Enterprise Resource Planning FINAL

Goods Movement

A Process step that results in a change in stock results in a ___________. associated with receiving materials from a vendor, shipping them to a customer, or moving them from one location with a company to another

Distribution Chain

A Unique combination of a sales organization and a distribution channel is called a _________.

Work Center

A ______ is a location where value-added work needed to produce a material is carried out

Task list

A ______ is simply a list of operations that are required to accomplish a task

Distribution Channel

A _______ (DC) is the means by which a company delivers its goods and services to its customers

Business Process

A _______ is a set of tasks or activities that produce desired outcome.

Purchasing Organization

A _______ is the unit within an enterprise that performs strategic activities related to purchasing for one or more plants

Sales Area

A ________ is a unique combination of sales organization, distribution channel, and division. It defines which DC a sales organization uses to sell the products associated with a particular division.

Bill of Materials

A __________ identifies the components that are necessary to produce a material

They can be completed by one person (the process owner)

A business process is typically characterized by all of the following except

Goods Receipt

After production has been completed and confirmed, the materials produced are placed in finished goods inventory. This step is _______

Confirmed

CNF

Created

CRTD

Inventory Management (IWM)

Closely related to the procurement, fulfillment, and production process

Production Order

Created in the authorize production step, represents an actual commitment to product a specific quantity of materials by a certain date

Creation of a Sales Quotation

Customer credit is evaluated or adjusted during each of the following "Fulfillment Processes" Except the

Services

DIEN

Delivered

DLV

Financial focuses on impacts of process steps while managerial focus on internal reporting

Difference between financial accounting & managerial accounting processes

Enterprise, company, plant

ERP systems divide the organizational data structure into three standards layers

Spare Parts

ERSA

Finished Goods

FERT

Production Resources/Tools

FHMI

Planned Order

Formal request for production that indicated what materials are needed, how many units are needed, and when they are needed

Lifecycle data mgmt process Material planning process Inventory and warehouse mgmt (IWM) Process

Four processes used to design, plan, store, and service products

- Create billing document (invoice) (credit memo) (debit memo) - Cancel billing document

Fulfillment Tasks

- Delivers due for billing - Orders due for billing

Fulfillment Triggers

- GL outcomes - FL Document - Updates to sales order, delivery doc, customer credit mgmt, sales info system - CO Document - Customer Credit Reduced

Fulfillment outcomes

- Organizational Data - Master Data - Transaction Data - User input

Fullfillment Data

Semi-finished goods

HALB

Trading Goods

HAWA

Operating Supplies

HIBE

Each have its own characteristics and distinctive responsibilities, Pricing systems, plants from which shipments are made,

How the Distribution Channel is relevant to the fulfillment process

Maintenance assembly

IBAU

Configurable Material

KMAT

Empty Containers

LEER

Division

Most companies consolidate materials and services with similar characteristics within a unit known as a _______.

Nonstock, Nonvaluated material

NLAG

Partially Confirmed

PCNF

Partially Delivered

PDLV

Partially Released

PREL

Product Group

PROD

Client - Server Architecture

Presentation Layer Application Layer Data Layer

Make-to-Order

Production is triggered by the need to fill a specific customer order

Released

REL

Raw Materials

ROH

Four most common material types

Raw Materials Semi-Finished Goods Finished Goods Trading Goods

ES Application Suite

Supplier Company Customer

Enterprise Systems (ES)

Systems that support end-to-end processes are called _________, they are essential to the efficient and effective execution and management of business process.

Lifecycle data mgmt process

The _____ (design) supports the design and development of products from the initial product idea stage through the discontinuation of the product

Material planning process

The _____ (plan) uses historical data and sales forecasts to plan which materials will be procured and produced and in what quanities

Asset mgmt and customer service processes

The _____ (service) are used to maintain internal assets such as machinery and to deliver after-sales customer service such das repairs

Inventory and warehouse mgmt (IWM) process

The _____ (store) is used to store and track the materials

Architecture

The _____ of an enterprise system refers to the technical structure of software, the ways that users interact with the software, and the ways the software is physically managed on computer hardware.

Procurement Process

The _______ (buy) refers to all of the activities involved in buying or acquiring the materials used by the organization, such as raw materials needed to make products. _______ Concerned with acquiring needed materials EXTERNALLY (by buying them).

Production Process

The _______ (make) Involves the actual creation of the products within the organization. _______ Concerned with acquiring needed materials INTERNALLY (by making them).

Valuation Class

The ________ identifies the general ledger accounts associated with the material

Enterprise - Level purchasing organization

The _________, also known as the cross company code purchasing organization, is the most centralized model

Application Suite

The collection of these inter-company systems and the underlying intra-company ERP system is called an _______

Functional Structure

The most common Organizational structure you are likely to encounter is the _________.

Three-way match

The most common method of invoice verification is a _________ between the purchase order, the goods receipt or delivery document, and the invoice

Go live

The phase of an ERP implementation project where the old technology is discounted and the organization is running completely on the new ERP system is typically referred to as:

Make-to-Stock

The production process is triggered by a need to increase inventory

Silo Effect

This tendency is commonly referred to as the _______ because workers complete their tasks in their functional "______" without regard to the consequences for the other components in the process.

Organizational Data Master Data Transaction Data

Three types of data in an Enterprise System

Financial Accounting (FI) Processes

Track (EXTERNAL) the financial impacts of process steps with the goal of meeting legal reporting requirements

Management accounting or Controlling (CO) Processes

Track (INTERNAL) focus on internal reporting to manage costs and revenues

Nonvaluated, stocked material

UNBW

Customer returnable packaging

VERP

Competitive Products

WETT

focusing so narrowly on their specific tasks, they lose the sight of the big picture of the larger process

What is a Silo Effect?

for accurate invoice verifications

What is the "Three Way Match" purpose

Client Company Code Plant Storage Location

What key organizational levels are relevant to the purchasing process

Company-Level Purchasing Organization

With the ________, also known as the cross-plant model, a single purchasing organization is responsible for multiple plants in one company code.

Master Data

____ represent entities associated with Various processes

Human capital mgmt (HCM) processes

_____ (people) focus on the people within the organization and include functions such as recruiting, hiring, training, and benefits mgmt.

Product lifecycle mgmt (PLM)

_____ Systems help companies administer the processes of research, design, and product mgmt.

Enterprise Resource Planning (ERP) Systems

_____ are the world's largest and most complex ES.

Supply Chain Management

_____ connects a company to other companies that supply the materials it needs to make its products

Supplier relationship mgmt (SRM)

_____ systems, which connect company's ERP system to those of its suppliers.

Project mgmt processes

______ (projects) are used to plan and execute large projects such as the construction of a new factory or the production of complex products such as airplanes

Financial Accounting Data

______ include the valuation currency, the valuation class, and the price control.

Purchasing data

______ includes various terms related to determining prices, creating and communicating purchase orders

Finished Goods

_______ (FERT) are created by the production process from other materials, such as raw materials and semi-finished goods.

Trading Goods

_______ (HAWA) like raw materials, are purchased from a vendor

Raw Materials

_______ (ROH) are purchased from an external source - a vendor and used in the production process

Production Capacity

_______ is a measure of how many units of a material a plant can produce within a given timeframe

Valuation Currency

_______ is the currency that the materials will be priced in

Customer relationship mgmt (CRM)

_______ systems connect a company's ERP system to those of its customers

Semi-Finished Goods

________ (HALB) are typically produced in-house from other materials (e.g., Raw Materials) and are used in the production of a finished good

Storage Locations

________ are places within a plant where materials are kept until they are needed

Price Control

________ identifies the method that is used to value the materials

Accounting Data

________ inclued tax-related data, bank data, and payment terms and methods

Fulfillment process

_________ (sell) consists of all the steps involved in selling and delivering the products to the organization's customers

Third Party Order

_________ refers to items that the vendor ships directly to a customer

General Data

__________ include the vendor's name, address, and communication information such as phone and fax numbers

Warehouse Management (WM)

involves processes that enable companies to manage materials more effectively using sophisticated techniques

Goods Issue

materials or components are issued to the production order from storage

Make-to-Order (MTO)

production of the finished goods and any needed semi-finished goods is triggered by a sales order

Operations

specific tasks that must be completed such as drilling, cutting, painting, inspecting, and assembling