SCM 4380- Midterm Exam UH

Finished goods -

(FERT) are created by the production process from other materials, such as raw materials and semifinished goods. They are generally not purchased. As a result, the material master for finished goods will include data related to production and fulfillment, but not procurement. An example of a finished good from GBI is the deluxe touring bicycle, which is produced from raw materials (e.g., frames) and semifinished goods (e.g., wheel assemblies).

Managerial accounting -

(track-internal ) focus on internal reporting to manage costs and revenues

Sold to party

- The customer who submits the order is the sold-to party. This is the primary type of business partner.

Goods issue

- a company uses a goods issue when materials are removed from storage, in which case inventory is reduced. A company typically generates a goods issue when it (a) ships materials to a customer, (b) uses them for internal consumption (e.g., to produce another material), or (c) designates them for sampling or to scrap

Planned order

- a formal request for production that indicates what materials are needed, how many units are needed, and when they are needed.

Work center

- a location where value-added work needed to produce a material is carried out. It is where specific operations, such as drilling, assembly, and painting, are conducted

Bills of material

- identifies the components that are necessary to produce a material. In discrete and repetitive manufacturing, the BOM is a complete list of all the materials, both raw materials and semifinished goods, that are needed to produce a specified quantity of the material.

Vendor master data

- include the data needed to conduct business with a vendor and to execute transactions related to the purchasing process. Data in the vendor master are grouped into three segments: general data, accounting data, and purchasing data.

Supply chain management

- intercompany process that help companies plan for their production requirements and optimize complex transportation and logistics for materials

Bill to party

- the invoice should be sent to someone else

Production order

- which is created in the authorize production step, represents an actual commitment to produce a specific quantity of materials by a certain date. Numerous resources, such as materials, work centers, and PRTs, are committed to producing the materials specified in the production order. A production order is typically created by converting a planned order

Three tier client server architecture:

Data layer, presentation layer, and application layer

What is the silo effect?

Focusing so narrowly on their specific tasks, they lose sight of the "big picture" of the larger process, be it procurement, fulfillment, or any number of other common business processes. Workers complete their tasks in their functional "silos" without regard to the consequences for the other components in the process

6. What percentage of "product days" did Team JJ unintentionally stock out of 1kg Nut Muesli in Quarter 3?

Go to ERPSim Production Op Pivot: Team, Qtr, and Description as filters, Day in rows, INventory in values. Count Zeros, divide that # by 30, multiply by 100.

2. What was Team NN's best selling product by revenue in Quarter 1?

Go to ERPSim Sales In Pivot, Team and Qtr to Filters, Product to Rows, Value to Values Find Max of values

11. What was Team QQ's Marketing to Sales ratio during Quarter 2 only?

Income Statement Create Pivot. Day and Company Code(Team) to FILTERS. Filter Day as 30. Quarter to ROWS. Revenues and Marketing Expenses to VALUES. Calculate Revenue for each Quarter(Q) by subtracting the value of the current Quarter from the value of the previous Quarter. Calculate Marketing Expense for each Quarter(Q) by subtracting the value of the current Quarter from the value of the previous Quarter. Calculate the Marketing to Sales Ratio by dividing Marketing Expense by Revenue for each Quarter.

10. What was Team QQ's revenue in Quarter 2 only?

Income statement sheet. Create a pivot table Put company code and day in the filter label Filter team QQ and day 30 Put quarter in the rows label. Put revenues in the value label (sum) Subtract the previous quarter from each quarter to get the revenue in that quarter only.

12. What was Team AA's highest profit margin quarter?

Income statement sheet. Create a pivot table. Put company code and day for a filter Filter team AA and day 30 Put quarter on the row label Drag net income/loss to the values (sum) To calculate individual quarters, subtract the quarter before value from the current quarter's value.

Describe the differences between Managerial and Financial Accounting

Managerial accounting focuses on the internal, while financial focuses on the external.

Discuss the 3 types of data in an enterprise system and how they are related.

Master data, organizational data, and transactional data.

Functional structure -

Organizations that utilize a functional structure are divided into functions, or departments, each of which is responsible for a set of closely related activities. ends and receives payments, and the warehouse receives and ships materials. Typical functions or departments found in a modern organization include purchasing, operations, warehouse, sales and marketing, research and development, finance and accounting, human resources, and information systems

Profit margin

Profit/Revenue- Use Income statement sheet

Application suite

The collection of these inter-company systems and the underlying intracompany ERP system

Identify the four common material types in SAP ERP

The four most common material types are raw materials, semifinished goods, finished goods, and trading goods.

Three-way match

The most common method of invoice verification. between the purchase order, the goods receipt or delivery document, and the invoice. The objective is to ensure that the quantities and price in all three documents are consistent

Briefly describe the key business processes included in this chapter in terms of their key steps:

The procurement process (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. The production process (make) involves the actual creation of the products within the organization. Whereas the production process is concerned with acquiring needed materials internally (by making them), the procurement process is concerned with obtaining needed materials externally (by buying them). Each is appropriate for different types of materials, as we will discuss later in the book. Finally, the fulfillment process (sell ) consists of all the steps involved in selling and delivering the products to the organization's customers.

Trading goods

Trading goods (HAWA), trading goods are resold to customers.

9. What was Team FF's average total sales per day by volume in Quarter 1?

Use ERP Prod. Operation Team and Qtr in Filters, Days in Rows, Sales in Values Sum total Sales for the Qtr, divide by 30

8. What was team LL's capacity utilization in Quarter 3 only?

Use ERPsim Prod. Operation In Pivot, Team as Filter, Qtr as Rows, Production as Values Find Max Production in ERPsim Prod. Op. Multiply that # by 30 since it's asking for Qtr Divide Sum of Production for Qtr3 by answer from step 4.

1. What was Team PP's market share % over the entire year?

Use Income Statement Create Pivot Day and Company Code(All first) to FILTERS (Day to 30) Quarter to ROWS Revenues to VALUES Calculate the Total Industry Revenue for each Quarter(Q) by subtracting the value of the current Quarter from the value of the previous Quarter Repeat Step 6 for PP Calculate the Market Share for PP by dividing PP's revenue by Total Industry Revenue for each Quarter

4. What was Team QQ's profit margin % during Quarter 4 only?

Use Income Statement Pivot Company Code & Day in Filter, Qtr in Rows, Revenue & Net Income/Loss in Values To find profit margin % do (Net income for current qtr - net income previous qtr) / (revenue for current qtr - revenue for previous qtr)

Market share

Use Income statement sheet

13. What percentage of days during Quarter 2 did Team HH have sales of 1kg Blueberry Muesli when it was in stock?

Use Prod. Operation Pivot Team, Qtr, and Description in Filters, Days in Rows, Inventory and Sales in Values Count the number of days with sales when there is inventory. Divide that number by 30. Multiply by 100

% days with sales when product was in stock:

Use Production Operation sheet

Average sales/day

Use production operation

Capacity utilization

Use production operation sheet

Unintentional stock out:

Use production operation sheet

Production Capacity

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

Business process

a set of tasks or activities that produce desired outcomes.

Enterprise level purchasing organization

also known as the cross-company code purchasing organization, is the most centralized model. There is only one purchasing organization for the overall enterprise and all of the plants within the enterprise p.86

Company level purchasing organization

also known as the cross-plant model, a single purchasing organization is responsible for multiple plants in one company code. This approach is less centralized than the enterprise-level model p.87

Credit management Master record

an extension of the customer master record that includes data relevant to managing credit for that customer. The data contained in this record are grouped into three segments: general data, credit control area data, and an overview

Sales order

an internal document that contains information necessary to fill the customer order in a standardized form

Best Selling product

by revenue and by volume: Use Sales sheet

Material Master

contains all the information a company needs to manage a material

Data Layer

here the application stores your work (on your hard drive or flash drive)

Financial accounting data

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

General data

include the vendor's name, address, and communication information such as phone and fax numbers. These data are defined at the client level and are consistent across all company codes and purchasing organizations in the enterprise (client)

Third party order

items that the vendor ships directly to a customer. Companies employ third-party orders for trading goods, such as helmets, that they purchase and then resell to customers without performing any operations themselves. Because the customer receives the goods directly from the vendor, there is no goods receipt for the company itself.

Service oriented architecture

link or integrate client-server systems

Ship to party

materials should be shipped to a different location

Make to order strategy

production is triggered by the need to fill a specific customer order. In other words, production does not begin until a customer orders a product.

Goods receipt

records the receipt of materials into storage, which results in an increase in inventory quantity. A company usually generates a goods receipt when it receives materials either from a vendor or from the production process

Master Data:

represents entities associated with various processes. For example, processes involve buying materials from vendors and selling materials to customers.

Accounting data -

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

Distribution channel

the means by which a company delivers its goods and services to its customers. Typical channels are wholesale, retail, and online (Internet sales) p. 130

Business intelligence

the overall capabilities a company uses to collect and analyze data from a variety of sources to better understand its operations and make better managerial decisions

Make to stock strategy

the production process is triggered by a need to increase inventory

Architecture

the technical structure of the software, the ways that users interact with the software, and the ways the software is physically managed on computer hardware

Enterprise Resource Planning (ERP)

the world's largest and most complex ES. ERP systems focus primarily on intra-company processes— that is, the operations that are performed within an organization—and they integrate functional and cross-functional business processes. Typical ERP systems support Operations (Production), Human Resources, Finance & Accounting, Sales & Distribution, and Procurement

Financial accounting -

track the financial impacts of process steps with the goal of meeting legal reporting requirements—for example, the Internal Revenue Service (IRS) or the Securities and Exchange Commission ( SEC)