BSIS-301 Ch 2

How are transaction data created in an ERP system?

By executing processes. Documents to Record: -Transaction Documents- Process steps completed (purchase orders, packing slips, and invoices) -Financial Accounting (FI) Documents (controlling documents (CO)), Management Accounting Documents (material documents)- record data generated after the process steps have been completed.

Explain the relationship among client, company code, and plant in SAP ERP. What are these organizational levels typically used to represent?

Client: Highest organizational level (enterprise)(can have multiple company codes) Company Code: each company within the enterprise (client) has a company code (can only have one client but multiple plants) Plant: is an organizational element that performs multiple functions: - where products and services are created -materials are stored and used for distribution -production planning is carried out -service or maintenance is performed (can only have one company code)

Why is material master one of the most complex types of data in an ERP system? Provide some examples of data typically included in a material master.

Master data is cross-functional, it is associated with various processes and each process uses the information differently (and need different information). Material Master Examples: -procurement process buys materials -production process makes materials -fulfillment process sells materials

What are material groups? How are they different from material types?

Material Groups: materials grouped together with similar characteristics. Grouped so they can be managed collectively.

What are material types? Identify the four common material types in SAP ERP, and provide an example of each.

Material Types: categories of materials based on how they are used in the firm's operation. They determine which business process are permitted to use the material. Four Common Material Types: -Raw Materials (ROH)- purchased from external source (vendor) and used in the production process. Ex/ frames, wheels, tires, and tubes. -Semi-finished Goods (HALB)- produced in-house from other materials and used in production of a finished good. Ex/ wheel assemblies (profuction process) -Finished Goods (FERT)- created by the production process from other materials (raw or semi), generally not purchased. (fulfillment process, not procurement) Ex/ deluxe touring bike -Trading Goods (HAWA)- purchased from vendor and resold to customers (procurement and selling) Ex/ purchase helmets from suppliers and sell to customers.

Discuss the three types of data in an enterprise system and how they are related

Organizational Data: used to represent the structure of an enterprise (client, company code, and plant) Master Data: represents entities associated with various processes. It is the most complex and extensively utilized data in an ERP system. Transaction Data: reflect the consequences of executing process steps or transaction. Combination of organizational, master data, and situational data (data specific to a task).