432 SAP

Goods receipt

- (Receiving report) accepts goods into system, almost always references open purchase order - updates inventory & G/L account - creates journal entry in SAP, in manual acctg system updates subledger then G/L

Invoice receipt

- Actual price for goods rec'd - Referenced against PO, discrepancies will generate a warning or error

SD Organizational Structure

- Client - Company code - credit control area: grants and monitors credit limit for customers - sales organization: responsible for sale or certain products/services, could have legal liability for products and customer claims - distribution channel: wholesale, retail, direct sales

Organizational data examples

- Client (top in organizational hierarchy) - company code (represents judicial entities in an enterprise, central organizational unit) - plant - storage location

MM organizational structure

- Client: independent environment in system - Company code: smallest org unit for which you can maintain a legal set of books - Plant: operating area or branch within a company (manuf., dist., purchasing, maintenance) - Storage location: org unit allowing differentiation btwn various stocks of material in plant - Purchasing org: org unit responsible for procuring services & materials (larger than group) - Purchasing group: buyer/group of buyers responsible for certain purchasing actibities

SD Material Master data

- Contains all info a co needs to manage about material - Stored in views

MM Material Master Data

- Contains all info co needs to manage material - Stored in functional segments called 'Views' - Every material must have master - Most important aspects: name, unit of measure, $ amount cost

MM Vendor Master Data

- Contains all the necessary info needed for business w/ external supplier - Used/maintained by purchasing & acctg depts - Every vendor MUST have master record

Billing Document (Invoice Customer)

- Created by copying data from sales order and/or delivery document - Generates customer invoice & updates customer's credit status - Automatically debits AR, credits revenue

Organizational data

- Define the enterprise structure by means of legal or business usage

Receive Customer Payment

- Final step, managed by financial acctg - Posting payments against invoices, reconciling differences btwn payment and invoice - Debit cash, credit AR

Purchase order

- Formal request to a vendor for a specific material or service - Can be created manually & automatically

Payment to vendor

- If PO, IR, GR match invoice is created & vendor is paid - creates fin. acctg doc to record transaction - signing matrices usually auto signature below $ amount, manual payment above amount

Post goods issue

- Indicates legal change in ownership of the products - credit inventory, debit COGS - document # created, automatically updates GL accounts - ends shipping process, updates status of shipping docs

Logistics

- Materials management - Sales & distribution - production planning - plant maintenance - quality management

Sales order

- PO sent form customer created into SO automatically (NO journal entry) - delivering sched, shipping point & route destination, availability check, transfer of requirements to MRP, pricing, credit limit check

SD Condition Master data

- Prices, surcharges, discounts, freights, taxes - Material specific or customer specific prices - moving price: DM, DL, MOH

Documents

- Record of business transaction & included all relevant predefined info from master data & organizational entities - Not every document # leads to a journal entry effect

Master data

- Relies on organizational, changes less frequently than organizational data - Long term data sets

Transaction data

- Relies on rules and master data - Process-related data that is short-lived and dedicated to certain master data - Changes with each business event

Delivery document

- begins shipping process - controls: picking, packing, post goods issue

SD Customer Master Data

- contains all info necessary for processing orders, deliveries, invoices & customer payment - every customer must have master record - include any discounts - created by sales area: sales org, dist. channel, division

ERP

- enterprise resource planning - enterprise = business - resources = people, product, finances, cash

procure-to-cash(pay) process

- expenditure cycle - MM & FI

Finance

- financial accounting - managerial accounting - asset management - treasury

Master data examples

- material - vendor - customer - condition

Components of an AIS

- people, data & info, documented procedures, software, IT infrastructure, internal controls - components interrelates so successes and failures in any can affect others

Human Capital Management

- personnel management - benefits - payroll

Transaction data examples

- purchase order - invoice - sales order - quotation

Internal control objectives

- reliable financial reporting - efficient & effective operations - compliance with laws and regulations

Order-to-cash process

- revenue cycle - MM, SD & FI

Transaction-related control objectives for reliable financial reporting

- transaction is: properly authorized - valid (could have to do with authorization) - recorded (on books) - recorded accurately

Internal control components

-Control environment (tone at the top) - COSO process

General v application controls

-general: broad, extend over entire org - application: specific to transactions, focus on proper data entry, processing & output

Internal control activities

-preventive control: stops error/fraud from entering system -detective control: error/fraud already happened, detecting it

- completeness check

SAP required items in certain fields

closed-loop verification

SAP verifies that customer name (field) matches with customer # entered

zero-balance test

basis of double entry bookkeeping, debits = credits, A = L + SE

reasonableness check

can delivery date be met?

validity check

checks signs & positive/negative values (such as price), checks if someone enters dollars instead of letters

Sales order process

pre-sales activities -> sales order entry -> check availability -> pick materials -> pack materials -> post goods issue -> invoice customer -> receipt of customer payment

procure-to-pay process

purchase req -> vendor selection -> PURCHASE ORDER -> notify vendor -> vendor shipment -> GOODS RECEIPT -> INVOICE RECEIPT -> payment to vendor

- limit check:

system checks if customer has enough credit to buy item