SAP FI/CO Consultant's role during upgrade from R/3 to ECC 6.0

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SAP FI/CO Consultant's role during upgrade from R/3 to ECC 6.0

Q : What should the role be for an SAP FI/CO Consultant during an upgrade from SAP R/3 4.6 to ECC 6.0? I have seen an upgrade done by an SAP Basis Consultant, but what does a FI/CO Consultant do during the upgrade process?

A : Upgrading to ECC 6.0 from SAP R/3 4.6 is what's called a technical upgrade. The core applications remain untouched. As such, the role of a FI/CO Consultant should be limited to testing core business functionality after the upgrade. However, this does not hold true if you use R/3 4.6 extensions, which are replaced by new components in ECC. If this is the case, extensive business testing is recommended. Furthermore, decisions related to modification adjustments and customer developments impacted by the upgrade also need to be tested in the new release.

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Profile Summary

Understanding of business process combined with sound capability in overseeing integrated accounting process/administration to formulate proper accounting policies and procedures to be comprehensively followed. Depth-knowledge and experiences in Financial Statements, Accounting Standard and SAP FI/CO & PS ERP System. Customer-focused and organizational skills in dealing with corporate organization and individuals. Enjoy taking challenging responsibility with measurable criteria of success. Eagerly accept risk, ownership, and decision making.

Project and Experiences

1. SAP New GL Project, Release ECC6, PT. Chitra Paratama (subdealer of Michelin) and PT. Chitra Paratama Singapore Branch as a SAP FI/CO Team Lead, October 2012 - April 2013

2. SAP NCR (3rd System) Interface Development, Release ECC6, Maxis Bhd., Malaysia, February 13 - September 14, 2012

3. SAP Upgrade Project, Release ECC6, Fraser & Neave Holdings Bhd., Malaysia, March 7 - October 7, 2011

4. SAP System Implementation, Release ECC6, PT. Bukit Makmur Mandiri Utama (BUMA), October 18, 2010 - February 18, 2011

5. SAP System Implementation, Release ECC6 (Indonesia Rollout), One Vale PT. INCO Project

6. SAP Upgrade Project, Release ECC6, Tiara Marga Trakindo Group (3 Companies) & Adiratna Bani Makmur Group (5 Companies), February 1 - August 30, 2010)
7. SAP System enhancement experience for PT. Mitra Solusi Telematika (WBS Element ReStructuring), October 1, 2009 - January 22, 2010
8. SAP System enhancement experience for PT. Sanggar Sarana Baja (Site Services Business Area), June 2, 2009 - July 31, 2009
9. SAP System enhancement experience for PT. Sanggar Sarana Baja (Balikpapan Remanufacturing Business Area), April 1, 2009 - June 1, 2009
10. 1 full SAP System implementation lifecyle experience for PT. Alfa Trans Raya (Shipping Company), December 8, 2008 - February 25, 2009
11. SAP R/3 Development and Implementation, Organized by PT. Trakindo Utama and ISS Consulting, as a Project Member/Key User for SAP FI/CO, PS Modules, January - October 2000

Hands on experience in full project life cycles is essential within SAP FI/CO & PS. Extensive configuration and integration knowledge is required with the ability to resolve any project related issues and all other related tasks.

The Companies are ; 1. PT. Tiara Marga Trakindo (Holding Company of TMT Group) 2. PT. Cipta Kridatama (Coal Mining Company) 3. PT. Cipta Krida Bahari (Logistic Company) 4. PT. Chitra Paratama (Tyre Business Company) 5. PT. Sumberdaya Sewatama (Rental Genset Equipment Company) 6. PT. Sanggar Sarana Baja (Manufacturing Company) 7. PT. Mitra Solusi Telematika (IT Company) 8. PT. Alfa Trans Raya (Shipping Company) 9. Tiara Matra Pte. Ltd. - Singapore (Holding Company of TMPL Group) 10. Halcon Primo Logistics - Singapore (Logistic Company), 11. Chitra Tyres Pte. Ltd. - Singapore (Tyre Business Company), 12. PT. Maccaferri Indonesia (Part of a worldwide industrial group Maccaferri with headquarters in Bologna, Italy), 13. PT. International Nickel Indonesia, Tbk. (One of the world’s premier producers of nickel, a versatile metal, which is important in improving the living standards and fostering economic growth)

, 14. Fraser & Neave Holdings Bhd. (Listed company involved in manufacturing and sale of soft drinks, dairy products, glass containers, etc.), 15. Maxis Bhd. (Mobile devices, call plans, broadband and business solutions)

Financial Statements

Financial statements (or financial reports) are formal records of the financial activities of a business, person, or other entity. In British English, including United Kingdom company law, financial statements are often referred to as accounts, although the term financial statements is also used, particularly by accountants.

Financial statements provide an overview of a business or person's financial condition in both short and long term. All the relevant financial information of a business enterprise, presented in a structured manner and in a form easy to understand, are called the financial statements. There are four basic financial statements:

Balance sheet: also referred to as statement of financial position or condition, reports on a company's assets, liabilities, and Ownership equity at a given point in time.
Income statement: also referred to as Profit and Loss statement (or a "P&L"), reports on a company's income, expenses, and profits over a period of time.Profit & Loss account provide information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state.
Statement of retained earnings: explains the changes in a company's retained earnings over the reporting period.
Statement of cash flows: reports on a company's cash flow activities, particularly its operating, investing and financing activities.

For large corporations, these statements are often complex and may include an extensive set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.

Elements of Financial Statements

The financial position of an enterprise is primarily provided in the Statement of Financial Position. The elements include:

1. Asset: An asset is a resource controlled by the enterprise as a result of past events, and from which future economic benefits are expected to flow to the enterprise.

2. Liability: A liability is a present obligation of the enterprise arising from the past events, the settlement of which is expected to result in an outflow from the enterprise' resources, i.e., assets.

3. Equity: Equity is the residual interest in the assets of the enterprise after deducting all the liabilities. Equity is also known as owner's equity.

The financial performance of an enterprise is primarily provided in an income statement or profit and loss account. The elements of an income statement or the elements that measure the financial performance are as follows:

4. Revenues: increases in economic benefit during an accounting period in the form of inflows or enhancements of assets, or decrease of liabilities that result in increases in equity. However, it does not include the contributions made by the equity participants, i.e., proprietor, partners and shareholders.

5. Expenses: decreases in economic benefits during an accounting period in the form of outflows, or depletions of assets or incurrences of liabilities that result in decreases in equity.

Taxation in Indonesia

Indonesian Taxation law provides the following definitions to clarify whom exactly is obligated to pay tax:

Individuals or statutory bodies which meet relevant criteria stipulated, including certain tax collectors or withholders.

Statutory bodies are defined by Indonesian Taxation Law as groups of persons and/or capital which constitutes a unit. These are more clearly defined as such entities undertaking or not undertaking businesses, covering limited liability companies, limited partnership companies, other companies, state or regional administration-owned companies in whatever names and forms, firms, joint companies, cooperatives, pension funds, partnerships, groups, foundations, mass organisations, social and political organisations or organisations of the same type, institutions, permanent establishments and other forms of statutory bodies.

Companies and entrepreneurs are defined in the context of Indonesian Taxation Law as those in their business activities or works/jobs produce goods, import goods, export goods, undertake trading businesses, utilize goods, provide or utilize services from regions outside the customs area.

Companies are subject to Value-Added Tax, pursuant to Law of 1984 and all amendments, excluding the few small-scale businesses whose criteria are stipulated by the Minister of Finance.

The Indonesian Tax Period is defined as one calendar month or other periods stipulated by a decision of the Minister of Finance at the maximum of 3 (three) calendar months (quarters). Tax Year shall be the period of 1 (one) calendar year unless taxpayers use accounting years different from the calendar year.

Indonesian Taxpayers must submit a Tax Return form which details and reports the calculation of tax payment owed by them. Tax Return may cover a tax period or a tax year.

Tax Payments shall be letters used by taxpayers to pay or remit tax due to the state cash through Post Offices and/or state- or regional administration-owned banks or other payment point appointed by the Minister of Finance.

The penalties for Tax Evasion and Avoidance are very strict in Indonesia. For Underpaid-Tax, Additional Underpaid-Tax, Overpaid-Tax and Nil-Tax Assessments- which may be received by the debtor in the form of letters, warrants and administrative sanctions. Tax Credits for over-taxation or overpayment is withheld until the subsequent year- as payouts are not issued within the same financial year. Independent works/jobs shall be jobs executed by individuals having special expertise in a bid to earn income not bound by certain working relations.

The Indonesian Taxation Laws

Indonesian taxation is based on Article 23A of UUD 1945 (1945 Indonesian Constitution), where tax is an enforceable contribution exposed on all Indonesian citizens, foreign nationals and residents who have resided for 120 cumulative days within a twelve month period. Indonesia has a stratification of taxation including Income Tax, Local Tax (Pajak Daerah) and Central Government Tax.

The relevant eight fundamental taxation laws of Indonesia include:

· General Provisions and Taxation Procedures Law "Undang-undang Ketentuan Umum dan Tatacara Perpajakan/UUKUTp" Law No. 6/1983, amended by Law no.16/2000;

· Income Tax Law ("Undang-undang Pajak Penghasilan/UU PPh": Law No.7/1983, amended by Law No. 17/2000;

· Value Added Tax VAT termed 'Goods and Services and Sales Tax on Luxury Goods' ("Undang-undang Pajak Pertambahan Nilai atas Barang dan Jasa dan Pajak Penjualan atas Barang Mewah"/UU PPN/PPn BM ): Law No. 8/1983, amended by Law No. 18/2000;

· Land and Building Tax ("Undang-undang Pajak Bumi dan Bangunan - UU PBB"): Law No. 12/1985 amended by Law No. 12/1994;

· Warrant for Tax Collection ("Undang-undang Penagihan Pajak dengan Surat Paksa/UU PPSP") Law No. 19/1997, amended by Law No. 19/2000;

· Fees for Acquisition of Rights to Lands and Buildings ("Undang-undang Bea Perolehan Hak atas Tanah dan Bangunan/UU BPHTB") Law No. 21/1997 amended by Law No. 20/2000;

· Tax Court Law ("Undang-undang Pengadilan Pajak/UU PP"): Law No. 14/2002;

· Stamp Duty ("Undang-undang Bea Meterai/UU BM") in short, Law Number 13 of 1985.

Purwanto - SAP FI/CO & PS Consultant

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