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We placed our requirement of Financial Statements along with schedules one year before (please check mail dated 06.11.2012) by mentioning day one requirement and also provided soft copy of the Accounts 2011to KPMG for ready reference. We mentioned you several times that as a listed company we have some regulatory bindings we do require to prepare financial statements along with schedules and consolidation on a monthly basis but now it seems to me that we have failed to make you understand our requirements when we hear from you at this stage “There are 16 schedules and our team has understood 5 of them. business wise
After the finalization of COA values, we will discuss the remaining 11 schedules and understand their mappings. Since all the schedules are not immediately required after go-live ( it will be required not before 31-Dec-2014, assuming that we are going live in Jan-2014), we will plan for their delivery during the Post GO-LIVE support period.” We like to remind you again that we like to see demonstration of Financial statements along with schedules in UAT otherwise it will be tough to get finance approval for GO-Live. You can use dummy data (may be data of 2012) for UAT.
You are well aware that we are going to shift from standard costing to actual costing, lot of schedules we are currently maintaining outside the system (PB-3 : related to manufacturing overhead, B-8 : related to administrative selling & distribution overhead) due to following standard costing system. For actual costing we have incorporated all the accounts head in the COA, as expert KPMG shall have to check whether the COA fulfills plant wise, and cost center wise actual costing requirements, also requirements of financial statements, related schedules and reports. If incorporation of any accounts head like control account in COA, KPMG shall have to advise Renata and design the system accordingly. KPMG have to ensure and demonstrate in UAT by generating financial statements along with schedules and reports using dummy data that everything done as per accounting standards then Sonata will finalize COA values.
You are well aware that we are going to shift from standard costing to actual costing, lot of schedules we are currently maintaining outside the system (PB-3 : related to manufacturing overhead, B-8 : related to administrative selling & distribution overhead) due to following standard costing system. For actual costing we have incorporated all the accounts head in the COA, as expert KPMG shall have to check whether the COA fulfills plant wise, and cost center wise actual costing requirements, also requirements of financial statements, related schedules and reports. If incorporation of any accounts head like control account in COA, KPMG shall have to advise Renata and design the system accordingly. KPMG have to ensure and demonstrate in UAT by generating financial statements along with schedules and reports using dummy data that everything done as per accounting standards then Sonata will finalize COA values.
