Best_Practices_FICA_Apollo_Use_Case_Tyres_LTD

Best Practice FICA

1. 03/03/25

Best Practices
Project “Superp”
Apollo Tyres Limited

2. 03/03/25
Financial Accounting
Best business practices in SAP FI module may be
discussed under the following broad heads
• Financial Accounting in general
• General Ledger accounting
• Accounts payable
• Accounts receivable
• Asset Accounting

3. 03/03/25
Financial Accounting
Financial Accounting in general
Maintaining common Chart of Accounts.
Numeric Logic for Codification
Minimum process Cycle
Uniform Logic for codification of various elements within
various modules
Rationalization of Document Types
Control on master records so that any creation change is
made Centrally .

4. 03/03/25
Financial accounting
General ledger accounting
•Common chart of accounts
•Minimal number of accounts to meet information
needs
•Regulated control of new account creation
•Periodic check of inactive accounts
•Integrated systems eliminates duplication of
maintenance
•Comprehensive security and access controls
•Efficient copy and editing facilities

5. 03/03/25
Financial accounting
General ledger accounting
•Emphasize the first-time quality of journal entries by
ensuring that all required data is available for an entry
to be made correctly
•Perform hard copy review of manual journal entries
after entry, but prior to month-end.
•Replace management/supervisor reviews with
statistically backed audits and tolerance levels to detect
irregularities.
•Rigorous period end and year end routines to ensure
accuracy of data.
•Detailed procedures applied to reconciliation, accruals
and prepayments.
•Cyclical reconciliation of balance sheet accounts

6. 03/03/25
Financial Accounting
General ledger accounting
•Soft close for non quarter months
•Automatic period end reports produced
•On line reporting of information and drill down
•Focus on analysis vs. transaction processing
•Liaison teams linking business and accounting
•Regular monitoring of all clearing Accounts and
ensuring Zero balance to the extent possible.

7. 03/03/25
Financial Accounting
General Ledger accounting
•Period-end timetable communicated to all relevant staff.
•Regular liaison with auditors to minimise ad hoc audit trail
and reporting requirements for statutory reports.
•Automatic balance carry forward
•Usage of Drill down facilities which provides full audit
trail on financial data.
•Additional periods used solely for year end accounts.
•System is sole source of consolidated statutory reporting
requirements.
•Eliminate/Minimize any manual adjustments.
•Adhere to well-defined close cycle time throughout the
company.

8. 03/03/25
Financial Accounting
General ledger accounting
•Automate inter-company reconciliation process as far
as possible.
•Perform all GAAP adjustments and currency
conversions at the field locations where the
transactions originate.
•After every closing, conduct a “postmortem” whereby
the explanation of lateness or errors are identified in
order to track down and correct problems.
•Eliminate inspection points in the close process.

9. 03/03/25
Financial Accounting
General ledger accounting
•Set aggressive materiality limits for inter-company
transactions in order to speed the closing process.
•Reduce the number of adjusting entries made after the
initial trial balance.
•Distribute reports electronically; allowing on-line query.

10. 03/03/25
Financial Accounting
Accounts payable
Single Supplier Database
Default, payment terms held on supplier file with
manual override at P.O. and invoice entry.
Integrated purchasing and AP system with a common
database
Payment terms defined and agreed with supplier.
Process in place for monitoring the status of invoices
and payment schedules.
Shift from transaction review and processing toward
value-added analysis and decision support activities.
Authority levels clearly defined for authorizing
invoices/credit notes and payments.

11. 03/03/25
Financial Accounting
Accounts payable
GR Based invoice verification.
No on Account Payment or receipts.
Accounts Payable procedures and guidelines
documented.

12. 03/03/25
Financial accounting
Accounts receivable.
•Single customer database.
•Standing data set up on the system reflecting
authorization, credit terms etc
•Customer account managers responsible for sales and
cash collection
•Determine and report on credit targets
•Authority levels clearly defined for credit decisions
•Constant monitoring of debtor days, daily collection, aging
of debt.
•Automatic matching of payments to invoices. No on
Account receipts.
•Procedures in place for reviewing debtors and following up
on outstanding payments.

13. 03/03/25
Financial accounting

Accounts receivable.
•Monitor overdue debts and take action within agreed
policy
•Forecast cash receipts available for treasury purposes.
•Staff trained in AR process and have clear roles and
responsibilities.

14. 03/03/25
Financial accounting
Asset accounting
Link asset additions to original asset.
Unique asset number across company.
Develop an on-line fixed asset sub ledger.
One day elapse time to close capital project and create
a fixed asset.
One to one mapping bettwen asset class and general
Ledger Accounts