The document outlines a project to develop and implement financial control procedures and automate approval processes for an automotive distributor. The goals are to create electronic databases for liabilities and budgets, and establish automatic control processes. Key tasks include developing financial control procedures, automating approval workflows for activities, budgets, contracts and payments, and integrating systems while addressing restrictions like a limited SAP version. Implementation will occur in main stages, including automating processes in SharePoint, launching SAP modules, migrating databases, and establishing integrated budget and cash flow control. The results achieved full automation of approval workflows, creation of electronic databases, analytical reporting, and integration of systems to enable online budget oversight and cash flow monitoring.

1. Kirill Baranov, Ph.D.
Financial Control Procedure
Establishment & its Automation
in Automotive Distributor

2. Project goal:
• To develop & implement procedure of financial control of liabilities, budget and cash outflow
Tasks:
• To develop Financial control procedure
• To automate approval processes for activities, budget spending, contract, payment orders
• To establish automatic control process
• To create electronic database of current liabilities
Restrictions:
• Limited SAP version
• Low project budget
• Complex financial structure and chart approved
• Tangled existing processes of approval and decisions implementation
• Easy system support system
• Correct segregation of rights and duties
Team resources:
• Financial control team
• IT team
• SharePoint services team (outsourcing)
• SAP team (outsourcing)
Financial Control Procedure Establishment & its
Automation in Automotive Distributor

3. 1. Budget
Approval
2. Request
of Approval (ROA)
3. Formalization
Process
4.1. Closing Docs
Submission
Control
4.2. Payments
Control
Budget Committee
Financial Dep
Initiator’s Head
Initiator
Financial Dep
Accounting
Dep
Legal Dep
Project Approval & Control Procedures

4. Budget
Requests of
Approval (ROA)
Contracts
Approved
Closing Docs
Submitted
Control Amounts Relation

5. Start of activity with ROA creation: cost center, year, budget item, currency,
limiting amount and other necessary data must be mentioned
ROA consideration. Check vs Budget. Number of ROA is given
Contract Approval. Check vs ROA budget.
Contract number is given
Submission of closing accounting docs
with contract number to Accounting
Dep
Docs check. System input
Control and analysis by contracts, cost
centers, budget items
Payment order creation with a
contract number
Payment order check. Control vs
contract amount
Control and analysis of cash flow by
contracts, cost centers, budget items
Budget Control Chain

6. Program Choice
Budget Control Process Processes of approval & control
Pros:
- Main ERP –system in the
entity
- FM & FI modules for control
Pros:
- Comparatively simple and
cheap realization
- User friendly interface
- Integration possibility with SAP
- Possibility of contracts
electronic database creation

7. ROA
• Permission for activity
approval process
Contract
• Contract approval
process
• Electronic database
Payment
orders
• Payment order
approval process
• Cash outflow control
of the contract
amount
MS SharePoint
Budget
release
• Yearly budget
Pre-
commitment
• Preliminary
budget
consumption
Commitment
• Contract
consumption
Closing
documents
• Budget control for
accruals against
commitment
SAP
Data exchange
Data exchange
Final Control Chart

8. 1. Annual budget permitted for cost center in the column “Budget”.
2. Amount which were already permitted for spending the column “ROA”. Difference
between Budget and ROA can be distributed for the expenses till the end of the year.
3. “Contract” shows the amount of contracted company’s obligations. Difference
between ROA and Contract is the amount for more contracts in the project allowed
and etc.
4. Every month budget holders and Fin Dep has a clear vision of their budget spent by
items and even by contracts.
Example of Monthly Analytical File for Budget Accrual Control
Cost Center Name Budget ROA Contract Closing docs submitted
Cost center 1 1 000 000 200 000 90 000 30 000
Budget item 1 500 000 100 000 40 000 10 000
Budget item 2 300 000 100 000 50 000 20 000
Budget item 3 200 000 0 0 0
Cost center 2 … … … …
Budget item 1 … … … …
Budget item 2 … … … …
Budget item 3 … … … …
Cost center 3 … … … …
Budget item 1 … … … …
Budget item 2 … … … …
Budget item 3 … … … …
Total … … … …

9. 1.1. Automation of workflow for Request of Approval for activity (ROA);
contract, payment orders on SharePoint basis.
1.2. Employees trainings.
2.1. SAP FM module launch together with FI module.
2.2. Trainings for employees and accountants for closing
documents provision.
2.3. Budget SAP control start.
3.1. Database from SharePoint to SAP migration.
3.2. Reports development.
3.3.Budget spent & cash outflow control start all together.
Main Stages of Plan Implementation

10. Goals achieved:
1. Implemented electronic workflow for ROA, Contract and Payment order with
remote access
2. Created electronic contract database for contracts scans and amounts
reserved
3. Developed templates of analytical tables for operating planning, decision
making and forecasts
4. Budget fulfillment database for HQ online made
5. Established electronic cash outflow control
6. Integrated possibility to approve internal non-financial orders
7. Created expenses drill down to concrete document
8. Controlled results of tender procedure in the system
Results for 3 years:
1. ROAs approved – 5 000
2. Contracts and addendums approved – 9 000
3. Payment orders approved – 40 000
Results after Step-by-Step Implementation (18 months)