Posting Repairs & Maintenance Expenditure

Thanks for your mail. I am talking about revenue expenditure of Repairs & Maintenance account segment which is not capitalization part. The account segment is coming automatic in the line level , there is no active part to enter cost centers while creating work order. As discussed with you that you will capture the cost center while create work order for respective repairs.

Please be informed that we have found ,if the Repair & Maintenance expense is going as revenue expenditure, the account segment is coming without cost center along with location, line of business (LOB). I think the work order is opened by engineering depart for respective machine repair, hence it is not capture the cost center through EAM (Engineering Assets Management) Module. We eventually have to capture the cost center for particular transaction. Please take care the issues & ensure accordingly.

Yesterday I already explained you that at the time of capitalization of work order we need to enter the Department and Location in Offset account we you provided the screenshot.


Can you send me the screen shot for revenue expenditure account? Please find the work order number 15634 as reference for revenue expenditure.

EAM Module in Oracle for Engineering

Please find the integrated scenario template as discussed today. As agreed , please have an internal review and get the DATA SET populated by COB (Close of Business) tomorrow. If you have any query, please let me know.

Thanks for your email and solved your problem. This correction data is effected in stock report of March -2014. So, please share this information in relevant department.


Please be informed that we have found that if the Repair & Maintenance expense is going as revenue expenditure ,the account segment is coming without cost center along with location ,line of business. I think the work order is opened by engineering depart for respective machine repair, hence it is not capture the cost center through EAM (Engineering Assets Management) Module. We should have to capture the cost center for particular transaction. Please take care the issues & ensure.


Yesterday I already explained you that at the time of capitalization of work order we need to enter the Department and Location in Offset account we you provided the screen shot.

Status of the MDR Report-ERP Implementation

Hope you are doing well. I have seen your provided documentation and have some query. I think at the time of UAT season we will clear those query.

I have created two Move order for Depot. MO Number are 17136, 17137. But data is not coming in the MDR Report. I have tested with the Depot and FG warehouse MDR. Number are 17139,17142. Data is coming correctly.

As discussed with Finance, I need a change in MDR Report. That change is decimal point. Decimal point should be two digit.

We have done the change suggested by you. Can you please re rerun the report and close the report. I have tested MDR Report for Depot. There are two types of MDR one is Received from Chemist another is Received from Store. Both are OK.

And I also have tested another MDR for warehouse and this is working fine. I have attached the XLs file for your observation. If it is ok, we can close this report.

Please wait for Finance feedback. If there is no problem of Finance than you can close this report. This batch was dispensed on 10-09-2013 and physical stock count on 30.12.2013. As production decided to retrieve these materials in MIS, the opening stock qty of these materials will be increase in the month of March, 2014. Therefore, you are requested to add of these materials as per attached list.

Final COA for the Production Instance of ERP Implementation

Please find attached the final COA (Chart of Accounts) for the Production Instance. This doesn’t include accounts (which are very specific to Sister Concerns). I will include them over the next week.

Please review the file and keep it for any working at your end while giving us the Master Data / Open Balances for upload. Bank Accounts & Payroll related accounts are still open.

· Bank Accounts you have already shared the information with me.

· Payroll element data, it is pending with you as you will discuss with Chief Financial Officer (CFO) and let us know if you need separate GL (General Ledger) accounts for each of the Payroll Elements or we can club one or two elements in one single GL (General Ledger) Account.


I have seen the analysis reports you shared in the below mail.., PB-03 Analysis, B-08 Analysis. These kind of analysis is possible in the system as all the data is getting into the application. However I am not sure if these reports are already under development.


Let us meet tomorrow morning at 10.30 am to 11.00 am to review this file and get the confirmation. This is need to proceed to the next steps.

KPMG Consultants, Please be at the phone call for this meeting.

Status call on List of reports for ERP Systems

Please find attached the list of estimated amount of laboratory reagents in hand, as of 31st Dec. 2013, along with price per unit pack. List of Chemical reference standard is very close to be prepared, hope to send you by today afternoon. Extremely sorry for being late.

Can you please fill up the following table and revert back to me by end of day today? I need the status urgently for consolidation. Thanks.

Note:

1. Status Value should be either of the following:

a. Completed

b. Pending

c. Attempted/ In Progress

 

SN.	Report Description	Module
3	Cost Sheet-Product wise	OPM Costing
16	All types of Variance report costing related	OPM Costing
17	Capacity Utilization Report Plant wise	OPM Costing
18	Excess/Shortage Material ingredient used for potency and the gap with  annexure 2 specification	OPM Costing
25	Monthly Product wise Gross Margin Report	OPM Costing
31	Inventory Valuation	OPM Costing
32	Stock Valuation Report (Monthly and YTD)	OPM Costing
33	Insurance Claim Status Report	OPM Costing
34	External Companies Loan Register Report	OPM Costing
35	Labor Usage Report	OPM Costing
36	Mfg Cycle	OPM Costing
37	Machine Usage Report	OPM Costing
38	Toll Charge (Period wise Stock wise) Report	OPM Costing
39	WIP Valuation report with No. of Days in WIP	OPM Costing
40	COGM Report	OPM Costing
41	Obsolete/SM Goods and Materials	OPM Costing
42	MDR Execution Report	OPM Costing
43	Excess Materials purchase report than budgeted	OPM Costing
44	Stock Valuation report of Gift Items	OPM Costing
45	Stock Valuation report of Spare Parts	OPM Costing

Some complex changes made in Cost Sheet

Please find the raw and packing materials stock report in the attached file. For raw materials the physical stock is given in the separate column.

I am not in office today and will be back on the 6th January, 2014. I will upload the same in the costing module but just let me know whether this product will be costed in the year 2013 or 2014 as I will have to upload the unit price accordingly?


With regards to the discussion we had on cost sheet on 26 Dec '13,

Below are some complex changes you requested to be fermented in the current cost.

1. Lot Output changes : Done

2. Segregation of Labor and Overheads for Actual Cost summary calculation.

3. Showing Fixed and Variable separately in BP Item category in FG cost sheet.

4. Populate the hours proportionatly for BP flowing in FG ( calculation as discussed )

For 2nd, 3rd and 4th Point Sandeep will get back to us with the feasibility.

Other then the above additional changes report is proper in calculation and presumed to be closed.

Gross Margin report has to be reviewed by the Management Team

I believe Cost Sheet is ready to test/view based on the latest discussion and format sent on Dec 1,2013. Once, Management acceptance is granted and requirements are fulfilled regarding cost sheet, sign-off will be done! Again, Gross Margin report has to be reviewed by the Management Team based on the cost sheet.


As discussed I am enclosing the sample cost sheet (In excel) for your confirmation.

To incorporate the requirement you have asked for In the current cost sheet, we have added some rows which are in yellow (for Total and Per unit cost).

Provide your confirmation on the attached cost sheet so that my technical team can excute the same.

We sent raw materials (File enclosed) from plant A to plant B in quarantined status. We communicated with RM store, plant B several times for QC (Quality Control) status. But they did not give any QC status of these materials. As a result our QC (Quality Control) did not update QC status.

Therefore, you are requested to take measures for QC (Quality Control) update of these materials.

Accounts Payables–WebADI full demonstration

Can’t agree on that yet! We have not received any revised schedule for the same. For example, in Finance we are supposed to start with AR. However, in both the halves of the tomorrow, we have prescheduled meeting with the same users for the following:

1. AP – WebADI full demonstration

2. Depot Interface Detailed Finalization Please advice how we can start UAT, which will not overlap with the above mentioned sessions as the key users are common for all. We can start the following modules tomorrow:



1. HR

2. SCM reports / customization testing

3. Payroll clarification meeting


Let me know if there are any issues to the above.



We can start COSTING module UAT from tomorrow 01.30 pm ( post lunch). Remember in yesterday’s meeting, we agreed to start costing UAT from tomorrow onward.



Please let me know if we cannot complete these 4 activities tomorrow :



1. HR UAT-- All day

2. SCM Reports / Customization Testing -- All day

3. Payroll clarification -- 1 hr

4. Costing UAT-- 01.30 pm to 05.30 pm


There is no problem with starting the below mentioned activities. I am copying the relevant users as invitation in this email.


Please read the message from KPMG below and note that we will be completing the following activities tomorrow. Thanks.



Please include IT team also. I know tomorrow is OFF for OPM users but if, for some official purposes, they are coming tomorrow then it would be great to include OPM Production. Else, OPM users can join the UAT from Saturday onward.

Identification of tasks at the granular level for all the modules

As discussed with you, I have already completed the identification of tasks at the granular level for all the modules except for Finance & Costing. The granular activities has been identified by all their respective module leaders.

I have reminded the Finance & Costing team to complete the identification of their granular activities by tomorrow 11.00 am. I will review the details with them tomorrow afternoon

Based on the current progress so far, I will be able to submit you the ‘PROJECT PLAN – draft ver 7.0 , which will include all the granular details, by tomorrow night (11/04/2013).

I will need your cooperation in completing the above details in your modules by 11.00 am tomorrow morning.


I am attaching the above document for your INPUTS. Please read carefully the following :

For each of the ‘PENDING UAT SCENARIOS’, mentioned in column-A , in the attached file , we have further sub-divided them into the following activities

Sorry for the delay in sending the project plan due to some workload.

I have completed the task please find the attached file for GL, AR, CM module details.

Thanks, Finance Consultant. If you have time, I will request you to spend some time with Costing Consultant in guiding her for the AP modules as well.


Can you send me for the Costing & AP modules by tomorrow 11.00 am ? Can you guide Pooja for the AP modules. Can you guide Pooja for the Costing modules.

Interest to maintain budgets within ERP system

At this point of time, I would not like to arrive at any conclusion only on the basis of this single requirement (maintaining Production Volume, Overheads Budget). The right solution can be suggested only after reviewing all of the budget formulation, budgets, budgetary control and variance analysis requirements so that design can meet the forward looking and evolving needs of the organization.


Suggest you speak to Head of Finance/CFO on this thread. I can recall discussion with Head of Finance/CFO where-in he expressed interest to maintain budgets within ERP system.

· I suggested that Oracle GL has most of the budgeting related functionality to support all requirements like entering and maintaining budgets, enforcing budgetary control (prevent raising of PR/PO if there are no budgets), Variance analysis (predefined reports on budget vis-୶is actual in Trial balance etc.,).

· I have explained that this functionality can be enabled anytime in the future.

However my assumption was that none of those requirements would warrant any changes in the existing COA structure. Please take me on call wherever you need support.

UAT costing scenerios and Assets master discussion

We would like to inform you that I was not in the CC of below mail. However, I handed over hard copy of our (RGF) General Plant QA, QC. PD lab and Micro lab Equipments and recently procure RGF II and Herbal plant’ QC Equipments list with received date and Price and Equipment ID No. I received this list too, So fur I Know there is no pending related to this mail. I fill up the QC GMF-1 part in green shade. If need there is more, Please specifically mention us.


In addition; RGF II and Herbal plant put their Equipment ID No. Please knock them and see the attached file.Costing module has been updated with the below mentioned products. Thanks.

Please be informed that due to quantity and batch size changes in formulations/products of Tablets, the COGS are changed accordingly. Formerly LOH segment was considered with respect to GMF-I but now per Cepha, so LOH increased significantly. .

Please find attach the Costing Scenerios status till 31st Oct 2013 . Requesting both of you to update me on the result of COST SHEET REPORT testing today.

Hope you are doing well. As per KPMG team, they want to complete the scope for Costing UAT in a very short amount of time as shown in the attached file. Please go through the scope and let us know about your feedback regarding the feasibility of the timings declared considering your regular workload and also any other observation. Thanks.

Engineering Assets Capitalization and Depreciation

Due to unavoidable circumstances (Strike), the below mentioned session for tomorrow only has been postponed. Revised schedule will be emailed to you at the earliest. Please note that as of now, the schedule will remain unchanged from the 28th October, 2013 (Monday); however, if any decision regarding any further schedule change occurs, you’ll be notified accordingly. Looking forward to your cooperation.

Good afternoon. Please be informed that finance department will capitalize attached list during current accounting period. For this reason cost centre as well as GEq number is required for respective assets.

Would you please provide us the required information AEAP. Looking forward to your cooperation.

Finance department will capitalize all the assets in attached file which was purchased during 2012 & 2013.Please confirm me all the details & putted GEq number in respective assets. Though it was already confirmed by Engineering, DM, Project. If you have any quary you may also contact with Engineering. For your reference please see the below mail which I was sent on 01.10.2013 but till to date I didn't get any respose except Engineering.That's why I am sending this mail again.

This is for your information that it is very important to capitalize this assets in correct cost center otherwise depreciation will not be charged in proper cost centre. Please forward this mail to concerned person, I missed to copy.

Solution to the Schedules of Final Accounts in ERP System

A.      Schedules of Final Accounts

Type	Pre-requisites & Solution	Proposed Timelines
Pre-requisite	-          Structured COA values in Account Segment Working along with Finance Team in finalizing the Account Values.	07-Oct-2013
Solution	-          We will be developing an excel macro based template which will use detailed trial balance from Oracle GL and generate all schedules. -          Meeting these requirements using FSG is not advised due to multiple reasons like o   it’s not very user-friendly and user will be required to run separate report for each schedule. o   Further any additions / maintenance to schedules is tricky to maintain.	20-Nov-2013 Two weeks after go live.

Issues related to Inventory Module under New ERP Development

 Some Issues related to Inventory Module under New ERP Development

• Working properly. Need assets to be tagged correctly in Inventory
• This is an inventory module issue. Kindly address as a part of inventory issue register
• Rename the values for the Company; Management to reconfirm
• We need to check for the next period; Checked but errors are generating
• Standard Oracle way of doing. Nothing to do!
• Default LOV should be present for all inventory location; NOT Possible; This is the only way to achieve (e.g. just like Invoice Batch concept)
• Same as above
• It must be aligned like the other Web ADI forms; We have select from Account Code Combinations only. Resolved
• For UAT, we will be using couple of banks for the time being
• Pending for Subsidiaries; This will be resolved in production, 
• This is an inventory module issue. Kindly address as a part of inventory issue register
• Alert on rejection of material is provided earlier, we will develop the same. Alert for taking the sample within 1.5 months of arrival of material will be taken up as a New Alert requirement
• This is a New Report, kindly include as a part of New Report requirement.This is an inventory module issue. Kindly address as a part of inventory issue register
• Standard Report Item Cost Details report is available, but it is not as per Corporate requirement. This would be considered as a New Report
• This is an inventory module issue. Kindly address as a part of inventory issue register

Discussing business critical scenario with Finance Manager/CFO

If you miss any business critical scenario and want to add now, please discuss with Finance Manager first. We’ll decide about the scenario.

I think there has been a communication gap. We are NOT adding any new scenarios but we are exploring different angles/ variations of the same, which are being listed down as prescribed by KPMG consultants. For example, in our UAT scenario we have mass allocation, recurring journals, provisional journals in GL. We have already checked the functionality and the system works absolutely fine. However, we have different kinds of the stated journals, which need to be tested thoroughly for system consistency.

 Finance team will complete listing down of such variations and will get it verified by CFO by Sunday, which will be shared with PMG consultants. They can then decide whether we need additional List of Values-LOVs/ any modifications in the setup. Please note that we don’t foresee any design change from the To Be at this point of time. Bottom line: NO new scenarios or change in fundamental design! J Thanks.

Yes I agree on this that this should not be part of issue register and it is OK to discuss additional angles where the functionality can be used until it is not changing the base design.

UAT execution schedules for Engineering and Cash Management

I hope you are doing well.As discussed, please send us the updated Sections of the different Facilities, so that we may map it with the Chart of Accounts from Finance and send the required information to allocate the Contingent employees working in the plants.


Please send us the updated Sections of each of the different Facilities, so that we may map it onto the Org Chart for HR. Can we meet for half-hour today , between 02.00 pm to 02.30 pm, in First-Floor IBD to discuss the above topic ? We need to complete Engineering master definition by the end of this week and there are few points that still needs clarification.


I am very busy with our Cash Management UAT sessions. If Costing and Fixed Assets are there, it should be all right. This is FYI. .


Please find the Indirect Cost Allocation sheet created based on our discussion. Please let me know any other observations.

Based on my discussion with you last week, we were supposed to meet with Engineering & Fixed Assets team together in order to resolve some issues before we can finalize the ASSET MASTER. When can we expect that meeting to take place ?

I would request you to expedite the above so that we can proceed with Engineering Assets Management -EAM UAT.

Updation of Cost Component Class against resources

As per my understanding, the points 4 has immediate impact on UAT testing for configuration, hence lets work on the below action plan:

1. Creation of the Cost Component Classes :

a) Primary Packing (Sterile)

(b) Secondary Packing (Sterile)

(c) Packing (Non-Sterile)

(d) Packing (Sterile )

Costing Team, the Packing (Non-Sterile) will be the Packing Cost component class which we have already incorporated, so this will remain unchanged. For the rest three, please update in the condolidated Cost Component Class List. Please do this by today EOD (End of Day)


2. Production Team: Please flag the resources impacted by the above change and send it to the group. Please update the General Data master for the impacted plants. If possible please send it by tomorrow morning.


3. Updation of Cost Component Class against resources - To be incorporated by Costing once manufacturing flags the resources - Please send this by tomorrow EOD.


4. Cost centers to be added in Department Segment values - by today EOD


5. The Fixed Assets masters to be updated for the change in the above department segment value by - tomorrow - EOD)


6. Allocation of Common Costs for costing - Based on the latest COA- Chart of Accounts. Request IT to schedule a meeting tomorrow to finalize the above.


7. For Product Development- PD Costs I did not find a cost center added in the Supporting Departments, then how have we tagged the Fixed assets used in Product Development -PD department.


For other points, this has to be internally discussed and communicated to KPMG.

Charging Costs to Manufacturing Cost Centers in ERP

As discussed with the Head of Manufacturing and KPMG team following points were noted yesterday:


1. Operation-wise Labor resources should be captured (if project timeline does not require an extension).

2. Operation-wise Overtime rates should be captured (if project timeline does not require an extension).

3. Expenses relating to Operations Services Division -OSD should be out of the Manufacturing expenses.

4. Expenses relating to IBD should be out of Manufacturing expenses.

4. Fixed Assets of Packing Operations should be re-arranged and splitted into four following groups:

(a) Primary Packing (Sterile)

(b) Secondary Packing (Sterile)

(c) Packing (Non-Sterile)

(d) Packing (Sterile )


Overtime and Night Labor should be well defined to avoid confusion in recording transactions.

Data Masters, Fixed Assets, G/L will be awaiting until further directives upon discussion.

Some decisions on the User Acceptance Testing (UAT)

As discussed over the meeting held couple of minutes back, please send us the item standard rates and resource rates for costing at the earliest for User Acceptance Testing -UAT purpose.

I just checked with KPMG Team and they confirmed that they have received the both the files. For Item standard rates, 10 % item was missing the standard rates.

This requirement came to us today as a pending issue from our side. Please attach the email that you have sent a month earlier as a reply.

Please find attached the Chart of Accounts- COA with correct coding and updated as per the User Acceptance Testing -UAT.

As discussed please incorporate this in the Budget account code segments, Trial Balance and Year End financial statement mapping.


You are requested to make clear it . Where it will include ?

I would like to appreciate your good finding.


The User Acceptance Testing-UAT status & Issue register review meeting today from 05:00PM – 06:00PM has been postponed till further notice. Revised schedule will be emailed to you later.


Please give me the item cost for the following items, I have mentioned the legacy item codes and plant.

Accounting flow for Direct Expenses in ERP Environment

As discussed over the meeting held couple of minutes back, please send us the item standard rates and resource rates for costing at the earliest for User Acceptance Testing (UAT) purpose.

In current situation: 

Payroll expenses for Direct Labor would be accumulated under Direct Labor cost center of a Plant irrespective of departments

Night Shift Allowances for Direct Labor would be accumulated under Direct Labor NT cost center of Plants irrespective of departments

A discussion is required as to whether the Management wants/will want to see, in cost sheet, the splitted labor costs under different operations or not. If yes, the current COA (Chart of Accounts) and Data Masters might get affected. Again, a decision from the Head of Manufacturing is yet to be taken as to whether rates for Overtime is required further- which will necessitate creating an additional Labor resource. Anyway, in either cases, costs of products will not be changed.

Please confirm with CFO & relevant stakeholders and let me know when you want the discussion to be scheduled.


1. Please submit the ‘TO-BE’ process diagram for sign-off today. Also, let me know when can we complete the process documentation ?


I agree with you. My point is that there will be no regular employees for the night shift’