1. BUDGET Process Change Description Type of Change Process
The Budgeting module will help in better financial decision making at all levels of DoP as accurate real time information for each post office and each account head will be easily available on the SAP system.
Process
Change Description
Type of Change
Budget Planning
For planning, budget estimates will be received as per the organisational hierarchy in DoP, that is Head Office-> Division Office->Region Office-> Circle Office -> Budget Section of Directorate. Directorate Office user will create the Budget, and send it to the Planning Division for review. Corporate Planning Division will forward the reviewed budget to Budget Section, Directorate for obtaining the approval from Ministry of Finance. While budget estimates within DoP will be created, sent and approved on the SAP system, sending the budget data for approval to the Ministry of Finance will be outside the system.
Automation of creation, approval and maintenance of budget.
Identification of requirements and consumption of budget at any level will be possible on the system
Process
Change Description
Type of Change
Budget Allocation
Budget section of Directorate will allocate the approved Budget estimate/revised estimate budget from MOF to all circles on the SAP system. The entire process will be governed by multilevel workflow as per defined hierarchy and approval limit. Approved budget data will flow from Circle office to their sub ordinate offices through the work flow as per hierarchy maintained at the time of budget planning. The user at circle level, who is allocating the budget to Hos, will be able to view the estimated demand budget of all their sub ordinate offices.
Automation

2. Process Change Description Type of Change Process Change Description
Procurement and Requisition
A purchase order will be created at intending office, but only for those items which have been included in the specified budget (fixed asset budget, admin, expenses budget, sales & marketing expenditure budget and so on). Since payment will be made only for budget expenses and budgeted procurements, budget availability will be checked in the system itself. If budget is available, the procurement process will be initiated, otherwise.
Directorate/Planning/HoC will check for budget re-allocation (supplementary budget request will be raised for specific heads). After successful budget re-allocation, procurement process will be started, and if not, then this requisition for procurement will end.
Automation of doc. creation and budget check.
Process
Change Description
Type of Change
Budget for petty Expenses
For contingent expenses, a list of petty contingent items will be sent to Director level officer for approval. After approval, HO will enter the details of expenses on the SAP system. The system will do the appropriate HoA classification and consume available funds under concerned HOA.. These expenses will then be taken forward by Revenue Recognition by HO.
Automation

3. Key inferences: Process Change Description Type of Change
The complexity of change among budgeting process will be highest for procurement and requisition as budget check and document creation of purchase orders and payment will be automated. Manual budget check will no longer be done. The change impact will be highest for budget allocation as the entire process will be governed by multilevel workflow as per the defined hierarchy and approval limit. Approved budget data will flow form Circle office to Head office following the organisational hierarchy.
PROCUREMENT & INVENTORY MANAGEMENT:
In view of non-finalization of Authorized financial powers at different level, the procurement module is pending for rollout. However the Inventory management of Goods in CSD and PSD is activated. The checks as to the quantity etc. will be done by PAO online in CSI while providing Finance advice for procurement of stores.
ASSET ACCOUNTING:
The Cash and Bank module will provide a single view of the financial performance of DoP. Revenues and costs will be recognized under detailed Head of Accounts at the Point of Sale, and the approvals will be given in the SAP system.
Process
Change Description
Type of Change
Asset Acquisition
On acquiring an asset (purchased after raising a purchase order), the asset master data and asset general ledger is updated. A unique asset code will be assigned to each asset. Booking of invoice and payment to the vendor is done through the accounts payable process.
Asset information is maintained from the date of purchase
Automation

4. Process Change Description Type of Change Process Change Description
Asset Transfer
When an HO/SO wants to transfer an asset to another HO/SO, the transferring HO/SO will request the receiving HO/SO for a new entry in the asset master to receive the transferred asset. A unique asset code will e assigned to the asset. The transferring office will include this new asset number on the Asset Disposition Form and forward this form to the Asset Management for processing in the system.
Note: Transfer of assets is not tested yet in production server|
New way of functioning as no way of keeping record right now
Process
Change Description
Type of Change
Asset Retirement
/Scrapping
Removal of an asset (or part of an asset) is posted from a book keeping perspective as an asset retirement. The asset could be sold or scrapped.
On retirement of an asset, the user at PO will be required to make entry into the asset general ledger. This is starkly different from the current practice where information on assets is collected only once annually when triggered by Directorate.
Note: Retirement of assets is not tested yet in production server.
Change in nature of functioning
Process
Change Description
Type of Change
Asset under Construction
AUC assets can be purchased through procurement cycle but the depreciation will start once the capital work in progress asset are completed and transferred to normal assets.
New way of functioning as no such process exists now

5. Key inferences: Process Change Description Type of Change Process
Asset Depreciation
At the end of the month, before the existing period is closed and balances are transferred to the new period, depreciation run is manually triggered on the SAP system. Before the depreciation run, it should be ensured that all assets are correctly capitalised, transferred or retired under their respective processes, which will be done manually.
Monitoring to be done before depreciation calculation
Process
Change Description
Type of Change
Asset year end activity
A fiscal year change is the opening of new fiscal year for company code. No business transaction can be posted in a new fiscal year before the fiscal year of change. The asset management module of SAP has a feature of allowing posting in the next fiscal year when the current year closing is still pending.
New way of functioning as no such process exists now
Key inferences:
For all asset accounting processes, the employees that will be impacted by the new system are the asset maintenance PAs and SOs and Hos. The processes of asset transfer, asset under construction and asset year end activity will be new ways of functioning as no such processes exists as of now. While the complexity of change is high for asset depreciation because of the changes in work practices and business processes, the change complexity is high for asset acquisition as a result of automation and changes in current ways of working.