Finance v1 5

Document Identification

Resp. Dept: Project – Migration Division: Asia Pacific

Version: 1.5

Filename: document.doc

Abstract: Business Process Mapping for Accounting

TMIB Business Process in BSCS8 forAccountingAccounting

TMIB Business Process in BSCS8 Page 1

Atos Origin, 2004 document.doc

All rights reserved. No part of this document may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic or mechanical, photocopying, recording, or otherwise, without the prior written consent of Atos Origin.

© Copyright Atos Origin 2004. All rights reserved.

Change History

Vers. Date Author Remarks, Modifications

1.0 12-09-2004 Sthiru Creation

1.1 21-10-2004 Goh Reformat

1.2 25-10-2004 Rachel Ong Revise after interview with credit control team

1.3 26-10-2004 Rachel Ong Revise after walkthrough with user group

1.4 27-10-2004 Rachel Ong Revise after walkthrough with user group

1.5 03-11-2004 Goh Include additional signatory from finance department

Update based on user feedback



Table of Contents

1 INTRODUCTION..........................................................................................................................................4

2 OBJECTIVES...............................................................................................................................................5

3 ASSUMPTIONS...........................................................................................................................................6

4 TERMINOLOGY & ACRONYMS............................................................................................................7

4.1 BSCS 8.0................................................................................................................................................74.2 V-NU......................................................................................................................................................8

5 BUSINESS PROCESS.................................................................................................................................9

5.1 Overall Collection Handling...................................................................................................................95.1.1 Current Process...............................................................................................................................95.1.2 Propose Process..............................................................................................................................9

5.2 New Registration Fee...........................................................................................................................105.2.1 Current process.............................................................................................................................105.2.2 Propose Process............................................................................................................................10

5.3 Scheme Migration................................................................................................................................105.3.1 Current process.............................................................................................................................105.3.2 Propose process............................................................................................................................11

5.4 Annual Fee............................................................................................................................................125.5 Account Barring...................................................................................................................................12

5.5.1 Current Process.............................................................................................................................125.5.2 Proposed Process..........................................................................................................................14

5.6 Hassan & Co.........................................................................................................................................145.6.1 Current Process.............................................................................................................................145.6.2 Propose Process............................................................................................................................14

5.7 Payment Mode......................................................................................................................................145.7.1 Current Process.............................................................................................................................145.7.2 Propose Process............................................................................................................................14

5.8 Special Package....................................................................................................................................155.8.1 Current Process.............................................................................................................................155.8.2 Propose Process............................................................................................................................15

5.9 Minimum Commitment........................................................................................................................155.9.1 Current Process.............................................................................................................................155.9.2 Propose Process............................................................................................................................15

5.10 Deposit Refund.....................................................................................................................................155.10.1 Current Process.............................................................................................................................155.10.2 Propose Process............................................................................................................................16

5.11 Value Added Tax..................................................................................................................................165.11.1 Current Process.............................................................................................................................165.11.2 Propose Process............................................................................................................................16

5.12 GL Account Mapping...........................................................................................................................165.12.1 Current Process.............................................................................................................................165.12.2 New Proposed...............................................................................................................................16

5.13 Posting to AccPac.................................................................................................................................175.13.1 Current process.............................................................................................................................175.13.2 Propose Process............................................................................................................................17

6 REFERENCE DOCUMENT.....................................................................................................................18

7 Acknowledgement........................................................................................................................................20



11 INTRODUCTIONINTRODUCTION

The purpose of this document is to explain the future TMIB business process on financial activities when using BSCS8.



22 OBJECTIVESOBJECTIVES

The objectives will be:

To ensure that TMIB understanding the future business process on Account receivable when using BSCS8.

To ensure that TMIB understanding the future business process on General Legal when using BSCS8.



33 ASSUMPTIONSASSUMPTIONS

The assumption is that, this document is prepared based on discussion session with TMIB staff on the current TMIB business process with VNU system. Then Atos map the business process into BSCS 8, which assume is agreed by the TMIB.



44 TERMINOLOGY & ACRONYMSTERMINOLOGY & ACRONYMS

4.14.1 BSCS 8.0BSCS 8.0

ACCOUNT RECEIVABLE (AR)

BSCS accounting module that use to maintains and supervises payment transactions. Accounts Receivables can perform various types of cash entries from customers or details and to monitor the status of invoices.

CONTRACT

A BSCS contract defines a subscription and services available to a subscriber on the network.

CUSTOMER ADMINISTRATION (CA)

A BSCS module that managing the individual subscribers, as well as large account customers. In Customer Administration, Service Packages are assigned to contracts. Tickler messages are used to track and trace all Customer Administration procedures.

OTHER CREDITS AND CHARGES (OCC)

Any form of Credit or Charges that entered manually by the Customer Administration (CA) user. A customer may receive a credit or charge on his next bill as the result of a complaint.

PRODUCT CENTER

A BSCS online module which supports the definition and management of all objects relevant for pricing and rating, such as time objects, zone objects and service objects. Product center module is for rate plan configuration and creation.

RATE PLAN

A Rate Plan contains a combination of services and their prices as well as taxation and accounting information. Rate Plans are defined in the Product center module.

SERVICE PACKAGES

Service package is a group of services. It is one of the central elements of a Rate Plan.

SERVICE

Anything - directly or indirectly related to the use of a telecommunications network - that a network provider offers to customers, and that can be rated according to the rules specified in the customer's rate plan, and that can be billed to the customer.

SUBSCRIBER



The person who signs a contract agreeing to receive and pay for the services offered.

4.24.2 V-NUV-NU

CORPORATE ACCOUNT

A customer that belong to a large company or organization in VNU system. Corporate account has a group member under the structure. This is define as Large account in BSCS

INDIVIDUAL ACCOUNT

Independent subscribers that not are belong to any organization or hierarchy. This is define as flat subscriber in BSCS

MOBILE NUMBER

Telephone number, which is, defines as directory number for BSCS.

SCHEME

Sets of services that offer to the subscriber on a network that is define as Rate plan in BSCS.

PACKAGE

Groups of services that offer in a scheme that is define as service package in BSCS.



55 BUSINESS PROCESSBUSINESS PROCESS

5.15.1 Overall Collection HandlingOverall Collection Handling

5.1.15.1.1 Current ProcessCurrent Process

In TMIB, CSR generate all charge in VNU system. Customers make the payment to the nearer bank counter. The bank will send a hardcopy report or an input file to TMIB within a month. This input file will later process by back-end system for bill payment update. Other transaction will be key into the system manually by Credit control department. However, charges like connection fee, royalty fee, license fee, SIM fee and VAT sum together as a single charge in bill.

5.1.25.1.2 Propose ProcessPropose Process

Similar as current process, CSR generate charges by issuing OCC, subscription fee, access and other from customer care module. At end of each day some of the bank will provide an input file to TMIB for payment upload. This file should be process by BSCS PIH as advance payment. For hardcopy reports Collection department enter into AR as advance payment.

For the details of payment uploading and PIH file format, refer to “FSP TMIB 02 PIH v1-1.doc”.

4.1: Collection process



• Connection fee

• SIM change fee

• Mobile number change fee

• Regional change fee

• Ownership change fee

• Reconnection fee

• Royalty fee (Annual)

• License fee (Annual)

• Market transfer fee

• Scheme change fee

CSR

Bank

Hardcopy Report

Credit control

BSCS

Upload payment

PIH

Input file

5.25.2 New Registration FeeNew Registration Fee

5.2.15.2.1 Current processCurrent process

VNU generate a fix list of charges for a new registration fee. However, in customers’ bill it is printed as “Adjustment” for new registration fee. The charges for new registration are connection fee, SIM fee, Royalty fee, License fee, Security deposit and VAT.


All registration related one-time fees will be configured as subscription fees in BSCS. While creating a new contract, an invoice - Contract-based bill will be printed automatically. CSR may use this print out to replace the current invoice. All charges and deposit will be reflected into the subscriber immediately. However, security deposit is not printed in the “Contract-based bill”. It is printed as separate sheet. All printed items will NOT be display again on the month-end bill. In other word, Connection fee, SIM fee, Royalty Fee and License fee will NOT printed in the subscriber month-end bill.

5.35.3 Scheme Migration Scheme Migration


Currently, VNU involved two actions for scheme migration. First, is to refund all fees and deposit from the old scheme. Second, recharge all fees and deposit from the new scheme.

See the below example, if subscriber request to migrate from scheme 125 to 127. A total of Tk 5325 will be refund to the subscriber and Tk 8835 is charged into the subscriber account. Problem on this business process is if a higher charge scheme migrates to a lower charge scheme. The extra changes will be refunded and it may cause a loss to the company. For example, a subscriber migrated from scheme 127 to scheme 125. Basically this subscriber has been enjoying free charges on scheme 127 from the time of subscription.



Scheme

Fee/Deposit

Scheme 125 Scheme 126 Scheme 127

Deposit 2500 2500 5000

Connection 1000 1100 1500

SIM 500 600 260

Royalty 1000 1000 1000

License 100 100 100

VAT 225 540 975

Total 5325 5840 8835

5.3.25.3.2 Propose processPropose process

TMIB may want to consider do NOT perform any kind of re-fund for one-time charges when new rate plan charge is lower then the old rate plan. Additional charges can issue via OCC.

If new rate plan deposit is higher then the original rate plan, user may make the deposit request on the different in Customer administration module. On the other hand, if the new rate plan deposit is lower, TMIB offer three options to the customer:

1. Refund

2. Keep as additional deposit for higher credit limit

3. Use the extra amount to off set current outstanding

For example,

If subscriber update from scheme 125 to 127. CSR will refund Tk 5325 through OCC. Re-issue all charges in OCC. And make the additional deposit request.



5.45.4 Annual FeeAnnual Fee

There are two types of annual fee Royalty fee and License fee. For every new subscription, system will perform the initial annual fee will be performed automatically. For the subsequence year, this fee should be recurring by a back-end process. Refer to “FSP TMIB 12 Annual Fees v1-1.doc” for detail.

5.55.5 Account Barring Account Barring


There are two categories of classes: one is auto credit control class and the other is manual credit control class. The credit limit check of a subscriber is depends on which class he is in.

Manual credit control is by the way of reports, which comprise two reports:

4. Credit status report exceeding 100% for all class

5. Credit status report exceeding 100% only for manual controlled class

Using this reports Aktel will decide to take action manually against those subscribers. No system intervention involved. ACCS is developed as a GUI tool for the credit administration department to execute certain operation pertaining to the subscribers credit limit.

The actions are briefed below:

Subscribers are defaulted to a credit limit for example Tk 1000, but the subscribers can increase their credit limit by paying more deposit, let say if the subscriber pay Tk 5000 deposit, then his total credit limit will be Tk 6000.

ACCS mainly has 6 steps:

1. Produce list of subscriber who reached 80% of their credit limit and need to be sent an alert SMS.

2. Product list of subscribers who reached 100% credit limit and need to continue with other actions

Once reach 100% limit, impose barring outgoing and BTTB incoming

3. 7 days after the 100% credit limit reached, impose both way barring.

4. 14 days after 100% credit limit reached, Dunning Letter 1 sent

5. 30 days after 100% credit limit reached, Dunning Letter 2 sent

6. 90 days after 100% credit limit reached, Permanently deactivate the subscriber



ACCS is executed from a front end screen by the credit control department, whereby the first step in ACCS is to produce a list whereby this list contained the subscribers who has reached 80% of their credit limit, and those who have reached 100% of their credit limit. This list will be inserted into a table, which has the set of actions (1 – 7) and the action date calculated base on the days mentioned above (the number of days are configurable).

For the 80% list, ACCS will write to another table the alert SMS message to be sent and the mobile number of the subscriber and the SMSC number, another application “Message Alert” will read this table and send the SMS to the subscribers.

For 100% list, the subscriber will have the subsequent actions to be take which is (step 2 – 7)

ACCS has the front-end screen for execution of each actions, once the action button is clicked then only the action will be executed.

Action buttons available are:

Barring outgoing and BTTB incoming

Both Way Barring

Dunning Letter 1

Dunning Letter 2

Permanent Deactivation

When the actions are executed, ACCS will check the action date, which are equal or less than the system date and proceed the actions for that list. For Barring, ACCS will write a request in the provisioning table for the specific actions. For the Dunning Letter, ACCS will print a letter by itself, For permanent deactivation, ACCS will update all subscriber information table as deactivated and write a request in provisioning table.

To support automatic unbarring when a payment is made, an insert trigger is attached to the payment table. When payment record is inserted into payment table, the trigger will check the total outstanding (current + unbilled) with credit limit, if the total outstanding is less than credit limit, the subscriber will be removed from action list table in real time. A copy of the records in action list will be backed to history table.



5.5.25.5.2 Proposed ProcessProposed Process

Account barring is following the current process. A customize back-end application handling barring process. For detail, refer to “FSP TMIB 09 ACCS v1-0.doc” and “TMIB Business Process – CA v1.4.doc”.

5.65.6 Hassan & CoHassan & Co


Hassan & Co sharing certain percentage of airtime revenue with TMIB. For instance, a total airtime charges of all subscribers under Hassan & Co is Tk.50000, then TMIB only charge Hassan & Co Tk 25,000 only. This adjustment is done manually by the accounting department in foreign accounting system and not related to VNU billing system.


There are 20 groups of large account created Hasson & co. Each large account is the only payment responsible. For the bill payment, the revenue that shares with Hassan & co should be enters as an adjustment. For instance, the total charge for Hassan & co is Tk 50,000. Tk 15,000 is Hassan & co airtime revenue. Credit control will enter a Tk 35,000 as Hassan & co bill payment, and Tk 15,000 adjustment in AR OR submit a PIH format input file for adjustment.

5.75.7 Payment ModePayment Mode

5.7.15.7.1 Current Process Current Process

All the payments are treated as cash payment since the payment are received from Bank as payment voucher once the monetary value is accepted from the subscribers. If a cheque is issued, until it is converted into money then only the bank gives the payment voucher to finance department. Therefore, TMIB treats all payment as cash receipt.


BSCS will continue the same process or make full use of the electronic payment interface to automate this process. The payment posting can be done either via AR module, or via PIH batch process. The PIH input file has to be prepared by either TMIB or the bank itself. However, the agreement with bank/collection agencies needs to be in place. Currently, Atos provide one format of exchange file. All payments will be posted into one Cash GL account, instead of each GL account for each collector. This is due to the constraint of PIH, whereby PIH post all payment into default cash GL account. Still, a report



will be prepared everyday showing the total amount collected by each collection agency.

5.85.8 Special PackageSpecial Package


There is a special package whereby the airtime charges are zeroed but the charges would be keep track by the finance department for their reporting purpose.


A 100% discount on airtime charges promotion package will be attached to the specific rate plan. Therefore, who ever subscribers applicable for the package will get the 100% discount on air charge which will be zero charge. In the bill, the discounted call charge will be shown. TMIB can access the record via Customer Administration module, which will show the breakdown of call charge and discount given. As such, TMIB will have to actual call charges book into usage GL account and the discount given booked into promotion (discount) GL account.

5.95.9 Minimum CommitmentMinimum Commitment


Another package in VNU is the minimum commitment whereby the subscriber has to pay the committed airtime charges if not, additional charges would be levy to come up to the committed charges, if the airtime charges are more then committed charge then the actual amount would be charged.


The same process would be implemented and followed in BSCS. This can accomplish with Minimum Commitment promotion in BSCS.

5.105.10 Deposit RefundDeposit Refund


When a subscriber, terminate his subscription, then his outstanding will be set off by the deposit that he already paid.




In BSCS, this can be achieved with the online module Account Receivable. The deposits have to be converted into advance cash using Accounts Receivable module. After converting to advance cash entry, it can be used to set off the outstanding invoice using Account Receivable or it will be automatically settle the oldest invoice by billing process (BCH).

Very often, some service providers submit call charge after subscriber bill run. It is advisable to refund security deposit after 90 days of termination.

5.115.11 Value Added TaxValue Added Tax


TMIB has implemented a fix 15% tax on all revenue. Some of this VAT has not been reflected under the right GL and account. Therefore, finance department has to manually identify the tax and revenue currently. For instance, SIM change fee is Tk. 2000, and VAT is Tk. 300. TMIB is charging Tk. 2300 as SIM change fee.


All revenues are subject to 15% government tax. BSCS will compute the tax on every bill run. Therefore all fees and charges should NOT include tax amount. For instance, SIM change fee is Tk. 2000, and VAT is Tk. 300. Propose to charge on Tk 2000 when customer request for a SIM change. Tax Tk 300 should be charge as another item.

5.125.12 GL Account MappingGL Account Mapping


Currently there is no GL accounts concept in VNU billing system. Finance department, will prepare a report based on the billing control report from VNU to segregate the revenue into different GL account in their accounting system. Finance department has segregated their revenue base on components like, Airtime Aktel, BTTB, etc….

5.12.25.12.2 New ProposedNew Proposed

BSCS allows the users to define GL account for revenue, asset, liability and expenses. It depends how TMIB would like to segregate the revenue and expenses component. Each component will be identified as a GL account code, which TMIB has to provide to the integration team for the configuration purpose. Once the GL accounts are configured, then the posting will allocate the cost and revenue to each configured GL accounts. For example, revenue can be



segregated to the level of how much access fee, subscription fee, and usage charge for a service. Currently the GL codes contain 8 characters of alphanumeric. For example: R001S001

R - revenue account

001 - service code (telephony)

S - Subscription

001 - revenue

For GL code structure, refer to “TMIB GLCODE_BSCS1DATE_FINANCE_v1.2.xls”.

After each bill-cycle run, an interface program will provide the information for each GL code by bill group, which will be used by ACCPAC for normalization.

5.135.13 Posting to AccPacPosting to AccPac


TMIB uses AccPac for account consolidation. All revenue and collection are keying manually by finance department.


Finance department should do a daily posting from AR to GL. TMIB will generate a collection report and a revenue file. Revenue file will be uploaded into AccPac by a new interface. For collection, finance department will enter into AccPac manually. Any amendment after the posting should issue as an adjustment transaction in AR module.



66 REFERENCE DOCUMENTREFERENCE DOCUMENT

FSP TMIB 02 PIH v1-1.doc

FSP TMIB 12 Annual Fees v1-1.doc

FSP TMIB 09 ACCS v1-0.doc



77 ACKNOWLEDGEMENTACKNOWLEDGEMENT

This is to acknowledge that Atos Origin and TMIB have read and understood the contents of this document. This document will be used as a reference document to determine the scope of activities for Atos Origin to perform for Accounting Data Migration. Upon agreement between Atos Origin & TMIB on this document, the document will be incorporated into the final version of the TMIB Concept Document

Any changes to this document after the signature date will need to be discussed, and approved by both Atos Origin & TMIB.

Rachel Ong Zurlani Harun

Atos Origin TM International,Bangladesh

Application Architect General Manager, IS/IT

Goh Chear Kuang M.Hamdan A.Hamid

Atos Origin TM International, Bangladesh

Project Manager Project Manager

Md. Mijanur Rahman

TM International, Bangladesh

Manager, IT



__________________________

Dewan Nazmul Hasan


Head of CC & FM

__________________________

Md. Golam Mostafa


Manager, Credit Control

__________________________

Md. Mahamud Hosain


Head of Finance

__________________________

Md. Enamul Haque


Manager, Finance

__________________________

Sendijins Ngadimon


Revenue Assurance



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