UNN Health Check-up - FI Audit Report Complete.pptx

Audit Report

1. Unified National Networks SAP Health Checkup Report Finance, Controlling & Treasury March 2024

2. Agenda The main purpose of this SAP System health check-up is to evaluate the system for:   Effective Configuration and Customization of the System Optimal usage of the SAP system System / Business process Gaps Data Integrity and Governance – Both Financial and Other processes Correctness of SAP configuration by SAP  and provide a recommendation on the possible remediation. It will be up to business to decide and do a Business Impact Analysis on the recommendations and the decision to implement them lies totally on the Business. Disclaimer : The SAP Health Check has been done based on access given to UNN SAP C lient 400 & Client 660. In case Client 400 & 660 differs from UNN Production C lient , then the team is not responsible for any anomaly. We have also attempted to provide our recommendations based on the best practices followed by the industry

3. SAP Health Check Up Executive Summary

4. SAP Business Function Model Business Policies and procedure SAP training SAP System Usage Knowledge Management Integration of modules/apps System Control SAP Master data Sanity SAP Business Process Mapping SAP Scalability SAP Application and Business Process People Governance Alignment Execution Stakeholder satisfaction Efficient business delivery through SAP Effective delivery High quality Scope & expectations People and Business model Defines Facilitates Provides Major components of an effective SAP function Integration Status Business Process Area in SAP is not integrated with other business Process in SAP. System Control Status Configuration is implemented in SAP but lacks internal control mechanism. SAP Scalability Status Configuration available in SAP but full functionality not configured. SAP Usage Status Configuration available in SAP but business users not using functionality. SAP Process Mapping Status Configuration in SAP not available . Masterdata Status Master data Issue

5. Finance, Controlling & Treasury- Sub Module Level Assessment Needs significant improvement Needs improvement Basic Established Leading Bank, Cash & Treasury General Ledger Accounting Accounts Payables Accounts Receivable SAP Fnance Module Inconsistent critical process application, with respect to business requirement Critical Process in place with opportunities to improve, significant deficiencies in Integration from other dependent module Critical Process in place within module with opportunities to improve, on the usage Process in place with opportunities to improve process control and reporting capabilities Leading practice processes when benchmarked against sector peers, few if any control gaps noted Asset Accounting

6. Finance, Controlling & Treasury Process Area- Dashboard   Areas In Compliance Risks & Areas of Improvement Total Sub Module Areas Business Process configured in SAP System Control Issues SAP Scalability Issues SAP Usage Issues SAP Process Mapping Issues Master data Issues General Ledger 26 1 17 2 46 Asset Accounting 36 4 5 4 5 Accounts Receivables 40 2 15 57 Accounts Payables 25 3 17 45 Banking, Cash Management, Treasury 5 3 4 12 Out of 205 check points, 132 processes (64 % is configured ), Remaining 73 (36%) areas are not configured have issues namely system control, scalability, usage , process mapping and master data.

7. Check Point Areas as per Leading SAP Best Practices

8. Check Point Areas as per Leading SAP Best Practices

9. Summarised Report with Areas of Improvement

10. Areas of Improvement Summary Process Description SAP category Company Code not set to Productive (FI_GL_01) Master Data and Transactional data may be lost unintentionally. This will also prevent deletion of program from resetting data in a Company Code by mistake. Company Code should be set to Productive to prevent Transaction and Master data loss Configuration Business Area Configuration (FI_GL_02) Business Area configuration is not being used in UNN. With several Divisions, UNN can opt for Business Area and creation of Financial Books of Accounts: Business Area wise will be beneficial when UNN moves into shared services. Configuration Segment Reporting (FI_GL_03) Segment Reporting is an Integral part of Reporting if IFRS is in effect . Such Segment Reporting which is an integral part of IFRS provides financial Results as per the most important operating units of the Company Configuration GR/IR Account Clearing (FI_GL_04) Currently in UNN, GR/IR Clearing is done based on the criteria Assignment , it should also include other criteria (based on business requirement) also. Configuration GR/IR Regrouping (FI_GL_05) GR/IR regrouping functionality not in use in UNN. It helps in accurate reporting in period end by segregating asset and liabilty. Configuration Document Park and Post (FI_GL_06) Currently document park and post functionality done by same user, no workflow involved/configured. It is basically an useless exercise. Introduction of Work Flow will make it a meaningful process. Configuration Tolerance Group for Employees (FI_GL_07) Tolearance limit is not being used in UNN to restrict posting of documents at individual level. Everyone is able to post all documents irrespective of amount. Configuration

11. Areas of Improvement Summary Process Description SAP Category Accrual/Deferral Posting (FI_GL_08) For Accrual/Deferral Posting, UNN is using manual JV through F-02. This is not automatic and hence prone to error. SAP Accrual Engine is the best alternative which will automate the process. Configuration GL Account Assessment (FI_GL_09) Settings for GL Account plan assessment is not maintained. It is an unique functionality without CO to distribute costs from GL Account to Receiver like assets etc. Configuration GL Account Distribution (FI_GL_10) GL Account distribution functionality is not in use in UNN. It is an unique functionality without CO to distribute costs from GL Account to Receiver like assets etc. Configuration Exchange Rate Deviation (FI_GL_11) Maximum Exchange Rate Deviation is not configured. While posting FC document, system should know how much deviation it should allow. Restriction should be put in place to allow system post deviation upto a certain level. Configuration Tolerance Group for GL Accounts (FI_GL_12) Configuration of GL Accounts tolerance limit is contradictory. One defining tolerance limit and the other one allowing without tolerance. Configuration Clearing Differences (FI_GL_13) Assigning Accounts for Clearing Differences is not configured in the system. For G/L account clearing, tolerance groups define the limits within which differences are accepted. In this activity we define the accounts to which these differences should be posted. Configuration Foreign Currency Valuation Methods (FI_GL_14) FC Valuation Methods specific to UNN missing in the System. Configuration

12. Areas of Improvement Summary Process Description SAP category FOREX Valuation (FI_GL_15) Currently FOREX valuation is not performed in UNN. Checked and found Forex valuation related configuration is there in the system. Maybe few more GL Accounts need to be included. End users training requirement need to be checked. Configuration Simulation Ledger (FI_GL_16) Simulation Ledger - a new functionality not yet introduced in UNN. Simulation Ledger that will help analyse the future values by simulating the Forex valuation. Configuration Predictive Ledger (FI_GL_17) Predictive Ledger also a new functionality yet to be introduced. Predictive Ledger is a functionality enabling bottom-up prediction of future financial results. For that SD module needs to be introduced. Configuration FIORI Lauchpad (FI_GL_18) UNN is currently in S4 Hana 2020 version. Still they are not using FIORI- A on the fly solution. Once fully implemented and user training provided it will mitigate many challenges for end users. Configuration SAP Workflow (FI_WF_19) SAP Work Flow is an Unique functionality that once implemented will reduce time and labour to get various approvals and checks online. Configurationn

13. Areas of Improvement Summary Process Description SAP category Vendor Account Group (FI_AP_01) Vendor Accounts Group is not as per Design document. Chances are there vendor gets created in unwanted Group. No direct impact. Master Data Vendor Document Type (FI_AP_02) Vendor document type is not in conformity with Design Document. Master data Vendor Payment Method (FI_AP_03) Vendor payment method is not as per design. It may create problem in document posting and clearing. Master data Special GL Indicators (FI_AP_04) There is a need to revisit the Special GL Indicators configuration. If Spl GL Indicators are not as same as required, chances are there that documents get posted in wrong GL Accounts. Master data Vendor Payment Program (FI_AP_05) Need to check what Spl GL Ind. need to be considered in APP run. Document posting and clearing will be an issue. Configuration Vendor Document Tolerance (FI_AP_06) Tolearance limit is not being used in UNN to restrict posting of documents at individual level. If Tolerance limit not defined properly, any amount difference may get posted. Configuration Park and Post Vendor Invoices (FI_AP_07) Currently document park and post functionality done by same user. No workflow involved/configured. There is no logic in parking and posting by same user. Workflow should be considered here. Configuration

14. Areas of Improvement Summary Process Description SAP category Cash Journal (FI_AP_08) It is observed that Petty Cash limit is not configured. It will help restrict the amount to a certain level. And also help in replenishing cash journal in time. Configuration Vendor Outgoing Payment - Pre printed Cheque (FI_AP_09) Currently UNN is making vendor payments through manual cheque only, no cheque is printed through SAP. Cheque printing through SAP will reduce manual intervention and automate the process. Configuration Vendor Outgoing Payment- Bank Transfer (FI_AP_10) There is no direct interface between Bank and SAP. Manual intervention is required to transfer money to Vendor. Configuration Vendor Ougoing Payment- Telegraphic Transfer (FI_AP_11) Telegraphic money transfer is not completely mapped. Advantage of automatic money transfer is not there. Configuration Vendor Outgoing Payment - Letter of Credit (FI_AP_12) Issuance of LoC not done through SAP and It is also not configured in SAP. Manual intervention is need to issue a LoC. Configuration Payment by Credit Card with Vendor Invoice (FI_AP_13) Vendor payment by credit card is not mapped in UNN.It is done through GL Account Management. Advantage of automatic payment transfer is missing. Configuration

15. Areas of Improvement Summary Process Description SAP category Payment with Printout (FI_AP_14) Manual intervention reqd to get the same approved. No workflow is there. WF will save time and reduce manual intervention. Configuration Print Payment Advice (FI_AP_15) Currently no payment advice generated from SAP as it is not properly configured. Payment advice is an integral part of vendor payment. It helps in bringing clarity. Configuration Print Payment Voucher (FI_AP_16) Currently no payment voucher generated from SAP. Payment voucher is also an integral part of vendor payment. It helps in bringing clarity. Configuration Send Payment Advice via Email (FI_AP_17) There is a functionality in SAP to trigger payment advice to Vendor through Email/message which is not working in UNN. Intimation to vendor through email(an automated process) is missing. Configuration Vendor Net Off with Customer ( FI_AP_18) It is being used through F-44 - A manual Process. Process can be automated with appropriate master data set up. Configuration

16. Process Description SAP category Customer Accounts Group (FI_AR_01) Custommer Accounts Group is not as per Design document. Chances are there customerr gets created in unwanted Group. No direct impact. Master Data Customer Document Type (FI_AR_02) Document Type configuration is not in sync with Design document. Master Data Dunning Process (FI_AR_03) 3 level of Dunning is configured in the system, but configuration is not as required. UNN is not currently using that. Dunning Form / Letter is also not having UNN logo. Configuration Managing Parked Document (FI_AR_04) Customer invoice/Credit Memo all get parked and posted by same user. Park and Post functionality is there to segregate duties, responsibilities and authorization. For that Work Flow is the better option.As a result there is no checks and balance in the set up. Configuration Print Customer Invoice / Credit Memo (FI_AR_05) Customer Invoice details not reflected in the report. In the absence of details, nothing can be made out what the invoice is about. Configuration Print Customer Official Receipt (FI_AR_06) Report is not showing all the relevant items. As adjustment is not showing, proper information is not getting populated. Configuration Areas of Improvement Summary

17. Process Description SAP category Provision for Doubtful Debts (FI_AR_07) Managing through FI JV Posting. Process can be automated through proper system configuration. Configuration Statement of Accounts Print Out (FI_AR_08) Report Form is only standard SAP delivered one. New Smart Form with UNN logo need to be developed. Configuration Customer Invoices (FI_AR_09) Currently customer invoices are downloaded from another system, downloaded data feed into excel template and uploaded in to SAP through Z-TCode. It is basically a manual process and prone to error. Proper Interface with Idoc processing will reduce the chances of error. Or Else SD module should be configured. Configuration Customer Invoices (FI_AR_10) SD Module should be considered to get the benefits of S4 Hana like Predictive Accounting which will help forecasting Sales merely based on Sales Order. Sales forecasing functionality is missing. Configuration Areas of Improvement Summary

18. Areas of Improvement Summary Process Description SAP category Chart Of Depreciation (FI_AA_01) Chart of Depreciation is not as per design document. Configuration Asset Class (FI_AA_02) Number of Asset Classes is not matching with design document. Configuration Evaluation Group (FI_AA_03) Evaluation Group is not as per design document. Configuration Low Value Asset Class (FI_AA_04) LVA has not been configured as per design and value check has not been inserted in Asset Class. System will not be able to determine which one is LVA. Configuration Scrap Value / Residual Value (FI_AA_05) Scrap Value/ Residual Value not configured properly. It will have effect on depreciated value. Configuration Specify alternative document type for Acctg Principle - Specific Documents (FI_AA_06) Specify alternative document type for Acctg Principle - Specific Documents is not configured. Asset acquisition through PO from MM module will not correctly reflect in Asset Accounting. It will be issue in Asset Reporting. Configuration

19. Areas of Improvement Summary Process Description SAP category Deactivate Asset Class in Chart of Depreciation (FI_AA_07) Irrelevant asset classes not deactivated in CoD DACD. It will create problem in Asset Reporting. All irrelevant asset classes will appear in the report unleass manually filtered out. Configuration Asset Procurement with PO (FI_AA_08) Working properly but need to check the settings if asset report reflects everything properly. Few Asset report may be impacted. Configuration Integration with General Ledger Accounting (FI_AA_09) GL Account assignment configuration need to be revisited once more. Several transactions- specifically related to asset procurement may get impacted. Configuration

20. Process Description SAP category House Bank (FI_BA_01) House bank creation is not at par with Design Document Configuration Define Bank Key (FI_BA_02) Bank Key as configured in the system is not matching with what has been designed. Configuration Ranking Order in Bank Determination (FI_BA_03) As House Bank configuration is not in sync with design, ranking is also not in line. Configuration Electronic Bank Statement (FI_BA_04) EBS not fully configured in the system. Manual processing is the order of the day. Configuration Manual Bank Statement (FI_BA_05) MBS is also not configured in the system. There is no scope to upload Bank Statement in the system and clear all the reqd documents. Configuration Cash Reporting - Cash Position (FI_BA_06) Cash and Liquidity management not completely configured to forecast cash/liquidity position. Cash Position can not be ascertained. Configuration Areas of Improvement Summary

21. Process Description SAP category Cash Reporting - Cash Forecast (FI_BA_07) Cash and Liquidity management not completely configured to forecast cash/liquidity position. Cash Forecasting not possible. Configuration Areas of Improvement Summary

22. Detailed Report – Items At Risks

23. Business Sub-process General Ledger Risk / Implication Recommendation Company Code is not set to Productive It will in turn create issues that includes Transactional Data and Master Data Loss It is recommended that CompanyCode need to be set as Productive to avoid Transactional & Master Data loss and restoring the mistake by Resetting data in Company Code if any. . Observation (FI_GL_01) RISK LEVEL: AT RISK ASSESSMENT CATEGORY SAP CONTROL STATUS

24. Detailed Report- Areas of Improvement

25. Business Sub-process General Ledger Risk / Implication Recommendation It is observed that there is no configuration done for Business Area It will impact to get proper Financial Reporting as per line of business. By configuring Business Area Organization can be able to generate Financial Statement as per Business Area wise or Existing Line of Business wise. Observation (FI_ GL_02 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILTY STATUS

26. Business Sub-process General Ledger Risk / Implication Recommendation It is observed that there is Segment Configuration although it is there in Configuration Documents It will unable the Organization to get Segment wise reporting which is legal requirement in specified country. By configuring Segment , Organization can be able to trace Segment wise Cost & Revenue, Resource Allocation & Profit assessment in separated Financial data.. Observation (FI_ GL_03 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

27. Business Sub-process General Ledger Risk / Implication Recommendation It is observed that GR/IR is mapped with criteria assessment ( ZUONR) . It should also be mapped with criteria Purchase Document. It will create problems in automatic clearing in F.13 By Mapping with criteria Purchase Document (EBELN) Automatic clearing can be enabled. It can also be done at Company Code level through proper GL Account set up Observation (FI_ GL_04 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILTY STATUS

28. Business Sub-process General Ledger Risk / Implication Recommendation It is observed that regarding documents park & post adequate internal control are not fall in place . It might have the possibility to cost & revenue leakage . By take place the authorization of park & post of documents to different user , It will secure the prudent internal control & stop revenue leakage . Observation (FI_ GL_05 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

29. Business Sub-process General Ledger Risk / Implication Recommendation Tolerance Limit are not being restricted in Individual User Level. No Authorization limit is possible . Anyone can be accessible to Park & Post any amounts of documents . Authorization power can be misuses By Implementing Tolerance Limit can restrict under wise authorization to established prudent internal control & stop misuses of Park & Post document any value by user. Observation (FI_ GL_06 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

30. Business Sub-process General Ledger Risk / Implication Recommendation GR/ IR regrouping functionality are not in uses. Period End accurate report for segregating Assets & Liability mighty be impacted . By incorporate GR/ IR regrouping functionality possible to get accurate segregation of Assets & Liability Report at period end . Observation (FI_ GL_07 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

31. Business Sub-process General Ledger Risk / Implication Recommendation SAP Accrual Engine in not mapped in the system.. In absence of SAP Accrual Engine, Manual Accrual / Deferral post through F-02 might be prone to error. Possible to risk mitigation of incorrect Accrual / Deferral posting by incorporating SAP Accrual Engine automated Accrual / Deferral . Observation (FI_ GL_08 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

32. Business Sub-process General Ledger Risk / Implication Recommendation G/L Account – Plan Assessment setting is not maintained in the system. Sender / Receiver of distribution of Cost from G/L to cost object / Assets not possible. By incorporating G/L Account – Plan Assessment setting the Sender / Receiver of distribution of Cost from G/L to cost object / Assets not possible. Observation (FI_ GL_09 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

33. Business Sub-process General Ledger Risk / Implication Recommendation G/L Account distribution functionality is not in the system. Sender / Receiver of distribution of Cost from G/L to cost object / Assets not possible. By incorporating G/L Account distribution setting the Sender / Receiver of distribution of Cost from G/L to cost object / Assets not possible. Observation (FI_ GL_10 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

34. Business Sub-process General Ledger Risk / Implication Recommendation Maximum m Exchange Rate Derivation define in the system. Without restricting maximum exchange rate derivation range system will not under the derivation limit while posting FC document which leads to inaccurate report of exchange rate difference in FC Document By limiting the exchange rate derivation system will post the exchange rate derivation as per the maximum specified limit to accurate FC Document posting report . Observation (FI_ GL_11 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

35. Business Sub-process General Ledger Risk / Implication Recommendation Dual Functionality of G/L Account Tolerance Group are set in the system. Dual functionality define in G/L Account Tolerance Group leads to no impact in document processing By removing multiplicity of G/L Account Tolerance Group limit , document processing will be effective in Tolerance Group limit impact & ensuring better internal control at the time of document posting. Observation (FI_ GL_12 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

36. Business Sub-process General Ledger Risk / Implication Recommendation Assigning Accounts for Clearing Difference is not configured in the system. At the time of G/L Account Clearing , clearing deference set by tolerance group can’t be posted in specified clearance difference account & it will impact in reporting document . By assigning accounts specify the amount of clearing difference are posted to specific account as per set by tolerance group . Observation (FI_ GL_13 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

37. Business Sub-process General Ledger Risk / Implication Recommendation Foreign Currency Valuation Methods specific to UNN is missing in the system. It does not have any direct impact in in the System . For Company Code reporting specific it is better having configuration of Foreign Currency Valuation Method as per Company Code specific. Observation (FI_ GL_14 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

38. Business Sub-process General Ledger Risk / Implication Recommendation Forex Valuation is not performed in UNN At the period end Gain or Loss on account Forex valuation is not possible and as a result accurate financial reporting will not be possible. All GL Accounts, Vendors and Customers managed in foreign currency need to be included in configuration and end user training need to be initiated. Observation (FI_ GL_15 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP USAGE STATUS

39. Business Sub-process General Ledger Risk / Implication Recommendation Simulation Ledger Functionality is not introduced in the UNN Without Simulation Ledger, simulation of Forex valuation is not possible. Simulation will help justify the forex valuation in advance. By introduce this functionality the systems will enable to valuate the future value of Forex Valuation. Observation (FI_ GL_16 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

40. Business Sub-process General Ledger Risk / Implication Recommendation Predictive Ledger Functionality is not introduced in the UNN It will impact the bottom-up prediction of future financial results in Predictive ledger functionality in the systems. . By introducing SD Module & setting up the Predictive Ledger Functionality system can enable the bottom –up prediction of future financial results. Observation (FI_ GL_17 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

41. Business Sub-process General Ledger Risk / Implication Recommendation FIORI Launchpad Functionality is not introduced in the UNN It will impact some of the important areas in CO modules such as Budget & commitments per line items . Cost Element Planning & Plan Activity Allocation etc. for End user side & impact in access various Top level Management Reports By introduce FIORI Launchpad End User can upload bulk posting of JV , can design Company Code specific Planning Profile for Cost Center Accounting, CE Planning & Activity Planning , Budget , Commit. Observation (FI_ GL_18 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

42. Business Sub-process General Ledger Risk / Implication Recommendation SAP Workflow Functionality is not introduced in the UNN It will impact longer check & approval time . By introducing SAP Workflow functionality , it will reduce the time & labour involvement for every transaction Check & Approval Process. Observation (FI_ GL_19 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

43. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor Accounts Group is not as per Design document Chances are there vendor gets created in unwanted Group. No direct impact Need to rectify the design document in line with configuration set up. Observation (FI_ AP _01 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

44. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor document type is not in conformity with Design Document. No direct impact on system. Need to rectify the design document. Observation (FI_AP _02 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

45. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor payment method is not as per design. It may create problem in document posting and clearing. Vendor payment method need to be rectified. Observation (FI_AP _03 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

46. Business Sub-process Accounts Payable Risk / Implication Recommendation There is a need to revisit the Special GL Indicators configuration. If Spl GL Indicators are not as required, chances are there that documents get posted in wrong GL Accounts. There is a need to revisit the Special GL Indicators configuration.Also which ever Spl GL Indicators need to be used in Automatic Payment Program to be identified. Observation (FI_AP _04 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

47. Business Sub-process Accounts Payable Risk / Implication Recommendation Tolearance limit is not being used in UNN to restrict posting of documents at individual level. If Tolerance limit not defined properly, any amount difference may get posted. Tolerance limit must be defined Observation (FI_AP _05 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

48. Business Sub-process Accounts Payable Risk / Implication Recommendation Currently document park and post functionality done by same user. No workflow involved/configured. There is no logic in parking and posting by same user. Workflow should be considered here. It also helps in segregation and authorisation of duties. Observation (FI_AP _06 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

49. Business Sub-process Accounts Payable Risk / Implication Recommendation It is observed that Petty Cash limit is not configured. It will restrict the amount to a certain level. And also help in replenishing cash journal in time. Restriction will help triggering when to replenish Cash Journal. Observation (FI_AP _07 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

50. Business Sub-process Accounts Payable Risk / Implication Recommendation Currently UNN is making vendor payments through manual cheque only, no cheque is printed through SAP. The process is not automated, rather a manual process. Cheque printing through SAP will reduce manual intervention and automate the process. Observation (FI_AP _08 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

51. Business Sub-process Accounts Payable Risk / Implication Recommendation Issuance of LoC not done through SAP and It is also not configured in SAP. Manual intervention is need to issue a LoC. System must be set to handle LoC in SAP. Observation (FI_AP _09 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

52. Business Sub-process Accounts Payable Risk / Implication Recommendation Payment with Printout. Manual intervention reqd to get the same approved. No workflow is there. WF will save time and reduce manual intervention. Workflow should be considered here. Observation (FI_AP _10 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

53. Business Sub-process Accounts Payable Risk / Implication Recommendation Currently no payment advice generated from SAP as it is not properly configured.. Vendor is not informed automatically about the payment. Configuration should be set in to automate the process. Observation (FI_AP _11 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

54. Business Sub-process Accounts Payable Risk / Implication Recommendation Payment voucher is also an integral part of vendor payment. It helps in bringing clarity. Currently no payment voucher generated from SAP. Configuration must be set in to avail this feature. Observation (FI_AP _12 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

55. Business Sub-process Accounts Payable Risk / Implication Recommendation There is a functionality in SAP to trigger payment advice to Vendor through Email/message which is not working in UNN. Intimation to vendor through email(an automated process) is missing. Configuration (specially master data set up) should be set in to automate the process. Observation (FI_AP _13 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

56. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor Net Off with Customer. It is being used through F-44 - A manual Process Manual process is always prone to error. Process can be automated with appropriate master data set up. It can be achieved in Company Codelevel also. Observation (FI_AP _14 ) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

57. Business Sub-process Accounts Receivable Risk / Implication Recommendation Customer Group is not as per Design document Customer Group might get created in wrong group and reporting may become confusing. By creating design specific Customers Group, it will control and prevent Customer master data creation in unwanted Customer Group. Observation (FI_AR_01) ASSESSMENT CATEGORY: SAP CONTROL STATUS RISK LEVEL: AREA OF IMPROVEMENT

58. Business Sub-process Accounts Receivable Risk / Implication Recommendation Document Type configuration is not in sync with Design document. It might create confusion in identification of specific document number range as per design specified. . By configuring document types as design specific the transaction type can be identified properly. Observation (FI_AR_02) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

59. Business Sub-process Accounts Receivable Risk / Implication Recommendation Dunning Process is not Configured as per UNN specific & Dunning Form/ Letter not having UNN Logo . Dunning Form/ Letter without UNN Logo might not be accepted by Business Partners & create Legal issues. Dunning Process should be configured as per UNN specified along with UNN Logo to fulfil the Business requirement . Observation (FI_AR_03) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

60. Business Sub-process Account Receivable Risk / Implication Recommendation Authorization Control issue in Park & Post of Customer Documents It might lead to internal control issue as user can misuses its power for Park & Post by himself as Maker & Checker control is not in place . By implementing Maker & Checker concept by limiting the authorization control of different users can safeguard the misuse of the power as user specific. Observation (FI_AR_04) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

61. Business Sub-process Account Receivable Risk / Implication Recommendation Statement of Accounts Print Out. Report Form is only standard SAP delivered one. Statement generated from SAP is without UNN logo. New Smart Form with UNN logo need to be developed Observation (FI_AR_05) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

62. Business Sub-process Account Receivable Risk / Implication Recommendation SD Module is not yet configured It prevent to create Invoices in the Systems & uses Print Functionality . By Implementing SD Modules Customer Invoices can be created in the systems & enabling customer specific report functionality , also enable printing functionality. Even profitability analysis in COPA better. Observation (FI_AR_06) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

63. Business Sub-process Account Receivable Risk / Implication Recommendation Provision for Bad Debt and Recovery related functionality are not automated in the systems Managing through FI JV Posting , probability of omission of booking of provision entries will involve both statutory & financial implication. By incorporate automatic process Provision entries can be managed without error & time saving in respect of user point of views. Observation (FI_AR_07) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

64. Business Sub-process Account Receivable Risk / Implication Recommendation Customer Invoices downloaded from Legacy Systems & Uploading through Z- T Code in the SAP Systems. Manual Process might be error prone , lead to possible revenue losses. By implementing SD Module or Proper Interface with Idoc processing will reduce the chances of error. Observation (FI_AR_08) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

65. Business Sub-process Account Receivable Risk / Implication Recommendation Predictive Accounting Configuration is missing in the systems Sales forecasting might not be possible , it will impact Business for Revenue forecasting . By implementing SD Module along with Predictive Ledger configuration business predicts future sales & other reporting requirements.. Observation (FI_AR_09) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

66. Business Sub-process Asset Accounting Risk / Implication Recommendation Chart of Depreciation is not as per design document It might have been reporting issue as per business requirement due to COD not sync as per Design Document Specific. Chart of Depreciation should be mapped as per Design Documents to get document specific report as per Business Requirement . Observation (FI_AA_01) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

67. Business Sub-process Asset Accounting Risk / Implication Recommendation Number of Asset Classes is not matching with design document. It might have been reporting issue as per business requirement due to Number of Assets Class are not maintained as per Design Document Specific. Number of Assets Classes should be mapped as per Design Documents to get document specific report as per Business Requirement . Only 26 Assets Class have been found instead of 43 as per Design Documents . Observation (FI_AA_02) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

68. Business Sub-process Asset Accounting Risk / Implication Recommendation Evaluation Group is not as design document Evaluation Group wise Assets Report will be impacted. Design document need to be rectified to incorporate waht has been configured in the system. Observation (FI_AA_03) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

69. Business Sub-process Asset Accounting Risk / Implication Recommendation LVA has not been configured as per design and value check has not been inserted in Asset Class. System unable to determine the Low Value Assets (LVA) & it will impact in Valuation of Assets as well as valuation of Inventory also . LVA should be configured as per Design Specific Documents, also value check of LVA need to be taken place in the system to determine Valuation Report of LVA as per Business Requirement . Observation (FI_AA_04) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY/CONTROL STATUS

70. Business Sub-process Asset Accounting Risk / Implication Recommendation Scrap Value/ Residual Value not configured properly It will impact in the calculation of depreciation of Assets . Systems will not identify the scrap assets due to improper configuration of Scrap / Residual Value of Assets. Scrap Value / Residual Value should be configured properly in the systems to identify the Scrap Value / Residual Value at the time of depreciation run .It will enable to get accurate reports as per business requirement . Observation (FI_AA_05) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

71. Business Sub-process Asset Accounting Risk / Implication Recommendation Specify alternative document type for Accounting Principle - Specific Documents is not configured. It will lead to incorrect reporting in Account Accounting .. Alternative Document Type for Accounting Principal wise need to be configured to get proper reporting of Assets as per Specified Document . Observation (FI_AA_06) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

72. Business Sub-process Asset Accounting Risk / Implication Recommendation Irrelevant asset classes not deactivated in Chart of Depreciation DACD It will create problem in Asset Reporting. All irrelevant asset classes will appear in the report unless manually filtered out. .. Irrelevant asset classes should be deactivated to obtain accurate Assets Report as per specified assets class as per design documents. Observation (FI_AA_07) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

73. Business Sub-process Asset Accounting Risk / Implication Recommendation Report related to Assets procured through PO need to be checked thoroughly Few Assets Report might be impacted . Assets procured through PO shall be checked properly to get accurate report. Observation (FI_AA_08) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

74. Business Sub-process Asset Accounting Risk / Implication Recommendation AO90 or GL Account assignment configuration need to be revisited once more. AO90 or G/L Account assignment configuration is missing, it will impact the several transaction specifically to assets procurements. AO90 or GL Account assignment configuration need shall be rechecked again to link the missing G/L Accounting to ensure correcting reporting . Observation (FI_AA_09) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

75. Business Sub-process Bank Accounting Risk / Implication Recommendation House bank creation is not at par with Design Document No direct impact on business. Design document need to be corrected as per system configuration. Observation (FI_BA_01) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

76. Business Sub-process Bank Accounting Risk / Implication Recommendation Bank Key as configured in the system is not matching with what has been designed. No direct impact on business. It is better to rectify the design document as per configuration. Observation (FI_BA_02) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

77. Business Sub-process Bank Accounting Risk / Implication Recommendation As House Bank configuration is not in sync with design, ranking is also not in line. No direct impact on business. The best way to bring design and configuration in sync is to change the design document as per configuration. Observation (FI_BA_03) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP CONTROL STATUS

78. Business Sub-process Bank Accounting Risk / Implication Recommendation Electronic Bank Statement not fully configured in the system. Manual processing is the order of the day. UNN need to check with the Banks if they are able to provide bank statements in format MT940, BAI or Multicash which are well supported by SAP. These are the most popular formats, though there are other formats which SAP supports as well. Alternatively, Considering the format of statements banks are able to deliver, a custom programme needs to be developed. The developed programme will automatically process the bank statements and clear the respective GL Accounts. Observation (FI_BA_04) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

79. Business Sub-process Bank Accounting Risk / Implication Recommendation Manual Bank Statement is also not configured in the system. There is no scope to upload Bank Statement in the system and clear all the reqd documents. UNN need to check with the Banks if they are able to provide bank statements in format MT940, BAI or Multicash which are well supported by SAP. If it is the case, then there will be no need to manually select and clear each document as is the case right now. Alternatively, Considering the format of statements banks are able to deliver, a custom programme needs to be developed. The developed programme will automatically process the bank statements and clear the respective GL Accounts. Observation (FI_BA_05) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

80. Business Sub-process Bank Accounting Risk / Implication Recommendation Cash and Liquidity management not completely configured to forecast cash/liquidity position. Cash Position can not be ascertained and Cash Forecasting not possible. Currently, UNN is not using any Liquidity (Cash) forecasting in SAP. Even Cash management is not configured in SAP. As a result, they are unable to forecast any Liquidity position for a given date.Though in FIORI app, there are tiles to depict Cash Position and Cash Forecast that may help some extent (provided reqd configuration is there). But UNN is not using any FIORI (it must be activated) apps. Observation (FI_BA_06) RISK LEVEL: AREA OF IMPROVEMENT ASSESSMENT CATEGORY: SAP SCALABILITY STATUS

81. Detailed Report – Items in Compliance

82. Business Sub-process General Ledger Risk / Implication Recommendation Chart of Accounts are maintained with all required parameter. It is working fine . No action required It has been running as per SAP Best Practice . Observation (FI_GL_ 01 RISK LEVEL: IN COMPLIANCE

83. Business Sub-process General Ledger Risk / Implication Recommendation GL Account preparation maintained with required parameters It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_ 02 ) RISK LEVEL: IN COMPLIANCE

84. Business Sub-process General Ledger Risk / Implication Recommendation G/L acct master record maintenance It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_0 3 ) RISK LEVEL: IN COMPLIANCE

85. Business Sub-process General Ledger Risk / Implication Recommendation G/L Account Changes (Centrally) It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_0 4 ) RISK LEVEL: IN COMPLIANCE

86. Business Sub-process General Ledger Risk / Implication Recommendation G/L acct master record in Chrt /accts It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_0 5 ) RISK LEVEL: IN COMPLIANCE

87. Business Sub-process General Ledger Risk / Implication Recommendation G/L account master record in co code It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_0 6 ) RISK LEVEL: IN COMPLIANCE

88. Business Sub-process General Ledger Risk / Implication Recommendation Automatic Clearing without Currency It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_0 7 ) RISK LEVEL: IN COMPLIANCE

89. Business Sub-process General Ledger Risk / Implication Recommendation G/L: Balance Carryforward It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_0 8 ) RISK LEVEL: IN COMPLIANCE

90. Business Sub-process General Ledger Risk / Implication Recommendation Individual Reversal of Docs It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_0 9 ) RISK LEVEL: IN COMPLIANCE

91. Business Sub-process General Ledger Risk / Implication Recommendation Mass Reversal of Documents It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_10) RISK LEVEL: IN COMPLIANCE

92. Business Sub-process General Ledger Risk / Implication Recommendation G/L Acct Pstg : Single Screen Trans. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_11) RISK LEVEL: IN COMPLIANCE

93. Business Sub-process General Ledger Risk / Implication Recommendation Document Changes It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_12) RISK LEVEL: IN COMPLIANCE

94. Business Sub-process General Ledger Risk / Implication Recommendation Closing and Opening of Posting period It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_13) RISK LEVEL: IN COMPLIANCE

95. Business Sub-process General Ledger Risk / Implication Recommendation Recurring Entry Documents It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_14) RISK LEVEL: IN COMPLIANCE

96. Business Sub-process General Ledger Risk / Implication Recommendation Document Splitting is Active It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_15) RISK LEVEL: IN COMPLIANCE

97. Business Sub-process General Ledger Risk / Implication Recommendation Park G/L Account Items It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_16) RISK LEVEL: IN COMPLIANCE

98. Business Sub-process General Ledger Risk / Implication Recommendation Default Value Date configuration is at par It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_17) RISK LEVEL: IN COMPLIANCE

99. Business Sub-process General Ledger Risk / Implication Recommendation Document Types configuration are at par It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_18) RISK LEVEL: IN COMPLIANCE

100. Business Sub-process General Ledger Risk / Implication Recommendation Field Status Variants configuration is at par It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_19) RISK LEVEL: IN COMPLIANCE

101. Business Sub-process General Ledger Risk / Implication Recommendation Ledger - Currently only one Ledger 0L is being used in UNN It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_20) RISK LEVEL: IN COMPLIANCE

102. Business Sub-process General Ledger Risk / Implication Recommendation Automatic Clearing - GL Account It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_21) RISK LEVEL: IN COMPLIANCE

103. Business Sub-process General Ledger Risk / Implication Recommendation Exchange rates are maintained on regular basis. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_GL_22) RISK LEVEL: IN COMPLIANCE

104. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor Master create, change and display It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_01) RISK LEVEL: IN COMPLIANCE

105. Business Sub-process Accounts Payable Risk / Implication Recommendation Terms of Payment- Vendor It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_02) RISK LEVEL: IN COMPLIANCE

106. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor Invoice in FI through FB60 It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_03) RISK LEVEL: IN COMPLIANCE

107. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor credit memo is also a standard one. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_04) RISK LEVEL: IN COMPLIANCE

108. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor clearing is as er standard. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_05) RISK LEVEL: IN COMPLIANCE

109. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor down payment Request It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_0 6 ) RISK LEVEL: IN COMPLIANCE

110. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor Outgoing Payment – Withholding Tax – Gross. Here TDS amount bourne by the vendor It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_07) RISK LEVEL: IN COMPLIANCE

111. Business Sub-process Accounts Payable Risk / Implication Recommendation Vendor Outgoing Payment – Withholding Tax – Gross – Up. Here TDS amount bourne by the UNN. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AP_08) RISK LEVEL: IN COMPLIANCE

112. Business Sub-process Accounts Receivable Risk / Implication Recommendation Customer Master Data creation , change and display. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AR_01) RISK LEVEL: IN COMPLIANCE Customer Master Data Customer Master Data

113. Business Sub-process Accounts Receivable Risk / Implication Recommendation Terms of payment as per design. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AR_ 02 RISK LEVEL: IN COMPLIANCE

114. Business Sub-process Accounts Receivable Risk / Implication Recommendation Special GL Indicator is as per design document. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AR_03) RISK LEVEL: IN COMPLIANCE

115. Business Sub-process Accounts Receivable Risk / Implication Recommendation Park Customer Invoice : Invoice is parked from FI end. It is working fine . No action required . It has been running as per SAP Best Practice Observation (FI_AR_04) RISK LEVEL: IN COMPLIANCE :

116. Business Sub-process Accounts Receivable Risk / Implication Recommendation Post Parked Customer Invoice : Parked invoice is posted from FI end. It is working fine . No action required . It has been running as per SAP Best Practice Observation (FI_AR_05) RISK LEVEL: IN COMPLIANCE

117. Business Sub-process Accounts Receivable Risk / Implication Recommendation Park Customer Credit Memo : Customer Credit Memo is parked It is working fine . No action required . It has been running as per SAP Best Practice Observation (FI_AR_06) RISK LEVEL: IN COMPLIANCE

118. Business Sub-process Asset Accounting Risk / Implication Recommendation Account Determination : GL Accounts assignment is at par . Account Determination : GL Accounts assignment is at par . It has been running as per SAP Best Practice . Observation (FI_AA_ 01 ) RISK LEVEL: IN COMPLIANCE

119. Business Sub-process Asset Accounting Risk / Implication Recommendation Asset Class Number Range : It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_02) RISK LEVEL: IN COMPLIANCE

120. Business Sub-process Asset Accounting Risk / Implication Recommendation Depreciation Areas It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_03) RISK LEVEL: IN COMPLIANCE

121. Business Sub-process Asset Accounting Risk / Implication Recommendation Depreciation Key It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_04) RISK LEVEL: IN COMPLIANCE

122. Business Sub-process Asset Accounting Risk / Implication Recommendation Assets Under Construction It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_0 5 ) RISK LEVEL: IN COMPLIANCE

123. Business Sub-process Asset Accounting Risk / Implication Recommendation Technical Clearing Account It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_0 6 ) RISK LEVEL: IN COMPLIANCE

124. Business Sub-process Asset Accounting Risk / Implication Recommendation Document Type for posting depreciation It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_07) RISK LEVEL: IN COMPLIANCE

125. Business Sub-process Asset Accounting Risk / Implication Recommendation Depreciation Posting Rules It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_0 8 ) RISK LEVEL: IN COMPLIANCE

126. Business Sub-process Asset Accounting Risk / Implication Recommendation Specify Financial Statement Version for Asset Reports It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_0 9 ) RISK LEVEL: IN COMPLIANCE

127. Business Sub-process Asset Accounting Risk / Implication Recommendation Define Depreciation Area for Quantity update It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 ) RISK LEVEL: IN COMPLIANCE

128. Business Sub-process Asset Accounting Risk / Implication Recommendation Specify transfer of APC value It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 1 ) RISK LEVEL: IN COMPLIANCE

129. Business Sub-process Asset Accounting Risk / Implication Recommendation Specify transfer of depreciation terms It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 2 ) RISK LEVEL: IN COMPLIANCE

130. Business Sub-process Asset Accounting Risk / Implication Recommendation Determine depreciation areas for asset class It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 3 ) RISK LEVEL: IN COMPLIANCE

131. Business Sub-process Asset Accounting Risk / Implication Recommendation Define currencies for depreciation areas It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 4 ) RISK LEVEL: IN COMPLIANCE

132. Business Sub-process Asset Accounting Risk / Implication Recommendation Specify use of currencies It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 5 ) RISK LEVEL: IN COMPLIANCE

133. Business Sub-process Asset Accounting Risk / Implication Recommendation Determine depreciation areas It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 6 ) RISK LEVEL: IN COMPLIANCE

134. Business Sub-process Asset Accounting Risk / Implication Recommendation Revaluation of Fixed Assets It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 7 ) RISK LEVEL: IN COMPLIANCE

135. Business Sub-process Asset Accounting Risk / Implication Recommendation Define transaction types for revaluation It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_1 8 ) RISK LEVEL: IN COMPLIANCE

136. Business Sub-process Asset Accounting Risk / Implication Recommendation Assign Forms It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_19 RISK LEVEL: IN COMPLIANCE

137. Business Sub-process Asset Accounting Risk / Implication Recommendation Asset Master data Create, Change & Delete It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_20) RISK LEVEL: IN COMPLIANCE

138. Business Sub-process Asset Accounting Risk / Implication Recommendation Depreciation – Ordinary Depreciation & Unplanned Depreciation It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_21 RISK LEVEL: IN COMPLIANCE

139. Business Sub-process Asset Accounting Risk / Implication Recommendation Asset Write up / down Functionality It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_22) RISK LEVEL: IN COMPLIANCE I

140. Business Sub-process Asset Accounting Risk / Implication Recommendation Asset Retirement Functionality It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_23) RISK LEVEL: IN COMPLIANCE

141. Business Sub-process Asset Accounting Risk / Implication Recommendation Asset Sale with/without Customer Functionality It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_2 4 ) RISK LEVEL: IN COMPLIANCE

142. Business Sub-process Bank Accounting Risk / Implication Recommendation Bank Account ID is as per design. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_BA_01) RISK LEVEL: IN COMPLIANCE

143. Business Sub-process Bank Accounting Risk / Implication Recommendation Available amount in Bank Determination is as per design. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_BA_02) RISK LEVEL: IN COMPLIANCE

144. Business Sub-process Bank Accounting Risk / Implication Recommendation Document type including reversal document type correctly mapped. It is working fine . No action required . It has been running as per SAP Best Practice . Observation (FI_AA_03) RISK LEVEL: IN COMPLIANCE

145. Abbreviations

146. Some common abbreviations FI Finance COPA Controlling-Profitability Analysis CO Controlling VAT Value Added Tax MM Materials Management RFQ Request For Quotation SD Sales& Distribution PO Purchase Order LE Logistics Execution GR Goods Receipt PP Production Planning IR Invoice Receipt PM Plant Maintenance P2P Procure to Pay QM Quality Management O2C Order to Cash HCM Human Capital Management BRS Bank Reconcillation Statement SF Success factors FM Funds Management COVID-19 Novell Corona Virus MTO Make To Order GL General Ledger MRP Material Requirements Planning FOC Free of Charge MTS Make To Stock SOP Sales Operation Planning PIR Planned Independent Requirement MDG Master Data Governance BOM Bill Of Materials ChaRM Change and Release Management COA Certificate Of Analysis VA-PT Vulnerability and Penetration Testing PFS Production Flow Scheduler CWIP Capital Work In Progress IM Inspection Method CWB Configuration Work Book GOSI General Organisation of Social Insurance CAPEX Capital Expenditure FO Foundation Objects OPEX Operating Expenditure PROD Production Client SKF Statistical Key Figure DEV Development Client SLM Straight Line Method QAS Quality Assurance System Client PCA Profit Center Accounting Pre-Prod Pre-production Client BS Balance Sheet KSA Kingdom of Saudi Arabia CC Cost Center MOC Management of Change PC Profit Center UAE United Arab Emirates

147. Thank You