BSNL ERP Project
Lessons Learnt from POC Units
Presented to Rollout Units
Data Migration
#
Items of Work (Project Activities)
1 Preparation of Master Data Templates
2 Master Data Migration Workshop
3 Master Data Collection
4 Master Data Validation
5 Preparation for Cutover
6 Preparation of Transactional Data Templates
7 Workshop for Transactional Data
8 Transactional Data Collection
9 Transactional Data Validation
10 Transactional Data Reconciliation
2
Lessons Learnt
#
Issue / Risk
1 Vendor Details not
available:
•
Impact
• Duplicate Vendors
Resolution / Mitigation
• Unidentified Vendors
• Distribute Data forms to collect
data at the point of vendor
interactions.
• Payment automation
hindered – NEFT / RTGS
• Encourage Vendors to provide
data through BSNL Portal
• Un-reconciled vendors
payables
• Make payments subject to
submission of data – on lines of
KYC of Banks
Address
•
Registration details
•
Pan Card,
•
Bank Details
• Audit Observation
•
IFSC Code
•
Tax Registrations
3
Lessons Learnt….cont
#
Issue / Risk
2 Employee Details not
available:
Impact
• Credit of Salary
• Credit of
reimbursements
•
IFSC Code
•
Bank account details not • Payment automation
updated
hindered – NEFT / RTGS
•
Details for Retired
employees
•
Communication details
Resolution / Mitigation
• All employees to verify & update
their personal details in HRMS
• Data forms to collect data at the
point of retired employee
interactions / Unions
• Encourage retired employees to
• Un-reconciled employee provide data through BSNL Portal
advances / payables
• Make payments subject to
• Higher tax rate (TDS for submission of data – on lines of
not providing PAN).
KYC of Banks
• Audit Observation
4
Lessons Learnt….cont
#
Issue / Risk
3 Schedule of Employee
Loan & Advances do not
reconcile with the Trial
Balance:
•
•
Employee / Loan type
break-up does not
match with G/L
Balance Outstanding
does not have details /
identifier
Impact
• Employee Loans and
advances data can not
be uploaded in SAP
• Automatic Loan
management is
hampered
Resolution / Mitigation
• All employees to verify & update
their personal details in HRMS
• Data forms to collect data at the
point of retired employee
interactions / Unions
• Encourage retired employees to
• Un-reconciled employee provide data through BSNL Portal
Loans & Advances
• Make payments subject to
• Audit Observation
submission of data – on lines of
KYC of Banks
• Extended Black out
5
Lessons Learnt….cont
#
Issue / Risk
4 IT / Arrear data not updated
in HRMS correctly:
•
•
Established processes
in HRMS not being
followed by units.
Impact
Resolution / Mitigation
• Income Tax calculation
would not tally with SAP
• All employees to verify & update
their personal IT
• Wrong IT liability
calculated
• Standard process to be followed
across BSNL in HRMS.
• Salary calculation would
Wrong data pertaining to not reconcile
IT/ Arrear / Perks /
Medical are fed in
• Audit Observation
HRMS
6
Lessons Learnt….cont
#
Issue / Risk
5 EMD / SD details not
available (unidentified):
•
•
Impact
Resolution / Mitigation
• EMD / SD outstanding
data can not be uploaded
in SAP
• All EMD / SD details to be dug out
and matched against parties
EMD / SD outstanding
for more than three
years
• In future cannot be
refunded through SAP
EMD / SD outstanding
for less than three years
• Un-reconciled EMD /
SD
• May need to pay
penalty if payment
deadline will be missed
• Audit Observation
• Extended Black out
7
• Write-off EMD / SD outstanding
for more than three years as per
BSNL policy (Treat as Misc Income)
Lessons Learnt….cont
#
Issue / Risk
6 Interface with banks for
electronic transactions not
standardized across
BSNL :
•
•
•
Interface for electronic
upload of RTGS/NEFT
transfers not in place
with the banks BSNL is
operating with.
Banks not geared up
with electronic bank
statements in standard
formats fir BRS
Impact
• Automatic payment
process from SAP will be
delayed.
• Automatic BRS will not
be done.
• Manual effort will be
increased leading to
inherent mistakes.
• Manual Check writing to
continue
Cheque printing formats
not standardized
8
Resolution / Mitigation
• Unified bank for making payment
• Liaison with banks to get the
electronic transactions in place.
This should be completed for entire
BSNL well in advance.
• Finalization of format required for
bank reconciliation by using
international formats (MT940 /
Multicash)
• Moving to a phase of single
banker for all employees for all
payroll / reimbursement related
payments.
Lessons Learnt….cont
#
Issue / Risk
7
The Application
Landscape of BSNL is
not standardized across
BSNL. Automated
Electronic Interfaces with
SAP would not work :
• Automatic Interfaces
with SAP will not work.
•
• Non standardized
interfaces / processes
would leave room for
errors / mischief.
•
•
Interface with QMS for
fault data at NTR / ETR
/ WTR.
Impact
• PM / SD / MM / FICO
processes in SAP would
get impacted.
Sancharsoft not being
used for sales
• Manual effort would
processes with
increase
standardized processes
• Reconciliation problems
HRMS not being used
in BSNL CO for payroll
/ HR processes
9
Resolution / Mitigation
• Unified Standard Application to be
implemented across BSNL – QMS,
HRMS, Sancharsoft etc.
• Sancharsoft to be configured with
mapping tables for entire BSNL (as
done for KTK)
• Sales processes to be aligned
with KTK processes.
• Process standardization of entire
BSNL to be done inline with
processes frozen for POCs
Lessons Learnt….cont
#
Issue / Risk
8 Un-reconciled Remittance
•
Intra-circle remittances
not paired and having
balance.
Impact
• Data can not be
uploaded in SAP
• All intra-circle remittances should
be paired at circle level.
• Un-reconciled data
• After pairing remittances, requisite
heads of account will get the due
credit /debit and the balance should
be matched with TB.
• Audit Observation
•
•
Balance will not be
matching at different
head of account
(exp/cash/bank/asset/in
ventory/payable/receiva
ble)
Resolution / Mitigation
• Extended Black out
Incorrect TB
10
Lessons Learnt….cont
#
Issue / Risk
9 Inappropriate budget at
node levels of IM
structure.
• Problem at the time of
booking CAPEX/OPEX
expenditure.
• Delay in defining
applicable IM structure
• Expense booking on
wrong Estimate / Project /
exceeding budget
allocation / closed projects
Impact
• Data can not be
uploaded in SAP
• Un-reconciled CWIP
balances
Resolution / Mitigation
• Budgets should be allocated
appropriately to each node of an IM
structure to ensure that the
expenditure/budget available at
bottom level is always less than the
budget available in the upper node.
• Audit Observation
• Extended Black out
• Stops inventory
processing / period
closure
11
• Reverse mechanism or, bottom up
approach should be followed to
derive the appropriate budget at
each node of an IM structure.
• IM structure to be defined well in
advance
Lessons Learnt….cont
#
Issue / Risk
10 CWIP Data not reconciled
with open projects /
estimates
Impact
• Data can not be
uploaded in SAP
Resolution / Mitigation
• All Project / Estimate details to be
dug out and matched against CWIP
trial in advance
• Un-reconciled CWIP
• Asset will get proper
value if CWIP could not
be matched with open
projects
• Audit Observation
• Extended Black out
12
• Old estimates to be closed as per
BSNL norms
• Reverse mechanism may be used
to get this data reconciled.
Lessons Learnt….cont
#
Issue / Risk
11
Asset Data not reconciled
with GL codes:
• Data can not be
uploaded in SAP
•
• Un-reconciled Asset
Register
•
•
Non-assets included
Impact
Assets line items not
maintained with details • Wrong calculation of
depreciation
Decommissioning not
taken care of
• Audit Observation
•
Capitalization not
updated in register
•
Wrong posting of
Depreciation
•
Asset Class /
component not proper
• Extended Black out
13
Resolution / Mitigation
• All Asset to be dug out and
reconciled against trial – class,
component, GL wise in advance
• Retired / decommissioned assets
to be accounted for prior to cutover
• Capitalization of assets – squaring
of ATD / ATC to be completed prior
to cutover
Lessons Learnt….cont
#
Issue / Risk
12 Un-reconciled Inventory
•
Impact
• Data can not be
uploaded in SAP
Sancharsoft and other
inventory management • Un-reconciled data
application inventory
does not tally with TB
• Audit Observation
•
Stock position is not
reconciled store wise
•
Non-usable inventory
is not retired /
scrapped
• Extended Black out
Resolution / Mitigation
• All Inventory to be dug out and
reconciled against trial – GL wise in
advance
• Requisite treatment should be
done for inventory scrapped and
the scrapped inventory balance
should be matched with TB before
cut-over.
• Retired / decommissioned assets
to be taken into inventory (if the
same is inventorised and removed
from asset register) prior to cutover
• Physical inventory to be done and
updated with trial prior to cutover
14
Lessons Learnt….cont
#
Issue / Risk
13 Re-structuring of Units /
Merger of Trial Balance :
•
•
•
Merger of Civil and
Electrical Trial balance
with SSA - delay
Delay in finalization of
Treatment of CMTS
units.
Impact
• Delay in migration
• Reconciliation issues
across units post
migration
• Impacts master data
and Roles &
Authorization matrix of
related functions
Resolution / Mitigation
• Appropriate Notification on merger
/ restructuring to be issued to all
units well in advance
• Merger of Civil and Electrical Trial
Balance to be completed in the
legacy system itself
• The merged TB to be migrated in
ERP
• Treatment of CMTS unit to be
finalized for all locations well in
advance.
Formation of CSC /
CPC cells
• All Master data & R&A to be
prepared after the merger /
restructuring.
15
Lessons Learnt….cont
#
Issue / Risk
14 Changes incorporated in
ERP solution during
Cutover:
•
Location specific
changes incorporated
in the solution
•
Changes done to the
solution / process at
the last moment
•
Solution Changes
released to PRD
during cutover
Impact
Resolution / Mitigation
• Pan-BSNL
Standardization of
business process is lost
• All changes to the solution to be
governed through a Change
Control Board
• Last moment changes
impacts the solution
stability and has
cascading impact on the
integrated solution
• Effective Corporate
communication / campaign on
standardized processes across
BSNL to all Units
• Impacts master data
and Roles &
Authorization matrix of
related functions
• Poses reconciliation
problem / Post
Implementation issues
16
• All Releases of the Application to
be controlled by a Release
Management Cell
• Use of tools for requirement
gathering and effective monitoring
of change management process
(currently Mantis is used).
Lessons Learnt….cont
#
Issue / Risk
15 Cut-over period is not
well defined: :
•
•
Black-out period is too
extended
Business transactions
are carried out during
Black-out
Impact
• Delay in reconciliation
of accounts
• Reconciliation issues
across units post
migration
Resolution / Mitigation
• Ensure that all the master data is
complete and correct before
starting cut-over
• Ensure that all Schedules are
complete and tallied during last
closure of accounts prior to go-live.
• Data inconsistencies
due to uncontrolled back
log data
• Cut-over should not exceed 3-4
days
• Lot of unnecessary
effort spent in bringing
the system to real time
• Business Transactions to be
stopped to near complete level
during the entire Blackout period.
• Checks & balances are
compromised making the
system vulnerable.
17
Conclusion