Balance Sheet & Profit and Loss Statement

Balance sheet is the MOST important statements for any Company or we can say the Face of the Organizations, Normally this report should be the first thing we expect to get from any of the ERP software automatically,

Normally in all the SAP running organizations this key statements i.e. Balance Sheet and Profit and loss statements are getting prepared in excel only

Balance sheet and Profit N Loss statements once generated from the SAP system then it is available on real time and can be accessed directly from SAP without any manual interventions.

This will add lot of value and brand value of the organizations once the Financial statements is generated from SAP without manual inputs.

Basic FI Module and Basic CO Module

On an average the accounts team spend almost 7 to 10 days in finalizing the P&L and Balance sheet after the month end closing, this 7 to 10 days should be invested in analysing the result rather than just closing the books and prepareing the financials manually after the month end.

The Balance sheet + PNL should be made available on 2nd day of the month with all the figures and there should be no change in that, then only we can say that the organization is working on real time basis and it will grow further..

It is possible only thrugh the automation of the Financial statements

Approach:
1. As per the manual excel sheets we will group the GL accounts in the same way in SAP in a very user friendly way without any technical complexity
2. Once all GLs are grouped as per the required B/S and PNL reports the same would be available for reporting.
3. Standard reporting tool would be used for the preparation of the Balance sheet and Profit and Loss main page and all the schedules without any use of the ABAP module or coding in the system.
4. Separate set of GL to be created only for passing the MEMO entries or provisional entries, which are mainly required for Balance sheet purpose and would be reversed or not depending on the nature of the adjustments.

Assumptions:
1. No manual adjustment outside the books of accounts, if any adjustment entreis required that that would be entered in the books in the separate set of GL and recorded
2. Exact formatting and layout may not be availabe with SAP generated Financial statements, however the financials would be very close to the required as per the statutory formats. However some adjustment in formats may be required after the generation of the reports.

Accountants are very comfortable in preparing the Financial statements in Excel, as they can accomodate any type of adjustments in the Excel files and the F&A team pose lot of challenges to the SAP team in accepting the solutions.

Lot of adjustments normally entered in the Excel files while preparing the Balance sheet and PNL but not entered in the book with an assumptions that same will be reversed on the next day so why to complicate the books of accounts, But due to that the Balance in the Books and Balance in the Excel Financial statement doesn’tmatch

It creates the unwanted dependancy on the accounts and finance team for the preparation of the Financial statements

Financial statements i.e. Balance Sheet + Profit and Loss Statements with all the Schedules + Trial Balance + Back up reports to go upto the GL level details.
SOP for the preparation of the financial statements and maintenance of the New GL Accounts in the Account groups
Project documents (Configuration and Solution documents with detail of the settings)

We have the set templates and steps for the delivery of the Financial statements, we just need to follow the written processes and the result will be delivered for the customers.
Depending on the specific points for the respective clients we can accomodate the solutions to suit the exact requirements.

2 weeks for understanding the current process, account grouping and format discussion
1 week for preparing the solution documents based on the understanding and sign off
3 weeks for Realization and Testing the solutions in the DEV and Quality system of SAP
2 week for moving the TR To Production system and generate financial statement report in Production system

The reputation of company can be the most important factors and if we prepare the Financial statements of the Company through the System and Automatically then it will add lot of trust and faith in the eye of the Investors, Auditors and Statutory agencies along with the Internal stakeholders such as the Management team, Employees and all.

The reported profit and loss if matching with the financial books then there is a comfort with the management and accounts team as well, Just to match the numbers the entire Accounts team work for more than 4 to 6 weeks dedicatedly on this job only. if the same has been automated in SAP it will save lot of efforts and money as well.

6 weeks of development time and 2 weeks of support for generating the same in the production system for one month or YTD

M1 – Project start
M2 – Solution Document sign off
M3- UAT Sign off
M4- First month end closing

INR 5,00,000/-

In just 5 lacs we can jump in the business ladder more than 6 times to gain the brand value and trust.