May 2015
Mercury
1
CONFIDENTIAL
FINANCE E2E PROCESS AWARENESS
April 2014
Financial
Planning
Execution
Financial
Accounting
Telekom Research & Development Sdn Bhd (TM R&D)
Financial
Analysis
Who are we?
Financial
Planning
Financial
Accounting
Execution
CONFIDENTIAL
FINANCIAL
FINANCE E2E PROCESS AWARENESS
CONTROL &
ACCOUNT
April 2014
Roslaili
Financial
Operation
Financial
Services
Aida Syafiza
Nurhafiza
Telekom Research & Development Sdn Bhd (TM
R&D)
Payment /Cash
GL / Reporting /
AR
Nor Hidayah
Asset Mgmt /
Project
Accounting
Mahaliana
Book /
Credit Mgmt
Tg Sulaina
Financial
Analysis
What do we do?
Financial Control & Account – Key
Responsibilities
Scope
Project Accounting
Description





Monitor project expenses
Analyse project transactions
Manage Job Costing
CWIP Tracking
Conduct project budget review every quarter
Scope
Preparation of Financial
Statement
Description



Manage General Ledger




Asset and Inventory
Management











Registration of Asset
Tagging of Asset
Manage / monitor depreciation
Asset Verification
Transfer of Asset
Disposal of Asset
Auction of Asset
Impairment of Asset
Inventory Management (verification)
Prepare asset reconciliation
Insurance Claim


Account Receivable





Account Payable and
Payment



Cash Book / Cash Flow
/ Investment





Prepare monthly cash flow
Cash Management
Prepare bank reconciliation
Investment Management
Petty Cash


Taxation



Monitor debtor / collection
Prepare statement of Account
Bad Debt Provision
Billing
Prepare Debtors Ageing
Prepare Sales & Revenue analysis
Prepare impairment of Debtors
Prepare Debtors Reconciliation
Review creditors ageing
Review reconciliation on creditors & opex.
Coordinate outsourcing party – Finance SSO
Payment
Staff Claims (Reimbursement)


Coordinate External & Internal Audit

Audit
Manage General Ledger
Prepare Journals
Perform analysis on expenses
GL reconciliation
Coordinate application of new chart of account and new
cost centre
Financial System (SAP)
Prepare draft Tax Com
Prepare Deferred Tax
GST
Withholding Tax


Credit Management
Prepare monthly Financial Statement
Prepare consolidated account (console Pack & BCS)
Manage interco reconciliation
E2E Finance Value Chain
Financial
Planning
Execution
Financial
Accounting
Financial
Analysis
Financial Accounting (L4)
Project Financial Management (L5)
Payment (L5)
Billing (L5)
Credit Management (L5)
Asset Management (L5)
TM Research & Development
Financial Accounting
Version 1.0
FIN SSO
Financial Accounting
5. Execute
Payment
7. Post to
GL
8. Extract
trial balance
9. Prepare
Report
Control & Account
Purchasing
13. Register
Asset
Asset
Asset
Management
Other Division
Credit
Management
6. Cash
Book
Start
1. Execute
Business
Plan
Type of
transaction
3. Capture
transaction
2. Create
transaction
Income
12. Issue
invoice
Billing
CWIP Report
10. Update
Report
Financial Statement
Payment
4. Prepare
Payment
Type of
Report
11. Submit
Report
End
Project Financial Management
PROJECT FINANCIAL MANAGEMENT
Version 1.0
12. Amend
yearly
budget
FPM
4. Release
budget
Yes
No
Approve?
11. Verify
and make
approval
Yes
PMC/PSC
No
Revise?
No
Approve?
3. Review
and make
Approval
14. Receive
CR
Yes
10. Submit
BTR form
Research & PMO
Project
Management &
Implementation
Start
1. Estimate
costs
2. Propose
budget
Yes
5. Execute
project
Request
budget transfer?
No
Management of
Change
Request for
R&D Project
13. Propose
CR
No
Yes
6. Provide
Cost
Distribution
C&A
9. Review
CWIP /
Budget/ Plan
19. Charge
Manpower
Cost
HCBD
Project Proposal
Development &
Approval
7. Charge
indirect
costs
8. Submit
CWIP report
Year end?
No
Near
completion?
Yes
Request
CR?
No
15. Finalize
project cost
18. Close
project
account
16. Finalize
cost
incurred
17. Confirm
closure
20. Reconcile
charges
End
Cost Charging
Planning
PMO
Prepare budget
based on Business
Plan Template
TL
Prepare Project
Proposal (RND01)
Finance –
Control &
Account
Identification
Review by : PM
Verify by : Head PMO
Verification
Charging
Review and
verify the report
Review and verify the
allocation cost
1. Identify expenses (L/M/I)
2. Identify cost center/project
Identify the
allocation cost
Put up journal
Cost is allocated to
project based on Cost
Distribution %
Allocate to project
Basis of
Allocation
• Labour – based on
SLR
• Fixed Cost – based
on SFOR
• Prepare RND01
Action
Report
• Labour – based on
SLR
• Fixed Cost – based on
SFOR
• Project allocation is
based on Cost
Distribution %
• Allocated cost consist of :
1. Non Research Related Cost (NRR) – cost from
SBM (PMO/SM/GM)
2. Research Related Cost (RCC) – Unassigned
Researcher / GM Office / CM
• Identify type of
expenses : Labour /
Material /
Incidental
• Fill in “Allocated
Form”
• Ensure the charging
is as per budget
• Send journal to
Finance SSO by end
of month
Prepare report
CWIP
Payment
1
Direct AP

Staff Reimbursement

Utility Bills

Incentive / Reward /
Award/Event Fees

Medical / Fuel /
Insurance

Allowance for practical
student & research
fellow/visiting fellow

Payment to overseas
for training or
conference attended
by staff
2
SUS

Payment for
transactions with PO

Invoices uploaded by
Vendor through SUS
Portal

Payment is made 30
days after vendor
upload invoice
Payment
Direct AP/Non SUS
Version 1.0
1. Submit
Document
Start
Control & Account
Cost Center
1
Yes
2. Receive
Document
3. Check
Document
Query?
No
7. Fund Placement
& Confirm Creditor
List
4. Submit to
FinSSO
Yes
Finance SSO
5. Received
document
No
6. Generate
Creditor Listing
FinSSO
8. Execute
Payment
9. Generate
SLA Report
Monthly
Payment SUS
Control &
Account
2
Query?
Start
End
Version 1.0
1. Submit
Creditor List
and Fund
Request
4. Execute
Payment
5. Generate
SLA Report
Monthly
2. Receive Creditor
List due payment &
Fund Request
3. Fund Placement
& Confirm Creditor
List
6. Report
Analysis
End
Billing

Grant from TM
for research &
development
projects

Equipment
maintenance
services

Testing and
consultancy
services

Training

Product of
TMR&D (eg
hardware and
software)

IP Licensing
(eg royalty and
license fee)

Miscellaneous
(eg. Tender
form, vendor
registration)
COMMERCIALISATION
RESEARCH
GRANT
BILLING
Billing
Billing
Version 6.0
PMC/PSC
No
5. Review
the proposal
Approve?
Yes
FPM
2. Extract
Financial
Progress
3. Prepare
Grant Claim
4. Seek
PMC
Approval
6. Submit to
Group
Finance
7. Prepare
Sales Order
Query?
Yes
8. Prepare
Invoice
Credit
Management
9. Send
Invoice
Research
R&D
Start
1. Execute
activities
Activity
Type
Control & Account
Strategy Business Management
(SBM)
Commercialization
10.Prepare
Sales Order
11.Instruct
Billing
12.Receive
Billing
Instruction
No
13. Check &
Verify Billing
End
Credit Management
What is Credit Management?
 Process of controlling and collecting payments from
customers
 Assuring that customers pay on time
 Poor debts are managed in such a manner that payment
is received without damaging the relationship with that
customer
 The function is to control credit policies that will improve
revenues and reduce financial risks.
Credit Management
Credit Management
Version 1.0
SBM
Yes
Start
1. Finalize Payment
term/Quotation
Agreement
10. Verify
dispute
Valid?
No
12. Follow
up &
Negotiation
13. Get
Approval from
Management
14. Update
outstanding
status
Contr ol and Account
5. Check
Debtors Aging
No
Billing
2. Proceed
with Billing
Receive
Payment?
4.Do Filling 6. Sent SOA
Yes
3. Bank in
7. Receive
Confirmation
of balance
15. Bad Debt
Impairment
Management
8. Reconciliation
9. Highlight
Dispute
11. Sent
Reminder
End
Asset Management
What is Asset?
Any item that has
economic benefit
exceeding one year
costing more than
RM 1,000
intended to be used on a
continuous basis and not
intended for sale in the
ordinary course of business
Asset Management
Any item that has
economic benefit
exceeding one year
Asset Addition
Asset Tagging
Asset Management
Asset
Verification
costing more than
RM 1,000
Asset
Retirement
(Disposal)
be
used on
Asset Transfer
intended to
a
continuous basis and not
intended for sale in the
ordinary course of business
Asset Management
Fixed Asset Addition
1. Receive
budget from
Group Finance
PM/User
Start
Version 1.0
2. Create
PR
Finance SSO
Finance TMR&D
No
3. Check whether
purchase is an
asset
Asset?
Yes
4. Request
info of asset
5. Correct
GL code?
Yes
6. Update
EDS
7. Submit
AS01
10. Verify Asset
Register update
8. Post new
update in EDS
into SAP
9. Update
Asset
Register
No
11. Prepare
journal to rectify
End
Asset Management
Version 1.0
Finance SSO
Finance TMR&D
PM/User
Fixed Asset Tagging
Start
1. Perform
assetization
5. Perform
physical
tagging
6. Sign
template
4.Contact use
to pa ss sticker
& template
7. Check &
verify
template
Fixed
Asset
Addition
8. Update
EDS
2. Print
barcode &
template
3. Distribute
barcode
label
9. Post EDS
update into
SAP
10. Verify
tagging update
in SAP
End
Asset Management
Finance SSO
Finance TMR&D
User
Asset Retirement
Start
Version 1.0
1. Identify
asset to be
disposed
2. Fill up form “
Certification of
non economic
use”
3. Collect
and compile
the forms
13.
Surrender
the asset to
Finance
4. Prepare
documents for
ARPC meeting
5. Present
disposal
application for
ARPC
approval
Approve?
No
14. Inform
applicant/
user
Yes
6. Prepare
minutes and
relevant
document
7. Submit the minutes
and relevant
documents to Finance
SSO
10. Get
TMR&D’s CEO
signatory
8. Verify the
documents
9. Prepare
paper for
disposal
12. Inform
respective
staff
11. Deactivate
the asset in
SAP
End
Asset Management
FIN TMR&D
User
Asset Transfer
Start
Version 1.0
1. Get
approval
from Head
2. Submit
request to
Finance TMR&D
7. Obtain
acceptance from
transferee
10. Update
EDS
template
No
3. Determine
category of
transferee
Intercomp
any?
Yes
4. Log into
EDS
5. Prepare
Document
6. Verify
and approve
document
8. Submit
document to
Finance SSO
FIN SSO
Yes
9. Check and
verify
document
Query?
11. Execute
relevant
No
transaction in AA
SAP
End
Asset Management
Version 1.0
Finance SSO
Fixed Asset Verification
2. Prepare
Verification
template
1. Prepare
asset listing
3. Inform
schedule to
user/Head
Finance TMR&D
Start
11. Receive
signed
template
6. Compile
verification
update
Status
updated?
Yes
7. Update
Verification
template
No
10. Update
changes in
EDS
Update
verification
date in EDS
End
User
4. Appoint
representative
5. Assist
during
fieldwork
8. Sign
Verification
template
9. Submit
signed
template
12. Update
Asset
Register
End
|
Output of the activities
BP Guidelines
Internal template
TM template submission
Project Financial
Management
Execution
Where everyone plays their part…..
L4: Execution
Research Division
TMR&D Management
Start
1. Execute
business plan
Planning
&
Budgeting
Type of plan
Research & development
2. Execute
R&D activities
E2E Research
Management
SBM
Commercialization
4. Execute
commercialization
activities
IP
Commercialization
Support Division
Operational
5. Execute
operational
activities
Control & Account
Transactions happen here…..
3. Record
transaction
Financial
Accounting
End
Financial
Accounting
Will come back here…
Financial
Analysis
How the actions compared to plan…financially
Number crunching and making
sense of the numbers
Sample: Financial Performance Report
Ad-hoc reports
Variance analysis
MCM
Financial
Analysis
Also we do analysis on costs…
Variance report by cost centre
Financial
Analysis
Familiar with cost centre?
Sample: Cost Analysis
Standard Labour Rate (SLR)
Standard Fixed Overhead Rate (SLR)
Available on the website
Final say….