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0% found this document useful (0 votes)
225 views22 pages

Sap Erp Slides

Sap

Uploaded by

sanaameer51
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SAP ERP

For ICMAP, ACCA, CA, MS Accounting & Finance,


M. Com, BS Accounting & Finance, B. Com (Hons)
Associate Degree in Commerce (ADC),
Associate Degree in Accounting and Finance (ADAF)
And Professional Accountants & Management

Salaih Muhammad (FCA, PMP)


FPFA, MSc Statistics, MSc Economics,
MA Arabic, MA Islamic Studies
Project Management Professional (PMP)
Oracle Certified Professional (OCP)
Oracle Certified Expert (OCE)
SAP Certified Professional
+92 300 4428421 |321 8211734
Email: [email protected]

SALAIH MUHAMMAD (FCA) 1


SAP ERP

Contents
About Author ........................................................................................................................................ 4
PROFILE SUMMARY ............................................................................................................................. 5
BASIC OVERVIEW.................................................................................................................................... 7
1. Enterprise Resources Planning (ERP) ............................................................................................. 7
1.1 Types of ERP. .......................................................................................................................... 7
1.2 Types of ERP Consultants ....................................................................................................... 7
1.3 Major ERP’s:............................................................................................................................ 8
1.4 ERP Share in Market ............................................................................................................... 8
1.5 Basic Function of ERP: ............................................................................................................ 8
1.6 SAP Meaning........................................................................................................................... 8
1.6.1 Comparison Between SAP, Oracle and Microsoft Dynamics ........................................ 9
2. SAP ERP Implementation Phases/ System Development Life Cycle of ERP (SDLC) ................... 10
2.1 Current Business Process/ Investigation stage Review ...................................................... 10
2.2 Solution Design Document/ Proposed Solution.................................................................. 14
2.3 Gap Analysis ......................................................................................................................... 14
2.4 Development Phase/ Configuration of Development Server ............................................. 14
2.5 User Training ........................................................................................................................ 15
2.6 Testing Phase/ Configuration of Test Server ....................................................................... 15
2.7 Conference Room Pilot (CRP) Session ................................................................................. 15
2.8 Production Phase/ Go Live Production................................................................................ 15
2.9 Post Live Support .................................................................................................................. 15
3. The Accounting Information System ........................................................................................... 15
3.1 AIS subsystems: .................................................................................................................... 16
3.1.1 Transaction Processing System .................................................................................... 16
3.1.2 General Ledger/Financial Reporting Systems ............................................................. 16
3.1.3 Management Reporting System .................................................................................. 16
3.2 Salient Features of Computerized Accounting .................................................................... 16
3.3 The Accounting System ........................................................................................................ 16
3.4 Information System .............................................................................................................. 17
3.5 Information System Framework .......................................................................................... 17

SALAIH MUHAMMAD (FCA) 2


SAP ERP
3.6 Types of Information System Framework ........................................................................... 17
3.6.1 Transaction: .................................................................................................................. 17
3.6.1.1 Financial Transaction: .................................................................................................. 18
3.6.1.2 Nonfinancial transactions: ........................................................................................... 18
3.7 Accountancy in ERP .............................................................................................................. 18
3.8 Definition of Accounting: ..................................................................................................... 18
3.9 Types of Accounting Information Users .............................................................................. 18
3.9.1 Internal users (Primary Users) ..................................................................................... 18
3.9.2 External users (Secondary Users) ................................................................................ 19
3.10 Type of ERP Accounting Information User .......................................................................... 19
3.11 Management Information System (MIS) ............................................................................. 20
3.12 Types of Management Information Systems ...................................................................... 20
3.13 The Benefits of SAP Business One ....................................................................................... 20
3.14 Types of Vouchers ................................................................................................................ 20
3.14.1 CASH PAYMENT VOUCHER – CPV ................................................................................ 21
3.14.2 CASH RECEIPT VOUCHER – CRV ................................................................................... 21
3.14.3 BANK PAYMENT VOUCHER – BPV ................................................................................ 21
3.14.4 BANK RECEIPT VOUCHER – BRV ................................................................................... 21
3.14.5 JOURNAL VOUCHER – JV .............................................................................................. 21
3.14.6 JOURNAL VOUCHER – JV .............................................................................................. 22

SALAIH MUHAMMAD (FCA) 3


SAP ERP

About Author
Mr. Salaih Muhammad is Co-Founder and Chief Executive Officer of RN
Technologies. He has more than 23 years of management and consulting experience
both in public and private sector international and local clients. Prior to Starting RNT,
Mr. Muhammad was the Chief Financial Officer at Noorain Group (Consist of Immi
Sports wears, Worlds Manufacturer, Bowel Manufacturers) exist his presence in USA,
France and UK, He also worked as Principal Consultant at Speridian Technologies (In
Asia and Gulf), in that role he led the organization in Gulf countries and Pakistan. He
has also worked in leading software as Country Head ERP at Ora Tech Systems. In
that role, he led Oracle for Ora Tech Systems in Pakistan to new heights and
introduced Oracle products and services in various emerging markets. He has also
worked as leadership positions at Mr. Denim (Apparel & Textile Industry) as Group
Manager Internal Audit, Rupali Group (Textile Industry) as Manager Internal Audit, Pak
Land Communications (Tele communication) as Deputy Manager Accounts &
Finance, Azeem & Company (A Chartered Accountant Firm) as Assistant Manager

Mr. Muhammad brings with him decades of experience in Managing Accounts, Audit
Departments and Developing IT business at a Global level. He has had the experience
of Managing number of operations across country and cultures.

Mr. Muhammad also vast of teaching experience in Pakistan’s Leading Institutes,


University of the Punjab (Hailey College of Commerce), Allama Iqbal Open University
(Prime College Campus Lahore), University of Central Punjab (UCP), University of
Lahore (UOL), Punjab Group of Colleges, Institute of Cost and Management
Accountant of Pakistan (ICMAP) Faisalabad and Lahore, Oracle University USA
(Lahore Campus Pakistan)

Mr. Muhammad holds a Chartered Accountancy degree from ICAP, Master degree in
Statistics & Arabic from University of the Punjab, Pakistan, Master degree Economics
and Islamic Studies from BZU Multan, Pakistan. Oracle Certified Professional from
Oracle University USA. In addition, he is the certified professional of SAP.

Zafar Iqbal Siddiqi


Ex-Director FBR, Pakistan
Ex-Director State Bank of Pakistan
Ex-Project Consultant World Bank (for Asia Pacific)

SALAIH MUHAMMAD (FCA) 4


SAP ERP
PROFILE SUMMARY
SALAIH MUHAMMAD (FCA)

GOLD MEDALIST
QUALIFICATION:
1. FCA Qualified in 2006
2. Project Management Professional (PMP)
3. FPFA Qualified in 2004
4. MSc Statistics from BZU Multan in 2001
5. MSc Economics from PU Lahore in 2003
6. MA Arabic from PU Lahore in 2005
7. MA Islamic Studies from BZU Multan in 2002
8. B.COM from PU Lahore in 1999
9. Oracle Certified Professional (OCP) from Oracle University USA in 2011
10. Oracle Certified Expert (OCE) from Oracle University USA in 2009
11. Oracle Certified Support Specialist from Oracle University USA in 2009
12. Oracle Certified Pre-Sale Specialist from Oracle University USA in 2009
13. SAP Certified Professional from SAP Germany in 2017
14. Project Management Professional (PMP)
EXPERIENCE:
1. 23 Years of Industry experience at Sr. Management and Managerial Level.
2. 15 Years of Teaching Experience
ORGANIZATION CURRENTLY SERVING:
1. University of the Punjab, Hailey College of Commerce Lahore Pakistan
2. Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan)
3. University of Lahore, School of Accountancy and Finance
4. Oracle University Lahore (Authorized Campus), Techno Ed Lahore.
5. Centre for Strategic Technologies and Excellence (CSTE) Authorized Centre
of Oracle University, and ACCA authorized Coaching Centre
ORGANIZATION SERVED:
1. University of Central Punjab (UCP)
2. Punjab Group of Colleges – Abdalian Campus Lahore
3. Allama Iqbal Open University (AIOU) – Prime College Campus Gulberg
Lahore
4. Noorain Resources, French Based Organization as Chief Financial Officer
(CFO)
5. Samad Group as Manager Financial Reporting

SALAIH MUHAMMAD (FCA) 5


SAP ERP
6. Speridian Technologies as Principal Consultant
7. Ora Tech Systems (Pvt) Ltd as Country Head ERP
8. Mr. Denim (Pvt) Ltd as Group Manager Internal Auditor
9. Rupali Group (Pvt) Ltd as Manager Accounts/ AM Internal Audit
10. Pak Land Communications (Pvt) Ltd as Deputy Manager Accounts & Finance
11. Azeem & Co (Chartered Accountant) as AM Audit
HONORS & ACHIEVEMENTS:
1. Gold Medal in “Introduction to Economics and Finance” from ICAP
2. Gold Medal in “Financial Accounting” from ICAP
3. 6 Certificates of Merit from ICAP for Scoring highest marks in different
subjects
4. Got 17 Medals in Athletics in District, Division and Provence Level
MAJOR SUBJECTS:
1. Oracle Financial Management
2. Business Mathematics
3. Management
4. CISA Audit
5. Auditing
6. SAP ERP Accounting
7. Oracle Supply Chain Management
8. Management Information Systems (MIS)
BOOKS PUBLISHED/ WRITE
1. Oracle Financial Management (Oracle EBS R12, Supply Chain and HRMS)
2. Management Information System (MIS) a study text for ICMAP students
3. Management Information System (MIS) a study MCQ’s for ICMAP students
4. SAP for ADC, ADAF, M. Com, B.com students and Professional Accountants
(CA, ACMA & ACCA professional & students)

SALAIH MUHAMMAD (FCA) 6


SAP ERP
BASIC OVERVIEW

1. Enterprise Resources Planning (ERP)

Enterprise resource planning (ERP) is business process management software that allows
an organization to use a system of integrated applications to manage the business and
automate many back-office functions related to technology, services and human resources.
“ERP stand Enterprise Resource and Planning”
“E” Enterprise, the entrepreneur who’s run business
“R” and that entrepreneur/ businessman utilized resources i.e., Human resources OR Capital
resources.
“P” and those businessmen plan as per both current resources and change plan as per own
thinking and current market position.

All individual and business use those technologies in manual system also, but we convert into
technologies that’s make the ERP software

1.1 Types of ERP.


There are two types of ERPs in market
i) Fully Automated ERP
ii) Semi-Automated ERP

1.2 Types of ERP Consultants


There are two types of ERPs Consultants
i) ERP Administrator
ERP Administrator ensures the reliable performance of ERP systems. Troubleshoots and
resolves any ERP related hardware, software, user access or other problems. Being an ERP
Administrator participates in projects to gather user requirements, design, configure, test and
implement ERP systems and applications.
ii) ERP Functional consultant
An ERP Functional consultant draws on organizational change management skills to help
in user adoption and acceptance of the project. ... Providing Training: In many projects,
the role of an ERP consultant is to help develop and deliver user training, ERP education
and support during the entire project – from selection to go-live

SALAIH MUHAMMAD (FCA) 7


SAP ERP
1.3 Major ERP’s:
Following Major ERPs in market:
➢ Oracle ERP Cloud
➢ SAP ERP
➢ Microsoft Dynamic GP
➢ Odoo
➢ NetSuit ERP
➢ Scoro ERP
➢ Business Cloud Essentials
➢ Sage Intact
➢ SYSPRO
➢ Epicor ERP
1.4 ERP Share in Market
The key players operating in the ERP Software market include ORACLE, SAP, Microsoft
Dynamic, Odoo, Sage, Tally, QuickBooks etc.

1.5 Basic Function of ERP:


Enterprise resource planning (ERP) is a method of using computer technology to link various
functions—such as:
1. Accounting
2. Inventory control, and
3. Human Resources (across an entire company).
ERP is intended to facilitate:
1. Information sharing,
2. Business planning, and
3. Decision making on an enterprise-wide basis

1.6 SAP Meaning

SAP stands for Systems Applications and Products in Data Processing. SAP, by definition, is
also the name of the ERP (Enterprise Resource Planning) software as well as the name of the
company. SAP system consists of a number of fully integrated modules, which covers virtually
every aspect of business management

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SAP ERP
1.6.1 Comparison Between SAP, Oracle and Microsoft Dynamics
Description SAP Oracle Microsoft Dynamics
ERP Packages ERP Packages

Market Share 24% 38% 11%

Rates of Being Short-listed 38% 42% 24%

Selection Rates When Short Listed 19% 36% 14%

Satisfaction Rates 39% 87% 33%

Implementation Duration 18 - 22 months 11 months 14 months

Percentage of customers who realize 47% 85% 54%


payback within one to three years

Percentage of Customers who Realized 49% 88% 57%


Payback in Less Than Three Years

Delta Between Planned Project Costs 8% ($19 million 15% ($1.4 million planned vs. 14% ($408,000 planned vs.
and Actual Project Costs planned vs. $28.6 $1.6 million actual) $464,000 actual)
million actual)

Percentage of Customers who Realized 47% 83% 76%


Less Than 60-percent of Anticipated
Business Benefits

Percentage of Customers who Realized 33% 67% 24%


More Than 60-percent of Anticipated
Business Benefits

SALAIH MUHAMMAD (FCA) 9


SAP ERP
2. SAP ERP Implementation Phases/ System Development Life Cycle
of ERP (SDLC)

Development Life Cycle consist of following phases:

2.1 Current Business Process/ Investigation stage Review


In this phase consultant can understand all current business processes and after
understanding this he will able to analysis what the client actually needs.
Here we review and explain purchase process for reference only

SALAIH MUHAMMAD (FCA) 10


SAP ERP

SALAIH MUHAMMAD (FCA) 11


SAP ERP

SALAIH MUHAMMAD (FCA) 12


SAP ERP

ACCOUNTS PAYABLE PROCESS FLOW

SALAIH MUHAMMAD (FCA) 13


SAP ERP
ACCOUNTS RECEIVABLE PROCESS FLOW

Other departments Current process will review and prepared document and
design process flow as well.

2.2 Solution Design Document/ Proposed Solution

The design phase up to the point of starting development, once all of the requirements have
been gathered, analysed, verified, and a design has been produced, we are ready to pass on
the programming requirements to the application programmers

2.3 Gap Analysis

User review the Current Business Process documents and Solution design document and
after that, if identify some gap between both documents the consultant may prepared Gap
analysis document with at least two workaround/ options (i.e. need process re-engineering
OR some customization/ modification in application), as a consultant you may try to process
re-engineering instead of customization/ modification in application

2.4 Development Phase/ Configuration of Development Server

The programmers take the design documents (programming requirements) and then
proceed with the iterative process of coding, testing, revising, and testing again

SALAIH MUHAMMAD (FCA) 14


SAP ERP
2.5 User Training

After Configuration of development Server, conduct the training of all user with current
use cases and after a sufficient training we may clone/ copy of development server
and that copy will handover to user for further testing.

2.6 Testing Phase/ Configuration of Test Server

After the programs have been tested by the programmers, they will be part of a series
of formal user and system tests. These are used to verify usability and functionality
from a user point of view, as well as to verify the functions of the application within a
larger framework

2.7 Conference Room Pilot (CRP) Session

When user satisfied as per specific time period after using the test server and they
enter most of its use cases in test environment, consultant conduct CRP session with
user and Management, the end user will test all test cases and after that run concern
reports and Management review, some time may we conduct more than one CRP (i.e.
CRP 1 and CRP2)

2.8 Production Phase/ Go Live Production

The final phase in the development life cycle is to go to production and become steady state.
As a prerequisite to going to production, the development team needs to provide
documentation. This usually consists of user training and operational procedures. The user
training familiarizes the users with the new application. The operational procedures
documentation enables Operations to take over responsibility for running the application on
an ongoing basis.

In production, the changes and enhancements are handled by a group (possibly the same
programming group) that performs the maintenance. At this point in the life cycle of the
application, changes are tightly controlled and must be rigorously tested before being
implemented into production

2.9 Post Live Support

After live the production server, client must need support from consultant because user not
fully aware about the new system, some clients may require support one month, some three
month and some may sign support contract for one year.

3. The Accounting Information System


AIS subsystems process financial transactions and nonfinancial transactions that directly
affect the processing of financial transactions. For example, changes to customers’ names
and addresses are processed by the AIS to keep the customer file current. Although not

SALAIH MUHAMMAD (FCA) 15


SAP ERP
technically financial transactions, these changes provide vital information for processing future
sales to the customer.

3.1 AIS subsystems:


The AIS is composed of three major subsystems:

➢ The transaction processing system (TPS)


➢ The general ledger/financial reporting system (GL/FRS) System
➢ The management reporting system (MRS)

3.1.1 Transaction Processing System


The TPS is central to the overall function of the information system by converting economic
events into financial transactions, recording financial transactions in the accounting records
(journals and ledgers), and distributing essential financial information to operations personnel
to support their daily operations

3.1.2 General Ledger/Financial Reporting Systems


The general ledger system (GLS) and the financial reporting system (FRS) are two closely
related subsystems.
However, because of their operational interdependency, they are generally viewed as a single
integrated system—the GL/FRS

3.1.3 Management Reporting System


The MRS provides the internal financial information needed to manage a business. Managers
must deal immediately with many day-to-day business problems, as well as plan and control
their operations

3.2 Salient Features of Computerized Accounting


Accounting is the method in which financial information is gathered, processed, and
summarized into financial statements and reports. An accounting system can be represented
by the following graphic.

3.3 The Accounting System


The purpose of accounting is to provide information used in decision making. Accounting may
be viewed as a system (a process) that converts data into useful information.
Information processes include:
➢ Recording
➢ Maintaining
➢ Reporting

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SAP ERP
3.4 Information System
Information Systems. An information system is a type of platform or collection of platforms that
exist to manage a set of information or a technology product. For instance, the hardware and
software used to create, maintain and access an electronic health record is an information
system.
Basic Elements of System
A system has three basic elements”
i. Input
ii. Processing
iii. Output
The other elements include:
i. Control
ii. Feedback
iii. Boundaries
iv. Environment and interfaces.

3.5 Information System Framework


The information system is the set of formal procedures by which data are collected, processed
into information, and distributed to users.
An information system (IS) is typically considered to be a set of interrelated elements or
components that collect (input), manipulate (processes), and disseminate (output) data and
information and provide a feedback mechanism to meet an objective.

3.6 Types of Information System Framework


There are two broad classes of information systems:
➢ The accounting information system (AIS)
➢ The management information system (MIS)

The framework to identify the domain of AIS and distinguish it from MIS. More often, MIS and
AIS functions are integrated to achieve operational efficiency. The information system accepts
input, called transactions, which are converted through various processes into output
information that goes to users. Transactions fall into two classes: financial transactions and
nonfinancial transactions. Before exploring this distinction, let’s first broadly define:

3.6.1 Transaction:
“A transaction as an event that affects or is of interest to the organization and is processed
by its information system as a unit of work.”

SALAIH MUHAMMAD (FCA) 17


SAP ERP
This definition encompasses both financial and nonfinancial events. Because financial
transactions are of particular importance to the accountant’s understanding of information
systems, we need a precise definition for this class of transaction

3.6.1.1 Financial Transaction:


A financial transaction is an economic event that affects the assets and equities of the
organization, is reflected in its accounts, and is measured in monetary terms.
Examples: Sales of products to customers, purchases of inventory from vendors, and cash
disbursements and receipts are examples of financial transactions

3.6.1.2 Nonfinancial transactions:


Nonfinancial transactions are events that do not meet the narrow definition of a financial
transaction. For example, adding a new supplier of raw materials to the list of valid suppliers
is an event that may be processed by the enterprise’s information system as a transaction.
Important as this information obviously is, it is not a financial transaction, and the firm has no
legal obligation to process it.

3.7 Accountancy in ERP


Accountancy is the process of communicating financial information about a business entity
to users such as shareholders and managers.

3.8 Definition of Accounting:


The art of recording, classifying, and summarizing in a significant manner and in terms of
money, transactions and events which are, in part at least, of financial character, and
interpreting the results thereof

3.9 Types of Accounting Information Users


Two types of accounting Information Users: Internal and External Users
Accounting information helps users to make better financial decisions. Users of financial
information may be both internal and external to the organization.

3.9.1 Internal users (Primary Users)


Internal users (Primary Users) of accounting information include the following:

➢ Management: for analyzing the organization's performance and position and taking
appropriate measures to improve the company results.

➢ Employees: for assessing company's profitability and its consequence on their future
remuneration and job security.
➢ Owners: for analyzing the viability and profitability of their investment and determining
any future course of action.

SALAIH MUHAMMAD (FCA) 18


SAP ERP
3.9.2 External users (Secondary Users)

External users (Secondary Users) of accounting information include the following:


➢ Creditors: for determining the credit worthiness of the organization. Terms of credit
are set by creditors according to the assessment of their customers' financial health.
Creditors include suppliers as well as lenders of finance such as banks.
➢ Tax Authorities: for determining the credibility of the tax returns filed on behalf of the
company.
➢ Investors: for analyzing the feasibility of investing in the company. Investors want to
make sure they can earn a reasonable return on their investment before they commit
any financial resources to the company.
➢ Customers: for assessing the financial position of its suppliers which is necessary for
them to maintain a stable source of supply in the long term.
➢ Regulatory Authorities: for ensuring that the company's disclosure of accounting
information is in accordance with the rules and regulations set in order to protect the
interests of the stakeholders who rely on such information in forming their decisions

3.10 Type of ERP Accounting Information User


➢ Accountants as Information System Users
➢ Accountants as System Designers
➢ Accountants as System Auditors
3.10.1.1 Accountants as Information System Users
Accountants must be able to clearly convey their needs to the systems professionals who
design the system. The accountant should actively participate in systems development
projects to ensure appropriate systems design.

3.10.1.2 Accountants as System Designers


The accounting function is responsible for the conceptual system, while the computer function
is responsible for the physical system. The conceptual system determines the nature of the
information required, its sources, its destination, and the accounting rules that must be applied.

3.10.1.3 Accountants as System Auditors


3.10.1.3.1 External Auditors
Attest to fairness of financial statements
Assurance service: broader in scope than traditional attestation audit
3.10.1.3.2 IT Auditors
Evaluate IT, often as part of external audit
3.10.1.3.3 Internal Auditors
In-house IS and IT appraisal services

SALAIH MUHAMMAD (FCA) 19


SAP ERP
3.11 Management Information System (MIS)

Management often requires information that goes beyond the capability of AIS. As
organizations grow in size and complexity, specialized functional areas emerge, requiring
additional information for production planning and control, sales forecasting, inventory
warehouse planning, market research, and so on. The management information system (MIS)
processes nonfinancial transactions that are not normally processed by traditional AIS

MIS is defined as a system that consists of people, machines, procedures, data models and
databases as the elements of the system. The system executes the followings:

1. Collection of data from internal and external sources of company


2. Processing of data
3. Proper flow of processed data or management of information to the managers to assist
them in the procedure of decision-making

3.12 Types of Management Information Systems


The common types of Management Information Systems include:

1. Process control systems,


2. Human resource management systems,
3. Sales and marketing systems,
4. Inventory control systems,
5. Office automation systems,
6. Enterprise resource planning systems,
7. Accounting and finance systems and
8. Management reporting systems.

3.13 The Benefits of SAP Business One

• End-to-end business automation


• Accurate real-time reporting and analytics
• Complete operational visibility and control
• Customized features to meet industry-specific requirements
• Access to critical data anytime, anywhere
• Improved Materials Requirements Planning (MRP) SAP Business One helps
procurement, purchasing teams, and production planners easily schedule and manage
materials based on customizable standards and conditions.
• Inventory Management.
• Improved Lot Traceability
• Robust Dashboards.

3.14 Types of Vouchers

SALAIH MUHAMMAD (FCA) 20


SAP ERP
One of the main tasks of the accountant is to prepare the books of the business. It is the part
of accounting that is concerned with recording data and is often called bookkeeping.
Bookkeeping may be manual or computerized.

It is the first record of a business transaction, supported by its evidence. Each voucher must
state the name of the business and the type of the voucher. There are five kinds of vouchers
used in the bookkeeping process:
i. Cash Payment Voucher (abbreviated as CPV)
ii. Cash Receipt Voucher (abbreviated as CRV)
iii. Bank Payment Voucher (abbreviated as BPV)
iv. Bank Receipt Voucher (abbreviated as BRV)
v. Journal Voucher (abbreviated as JV)
vi. Adjusting Voucher (abbreviated as ADJV)

3.14.1 CASH PAYMENT VOUCHER – CPV

Cash payment voucher or CPV is used to record any payment made from Cash in Hand.

3.14.2 CASH RECEIPT VOUCHER – CRV

Cash receipt voucher or CRV is used to record any cash received by the company and
currently kept in Cash in Hand

3.14.3 BANK PAYMENT VOUCHER – BPV

Bank payment voucher or BPV is used to record payment made by the company from its bank
accounts. A company may have several bank accounts but only one kind of voucher will be
prepared for recording bank payments.

All the particulars of a BPV are also as same as any other voucher. Only addition will be that
the Cheque Number should also be written on the voucher. Preferably when writing the
amount in words or when writing either the head of account or narration.

3.14.4 BANK RECEIPT VOUCHER – BRV

Bank receipt voucher or BRV is used to record any amount received & deposited by the
company in any of its bank accounts. A company may have several bank accounts but only
one kind of voucher will be prepared for recording bank receipts.

3.14.5 JOURNAL VOUCHER – JV

The journal voucher or JV is used to record any transaction that is other then a CRV, BRV,
CPV or a BPV, meaning that it is used for accruals, prepayment and other transactions of such
nature. Some accountants also find it convenient to use JVs for contra entries.

SALAIH MUHAMMAD (FCA) 21


SAP ERP
The JV is also quite similar to other kinds of vouchers the only difference is that both Debit
and Credit columns are shown on the voucher. Other requirements for this kind are the same
as any other voucher.

3.14.6 JOURNAL VOUCHER – JV

The Adjusting journal voucher or ADJV is used only for adjusting entries, but some
organizations use JV instead of ADJV

SALAIH MUHAMMAD (FCA) 22

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