FUNCTIONAL DOCUMENTATION SAP ERP, localization extension …

Document is relevant to SAP ERP, localization extension 1.0 by EPAM for Republic of Belarus Released to customers: 01.02.2015 Language: English

FUNCTIONAL DOCUMENTATION

SAP ERP, localization extension 1.0 by EPAM for Republic of Belarus


Functional Specification

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Contents

1. Introduction .................................................................................................................... 3 1.1. Project Goals ........................................................................................................................ 3

1.2. Project Scope ....................................................................................................................... 3

2. Enterprise Structure ........................................................................................................ 7 2.1. Cost Centers ......................................................................................................................... 7

2.2. Storage Locations ................................................................................................................. 7

2.3. Sales Area ............................................................................................................................. 7

3. Master Data .................................................................................................................... 8 3.1. Chart of Accounts................................................................................................................. 8

4. Business Processes ........................................................................................................ 14 4.1. Cash Journal ....................................................................................................................... 14

4.2. Payment Transactions ........................................................................................................ 14

4.3. Revaluation of Open Items in Foreign Currency ................................................................ 15

4.4. Reconciliation Statements ................................................................................................. 16

4.5. Reclassification of Accounts Receivable and Payable ........................................................ 16

4.6. Fixed Assets and Intangible Assets Accounting ................................................................. 16

4.7. Precious Metals Accounting .............................................................................................. 18

4.8. FA Inventory ....................................................................................................................... 19

4.9. FA Revaluation by Index Method ....................................................................................... 19

4.10. Offsetting Account Determination .................................................................................... 20

4.11. VAT Accounting .................................................................................................................. 21

4.12. Profit Tax Accounting ......................................................................................................... 23

4.13. Accounting Reports ............................................................................................................ 24

4.14. Material Accounting .......................................................................................................... 25

4.15. Sales of goods (works, services) ........................................................................................ 26

4.16. Inventory Audit .................................................................................................................. 26

4.17. Uninstalled Equipment Revaluation by Index Method ...................................................... 26

4.18. Forms of Strict Accounting ................................................................................................. 27

4.19. Alternative chart of accounts ............................................................................................ 28

4.20. Electronic VAT invoice ....................................................................................................... 28

4.21. Displaying of a short/long Company code description in printing forms .......................... 30



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1. Introduction

1.1. Project Goals

The goal of this project is to implement the typical business processes supported by the output forms according to the legal requirements of the Republic of Belarus.

1.2. Project Scope

SAP ERP, localization extension 1.0 by EPAM for Republic of Belarus, hereinafter referred to as

Belarus localization package, is a set of solutions that enables you to use the standard FI and LO SAP ERP

6.0 functionality in Belarus. The project scope includes the following business processes:

Business Process Output Forms Comments

FI, LO: Customizing Sample of Belarusian Company Samples of

Company Code, Purchasing and Sales Organizations, Plant with typical Belarusian settings

Chart of Accounts with automatic postings Ministry of Finance of Belarus Regulation of 29.06.2011 №50

Tax related settings (tax scheme TAXBY, condition types, operation keys, tax codes, T007K, T007L tables settings, RVAABY pricing procedure for SD module and etc.)

VAT: Tax Code of the Republic of Belarus (Chapter 12)

FI: Accounting Cash Journal business transactions КО-1 "Cash Receipt Voucher" National Bank of

Belarus decision of 29.03.2011 № 107

КО-1в "Cash Receipt Voucher"

КО-2 "Cash Expense Voucher"

КО-2в "Cash Expense Voucher"

Cash Voucher Register National Bank of Belarus decision of 29.03.2011 № 107

Cash Journal

Bank Transactions Payment Order, Form 0401600036

National Bank of Belarus decision of 19.11.2012 № 583 Payment Request, Form

0401890033

Revaluation of open items in foreign currency

Reclassification of accounts receivable and

accounts payable

Reconciliation Statements Customer Reconciliation Statement



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Vendor Reconciliation Statement

FA (Fixed Assets), IA (Intangible Assets) accounting

Form HA-1. Capitalization and Retirement Record of Intangible Assets

Form HA-2. Intangible Assets Inventory Card

Form OC-1. Capitalization and Retirement Record of Fixed Assets

Form OC-2. Internal Transfer Record of Fixed Assets

Form OC-3. Repairs and Improvements Record of Fixed Assets

Form OC-4. Scrapping Record of Fixed Assets

Form OC-6. Fixed Assets Inventory Card

Fixed Asset Turnover Balance Sheet

Statement of the Fixed Asset Turnover

FA Precious Metals Accounting Form OС-1. Capitalization and Retirement Record of Fixed Assets

Form OС-4. Scrapping Record of Fixed Assets

Form OС-6. Fixed Assets Inventory Card

FA Inventory Physical Inventory List of Fixed Assets

Difference List of Assets

FA Revaluation FA Revaluation Record

FA Revaluation List

Appendix to FA Revaluation list

Offsetting Accounts Determination

VAT Accounting Purchase Ledger

Ministry of Finance of Belarus Regulation of 24.12.2014 № 42

VAT Return

Tax Accounting and Reporting Investment Bonus Accrual in Tax Accounting

Investment Bonus Recovery in Tax Accounting

Accounting Reporting Balance Sheet (Form 1)



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Profit and Loss Statement (Form 2)


Statement of Changes in Stockholders' Equity (Form 3)

Cash Flow Statement (Form 4)

VAT electronic invoices Generation of outgoing EINV for operations with legal entities and individuals

Incoming EINV processing

Integration with AVEST company’s libraries of electronic digital signature

Possibility of invoices administration: status filtration, error messages on sending overview, recurring sending

Automatic comparison of incoming E-invoices and FI documents in the system

Automatic VAT taking over after comparison of incoming E-invoice and document in the system

LO: Logistic Material Accounting Receipt Voucher (form M-4)

Record of Material Acceptance (form M-7а)

Record of Internal Transfer of Goods (М-13п)

Inventory Control Card(M-12п)

Sales of goods and services Record of Acceptance Work/Service


Delivery Note (TН-2)

Transport Delivery Note (TTН-1)

Invoice for Advance Payments

Materials Inventory Physical Inventory List

Difference list of stock

Uninstalled Equipment Revaluation Uninstalled Equipment Revaluation Statement

Uninstalled Equipment Revaluation Results Record

Forms of Strict Accounting Receipts and Retirement Invoice


Card-Statement of Used Strict Accounting Forms

Scrapping Record of Used Strict Accounting Forms



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Strict Accounting Forms to be Destroyed Register

Scrapping Record of Spoiled/Canceled Strict Accounting Forms



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2. Enterprise Structure

The Belarus localization package includes Sample Organizational Units as example for a single legal entity - «Demo-Belarus» public limited company

Sample Organizational Units Code Company BY01

Company Code BY01

Controlling Area BY01

Purchasing organization BY01

Sales organization BY01

Plant BY01

2.1. Cost Centers

Cost Center Name

20BY010001 Department 1

25BY010001 Equipment repair/check-out shop

26BY010001 Administration

44BY010001 Sales department

2.2. Storage Locations

Storage Location Name

1000 Storage_Minsk1

2000 Storage_Minsk2

2.3. Sales Area

• Sales organization

Sales organization Name

BY01 «Demo-Belarus» public limited company

• Distribution channel

Distribution Channel Name

01 Direct sales

• Division

Division Name

00 Different divisions



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3. Master Data

3.1. Chart of Accounts

The Chart of Accounts is based on the Regulation of Ministry of Finance of Belarus of 29.06.2011 №50 and contains a minimum list of basic accounts sufficient to provide a standard business processes included in the scope of the project.

• Chart of Accounts

Chart of accounts Name

CABY Chart of Accounts (Belarus)

• List of Accounts (minimum list of basic accounts)

Account Name

1010000 Fixed assets

2010000 Depreciation of Fixed assets

2020000 Depreciation of Fixed assets posted on 03 account

3010000 Investment property

3020000 Financial lease objects (leasing)

3030000 Other income-bearing investments in tangible assets

4010000 Intangible assets

4020000 Intangible assets, taken for a fee / free

5010000 Depreciation of Intangible assets

6010000 Long-term financial investments in capital issues

6020000 Long-term loans

6030000 Contributions by the joint activity agreement

7010000 Equipment to be installed in stock

7020000 Equipment to be installed passed in assembling

7030000 Construction materials

7810000 Technical account of uninstalled equipment revaluation

8010000 Acquisition and creation of fixed assets

8020000 Acquisition and creation of investment property

8030000 Acquisition of financial rent objects (leasing)

8040000 Acquisition and creation of intangible assets

8050000 Acquisition and creation of other long-term assets

10010000 Raw materials

10020000 Purchased semi-finished products and components

10030000 Fuel

10040000 Containers and packing materials

10050000 Spare parts

10060000 Other materials



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10070000 Materials transferred in processing on side

10080000 Temporary constructions

10090000 Household equipment and housewares, tools

10100000 Special rigging and working clothes in stock

10110000 Special rigging and working clothes in operation

10120000 Waste and scrap containing precious metals

15010000 Inward movement / invoice receipt clearing account – materials

15020000 Inward movement / invoice receipt clearing account – goods

18010000 VAT on purchased goods, works and services

20000000 Production

21000000 Semi-finished products of own production

22000000 Insurance payments

23000000 Auxiliary production

23080000 Capital investment

25000000 Production overheads

26000000 Non-production (administrative) overheads

28000000 Spoilt production

29000000 Service plants and facilities

31070000 Equipment for installation

34000200 Depreciation of buildings and equipment

34000800 Depreciation of intangible assets

34000900 Unplanned depreciation (adjust amounts)

35000900 Rental payment

35140100 Cost of construction and installation works on capital construction in progress

35140200 Cost revaluation amounts of construction in progress

35999999 Transfer posting CO->FI

41010000 Goods in warehouses

41020000 Retail goods

41030000 Containers for goods and empties

41040000 Purchased items

41050000 Goods transferred to prepare on side

41060000 Rental items

42000000 Trading margin

43000000 Finished goods

44000000 Commercial expenses

45000000 Delivered goods

50010100 Cash account (national currency of the Republic of Belarus)

50010200 Cash account (EUR currency)

50010300 Cash account (USD currency)

50010400 Cash account (RUB currency)



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51010000 Current bank account 1

51010001 Current bank account 1: outgoing payments

51010009 Current bank account 1: receipts

52010000 Foreign currency account 1(USD)

52010001 Foreign currency account 1: outgoing payment

52010009 Foreign currency account 1: receipts

52011000 Foreign currency account 2(EUR)

52011100 Foreign currency account 3(RUB)

55010000 Deposit account

55020000 Account in precious metals

55030000 Special Account of earmarked funds

55030100 Letter of credit

55030200 Other Special Accounts

57010000 Collected funds

57020000 Funds for foreign currency acquisition

57030000 Funds in foreign currencies for realization

57040000 Cash in transit

58010000 Short-term investments in securities

58020000 Provided short-term loans

59000000 Reserves for short-term investments devaluation

60001100 Settlements with suppliers and contractors

60001110 Receiving account for vendor with debit balance

60001111 Receiving account for vendor with debit balance and remaining maturity >12m

60001199 Correcting account for vendor

62001100 Settlements with purchasers and clients

62001110 Receiving account for customer with credit balance

62001111 Receiving account for customer with credit balance and remaining maturity >12m

62001199 Correcting account for customer

63000000 Reserves on doubtful debts

65000000 Deferred tax liability

66010000 Settlements of short-term credits

66020000 Settlements of short-term loans

66030000 Settlements of interest on short-term credits and loans

67010000 Settlements of long-term credits

67020000 Settlements of long-term loans

67030000 Settlements of interest on long-term credits and loans

68010100 Property tax

68010200 Land tax

68020100 VAT payable

68020200 VAT receivable



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68020300 VAT to be paid to the budget

68020400 Output VAT 0% on Goods/Services Sold

68030100 Income tax

68040100 Income tax settlements

68050100 Other payments to the budget settlements

68058000 VAT due to country of consumption

69010000 Social insurance settlements

70000000 Staff salary settlements

70010000 Salary

70020000 Wage deduction

71010000 Business trip settlements with employees

71020000 Administrative expenses settlements with employees

73010000 Settlements in respect of loans granted

73020000 Damages awarded settlements

73030000 Goods sold on credit settlements

75010000 Payments under capital stock deposit

75020000 Payment of dividends and other income settlements

76010000 Executive documents settlements

76020000 Property and personal insurance settlements

76030000 Settlements of claims

76040000 Settlements in respect of dividends and other income due

76050000 Settlements in respect of deposited amounts

76060000 Settlements under agreement on the fiduciary management of assets

76070000 Disposal group settlements

76080000 VAT on services from non-residence juridical person

77000000 Settlements of direct insurance and reinsurance

79000000 Intra-organizational settlements

80000000 Joint stock

80010000 Joint stock (ordinary stock)

80020000 Increase in joint stock – others

80030000 Increase in joint stock – additional offering

80040000 Change in joint stock: company reorganization

81000000 Common stocks (equity stake in capital stock)

82000000 Reserved funds

83000000 Additional funds

83010100 Additional fund in the part of contributed capital from fixed assets costs

83010800 Additional fund in the part of contributed capital from assets & constructions costs

84000000 Retained earnings (Net Loss)

84030100 Retained earnings + Net Loss - Net Profit

86000000 Public funding



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90010000 Sales

90010001 VAT revenue

90020000 Output VAT

90030000 Other taxes and fees from revenue

90040000 Cost of goods/services sold

90050000 Administrative overhead

90060000 Selling Expenses

90070000 Other incomes from current activity

90080000 VAT on other incomes from current activities

90090000 Other taxes and fees from current activities

90100000 Other expenses from current activity

90110000 Profit/loss from current activity

91010000 Other incomes

91010100 Income from Fixed Asset sales

91010108 Change in value of investment assets - revaluation, depreciation

91010200 Exchange rate differences. Income

91020000 VAT from other income

91030000 Other taxes and fees from other income

91040000 Other expenses

91040100 Costs of sales and other fixed assets and intangible assets retirement

91040108 Change in value of investment assets - revaluation, depreciation

91040113 Profit/loss of last years, elicited in reporting period

91040200 Exchange rate differences. Expense

91050000 Balance of other income and expenses

91080100 Inventory differentials(positive difference)

93000000 Insurance amounts (premiums)

94020000 Inventory shrinkage

96000000 Reserves for payments

97000000 Prepayments and accrued income

98000000 Accrued expense and deferred income

98020000 Uncompensated receipts

99000000 Profit and loss

99010100 Profit tax

Z0000000 Technical non-balance sheet account (Z-accounts)

Z0010000 Fixed assets in rent

Z0020000 Goods in Safekeeping

Z0030000 Materials received for processing

Z0040000 Materials on commission

Z0050000 Equipment received for assembly

Z0060000 Strict accounting forms



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Z0070000 Written-off bad debt from customers

Z0080000 Securities for liabilities and payments received

Z0090000 Securities for liabilities and payments received made

Z0110000 Leased-out fixed assets

Z0140000 Loss of fixed assets value

Z0160000 Immovable property situated in a joint house

Z0170000 Personalized privatization vouchers "Property"



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4. Business Processes

The following section describes the business processes involved in the preparation of output forms according to the Belarusian legislation.

4.1. Cash Journal

The cash journal functionality used to control cash payments and receipts. Cash accounting is based on standard SAP ERP 6.0.

With this functionality, you can:

• Create a separate cash journal in every currency

• Keep several cash journals for every company code

• Define cash journal business transactions

• Post documents on General Ledger accounts, Accounts receivable and Accounts payable (entry, saving and posting cash journal entries);

The following output forms are delivered in accordance with the Republic of Belarus legislation, as part of the standard Cash Journal process on the basis of standard documents input tool (transaction FBCJ):

Form name Approved by Form type

КО-1 "Cash Receipt Voucher" according to Appendix 1

Ministry of Finance of Belarus Regulation of 29.03.2010 №38

Smart-form

КО-1в "Cash Receipt Voucher" according to Appendix 2

Smart-form

КО-2 "Cash Expense Voucher" according to Appendix 3

Smart-form

КО-2в "Cash Expense Voucher" according to Appendix 4

Smart-form

Cash Voucher Register National bank of Belarus decision of 29.03.2011 № 107

PDF-document

Cash Journal PDF-document

You can customize currency names in the maintenance transaction /CBY/SPELL_CURR to have correct amounts in words in cash forms.

The transaction allows you to specify currency names in singular and plural for definite cases, both for basic unit and for fractional part of the currency (decimal unit).

4.2. Payment Transactions

Payment transactions functionality is used to process local and international payments with customers and vendors. It’s based on Automatic Payment Transaction (standard transaction F110).

In the localization package, you can find the following output forms developed according to Belarusian legislation to support outgoing payments and payment requests processes:



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Payment Order,

Form 0401600036 National bank of Belarus decision of 19.11.2012 № 583

PDF-document

Payment Request,

Form 0401890033 PDF-document

These forms are created by the Automatic Payment Transaction with spool-request printing. This program allows users to specify for each country, special payment methods, payment forms or data medium exchange payment specifications. You must make the relevant settings in the system for running Automatic Payment Transaction correctly.

The Belarus localization package includes standard Automatic Payment Transaction customizing with the following three payment methods:

Payment method Description

P Payment order in local currency

T Payment request

U Payment order in foreign currency

4.3. Revaluation of Open Items in Foreign Currency

If you post liabilities in foreign currency, it is necessary that you evaluate them in local currency (Belarusian rubles) at the end of the posting period.

You can use the standard transaction FAGL_FC_VAL «Foreign currency valuation» for currency revaluation. With this transaction, you can reevaluate the following:

• Balances of GL accounts in foreign currency; • Open items of customers, vendors and GL accounts in foreign currency (line items are

valuated).

Transaction FAGL_FC_VAL allows you to run revaluation with exchange rates on the given date. The program calculates exchange rate differences for all vendor/customer and foreign currency balance sheet account open items posted before the valuation date. It also generates a document with postings of positive or negative exchange rate differences on accounts (91) on one side and for correcting account - on the other. Correcting account is technical and is used only to valuate liabilities in foreign currency.

The following accounts are customized in Belarus localization package for exchange rate differences:

GL account Correcting account Expense account Revenue account

60001100 60001199 91040200 91010200

62001100 62001199 91040200 91010200



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4.4. Reconciliation Statements

Customer Reconciliation Statement and Vendor Reconciliation Statement are developed in Localization package for Belarus for confirmation debts or its absence in settlement of accounts between partners at specified date (transactions /CBY/ASK, /CBY/ASD).

Form name Approved by Form type Customer Reconciliation Statement (transaction /CBY/ASD)


EXCEL-form

Vendor Reconciliation Statement (transaction /CBY/ASK)


EXCEL-form

BADI: /CBY/BADI_ASD is activated in transactions CBY/ASK, /CBY/ASD for changing data output in forms.

4.5. Reclassification of Accounts Receivable and Payable

For accounts receivable and accounts payable, you can use the standard transaction FAGLF101

for reclassification on maturity as well as receivables of vendors (payables of customers)

For standard SAP period split, the following adjustment accounts are customized:

Period Splits Reconciliation Account Correcting Account Target Account

Receivable less than 1 year

60001100 60001199 60001110

Receivable more than 1 year

60001100 60001199 60001111

62001100 62001199 62001111

Payable less than 1 year

62001100 62001199 62001110

Liabilities with remaining maturity 1-5 years and Liabilities with remaining maturity more than 5 years:

60001100 60001199 60001111

62001100 62001199 62001111

4.6. Fixed Assets and Intangible Assets Accounting

Fixed assets and intangible assets accounting functionality is a part of the standard Asset Accounting (FI-AA) component. It covers the most important laws and business practices specific to Belarus. In accordance with the Republic of Belarus legislation, the following output forms were developed:

• Form OC-1:Capitalization and Retirement Record of Fixed Assets

• Form OC-2:Internal Transfer Record of Fixed Assets

• Form OC-4:Scrapping Record of Fixed Assets

• Form OC-6:Fixed Assets Inventory Card

• Form OC-3:Repairs and Improvements Record of Fixed Assets

• Form HA-1:Capitalization and Retirement Record of Intangible Assets

• Form HA-2:Intangible Assets Inventory Card

• Fixed Asset turnover balance sheet

• Statement of the Fixed Asset turnover



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The following processes are covered with the localization package:

• FA acquisition

If in case when the purchased assets are Fixed Asset objects, the accountant prepares the following output form (transaction /CBY/INCOME_FOS):



Ministry of Finance of Belarus Regulation of 22.04.2011№23

PDF-document

BADI: /CBY/BADI_FOS_INCOME is activated in transaction /CBY/INCOME_FOS for changing data output in forms.

• IA accounting and inventory

For intangible asset acquisition and inventory, you can use specific legal output forms (transaction /CBY/IA_ACQUISITION), such as the following:


Form HA-1. Capitalization and Retirement Record of Intangible Assets


PDF-document


PDF-document

BADI: /CBY/BADI_ACQUISITION is activated in transaction /CBY/IA_ACQUISITION for changing data output in forms.

• FA transfer

In case of FA intercompany transfer the accountant does changes in time-dependent data in asset master record and then creates the following output form (transaction /CBY/MOVE_FOS):


Form OC-2. Internal Transfer Record of Fixed Assets

PDF-document

• FA scrapping

In case of FA scrapping, the accountant posts accounting document and creates the following output form (transaction /CBY/LEAVE_FOS):




PDF-document

BADI: /CBY/BADI_LEAVE_FOS is activated in transaction /CBY/LEAVE_FOS for changing data output in forms.

• FA inventory card



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You can show all the necessary information about FA object at all times in the following output form (transaction /CBY/OS6):



PDF-document

BADI: /CBY/BADI_OS6 is activated in transaction /CBY/OS6 for changing data output in forms.

• FA modernization and reconstruction

In case of FA modernization and reconstruction, the accountant makes settlements with investment order and then can create the following output form (transaction /CBY/REPAIR_FOS):


Form OC-3. Repairs and Improvements Record of Fixed Assets


PDF-document

Prerequisites for Form OC-3 generation is internal order processed in SAP.

Fixed Asset turnover balance sheet: This report displays asset acquisition value, posted depreciation, net book value of fixed assets at the beginning and at the end of the posting period, debit and credit turnovers and other values.

Statement of the Fixed Asset turnover. This report displays object movements for the posting period. Movements are classified by operations (acquisition/expenditure) and by transaction types. The report displays data from time-dependent tab (materially-responsible person, cost center, location, etc.) on the date of movement. Also, it is possible to obtain information such as document movement number, initial fixed asset, and other additional information from the FA master data record.

4.7. Precious Metals Accounting

Precious metals accounting functionality is a part of the standard SAP ERP 6.0 Asset Accounting (FI-AA) component. It covers legal requirements regarding precious metals specific to Belarus.

Based on SAP note 1871038, perform the following tasks for field activation:

Step 1: Add data maintenance tables for Belarus (BY):

In the view V_GLOFAACNTRL, add the tables

GLO_S_RUS_GNRLTD and GLO_S_RUS_GNRLTI.

Step 2: Activate the table data for Belarus.

Once you activate the data, you can access the fields of precious metals and codes of All-Russian

Classifier of Fixed Assets maintenance.

Step 3: Fill the precious metals handbook

You can customize the handbook maintenance through the following activity:

Financial Accounting (New)\Asset Accounting (New)\Master Data\Country-Specific Functions\Russia\Define Precious Materials for Asset Master Data Maintenance.

Step 4: Fill precious metals information in FA master data records. Data maintenance is performed in assets creation/change functionality

Data with precious metals are displayed in the following output forms:



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PDF-document


PDF-document


PDF-document

4.8. FA Inventory

Transaction /СВY/INVAA was developed in the Belarusian localization package for FA inventory

Inventory transaction /СВY/INVAA is based on FA data selection and processing. Before the inventory, necessary data are collected for inventory report. The following FA data are used for accounting:

• FA number,

• FA sub-number,

• FA name and brief description,

• FA inventory number,

• FA class,

• Quantity,

• Cost

According to the inventory results, the responsible accountant will enter the actual data.

The development is implemented in /CBY/INVENTORY_PRINT report, executed by transaction /CBY/INVENTORY_PRINT, output runs in PDF-forms, depending on the selected option of FA type.

The Inventory checklist printing is provided by transaction /CBY/INVAA_PRINT and output runs in the following PDF-forms.


Physical Inventory List of Fixed Assets (1-inv), (2-inv)


PDF-document

Difference list of assets (Form 401)

PDF-document

BADI: /CBY/BADI_INVENTORY_PRINT is activated in transaction /CBY/INVENTORY_PRINT for changing data output in forms.

4.9. FA Revaluation by Index Method

You can use transaction /CBY/REVALUATION from Belarusian localization package for FA revaluation by index method in accordance with the Republic of Belarus legislation. The transaction performs data calculation, revaluation amounts posting on accounts, and printed forms output. Before executing the transaction, you should make sure that all FA operations have been entered into the system, all periodic postings have been done, and revaluation index tables have been filled.

Also, before running the transaction, you should enter “OKOF Code” in the asset master record (tab “Country-Specific”. OKOF code values are linked to revaluation indexes.



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The program generates postings with the following movement types, which are specified in settings:

• BZ3- movement type to reflect the revaluation (increase)

• BY4 - movement type to reflect the revaluation (decrease)

• BY3 - movement type to reflect the revaluation on account 91 (increase)

• BY4 - movement type to reflect the revaluation on account 91 (decrease)


FA revaluation record Decree of Economic, Finance, Architecture and Construction Ministry of the Republic of Belarus of 5.11.2010 № 162/131/37

PDF-document

FA revaluation list Smart-form

Additional depreciation area 99 “Revaluation” was created to show revaluation by every asset.

Note:

Depreciation area 99 is created for acquisition cost revaluation and depreciation accounting. Such accounting is required for calculation and amounts revaluation, through the fund or earnings in accordance with the Republic of Belarus legislation.

During the implementation period, it is required to set up FA movement types, FA/AUC acquisition chart to exclude depreciation area 99 from capitalization amount posting.

4.10. Offsetting Account Determination

Offsetting account determination is based on standard SAP ERP 6.0 solution. Offsetting account determination is the process of breaking down all accounting documents so that each debit posting is matched to exactly one credit posting, and vice versa.

Offsetting Account Determination can be executed manually (transaction J3RKKRD) or automatically (J3RKKRS). Using Offsetting Account Determination, you can run different reports.

The following are the offsetting account determination list of transactions:

Transaction Description

J3RKGLK General Ledger Report

J3RKKRD Determine Offsetting Accounts

J3RKKRL Account Balances, LC (local currency)

J3RKKRS Automatic Account Determination

J3RKKVL Accounts Balances, FC (foreign currency)

J3RKNID Unprocessed Accounting Documents

J3RKOBS Account Balance Comparison

J3RKOBX Account Balance Comparison with Account Grouping



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4.11. VAT Accounting

VAT accounting is based on standard SAP ERP 6.0 solution. Reports "Ledger" and "VAT Return" (transactions /CBY/PURBOOK and /CBY/TAXVAT), VAT return downloading in XML format were developed in accordance with the legislation of Belarus.

Country specific tax scheme TAXBY is implemented to cover requirements of Chapter 12 of Tax Code of Belarus.

The following VAT codes are created:

• Input VAT

VAT code Description Account

O1 10% VAT for deduction on FA, IA in Belarus 68020200

P0 VAT free on purchased goods in Belarus 18010000

P1 10% VAT on purchased goods in Belarus 18010000

P2 20% VAT on purchased goods/services in Belarus 18010000

P3 20% VAT on purchased fixed assets, intangible assets 18010000

PA 10% VAT for deduction on goods/services in Belarus 68020200

PB 20% VAT for deduction on goods/services in Belarus 68020200

PC 20% VAT for deduction on fixed assets, intangible assets in Belarus

68020200

PK 0% VAT - confirmed export in CU (Kazakhstan) 68020400

PR 0% VAT - confirmed export in CU (Russia) 68020400

T0 Supplier 0% input VAT for import 18010000

T1 10% VAT on importation into the customs territory 18010000

T2 20% VAT input tax (import within not CU countries) 18010000

TA 10% VAT – withholding on customs (out CU) 68020200

TB 20% VAT withholding on customs (out CU) 68020200

R0 VAT free on importation from Russia 18010000

R1 10% VAT on importation from Russia 18010000

R2 20% VAT on importation from Russia 18010000

RA 10% VAT for deduction on importation from Russia 68020200

RB 20% VAT for deduction on importation from Russia 68020200

K0 VAT free on importation from Kazakhstan 18010000

K1 10% VAT on importation from Kazakhstan 18010000

K2 20% VAT on importation from Kazakhstan 18010000

KA 10% VAT for deduction on importation from Kazakhstan 68020200



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KB 20% VAT for deduction on importation from Kazakhstan 68020200

N1 Input 20% VAT for non-resident services 18010000

N2 Withholding of input 20% VAT for non-resident 68020200

• Output VAT

VAT code Description MWS

B0 0% VAT export from Customs union 68020100

B1 10% VAT realization in Belarus 68020100

B2 20% VAT realization in Belarus 68020100

B3 VAT free realization outside Belarus 68020100

B4 0% VAT - confirmed export for Belarus custom union 68020400

B5 20% VAT- do not confirmed export for custom union 68020100

BК 0% VAT 0% export to Kazakhstan 68020100

BN 20% VAT – output tax for tax payee 68020100

BR 0% VAT export to Russia 68020100

BX VAT at the rate of 16.67% 68020100

BY VAT at the rate of 9.09% 68020100

BZ VAT free operations 68020100

NK 20% VAT – do not confirmed export in CU (Kazakhstan) 68020100

NR 20% VAT – do not confirmed export in CU (Russia) 68020100

• Technical VAT codes for non-taxable operations:

VAT code Description

Y0 Technical code of nontaxable output VAT

Z0 Technical code of nontaxable input VAT

The prerequisite for VAT reporting is transfer of deferred taxes. The program J_3RFUM26 generates documents of deferred taxes transfer. J_3RFUM26 is the part of VAT accounting solution for Russian Country Version.

The following reports are the final documents of VAT accounting process:

Form name Approved by Form type Purchase Ledger (/CBY/PURBOOK transaction)

Decree of the Republic of Belarus Ministry of Taxes and Duties № 42 of 24.12.2014

PDF-document



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VAT return (/CBY/TAXVAT, J3RXMLEXP, J3RTAXREP transaction)

Decree of the Republic of Belarus Ministry of Taxes and Duties № 42 of 24.12.2014

PDF-document

4.12. Profit Tax Accounting

In accordance with the Belarusian tax legislation payers have a right to use the investment deduction for profit tax.

Investment deduction is the amount calculated from fixed assets primary cost and allocated to expenses in tax accounting (and not reflected into accounting).

Three additional accounting areas were created to take investment bonus into account for profit tax.

Collection and accumulation of primary documents for profit tax purposes is recorded in the system in a separate Non-Leading General Ledger named ‘NT’.

Primary tax accounting documents appears in NT ledger as a result of postings in SAP ERP 6.0 modules, or as a result of entering correcting document directly in NT ledger. The Ledger group defines a rule of posting documents in the NT ledger. If no group is specified, the data comes in all ledgers.

Depreciation area Comments 20 Tax accounting The depreciation area for fixed asset valuation in accordance with

tax accounting rules. Currently it is identical to depreciation area 01 in accordance with the Belarusian legislation requirements.

22 Tax differences The mathematical difference between 01 and 20 depreciation areas.

25 Investment deduction The depreciation area for investment bonus accounting. In this area, acquisition value is capitalized, but ordinary depreciation is not accrued. Investment bonus is planned as "Special depreciation". Depreciation area is calculated (without postings). Postings on accounts in NT ledger are realized in batch input mode in transaction of accruals.

For investment deduction, you can use the accrual transaction /CBY/INVESTBONUS - Investment bonus.

The following movement types are customized to register investment deduction that is accrued from business transactions.

• Business transactions «Acquisitions of last year less than null» - movement type BY6 «SpecDepr manually ExternalReserve by DeprCode»

• Business transactions «Acquisitions of current year less than null» - movement type BY7 «SpecDepr manually NewAcquis by DeprCode»

• Business transactions «Acquisitions of last year more than null» - movement type BY8 «SpecDepr manually ExternalReserve by DeprCode+»

• Business transactions «Acquisitions of current year more than null» - movement type BY9 «SpecDepr manually NewAcquis by DeprCode+»

According to the current Belarus legislation, in some cases, it is determined that during fixed assets retirement with revenue (sale) up to 3 years from the start-up date, you are required to restore previously accrued investment bonus.

To recover investment bonus, you can use the transaction /CBY/IV_RETIREMENT - Investment retirement.



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The accrued investment deductions will be posted on the relevant accounts.

4.13. Accounting Reports

Business transactions are posted on accounts that were created in accordance with the standard chart of accounts based on the Decree of the Ministry of Finance of Belarus on June 29, 2011 №50 (see Master data - Chart of Accounts). Based on accounts balance and turnover information, an accountant creates the following reports at the end of periods:

Form name Approved by Form type Form

Balance sheet (Form 1) BYF1 Decree of the Ministry of Finance of Belarus on 12.12.2016 № 104

EXCEL - form

Profit and loss statement (Form 2) BYF2 EXCEL - form

Statement of changes in stockholders' equity (Form 3)

BYF3 EXCEL - form

Cash Flow Statement (Form 4) BYF4

EXCEL - form

Form 1 Form 2 and Form 3 are generated by transaction F.01 with appropriate financial statement version.

Financial statement version BYF4 is created in Belarus localization package for Form 4 "Cash Flow Statement” using standard transaction J3RFF4V.

Hierarchical structure of basic accounts is used to create Form 4. For each hierarchy node, an account, a corresponding account, and accounts from invoice for payment document are specified.

Since BYF4 version customizing for Form 4 depends on the chart of accounts and business transactions, only general settings were customized in Belarus localization. During the report creation, additional settings (accounts assignment) should be made, based on used chart of accounts and reflection features of various operations.

Report Form 4 generation is carried out via transaction /CBY/FF4 with an appropriate financial statement selection.

Transaction /CBY/FF4 provides an error log with the following errors records:

• An error of correspondence determination occurs in cash flow document.

• Document with cash account was selected, but it is not included in any Financial statement report item.

• Document is taken into account twice or more times during report items creation. Check SAP GUI version information for Excel output forms correct filling.

The 64-bit version of Microsoft Office 2013 is supported as of patch level 7 of SAP GUI for Windows 7.30. Up to patch level 6 of SAP GUI for Windows 7.30, Desktop Office Integration only supports Microsoft Office 32-bit editions. For more information, see SAP Note 722513.

Transaction J3RXMLEXP perform downloading financial reports in XML format. For this aim the following hierarchies are maintained in transaction J3RTAXREP:

• BYBAL BY Balance Sheet

• BYPLR BY Profit and Loss Statement



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• BYCHC BY Statement of Changes in Stockholders' Equity

• BYCFS BY Cash Flow Statement

4.14. Material Accounting

The scope of the add-on in terms of material accounting does not include functionality for special stock materials accounting (Stock of material provided to vendor, Vendor consignment, Consignment stock at customer, returnable packaging stock at customer).

Purchases

The Purchasing process is based on the standard SAP ERP 6.0 functionality. The following steps describe a typical purchase flow:

1. The user registers the purchase order in the system, which was sent to vendor (transaction ME21N). If necessary, he corrects or complements the purchase order (transaction ME22N).

2. While receiving goods and materials, the storekeeper registers the receipts into the system (transaction MIGO) with the following output forms (transaction MB90):


Receipt Voucher (form M-4)

PDF-document

Record of Material Acceptance (form M-7а)

PDF-document

3. The system transfers a Signed order/act together with accompanying to goods and materials documents to the accounting department.

4. An accountant monitors and checks received documents and makes postings to accounts payable simultaneously with input VAT charge (transaction MIRO).

Materials movement and accounting

To register goods and materials movement and accounting operations, the standard SAP ERP 6.0 functionality is used. Goods and materials movement through departments is made by authorized storekeeper with materials movement document registration into the system (transaction MIGO) and the following output form creation (transaction MB90).


Record of Internal Transfer of Goods (М-13п)

PDF-document

At any time, information about goods and materials object can be entered in the report (transaction /CBY/MMCARD):


Inventory control card(M-12п)

PDF-document



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4.15. Sales of goods (works, services)

Sales process begins with sales order creation (transaction VA01). On the sales order header level, you can determine the statistical condition type in calculation schema. You can also determine the prepayment percentage. You can print a partial invoice based on the statistical invoice that is created. The output is performed using transaction - VF31:


Invoice (partial invoice) No approved standard forms PDF-document

Actual delivery and sale are reflected in the system by picking procedure, goods issue (transaction VL02N) and billing (transaction VF01). After outbound delivery creation and subsequent goods issue, the following output forms are created in the system:

Form Name Approved by Form Type

Transport Delivery Note (TTН-1)

Decree of Ministry of Finance of Belarus on 30.06.2016 №58

PDF-document

Delivery Note (TН-2) PDF-document

In case of sale of services, billing is done by salesman (transaction VF01 with Record of acceptance work/services output (transaction VF31).

Form Name Approved by Form Type

Record of acceptance work/service

No approved standard forms EXCEL - form

4.16. Inventory Audit

Before the actual inventory, an inventory document is created (transaction MI31). Information about actual assets availability is filled in the inventory document by authorized employees (transaction MI04). Identified differences during the inventory between the actual property availability and accounting data are reflected in Accounting & Reporting (transaction MI07). Output forms that are necessary for goods and materials inventory are printed using the transaction /CBY/INVENTORY.


Physical Inventory List Decree of Belarus Ministry of Finance of 30.11.2007 № 180

PDF-document

Difference list of stock PDF-document

Note that the scope of the add-on in terms of inventory audit does not include functionality for special stock materials accounting, such as, Stock of material provided to vendor, Vendor consignment, Consignment stock at customer, and returnable packaging stock at customer

4.17. Uninstalled Equipment Revaluation by Index Method

During the uninstalled equipment revaluation by index method, the relevant coefficient from ENAOF coefficients table is applied. Primary costs revaluation or devaluation of uninstalled equipment is determined as the difference between replacement cost and acquisition cost of uninstalled equipment



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taking into accounting before revaluation. Uninstalled equipment revaluation is based on report ”Stock Overview (Russia)” (transaction J3RFLVMOBVED).

Transaction /CBY/REVAL_EQUIPMENT (program: /CBY/REVAL_EQUIPMENT) is used for uninstalled equipment revaluation.


Uninstalled equipment revaluation statement

Decree of the Ministry of Economics of Belarus, The Ministry of Finance of Belarus and The Ministry of Architecture of Belarus and Construction of 05.11.2010 №162/131/37

EXCEL – form

Uninstalled equipment revaluation results record

EXCEL – form

Note that the scope of the add-on in terms of equipment revaluation by index method does not include functionality for special stock materials accounting, such as, Stock of material provided to vendor, Vendor consignment, Consignment stock at customer, and returnable packaging stock at customer

4.18. Forms of Strict Accounting

To improve usability, the interface is designed to process all forms of strict accounting operations in a single transaction - /CBY/MM_BSO. Forms of strict accounting are realized based on standard SAP functionality (serial numbers).

Together with forms of strict accounting movement postings on material accounts, they are posted on off-balance account with breakdown by form number – on the moment of strict accounting forms movement (delivery, retirement, etc.) postings are created on G/L account, as well as on off-balance account.

You can create two material master records for each type of strict accounting form. The first one is for material accounting on balance accounts. The second one is for accounting by serial numbers on off-balance account 006 from Chart of Accounts. To connect these pairs of material master records, as well as for types of movements determination that are involved in forms of strict accounting, /CBY/MM_BSO customizing table is used.

As part of the project, the following transactions for forms of strict accounting are implemented (transaction /CBY/MM_BSO):

• forms of strict accounting acquisition

• forms of strict accounting transfer to materially responsible person

• forms of strict accounting using (delivery)

• forms of strict accounting annulment

• forms of strict accounting deactivation (annul/spoiled)

• forms of strict accounting realization.

When you create forms of strict accounting creation, you can also print the following output forms into the system:


Receipts and Retirement Invoice

PDF-document



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Card-statement of used strict accounting forms

Decree of the Ministry of Finance of Belarus on 18.12.2008 № 196

PDF-document

Scrapping Record of used strict accounting forms

PDF-document

Strict accounting forms to be destroyed register

PDF-document

Scrapping Record of spoiled/canceled strict accounting forms

PDF-document

4.19. Alternative chart of accounts

There is an opportunity to use country-specific chart of accounts as an alternative chart of accounts. The following output forms enable alternative chart of accounts:

• КО-1 "Cash Receipt Voucher"

• КО-1в "Cash Receipt Voucher"

• КО-2 "Cash Expense Voucher"

• КО-2в "Cash Expense Voucher"

• Capitalization and Retirement Record of Fixed Assets (form OC-1)

• Fixed Assets Inventory Card (form OC-6)

• Capitalization and Retirement Record of Intangible Assets (form HA-1)

• Intangible Assets Inventory Card (form HA-2)

To display alternative chart of accounts in Cash Receipt Voucher and Cash Expense Voucher it is necessary to maintain additional settings. In the program /CBY/CASH_ORDER in the variant SAPB2 set a flag on «Print Alternative Accounts Nos»

4.20. Electronic VAT invoice

Starting from 1 July 2016, Belarus require the electronic invoicing of value added tax (VAT) as

introduced by the Law of the Republic of Belarus N 343-3 dated 30 December 2015, About introduction of amendments and additions to some laws of the Republic of Belarus with respect to the business activity and taxation. As of this date, it is insufficient to simply collect supporting documents to claim VAT deductions. In addition to the supporting documents, all Belarus VAT payers will be required to issue electronic VAT invoices (hereafter EINV) for each Vatable transaction (the sale of goods, or the provision of work or services).

The main aim of CBY EINV Localization solution is to automatize operations with EINV based on SAP ERP 6.0 system. CBY solution allows users to generate outgoing EINV based on sales operations to legal entities and individuals conducted through SD module or on the basis of FI document and send them to the Portal of the Ministry for Taxes and Levies of the Republic of Belarus (hereafter The Portal) (Pic.1) and to upload incoming EINV to SAP via the Portal with further determination of relevant FI document posted in SAP (Pic. 2). Solution also has an opportunity of considering customer’s individual characteristics. As part of this solution, integration with the Portal is implemented using components (libraries) ActiveX from AVEST with the usage of digital signature. Currently using libraries is the only official solution, which allow



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establishing a secure connection with the Portal, as well as to execute all the necessary commands (such as signing EINV, sending outgoing EINV, receiving incoming EINV getting EINV status etc.).

Pic.1 Outgoing EINV architecture solution in SAP

Pic.2 Incoming EINV architecture solution in SAP



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Electronic VAT invoice CBY solution includes:

• Customizing tables and directories for EINV.

• Transaction /CBY/REG - Generation and analysis of EINV.

• Transaction /CBY/REGINV – Electronic invoice journal.

The main function of /CBY/REG is generation of outgoing EINVs based on the selected FI documents. Basic functions of transaction /CBY/REGINV are:

1. Integration with AVEST company’s libraries via digital signature 2. Generation, editing, displaying of outgoing EINV 3. Sending outgoing EINV for operations with legal entities and with individuals 4. EINV fields filling control 5. Possibility of invoices administration: status filtration, error messages on sending overview,

recurring sending. 6. Uploading incoming EINV with further opportunity of determination relevant FI document and

acceptance of VAT deductions 7. Storing the sending statuses

4.21. Displaying of a short/long Company code description in printing forms

Belarus localization package provides settings for Company Code description output in printing

forms: - short Company Code description, - long Company Code description (with different options).

Settings for short/long Company Code description output are specified for the following transactions and relevant printing forms:

№ Transaction code Printing form

1 /CBY/IA_ACQUISITION Form HA-1. Capitalization and Retirement Record of Intangible Assets


2 /CBY/INCOME_FOS Form OC-1. Capitalization and Retirement Record of Fixed Assets

3 /CBY/LEAVE_FOS Form OC-1. Capitalization and Retirement Record of Fixed Assets


4 /CBY/OS6 Form OC-6. Fixed Assets Inventory Card

5 /CBY/INVENTORY_PRINT Form 1-inv. Physical Inventory List of Fixed Assets

Form 2-inv. Physical Inventory List of Intangible Assets

6 /CBY/ASK Vendor Reconciliation Statement

7 /CBY/ASD Customer Reconciliation Statement



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Company Code description output layout customizing could be maintained in the table /CBY/MAIN_SET. There are several options of pre-configured layouts, which could be specified while output format creation:

№ Layout code

Layout description Table

1 SHNAM Short description T001- BUTXT

2 FNAM1 Full description (NAME1) ADRC-NAME1

3 FNAM2 Full description (NAME1+ NAME2) ADRC-NAME1 + ADRC-NAME2

4 FNAM3 Full description (NAME1+ NAME2+ NAME3)

ADRC-NAME1 + ADRC-NAME2 + ADRC-NAME3

5 FNAM4 Full description (NAME1+ NAME2+ NAME3 + NAME4)

ADRC-NAME1 + ADRC-NAME2 + ADRC-NAME3 + ADRC-NAME4

To display Company Code name in printing forms in the required format, select created format in the

selection screen of the corresponding transaction in the "Additional parameters" section. If the format on selection screen is not specified, Company code description will be taken from international version of address data for Russian language. In case of international version for the Russian language absence, description will be taken from the main address data.