SAP Intro
What is transaction data?
Describes or may result from a business event. This can change from event to event. Most frequently used data
What is a field check?
Determines if characters in a field are the proper type (numeric, alphanumeric etc.)
What is a sign check?
Determines if data has the right sign before a transaction is recorded
What is a size check?
Determines that data being inserted will fit into the field Ex: SSN or phone #
What is a zero-balance test?
Dr. = Cr.
What is a session?
Each instance where a user accesses the SAP system
What does FI stand for? What does it incorporate?
Financial Accounting (Support Process) General ledger, A/R, cash mgt.
What is a client?
Highest level in an SAP instance; self-contained unit w/ a set of separate master records and its own configuration tables
What is a system?
Interrelated components working together to achieve a common purpose.
What is a chart of accounts?
List of all accounts in the GL. Each company must be assigned one of these.
What does MM stand for? What does is incorporate?
Materials Management (Procurement Logistics) Includes Purchasing, invoice verification, inventory management, warehouse management
Do SAP users have unlimited access to what they can change (if they are a receiving clerk)?
No! User's role will define what they will be allowed to view, create, change, delete, etc.
What compromises an AIS?
People, data, information, formal and documented procedures, software, IT infrastructure, internal control
What are 3 types of operational processes?
Procurement, production, sales and distribution
What does PP stand for? What does it incorporate?
Production/MRP (Production Logistics) MRP, production orders, bills of materials, work centers, routing instructions, batch management
What are the 3 objectives of Internal Control?
Reliability of Financial Reporting Operational Efficiency/Effectiveness Compliance with Law and Regulations
What is a company code?
Represents an independent, legal accounting entity
What is master data?
Represents internal and external entities in the system. For the most part, this data rarely changes
What is a range check?
Requires stuff to be between a certain minimum and maximum
What is closed-loop verification?
Retrieves and displays other data related to data that has been entered before a transaction is recorded.
What is configuration data?
Runs the technical function of SAP
What does SD stand for? What does it incorporate?
Sales and Distribution (Sales Logistics) Order entry, picking/packing/shipping, invoicing, inquiries, quotes
What is a completeness check?
Seeks to ensure that all required data has been entered before a transaction occurs Ex: filling out a required field when buying something on Amazon- you need to fill it out so the order can process
What is an AIS?
Set of interrelated components working together to collect and process data from economic and financial events into useful information.
What is a business process?
Set of linked activities that transform an input into an output and create value.
What does SAP stand for?
Systems, Applications, and Products in Data Processing
What is a configuration?
Table-driven customization of the SAP system to meet certain requirements. User sets values in tables to cause the system to work in a certain way.
What happens if one of the components of an AIS fails?
Whole system will probably fail
Can more than 1 company code use the same chart of accounts?
Yes!
What are 2 types of business processes?
1.) Operational 2.) Support
How does COSO define internal control?
A process designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.
What are 3 support processes?
Accounting/controlling and HR
What does it mean for financial reporting to be reliable?
Authorized, valid, recorded, recorded accurately
What is a limit check?
Checks to see if numbers surpass a certain limit- i.e. does this exceed their credit limit?
What are the 3 OBJECTIVES of an AIS?
Collect and process data Generate info Provide internal control
What does COSO stand for?
Committee of Sponsoring Organizations
Provide some application controls.
Completeness check Field check limit check range check reasonableness check sign check size check validity check closed-loop verification
What are the 3 types of data in SAP?
Configuration data, master data, transaction data
What are the 5 COMPONENTS of an internal control?
Control Environment Risk Assessment Control Activities Monitoring Information and communication
Which of the 5 internal control components is most important? Why?
Control environment- set by top management and sets the tone for the rest of the company
What does CO stand for? What does it incorporate?
Cost Accounting (support process) Cost accounting and internal reporting by cost center, internal order, project, profit center