Design of Budget Carry Forward Process in Funds Management Module

with SAP using SAP Activate Methodology:

Case Study - PT. Telekomunikasi Indonesia, Tbk

Rizki Anik Tia

, Warih Puspitasari

and Wahjoe Witjaksono

Information System, School of Industrial and System Engineering, Telkom University, Indonesia

Keywords:

ERP, SAP, Funds Management, Budget Carry Forward, SAP Activate, Reporting

Abstract:

PT. Telkom is a company engaged in telecommunications providers in Indonesia. In the System, Application

and Product in Data Processing (SAP) funds management module in PT. Telkom has a problem with the budget

carry forward process. SAP reporting in PT. Telkom budget carry forward process nowadays, can only bring

the burden of expenses to the next ﬁscal year, while the budget cannot be carried away. The implementation of

the budget carry forward is carry out in accordance with the user’s requirement, which in SAP reporting can

transfer cost and budget expenses simultaneously to the next ﬁscal year. In this research using SAP Activate

methodology which consists of several stages: discover, prepare, explore, realize and deploy. The conclusion

of the research concludes the design plan of the budget carry forward in funds management module using SAP

Activate methodology which can separate reporting on the budget carry forward and budget carry over.

1 INTRODUCTION

The implementation of information systems in an or-

ganization is one of the most important things to help

solve problems in managing a company’s business

transactions. PT. Telkom is a State-Owned Enter-

prise (BUMN) engaged in telecommunications ser-

vices and networks in Indonesia. According to the

Telkom Indonesia Annual Report in 2014, the major-

ity shareholders of PT Telkom is the Government of

the Republic of Indonesia amounted to 52.56% and

the remaining 47.44% was controlled by the public.

The Company’s shares are traded on the Indonesia

Stock Exchange (IDX) and the New York Stock Ex-

change (NSYSE). The government acts as a regulator

that makes, monitors and enforces regulations relat-

ing to the telecommunications sector (Annual Report

PT Telkom, 2014).

The selection of the System Application and Prod-

uct in Data Processing (SAP) software as an Enter-

prise Resource Planning (ERP) based solution at PT.

Telkom is based on complexity and excellence com-

pared to other ERP software (Parven and Maimani,

2014) . PT. Telkom is the ﬁrst state-owned company

to implement SAP since 2002. In this research will fo-

cus on discussing the implementation of SAP Finance

in the Funds Management module in PT Telkom.

The implementation of SAP in funds management

module at PT. Telkom has several problems, called

the management of the Capital Expenditure (CAPEX)

budget, especially in the budget carry forward pro-

cess. Based on the PT. Telkom Annual Report in

2012, it was explained that the Board of Commission-

ers instructed the Board of Directors that the imple-

mentation of Capital Expenditure must pay attention

to the timeliness of procurement processes (Telkom,

2012). When carrying out the procurement process

where the purchase requisition has been carried out,

the purchase order and good receipt in the current ﬁs-

cal year but the invoice and payment for the purchase

of goods are postponed and resumed until the next

ﬁscal year. Therefore, it is necessary to transfer the

budget (budget carry forward) from the current ﬁscal

year to the next ﬁscal year which is carried out at the

end of the closing of the book. But for now the SAP

application at PT. Telkom has not been able to move

the budget to the next ﬁscal year, only the cost of ex-

penses that can be carried over to the next ﬁscal year.

This resulted in a decrease in the budget for the next

ﬁscal year and resulted in a decrease in planning to

procure goods in the next ﬁscal year. In this time to

overcome this problem, the user must add the budget

manually so the budget can meet the increasing cost

burden in the next ﬁscal year. This can cause the clos-

110

Tia, R., Puspitasari, W. and Witjaksono, W.

Design of Budget Carry Forward Process in Funds Management Module with SAP using SAP Activate Methodology: Case Study - PT. Telekomunikasi Indonesia, Tbk.

DOI: 10.5220/0009865601100114

In Proceedings of the International Conference on Creative Economics, Tourism and Information Management (ICCETIM 2019) - Creativity and Innovation Developments for Global

Competitiveness and Sustainability, pages 110-114

ISBN: 978-989-758-451-0

ing process of the annual book to be longer.

In order to overcome this problem, PT. Telkom

wants the budget carry forward process in the SAP ap-

plication to transfer the budget according to the cost

burden carried out from the current ﬁscal year to the

next ﬁscal year automatically. In a report for budget

carry forward process can do budget screening which

has reached the stage of good receipt. The results of

all budget use each year can be seen and monitored

in the reporting budget usage in SAP. In addition, PT.

Telkom wants in reporting budget usage in SAP there

is a separation between budget carry forward and the

budget carry over. The research conducted will fo-

cus on answering requirements from users regarding

the problems of budget carry forward on SAP appli-

cations at PT. Telkom. Based on these problems, it is

necessary to design SAP module funds management,

especially in the process of budget carry forward can

be a solution to handle the process of transferring the

budget.

2 LITERATURE STUDY

2.1 Enterprise Resource Planning

Enterprise Resource Planning is a system that can in-

tegrate business processes in companies with a cen-

tralized data storage process (Suryalena, 2013). ERP

systems can help companies manage their business

processes to be more efﬁcient by sharing information

with relevant parties (Mustafri et al., 2016) so the in-

formation received can be directly known (real-time)

(Rokhmaningsih et al., 2015). ERP systems can help

companies in ﬁnancial accounting, sales and distri-

bution, purchasing, human resources and production

planning (Akbar and Juliastrioza, 2015).

2.2 System Application and Product in

Data Processing (SAP)

System Application and Product in Data Process-

ing is an ERP system that was founded in 1972 in

Mannheim, Germany by ﬁve former IBM employees

namely Hasso Plattner, Dietmar Hopp, Claus Wellen-

reuther, Klaus Tschira, and Hans - Werner Hektor.

SAP is a software developed to support an organi-

zation in carrying out its operational activities to be

more effective and efﬁcient. SAP is integrated soft-

ware that can make it easy to share information be-

tween functional ﬁelds in the company (Putri et al.,

2017) The client-server architecture used by SAP R/3

can run on multiple computer platforms, including

UNIX and Windows NT. Change of client-server sys-

tem into a cloud (SAP S/4). Hardware / Database co-

design is one of the main pillars of success on the SAP

S/4 HANA platform for data management in modern

hardware (Sikka et al., 2013).

2.3 Material Management

Managing raw material purchases from suppliers and

handling raw material inventory from procurement to

raw materials ready to be distributed to customers

(Ridwan and Alam, 2018). Following are the steps

in SAP to carry out the procurement process:

1. Create purchase requisition

Purchase requisition is a document that is used to

make requests for goods or material to place or-

ders directly with vendors and supplies.

2. Create purchase order

Purchase order is a purchase document at prices

agreed with the vendor.

3. Create good receipt

Good receipt is a document of receipt of goods

based on the purchase order in the form of a re-

ceipt by the warehouse.

4. Create invoice

An invoice is a document that contains an invoice

that must be paid to the vendor based on the trans-

action made on the purchasing process.

2.4 Funds Management

Funds Management (FI-FM) is one part of the Fi-

nancial Accounting module. The purpose of Funds

Management is to budget all income and expenses

for each division in the company. In addition, Funds

Management has the beneﬁt of controlling the com-

pany’s future fund transactions according to the dis-

tributed budget and stopping the budget that has ex-

ceeded the allocation limit. Integration between Ma-

terial Management and Funds Management, for ex-

ample, is monitoring the purchase requisition pro-

curement transactions through invoices (SAP, 2005).

In addition, the Funds Management module and Ma-

terial Management module for the procurement pro-

cess is also integrated with the Project System module

to make project planning. Here is Figure 1 the inte-

gration Funds Management module with Project Sys-

tem Module and Material Management module with

another module in SAP.

Design of Budget Carry Forward Process in Funds Management Module with SAP using SAP Activate Methodology: Case Study - PT.

Telekomunikasi Indonesia, Tbk

111

Figure 1: Integration module in SAP

2.5 Budget Carry Forward

Budget Carry Forward (BCF) is one of the processes

found in module fund management (FI- FM). The

budget carry forward is a process that occurs if a

transaction is required to continue the budget for com-

mitment and the remaining budget for the transaction

from the current ﬁscal year to the next ﬁscal year.

3 METHODOLOGY

In this study, the methodology used is SAP Activate

is a new methodology introduced by SAP compa-

nies where this methodology is used to implement

SAP software using the agile method. SAP Acti-

vate offers best practices that can improve the suc-

cess of SAP software implementation. SAP Activate

is a unique combination of best practice, methodol-

ogy, and guided conﬁguration delivered with a ref-

erence solution (Singh, 2017). SAP Activate phases

which are carried out in this research are discovered,

prepare, explore, realize and deploy (Suryaman et al.,

2018). These phases of SAP Activate Methodology

are illustrated in the ﬂow diagram as well as an expla-

nation in Figure 2.

Figure 2: SAP Activate Methodology

3.1 Discover

At the discover phase there is a project scoping. For

the environment in this study is PT. Telkom, espe-

cially in the SSO Finance Center division, there are

some problems with the budget carry forward pro-

cess. In this study for the project scoping stage is

divided into 3 scopes, consist of business process de-

sign refers to SAP best practices and company needs,

conﬁguration design in SAP according to the target

business process, business process design can be im-

plemented and conﬁguration can be well documented.

3.2 Prepare

In the prepare phase, it’s analyzing the business pro-

cess as is of the budget carry forward process and

setup and enablement the software. At this stage, the

process of ﬁnalizing the project plan is carried out and

preparing the system access used in the project.

3.3 Explore

In the explore phase, a business process design will

be implemented in the company and identifying the

solution that ﬁt in SAP and gaps with the company

need solutions or ﬁt-gap analysis

3.4 Realize

In the phase of realize, the SAP application will be

conﬁgured and tested for the SAP system that has

been conﬁgured.

3.5 Deploy

At this stage is the stage of transition to the new sys-

tem.

4 ANALYSIS

4.1 Fit/Gap Analysis

Figure 3: Fit/Gap Analysis.

Fit/gap analysis is used to compare and evaluate the

solution in the SAP system with the need solution

in budget carry forward process in PT. Telkom. The

following is the result of ﬁt and gap analysis in the

budget carry forward process at PT. Telkom. Based

on Figure 3 is the Fit/gap analysis of the budget carry

forward process at PT. Telkom.

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Information :

N: Needs are not met at all.

P: Needs are only partially fulﬁlled

F: Needs have been fulﬁlled.

4.2 Business Process to Be

Business To Be is a proposed business process of re-

searchers after analyzing, evaluating and designing

the system. The ﬂow of budget carry forward pro-

cesses to be will be explained in Figure 4.

Figure 4: Business Process To Be

Budget carry forward process occurs by a request

to procure goods to the vendor. The processes run-

ning by the SAP application. The logistics depart-

ment makes a purchase requisition by recording the

material that you want to buy from the vendor. Then

the logistics will print purchase requisition. After the

purchase requisition document has been approved by

a logistic functional ofﬁcial, the purchase requisition

document will be released. And then the logistics

department will make a purchase order that lists the

price of the agreement with the vendor. After that, the

logistics department will print the purchase order, and

after the purchase order document is approved it will

be released by the functional logistics ofﬁcial. After

the goods have been sent by the vendor and enter the

company’s warehouse, the logistics department will

make a good receipt document. However, the invoice

from the purchase of goods is delayed until the next

ﬁscal year. As a result, must carry out a budget carry

forward process on the SAP application. Division that

carries a carry forward process is Finance division by

carrying out a budget carry forward and the burden

of the current ﬁscal year to the next ﬁscal year using

SAP. And then the ﬁnance division looks at the usage

budget report an ensures that the budget and cost of

expenses in the next ﬁscal year increase.

4.3 Conﬁguration

At this stage, the conﬁguration is related to module

funds management and create a report painter for the

reporting budget usage process. The conﬁguration in

the module funds management is done by using the

implementation guide (IMG) help. The conﬁguration

carried out in funds management module aims to ac-

tivate the budget carry forward process in SAP. Next

to make reporting on the budget usage is done by us-

ing the help of a report painter to add a budget carry

forward column, deﬁne data that supports the budget

carry forward process and display information that

can distinguish the results of purchase orders from

carry forward process and the purchase order of the

current ﬁscal year on SAP.

4.4 Customized Report

At this stage, it is customizing Original / Release Bud-

get Report on SAP by using the ABAP programming

language (Advanced Business Application Program-

ming) in accordance with the user’s request to add the

Carry Forward column and can ﬁlter the budget that

has reached the stage of good receipt. The result of

the customized Original / Release Budget Report as

shown in Figure 5.

Figure 5: Customized Report.

5 CONCLUSION

The design of the sap funds management module

in the budget carry forward process is carried out

based on an analysis of user requirements and busi-

ness process analysis contained in sap using the sap

activate methodology. This research using SAP Ac-

tivate methodology because SAP Activate methodol-

ogy supported by best practices so it can be simpliﬁed

and accelerate the implementation of the budget carry

forward at PT. Telkom.

Previously, the SAP implementation of the budget

carry forward process at PT. Telkom had not been able

to move the budget to the next ﬁscal year. The results

of this study are obtained from the design of the bud-

get carry forward process in the SAP application that

can transfer the budget in accordance with the cost

that has not been completed in the current ﬁscal year

to the next ﬁscal year automatically. Besides that, the

budget report in SAP has been produced which can

separate the carry forward and carry over budget types

so that it allows users to process budget data. In carry

Design of Budget Carry Forward Process in Funds Management Module with SAP using SAP Activate Methodology: Case Study - PT.

Telekomunikasi Indonesia, Tbk

113

forward column displays the budget that has reached

the stage of good receipt.

The research can be further clariﬁed by making

ﬁnancial reports (reporting) through customization in

SAP to make it easier to adjust to user needs.

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