irctc finance internship project

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Summer Internship Project
WORKINGS WITH ERP IN IRCTC
(BENEFIT OF ERP IN WORKINGS )
Submitted in partial fulfillment of PGDM program
2013-15
Submitted by
Name
Corporate Mentor Faculty Mentor-
Name Name

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ACKNOWLEDGEMENT
At the completion of my project, I would like to take this opportunity to thank all those who
have extended their support in the smooth completion of this project. I express a deep sense of
gratitude to Mr. Rahul Gupta sir (jgm finance) for entrusting me with the responsibility of this
project.
I would also take this opportunity to thank the members of the finance department namely Mr. Rahul
Bhatia, Ms. Muskan Arora, Mr. Bhagwan Das Mishra , for helping me throughout this project
I also take this opportunity to express my profound gratitude to all those respondents who made this
project successful by cooperating with me.
THANKS

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INDEX
S.NO PARTICULARS PAGE NO
1 EXECUTIVE SUMMARY 7
2 CH 1: AREA OF INTERNSHIP AND
LEARNING OBJECTIVES
 1.1 LITERATURE REVIEW
 1.2 LEARNING OBJECTIVE
11
11
19
3 CH 2: PROFILE OF THE ORGANISATION
 2.1 INTRODUCTION
 2.2 VISION
 2.3 MISSION
 2.4 ORGANISATIONAL STRUCTURE
 2.5 PRODUCT LINES
 2.6 COMPETITIVE POSITION IN
THE MARKET
 2.7 FINANCIAL AND
PROFITABILITY POSITION
 2.8 HR SYSTEMS
 2.9 CURRENT CHALLENGES
 2.10FUTURE PROSPECTS
20
20
20
20
21
27
30
31
32
32
4 CH 3: JOB DESCRIPTION AND
FUNCTIONAL PROFILE
 3.1 REPORTING RELATIONSHIPS
 3.2 WORK ENVIRONMENT
 3.3 JOB CHALLENGES
34
34
34
5 CH 4: LEARNING EXPERIENCE AND
INSIGHTS GAINED
 4.1 PART I –BUSINESS PROCESSES
LEARNED AND INSIGHTS GAINED
 4.2 PART II- ANALYSIS AND
EVALUATION OF BUSINESS
PROCESSES
 4.3 PART III- PROFESSIONAL
SKILLS ACQUIRED
35
35
49
50
6 CH 5: RECOMMENDATIONS AND 51

4. 4
CONCLUSIONS
7 REFERENCES 54

5. 5
EXECUTIVE SUMMARY
Many organizations have an urgent need to integrate information driven by customer-care and/or
competitive pressures. Badly organized information also inhibits organizations’ growth. In tough
times, the need to respond quickly and flexibly to market changes becomes necessary for survival:
opportunities to acquire new business should not be Discontinued for want of the right systems and
processes. Organizations can’t afford to have valuable employees spending time looking for vital
information or struggling with clumsy systems that cannot adapt to changing business requirements.
The information required for decision-making should be readily accessible so that every business
division – production, sales and marketing, finance and HR – knows exactly what action needs to be
taken. This implies a centralized IT infrastructure in which all processes across all applications are
integrated into one database and link seamlessly, This can be called as an ERP system that an
Organization needs to work effectively.
ERP is a business management software—usually a suite of integrated applications—that a company
can use to collect, store, manage and interpret data from many business activities. ERP provides an
integrated view of core business processes, often in real-time, using common databases maintained
by a database management system. ERP systems track business resources—cash, raw materials,
production capacity—and the status of business commitments: orders, purchase orders, and payroll.
Organizations consider the ERP system a vital organizational tool because it integrates varied
organizational systems and facilitates error-free transactions and production.
Enterprise Resources Planning (ERP) can be dated back to 1970’s. It starts from Materials
Requirements Planning (MRP) as a new computer-based approach for organizations to planning and
scheduling of material requirements and inventory, featuring the time-phased order point. In
1990, Gartner Group first used the acronym ERP as an extension of material requirements
planning (MRP), later manufacturing resource planning and computer-integrated manufacturing.
Without replacing these terms, ERP came to represent a larger whole that reflects the evolution of
application integration beyond manufacturing. Not all ERP packages developed from a
manufacturing core. Vendors variously began with accounting, maintenance, and human resources.
By the mid–1990s ERP systems addressed all core enterprise functions. Governments and non–profit
organizations also began to use ERP systems
IRCTC, the organization in which I worked as an intern has Oracle 11i e-business suite to meet their
daily needs and solve the problem of data disintegration, as with ERP data can be integrated into one
business suite and information can be accessed from here anytime anywhere .In an ERP system
information is updated by the users in real-time and is accessible at any time to anyone who needs it.
ERP (Enterprise Resource Planning) systems typically include the following characteristics:

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 An integrated system that operates in (or near) real time without relying on periodic updates
 A common database that supports all applications
 A consistent look and feel across modules
 Installation of the system without elaborate application/data integration by the Information
Technology (IT) department, provided the implementation is not done in small steps.
IRCTC is using customized ERP software (Oracle 11i) , ERP vendors do offer customers
configuration options that let organizations incorporate their own business rules, but often feature
gaps remain even after configuration is complete.
ERP customers have several options to reconcile feature gaps, each with their own pros/cons.
Technical solutions include rewriting part of the delivered software, writing a homegrown module to
work within the ERP system, or interfacing to an external system. These three options constitute
varying degrees of system customization—with the first being the most invasive and costly to
maintain. Alternatively, there are non-technical options such as changing business practices or
organizational policies to better match the delivered ERP feature set. Key differences between
customization and configuration include:
 Customization is always optional, whereas the software must always be configured before use
(e.g., setting up cost/profit center structures, organisational trees, purchase approval rules, etc.).
 The software is designed to handle various configurations, and behaves predictably in any
allowed configuration.
 The effect of configuration changes on system behavior and performance is predictable and is the
responsibility of the ERP vendor. The effect of customization is less predictable. It is the
customer's responsibility, and increases testing activities.
 Configuration changes survive upgrades to new software versions. Some customizations (e.g.,
code that uses pre–defined "hooks" that are called before/after displaying data screens) survive
upgrades, though they require retesting. Other customizations (e.g., those involving changes to
fundamental data structures) are overwritten during upgrades and must be reimplemented.
IRCTC has customized ERP (Oracle 11i ) that serves the organization in 4 different areas i.e.-
 HRMS and payroll- The Oracle Human Resource Management Systems (HRMS) helps to
achieve a well-managed human resource system, turning HR management into a strategic
advantage. HRMS is an e-business way of transforming the people management role with
Internet technology.
 Accounts Receivable- - Oracle Receivables provides three integrated workbenches that you
can use to perform most of your day–to–day Accounts Receivable operations

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 You can use the Receipts Workbench to perform most of your receipt–related tasks. For
example, to create receipt batches and enter, apply, reverse, reapply and delete individual
receipts. You can also use this workbench to create chargeback and adjustments.
 The Transactions Workbench is used to create new and update existing invoices, debit
memos, credit memos, on–account credits, chargeback, and adjustments. This workbench
can also be used to enter, review, or complete transaction, copy invoices, create
adjustments, credit transactions and review invoice installments.
 The Collections Workbench lets you review customer accounts and perform collection
activities, such as recording customer calls and printing dunning letters.
 Accounts Payables- Account Payables is a function for making payments. Anyone who
needs to be paid, an external vendor, internal employee or customer, will be defined as
supplier. Payables module interacts with other modules, such as Purchasing for matching
invoices to Purchase Orders or Receipts.
 General ledger- Oracle General Ledger enables universal accounting data management and
is a comprehensive financial management solution that enhances financial controls, data
collection, information access, and financial reporting throughout the enterprise. General
Ledger is the central repository of accounting information, receiving transactions from sub-
ledgers.
As a concept ERP has been around for a few decades, but even as late as five years ago, ERP
systems were too frequently synonymous with costly budget over-runs and missed deadlines.
software was proprietary, monolithic, expensive to purchase and required radical alteration to fit an
organization’s requirements. Integration tools were difficult to use and the skills required were the
preserve of the software vendor or a small number of high-end consultancies. This served to increase
costs to customers by a factor of three to five times the purchase cost of the software. The time lag
between the specification for the ERP system and its go-live date was measured in months and too
often even in years, by which time the needs of the business had changed radically from the original
specification. The Impression is also that a conventional ERP system requires a small army of IT
professionals to keep it running. To add to the situation, the current economic climate dictates that
capital is not available to invest in it infrastructure and existing assets must be exploited to the full.
However, the advent of rapid ERP implementation programs and tools has changed this dynamic.
Organizations can benefit enormously from ERP systems without the associated drawbacks of
complexity and expense. Most ERP systems incorporate BEST PRACTICES. This means the software
reflects the vendor's interpretation of the most effective way to perform each business process.
Systems vary in how conveniently the customer can modify these practices. Companies that
implemented industry best practices reduced time–consuming project tasks such as configuration,
documentation, testing, and training. In addition, best practices reduced risk by 71% compared to
other software implementations.
So, Rather than ‘waiting for the economy to improve’, Organizations can respond to the need for
integrated information and the pressures of stringent economic times through ERP.
With this project I attain to show the working of ERP(Oracle) in the Organisation in which I am
working, how they record their day to day transactions with ERP, the benefits it is giving to the

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organization and also what could be the possible drawbacks. However at the end Its benefit overcasts
all its drawbacks

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CH 1: AREA OF INTERNSHIP AND LEARNING OBJECTIVES
ERP (ENTERPRISE RESOURCE PLANNING) IN IRCTC AND ITS OTHER
WORKINGS.
1.1 LITERATURE REVIEW
Introduction
As ERP implementation is information systems usage in organizations to help integrating all
the functions to enhance the organizations performance, ERP planning is not only a software
installation problem, but also, a decision-oriented managerial issue. We need to explore and
understand principles in areas of decision sciences and organizational sciences to understand
ERP implementation. Therefore, in this chapter, we reviewed relevant scholarly articles,
books and other sources (dissertations and conference proceedings) as well as business
newsletters related to the topic of ERP implementation, ERP research models, constructs and
measurements, decision rules in decision making and methodologies for planning for
Management Information Systems (MIS).
Background:
ERP is an integrated set of software modules linked to a common database, handling basic
corporate functions. It attempts to integrate all departments and functions across a company
into a single computer system that serves different departments' particular needs such as
planning, manufacturing, accounting, distribution, sales, human resource, inventory
management, service and maintenance, transportation and e-business. ERP can be viewed as
a software solution that addresses the enterprise needs taking the process view of the
organization, to meet the organizational goals tightly integrating all functions of an enterprise.
Enterprise Resources Planning (ERP) can be dated back to 1970’s. It starts from Materials
Requirements Planning (MRP) as a new computer-based approach for organizations to
planning and scheduling of material requirements and inventory, featuring the time-phased
order point. Following MRP, during 1980’s to 1990’s, when labor and machine (resources)
planning were incorporated into MRP, it became known as Management Resource Planning
(MRPII). MRP II included distribution management, project management, finance, human
resource and engineering. At the beginning of 1990’s, MRPII evolved to Enterprise
Resources Planning (ERP) with new features of enterprise-wide inter-functional
coordination and integrating. With the evolution of ERP, software vendors added more
modules functions to core modules of ERP, including advanced planning and scheduling
(APS) and e-business solutions such as customer relationship management (CRM) and
supply chain management (SCM). ERP realized the seamless integration of all information
flows (Umble 2003), including financial and accounting information, human resource

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information, supply chain information and customer information.
About ERP – it is a business management software—usually a suite of integrated applications—that
a company can use to store and manage data from every stage of business, including:
 Product planning, cost and development
 Manufacturing
 Marketing and sales
 Inventory management
 Shipping and payment
ERP provides an integrated real-time view of core business processes, using common databases
maintained by a database management system. ERP systems track business resources—cash, raw
materials, production capacity—and the status of business commitments: orders, purchase orders, and
payroll. ERP facilitates information flow between all business functions, and manages connections to
outside stakeholders.
It facilitates error-free transactions and production. However, ERP system development is different
from traditional systems development. ERP systems run on a variety of computer
hardware and network configurations, typically using a database as an information repository
When ERP is successfully implemented, it promises significant business breakthrough doing
away with inconsistent data, incomparable formats, and uncooperative applications. It
(Robey, Ross, and Boudreau 2002) reduces operating costs, increases productivity and
improves customer services and inventory control. ERP is “integrated instead of
fragmented”. Umble (2003) stated that ERP allows organizations to have a more convergent
view of real-time information by integrating processes across functional departments; and it
also provides organizations an enterprise database where “all business transactions are
entered, recorded, processed, monitored and reported.” In addition, it increases departmental
corporation and coordination.
Research in ERP Implementation
To understand ERP, it is suggested to remember “integration”, which is ERP's true ambition.
Umble (2003) mentioned that the ultimate goal of ERP implementation is to improve
business performance, rather than the software installation. The ERP implementation is
viewed as a part of the company to help realize efficient and effective business performance.
The implementation should be directed by business requirements and objective.
ERP is a project; nonetheless, it has some special features comparing with other projects.

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Licker (1997) listed six special features of ERP including (1) high cost, (2) delayed benefits,
(3) intangible products at all stages of development, (4) rapidly changing technology, (5)
high risk of obsolescence, and (6) rapid turnover of systems professionals. Robey, Ross and
Boudreau (2002) stated that organizations often adjust slowly to ERP and ERP investments
are risky. Besson and Rowe (2001) claimed that the risks associated with information
systems project are always related to (1) the project’s size (number of people and sub-teams
requiring coordination), (2) the technical difficulties involved, (3) the ease with which it can
be integrated into a firm’s existing management system, (4) the diversity of the various
functions involved (its scope), and (5) the diversity of the competencies that its
implementation requires.
In addition, ERP is not just a technology installation; rather, it encompasses wider behavioral
factors. It is not entirely the same in different countries and areas. Differences stemmed from
the different history background, social context, cultural recognition, and unbalance of
technologies. In order to deal with change effectively, Esteves and Pastor (1999)
recommended that company establish a “change vision” in the given technical, social, and
organizational context.
Benefits
 ERP can greatly improve quality and efficiency of the business. By keeping a company's
internal business process running smoothly, ERP can lead to better outputs that benefit the company,
such as customer service and manufacturing.
 ERP supports upper level management, providing critical decision making information. This
decision support lets upper management make managerial choices that enhance the business.
 ERP creates a more agile company that better adapts to change. ERP makes a company more
flexible and less rigidly structured .
 ERP can improve data security. A common control system, such as the kind offered by ERP
systems, allows organizations the ability to more easily ensure key company data is not
compromised.
 ERP provides increased opportunities for collaboration. Data takes many forms in the modern
enterprise. Documents, files, forms, audio and video, emails.
Because of those potential benefits, most of the manufacturing companies invested time and
money for ERP implementation to replace the legacy systems, with the expectation of high
efficiency, competitive power and more profits. However, business world had witnessed
many failure stories in past years. The ERP failures include that companies are unable to (1)
accomplish process reengineering, (2) meet user needs, (3) achieve functional requirements,
(4) finish project by deadline, (5) spend within budget, and (6) receive expected return on
investment (ROI). ERP can yield high return on investment when successfully implemented,
nevertheless, like a two-edged sword, the ERP failure is devastating to companies.
Most companies started the ERP project in such a rush without second thought. However,

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the ERP project is not as easy as people imagine to control. Scholars (Umble 2003, Jenster
1987, Lederer 1998, Segars 1999, Bingi 1999) sought the causes of ERP failures. They
claimed that the failures of ERP are due to the poor implementation planning. Umble (2003)
stated that the main reasons are (1) poor planning and/or poor management, (2) change in
business goals during the project, and (3) lack of business management support. Kensner
(1988) claimed that the “true winners” are those organizations that are “far-sighted enough
to manage the introduction of new MIS products and services as part of their long-term
strategic planning process.” Barker and Frolick (2003) claimed that if the company wants to
yield the benefits of the ERP, “it must first develop a plan for success”. The quality of the
strategic planning has direct impacts on the implementation result. How the strategy is
developed will affect the outcome of the implementation. The smooth and successful
information systems implementation needs careful thinking, precise planning and
negotiations with departments and divisions from a strategic viewpoint.
With regard to planning for information systems, Jenster (1987) stated that the information
systems planning processes include identification, selection and monitoring of information
related to the strategic performance. Segards and Grover (1998) stated that the planning for
information systems requires substantial resources of both managerial time and budget.
Although widely discussed, the process of information systems planning is more difficult
and complex than description.
Disadvantages
 Customization is problematic.
 Re-engineering business processes to fit the ERP system may damage competitiveness or
divert focus from other critical activities.
 ERP can cost more than less integrated or less comprehensive solutions.
 Overcoming resistance to sharing sensitive information between departments can divert
management attention.
 Integration of truly independent businesses can create unnecessary dependencies.
 Extensive training requirements take resources from daily operations.
 Harmonization of ERP systems can be a mammoth task (especially for big companies) and
requires a lot of time, planning, and money.
ERP Success
No doubt, the success result is the terminal for ERP implementation. “ERP Success” is a
heated topic. Markus and Tanis (2000) defined ERP success as “the best outcomes the
organization could possibly achieve with enterprise systems, given its business situation,
measured against a portfolio of project, early operational, and longer term business results
metrics”. However, ERP implementation is a complex exercise and must incorporate
consideration of the intangible process differences and details. Markus and Tains (2000)

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admitted that success depends on who defines it, in other words, definition of success ERP
implementation depends on the points of view of the involved stakeholders such as
customers, employees, and vendors. For example, in ERP implementation process, managers
view success as earning benefit from system, the software vendors view success as running
data smoothly to realize module functions, project leaders view success as completing
project on time and within budget, while those who adopt information systems and use them
tend to emphasize having a smooth transition to stable operations with the new system,
achieving intended business improvements like inventory reductions, and gaining improved
decision support capabilities.
Robey (2003) measured success of ERP from the changes angle since the transition to ERP
is often combined with a business process reengineering effort which intends to produce
radical organizational change. Change is the main phenomenon associated with ERP system
(Esteves and Pastor 1999). From this angle, there is a stream (Al-Mashari, Abdullah and
Al-Mudimigh, 2003) defines ERP implementation success as the ability to manage
adequately a complex context involves organizational changes across various key areas related to
strategy, technology, culture, management systems, human resources. The success of ERP is to
transfer from existing systems to new systems, which achieve the organizational .objectives. There
are other rules to measure a success, one is to measure the return of invest (ROI). If the return is
more than the investment part, it could say “not fail” at least. Other measures are from the terms of
technology, economics, financial or strategic business terms, smooth running of business operations,
ERP-adopting inner organization’s managers and employees, out organization’s customers,
suppliers, and investors.
ERP SOFTWARES FOR ORGANISATIONS
SOME OF THE ERP SOFTWARE PACKAGES MADE BY DIFFERENT ORGANISATIONS FOR
PROFESSIONAL USE IN COMPANIES.
 Access SupplyChain from the Access
Group
 Activant acquired by Epicor
 BatchMaster ERP from BatchMaster
Software
 Cimnet Systems from Consona
Corporation
 DEACOM ERP from Deacom  EFACS from Exel Computer
Systems and RAD Software.
 Encompix ERP from Consona
Corporation
 ENFOS

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 Epicor ERP from Epicor
 Epicor Enterprise from Epicor
 Retail ERP from Erply
 Exact MAX from Exact Software
 Exact Macola ES from Exact Software  Exact Globe Next from Exact
Software
 Exact Online from Exact Software  Infor10 Barcode from Infor Global
Solutions
 Infor10 Discrete iEnterprise (XA)
(aka MAPICS) from Infor Global Solutions
 Infor10 Distribution Business (aka
SX.Enterprise) from Infor Global Solutions
 Infor10 Distribution Express (aka
FACTS) from Infor Global Solutions
 Infor10 ERP Business (aka SyteLine)
from Infor Global Solutions
 Infor10 ERP Ln (formerly Baan
ERP, Baan IV and Triton) from Infor Global
Solutions
 Infor VISUAL (formerly known as
VISUAL Manufacturing, VISUAL
Enterprise, Infor
 SYSPRO from Syspro  VISUAL ERP) from Infor Global
Solutions
 Infor10 ERP Process Business (aka
Adage) from Infor Global Solution
 Infor ERP Blending (aka
BLENDING) from Infor Global Solutions
 JD Edwards EnterpriseOne
from Oracle
 JD Edwards World from Oracle
 Maximo (MRO) from IBM  Microsoft Dynamics AX (formerly
Axapta) from Microsoft
 Microsoft Dynamics GP (formerly
Great Plains) from Microsoft
 Microsoft Dynamics NAV (formerly
Navision) from Microsoft
 Microsoft Dynamics SL (formerly
Solomon) from Microsoft
 Momentum from CGI Group
 mySAP from SAP  NetSuite from NetSuite Inc.
 Oracle E-Business Suite from Oracle  Oracle Fusion from Oracle
 OSAS from Open Systems
Accounting Software
 PeopleSoft from Oracle
 Prophet 21 from Epicor  Sage PFW ERP from Sage Group

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 Sage Pro ERP from Sage Group  Sage 100 ERP (formerly Sage ERP
MAS 90 and 200) from Sage Group
 Sage 300 ERP (formerly Accpac)
from Sage Group
 Sage 500 ERP from Sage Group
 Sage ERP X3 from Sage Group  SAP Business All-in-One from SAP
 SAP Business By Design from SAP  SAP Business One from SAP

 SAP Business Suite from SAP  Tally.ERP 9 from Tally Solutions
This is the list of Various ERP Softwares used in organizations.The most famous ones are highlighted
with purple and the Software used by IRCTC is highlighted in red i.e Oracle e business suite 11i
ABOUT ORACLE E-BUSINESS SUITE 11i
Oracle Applications comprise the applications software or business software of Oracle Corporation.
The term refers to the non-database and non-middleware parts of Oracle's software portfolio.
Oracle sells many functional modules which use the Oracle RDBMS as a back-end, notably Oracle
Financials, Oracle HRMS, Oracle Projects, Oracle CRM, Oracle Procurement, etc.
Products
Oracle Corporation's application portfolio consisted as of 2012 of the following software suites and
products
 Oracle Fusion Applications
 Oracle E-Business Suite
 PeopleSoft Enterprise
 JD Edwards EnterpriseOne
 JD Edwards World
 AutoVue (for processing CAD and graphics data)[3]
 Master Data Management

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Oracle E-Business Suit
Oracle's E-Business Suite (also known as Applications/Apps or EB-Suite/EBS) consists of a
collection of enterprise resource planning (ERP), customer relationship management(CRM),
and supply-chain management (SCM) computer applications either developed or acquired by Oracle.
The software utilizes Oracle's core Oracle relational database management system technology.
Oracle Financial Applications
The Oracle E-Business Suite provides a set of financial applications used internationally
in businesses. Oracle Corporation groups these applications into "suites", which it defines as sets of
common, integrated applications designed to execute specific business processes.
Oracle Financials refers to the closely related financial modules such as:
 Oracle Assets
 Oracle General Ledger
 Oracle Payables
 Oracle Receivables
 Oracle Cash Management
The key business processes enabled by the Financial Applications include:
♦ Procure-to-Pay business process flow involving activities such as procurement, purchasing,
making payment to Suppliers and subsequent accounting.
♦ Order-to-Cash business process flow involves activities such as Customer Orders, Order fulfilment,
receiving payment from Customers & subsequent accounting.
Oracle E-Business Suite products that IRCTC use are
 Oracle Bills of Material
 Oracle CRM
 Oracle Advanced Planning & Scheduling
 Oracle Order Entry
 Oracle Order Fulfillment (order to cash process)
 Oracle Payroll
 Oracle Purchasing
 Oracle Receivables
All these products basically come under 4 headings

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 Purchase order
 Human resource management and Payroll management
 Accounts recievables
 Accounts payables
1.2 LEARNING OBJECTIVE
ERP implementation is one of the most challenges faced by senior managers. Due to its
pervasive nature, the implementation result is highly related to business future. However, to
survive in the complex implementation process and the evolution of information technology
and the restructure for enterprise is definitely not easy. The decisions are difficult to make.
Many managers complain that it is overwhelmed with so many details and they tend to lose
sight of the initial goals.
Considering the complexity of ERP and its importance to the companies, we recognize :-
 The need of ERP implementation planning and aim at finding a systematic planning solution
to direct implementation towards success.
 We expect to understand the process and characteristics for ERP systems implementation
deeply, which could help to make an effective planning strategy for this issue
 To understand the process of making transactions in Oracle 11i e business suite.

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Ch 2: PROFILE OF THE ORGANISATION
2.1 ORGANISATION DESCRIPTION :- Indian Railway Catering and Tourism Corporation Ltd.
(IRCTC) is a Public Sector Enterprise under Ministry of Railways. IRCTC was incorporated on 27th
September, 1999 as an extended arm of the Indian Railways to upgrade, professionalize and manage
the catering and hospitality services at stations, on trains and other locations and to promote domestic
and international tourism through development of budget hotels, special tour packages, information
& commercial publicity and global reservation systems.
While discharging its mandate, the Company has made a significant mark in its passenger-services
oriented business lines like setting up of Food Plazas on Railway premises, ‘Railneer', Rail Tour
Packages and ‘Internet Ticketing' bringing great deal of professionalism into the operations. In
addition to above, IRCTC is managing on Board Catering Services in Rajdhani / Shatabdi / Duronto
and Mail / Express Trains and Static Catering Units such as Refreshment Rooms, AVMs, Book
Stalls, Milk Stalls, Ice Cream Stalls, Petha & Peda Stalls etc. across the Indian Railway Network.
2.2 VISION: “To be the leading provider of high quality travel, tourism and hospitality related
services, for a range of customer segments, with consistently high level of customer satisfaction.”
2.3 MISSION : “ Enhance customer services and facilitation in railway catering,hospitality,travel
and tourism with best industry practices”
2.4 ORGANISATIONAL STRUCTURE:
Corporate Office of IRCTC is situated at New Delhi , which is headed by the Managing Director.
Managing Director is being assisted by three Directors, Director(Catering Services),
Director(Tourism & Marketing) and Director(Finance) and nine Group General Managers.
For smooth operations of the business across all over the country, five Zonal Offices are working at
Delhi , Kolkata, Mumbai, Chennai & Secunderabad. South Zone Office is headed by Regional
Director and all other Zonal Offices are headed by Group General Managers. All Group General
Managers have vast experience of working in Indian Railways. These Zonal Offices are assisted by
ten Regional Offices at Lucknow , Chandigarh , Jaipur, Bhubneshwar, Guwahati, Patna , Bhopal ,

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Ahemedabad, Bangalore and Ernakulam, which are headed by Chief Regional Managers / Regional
Managers.
2.5 PRODUCT LINES:
IRCTC's main business activities are :
 CATERING AND HOSPITALITY –( DEPARTMENTAL AND LISCENSED CATERING)
 INTERNET TICKETING
DIRECTOR
(FINANCE)
DIRECTOR(CA
TERING)
DIRECTOR(TOURIS
M AND
MARKETING)
GGM GGM GGM
GGM GGM
M
GGM
GGM GGM GGM
MANAGING DIRECTOR

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 TRAVEL AND TOURISM
 PACKAGED DRINKING WATER
Further explanation of the business activities
CATERING AND HOSPITALITY
Hospitality Services covers on board catering services in the trains, catering services at stations
through stalls, food plazas/fast food units & Automatic Vending Machines commissioned at A, B &
C class of Railway stations.
After the issue of New Catering Policy 2010, the mandate for the Corporation in terms of its catering
business vertical is limited to food plazas, food courts and fast food units on the Railways. The
revenue from licensee catering business was Rs.21.44 during the year. Departmental catering revenue
increased to Rs.241.15 with taking over of 2 new Duronto trains. IRCTC has been providing
comprehensive Catering Services at various offices & Institutions and been providing sophisticated
professional catering services at high-end Events and functions.
The catering and hospitality segment of the corporation can be segregated into:
a) Railway Catering & Hospitality: Railway catering includes,
departmental Catering, Mobile Catering, Static Catering, Book Stalls, Executive Lounges, Budget
Hotels, Central Kitchen etc.
b) Non Railway Catering & Hospitality: Non Railway Catering includes,
Institutional Catering, Office Catering, Event Catering and Management, Facility Management,
Guest House Management, Housekeeping services, Consultancy Services Food Courts, Kiosks etc.
Under Non Railways Catering unit(NRC) it has 83 no of such units that are normally operating at
Delhi metro stations. It also includes kiosks at DMRC metro stations.
The Departmental Catering business generated an income of Rs241.15crore in the year 2013-13 as
compared to Rs197.64 crore in the year 2011-12.
Tariff for Rajdhani/ Shatabdi/Duronto trains has not been revised since 1999,which constitute 70
percent of mobile Railway Catering businesses.
The NRC units Contributed Rs28.64 crore to the total revenue in the year 2012-13 as compared to the
Rs. 10.79 crore in the year 2011-12.

21. 21
.
INTERNET TICKETING- Major source of revenue for irctc
- The E-Ticketing Performance:
E-ticketing has been one of the biggest success stories of e-governance in India and has
revolutionized the way the common man deals with the railway. It has resulted in great benefits in
terms of convenience, time & energy saving as well as transparency.
The rapid growth in E-ticketing is attributed to easy and robust process set up for doing e- reservation
which facilitates bookings using all types of credit cards, most major debit cards, cash cards facility,
net banking facility and five major payment gateways. This is also strengthened by an online refund
process.
The common man, not having computer / net access, is also able to get the e-tickets through various
agent outlets (approx. 1.06 lakh) across 500 cities & towns. To further help the individual
passengers, the online process of booking during 8 am to 12 am (the crucial booking hours) is
restricted only for direct passengers, by prohibiting agent bookings. The Tatkal ticket booking
timings have been shifted to 10 am w.e.f. 10.7.2012 from 8 am earlier. This has helped in optimum
utilization of IT infrastructure and better availability of website. Several drives were also launched
during the year so as to curb unauthorized practices in E-ticket bookings by unscrupulous people.
The system of registration has been further strengthened. The IT Anti Fraud Cell monitors booking
on regular basis to detect any malpractices. Further, efforts are made for continuous up gradation of
the site and ensuring highest level of security.
Internet Ticketing services continue to go from strength to strength. It is handling about 45-50% of
the reserved train accommodation of Indian Railways. Recently they achieved a record booking of
over 5 lakhs tickets in a single day on 1st March, 2013. The value of tickets booked has gone up to
Rs. 12,419 crore during the year 2012-13 as against Rs.9646 crore during the previous year. Number
of tickets booked through IRCTC website during the year 2012-13 has gone up to 14.06 crore tickets
(25.44 crore passengers) as against 11.61 crore tickets (20.99 crore passengers) booked during 2011-
12.

22. 22
The booking of railway tickets through internet is available from 00:30 Hrs to 23:30 Hrs 365 days a
year. IRCTC is in the process of further enhancement of the existing infrastructure to further improve
services to the customers.
IRCTC ticketing website continues to be considered as a benchmark in the e-commerce
industry.
MOBILE TICKET BOOKING
In moving a step ahead in mobile booking, the Hon’ble minister of Railways launched booking of
ticket through SMS on 28th June, 2013. This service does not require any internet facility. Any
person using mobile can now book his ticket through mobile phone by using this user- friendly
service. This step will go a long way in customer convenience. With the passage of time, it is
expected that mobile booking will surpass reserved ticket booking by all other modes like internet
and counters.
RAIL SAMPARK
IRCTC manages the enquiry services of Indian Railways known as Rail Sampark 139
(Integrated Train Enquiry System of Indian Railways) . In 2012-13, 21.31 crore voice calls and 6.42
crore SMS were handled as compared to 23.50 crore voice calls and 6.27 crore SMS in 2011-12. The
decline is attributed to availability of Railway Enquiry information through railway website
www.trainenquiry.com and mobile applications.
FUTURE POTENTIAL IN REGARD TO INTERNET TICKETING PLATFORMS
 Upgradation, strengthening of ticketing services on www.irctc.co.in
 Provision of new services,facilitiesfor e ticketing such as mobile applications for various
platforms and SMS facilities.
TRAVEL AND TOURISM
IRCTC offers a wide range of Travel & Tourism products and services to meet the requirements of
different segments of tourists. These include Rail based Tour packages, Rail and Land Tour
Packages, Chartered Trains & Coaches, Hill Charters, Luxury Tourist Train, Cab Rental Services,

23. 23
On-line hotel booking services, Online Air ticketing, State Teerth Darshan trains, Inbound &
outbound tours and Corporate Travel Services.
Travel & Tourism Business generated an income of Rs. 188.71 crore in the year 2013-14 as
compared to Rs. 98.95 crore in the year 2012-13 recording a growth of 90.71%.
- Bharat Darshan Tourist Train (Village on Wheels):
Bharat Darshan tourist train is budget segment train where the traveler gets to see India at a price of
Rs. 500/- a day including rail travel, road travel, meals, sightseeing, accommodation and insurance.
These are highly popular trips operating at peak occupancies.
- Mahaparinirvan Express - Buddhist Circuit Special Train
The Mahaparinirvan Express offers a 7 Nights / 8 Days all inclusive tour covering various
destinations of the Buddhist Circuit with the objective of providing a safe, comfortable and reliable
tour package for international as well as domestic travelers on this circuit. So far, visitors from more
than 30 countries have travelled on the train and rated its services as excellent.
- Tour Packages
(i) Rail Tour package
(ii) Holiday package
(iii) RTP with charter coach/train
(iv) Customized tour package
- Maharajas’ Express
The Maharajas’ Express is a top end Luxury train. This train is operated on 3 different itineraries.
During the year 2012-13, a total of 639 passengers availed the services of Maharajas’ Express in 25

24. 24
trips. With this product, IRCTC has made its presence felt internationally in the luxury train segment
of tourism.
PACKAGED DRINKING WATER (RAILNEER):
During the year 2012-13, a new 60 BPM line of 500 ml Rail Neer bottle has been set up at Rail Neer
Plant, Nangloi to supply on Shatabdi trains having travel time up to five hours and static units in
Delhi area. The step has been helpful to reduce the wastage of drinking water during journey.
Capacity of Rail Neer Plant, Nangloi has also been enhanced from 8500 cartons per day to 11000
cartons per day during the year. The production of Rail Neer from Nangloi, Danapur and Palur plants
were 3.14 crores, 3.45 crores and 3.86 crores bottles respectively. Turnover for the segment for the
year 2012-13 was Rs. 55.31 crores, which did not include inter-segment sale amounting to Rs. 15.49
crore.
Rail Neer produced at Nangloi is distributed on mobile trains and to static catering units primarily in
Delhi area and other states such as Haryana, Punjab, Uttarakhand, West U.P. and Rajasthan. In
addition, supply is also made to Parliament House, PMO, Railway Board and Ministry of External
Affairs etc.
Rail Neer produced at Palur is distributed on trains starting from two metro cities in South India viz
Chennai and Bangalore. Further, it is distributed to states of Tamilnadu, Karnataka, Andhra Pradesh
and to some parts of Kerala.
Rail Neer produced at Danapur is distributed to states of Bihar, West Bengal, Jharkhand, East U.P,
Assam and Orissa.
Rail Neer Plant, Danapur and Nangloi are complying ISO: 9001- 2008 quality management system
certification. The process of ISO certification for Rail Neer Plant at Palur has been started. The In-
house lab at Rail Neer Plant, Nangloi will be NABL accredited during 2013-14.
The result of the test, carried out by accredited laboratories on Rail Neer Packaged Drinking Water
indicates that the quality of Rail Neer conforms to European Economic Community (EEC) norms for
pesticide residue.

25. 25
2.6 COMPETITIVE POSITION IN THE MARKET
ECONOMIC SCENARIO
The growth in GDP (Gross Domestic Product) during the FY 2012-13 has been declined at 5% as
compared to a growth rate of 6.2% in FY 2011-12. All the three major sectors of the economy,
namely agriculture, industry and services also showing lower trend growth rate at 1.8%, 1.9% and
6.6% in FY 2012-13 as compared to 3.6%, 2.7% and 8.2% in FY 2011-12 respectively.
India’s services sector however remains a prominent sector in terms of its contribution to national and
states incomes, trade flows, FDI inflows, and employment. The services sector has been a major and
vital force steadily driving growth in the Indian economy.
The global economy in FY 2012-13 improved slowly and did not recover to the extent anticipated in
the beginning of the year. Several European economies experienced recession due to high
unemployment, banking fragility, fiscal tightening and sluggish growth. The U.S. economy improved
marginally, driven mainly by housing and the consumer sectors; however, capital investments
remained sluggish. Among the Asian economies, China, going through a political transition,
experienced considerably slower growth. Deceleration in industrial output and exports weakened
India’s economic growth significantly. The weak macro environment and slower growth caused the
margin environment to remain volatile with downward bias.
With improved business sentiments and investor perception and a partial rebound in industrial
activity in other developing countries, industrial growth is expected to improve in the next financial
year.
CATERING AND TOURISM SECTOR
- Catering & Hospitality Industry Overview:
In the recent years, the Hospitality & Catering Industry in India has emerged as one of the largest in
terms of production and fastest in terms of the growth prospects.

26. 26
The good aspect about the Indian catering industry is that it didn’t bear any negative effects during
the recession period, when other industries were struggling. Over the past five years, the Catering
Services Industry in India is consistently growing at the annual growth rate of 15-20%.
India is a country of numerous festivals and ceremonies, held in the form of important events, due to
which scope of catering business in the past, was limited to Social events like marriages, etc. The
catering industry in the country is now finally extending its reach beyond marriages and the Indian
catering service providers are enjoying the good time.
Increasing urbanization and a general exodus from rural areas to urban areas is causing a change in
the lifestyle trends, particularly surround eating habits. With increasing number of people working in
office environment and growing family households with two parents in workforce, time to prepare
food at home is limited, thereby, more people preferring to eat outside. As a trend, upper & middle
class segment consumers now spend about 35% of their total food budget on eating outside. This has
resulted in blooming of catering establishments like restaurants, cafes, food Kiosks etc. with their
profits, growing continuously, year after year.
- Hospitality Overview
The Indian hospitality industry has emerged as one of the key industries driving the growth of the
services sector and thereby, the Indian economy.
By 2015, the Indian Hotel Industry is expected to reach Rs 230 billion, growing at a robust CAGR of
12.2%. India will be investing approx Rs 448 billion in the hospitality industry in the next five years.
India currently has over 200000 hotel rooms spread across hotel categories and guest-houses and is
still facing a shortfall of over 100000 rooms. The country is witnessing an unprecedented growth in
hotel constructions and will be adding almost 114000 hotel guest rooms to its inventory over the next
five years.
IRCTC having experience in successfully managing four Brownfield properties on PPP model basis
is now in the process to set up more budget hotels at various strategic locations across the country.
IRCTC is in discussion with various State Government/Agencies for growth in this area.
Across the Indian Railways network in the country, apart from catering services at Railways stations,
Rajdhanis and Duronto trains, IRCTC has now diversified into related areas like Facility

27. 27
management, food parks, budget hotels, hospitality hubs, hospitality training etc. by harnessing the
existing capabilities. IRCTC is also exploring the field of commercial catering at Malls, Business
Centers, Institutions, MNCs and other such establishments through newly built Central Kitchen.
IRCTC has successfully launched the first Executive Lounge with all modern facilities at New Delhi
Railway Station and shall soon be opening such lounges at 50 more locations across the Indian
Railways network.
Tourism Industry Overview:
India’s tourism industry is experiencing a strong period of growth, driven by the burgeoning Indian
middle class, growth in high spending foreign tourists, and coordinated government campaigns to
promote ‘Incredible India’. The tourism industry in India is substantial and vibrant, and the country
is fast becoming a major global destination. India’s travel and tourism industry is one of them most
profitable industries in the country, and also credited with a substantial amount of foreign exchange
earnings.
Disposable income in India has been growing rapidly and the share being spent on travel is
increasing. The Tourism Ministry has played an important role in the development of the industry,
initiating advertising campaigns such as the 'Incredible India' campaign, which promoted India’s
culture and tourist attractions in a fresh and memorable way.
India is well known for its natural resources and cultural resources with many World Heritage sites,
both natural and cultural; rich fauna, many fairs and exhibitions and strong creative industries. India
also has quite good air transport, particularly given the country’s stage of development, and
reasonable ground transport infrastructure.
India by rail offers a fascinating odyssey through time and space, cultures and history offering
magical glimpses of unity amidst diversity, shrouded in enchanting, mystery colors that captures the
heart while soothing the soul.
The country has an extensive network of railways covering multitude of tourist destinations. It runs
train services all over the country which cater to different type of travelers.
Railway is a very important driver of tourism in any country and even more so one as large as India
with weak road & hotel infrastructure. Being the tourism arm of Indian Railways, IRCTC makes an

28. 28
important contribution to overall growth of tourism in the country. It is also focusing on providing
value for money services to middle end domestic customers by its range of tour packages
2.7 FINANCIAL AND PROFITABILITY POSITIONS
FINANCIAL PERFORMANCE
During the year 2012-13,the corporation achieved a total income of Rs 719.69 crore,as compared to
Rs 554.11 crore in 2011-12. The increase In Income was achieved mainly due to Quantum jump in
Tourism segment revenue from Rs. 98.95crore in FY 2011-12 to Rs188.71crore in FY 2012-13
Gross Profit of Rs.92.41 crore was achieved during the year 2012-13 as compared to Rs. 76.55 crs
during previous year 2011-12. The net worth of the corporation reached Rs. 291.77 crs as on 31st
March 2013 as compared to Rs. 246.70 crs as on 31st March 2012. The Board of Directors have
recommended a final dividend of Rs. 11.77 crs (20% of net profit excluding dividend tax for the
financial year 2012-13 as against Rs. 9.71 crs paid in the previous year. This works out to 58.85% of
paid up equity share capital.
PARTICULARS/YEAR ENDING 31ST MARCH,2013 31ST MARCH, 2012
Profit before tax 92.41 76.54
Provision for tax 33.57 28
Deferred tax - -
Profit after tax 58.84 48.54
Profit bought forward 16.78 14.5
Transfer to Reserves 35 35
Dividend (including Dividend tax) 13.77 11.25
PROFIT CARRIED FWD TO
BALANCE SHEET
26.68 16.78
SEGEMENT WISE PERFORMANCE
There are six sources of revenue for IRCTC i.e.-
 Licensee Catering Business
 Non Railway business
 Departmental catering business
 Rail Neer
 IRCTC internet ticketing
 Tourism

29. 29
There Segment wise Breakup is given as Follows :-
2.8 HR SYSTEMS
HUMAN RESOURCE DEVELOPMENT AND TRAINING INITIATIVES:
- Training Initiatives:
During the year, greater focus was given on training of various levels of manpower in
IT/Tourism/Catering/HRD and Finance departments which resulted in achieving a total of
6401mandays of training in the year 2012-13 in Corporate Office as well as various zones which has
far exceeded the training targets of 3500 man days for the year of 2012-13.
The training programmes were organized for staff at Customer Care Centre, Delhi Central Kitchen
Noida and reputed Regional and Government institutes, both in Corporate office and zones.
- Manpower
Tourism, 27%
Rail neer,
9%
IRCTC internet
ticketing, 26%
31%
Licence
e
Caterin
g, 3%
Non Railway
business, 4% Segement wise breakup
Tourism
Rail neer
IRCTC internet ticketing
Departmental Catering business
Licencee Catering
Non Railway business
Departmental
Catering

30. 30
Further, to professionalize and ensure smooth functioning of the organization, more staff &
Executives and 23 Supervisors were appointed in IRCTC through open advertisement and campus
recruitment during the year 2012-13. There were a total of 1718 nos. of employees on roll of IRCTC
as on 31.03.2013, which includes 366 Executives and 1352 Non-Executives.
2.9 CURRENT CHALLENGES-
Risks and Concerns- After the complete transfer of licensee catering business and partial transfer of
departmental catering business, the Railway catering business is consisting of only food plaza, fast
food unit and food courts. Further, all book stall units are also being transferred to Zonal Railways,
this frequent change of policy of government has severally affected catering business of the
Corporation. Though all the profit making Railway catering business i.e licensee catering has been
transferred, however, all mobile departmental catering business is still with IRCTC and giving losses
of more than Rs. 50 crore. Government has recently increased tariff for non Rajdhani/Shatabdi
/Duranto trains and tariff for these premum trains remain unchanged since 1999. Corporation is
unable to make clear roadmap with strategies to achieve long term goals in catering segment.
Internet Ticketing- Internet ticketing services for Indian Railways are the main source of profits for
the company-especially after taking back of the licensee catering business by Indian Railways. The
company gets a service charge of Rs. 10/- and Rs. 20/- per ticket respectively for non-AC and AC
class tickets respectively. The company is in receipt of communication from the Ministry of Railway
that the service charge revenue is to be shared in the ratio of 20:80 ratio with Indian Railways. This
will have the impact of reducing the revenues from Internet Ticketing by 20% directly.
As per decision taken by the Ministry of Railway new software/hardware for internet ticketing is
being developed by CRIS for which the corporation has volunteered to bear the cost i.e expected to
Rs. 80-100 crores.
Rail Neer- Refilling of used Rail Neer bottles is a constant concern since it can cause passenger
complaints and litigations. To overcome it, there is a proposal to introduce IT based product
verification.
There is intense competition from private players in packaged drinking water segment, since the
market is quite un-organized and evade taxes thereby bringing down cost of production and
supplying product at cheaper rates.
Main raw material for Rail Neer is water, which is very important natural resource. With increase in
population, there will be more pressure on this natural resource. Therefore, water conservation and
specific water consumption(amount of water used to produce one litre of finished water) has to be
constantly monitored. Concept of Zero Liquid discharge have to be adopted.
2.10 FUTURE GROWTH STRATEGY

31. 31
The Corporation is confident of harnessing its extensive capability in the fields of hospitality,
tourism , E-commerce and packaged drinking water and is gearing up to excel in its diversified role.
As for future, the Corporate is poised to capture new opportunities in Railway and Non Railway
Segment to sustain its high level of performance and at the same time shall continue to lay added
emphasis on developing existing business lines.
IRCTC is venturing into retail format business by opening Food Kiosk and DMRC stations across
New Delhi/NCR regions. These kiosks will supply pre-packed food and beverages with assistant
from renowned B2B suppliers and packed cooked food from Central Kitchen, Noida. Total 130
kiosks shall be commissioned. IRCTC is hastening its efforts for enhancing the Catering &
Hospitality Business by taking various initiatives.
In Tourism, steps such as introduction of new rail, air packages, extension of the Buddhist Circuit
special train to Odisha, New Tour Packages, launch of Outbound packages, organizing of MICE
events are being taken.
In package drinking water segment, to meet the large unsatisfied demand of packaged drinking water
of Indian Railways, new plant is being set up at Ambernath and is likely to be commissioned by Dec.
2013. Process to set up another company owned plant at Bilaspur(Chattisgarh) and setting up four
plants on PPP model at Amethi, Ambala , Lalitpur and Parassala (Trivendrum) have been initiated.
In Internet ticketing, the future thrust areas would be strengthening of Ticketing service by up-
gradation , introduction of value added services and diversification into areas like even ticketing,
ticketing for foreign railways etc.

32. 32
Ch 3: JOB DECSRIPTION AND FUNCTIONAL PROFILE
FINANCE INTERN:
AS A FINANCE INTERN I WAS REQUIRED TO REPORT TO OUR CORPORATE HEAD MR.
RAHUL GUPTA. AS AN INTERN I WAS REQUIRED TO DO THE FOLLOWING-
 To Read the latest financial report of the organization
 To learn about ERP thoroughly
 To have basic knowledge of MS office
 To reconcile Bank balances and ERP balances according to bank statements and statements
generated through ERP accounts.
 Maintaining accounts payable
 Making payments to suppliers through erp systems
 Prepare and reconcile bank statements
 Establish and maintain supplier accounts
 Processes supplier invoices
 Maintain the purchase order system
 Ensure data is entered into the system
 Issue cheques for all accounts due
 Maintain financial files and records
3.1 Reporting Relationships- I was Required to Report to HR executive for attendance and other
leave related issues and then to JGM finance for any query related to work.
I was put under direct supervision of a Finance executive for work and assistance.
3.2 Working Conditions
An intern has to manage a number of projects at one time, and may be interrupted frequently to meet
the needs and requests of other employees and clients. An intern may find the environment to be
busy, noisy and will need excellent organizational,time and stress management skills to complete the
required tasks.
3.3 Job Challenges
 Reporting to our corporate mentor in time
 Completing work in given deadline

33. 33
Ch 4: LEARNING EXPERIENCE AND INSIGHTS GAINED
4.1 Part I
BUSINESS PROCESSES LEARNED AND INSIGHTS GAINED
At IRCTC we learnt about How is IRCTC Working With ERP (Oracle 11 i).
We were taught about the information needed to handle IRCTC business specific transactions
through ERP
Oracle e business suite 11i is basically divided into 4 main parts i.e.
1. Transactions relating to general ledger (also include purchase order)
2. Transactions relating to accounts receivable
3. Transactions relating to accounts payable-
4. Transactions relating to payroll and human resource management system
In the 2 months of my training, I learnt about Accounts payable and what all does come under
accounts payable under IRCTC erp system employed.
I made payment to the suppliers of irctc through Oracle E business suite11i
ACCOUNTS PAYABLE
Account Payables is a function for making payments. Anyone who needs to be paid, an external
vendor, internal employee or customer, will be defined as supplier. Payables module interacts with
other modules, such as Purchasing for matching invoices to Purchase Orders or Receipts.
The generic process for making payments in Oracle APPS involves the following steps:
1. Manage Invoices – The process can further be classified into a) Creating an invoice batch,
entering invoice (summary as well as distributions information) b) Approving/ Validating the
invoice and c) creating accounting entries for the invoice.
2. Manage Payments – Involves check generation and creating accounting entries for the payments.
3. Manage Posting – Transfer of the accounting entries created for invoices and payments in
Payables module to the General Ledger.

34. 34
These processes are illustrated in detail using various types of invoices and payments.
1. Entering Supplier Invoices
2. Entering Credit & Debit Memos
3. Entering Prepayments/ Advance Payments
4. Expense Reports/ Employee Re-imbursements
5. AP Expense Report Import
6. Recurring Invoices for Rent Payments
7. Invoice Approval/ Validation Process
8. Invoice Holds Resolution
9. Expedited Payments
10. Batch Payments
11. Stop or Void a Payment
12. Payables Open Interface Import
13. Transfer to General Ledger
1. ENTERING SUPPLIER INVOICES
Supplier will send the invoice for the supply made to IRCTC. These invoices will have to be captured
in the application. For capturing the invoices, you will have to first create an Invoice Batch and then
start entering invoices.
1.1 Enter an Invoice Batch
Invoice Batch is like a folder where you can store information on all invoices received from a
supplier.
Once you have defined a batch, it is possible to enter various types of invoices as received from
suppliers and continue with validation and payment process for the invoices.In order to create Invoice
Batches –Navigate to: Invoices>Entry>Invoice Batches

35. 35
1.2Enter an Invoice
After creating the Invoice Batch, you will need to enter invoices in the Invoices Window.
In order to enter invoices –
Click: Invoices button on Invoice Batches window to enter the invoices in the
batch
The task may involve entering basic invoices for summary information and entering distributions for
the invoice
For eg While we were making payments to the supplier ,we took the screen shot of the invoices that
we were entering
The invoice can be created by following the steps given below -
 Enter name of the supplier in Supplier or enter the Supplier Number.
 Enter the Supplier Site to which you will send payment of the invoice. Payables will print the
address for this site on the payment.
 Enter the Invoice Date or accept the Payables default (today's date).
Date, you must enter an invoice date that is in an open or future period.
 Enter the Invoice Number from the invoice your supplier sent you, or accept the Payables
default (today's date). Payables will not allow you to enter duplicate invoice numbers for the
same supplier.
 Enter the full Invoice Amount.
 Enter the Description of your invoice. This will appear on your payment document and may
appear in your general ledger.

36. 36
 Enter the GL Date. Then Save your work
1.2.2 Enter Distributions Manually
Distributions are used to distribute an expense over different GL accounts. To enter various
distributions -
Click: Distributions button on the Invoices window to enter the distributions
Choose a distribution Type. You can Choose Item for goods or services you ordered.
 Enter the distribution Amount and the GL Account.
If you enter an asset type account, Payables automatically enables the Track as Asset
checkbox and you cannot change it. If you enter an expense account and want to import this
distribution to Oracle Assets, enable the checkbox.
 The distribution GL Date defaults from the invoice GL Date you entered. You can override
the default and change the distribution GL Date to any date in an open or future period. Payables
uses the GL Date to determine when to create a journal entry for the distribution.
 Enter any additional distributions in the same manner.

37. 37
Note - If the sum of the distributions does not equal the Invoice Total, the amount in the Distribution
Total will be Red and Payables will put the invoice on Distribution Variance hold during invoice
Approval.
In the Distributions sheet, account column, it is necessary to write the chart of accounts. Chart of
accounts- A chart of accounts (COA) is a created list of the accounts used by an organization to
define each class of items for which money or the equivalent is spent or received. It is used to
organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in
order to give interested parties a better understanding of the financial health of the entity.

38. 38
Chart of accounts consists of 6 headings that consist the chart of accounts. These are-
1. Company
2. Site(region)
3. Major business
4. Department
5. Account
6. Future use
Under this example,
 Company code here is 01, as IRCTC has acquired a code of 01 from the starting.
 Regions for which we were making payment is hunar se rozgar program ,whose code is 025
 Major business, here the suppliers to whom payment is being made is serving the corporate
office, hence corporate code is 000
 Department code is 0000
 Account under which payment is being made is honorarium account,whose code is 53130
 Future use is a segement that is made in reference for future payments, here it is null hence
000

39. 39
1.2.3 Validate/ Approve Invoice
Before an invoice can be paid, it must be validated by an authorized user of IRCTC. In order to
validate the invoice –
In order to validate an invoice –
Navigate to: Invoices>Actions>Validate or Invoice Batches>Validate
Individual invoices and/or batches can be approved online during entry or approved later by batch by
the AP Manager. Unless the invoice needs an expedited payment, it is recommended that you leave
approval to the AP Manager as it will be his/her responsibility to resolve any holds placed on the
invoice.
After validating the entry –
 We pay in full to the suppliers
 And then create accounting- create accounting because IRCTC Works on the Traditional file
system Method . Here the Work is not Computerised and people here work on files .
 After creating accounting the following screen apperars.

40. 40
This screen is regarding payments made
Recording a Quick Payment
You can use this process to create single computer generated payments, rather than an entire
payment batch, to speed up the process of generating a single payment for a vendor’s invoice, or to
record a manual payment created outside of Payables (e.g. A manual check).
Selecting Bank and Supplier
For making payments, you need to first choose the bank and the payment document (eg. Check) and
associate a supplier that need to be paid with the bank account and payment document.
In order to make payment to a supplier –
Navigate to: Payments>Entry>Payments
Selecting the bank account

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Filling in the details
FIELD DESCRIPTION
 Type: Quick.
 Bank Account: Select the Bank Account.
 Document: Select the name of the document. Payables will allow you to select only
Computer Generated or Combined Payment documents associated with the selected
Bank Account.
 Document Num: Payables will reserve the Document Name at this point. Choose OK to
acknowledge the Note from Payables.
 Payment Date: Enter the payment date or type [Tab] to accept the default date of Supplier
Name or Supplier Num Enter the Supplier Name or the number.
 Supplier Site: Enter the Supplier Site or type [Tab] to accept the default.
You can update other information such as the payment address if necessary.

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After making payments ,Submit the requests to create accounting

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In the request page submit a new request
Submit the request obtains the following page, Here the request to create accounting of a transaction
is added. So that accounting can be created and printed for future reference and use.
For eg we type %BOTTLING% in the name column (percentage is usually applied in oracle apps to
search for the data that is already existing in the oracle database) and we click on the submit button .
the following screen appears

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Here the Batch no and supplier name has to be specified .After clicking ok we get the accounting entry
.Hence accounting is created

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This was the part of How ERP (Oracle 11i) is used to pay to the suppliers. This was the major part
that we did in our internship. This was the part of accounts payable segment of Oracle 11i(e
business suite)
Other parts operating under IRCTC Oracle are
 Accounts receivable
 General ledger
 HRMS and payroll
We were just briefed about the other parts. And their brief intro i.e.
1. Accounts receivable- Oracle Receivables provides three integrated workbenches that you can
use to perform most of your day–to–day Accounts Receivable operations
 You can use the Receipts Workbench to perform most of your receipt–related tasks. For
example, to create receipt batches and enter, apply, reverse, reapply and delete individual receipts.
You can also use this workbench to create chargebacks and adjustments.
 The Transactions Workbench is used to create new and update existing invoices, debit
memos, credit memos, on–account credits, chargebacks, and adjustments. This workbench can also

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be used to enter, review, or complete transaction, copy invoices, create adjustments, credit
transactions and review invoice installments.
 The Collections Workbench lets you review customer accounts and perform collection
activities, such as recording customer calls and printing dunning letters.
2. General ledger- Oracle General Ledger enables universal accounting data management and is
a comprehensive financial management solution that enhances financial controls, data collection,
information access, and financial reporting throughout the enterprise.General Ledger is the central
repository of accounting information, receiving transactions from sub-ledgers. It simultaneously
maintains all financial balances, including actual, budget and summary in a single balanced ledger.
Oracle General Ledger supports a wide variety of journal entries, including allocation, recurring,
reversing, statistical, skeleton and manual journal entries. The on-line validation process immediately
verifies account combinations, batch totals and journal totals during journal entry, which will enable
accountants to quickly correct any data entered before executing a batch process.
Custom financial reports such as balance sheets and income statements can be built without
any programming using Oracle General Ledger’s Financial Statement Generator (FSG). The reports
can be defined on-line with complete control over the rows, columns and contents. The FSG supports
reusable and interchangeable report components, so that the existing rows and columns may be mixed
and matched to create entirely new reports.
Key Features of General Ledger are:
Account Structures
Define account structures on-line
Customize each account structure
Create and maintain account hierarchies using drag-and-drop graphical interface
Create summary accounts
Create statistical accounts
Create suspense accounts
Define your accounting calendar
Use descriptive flexfields to add custom data fields without programming
Journal Entries
Enter optional control totals
Import data from feeder systems in any currency
Use automatic journal balancing
Enter journals in any period
Require approval for selected journal entries prior to posting
Secure journal posting and reversing
Control accounting periods
Reopen Periods, Permanently Close Periods
Post automatically at scheduled times or real time
Automatically perform year-end close
Perform allocations of Actual Balances, Budget Balances, Encumbrance Balances
Budgeting
Define an unlimited number of budgets
Enter budgets on-line
Set budgetary controls
Copy and modify budgets

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Enter budgets using standard rules
Allocate budget amounts
Use budget formulas
Financial Reporting
Define reports for Balance Sheets, Income Statements, Cash Flows, Expense Analysis
Create exception reports
Run standard reports for Trial Balances, General Ledgers, Account Analysis and Journal
Analysis
Review reports on-line
Submit ad hoc reports
Perform drill-down inquiries, such as Summary Accounts, Detail Accounts, Journal Entries,
Payables and Receivables Invoices, Funds Available and Variance Calculations.
3.HRMS- The Oracle Human Resource Management Systems (HRMS) helps to achieve a well-
managed human resource system, turning HR management into a strategic advantage. HRMS is an e-
business way of transforming the people management role with Internet technology. Some of these
differentiators are available across Oracle applications but most of these are unique to Oracle HRMS.
Oracle HRMS data structures of Locations, Employee Master, Organizations, Approval Hierarchies,
Jobs and Position Roles, Costing, etc. are commonly used across Oracle Applications.
As part of the HR Suite, four modules are being implemented. These are
 HR Core
 HR Self-Service
 HR Intelligence
 Training & Administration
Other than that we reconciled bank balances and erp balances and made bank reconciliation statement
4.2 Part 2- Analysis and evaluation of the business process
My analysis of the business process I have worked upon is-
 ERP when implemented in an organization effectively yield great results, improve resource
planning, drive efficiencies and boost organisational growth.
 The understanding of business process requires efforts and knowledge, before one can start
working on oracle(ERP)
 We Spent almost our first month in knowing understanding erp, what is it and how
organizations use it. Also what is the need of it
 Then knowing the process of adding transactions to erp (oracle) is quite complicated process
at first we were unable to understand that why are we following these steps and procedures ,then
gradually through inquiry we got to understand what are we doing
 Erp is very vast and one cannot say at any point of time that he/she has the complete
knowledge of ERP. There is always a scope of learning in ERP .
 At last I was amazed to see the results – ERP is Cost effective way of doing work and
transactions, It can be accessed from anywhere, anytime, just the person need internet, user id and
password to have access to ERP

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4.3 PART 3- Professional skills acquired
This internship taught me so many things, to start with
 How to be diplomatic
 How to work in an organization
 Organization culture,work and ethics
 Discipline, punctuality
 Take Criticisms in a positive way and work hard on your weaknesses
 How to interact in a formal work environment
 Supervisory skills
 Team building
 Accounting and bookkeeping Skills
 Analytical and problem solving Skills
 Decision making skills
 Effective verbal and listening communications skills
 Effective written communication skills
 Ability to communicate effectively in English
 Computer skills including the Ability to operate computerized accounting, spreadsheet and
word processing programs at a highly proficient level
 Stress management skills
 Time management skills

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Ch 5 :RECOMMENDATIONS AND CONCLUSIONS
Recommendations for effective ERP implementation
I would recommend that to
1. Create workable ERP implementation goals and plan. Be smart and create a process that has
stages and involves all concerned at each stage. Test the ERP at every stage; this will smoothen out
kinks when they are small.
2. The ERP implementation should be a hands on process for end users. Involve the employees
who will handle ERP process in both planning and execution.
3. In case ERP is not in your skill set then get a ERP consult who will work hand in hand with
your team. This will iron out the implementation process and give insights.
4. Give training in ERP importance. Include training costs in the ERP implementation budgets.
A well trained team means a lot especially when the organization is new to ERP systems.
5. Tone down ERP ambitions to workable levels. Implement ERP in stages this will ensure
returns on your investments. Teams often get carried away and push for going all the way in one go.
6. Well before purchase find out about training and maintenance costs.
7. Look into aspects like expansion / up gradation possibilities.
8. Take a close look at your business processes and determine the changes you may need to
implement to fit into the EPR software functions.
9. Ensure that the "return on investment" is in figures. Simulate the ERP suite and make
calculations to verify figures.
10. Ask about customization assistance from the vendor. As ERP requires customization
According to time and need .
11. It is important to use certified project managers on your staff to handle ERP processes.
ERP(Oracle) needs constant monitoring and human interaction from employees as well as leaders.
Use the expertise of the World Wide Web to learn all about ERP so that you make knowledgeable
choices.

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CONCLUSION
To Conclude with ERP systems provide a mechanism for implementing systems where a high degree
of integration between applications is required. To Successfully implement ERP right mix of people,
process and technology should be maintained.
An Enterprise Resource Planning (ERP) solution consists of internal and external management
information within the organisation. The main function of an ERP solution is to expedite the flow of
information across all business operations.
Ways in which ERP can benefit the organisation are:
 Better integrated management - An ERP solution allows its users to conjoin diverse parts of
the business into one single programme enabling managers to gain access to an intelligible database
which consists of figures, orders, invoices and client information. An ERP solution allows its users to
update changes and implement those changes in real time; in addition all the information is stored
accurately without it getting lost across spread sheets and other applications.
 Save time and money - One of the key advantages of an ERP solution is that it can help
managers to identify and reduce downtime; the solution can significantly reduce the costs involved in
administrative errors and inventory. Communication throughout all departments is made a lot easier
as it’s easy to exchange information across all levels. The cost of supporting large data centres can
also be cut down.
 Reduced operating costs – An ERP solution endeavours to merge all business channels into
a single enterprise information system. The core advantage of this function is that it allows
organisations to improve their business processes across all departments while increasing their
organisational efficiency. The ERP solution can significantly reduce operating costs, inventory and
control costs as well as reduce marketing and help desk support cost.
 Assist day to day activity’s - The other advantage of adopting an ERP solution is that
management have fast and easy access to all information they require in order to make better
decisions.

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 Increased strategic planning support - Allows an organisation to support the resource
planning function resulting in users attaining the ability to identify their target market and what their
goals and objectives should be.
 Improved financial management - Provides managers with an extensive visibility of how
the financial department is performing. An ERP solution allows its users to view accounts
functionality in full view integrated with business analytics. This helps organisations boost
profitability, improve financial control and manage risks better.
 Reporting made easy - An ERP solution improves and modifies reporting and allows its
users to generate reports within a click of a button. With better visibility to information, managers
can create and modify reports easily.
 Increased precision and consistency - Allows organisations to conform precise and accurate
data within all of the departments allowing its end users to view information through a single system.
Business Managers can view how productive and efficient each employee is within their department
and as a result, better visibility can dramatically increase organisational performance and staff
efficiency.
 Improved resource management – ERP solutions contain tools and have the capacity to
allow its users to allocate beneficial resources more efficiently. This can significantly reduce delays
during critical times.
 User friendly - The majority of ERP solutions are user friendly and can easily discard any
complications without having to look at extensive amounts of spread sheets.
To conclude, an ERP solution can play an important role within an organisation if implemented
correctly. It can boost an organisation’s strategies and operations and can increase productivity and
help companies cut down on cost. An ERP solution can increase an organisation’s security as it
allows companies to keep their customer and company information in a secure environment.
It can immensely improve the level of communication across different departments; thus allowing
managers to make better decisions. The solution also consists of various web based applications that
are fast and easy to use.
Hence, at the moment, implementation of ERPs is of a great attention and that ERP implementation
is of high complexity. It is, therefore, of interest to investigate factors related to selection of ERP
implementation approach

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Implementation,Information Systems Management, 16(3), 14
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 Umble. E. J., Haft, R. R. and Umble, M. M. (2003). Enterprise resource planning:
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
 http://en.wikipedia.org/wiki/Enterprise_resource_planning
 http://en.wikipedia.org/wiki/List_of_ERP_software_packages
 http://en.wikipedia.org/wiki/Oracle_Applications
 http://www.ehow.com/about_6700658_oracle-erp-system_.html
 http://www.oracle.com/index.html
 https://www.irctc.co.in/
 http://www.irctc.com/annual_report.html
.