
(
When the check is
deposited for clearing )
3. Maintain Bank
Transactions
1. Anticipated
To Checks in Bank
(
This entry is passed
automatically )
To Accounts Receivable
(
This entry is passed
when the check is cleared )
Alternatively
One can directly
pass the entry no 2. Of 3. Ie
Bank A/c Dr
To Accounts Receivable A/c
(Once the check is deposited in the Bank )
The Anticipated
mode of Receipts is followed in countries in which daily Bank Reconciliation's
are done.
Procedure for Sales
Return
BAAN Procedure in
Sales Control
Financial
Integration Entry
Remarks
1. Maintain Sales
Order
Sales
To Goods to be Delivered A/c
(
This is an option
provided by BAAN to recognise the obligations arising
out of a Sales Order )
This entry is
optional depending on the requirements. This entry gets reversed automatically when
the goods are delivered.
3. Maintain
Deliveries
Goods to be
To Finished Goods A/c
This entry is
passed at the Std
Price
of the Finished Product.
3. Processed Delivered Sales Orders
This step triggers
the following entries :
To Interim Sales A/c
3. Material Cost of
Goods Sold Dr
Operations
To Goods to be Invoiced A/c
4. Interim
To Final Sales A/c
This entry is
passed for the Actual Sales Amount.
This entry is
passed at the Std price of the Finished Good.
This entry is at
the same amount as 1.
FAS
follows a bottom up
approach to search for the depreciation rate.
Ie if it finds a rate for a specafic fixed asset, it picks that rate else it will pick
the rate given in the dep for the group of assets and
in the absense of that, it
picks the rate speciafied in the Dep
master data.
Transactions
BAAN Procedure
Remarks
1. Purchase of
Fixed Assets
Maintain
Investments
Purchases may be
made through Purchase Orders in the Distribution Module or through Purchase
Invoice Transaction Type
2. Depreciation
calculation on the Fixed Assets
Process Periodical
Depreciation Calculation
Based on SLM at the
rates in Companies
Act.
Passing
entries in Financial Accounting System for Depreciation.
Post Fixed Asset
transactions
This passes the
entries automatically in the General Ledger.
3. Selling the
Fixed Assets at profit/losses.
Maintain Disposals
This session
calculates the profit / losses on the sale of the fixed Assets ie the difference in the book value and Selling price.
At every stage
Finalization of the transaction has to be done.
The Financial
entries for the above transactions in the same sequence, as above
) are as follows :
These have to be
attached in the transaction schedules of fas.
To Supplier / Bank A/c
(
on the purchcase of the Assets )
2. Interim
Depreciation A/c Dr
To Provision for Depreciation A/c
To Interim Depreciation A/c
(
On the Processing of the
Periodical Depreciation Calculation
& Posting of the results to the General Ledger )
3. Customer /
To Profit on
To Asset A/c ( At
Book Value )
(
On the sale of the
assets in the session ' Maintain Disposals ' )
