Process Manual

EMPIRE EAST LAND HOLDINGS, INC.
USER REFERENCE MANUAL
Preparation of Audit
Schedules
Created by : Lyra Nicole Saludaga and Celeste Declines

Issue Date :
Last Change by :
Revision Date :
Version : 1.0
Preparation of Sales Report
Table of Contents
1. Change History…………………………………………………………………………………………………………..2
2. Introduction……………………………………………………………………………………………………………….2
2.1. Purpose………………………………………………………………………………………………………………2
2.2. End-user…………………………………………………………………………………………………………… 2
2.3. Due date of submission………………………………………………………………………………………2
3. Transactions……………………………………………………………………………………………………………….2
3.1. Preparation of Sales, Cost of Sales & Back out Sales……….………....………….…………..2
3.2. Preparation of Sales Report……………………………………………………………………………….5
3.3. Preparation of accounting entries…………………….....…………………………………….…….28
3.4. Variance Checking…………………………………………………………………………………………….33
4. Attachments….……………..………………………………………………………………………………………....36
5. Approval, post approval procedures, and filing…………………………………………………………36
Page | 1
1. Change History
Version Date Reviewer Remarks/Comments
2. Introduction
2.1. Purpose
Audit Schedules are prepared in order to provide guidelines to the organization in preparing
specific information presented in a specific way that assists the audit. This is done to ensure
sufficient compliance with the requirements of the management and to track and improve
efficiency of operational processes.
2.2. End-user
Management
The report helps the management to make decisions for the company.
Stakeholders
2.3. Due date of submission
The reports should be submitted to the management by the end of the month following the
year ended.
Page | 2
3. Transactions
3.1. Preparation of Sales, Cost of Sales & Back out Sales
3.1.1. Generate contracts for the year from SAP Transaction Code: ZRER011
Initial Screen: Contract Status
Input the following for Contract Status initial screen:
Field Values
Company Code 1000
Contract
Business Entity TRP (Project code)
Contract Type
Execute. Click
Page | 3
Right click ‘User Status’ column and click ‘Set Filter’.
Click .
Click to export file to spreadsheet.
Save to the desired file location.
3.1.2. Get all the contract number of booked accounts and identify year booked as
sales from SAP Transaction code: RECARSCN
Page | 4
Initial Screen: Process Reminder Dates for Contracts
Input the following for Process Reminder Dates for Contracts initial screen:
Field Values
Company Code 1000
Contract Input all the booked contract numbers
Delete details in the Selection of Reminder Dates and Click Open and Completed
Execute. Click
Page | 5
Right Click ‘Resubmission Reason Name’ and click ‘Set Filter’

Input ‘Booked as Sales’ in the description.
Right Click ‘Status Date’ and click ‘Set Filter’

Filter out the year needed for the report.
Click .
3.1.3 Prepare the report with the following details and format:
a. Buyer’s Name
b. Rental Object
c. Contract Number
d. Sales
e. Cost of Sales
f. Selling Price Ex Vat
g. Area
h. Year Booked as Sales
Page | 6
3.1.4 Generate required details in SAP.
3.1.4.1 Generate ‘Rental Object‘ and ‘Area’ in Transaction Code: REISMSCN.
Initial Screen: Measurements for Contract Objects
Page | 7
Input the following for Measurements for Contract Objects initial screen:
Execute. Click .
Click and choose ‘Spreadsheet’ to generate excel file.

Page | 8
3.1.4.2. Generate ‘Sales’ and ‘Cost of Sales’ in Transaction Code: FBL3H.
Initial Screen: G/L Account Line Item Browser
Input the following for Info System: Contracts initial screen:
Field Values
Company Code 1000
G/L Account 4110010, 4110020, 4110060, 4110070,
5110010
All items 
Posting Date To: Last day of the year of the report
Restrictions Insert all Contract Numbers
Page | 9
Execute. Click .
Page | 10

3.1.5 Fill out columns in the report.
Page | 11
3.2 Preparation of Accounts Receivable Confirmation
Accounts Receivable Confirmation is one of the external audit requirements requested by the
company’s external auditor to confirm the correctness of our records.
External Auditor will provide us the list of their samples and template for us to accomplish.
Page | 12
3.2.1. After receiving the list, prepare the confirmation with the template provided.
Page | 13
3.2.1.1. Generate ‘Adressee Name’ and ‘Address’ in Transaction Code RECN.
Initial Screen: Contract
Input the following information:
Company Code: 1000

Contract: ( Contract Number provided in the sample)
Page | 14
Click ‘Partners’ and copy the address provided in SAP.
3.2.1.2. Confirm the amount of Accounts Receivable provided by the auditor in
Transaction Code: ZREF_BPS.
Page | 15
3.2.1.3 Fill out the template with the details generated in SAP.
Page | 16
Page | 17
Execute. Click .

3.2.2.7. Generate ‘Total Collection’ in Transaction Code: ZFIR011.
Initial Screen: Collection Report
Page | 18
Input the following for Collection Report initial screen:
Field Values
Company Code 1000
Fiscal Year 2021
Receipt Date to 03/23/2021
Contract Number *contract numbers*
Business Entity KUR
Execute.Click .
Page | 19
Right click ‘Payment Description’ column and click ‘Set Filter’. Input the following principal
related description:
1. RESERVATION FEE
2. MA-PRINCIPAL
3. DOWNPAYMENT
4. LUMP SUM
5. TURNOVER BALANCE
Click .
3.2.2.5. Generate ‘General Ledger’ in Transaction Code: FBL3H.
Initial Screen: G/L Account Line Item Browser
Page | 20
Input the
following for
G/L Account
Line Item
Browser
initial
screen:
Field Values
Company Code 1000
G/L Account Advances from customers, AR Partial, Output
Vat Payable
All Items
Posting Date to 03/23/2021
Restrictions *Contract numbers*
Page | 21
Execute. Click .
Execute. Click .
Page | 22
Right click Contract Number and G/L: SText while pressing “ctrl” and click Subtotal.
Page | 23
Page | 24
Page | 25
Generate by clicking List -> Export -> Spreadsheet.
3.2.2.8. Generate ‘To be set up per RERAPP’ in Transaction Code: RERAPP.
Initial Screen: Periodic Posting: Contracts
Page | 26
Get variant by clicking and choose PA-RERAPP.
Page | 27
Input the
following for
RERAPP
initial
screen:
Field Values
Company Code 1000
Posting Date *date of last working day for the month*
Document Date *date of last working day for the month*
Posting Period *month number*
Page | 28
Execute. Click .

3.2.3. Fill out columns in the report.
Page | 29
Page | 30
3.3 Preparation of accounting entries
3.3.1 Formula for Sales entry
a. Advances from customers

= [(Advances from customers per GL + Advances from customers per to be set up per
RERAPP)*-1]
b. Cost of Sales
= (Cost per SQM * Area * Percentage of completion)
c. Sales
= [(Selling Price ex VAT * Percentage of Completion)*-1]
d. Output VAT
= [(Value Added Tax – Output VAT per GL – Output VAT per to be set up per RERAPP)*-
1]
e. AR PFRS15
=Advances from customers per to be set up per RERAPP
f. Contract Asset
= Sales per Sales Entry
g. Contract Liability
= (Advances from customers per GL + Output VAT per GL)
Page | 31
3.3.2 Entry
3.3.2.1 Sales entry for EXEMPT accounts.
Page | 32
3.3.2.2 Sales entry for VATABLE accounts.
Page | 33
Page | 34
3.3.2.3 Sales entry for VATABLE PARKING accounts.
3.4 Variance checking
Page | 35
3.4.1 Total Collections should be equal to Total GL
Check what causes the variance.

Assumptions:
a. If Total Collection > Total GL, there might be unrerapped condition. Check for possible
open items and rerapp set up condition.
b. If Total Colelction < Total GL, there might be rerapped condition but no payment yet.
Check for possible open item and rerapprv the said condition.
c. If other reasons for variance exist, analyze the cause and endorse to DMG for proper
adjustment of account.
3.4.2 AR Current in to be set up per RERAPP should be equal to Balance less AR partial per GL.
Page | 36

Assumptions:
a. If AR current in to be set up per RERAPP > Balance less AR Partial, either Net Selling Price
or Total Collections might be misstated. Check proper amounts and coordinate to DMG
for proper adjustment.
b. If AR current in to be set up per RERAPP < Balance less AR Partial, there might be
incomplete set up of conditions.
c. If other reasons for variance exist, analyze the cause and endorse to DMG for proper
adjustment of account.
3.4.3. Selling Price ex VAT should be equal to Advances from customers per Sales Entry +
Output VAT Payable per Sales Entry.
Page | 37

Assumptions:
a. If Selling Price ex VAT </> Advances from customers + Output VAT Payable, total set up
conditions might not be equal to statistical conditions. Adjust Selling Price ex VAT by
following total set up conditions.
*usually, only decimal amount varies here.
b. If variance is more than a peso, there might be an overpayment, of which amount will
be retained in Advances from Customers.
4. Attachments
Page | 38
All generated files should be attached to the sales report.
Details in the report should also be linked to the individual attached generated files.
5. Approval, post-approval procedures, and filing

5.1. Approval
The report should be sent to Supervisor for checking, to Manager for review, and to
AVP-Controller for approval.
After the report is approved, preparers will be informed to execute RERAPP of the
accounts.
5.1.1. Execution of RERAPP in Transaction Code: RERAPP.
Initial Screen: Periodic Posting: Contracts
Page | 39
Get variant by clicking and choose PA-RERAPP.
Input the following for RERAPP initial screen:
Field Values
Company Code 1000
Document Date *date of last working day for the month*
Page | 40
Execute. Click .
Page | 41
Check if Total Gross amount is the same with the previously
generated RERAPP.
A. If equal, execute RERAPP.
Click .
Change Posting Run Mode from Simulation to Update Run
Page | 42
Execute. Click .
B. If not equal, there might be posted payments after cutoff date that needs to be resetted
and conditions that needs to be reversed. Check for payments from cutoff date to
execution date to Transaction Code: ZFIR011.
Page | 43
a. Reset payments. Execute in Transaction code: ZFIT008
Initial Screen: Mass Reversal for Cleared Documents
Input the following for ZFIT008 initial screen:

Field Values
Company Code 1000
Document Number *receipt numbers*
Fiscal Year 2021
Reason for Reversal 01
*Never forget to tick .
Page | 44
After approval, the report will be sent to General Accounting for execution of Sales
entry in SAP.
5.2. Filing
After approval and execution of entry, General Ledger should be checked in SAP if
Sales Entry were properly recorded. Sales Report for the Year and Sales, COS in unit &
in Peso will also be updated.
Page | 45

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EMPIRE EAST LAND HOLDINGS, INC.

USER REFERENCE MANUAL

Created by : Lyra Nicole Saludaga and Celeste Declines

Version Date Reviewer Remarks/Comments

2.3. Due date of submission

Initial Screen: Contract Status

Input the following for Contract Status initial screen:

Right click ‘User Status’ column and click ‘Set Filter’.

Initial Screen: Process Reminder Dates for Contracts

Right Click ‘Resubmission Reason Name’ and click ‘Set Filter’

Right Click ‘Status Date’ and click ‘Set Filter’

3.1.4 Generate required details in SAP.

3.1.4.1 Generate ‘Rental Object‘ and ‘Area’ in Transaction Code: REISMSCN.

Initial Screen: Measurements for Contract Objects

Click and choose ‘Spreadsheet’ to generate excel file.

3.1.4.2. Generate ‘Sales’ and ‘Cost of Sales’ in Transaction Code: FBL3H.

Initial Screen: G/L Account Line Item Browser

Input the following for Info System: Contracts initial screen:

Click and choose ‘Spreadsheet’ to generate excel file.

3.1.5 Fill out columns in the report.

3.2 Preparation of Accounts Receivable Confirmation

3.2.1.1. Generate ‘Adressee Name’ and ‘Address’ in Transaction Code RECN.

Initial Screen: Contract

Input the following information:

Company Code: 1000

Click ‘Partners’ and copy the address provided in SAP.

3.2.1.2. Confirm the amount of Accounts Receivable provided by the auditor in

Transaction Code: ZREF_BPS.

Click and choose ‘Spreadsheet’ to generate excel file.

3.2.2.7. Generate ‘Total Collection’ in Transaction Code: ZFIR011.

Initial Screen: Collection Report

3.2.2.5. Generate ‘General Ledger’ in Transaction Code: FBL3H.

Initial Screen: G/L Account Line Item Browser

Generate by clicking List -> Export -> Spreadsheet.

Save to the desired file location.

3.2.2.8. Generate ‘To be set up per RERAPP’ in Transaction Code: RERAPP.

Initial Screen: Periodic Posting: Contracts

Get variant by clicking and choose PA-RERAPP.

Click and choose ‘Spreadsheet’ to generate excel file.

3.2.3. Fill out columns in the report.

a. Advances from customers

3.3.2.2 Sales entry for VATABLE accounts.

3.4 Variance checking

Check what causes the variance.

Check what causes the variance.

Check what causes the variance.

5. Approval, post-approval procedures, and filing

5.1.1. Execution of RERAPP in Transaction Code: RERAPP.

Initial Screen: Periodic Posting: Contracts

Input the following for RERAPP initial screen:

Change Posting Run Mode from Simulation to Update Run

a. Reset payments. Execute in Transaction code: ZFIT008

Initial Screen: Mass Reversal for Cleared Documents

Input the following for ZFIT008 initial screen:

*Never forget to tick .

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