Design of Carry Over Process in SAP Funds Management Module using

SAP Activate Methodology for Capital Expenditure

at PT. Telekomunikasi, Tbk

I Dewa Ayu Lalita Marmika

, Umar Yunan K. S. Hediyanto

and Warih Puspitasari

Information System, Telkom University, Telekomunikasi Street No.1, Bandung, Indonesia

Keywords:

Carry Over Budget, SAP, SAP Activate, Funds Management, Capital Expenditure.

Abstract:

Carry over is the right to use the unspent budget during the time period which was originally planned. SAP

offers a carry over function that is carrying budget for commitment and residual budget from the previous ﬁscal

year to the next ﬁscal year. However, it didn’t meet the needs of the user, especially for capital expenditure.

In PT. Telekomunikasi Indonesia, Tbk, carry over is a re-budgeting process for multi-year programs and what

the user wants is to carry open commitments without its budget so the carry over program will consume the

allocated budget in the next ﬁscal year. The purpose of this research is to solve the above-mentioned issue.

The result of the research is a design of carry over process in funds management module using SAP Activate

methodology and a report that able to distinguish between the carry over budget and carry forward budget.

1 INTRODUCTION

The scale and complexity of the business that runs by

a company will surely affect its performance level.

Besides, it is commonly believed that to design and

run a business the performance of the company is

usually seen from customer satisfaction, therefore the

role of information technology is considered as the

core component that helps companies to achieve su-

periority in competitive competition (Rerung, 2018).

Information Technology played a vital role and it can-

not be ignored. However, investment in informa-

tion system will cost a lot and has considerable risks.

For those reasons, the company needs to determine

the right information technology to meet their needs.

Mulyani said that the Enterprise Resource Planning

system is able to integrate all of the subsystems in a

company in order to face a competitive competition

(Mulyani et al., 2017).

PT. Telekomunikasi Indonesia, Tbk which is a

state-owned company promotes the synergy between

the state-owned companies by implementing an ERP

system in BUMN Karya. Among all of the ERP soft-

ware, PT. Telekomunikasi Indonesia, Tbk chose to

use SAP R/3 which is fully integrated with all busi-

ness function including human resources, logistics,

material management, ﬁnancial accounting and many

more. Based on the research that had been done be-

fore, a large company with complex processes and

many departments will receive more beneﬁts from im-

plementing an ERP system, because the system pre-

vents information bias, wrong perception and help the

company to make a better decision faster (Widiyanti,

2013). The use of SAP is able to reduce paper us-

age, expenditure, and printing costs by 33% and im-

prove the company processes (Khoualdi and Basahel,

2014).

During the implementation of SAP, the company

spent a lot of money. In addition, the business activi-

ties that ran by Telkom Group are increasingly grow-

ing and changing along with the rapid development of

information technology. While running its business,

not all the business processes in the company can im-

mediately run in accordance with the implemented

system. The problem arises while the company trans-

ferring the budget using the funds management mod-

ule, especially for the capital expenditure. Capital ex-

penditure is expenditure for the procurement of goods

and/or services in the form of new development and

improvement of the company assets’ quality. When

the company wants to perform budget carry over pro-

cess, which is a process of re-budgeting a multiyear

program or investment program of the previous year

and wants it to be continued to the following year, the

open commitment documents that carried to the next

ﬁscal year are still attached with its budget, though

Marmika, I., Hediyanto, U. and Puspitasari, W.

Design of Carry over Process in SAP Funds Management Module using SAP Activate Methodology for Capital Expenditure at PT. Telekomunikasi Indonesia, Tbk.

DOI: 10.5220/0009865801210126

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 121-126

ISBN: 978-989-758-451-0

121

the carry over process in Telkom is carrying only the

open commitment documents without the budget so

it will consume the allocated budget in the next ﬁs-

cal year. Though the SAP offers a carry over function

that carries the budget for commitment and residual

budget, however, it didn’t meet the needs of the user.

Hence, the user needs to perform the return budget

process, which is not effective. Moreover, because

while carrying items, the budgets are still attached the

user found it difﬁcult to distinguish between the carry

over and carry forward because the system considered

these two budgets entering the same budget type af-

ter the carry process. Those above-mentioned issues

cause the delays of the year-end closing.

Based on those issues that have been described

in the previous paragraph, further research is needed,

mainly in the funds management module and its func-

tions so that the company can optimize its business

processes. Therefore, the existing business processes

need to be redesigned based on the requirement of the

company. The right methodology for this research is

SAP Activate, a methodology with a unique combi-

nation of SAP best practice, methodology and guided

conﬁguration so the company can build the systems

faster and run them simply. The right solution to

resolve the problem in PT. Telekomunikasi Indone-

sia, Tbk is by redesigning the budget carry over pro-

cess in the funds management module using the SAP

methodology.

2 LITERATURE REVIEW

2.1 Enterprise Resource Planning

(ERP)

According to Surjit, Rathinamoorthy & Vardhini, En-

terprise Resource Planning (ERP) is a business pro-

cess management that gives the company to use a

system that is integrated with various applications

to regulate their business and automate functions re-

lated to technology, services, and human resources

(Surjit et al., 2016). According to Ganesh, Mohap-

atra, Sivakumar & Anbuudayasankar, Enterprise Re-

source Planning is a tool that can help the company to

plan, schedule and integrate suppliers and customers

(Ganesh et al., 2014). Enterprise Resource Planning

according to Elbardan & Kholeif is a management

system that contains a set of integrated software that

is used to integrate all of the business functions that

exists in the company (Elbardan and Kholeif, 2017).

From all of the ERP deﬁnition mentioned above, it

can be concluded that Enterprise Resource Planning

is a system that helps the company both to integrate

the main processes and coordinate information be-

tween business area so that they can support the busi-

ness processes to be better in the future. ERP sys-

tem has the capacity to simplify processes that are

slow and time-consuming in the company (Parven and

Maimani, 2014).

2.2 Systems, Applications, and Product

(SAP)

SAP stands for ”System, Applications, and Prod-

ucts in Data Processing”. SAP is a software that is

tightly integrated with each other so that every trans-

action that runs in a module will automatically affect

other related modules (Sampat, 2015). SAP supports

the company’s main business processes and functions

(Boeder and Groene, 2014). According to Okung-

bawa, SAP is used by nearly 500 companies around

the world as a solution for processing operational data

and making real-time reports so it can help manage-

ment levels to make good decisions appropriately and

enable them to manage the company’s business pro-

cesses effectively and efﬁciently (Okungbowa, 2015).

The main goal of SAP is to improve and simplify

internal business processes which are sometimes re-

quire reengineering process (Junnarkar and Verma,

2017). SAP allows the company to run modules in-

dividually and adjust the system according to the re-

quirements of the company (Khan, 2017).

2.3 Material Management

The Material Management module is a part of the lo-

gistics system in SAP that is connected with Produc-

tion Planning, Plant Maintenance, Warehouse Man-

agement, Sales & Distribution and Logistics Execu-

tion (Sedgley and Jackiw, 2002). This module is de-

signed to provide information, tracking and managing

the materials that are being moved, stored and sent

outside the company (Ahmed, 2014). According to

Jost, the following is an explanation of several pro-

cesses in Material Management that will be used in

the carry over process:

1. Purchase Requisition

This document is a request from a particular de-

partment to the purchasing department to provide

a certain amount of services or materials.

2. Purchase Order

This document is sent to an external business part-

ner that contains material details and quantities.

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2.4 Funds Management

The funds management module can support the users

to create a budget with several functions that repli-

cate a company’s ﬁnancial structure for the process of

planning, monitoring, and managing the company’s

ﬁnance. Three important tasks in this module in-

cluding budgeting revenues and expenditures, funds

movement monitoring, the swelling budget’s potential

monitoring (Kale, 2014). This module is integrated

with the project system module and material manage-

ment module.

2.5 Budget Carry Over

Carry over is the process of transferring funds or al-

locations that are not used in the previous ﬁscal year

to the next ﬁscal year. This form of expenditure al-

lows the company to use the previous ﬁscal year’s al-

location for their programs in the next ﬁscal year with

a number of restrictions (for Economic Co-operation

and Development, 2014).

3 RESEARCH METHODOLOGY

SAP offers new solutions that have been created based

on a proven approach and SAP experience in provid-

ing a smart and consistent methodology for all appli-

cations called SAP Activate. SAP Activate is a mod-

ular methodology and can be used to implement and

migrate SAP systems. SAP Activate is also a unique

combination of SAP best practices, methodology and

guided conﬁguration (Singh, 2017). SAP Activate

consists of six phases, they are discover, prepare ex-

plore, realize, deploy and run (Kralji

c and Kralji

2018). This methodology allows companies to build

system quickly and run them simply while continuing

innovation in the cloud (Basavanthappa, 2015).

The following is the descriptions of the SAP Ac-

tivate Phases (Musil, 2016) in Figure 1 :

1. Discovern

The discover phase is a stage where the scope of

the project is deﬁned. This research is conducted

at PT. Telekomunikasi Indonesia, Tbk and the fo-

cus is to solve the existing problem and fulﬁll the

requirements of the user for carry over process.

2. Prepare

The prepare phase is the stage where the plan and

scope of the project have been established. This

phase consists of 2 stages, ﬁrst set up and en-

ablement where the access to the server and sand-

box system are prepared and second as-is business

process analysis where the lack of current busi-

ness process is analyzed. The sandbox system that

will be used is SAP Production Simulation.

3. Explore

After the sandbox system and access have been

prepared, Fit/GAP analysis will be performed to

validate the solutions and identify the require-

ments according to the analysis that had been

done before. In addition, there will also be a

business process design. There are 2 stages, ﬁrst

is Fit/GAP analysis and second is determine the

business process.

4. Realize

Before performing the conﬁguration, master data

should be deﬁned ﬁrst. The master data that will

be used is Funds, Funds Center, Commitment

Item, Financial Management Area, and Work

Breakdown Structure (WBS). The funds manage-

ment module will be conﬁgured due to the guided

conﬁguration. After that, the system should be

tested to check whether the system to check

whether it has worked properly as required or not.

5. Deploy

Deploy is the last phase of the methodology used

in this research. After the conﬁguration of the sys-

tem had been done, the system will be handed to

the user to check whether the system has met the

user’s requirement.

This study only used the sap activate methodol-

ogy until the deploy phase and not all of the steps

are implemented and it’s been adjusted to the needs

of the company. Because SAP Activate methodology

consists of best practices and guided conﬁguration,

it helps the company to make changes of SAP and

using implementation guide in the guided conﬁgura-

tion environment that helps the company to ﬁnd solu-

tions faster and deploy them more quickly. SAP Acti-

vate methodology includes ready-to-use reference so-

lutions, documentation, and guided conﬁguration that

guides the company to conﬁgure the system accord-

ing to the user’s needs. Moreover, it is an agile im-

plementation methodology that helps the company to

adapt quickly and its ﬂexibility allows the company

to create its own processes and can be adjusted to the

user needs via conﬁguration

Figure 1: SAP Activate Phases

Design of Carry over Process in SAP Funds Management Module using SAP Activate Methodology for Capital Expenditure at PT.

Telekomunikasi Indonesia, Tbk

123

4 RESEARCH RESULT

4.1 Fit/GAP Analysis

Fit/GAP analysis is intended to ﬁnd out whether the

current business process in the company has suc-

ceeded in fulﬁlling all the needs of the company. Fig-

ure 2 is the result of Fit/GAP analysis on the carry

over business process at PT. Telekomunikasi Indone-

sia, Tbk. Note :

N : the requirements are not fulﬁlled at all.

P : the requirements are only partially fulﬁlled.

F : the requirements are fulﬁlled.

Figure 2: Test Case for Proceeding Payment.

4.2 Business Process to Be

The business process to be is a proposed business pro-

cess that has been designed based on the previous

ﬁt/gap analysis. The following is the explanation of

the business process to be of carry over process de-

scribed in Figure 3.

The process begins by making purchase requisi-

tions and purchase orders. At PT. Telekomunikasi

Indonesia, Tbk, an investment program can be cate-

gorized as a carry over program if a purchase order

(PO) has been made and there was no good receipt or

payment yet in the current ﬁscal year so the company

wants the program to be continued in the next ﬁscal

year. The business unit will check which program

should be carried to the next ﬁscal year, then propose

the carry over investment program and at the begin-

ning of the ﬁscal year the Investment Committee will

review and evaluate the carry over program status.

If the proposal approved, the Investment Committee

will determine the amount of the Commitment Budget

and Payment Budget that have to be provided based

on the remaining work which will continue in the fol-

lowing year. The recommendation will be transferred

to the Director of ﬁnance and if it approved, the Direc-

tor of ﬁnance will sign the contract so that the ﬁnance

can carry the open commitment documents which are

processed until the Purchase Order (PO) through the

T-code BCFCO. The proposed business process is to

eliminate the phase where the user must perform the

return budget process, as a matter of fact, ineffective.

This problem will be solved by conﬁguring the funds

management module, especially in the closing oper-

ations for the budget control system (BCS) so when

user perform the carrying process, open commitment

documents will be carried without its budget to the

next ﬁscal year and the system will automatically gen-

erate a report which shows the total amount of carry

over budget. After that, the ﬁnance unit can release

the commitment and payment budget, and the carry

over program will consume the allocated budget in

the next ﬁscal year.

Figure 3: Business Process To Be

4.3 Conﬁguration

The basic conﬁguration on SAP system is done by us-

ing the Implementation Guide (IMG) help. It includes

adding more columns, changing ﬁelds, and other con-

ﬁgurations needed as well. There’s two way to dis-

play the IMG on SAP:

1. Enter T-code: SPRO

2. Access menu path: SAP Easy Access menu

−→ Tools −→ Customizing −→ Implementation

Guide (IMG) −→ Execute project.

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Below in the Figure 4 is the list of conﬁgurations that

should be done.

Figure 4: Conﬁguration.

Figure 5: Carry Over Report

After doing the conﬁguration and customization,

the system needs to be tested to check if the program

works correctly. The result is user now can perform

the carry over process and the budget for commit-

ments aren’t attached with its document, so the return

budget process is no longer needed. After that, the

system will automatically generate a report as shown

in Figure 5.

5 CONCLUSIONS

PT. Telekomunikasi Indonesia, Tbk receives pretty

much beneﬁts by using SAP, but while running its

business, the company still facing several obstacles.

It was particularly difﬁcult to adjust the existing busi-

ness processes on the system perfectly. Currently,

when the company wants to perform carry over pro-

cess, the system still carrying the open commitment

documents with its budget, so the user has to perform

the return budget, which is ineffective. The carry over

program in Telkom is supposed to consume the allo-

cated budget in the next ﬁscal year, but because of

the existing system’s conﬁguration, the budget is still

attached so the consumable budget of the next ﬁscal

year will be decreased and it won’t consume the bud-

get. In addition, the user wants to distinguish between

the carry over budget and carry forward in reporting.

Therefore, some changes are needed. After the analy-

sis of this research, the author has some recommenda-

tions to propose. First, to eliminate the return budget

process, PT. Telekomunikasi Indonesia, Tbk has to

conﬁgure the funds management module, especially

the closing operations part . In order to allow the sys-

tem carrying the open commitment documents only

without the budget, the budget carryforward for com-

mitment setting for the sender ﬁscal year must not be

active. It can be done by using the Implementation

guide (IMG) help, by entering the T-code SPRO in

SAP. After the conﬁguration is done, the carry over

program will be carried without its budget and will

consume the allocated budget in the next ﬁscal year.

Second, in order to display the desired contents in

the report such as carry over bugdet, the company

has to create a customized reporting, which can be

done by creating a new reporting program and join-

ing FMBDT, EKKN and EKPO table in order to get

the value of carry over program. Hopefully, those rec-

ommendations will help the company in solving their

concerns so the business processes will run better.

However, this study has potential limitations.

First, PT. Telekomunikasi Indonesia has been imple-

menting SAP, therefore the focus of this study is only

to fulﬁll the requirements of the user. Second, the

methodology used in this study is SAP Activate that

has been adjusted to the needs of the company and not

all of the steps are implemented. Last, the solutions

offered are based on SAP best practice and guided

conﬁguration. For further research, future study can

implement SAP Activate methodology until the last

phase which is run. Future study can also do more

conﬁguration or customization related to funds man-

agement module to make carry over process more ef-

fective.

Design of Carry over Process in SAP Funds Management Module using SAP Activate Methodology for Capital Expenditure at PT.

Telekomunikasi Indonesia, Tbk

125

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